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  Exhibit 10.1    
    


 
 

  AMENDED AND RESTATED
  QUIDEL CORPORATION
  2001 EQUITY INCENTIVE PLAN
  (As Amended On May 12, 2009)    
    


 ARTICLE I

PURPOSE OF PLAN  


        The Company has adopted this Plan to promote the interests of the Company and its stockholders by using investment interests in the
Company to attract, retain and motivate its management and other persons, to encourage and reward their contributions to the performance of the Company, and to align their interests with the interests
of the Company's stockholders. Capitalized terms not otherwise defined herein have the meanings ascribed to them in Article IX. 


 ARTICLE II

EFFECTIVE DATE AND TERM OF PLAN  


2.1   Term of Plan.  


        This Plan originally became effective as of the Effective Date and will continue in effect until the earlier of (a) the Expiration Date, or (b) the
date of any Plan termination pursuant to the provisions in Section 8.1, at which time this Plan will automatically terminate. 


2.2   Effect on Awards.  


        Awards may be granted only during the Plan Term, but each Award properly granted during the Plan Term will remain in effect after the Expiration Date until such
Award has been exercised, terminated or expired in accordance with its terms and the terms of this Plan. 


 ARTICLE III

SHARES SUBJECT TO PLAN  


3.1   Number of Shares.  


        The maximum number of shares of Common Stock that may be issued pursuant to Awards under this Plan is 8,050,000, subject to adjustment as set forth in  Section 3.4. 


3.2   Source of Shares.  


        The Common Stock to be issued under this Plan will be made available, at the discretion of the Administrator, either from authorized but unissued shares of Common
Stock or from previously issued shares of Common Stock reacquired by the Company, including without limitation shares purchased on the open market. 


3.3   Availability of Unused Shares.  


        Shares of Common Stock subject to unexercised portions of any Award that expire, terminate or are canceled, and shares of Common Stock issued pursuant to an Award
that are reacquired by the Company pursuant to this Plan or the terms of the Award under which such shares were issued, will again become available for the grant of further Awards under this Plan as
part of the shares available under Section 3.1. However, if the exercise price of, or withholding taxes incurred in connection with, an Award is
paid with shares of Common Stock, or if shares of Common Stock otherwise issuable pursuant to Awards are withheld by the Company in satisfaction of an exercise price or the withholding 


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taxes
incurred in connection with any exercise or vesting of an Award, then the number of shares of Common Stock available for issuance under the Plan will be reduced by the gross number of shares for
which the Award is exercised or for which it vests, as applicable, and not by the net number of shares of Common Stock issued to the holder of such Award. In addition, upon exercise of a Stock
Appreciation Right, the number of shares of Common Stock available for issuance under the Plan will be reduced by the gross number of shares for which the Award is exercised and not by the net number
of shares of Common Stock issued to the holder of such Award in settlement thereof. 


3.4   Adjustment Provisions.  


        (a)    Adjustments.    If the Company consummates any Reorganization in which holders of shares of Common Stock are
entitled to receive in respect of such shares any additional shares or new or different shares or securities, cash or other consideration (including, without limitation, a different number of shares
of Common Stock), or if the outstanding shares of Common Stock are increased, decreased, changed or exchanged for a different number or kind of shares or other securities through merger,
consolidation, sale or exchange of assets of the Company, reorganization, recapitalization, reclassification, combination, stock dividend, extraordinary cash dividend, stock split, reverse stock
split, spin-off, or similar transaction then, subject to Section 8.1, an appropriate and proportionate adjustment shall be made by
the Administrator in: (i) the maximum number and kind of shares subject to this Plan as provided in Section 3.1; (ii) the number
and kind of shares or other
securities subject to then outstanding Awards; (iii) the price for each share or other unit of any other securities subject to, or measurement criteria applicable to, then outstanding Awards;
and (iv) the number and kind of shares or other securities to be issued as Non-Employee Director Options. 


        (b)    No Fractional Interests.    No fractional interests will be issued under the Plan resulting from any
adjustments. 


        (c)    Adjustments Related to Company Stock.    To the extent any adjustments relate to stock or securities of the
Company, such adjustments will be made by the Administrator, whose determination in that respect will be final, binding and conclusive. 


        (d)    Right to Make Adjustment.    The grant of an Award will not affect in any way the right or power of the Company
to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge or to consolidate or to dissolve, liquidate or sell, or transfer all or any part of
its business or assets. 


        (e)    Limitations.    No adjustment to the terms of an Incentive Stock Option may be made unless such adjustment
either: (i) would not cause the Option to lose its status as an Incentive Stock Option; or (ii) is agreed to in writing by the Administrator and the Recipient. 


3.5   Reservation of Shares.  


        The Company will at all times reserve and keep available shares of Common Stock equaling at least the total number of shares of Common Stock issuable pursuant to
all outstanding Awards. 


 ARTICLE IV

ADMINISTRATION OF PLAN  


4.1   Administrator.  


        (a)    Plan Administration.    Subject to the provisions of Section 4.1(b), this Plan will be administered by the Board and may
also be administered by a Committee of the Board appointed pursuant to Section 4.1(b).  


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        (b)    Administration by Committee.    The Board in its sole discretion may from time to time
appoint a Committee of not less than two (2) Board members with authority to administer this Plan in whole or part and, subject to applicable law, to exercise any or all of the powers,
authority and discretion of the Board under this Plan. As long as the Company has a class of equity securities registered under Section 12 of the Exchange Act, this Plan will be administered by
a Committee of not less than two (2) Board members appointed by the Board in its sole discretion from time to time, each of whom is (i) a Non-Employee Director, and
(ii) an "Outside Director" as defined in the regulations adopted under Section 162(m) of the IRC. The Board may from time to time increase or decrease (but not below two (2)) the number
of members of the Committee, remove from membership on the Committee all or any portion of its members, and/or appoint such person or persons as it desires to fill any vacancy existing on the
Committee, whether caused by removal, resignation or otherwise. Unless otherwise required by this Section 4.1(b), the Board may disband the
Committee at any time. 


4.2   Authority of Administrator.  


        (a)    Authority to Interpret Plan.    Subject to the express provisions of this Plan, the Administrator will have the
power to implement, interpret and construe this Plan and any Awards and Award Documents or other documents defining the rights and obligations of the Company and Recipients hereunder and thereunder,
to determine all questions arising hereunder and thereunder, and to adopt and amend such rules and regulations for the administration hereof and thereof as it may deem desirable. The interpretation
and construction by the Administrator of any provisions of this Plan or of any Award or Award Document, and any action taken by, or inaction of, the Administrator relating to this Plan or any Award or
Award Document, will be within the discretion of the Administrator and will be conclusive and binding upon all persons. Subject only to compliance with the express provisions hereof, the Administrator
may act in its discretion in matters related to this Plan and any and all Awards and Award Documents. 


        (b)    Authority to Grant Awards.    Subject to the express provisions of this Plan, the Administrator may from time
to time in its discretion select the Eligible Persons to whom, and the time or times at which, Awards will be granted or sold, the nature of each Award, the number of shares of Common Stock or the
number of rights that make up or underlie each Award, the exercise price and period (if applicable) for the exercise of each Award, and such other terms and conditions applicable to each individual
Award as the Administrator may determine. Any and all terms and conditions of Awards may be established by the Administrator without regard to existing Awards or other grants and without incurring any
obligation of the Company in respect of subsequent Awards. The Administrator may grant at any time new Awards to an Eligible Person who has previously received Awards or other grants (including other
stock options) regardless of the status of such other Awards or grants. The Administrator may grant Awards singly or in combination or in tandem with other Awards as it determines in its discretion. 



