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EXHIBIT 10.21  

 
 

EMPLOYMENT AGREEMENT    
  

        This EMPLOYMENT AGREEMENT (this "Agreement" is made and entered into effective as of the 17th day of
September, 2001, by and among MAIN STREET BANKS, INC., a Georgia corporation (hereinafter, the "Company", and ROBERT D. MCDERMOTT (hereinafter,
"Executive"), to be effective as of the Effective Date, as defined in Section 1. 

 
 

BACKGROUND    
  

        WHEREAS, the Company desires to employ Executive and Executive is willing to provide services to the Company in
accordance with the terms and conditions hereinafter set forth; 

        NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

        1.    Effective Date. The effective date of this Agreement (the "Effective Date") will be September 17, 2001. 

        2.    Employment. Executive is hereby employed on the Effective Date as Executive Vice President and Chief Financial Officer of
the Company. In such capacity, Executive shall have such responsibilities commensurate with such positions as set forth in the bylaws of the Company and as shall be assigned to him by the Chief
Executive Officer or the Chief Operating Officer of the Company, or by the Board of Directors of the Company. Executive will report directly to the Chief Operating Officer of the Company. 

        3.    Employment Period. Unless earlier terminated herein in accordance with Section 6 hereof, Executive's employment
shall be for a two year term (the "Employment Period"), beginning on the Effective Date. Beginning on the second anniversary of the Effective Date and on each anniversary of the Effective Date, the
Employment Period shall, without further action by Executive or the Company, be extended by an additional one-year period; provided,  however, that either
party may, by notice to the other, cause the Employment Period to cease to extend automatically. Upon such notice, the Employment
Period shall terminate upon the expiration of the then-current term, including any prior extensions. If the Company causes the Employment Period to cease to extend automatically then, in
the absence of Cause (as defined in Section 6(b)), such action shall constitute a termination without Cause and Executive shall be entitled to severance as set forth in Section 7(a). 

        4.    Extent of Service. During the Employment Period, and excluding any periods of vacation to which Executive is entitled,
Executive agrees to devote his business time, attention, skill and efforts exclusively to the faithful performance of his duties hereunder; provided,  however, that it shall not be a violation of this Agreement for Executive to (i) devote reasonable periods of time to charitable and community
activities and, with the approval of the Company, industry or professional activities, and/or (ii) manage personal business interests and investments, so long as such activities do not
materially interfere with the performance of Executive's responsibilities under this Agreement. It is expressly understood and agreed that to the extent that any such activities have been conducted by
Executive prior to date of this Agreement, the continued conduct of such activities (or the conduct of activities similar in nature and scope thereto) subsequent to the Effective Date shall not
thereafter be deemed to interfere with the performance of Executive's responsibilities hereunder. 

        5.    Compensation and Benefits.

	(a)
	Base Salary. During each year of the Employment Period, the Company will pay to Executive annual base salary in the amount equal to
U.S. $185,000 ("Base Salary"), less normal withholdings, payable in equal monthly or more frequent installments as are customary under the Company's payroll practices from time to time. The
Compensation Committee of the Board of Directors of the Company shall review Executive's Base Salary annually and in its 

 

sole
discretion, subject to approval of the Board of Directors of the Company, may increase Executive's Base Salary from year to year; provided that annual increases of at least 3%, intended to
approximate cost of living increases, shall be automatic. The annual review of Executive's salary by the Board will consider, among other things, Executive's own performance and the performance of the
Company and Main Street Bank ("MSB"), as well as any recommendations of an outside consulting firm that may be engaged by the Company, from time to time, to evaluate management compensation. 

	(b)
	Incentive, Savings and Retirement Plans. During the Employment Period, Executive shall be entitled to participate in all incentive,
savings and retirement plans, practices, policies and programs applicable generally to senior executive officers of the Company ("Peer Executives"), and on the same basis as such Peer Executives.

	(c)
	Welfare Benefit Plans. During the Employment Period, Executive and Executive's family shall be eligible for participation in, and shall
receive all benefits under, the welfare benefit plans, practices, policies and programs provided by the Company (including, without limitation, medical, prescription, dental, disability, employee
life, group life, accidental death and travel accident insurance plans and programs) ("Welfare Plans") to the extent applicable generally to Peer Executives.

	(d)
	Expenses. During the Employment Period, Executive shall be entitled to receive prompt reimbursement for all reasonable expenses
incurred by Executive in accordance with the policies, practices and procedures of the Company to the extent applicable generally to Peer Executives.

	(e)
	Fringe Benefits. During the Employment Period, Executive shall be entitled to fringe benefits in accordance with the plans, practices,
programs and policies of the Company in effect for Peer Executives. Without limiting the foregoing, during the Employment Period, Executive shall be provided a car allowance or a Company-owned car of
a model appropriate to his position, as determined by the Compensation Committee of the Board of Directors of the Company. 

        6.    Termination of Agreement.

	(a)
	Death, Retirement or Disability. Executive's employment shall terminate automatically upon Executive's death or Retirement during the
Employment Period. For purposes of this Agreement, "Retirement" shall mean normal retirement as defined in the Company's then-current retirement plan, or if there is no such retiremenplan,
"Retirement" shall mean voluntary termination after age 65 with ten years of service. If the Company determines in good faith that the Disability of Executive has occurred during the Employment Period
(pursuant to the definition of Disability set forth below), it may give to Executive written notice of its intention to terminate Executive's employment. In such event, Executive's employment shall
terminate effective on the 30th day after receipt of such written notice by Executive (the "Disability Effective Date"), provided that, within the 30 days after such receipt, Executive shall
not have returned to full-time performance of Executive's duties. For purposes of this Agreement, "Disability" shall mean the inability of Executive, as determined by the Board, to
substantially perform the essential functions of his regular duties and responsibilities, with or without reasonable accommodation, due to a medically determinable physical or mental illness which has
lasted (or can reasonably be expected to last) for a period of six consecutive months. At the request of Executive or his personal representative, the Board's determination that the Disability of
Executive has occurred shall be certified by two physicians mutually agreed upon by Executive, or his personal representative, and the Company. Failing such independent certification (if so requested
by Executive), Executive's 

2

 

termination shall be deemed a termination by the Company without Cause and not a termination by reason of his Disability. 