        (c)    Procedures.    Subject to the Company's charter or bylaws or any Board resolution conferring authority on the
Committee, any action of the Administrator with respect to the administration of this Plan must be taken pursuant to a majority vote of the authorized number of members of the Administrator or by the
unanimous written consent of its members; provided, however, that (i) if the Administrator is the Committee and consists of two
(2) members, then actions of the Administrator must be unanimous, and (ii) actions taken by the Board will be valid if approved in accordance with applicable law. 



4.3   No Liability.  


        No member of the Board or the Committee or any designee thereof will be liable for any action or inaction with respect to this Plan or any Award or any
transaction arising under this Plan or any Award except in circumstances constituting bad faith of such member. 


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4.4   Amendments.  



        (a)    Plan Amendments.    The Administrator may at any time and from time to time in its discretion, insofar as
permitted by applicable law, rule or regulation and subject to Section 4.4(c), suspend or discontinue this Plan or revise or amend it in any
respect whatsoever, and this Plan as so revised or amended will govern all Awards, including those granted before such revision or amendment. Without limiting the
generality of the foregoing, the Administrator is authorized to amend this Plan to comply with or take advantage of amendments to applicable laws, rules or regulations, including the Securities Act,
the Exchange Act, the IRC, or the rules of any exchange or market system upon which the Common Stock is listed or trades, or any rules or regulations promulgated thereunder. No stockholder approval of
any amendment or revision will be required unless such approval is required by applicable law, rule or regulation. 


        (b)    Award Amendments; No Repricing.    The Administrator may at any time and from time to time in its discretion,
but subject to Section 4.4(c) and compliance with applicable statutory or administrative requirements, accelerate or extend the vesting or
exercise period of any Award as a whole or in part, and make such other modifications in the terms and conditions of an Award as it deems advisable, provided,
however, that the Administrator may reduce the exercise or base price of a Stock Option or SAR (either by cancellation of such Stock Option or SAR in exchange for cash, other
Awards, or a new Stock Option or SAR at such reduced exercise or base price or by amending the terms of the Stock Option or SAR to reflect such a reduced exercise or base price) only with stockholder
approval. 


        (c)    Limitation.    Except as otherwise provided in this Plan or in the applicable Award Document, no amendment,
revision, suspension or termination of this Plan or an outstanding Award that would cause an Incentive Stock Option to cease to qualify as such or that would alter, impair or diminish in any material
respect any rights or obligations under any Award theretofore granted under this Plan may be effected without the written consent of the Recipient to whom such Award was granted. 


4.5   Other Compensation Plans.  


        The adoption of this Plan will not affect any other stock option, incentive or other compensation plans in effect from time to time for the Company, and this Plan
will not preclude the Company from establishing any other forms of incentive or other compensation for employees, directors, advisors or consultants of the Company, whether or not approved by
stockholders. This Plan does not affect in any way any outstanding award grants made under such plans and awards granted under such plans will continue to be governed by the terms and conditions of
such plans. 


4.6   Plan Binding on Successors.  


        This Plan will be binding upon the successors and assigns of the Company. 


4.7   References to Successor Statutes, Regulations and Rules.  



        Any reference in this Plan to a particular statute, regulation or rule will also refer to any successor provision of such statute, regulation or rule. 


4.8   Invalid Provisions.  


        In the event that any provision of this Plan is found to be invalid or otherwise unenforceable under any applicable law, such invalidity or unenforceability is
not to be construed as rendering any other provisions contained herein invalid or unenforceable, and all such other provisions are to be given full force and effect to the same extent as though the
invalid and unenforceable provision were not contained herein. 


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4.9   Governing Law.  


        This Plan will be governed by and interpreted in accordance with the internal laws of the State of Delaware, without giving effect to the principles of the
conflicts of laws thereof. 


4.10 Interpretation.  


        Headings herein are for convenience of reference only, do not constitute a part of this Plan, and will not affect the meaning or interpretation of this Plan.
References herein to Sections or Articles are references to the referenced Section or Article hereof, unless otherwise specified. 


 ARTICLE V

GENERAL AWARD PROVISIONS  


5.1   Participation in Plan.  



        (a)    Eligibility to Receive Awards.    A person is eligible to receive grants of Awards if, at the time of the grant
of the Award, such person is an Eligible Person or has received an offer of employment from the Company, provided, however, that only
Non-Employee Directors are eligible to receive Non-Employee Director Options, and provided further, that Awards granted to a
person who has received an offer of employment will terminate and be forfeited without consideration if the employment offer is not accepted within such time as may be specified by the Company. Status
as an Eligible Person will not be construed as a commitment that any Award will be granted under this Plan to an Eligible Person or to Eligible Persons generally. 


        (b)    Eligibility to Receive Incentive Stock Options.    Incentive Stock Options may be granted only to Eligible
Persons meeting the employment requirements of Section 422 of the IRC. 


        (c)    Awards to Foreign Nationals.    Notwithstanding anything to the contrary herein, the Administrator may, in
order to fulfill the purposes of this Plan, modify grants of Awards to Recipients who are foreign nationals or employed outside of the United States to recognize differences in applicable law, tax
policy or local custom. 


5.2   Award Documents.  


        Each Award must be evidenced by an Award Document setting forth such terms and conditions applicable to the Award as the Administrator may in its discretion
determine. Awards will not be deemed made or binding upon the Company, and Recipients will have no rights thereto, until an Award Document agreement is entered into between the Company and the
Recipient or delivered by the Company to the Recipient, but an Award may have an effective date prior to the date of such an Award Document, to the extent consistent with applicable law.. Award
Documents may be (but need not be) identical and must comply with and be subject to the terms and conditions of this Plan, a copy of which will be provided to each Recipient and incorporated by
reference into each Award Document. Any Award Document may contain such other terms, provisions and conditions not inconsistent with this Plan as may be determined by the Administrator. In case of any
conflict between this Plan and any Award Document, this Plan shall control. 


5.3   Payment For Awards.  


        (a)    Payment of Exercise Price.    The exercise price or other payment for an Award is payable upon the exercise of
a Stock Option or upon other purchase of shares pursuant to an Award granted hereunder by delivery of legal tender of the United States or payment of such other consideration as the Administrator may
from time to time deem acceptable in any particular instance; provided, however, that the Administrator may, in the exercise of its discretion, allow
exercise of an Award in a 


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broker-assisted
or similar transaction in which the exercise price is not received by the Company until promptly after exercise. 


        (b)    [Reserved]    


        (c)    Cashless Exercise.    If permitted in any case by the Administrator in its discretion, the exercise price for
Awards may be paid by capital stock of the Company delivered in transfer to the Company by or on behalf of the person exercising the Award and duly endorsed in blank or accompanied by stock powers
duly endorsed in blank, with signatures guaranteed in accordance with the Exchange Act if required by the Administrator; or retained by the Company from the stock otherwise issuable upon exercise or
surrender of vested and/or exercisable Awards or other equity awards previously granted to the Recipient and being exercised (if applicable) (in either case valued at Fair Market Value as of the
exercise date); or such other consideration as the Administrator may from time to time in the exercise of its discretion deem acceptable in any particular instance. 