	(b)
	Termination by the Company. The Company may terminate Executive's employment during the Employment Period with or without Cause. For
purposes of this Agreement, "Cause" shall mean:

	(i)
	the
willful and continued failure of Executive to perform substantially Executive's duties with the Company (other than any such failure resulting from
incapacity due to physical or mental illness, and specifically excluding any failure by Executive, after reasonable efforts, to meet performance expectations), after a written demand for substantial
performance is delivered to Executive by the Chief Executive Officer, the Chief Operating Officer or the Board of Directors of the Company which specifically identifies the manner in which such
officer or the Board believes that Executive has not substantially performed Executive's duties, or

	(ii)
	the
willful engaging by Executive in illegal conduct or gross misconduct which is materially and demonstrably injurious to MSB or the Company; or

	(iii)
	a
requirement by any state or federal authority regulating the Company or MSB that Executive be removed from his office. 

        For
purposes of this provision, no act or failure to act, on the part of Executive, shall be considered "willful" unless it is done, or omitted to be done, by Executive in bad faith or
without reasonable belief that Executive's action or omission was in the best interests of MSB or the Company and its shareholders and subsidiaries. Any act, or failure to act, based upon authority
given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by Executive in good
faith and in the best interests of MSB and the Company, its shareholders and subsidiaries. The cessation of employment of Executive under subparagraph (i) or (ii) above shall not be
deemed to be for Cause unless and until there shall have been delivered to Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-fourths of the entire membership
of the Board of Directors of the Company at a meeting of such Board called and held for such purpose (after reasonable notice is provided to Executive and Executive is given an opportunity, together
with counsel, to be heard before such Board), finding that, in the good faith opinion of such Board, Executive is guilty of the conduct described in subparagraph (i) or (ii) above, and
specifying the particulars thereof in detail. 

	(c)
	Termination by Executive. Executive's employment may be terminated by Executive for "Good Reason" after a "Change in Control" as
defined below. For purposes of this Agreement, "Good Reason" shall mean:

	(i)
	without
the written consent of Executive, a change in Executive's status, title, position or responsibilities (including reporting responsibilities)
which, in Executive's reasonable judgment, represents an adverse change from his status, title, position or responsibilities as in effect at the Effective Date or, if greater, at any time thereafter;
the assignment to Executive of any duties or responsibilities which, in Executive's reasonable judgment, are inconsistent with his status, title, position or responsibilities as in effect at the
Effective Date or, if greater, at any time thereafter; or any other change in condition or circumstances that in Executive's reasonable judgment makes it materially more difficult for Executive to
carry out the duties and responsibilities of his then-existing office; provided that Good Reason under this subparagraph (i) excludes an isolated, insubstantial and inadvertent
action not taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof given by Executive;

	(ii)
	a
reduction, without the written consent of Executive, in Executive's Base Salary as in effect on the Effective Date or as the same may be increased
from time to time, or any failure to 

3

 

pay
Executive any compensation or benefits to which he is entitled within five (5) days of the date due; 

	(iii)
	the
failure by the Company (a) to continue in effect (without reduction in benefit level and/or reward opportunities) any compensation or
employee benefit plan in which Executive participated as of the Effective Date, or at any time thereafter, that is material to Executive's total compensation, unless an equitable arrangement (embodied
in an ongoing substitute or alternative plan) has been made with respect to such plan, or (b) to continue Executive's participation therein (or in such substitute or alternative plan) on a
basis not materially less favorable, both in terms of the amount of benefits provided and the level of Executive's participation therein relative to other participants; or the Company's requiring
Executive, without his consent, to be based at any office or location other than in the Atlanta, Georgia metropolitan area;

	(v)
	the
insolvency or the filing by any party, including the Company or any of its subsidiaries, of a petition for bankruptcy of the Company or any such
subsidiary, which petition is not dismissed within sixty (60) days;

	(vi)
	any
failure by the Company to comply with and satisfy Section 14(c) of this Agreement;

	(vii)
	any
purported termination by the Company of Executive's employment otherwise than as expressly permitted by this Agreement; or

	(viii)
	the
material breach by the Company of any provision of this Agreement. 

        Good
Reason shall not include Executive's death or Disability. Executive's continued employment shall not constitute consent to, or a waiver of rights with respect to, any circumstance
constituting Good Reason hereunder. 

        For
the purposes of this Agreement, a "Change in Control" shall mean the occurrence of any of the following events: 

	(i)
	individuals
who, at the Effective Date, constitute the Board of Directors of the Company (the "Incumbent Directors") cease for any reason to constitute
at least a majority of the Board, provided that any person becoming a director after the Effective Date and whose election or nomination for election was approved by a vote of at lease a majority of
the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written
objection to such nomination) shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the
Company as a result of an actual or threatened election contest (as described in Rule 14a-11 under the 1934 Act ("Election Contest" )) or other actual or threatened solicitation of
proxies or consents by or on behalf of any "person" (as such term is defined in Section 3(a)(9) of the 1934 Act and as used in Section 13(d)(3) and 14(d)(2) of the 1934 Act) other than
the Board ("Proxy Contest"), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director;

	(ii)
	any
person is or becomes a "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of securities of
the Company representing 25% or more of the combined voting power of the Company's then outstanding securities eligible to vote for the election of the Board (the "Company Voting Securities");  provided, however,
 that the event described in this paragraph (ii) shall not be deemed to be a Change in Control of the Company by virtue of any
of the following acquisitions: (A) any acquisition by a person who is on the Effective Date the beneficial owner of 25% or more of the outstanding Company Voting Securities, (B) an
acquisition by the Company which reduces the number of Company Voting Securities 