        (d)    No Precedent.    Recipients will have no rights to the exercise techniques described in  Section 5.3(c), and the Company
may offer or permit such techniques on an ad hoc basis to any
Recipient without incurring any obligation to offer or permit such techniques on other occasions or to other Recipients. 


5.4   No Employment Rights.  


        Nothing contained in this Plan (or in Award Documents or in any other documents related to this Plan or to Awards) will confer upon any Eligible Person or
Recipient any right to continue in the employ of or engagement by the Company or any Affiliated Entity or constitute any contract or agreement of employment or engagement, or interfere in any way with
the right of the Company or any Affiliated Entity to reduce such person's compensation or other benefits or to terminate the employment or engagement of such Eligible Person or Recipient, with or
without cause. Except as expressly provided in this Plan or in any statement evidencing the grant of an Award, the Company has the right to deal with each Recipient in the same manner as if this Plan
and any such statement evidencing the grant of
an Award did not exist, including, without limitation, with respect to all matters related to the hiring, discharge, compensation and conditions of the employment or engagement of the Recipient.
Unless otherwise set forth in a written agreement binding upon the Company or an Affiliated Entity, all employees of the Company or an Affiliated Entity are "at will" employees whose employment may be
terminated by the Company or the Affiliated Entity at any time for any reason or no reason, without payment or penalty of any kind. Any question(s) as to whether and when there has been a termination
of a Recipient's employment or engagement, the reason (if any) for such termination, and/or the consequences thereof under the terms of this Plan or any statement evidencing the grant of an Award
pursuant to this Plan will be determined by the Administrator and the Administrator's determination thereof will be final and binding. 


5.5   Restrictions Under Applicable Laws and Regulations.  


        (a)    Government Approvals.    All Awards will be subject to the requirement that, if at any time the Company
determines, in its discretion, that the listing, registration or qualification of the securities subject to Awards granted under this Plan upon any securities exchange or interdealer quotation system
or under any federal, state or foreign law, or the consent or approval of any government or regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such an
Award or the issuance, if any, or purchase of shares in connection therewith, such Award may not be exercised as a whole or in part unless and until such listing, registration, qualification, consent
or approval has been effected or obtained free of any conditions not acceptable to the Company. During the term of this Plan, the Company will use its reasonable efforts to seek to obtain from the
appropriate governmental and regulatory agencies any requisite qualifications, consents, approvals or authorizations 


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in
order to issue and sell such number of shares of its Common Stock as is sufficient to satisfy the requirements of this Plan. The inability of the Company to obtain any such qualifications,
consents, approvals or authorizations after such reasonable efforts will relieve the Company of any liability in respect of the nonissuance or sale of such stock as to which such qualifications,
consents, approvals or authorizations pertain. 


        (b)    No Registration Obligation; Recipient Representations.    The Company will be under no obligation to register
or qualify the issuance of Awards or underlying securities under the Securities Act or applicable state securities laws. Unless the issuance of Awards and underlying securities have been registered
under the Securities Act and qualified or registered under applicable state securities laws, the Company shall be under no obligation to issue any Awards or underlying securities unless the Awards and
underlying securities may be issued pursuant to applicable exemptions from such registration or qualification requirements. In connection with any such exempt issuance, the Administrator may require
the Recipient to provide a written representation and undertaking to the Company, satisfactory in form and scope to the Company, that such Recipient is acquiring such Awards
and underlying securities for such Recipient's own account as an investment and not with a view to, or for sale in connection with, the distribution of any such securities, and that such person will
make no transfer of the same except in compliance with any rules and regulations in force at the time of such transfer under the Securities Act and other applicable law, and that if securities are
issued without registration, a legend to this effect (together with any other legends deemed appropriate by the Administrator) may be endorsed upon the securities so issued, and to the effect of any
additional representations that are appropriate in light of applicable securities laws and rules. The Company may also order its transfer agent to stop transfers of such shares. The Administrator may
also require the Recipient to provide the Company such information and other documents as the Administrator may request in order to satisfy the Administrator as to the investment sophistication and
experience of the Recipient and as to any other conditions for compliance with any such exemptions from registration or qualification. 


5.6   Additional Conditions.  


        Any Award may be subject to such provisions (whether or not applicable to any other Award or Recipient) as the Administrator deems appropriate, including without
limitation provisions for the forfeiture of or restrictions on resale or other disposition of securities of the Company acquired under this Plan, provisions giving the Company the right to repurchase
securities of the Company acquired under this Plan in the event the Recipient leaves the Company for any reason or elects to effect any disposition thereof, and provisions to comply with federal and
state securities laws. 


5.7   No Privileges re Stock Ownership or Specific Assets.  


        Except as otherwise set forth herein, a Recipient or a permitted transferee of an Award will have no rights as a stockholder with respect to any shares issuable
or issued in connection with the Award until the Recipient has delivered to the Company all amounts payable and performed all obligations required to be performed in connection with exercise of the
Award and the Company has issued such shares. No person will have any right, title or interest in any fund or in any specific asset (including shares of capital stock) of the Company by reason of any
Award granted hereunder. Neither this Plan (or any documents related hereto) nor any action taken pursuant hereto is to be construed to create a trust of any kind or a fiduciary relationship between
the Company and any person. To the extent that any person acquires a right to receive an Award hereunder, such right shall be no greater than the right of any unsecured general creditor of the
Company. 


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5.8   Nonassignability.  


        No Award is assignable or transferable except: (a) by will or by the laws of descent and distribution; or (b) subject to the final sentence of this  Section 5.8, upon dissolution of marriage pursuant to a qualified domestic relations order or, in the discretion of the Administrator on a
case-by-case basis and under circumstances that would not adversely affect the interests of the Company, transfers for estate planning purposes or pursuant to a nominal
transfer that does not result in a change in beneficial ownership. Subject to the final sentence of this Section 5.8, during the lifetime of a
Recipient, an Award granted to such person will be exercisable only by the Recipient (or the Recipient's permitted transferee) or such person's guardian or legal representative. Notwithstanding the
foregoing, Stock Options intended to be treated as Incentive Stock Options (or other Awards subject to transfer restrictions under the IRC) (i) may not be assigned or transferred in violation
of Section 422(b)(5) of the IRC or the regulations thereunder, and nothing herein is intended to allow such assignment or transfer; and (ii) will be exercisable during a Recipient's
lifetime only by the Recipient. 


5.9   Information To Recipients.  


        (a)    Provision of Information.    The Administrator in its sole discretion may determine what, if any, financial and
other information is to be provided to Recipients and when such financial and other information is to be provided after giving consideration to applicable federal and state laws, rules and
regulations, including, without limitation, applicable federal and state securities laws, rules and regulations. 



        (b)    Confidentiality.    The furnishing of financial and other information that is confidential to the Company is
subject to the Recipient's agreement to maintain the confidentiality of such financial and other information, and not to use the information for any purpose other than evaluating the Recipient's
position under this Plan. The Administrator may impose other restrictions on the access to and use of such confidential information and may require a Recipient to acknowledge the Recipient's
obligations under this Section 5.9(b) (which acknowledgment is not to be a condition to Recipient's obligations under this  Section 5.9(b)).




5.10 Withholding Taxes.  


        Whenever the granting, vesting or exercise of any Award, or the issuance of any Common Stock or other securities upon exercise of any Award or transfer thereof,
gives rise to tax or tax withholding
liabilities or obligations, the Administrator will have the right as a condition thereto to require the Recipient to remit to the Company an amount sufficient to satisfy any federal, state and local
withholding tax requirements arising in connection therewith. The Administrator may, in the exercise of its discretion, allow satisfaction of tax withholding requirements by accepting delivery of
stock of the Company or by withholding a portion of the stock otherwise issuable in connection with an Award, in each case valued at Fair Market Value as of the date of such delivery or withholding,
as the case may be. 


5.11 Legends on Awards and Stock Certificates.  


        Each Award Document and each certificate representing securities acquired upon grant, vesting or exercise of an Award must be endorsed with all legends, if any,
required by applicable federal and state securities and other laws to be placed on the Award Document and/or the certificate. The determination of which legends, if any, will be placed upon Award
Documents or the certificates will be made by the Administrator in its discretion and such decision will be final and binding. 


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5.12 Effect of Termination of Employment on Awards.  


        (a)    Termination of Vesting.    Notwithstanding anything to the contrary herein, but subject to  Section 5.12(b) Awards will
be exercisable by a Recipient (or the Recipient's successor in interest) following such Recipient's termination of
employment or service only to the extent that installments thereof had become exercisable on or prior to the date of such termination. 


        (b)    Alteration of Vesting and Exercise Periods.    Notwithstanding anything to the contrary herein, the
Administrator may in its discretion (i) designate shorter or longer periods following a Recipient's termination of employment or service during which Awards may vest or be exercised;  provided, however, that any shorter periods determined by the Administrator will be effective only if provided for in this Plan or the instrument that
evidences the grant to the Recipient of the affected Award or if such shorter period is agreed to in writing by the Recipient, and (ii) accelerate the vesting of all or any portion of any
Awards by increasing the number of shares purchasable at any time. 


        (c)    Leave of Absence.    In the case of any employee on an approved leave of absence, the Administrator may make
such provision respecting continuance of Awards granted to such employee as the Administrator in its discretion deems appropriate, except that in no event will an Award be exercisable after the date
such Award would expire in accordance with its terms had the Recipient remained continuously employed. 



        (d)    General Cessation.    Except as otherwise set forth in this Plan or an Award Document or as determined by the
Administrator in its discretion, all Awards granted to a Recipient, and all of such Recipient's rights thereunder, will terminate upon termination for any reason of such Recipient's employment or
service with the Company or any Affiliated Entity (or cessation of any other service relationship between the Recipient and the Company or any Affiliated Entity in place as of the date the Award was
granted). 


5.13 Lock-Up Agreements.  


        Each Recipient agrees as a condition to receipt of an Award that, in connection with any public offering by the Company of its equity securities and upon the
request of the Company and the principal underwriter (if any) in such public offering, any shares of Common Stock acquired or that may be acquired upon exercise or vesting of an Award may not be sold,
offered for sale, encumbered, or otherwise disposed of or subjected to any transaction that will involve any sales or other transfer of securities of the Company, or any interest therein, without the
prior written consent of the Company or such underwriter, as the case may be, for a period of not more than 365 days after the commencement date of such public offering. Each Recipient will, if
requested by the Company or the principal underwriter, enter into a separate agreement to the effect of this Section 5.13. 


5.14 Restrictions on Common Stock and Other Securities.  


        Common Stock or other securities of the Company issued or issuable in connection with any Award will be subject to all of the restrictions imposed under this Plan
upon Common Stock issuable or issued upon exercise of Stock Options, except as otherwise determined by the Administrator. 


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  5.15 Limits on Awards to Eligible Persons.  


        Notwithstanding any other provision of this Plan, no one Eligible Person shall be (a) granted Awards (other than Performance Awards payable in cash) with
respect to more than 1,800,000 shares of Common Stock in any one calendar year, and (b) granted Performance Awards payable in cash that exceed $1,000,000 in any one calendar year,  provided, however,
 that this limitation shall not apply if it is not required in order for the compensation attributable to Awards hereunder to qualify
as Performance-Based Compensation. The limitation set forth in this Section 5.15(a) will be subject to adjustment as provided in  Section 3.4 or
under Article VIII, but only to the extent such adjustment would not affect
the status of compensation attributable to Awards as Performance-Based Compensation. 


 ARTICLE VI

AWARDS  


6.1   Stock Options.  


        (a)    Nature of Stock Options.    Stock Options may be Incentive Stock Options or Nonqualified Stock Options. 



        (b)    Option Exercise Price.    The exercise price for each Stock Option will be determined by the Administrator as
of the date such Stock Option is granted and shall not be less than the Fair Market Value of the underlying stock on the date of grant, provided, however, that in the case of Stock Options granted to
employees upon a merger or acquisition, the exercise price may be higher or lower than the Fair Market Value of the underlying stock on the date of grant if such exercise price is required to assume
or substitute options held by employees of the acquired corporation at the time of the acquisition. 



        (c)    Option Period and Vesting.    Stock Options granted hereunder will vest and may be exercised as determined by
the Administrator, except that exercise of Stock Options after termination of the Recipient's employment or service shall be subject to  Section 5.12 and Section 6.1(e)
. Each Stock Option granted hereunder and all rights or
obligations thereunder shall expire on such date as may be determined by the Administrator, but not later than ten (10) years after the date the Stock Option is granted and may be subject to
earlier termination as provided herein or in the Award Document. Except as otherwise provided herein, a Stock Option will become exercisable, as a whole or in part, on the date or dates specified by
the Administrator and thereafter will remain exercisable until the exercise, expiration or earlier termination of the Stock Option. 


        (d)    Exercise of Stock Options.    The exercise price for Stock Options will be paid as set forth in  Section 5.3. No Stock
Option will be exercisable except in respect of whole shares, and fractional share interests shall be disregarded. Not
fewer than 100 shares of Common Stock (or such other amount as may be set forth in the applicable Award Document) may be purchased at one time and Stock Options must be exercised in multiples of 100
unless the number purchased is the total number of shares for which the Stock Option is exercisable at the time of exercise. A Stock Option will be deemed to be exercised when the Secretary or other
designated official of the Company receives written notice of such exercise from the Recipient in the form of Exhibit A hereto or such other form
as the Company may specify from time to time, together with payment of the exercise price in accordance with Section 5.3 and any amounts required
under Section 5.10 or, with permission of the Administrator, arrangement for such payment. Notwithstanding any other provision of this Plan, the
Administrator may impose, by rule and/or in Award Documents, such conditions upon the exercise of Stock Options (including, without limitation, conditions limiting the time of exercise to specified
periods) as may be required to satisfy applicable regulatory requirements, including, without limitation, Rule 16b-3 and Rule 10b-5 under the Exchange Act, and
any amounts required under Section 5.10, or any applicable section of or regulation under the IRC. 


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        (e)    Termination of Employment.    