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outstanding
and thereby results in any person acquiring beneficial ownership of more than 25% of the outstanding Company Voting Securities; provided,
that if after such acquisition by the Company such person becomes the beneficial owner of additional Company Voting Securities that increases the percentage of outstanding
Company Voting Securities beneficially owned by such person, a Change in Control of the Company shall then occur, (C) an acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any parent or subsidiary, (D) an acquisition by an underwriter temporarily holding securities pursuant to an offering of such securities, (E) an acquisition
pursuant to a Non-Qualifying Transaction (as defined in paragraph iii(C) below), or (F) a transaction (other than the one described in paragraph iii(C) below) in which
Company Voting Securities are acquired from the Company, if a majority of the Incumbent Directors approve a resolution providing expressly that the acquisition pursuant to this clause (F) does
not constitute a Change in Control of the Company under this paragraph (ii); 

	(iii)
	the
consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company
that requires the approval of the Company's stockholders, whether for such transaction or the issuance of securities in the transaction (a "Reorganization"), or the sale or other disposition of all or
substantially all of the Company's assets to an entity that is not an affiliate of the Company (a "Sale"), unless immediately following such Reorganization or Sale: (A) more than 50% of the
total voting power of (x) the corporation resulting from such Reorganization or the corporation which has acquired all or substantially all of the assets of the Company (in either case, the
"Surviving Corporation"), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors
of the Surviving Corporation (the "Parent Corporation"), is represented by the Company Voting Securities that were outstanding immediately prior to such Reorganization or Sale (or, if applicable, is
represented by shares into which such Company Voting Securities were converted pursuant to such Reorganization or Sale), and such voting power among the holders thereof is in substantially the same
proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Reorganization or Sale, and (B) no person (other than (x) the Company,
(y) any employee benefit plan (or related trust) sponsored or maintained by the Surviving Corporation or the Parent Corporation, or (z) a person who immediately prior to the
Reorganization or Sale was the beneficial owner of 25% or more of the outstanding Company Voting Securities) is the beneficial owner, directly or indirectly, of 25% or more of the total voting power
of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation), and (C) at least a majority of the
members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Reorganization or Sale were Incumbent
Directors at the time of the Board's approval of the execution of the initial agreement providing for such Reorganization or Sale (any Reorganization or Sale which satisfies all of the criteria
specified in (A), (B) and (C) above shall be deemed to be a "Non-Qualifying Transaction"). 

        (d)    Notice of Termination. Any termination by the Company for Cause, or by Executive for Good Reason shall be communicated by
Notice of Termination to the other party hereto given in accordance with Section 15(f) of this Agreement. For purposes of this Agreement, a "Notice of Termination" means a written notice which
(i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of Executive's employment under the provision so indicated and (iii) specifies the termination date. If a dispute exists concerning the provisions of this
Agreement that apply to Executive's termination of employment, the parties shall pursue the resolution of such dispute with reasonable diligence. Within five (5) days of such a resolution, any
party owing any payments 

5

 

pursuant to the provisions of this Agreement shall make all such payments together with interest accrued thereon at the rate provided in Section 1274(b)(2)(B) of the Internal Revenue Code of
1986, as amended (the "Code"). 

        (e)    Date of Termination. "Date of Termination" means (i) if Executive;s employment is terminated other than by reason
of death or Disability, the date of receipt of the Notice of Termination, or any later date specified therein, or (ii) if Executive's employment is terminated by reason of death or Disability,
the Date of Termination will be the date of death or the Disability Effective Date, as the case may be. If Executive's employment is terminated because of the Company's action to stop the automatic
extension of the Employment Period other than for Cause then the Date of Termination shall be the date of expiration of the then-current term of the Employment Period. 

        7.    Obligations of the Company upon Termination.

        (a)    Termination by Executive for Good Reason After a Change in Control; Termination by the Company Other Than for Cause; Cessation of Automatic
Extension by Company Other Than for Cause. If, during the Employment Period, the Company shall terminate Executive's employment other than for Cause, or Executive shall
terminate employment for Good Reason after a Change in Control, or the Company shall stop the automatic extension of the Employment Period other than for Cause, then: 

	(i)
	the
Company shall pay to Executive in a lump sum in cash within 30 days after the Date of Termination the aggregate of the following amounts:

	A.
	the
sum of (1) Executive's Base Salary through the Date of Termination to the extent not theretofore paid, (2) the product of
(x) Executive's target annual bonus for the year in which the Date of Termination occurred (the "Target Annual Bonus") and (y) a fraction, the numerator of which is the number of days in
the current fiscal year through the Date of Termination, and the denominator of which is 365, and (3) any accrued vacation pay to the extent not theretofore paid, and (4) unless
Executive has elected a different payout date in a prior deferral election, any compensation previously deferred by Executive (together with any accrued interest or earnings thereon) to the extent not
theretofore paid (the sum of the amounts described in clauses (1), (2), (3) and (4) shall be hereinafter referred to as the "Accrued Obligations");

	B.
	the
amount equal to two times the sum of (1) Executive's Base Salary in effect as of the Date of Termination, and (2) the Target Annual
Bonus; 

	(ii)
	for
two years after the Date of Termination, or such longer period as may be provided by the terms of the appropriate plan, program, practice or policy,
the Company shall continue benefits to Executive and/or Executives family at least equal to those which would have been provided to them in accordance with the Welfare Plans described in
Section 5(c) of this Agreement if Executives employment had not been terminated or, if more favorable to Executive, as in effect generally at any time thereafter with respect to other Peer
Executives and their families, provided, however, that if Executive becomes re-employed with another employer and is eligible to receive medical or other welfare benefits under another
employer provided plan, the medical and other welfare benefits described herein shall be secondary to those provided under such other plan during such applicable period of eligibility; and

	(iii)
	all
of Executive's outstanding stock options and other incentive awards from the Company in the nature of rights that may be exercised shall become
fully exercisable and all restrictions on Executive's outstanding awards of restricted stock shall lapse; and

	(iv)
	to
the extent not theretofore paid or provided, the Company shall timely pay or provide to Executive any other amounts or benefits required to be paid
or provided or which Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the 

6

 

Company
(such other amounts and benefits shall be hereinafter referred to as the "Other Benefits"). 