        (i)    Termination for Just Cause.    Subject to Section 5.12
and except as otherwise provided in a written agreement between the Company or an Affiliated Entity and the Recipient, which may be entered into at any time before or after termination of employment
or service, in the event of a Just Cause Dismissal of a Recipient all of the Recipient's unexercised Stock Options, whether or not vested, will expire and become unexercisable as of the date of such
Just Cause Dismissal. 


        (ii)    Termination Other Than for Just Cause.    Subject to  Section 5.12 and except as otherwise provided in a written
agreement between the Company or an Affiliated Entity and the Recipient, which may be
entered into at any time before or after termination of employment or service, if a Recipient's employment or service with the Company or any Affiliated Entity terminates for: 



        (A)  any
reason other than for Just Cause Dismissal, death, or Permanent Disability, the Recipient's Stock Options, whether or not vested, will expire and become
unexercisable as of the earlier of: (1) the date such Stock Options would expire in accordance with their terms had the Recipient remained employed; and (2) 90 days after the date
of termination of employment or service. 


        (B)  death
or Permanent Disability, the Recipient's unexercised Stock Options will, whether or not vested, expire and become unexercisable as of the earlier of:
(1) the date such Stock Options would expire in accordance with their terms had the Recipient remained employed; and (2) one year after the date of termination of employment or service. 





        (f)    Special Provisions Regarding Incentive Stock Options.    Notwithstanding anything herein to the contrary, 



          (i)  The
exercise price and vesting period of any Stock Option intended to be treated as an Incentive Stock Option must comply with the provisions of Section 422 of
the IRC and the regulations thereunder. As of the Effective Date, such provisions require, among other matters, that: (A) the exercise price must not be less than the Fair Market Value of the
underlying stock as of the date the Incentive Stock Option is granted, and not less than 110% of the Fair Market Value as of such date in the case of a grant to a Significant Stockholder; and
(B) that the Incentive Stock Option not be exercisable after the expiration of ten (10) years from the date of grant or the expiration of five (5) years from the date of
grant in the case of an Incentive Stock Option granted to a Significant Stockholder. 


         (ii)  The
aggregate Fair Market Value (determined as of the respective date or dates of grant) of the Common Stock for which one or more Stock Options granted to any
Recipient under this Plan (or any other option plan of the Company or of any Parent Corporation or Subsidiary Corporation) may for the first time become exercisable as Incentive Stock Options under
the federal tax laws during any one calendar year may not exceed $100,000. 



        (iii)  Any
Stock Options granted as Incentive Stock Options pursuant to this Plan that for any reason fail or cease to qualify as such will be treated as Nonqualified Stock
Options. If the limit described in  Section 6.1(f)(ii) is exceeded, the earliest granted Stock Options will be treated as Incentive Stock Options, up to such limit. 




        (g)    Non-Employee Director
Options.    Article VII will govern Non-Employee Director Options to the extent inconsistent with
this Section 6.1. 


6.2   Performance Awards.  


        (a)    Grant of Performance Award.    The Administrator will determine in its discretion the preestablished, objective
performance goals (which need not be identical and may be established on an 


11







 

individual
or group basis) governing Performance Awards, the terms thereof, and the form and time of payment of Performance Awards. 


        (b)    Payment of Award.    Upon satisfaction of the conditions applicable to a Performance Award, payment will be
made to the Recipient in cash, in shares of Common Stock valued at Fair Market Value as of the date payment is due, or in a combination of Common Stock and cash, as the Administrator in its discretion
may determine. 


6.3   Restricted Stock.  


        (a)    Award of Restricted Stock.    The Administrator will determine the Purchase Price (if any), the terms of
payment of the Purchase Price, the restrictions upon the Restricted Stock, and when such restrictions will lapse. 


        (b)    Requirements of Restricted Stock.    All shares of Restricted Stock granted or sold pursuant to this Plan will
be subject to the following conditions: 



        (i)    No Transfer.    The shares may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed
of, alienated or encumbered until the restrictions are removed or expire; 


        (ii)    Certificates.    The Administrator may require that the certificates representing Restricted Stock granted or
sold to a Recipient remain in the physical custody of an escrow holder or the Company until all restrictions are removed or expire; 



        (iii)    Restrictive Legends.    Each certificate representing Restricted Stock granted or sold to a Recipient
pursuant to this Plan will bear such legend or legends making reference to the restrictions imposed upon such Restricted Stock as the Administrator in its discretion deems necessary or appropriate to
enforce such restrictions; and 


        (iv)    Other Restrictions.    The Administrator may impose such other conditions on Restricted Stock as the
Administrator may deem advisable, including, without limitation, restrictions under the Securities Act, under the Exchange Act, under the requirements of any stock exchange or interdealer quotation
system upon which such Restricted Stock or other securities of the Company are then listed or traded and under any blue sky or other securities laws applicable to such shares. 




        (c)    Lapse of Restrictions.    The restrictions imposed upon Restricted Stock will lapse in accordance with such
terms or other conditions as are determined by the Administrator. 


        (d)    Rights of Recipient.    Subject to the provisions of  Section 6.3(b) and any restrictions imposed upon the Restricted
Stock, the Recipient will have all rights of a stockholder with respect to the
Restricted Stock granted or sold to such Recipient under this Plan, including, without limitation, the right to vote the shares and receive all dividends and other distributions paid or made with
respect thereto. 


        (e)    Termination of Employment.    Unless the Administrator in its discretion determines otherwise, if a Recipient's
employment or service with the Company or any Affiliated Entity terminates for any reason, all of the Recipient's Restricted Stock remaining subject to restrictions on the date of such termination of
employment or service will be repurchased by the Company at the Purchase Price (if any) paid by the Recipient to the Company, without interest or premium, and otherwise returned to the Company without
consideration. 


6.4   Stock Appreciation Rights.  


        (a)    Granting of Stock Appreciation Rights.    The Administrator may at any time and from time to time approve the
grant to Eligible Persons of Stock Appreciation Rights, related or unrelated to Stock Options. 


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        (b)    SARs Related to Options.    



          (i)  A
Stock Appreciation Right related to a Stock Option will entitle the holder of the related Stock Option, upon exercise of the Stock Appreciation Right, to surrender
such Stock Option, or any portion thereof to the extent previously vested but unexercised, with respect to the number of shares as to which such Stock Appreciation Right is exercised, and to receive
payment of an amount computed pursuant to Section 6.4(b)(iii). Such Stock Option will, to the extent surrendered, then cease to be exercisable. 


         (ii)  A
Stock Appreciation Right related to a Stock Option hereunder will be exercisable at such time or times, and only to the extent that, the related Stock Option is
exercisable, and will not be transferable except to the extent that such related Stock Option may be transferable (and under the same conditions), will expire no later than the expiration of the
related Stock Option, and may be exercised only when the market price of the Common Stock subject to the related Stock Option exceeds the exercise price of the Stock Option. 


        (iii)  Upon
the exercise of a Stock Appreciation Right related to a Stock Option, the Recipient will be entitled to receive payment of an amount determined by multiplying:
(A) the difference obtained by subtracting the exercise price of a share of Common Stock specified in the related Stock Option from the Fair Market Value of a share of Common Stock on the date
of exercise of such Stock Appreciation Right (or as of such other date or as of the occurrence of such event as may have been specified in the instrument evidencing the grant of the Stock Appreciation
Right), by (B) the number of shares as to which such Stock Appreciation Right is exercised. 