        (b)    Death; Disability or Retirement. If Executive's employment is terminated by reason of Executive's death, Disability or
Retirement during the Employment Period, this Agreement shall terminate without further obligations to Executive or his legal representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits. Accrued Obligations shall be paid to Executives estate or beneficiary, as applicable, in a lump sum in cash within 30 days of
the Date of Termination. With respect to the provision of Other Benefits, the term Other Benefits as used in this Section 7(b) shall include, without limitation, and Executive's estate and/or
beneficiaries shall be entitled to receive, benefits under such plans, programs, practices and policies relating to death, disability or retirement benefits, if any, as are applicable to Executive on
the Date of Termination. 

        (c)    Termination for Cause or Termination by Executive Except for Good Reason After a Change in Control. If Executive's
employment shall be terminated for Cause during the Employment Period, or if Executive voluntarily terminates employment during the Employment Period (except for Good Reason after a Change in
Control), this Agreement shall terminate without further obligations to Executive, other than for payment of Accrued Obligations (excluding the pro-rata bonus described in clause 2
of Section 7(a)(i)(A)) and the timely payment or provision of Other Benefits. 

        8.    Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit Executive's continuing or future
participation in any plan, program, policy or practice provided by the Company and for which Executive may qualify, nor, subject to Section 15(d), shall anything herein limit or otherwise
affect such rights as Executive may have under any contract or agreement with the Company. Amounts which are vested benefits or which Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of its affiliated companies at or subsequent to the Date of Termination shall be payable in accordance with such plan,
policy, practice or program or contract or agreement except as explicitly modified by this Agreement. 

        9.    Certain Additional Payments by the Company.

	(a)
	Anything
in this Agreement to the contrary notwithstanding and except as set forth below, in the event it shall be determined that any payment or
distribution by the Company to or for the benefit of Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without
regard to any additional payments required under this Section 9) (a "Payment") would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties are
incurred by Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the "Excise Tax"), then
Executive shall be entitled to receive an additional payment (a "Gross-Up Payment") in an amount such that after payment by Executive of all taxes (including any interest or penalties
imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect there to) and Excise Tax imposed upon the Gross-Up
Payment, Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.

	(b)
	All
determinations required to be made under this Section 9, including whether and when a Gross-Up Payment is required and the amount
of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by a certified public accounting firm selected by Executive and reasonably
acceptable to the Company as may be designated by Executive (the "Accounting Firm") which shall provide detailed supporting calculations both to the Company and Executive within 15 business days of
the receipt of notice from Executive that there has been a Payment, or such earlier time as is reasonably requested by the Company. All fees and expenses of the Accounting Firm shall be 

7

 

borne
solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by the Company to Executive within five days of the receipt of the
Accounting Firm's determination. Any determination by the Accounting Firm shall be binding upon the Company and Executive. As a result of the uncertainty in the application of Section 4999 of
the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made
("Underpayment"), consistent with the calculations required to be made hereunder. In the event that Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of Executive. 

        10.    Costs of Enforcement. In any action taken in good faith relating to the enforcement of this Agreement or any provision
herein, Executive shall be entitled to be paid any and all costs and expenses incurred by him in enforcing or establishing his rights thereunder, including, without limitation, reasonable attorneys'
fees, whether suit be brought or not, and whether or not incurred in trial, bankruptcy or appellate proceedings. 

        11.    Representations and Warranties. Executive hereby represents and warrants to the Company that Executive is not a party to,
or otherwise subject to, any covenant not to compete with any person or entity, and Executive's execution of this Agreement and performance of his obligations hereunder will not violate the terms or
conditions of any contract or obligation, written or oral, between Executive and any other person or entity. 

        12.    Restrictions on Conduct of Executive.

	(a)
	General. Executive and the Company understand and agree that the purpose of the provisions of this
Section 12 is to protect legitimate business interests of the Company, as more fully described below, and
is not intended to eliminate Executive's post-employment competition with the Company per se, nor is it intended to impair or infringe upon
Executive's right to work, earn a living, or acquire and possess property from the fruits of his labor. Executive hereby acknowledges that the post-employment restrictions set forth in
this Section 12 are reasonable and that they do not, and will not, unduly impair his ability to earn a living after the termination of this Agreement. Therefore, subject to the limitations of
reasonableness imposed by law, Executive shall be subject to the restrictions set forth in this Section 12.

	(b)
	Definitions. The following capitalized terms used in this Section 12 shall have the meanings
assigned to them below, which definitions shall apply to both the singular and the plural forms of such terms: 

"Competitive Position" means any employment with a Competitor in which Executive will use or is likely to use any Confidential Information or Trade
Secrets, or in which Executive has duties for such Competitor that relate to Competitive Services and that are the same or similar to those services actually performed by Executive for the Company; 

"Competitive Services" means the provision of banking products and services similar in scope to those provided by the Company and its subsidiaries as of
the Effective Date. 

"Competitor" means any Person engaged, wholly or in part, in Competitive Services. 

"Confidential Information" means all information regarding the Company, its activities, business or clients that is the subject of reasonable efforts by
the Company to maintain its confidentiality and that is not generally disclosed by practice or authority to persons not employed by the Company, but that does not rise to the level of a Trade Secret.
"Confidential Information" shall include, but is not limited to, financial plans and data concerning the 

8

 

Company; management planning information; business plans; operational methods; market studies; marketing plans or strategies; product development techniques or plans; customer lists; details of
customer contracts; current and anticipated customer requirements; past, current and planned research and development; business acquisition plans; and new personnel acquisition plans. "Confidential
Information" shall not include information that has become generally available to the public by the act of one who has the right to disclose such information without violating any right or privilege
of the Company. This definition shall not limit any definition of "confidential information" or any equivalent term under state or federal law. 

"Determination Date" means the date of termination of Executive's employment with the Company for any reason whatsoever or any earlier date (during the
Employment Period) of an alleged breach of the Restrictive Covenants by Executive. 

"Person" means any individual or any corporation, partnership, joint venture, limited liability company, association or other entity or enterprise. 

"Principal or Representative" means a principal, owner, partner, shareholder, joint venturer, investor, member, trustee, director, officer, manager,
employee, agent, representative or consultant. 

"Protected Customers" means any Person to whom the Company has sold its products or services or solicited to sell its products or services during the
twelve (12) months prior to the Determination Date. 

"Protected Employees" means employees of the Company who were employed by the Company at any time within six (6) months prior to the
Determination Date. 

"Restricted Period" means the Employment Period and a period extending two (2) years from the Date of Termination. 

"Restricted Territory" means the areas within a 25 mile radius of each banking office of the Company or its subsidiaries immediately after the Effective
Date. 

"Restrictive Covenants" means the restrictive covenants contained in Section 9(c) hereof. 

"Trade Secret" means all information, without regard to form, including, but not limited to, technical or nontechnical data, a formula, a pattern, a
compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, distribution lists or a list of actual or potential customers,
advertisers or suppliers which is not commonly known by or available to the public and which information: (A) derives economic value, actual or potential, from not being generally known to, and
not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (B) is the subject of efforts that are reasonable under the
circumstances to maintain its secrecy. Without limiting the foregoing, Trade Secret means any item of confidential information that constitutes a "trade secret(s)" under the common law or statutory
law of the State of Georgia. 

	(c)
	Restrictive Covenants.

	(i)
	Restriction on Disclosure and Use of Confidential Information and Trade Secrets. Executive understands
and agrees that the Confidential Information and Trade Secrets constitute valuable assets of the Company and its affiliated entities, and may not be converted to Executive's own use. Accordingly,
Executive hereby agrees that Executive shall not, directly or indirectly, at any time during the Restricted Period reveal, divulge, or disclose to any Person not expressly authorized by the Company
any Confidential Information, and Executive shall 

9

 

not,
directly or indirectly, at any time during the Restricted Period use or make use of any Confidential Information in connection with any business activity other than that of the Company.
Throughout the term of this Agreement and at all times after the date that this Agreement terminates for any reason, Executive shall not directly or indirectly transmit or disclose any Trade Secret of
the Company to any Person, and shall not make use of any such Trade Secret, directly or indirectly, for himself or for others, without the prior written consent of the Company. The parties acknowledge
and agree that this Agreement is not intended to, and does not, alter either the Company's rights or Executive's obligations under any state or federal statutory or common law regarding trade secrets
and unfair trade practices. 

        Anything
herein to the contrary notwithstanding, Executive shall not be restricted from disclosing or using Confidential Information that is required to be disclosed by law, court order
or other legal process; provided, however, that in the event disclosure is required by law, Executive
shall provide the Company with prompt notice of such requirement so that the Company may seek an appropriate protective order prior to any such required disclosure by Executive. 

	(ii)
	Nonsolicitation of Protected Employees. Executive understands and agrees that the relationship between
the Company and each of its Protected Employees constitutes a valuable asset of the Company and may not be converted to Executive's own use. Accordingly, Executive hereby agrees that during the
Restricted Period Executive shall not directly or indirectly on Executive's own behalf or as a Principal or Representative of any Person or otherwise solicit or induce any Protected Employee to
terminate his or her employment relationship with the Company or to enter into employment with any other Person.

	(iii)
	Restriction on Relationships with Protected Customers. Executive understands and agrees that the
relationship between the Company and each of its Protected Customers constitutes a valuable asset of the Company and may not be converted to Executive's own use. Accordingly, Executive hereby agrees
that, during the Restricted Period, Executive shall not, without the prior written consent of the Company, directly or indirectly, on Executive's own behalf or as a Principal or Representative of any
Person, solicit, divert, take away or attempt to solicit, divert or take away a Protected Customer for the purpose of providing or selling Competitive Services;  provided, however, that the prohibition of this covenant shall apply only to Protected Customers with
whom Executive had Material Contact on the Company's behalf during the twelve (12) months immediately preceding the termination of his employment hereunder. For purposes of this Agreement,
Executive had "Material Contact" with a Protected Customer if (a) he had business dealings with the Protected Customer on the Company's behalf; (b) he was responsible for supervising or
coordinating the dealings between the Company and the Protected Customer; or (c) he obtained Trade Secrets or Confidential Information about the customer as a result of his association with the
Company.

	(iv)
	Noncompetition with the Company. The parties acknowledge: (A) that Executive's services under
this Agreement require special expertise and talent in the provision of Competitive Services and that Executive will have substantial contacts with customers of the Company; (B) that pursuant
to this Agreement, Executive will be placed in a position of trust and responsibility and he will have access to a substantial amount of Confidential Information and Trade Secrets and that the Company
is placing him in such position and giving him access to such information in reliance upon his agreement not to compete with the Company during the Restricted Period; (C) that due to his
management duties, Executive will be the repository of a substantial portion of the goodwill of the Company and would have an unfair advantage in competing with the Company; (D) that due to
Executive's special experience and talent, the loss of Executive's services to the Company under this Agreement cannot reasonably or adequately be compensated solely by damages in an action at law;
(E) that Executive is capable of competing with the Company; and (F) that Executive is capable of obtaining 

10

 

gainful,
lucrative and desirable employment that does not violate the restrictions contained in this Agreement. In consideration of the compensation and benefits being paid and to be paid by the
Company to Executive hereunder, Executive hereby agrees that, during the Restricted Period, Executive will not, without prior written consent of the Company, directly or indirectly seek or obtain a
Competitive Position in the Restricted Territory with a Competitor; provided, however, that the provisions of this Agreement shall not be deemed to
prohibit the ownership by Executive of any securities of the Company or its affiliated entities or not more than five percent (5%) of any class of securities of any corporation having a class of
securities registered pursuant to the Securities Exchange Act of 1934, as amended. 

        (d)    Enforcement of Restrictive Covenants.