        (c)    SARs Unrelated to Options.    The Administrator may grant Stock Appreciation Rights unrelated to Stock Options.  Section 6.4(b)(iii)
 will govern the amount payable at exercise under such Stock Appreciation Right, except that in lieu of an option exercise
price the initial base amount specified in the Award shall be used. 


        (d)    Limits.    Notwithstanding the foregoing, the Administrator, in its discretion, may place a dollar limitation
on the maximum amount that will be payable upon the exercise of a Stock Appreciation Right. 



        (e)    Payments.    Payment of the amount determined under the foregoing provisions may be made solely in whole shares
of Common Stock valued at their Fair Market Value on the date of exercise of the Stock Appreciation Right or, alternatively, at the discretion of the Administrator, in cash or in a combination of cash
and shares of Common Stock as the Administrator deems advisable. The Administrator has full discretion to determine the form in which payment of a Stock Appreciation Right will be made and to consent
to or disapprove the election of a Recipient to receive cash in full or partial settlement of a Stock Appreciation Right. If the Administrator decides to make full payment in shares of Common Stock,
and the amount payable results in a fractional share, payment for the fractional share will be made in cash. 


6.5   Stock Payments.  


        The Administrator may approve Stock Payments to any Eligible Person on such terms and conditions as the Administrator may determine. Stock Payments will replace
cash compensation at the Fair Market Value of the Common Stock on the date payment is due. 


6.6   Dividend Equivalents.  


        The Administrator may grant Dividend Equivalents to any Recipient who has received an Award denominated in shares of Common Stock other than Stock Options or SARs
or, to the extent unearned, Performance Awards. Dividend Equivalents may be paid in cash, Common Stock or other Awards; the amount of Dividend Equivalents paid other than in cash will be determined by
the 


13







 



Administrator
by application of such formula as the Administrator may deem appropriate to translate the cash value of dividends paid to the alternative form of payment of the Dividend Equivalent.
Dividend Equivalents will be computed as of each dividend record date and will be payable to recipients thereof at such time as the Administrator may determine. Notwithstanding the foregoing, if it is
intended that an Award qualify as Performance-Based Compensation, and the amount of compensation the Recipient could receive under the Award is based solely on an increase in value of the underlying
stock after the date of the grant or award, then the payment of any Dividend Equivalents related to the Award shall not be made contingent on the exercise of the Award. 


6.7   Stock Bonuses.  


        The Administrator may issue Stock Bonuses to Eligible Persons on such terms and conditions as the Administrator may determine. 



6.8   Stock Sales.  


        The Administrator may sell to Eligible Persons shares of Common Stock on such terms and conditions as the Administrator may determine. 


6.9   Phantom Stock.  


        The Administrator may grant Awards of Phantom Stock to Eligible Persons. Phantom Stock is a cash payment measured by the Fair Market Value of a specified number
of shares of Common Stock on a specified date, or measured by the excess of such Fair Market Value over a specified minimum, which may but need not include a Dividend Equivalent. 



6.10 Other Stock-Based Benefits.  


        The Administrator is authorized to grant Other Stock-Based Benefits. Other Stock-Based Benefits are any arrangements granted under this Plan not otherwise
described above that: (a) by their terms might involve the issuance or sale of Common Stock or other securities of the Company; or (b) involve a benefit that is measured, as a whole or
in part, by the value, appreciation, dividend yield or other features attributable to a specified number of shares of Common Stock or other securities of the Company. 


 ARTICLE VII

NON-EMPLOYEE DIRECTOR OPTIONS  


7.1   Grants of Stock Options.  


        Immediately following each annual meeting of stockholders of the Company, each Non-Employee Director who has served as a director since his or her
election or appointment and has been re-elected as a director at such annual meeting shall automatically receive an option to purchase up to 10,000 shares of the Company's Common Stock.
Each Non-Employee Director who is appointed or elected other than at an annual meeting of stockholders of the Company (whether by replacing a director who retires, resigns or otherwise
terminates his or her service as a director prior to the expiration of his or her term or otherwise) shall automatically receive an option to purchase shares of the Company's Common Stock as of the
date of such appointment or election, consisting of a number of shares of Company Common Stock determined by multiplying 10,000 by a fraction, the numerator of which is the number of days from the
date of grant to the date of the next scheduled annual meeting of stockholders of the Company and the denominator of which is 365 (exclusive of fractional shares). The exercise price for all grants of
options granted under this Section 7.1 shall be equal to the Fair Market Value of the Company's Common Stock on the date of grant, subject to:
(a) vesting as set forth in Section 7.2 and (b) adjustment as set forth in this Plan. 


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7.2   Vesting.  


        All grants of options granted under Section 7.1 shall vest and become exercisable 100% on the day prior to
the date of the next annual meeting of stockholders following the grant date if the Recipient has remained a director for the entire period from the date of grant to such vesting date. Notwithstanding
the foregoing, however, subject to subject to Section 5.12, all grants of options granted under  Section 7.1 that have not vested and become
exercisable at the time the Recipient ceases to be a director shall terminate. 


7.3   Exercise.  


        Non-Employee Director Options will be exercisable, and the exercise price therefor shall be paid, in the same manner as provided herein for other
Stock Options. 



7.4   Term of Options and Effect of Termination.  


        Notwithstanding any other provision of the Plan, no Non-Employee Director Option granted under the Plan shall be exercisable after the expiration of
ten years from the effective date of its grant. In the event that the Recipient of any Non-Employee Director Options granted under the Plan shall cease to be a director of the Company,
subject to Section 5.12, all grants of options granted under Section 7.1 of this Plan to
such Recipient shall be exercisable, to the extent already exercisable at the date such Recipient ceases to be a director and regardless of the reason the Recipient ceases to be a director, for a
period of 365 days after that date (or, if sooner, until the expiration of the option according to its terms), and shall then terminate. In the event of the death of a Recipient while such
Recipient is a director of the Company or within the period after termination of such status during which he or she is permitted to exercise an option, such option may be exercised by any person or
persons designated by the Recipient on a beneficiary designation form adopted by the Plan administrator for such purpose or, if there is no effective beneficiary designation form on file with the
Company, by the executors or administrators of the Recipient's estate or by any person or persons who shall have acquired the option directly from the Recipient by his or her will or the applicable
laws of descent and distribution. 



7.5   Amendment; Suspension.  


        The Administrator may at any time and from time to time in its discretion (a) change the number of shares or vesting periods associated with the
Non-Employee Director Options, and (b) suspend and reactivate this Article VII. 