	(i)
	Rights and Remedies Upon Breach. In the event Executive breaches, or threatens to commit a breach of,
any of the provisions of the Restrictive Covenants, the Company shall have the right and remedy to enjoin, preliminarily and permanently, Executive from violating or threatening to violate the
Restrictive Covenants and to have the Restrictive Covenants specifically enforced by any court of competent jurisdiction, it being agreed that any breach or threatened breach of the Restrictive
Covenants would cause irreparable injury to the Company and that money damages would not provide an adequate remedy to the Company. Such right and remedy shall be in addition to, and not in lieu of,
any other rights and remedies available to the Company at law or in equity.

	(ii)
	Severability of Covenants. Executive acknowledges and agrees that the Restrictive Covenants are
reasonable and valid in time and scope and in all other respects. The covenants set forth in this Agreement shall be considered and construed as separate and independent covenants. Should any part or
provision of any covenant be held invalid, void or unenforceable in any court of competent jurisdiction, such invalidity, voidness or unenforceability shall not render invalid, void or unenforceable
any other part or provision of this Agreement. If any portion of the foregoing provisions is found to be invalid or unenforceable by a court of competent jurisdiction because its duration, the
territory, the definition of activities or the definition of information covered is considered to be invalid or unreasonable in scope, the invalid or unreasonable term shall be redefined, or a new
enforceable term provided, such that the intent of the Company and Executive in agreeing to the provisions of this
Agreement will not be impaired and the provision in question shall be enforceable to the fullest extent of the applicable laws. 

        13.    Arbitration. Any claim or dispute arising under this Agreement shall be subject to arbitration, and prior to commencing
any court action, the parties agree that they shall arbitrate all controversies. The arbitration shall be conducted in Atlanta, Georgia, in accordance with the Employment Dispute Rules of the American
Arbitration Association and the Federal Arbitration Act, 9 U.S.C. et. seq. The arbitrator(s) shall be authorized to award both liquidated and actual
damages, in addition to injunctive relief, but no punitive damages. Such an award shall be binding and conclusive upon the parties hereto, subject to 9 U.S.C. 10. Each party shall have the right to
have the award made the judgment of a court of competent jurisdiction. 

        14.    Assignment and Successors.

	(a)
	This
Agreement is personal to Executive and without the prior written consent of the Company shall not be assignable by Executive otherwise than by will
or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive's legal representatives.

	(b)
	This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns. 

11

 

	(c)
	The
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such
succession had taken place. 

        15.    Miscellaneous.

	(a)
	Waiver. Failure of any party to insist, in one or more instances, on performance by the other in strict
accordance with the terms and conditions of this Agreement shall not be deemed a waiver or relinquishment of any right granted in this Agreement or of the future performance of any such term or
condition or of any other term or condition of this Agreement, unless such waiver is contained in a writing signed by the party making the waiver.

	(b)
	Severability. If any provision or covenant, or any part thereof, of this Agreement should be held by any
court to be invalid, illegal or unenforceable, either in whole or in part, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of the remaining
provisions or covenants, or any part thereof, of this Agreement, all of which shall remain in full force and effect.

	(c)
	Other Agents. Nothing in this Agreement is to be interpreted as limiting the Company from employing other
personnel on such terms and conditions as may be satisfactory to it.

	(d)
	Entire Agreement. Except as provided herein, this Agreement contains the entire agreement between the
Company and Executive with respect to the subject matter hereof and, from and after the Effective Date, this Agreement shall supersede any other agreement between the parties with respect to the
subject matter hereof.

	(e)
	Governing Law. Except to the extent preempted by federal law, and without regard to conflict of laws
principles, the laws of the State of Georgia shall govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise.

	(f)
	Notices. All notices, requests, demands and other communications required or permitted hereunder shall
be in writing and shall be deemed to have been duly given if delivered or three days after mailing if mailed, first class, certified mail, postage prepaid: 

	 	 	 
	To Company:	 	Main Street Banks, Inc.

Edward C. Milligan, President and CEO

676 Chastain Road Kennesaw, Georgia 30144
	

To Executive:	
 	

Robert D. McDermott

1121 Floyd Street

Covington, Georgia 30014

Any
party may change the address to which notices, requests, demands and other communications shall be delivered or mailed by giving notice thereof to the other party in the same manner provided
herein. 

	(g)
	Amendments and Modifications. This Agreement may be amended or modified only by a writing signed by both
parties hereto, which makes specific reference to this Agreement.

	(h)
	Construction. Each party and his or its counsel have reviewed this Agreement and have been provided the
opportunity to revise this Agreement and accordingly, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement. Instead, the language of all parts of this Agreement shall be construed as a whole, and according to its fair meaning, and not strictly for or against any party. 

12

 

        IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement as of the date first above written. 

	 	 	MAIN STREET BANKS, INC.
	

 	
 	

By:	
 	

/s/  EDWARD C. MILLIGAN      
 Edward C. Milligan
 President and CEO
	

 	
 	
EXECUTIVE:
	

 	
 	

By:	
 	

/s/  ROBERT D. MCDERMOTT      
 Robert D. McDermott

13

QuickLinks

EMPLOYMENT AGREEMENT

BACKGROUND<Page>

                                  AMENDMENT #1

                                       TO

                    EMPLOYMENT AGREEMENT AND OPTION AGREEMENT

         THIS AMENDMENT #1 TO EMPLOYMENT AGREEMENT AND OPTION AGREEMENT (this
"Amendment") is made and entered into as of August 13, 2001 (the "Effective
Date") by and between QUIDEL CORPORATION, a Delaware corporation (the
"Company"), and ANDRE DE BRUIN, an individual ("de Bruin").

                                   BACKGROUND

         A.       The Company and de Bruin previously entered into that certain
Employment Agreement (the "Employment Agreement") and that certain Stock Option
Agreement (the "Option Agreement"), each dated June 9, 1998.