 ARTICLE VIII

CHANGE IN CONTROL  



8.1   Provision for Awards Upon Change in Control.  


        Unless otherwise set forth in an Award Document or in this Section 8.1, as of the effective time and date
of any Change in Control, this Plan and any then outstanding Awards (whether or not vested) will automatically terminate unless: (a) provision is made in writing in connection with such
transaction for the continuance of this Plan and for the assumption of such Awards, or for the substitution for such Awards of new awards covering the securities of a successor entity or an affiliate
thereof, with appropriate adjustments as to the number and kind of securities and exercise prices or other measurement criteria, in which event this Plan and such outstanding Awards will continue or
be replaced, as the case may be, in the manner and under the terms so provided; or (b) the Board otherwise provides in writing for such adjustments as it deems appropriate in the terms and
conditions of the then-outstanding Awards (whether or not vested), including, without limitation, (i) accelerating the vesting of outstanding Awards, and/or (ii) providing
for the cancellation of Awards and their automatic conversion into the right to receive the securities, cash or other consideration that a holder 


15







 



of
the shares underlying such Awards would have been entitled to receive upon consummation of such Change in Control had such shares been issued and outstanding immediately prior to the effective date
and time of the Change in Control (net of the appropriate option exercise prices). If, pursuant to the foregoing provisions of this Section 8.1,
this Plan and the Awards terminate by reason of the occurrence of a Change in Control without provision for any of the action(s) described in clause (a) or (b) hereof, then subject to  Section 5.12 and Section 6.1(e), any Recipient holding outstanding Awards will have the
right, at such time prior to the consummation of the Change in Control as the Board designates, to exercise or receive the full benefit of the Recipient's Awards to the full extent not theretofore
exercised, including any installments which have not yet become vested. Notwithstanding anything to the contrary in this Section 8.1, the vesting
provisions of Section 7.2 or any other provision in the Plan, all Non-Employee Director Options granted under the Plan shall
automatically vest and become exercisable immediately prior to any Change in Control if the optionee is a director of the Company at that time. 


 ARTICLE IX

DEFINITIONS  


        Capitalized terms used in this Plan and not otherwise defined have the meanings set forth below: 


        "Administrator" means the Board as long as no Committee has been appointed and is in effect and also means the Committee to the extent
that the Board has delegated authority thereto. 


        "Affiliated Entity" means any Parent Corporation of the Company or Subsidiary Corporation of the Company or any other entity controlling,
controlled by, or under common control with the Company. 


        "Applicable Dividend Period" means (i) the period between the date a Dividend Equivalent is granted and the date the related Award
terminates or is converted to Common Stock, or (ii) such other time as the Administrator may specify in the written instrument evidencing the grant of the Dividend Equivalent. 



        "Award" means any Stock Option, Performance Award, Restricted Stock, Stock Appreciation Right, Stock Payment, Stock Bonus, Stock Sale,
Phantom Stock, Dividend Equivalent, or Other Stock-Based Benefit granted or sold to an Eligible Person under this Plan, or any similar award granted by the Company prior to the Effective Date and
outstanding as of the Effective Date that is governed by this Plan. 


        "Award Document" means the agreement or confirming memorandum (or other instrument) setting forth the terms and conditions of an Award. An
Award Document may be in the form of an agreement to be executed by both the Recipient and the Company (or an authorized representative of the Company) or certificates, notices or similar instruments
as approved by the Administrator. 


        "Board" means the Board of Directors of the Company. 


        "Change in Control" means the following and shall be deemed to occur if any of the following events occurs: 



          (i)  Any
Person becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent (50%) or more of
either the then outstanding shares of Common Stock or the combined voting power of the Company's then outstanding securities entitled to vote generally in the election of directors; or 


         (ii)  Individuals
who, as of the effective date hereof, constitute the Board (the "Incumbent Board") cease for any reason to
constitute at least a majority of the Board, provided, however, that any individual who becomes a director after the effective date hereof whose
election, or nomination for election by the Company's stockholders, is approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered to be a member
of the 



16







 




Incumbent
Board unless that individual was nominated or elected by any person, entity or group (as defined above) having the power to exercise, through beneficial ownership, voting agreement and/or
proxy, twenty percent (20%) or more of either the outstanding shares of Common Stock or the combined voting power of the Company's then outstanding voting securities entitled to vote generally in the
election of directors, in which case that individual shall not be considered to be a member of the
Incumbent Board unless such individual's election or nomination for election by the Company's stockholders is approved by a vote of at least two-thirds of the directors then comprising the
Incumbent Board; or 


        (iii)  Consummation
by the Company of the sale or other disposition by the Company of all or substantially all of the Company's assets or a Reorganization of the Company with
any other person, corporation or other entity, other than 



        (A)  a
Reorganization that would result in the voting securities of the Company outstanding immediately prior thereto (or, in the case of a Reorganization that is preceded or
accomplished by an acquisition or series of related acquisitions by any Person, by tender or exchange offer or otherwise, of voting securities representing 5% or more of the combined voting power of
all securities of the Company, immediately prior to such acquisition or the first acquisition in such series of acquisitions) continuing to represent, either by remaining outstanding or by being
converted into voting securities of another entity, more than 50% of the combined voting power of the voting securities of the Company or such other entity outstanding immediately after such
Reorganization (or series of related transactions involving such a Reorganization), or 


        (B)  a
Reorganization effected to implement a recapitalization or reincorporation of the Company (or similar transaction) that does not result in a material change in
beneficial ownership of the voting securities of the Company or its successor; or 




        (iv)  Approval
by the stockholders of the Company or an order by a court of competent jurisdiction of a plan of liquidation of the Company. 




        "Committee" means any committee appointed by the Board to administer this Plan pursuant to  Section 4.1. 


        "Common Stock" means the common stock of the Company, $0.001 par value per share, as constituted on the Effective Date, and as thereafter
adjusted under Section 3.4. 


        "Company" means Quidel Corporation, a Delaware corporation. 


        "Dividend Equivalent" means a right granted by the Company under Section 6.6 to a
holder of an Award denominated in shares of Common Stock to receive from the Company during the Applicable Dividend Period payments equivalent to the amount of dividends payable to holders of the
number of shares of Common Stock underlying such Award. 


        "Effective Date" means May 23, 2001, the date this Plan was first approved and adopted by the Company's stockholders. 


        "Eligible Person" includes directors, including Non-Employee Directors, officers, employees, consultants and advisors of the
Company or of any Affiliated Entity; provided, however, that in order to be Eligible Persons, consultants and advisors must render  bona fide services to
the Company or any Affiliated Entity that are not in connection with capital-raising.
 


        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 


        "Expiration Date" means the tenth (10th) anniversary of the Effective Date. 


17







 

        "Fair Market Value" of a share of the Company's capital stock as of a particular date means: (i) if the stock is listed on an
established stock exchange or exchanges (including for this purpose, the Nasdaq Global Select Market), the closing sale price of the stock for such date on the primary exchange upon which the stock
trades, as measured by volume, as published in The Wall Street Journal, or, if no sale price was quoted for such date, then as of the next preceding
date on which such a sale price was quoted; or (ii) if the stock is not then listed on an exchange (including the Nasdaq Global Select Market), the average of the closing bid and asked prices
per share for the stock in the over-the-counter market on such date (in the case of (i) or (ii), subject to adjustment as and if necessary and appropriate to set an
exercise price not less than 100% of the fair market value of the stock on the date an Award is granted); or (iii) if the stock is not then listed on an exchange or quoted in the
over-the-counter market, an amount determined in good faith by the Administrator, provided, however, that (A) when
appropriate, the Administrator in determining Fair Market Value of capital stock of the Company may take into account such other factors as it may deem appropriate under the circumstances, and
(B) if the stock is traded on the Nasdaq SmallCap Market and both sales prices and bid and asked prices are quoted or available, the Administrator may elect to determine Fair Market Value under
either clause (i) or (ii) above. Notwithstanding the foregoing, the Fair Market Value of capital stock for purposes of grants of Stock Options and Stock Appreciation Rights must be
determined in a manner consistent with Section 409A of the IRC and, to the extent applicable, Section 422 of the IRC. The Fair Market Value of rights or property other than capital stock
of the Company means the fair market value thereof as determined by the Administrator on the basis of such factors as it may deem appropriate. 