         B.       The purpose and intent of this Amendment is to amend certain
terms of the Employment Agreement, effective as of the Effective Date hereof, as
a result of changes in de Bruin's title, duties and compensation and in the
context of his continuing employment with the Company.

         C.       It is further intended by the parties that, as long as de
Bruin continues to be employed by the Company as provided herein, he shall
continue to vest as to the options granted under the Option Agreement and shall
be deemed for all other purposes under the Option Agreement to be actively
employed by the Company.

                                    AGREEMENT

         1.       EMPLOYMENT. Section 1 of the Employment Agreement is hereby
deleted and replaced with the following:

                  "THE COMPANY HEREBY ENGAGES AND EMPLOYS DE BRUIN AS ITS
                  EXECUTIVE CHAIRMAN OF THE BOARD OF DIRECTORS AND DE BRUIN
                  ACCEPTS SUCH EMPLOYMENT AND POSITION UPON THE TERMS AND
                  SUBJECT TO THE CONDITIONS SET FORTH HEREIN."

         2.       DUTIES AND RESPONSIBILITIES. The first three (3) sentences of
Section 2 of the Employment Agreement are hereby deleted and are replaced with
the following, it being the intent of the parties that the fourth (4th) sentence
of such Section 2 shall remain unamended and in full force and effect:

                  "IN CONNECTION WITH THE PROJECTS AND TASKS TO BE PERFORMED BY
                  DE BRUIN IN HIS EXECUTIVE CAPACITY, DE BRUIN SHALL REPORT
                  DIRECTLY TO THE COMPANY'S CHIEF EXECUTIVE OFFICER (THE "CEO")
                  AND WILL PRIMARILY WORK OUT OF LOCATIONS AND FROM FACILITIES
                  SELECTED BY DE BRUIN THAT ARE NEITHER OWNED NOR LEASED BY THE
                  COMPANY. DURING THE TERM OF THIS AGREEMENT, DE BRUIN SHALL
                  PERFORM SUCH DUTIES AND FUNCTIONS AS ARE

<Page>

                  CONSISTENT WITH HIS ROLE AS EXECUTIVE CHAIRMAN AND AS MAY FROM
                  TIME TO TIME BE ASSIGNED TO HIM BY THE CEO. FROM THE EFFECTIVE
                  DATE UNTIL THE SIX-MONTH ANNIVERSARY OF THE EFFECTIVE DATE, DE
                  BRUIN SHALL MAKE HIMSELF AVAILABLE TO WORK AN AGGREGATE OF 520
                  HOURS IN HIS EXECUTIVE CAPACITY FOR QUIDEL (I.E., AN AVERAGE
                  OF APPROXIMATELY 20 HOURS PER WEEK, IT BEING UNDERSTOOD THAT
                  THE SPECIFIC LEVEL OF WORK EACH GIVEN WEEK MAY VARY WIDELY).
                  FROM THE SIX-MONTH ANNIVERSARY OF THE EFFECTIVE DATE UNTIL THE
                  ONE-YEAR ANNIVERSARY OF THE EFFECTIVE DATE, DE BRUIN SHALL
                  MAKE HIMSELF AVAILABLE TO WORK AN AGGREGATE OF 260 HOURS IN
                  HIS EXECUTIVE CAPACITY FOR QUIDEL (I.E., AN AVERAGE OF 10
                  HOURS PER WEEK, AGAIN WITH THE UNDERSTANDING THAT THE SPECIFIC
                  LEVEL OF WORK EACH GIVEN WEEK MAY VARY WIDELY). AFTER THE
                  ONE-YEAR ANNIVERSARY OF THE EFFECTIVE DATE AND UNTIL THIS
                  AGREEMENT IS TERMINATED AS PROVIDED HEREIN, DE BRUIN AGREES TO
                  MAKE HIMSELF AVAILABLE TO WORK IN HIS EXECUTIVE CAPACITY FOR
                  QUIDEL AN AVERAGE OF TEN (10) HOURS PER WEEK."

         3.       COMPENSATION. Section 3(a) of the Employment Agreement is
hereby deleted in its entirety and replaced with the following:

                           "(a)     SALARY. FROM THE EFFECTIVE DATE UNTIL THE
                  SIX-MONTH ANNIVERSARY OF THE EFFECTIVE DATE, THE COMPANY
                  AGREES TO PAY DE BRUIN A SALARY EQUAL TO $16,667 PER MONTH
                  (I.E., 50% OF HIS MONTHLY SALARY RATE IMMEDIATELY PRIOR TO THE
                  EFFECTIVE DATE), PAYABLE IN THE COMPANY'S NORMAL CYCLE, LESS
                  ALL AMOUNTS REQUIRED BY LAW TO BE WITHHELD OR DEDUCTED. FROM
                  THE SIX-MONTH ANNIVERSARY OF THE EFFECTIVE DATE UNTIL
                  TERMINATION OF THIS AGREEMENT, THE COMPANY AGREES TO PAY DE
                  BRUIN A SALARY EQUAL TO $8,334 PER MONTH (I.E., 25% OF HIS
                  MONTHLY SALARY RATE IMMEDIATELY PRIOR TO THE EFFECTIVE DATE),
                  AGAIN IN THE NORMAL CYCLE AND LESS ALL AMOUNTS REQUIRED BY LAW
                  TO BE WITHHELD OR DEDUCTED. DURING THE TERM OF THIS AGREEMENT,
                  DE BRUIN SHALL NOT BE ENTITLED TO ANY ADDITIONAL COMPENSATION
                  FOR HIS BOARD DUTIES AS CHAIRMAN OF THE BOARD OF DIRECTORS OR
                  AS A RESULT OF HIS ROLE AS AN ACTIVE DIRECTOR OF THE COMPANY.
                  AFTER TERMINATION OF THIS AGREEMENT, AND FOR AS LONG AS DE
                  BRUIN SERVES AS CHAIRMAN OF THE BOARD OF DIRECTORS AND/OR AN
                  ACTIVE DIRECTOR OF THE COMPANY, DE BRUIN'S COMPENSATION SHALL
                  BE DETERMINED IN ACCORDANCE WITH THE THEN-CURRENT COMPANY
                  POLICIES FOR COMPENSATION OF OUTSIDE BOARD MEMBERS."

         4.       VACATION. Section 3(c)(1) of the Employment Agreement is
hereby deleted and replaced with the following:

                  "(1)     AS SOON AS PRACTICABLE AFTER THE EFFECTIVE DATE OF
                  THIS AMENDMENT, THE COMPANY SHALL PAY DE BRUIN IN CASH FOR ALL
                  ACCRUED, UNPAID VACATION DE BRUIN HAS EARNED UP TO THE
                  EFFECTIVE DATE. DE BRUIN SHALL ACCRUE VACATION LEAVE AFTER THE
                  EFFECTIVE DATE ON A PRO

                                       2
<Page>

                  RATA BASIS CONSISTENT WITH THE PERCENTAGE OF MONTHLY SALARY
                  RATE BEING PAID."

         5.       BONUSES. The following sentence is hereby added to the end of
Section 3(c)(5) of the Employment Agreement:

                  "NOTWITHSTANDING THE FOREGOING, AS TO PARTICIPATION IN BONUS
                  AND INCENTIVE PLANS AFTER THE EFFECTIVE DATE DE BRUIN SHALL BE
                  PAID, IF HE REMAINS AN EMPLOYEE HEREUNDER THROUGH AT LEAST
                  DECEMBER 31, 2001, A BONUS FOR CALENDAR YEAR 2001 EQUAL TO 75%
                  OF WHAT HE WOULD HAVE RECEIVED UNDER THE COMPANY'S EXISTING
                  BONUS PLAN HAD DE BRUIN REMAINED THE COMPANY'S FULL-TIME CEO
                  FOR THE ENTIRE 2001 YEAR. IT IS AGREED THAT DE BRUIN SHALL NOT
                  PARTICIPATE IN MANAGEMENT BONUS PROGRAMS FOR PERIODS AFTER
                  DECEMBER 31, 2001 UNLESS OTHERWISE DETERMINED IN THE SOLE
                  DISCRETION OF THE COMPANY'S COMPENSATION COMMITTEE."

         6.       OFFICE/ADMINISTRATIVE ALLOWANCE. The following new Section
3(c)(6) is hereby added to the Employment Agreement:

                  "(6)     DURING THE TERM OF THIS AGREEMENT, THE COMPANY SHALL
                  PAY TO DE BRUIN AN OFFICE/ADMINISTRATIVE ALLOWANCE EQUAL TO
                  $1,000 PER MONTH IN FULL SATISFACTION OF THE COMPANY'S
                  OBLIGATION TO REIMBURSE DE BRUIN FOR HIS OFF-SITE OFFICE
                  EXPENSES. THE COMPANY SHALL PROVIDE AND PAY FOR ALL NECESSARY
                  COMMUNICATION SUPPORT, INCLUDING COMPUTER AND TELEPHONE."

         7.       TERM/TERMINATION. Section 6 of the Employment Agreement is
hereby deleted in its entirety and replaced with the following:

                           "TERM AND TERMINATION. THIS AGREEMENT MAY BE
                  TERMINATED BY EITHER PARTY (I) UPON AT LEAST THREE (3) MONTHS'
                  ADVANCE WRITTEN NOTICE SPECIFYING THE TERMINATION DATE IF THE
                  TERMINATION IS WITHOUT "CAUSE," OR (II) IMMEDIATELY UPON THE
                  SENDING OF WRITTEN NOTICE IF THE TERMINATION IS FOR "CAUSE";
                  PROVIDED, HOWEVER, THAT NEITHER PARTY MAY UNILATERALLY SPECIFY
                  A TERMINATION DATE PRIOR TO THE ONE-YEAR ANNIVERSARY OF THE
                  EFFECTIVE DATE UNLESS THE TERMINATION IS FOR "CAUSE." CAUSE
                  SHALL MEAN (1) THE MATERIAL BREACH OF THIS AGREEMENT WHICH
                  REMAINS UNCURED FOR A PERIOD OF THIRTY (30) CALENDAR DAYS
                  AFTER RECEIPT OF A WRITTEN NOTICE SPECIFYING THE NATURE OF
                  SUCH MATERIAL BREACH; (2) FRAUD; (3) PERSONAL DISHONESTY
                  INVOLVING MONEY OR PROPERTY OF THE COMPANY OR THAT RESULTS IN
                  MATERIAL HARM TO THE COMPANY; (4) A SERIOUS BREACH OF
                  FIDUCIARY DUTY TO THE COMPANY INVOLVING PERSONAL PROFIT; (5)
                  CONVICTION OF A FELONY; OR (6) DEATH OR DISABILITY."

                                       3
<Page>

         8.       NOTICES. Section 13 of the Employment Agreement is revised to
provide that notices to de Bruin shall be sent to the following address:

                  ANDRE DE BRUIN
                  7359 FAY AVENUE
                  LA JOLLA, CALIFORNIA  92037

         9.       OPTIONS. The parties specifically acknowledge and agree that,
during the term of this Agreement (as amended), de Bruin shall be for all
purposes be deemed actively employed by the Company under the terms of the
Option Agreement. This shall mean, for example, that during the term of this
Agreement de Bruin shall continue to vest as to the options granted under the
Option Agreement. Under no circumstances shall the fact that de Bruin's
employment with the Company is part-time be deemed a termination of employment.

         10.      NO OTHER CHANGES. Except as otherwise set forth herein, the
existing terms and provisions of the Employment Agreement and Option Agreement
remain in full force and effect.

         IN WITNESS WHEREOF, the parties have entered into this Amendment as of
the Effective Date.

QUIDEL CORPORATION                            ANDRE DE BRUIN

By:  Julie A. DeMeules                        By:   /s/ Andre de Bruin
   ------------------------------------          -------------------------------
                                                        Andre de Bruin
Title:  Vice President, Human Resources
      ---------------------------------

                                       4

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