        "Incentive Stock Option" means a Stock Option that qualifies as an incentive stock option under Section 422 of the IRC. 


        "IRC" means the Internal Revenue Code of 1986, as amended. 


        "Just Cause Dismissal" means a termination of a Recipient's employment for any of the following reasons: (i) the Recipient violates
any reasonable rule or regulation of the Board, the Company's President or Chief Executive Officer or the Recipient's superiors that results in damage to the Company or any Affiliated Entity or which,
after written notice to do so, the Recipient fails to correct within a reasonable time not exceeding 15 days; (ii) any willful misconduct or gross negligence by the Recipient in the
responsibilities assigned to the Recipient; (iii) any willful failure to perform the Recipient's job as required to meet the objectives of the Company or any Affiliated Entity; (iv) any
wrongful conduct of a Recipient which has an adverse impact on the Company or any Affiliated Entity or which constitutes a misappropriation of assets of the Company or any Affiliated Entity;
(v) the Recipient's performing services for any other person or entity that competes with the Company while the Recipient is employed by the Company without the written approval of the Chief
Executive Officer of the Company; or (vi) any other conduct that the Administrator reasonably determines constitutes Just Cause for Dismissal; provided,
however, that if a Recipient is party to an employment agreement with the Company or any Affiliated Entity providing for just cause dismissal (or some comparable concept) of
Recipient from Recipient's employment with the Company or any Affiliated Entity, "Just Cause Dismissal" for purposes of this Plan will have the same meaning as ascribed thereto or to such comparable
concept in such employment agreement. 


        "Non-Employee Director" means a director of the Company who qualifies as a "Non-Employee Director" under
Rule 16b-3 under the Exchange Act. 


        "Non-Employee Director Option" means a right to purchase stock of the Company granted under  Section 7.1 of this Plan. 


        "Nonqualified Stock Option" means a Stock Option that is not an Incentive Stock Option. 


        "Other Stock-Based Benefits" means an Award granted under Section 6.10. 


18







 

        "Parent Corporation" means any Parent Corporation as defined in Section 424(e) of the IRC. 


        "Performance Award" means an Award under Section 6.2, payable in cash, Common Stock
or a combination thereof, that vests and becomes payable over a period of time upon attainment of preestablished, objective performance goals established in connection with the grant of the Award. For
this purpose, a preestablished, objective performance goal may include one or more of the following performance criteria: (a) cash flow, (b) earnings and earnings per share (including
earnings before interest, taxes, and amortization), (c) return on equity, (d) total Stockholder return, (e) return on capital, (f) return on assets or net assets,
(g) aggregate product price and other product measures; (h) market share or market penetration with respect to specific designated products and/or geographic areas; (i) revenues,
income or net income, (j) operating income or net operating income, (k) operating margin, (l) return on operating revenue, and (m) any other similar performance criteria. 



        "Performance-Based Compensation" means performance-based compensation as described in Section 162(m) of the IRC and the regulations
issued thereunder. If the amount of compensation an Eligible Person will receive under any Award is not based solely on an increase in the value of Common Stock after the date of grant or award, the
Administrator, in order to qualify an Award as performance-based compensation under Section 162(m) of the IRC, can condition the grant, award, vesting, or exercisability of such an Award on the
attainment of a preestablished, objective performance goal including, but not limited to, those preestablished, objective performance goals described in the definition of Performance Award above. 



        "Permanent Disability" means that the Recipient becomes physically or mentally incapacitated or disabled so that the Recipient is unable
to perform substantially the same services as the Recipient performed prior to incurring such incapacity or disability (the Company, at its option and expense, being entitled to retain a physician to
confirm the existence of such incapacity or disability, and the determination of such physician to be binding upon the Company and the Recipient), and such incapacity or disability continues for a
period of three consecutive months or six months in any 12-month period or such other period(s) as may be determined by the Administrator with respect to any Award,  provided, however, that for purposes
of determining the period during which an Incentive Stock Option may be exercised pursuant to  Section 6.1(e), Permanent Disability shall mean "permanent and total disability" as defined in
Section 22(e) of the IRC.
 


        "Person" means any person, entity or group, within the meaning of Section 13(d) or 14(d) of the Exchange
Act, but excluding (i) the Company and its subsidiaries, (ii) any employee stock ownership or other employee benefit plan maintained by the Company and (iii) an underwriter or
underwriting syndicate that has acquired the Company's securities solely in connection with a public offering thereof. 


        "Phantom Stock" means an Award granted under Section 6.9. 



        "Plan" means this 2001 Equity Incentive Plan of the Company. 


        "Plan Term" means the period during which this Plan remains in effect (commencing the Effective Date and ending on the Expiration Date). 


        "Purchase Price" means the purchase price (if any) to be paid by a Recipient for Restricted Stock as determined by the Administrator
(which price shall be at least equal to the minimum price required under applicable laws and regulations for the issuance of Common Stock which is nontransferable and subject to a substantial risk of
forfeiture until specific conditions are met). 


        "Recipient" means a person who has received an Award. 


        "Reorganization" means any merger, consolidation or other reorganization. 


19







 

        "Restricted Stock" means Common Stock that is the subject of an Award made under  Section 6.3 and that is nontransferable and subject to a substantial risk
of forfeiture until specific conditions are met, as set forth in this
Plan and in any statement evidencing the grant of such Award. 


        "Securities Act" means the Securities Act of 1933, as amended. 


        "Significant Stockholder" is an individual who, at the time a Stock Option is granted to such individual under this Plan, owns more than
ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any Parent Corporation or Subsidiary Corporation (after application of the attribution rules set forth
in Section 424(d) of the IRC). 


        "Stock Appreciation Right" or "SAR" means a right granted under  Section 6.4 to receive a payment that
is measured with reference to the amount by which the Fair Market Value of a specified number of shares of
Common Stock appreciates from a specified date, such as the date of grant of the SAR, to the date of exercise. 



        "Stock Bonus" means an issuance or delivery of unrestricted or restricted shares of Common Stock under  Section 6.7 as a bonus for services rendered or for
any other valid consideration under applicable law. 


        "Stock Payment" means a payment in shares of the Company's Common Stock under  Section 6.5 to replace all or any portion of the compensation or other payment
(other than base salary) that would otherwise become payable to
the Recipient in cash. 


        "Stock Option" means a right to purchase stock of the Company granted under  Section 6.1 or Section 7.1
of this Plan. 


        "Stock Sale" means a sale of Common Stock to an Eligible Person under Section 6.8. 



        "Subsidiary Corporation" means any Subsidiary Corporation as defined in Section 424(f) of the IRC. 


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Exhibit 10.1


AMENDED AND RESTATED QUIDEL CORPORATION 2001 EQUITY INCENTIVE PLAN (As Amended On May 12, 2009)