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Exhibit 10.3    
    

2008 CEO COMPENSATION  

        On February 27, 2008, the board of directors of Quidel Corporation (the "Company"), upon the recommendation of its compensation committee, approved the following
compensation matters for Caren L. Mason, the Company's President and Chief Executive Officer: (i) a three percent increase in Ms. Mason's annual base salary from $468,000 to
$482,040, effective March 3, 2008; (ii) payout of a cash bonus of $163,800 per the terms of the Company's 2007 short-term cash incentive plan; and (iii) payout of $480,000 per the
terms of the long-term incentive bonus program ("LTIB") under Ms. Mason's employment agreement with the Company. Pursuant to the terms of Ms. Mason's employment agreement, the LTIB
provides for a cash performance bonus to be paid at the end of the three-year cycle, commencing on January 1, 2005 and ending on December 31, 2007. 

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Exhibit 10.3ex10_1.htm

                                                                             Exhibit 10.1

    

    

    

    The
William Carter Company Severance Plan

    Summary
of Benefits

    

    Overview

     

    The
William Carter Company has established The William Carter Company Severance Plan
(the “Plan”) to provide severance benefits to eligible employees of The William
Carter Company and its direct and indirect subsidiaries who are involuntarily
separated from employment under qualifying conditions.  The William
Carter Company and its direct and indirect subsidiaries are sometimes referred
to together in this summary as the “Company.”   This Plan is
effective July 15, 2008 and will supersede and replace all prior severance
plans. This summary describes, in non-technical language, the main provisions of
the Plan.  Please read it carefully. It is important to remember that
some features of the Plan are not described in this summary and that the
official Plan document legally governs the operation of the Plan.  In
the event that there is a conflict between the information contained in this
summary and the terms of the Plan, the terms of the Plan will
control.

    

    Covered
Employees

    

    Generally,
you will be eligible to receive severance benefits under the Plan if your
employment with the Company is terminated in a Covered Termination (as described
below).  If, however, you are in one of the following categories, you
are not eligible for severance benefits under the Plan:

    

    
      	
               
      

            	
              a.

            	
              Employees
      classified as temporary, occasional, on-call, or
  seasonal;

            

    

    

    
      	
               
      

            	
              b.

            	
              Employees
      covered by a collective bargaining agreement;
  and

            

    

    

    
      	
               
      

            	
              c.

            	
              Employees
      employed pursuant to a written employment contract for a definite term of
      employment.

            

    

    

    The
Company’s characterization of your employment with the Company will be final and
binding even if a court or administrative agency makes a different
determination.

    

    Covered
Terminations

    

    To be
eligible for severance pay, your employment with the Company  must be
involuntarily terminated due to one of the following:

     

    
      	
               
      

            	
              a.

            	
              Permanent
      shutdown or closing of a facility with no offer to
    transfer;

            

    

    

    
      	
               
      

            	
              b.

            	
              Sale
      of the facility to another company and you are not offered continued
      employment with the purchaser of the facility;
  or

            

    

    

    
      	
               
      

            	
              c.

            	
              Elimination
      of your job position without available
  reassignment.

            

    

    

    Exception:  A
Covered Termination will also include a voluntary termination when you decline a
transfer or relocation to a principal work location that is more than 35 miles
from your current principal work location.

    

    This Plan
shall not be construed to include as a Covered Terminations a termination of
employment due to death, retirement, voluntary (except as noted above), or
involuntary termination by the Company for misconduct or failure to meet job
performance expectations.

     

    Conditions

    

    Severance
payments are subject to the following conditions:

    

    
      	
               
      

            	
              1.

            	
              You
      must sign and return to the Company a release agreement in a form to the
      reasonable satisfaction of the Company releasing the Company from all
      claims or liabilities relating to your employment or termination of
      employment; and must not revoke the Agreement within the seven (7) day
      period provided in the Agreement.

            

    

    

    
      	
               
      

            	
              2.

            	
              You
      must return all Company property, including, but not limited to, keys,
      credit cards, documents, records, identification cards, office equipment,
      portable computers, car/mobile telephones, pagers, hand held electronic
      devices, and parking cards, to the Company on the last day of
      employment.

            

    

    

    
      	
               
      

            	
              3.

            	
              You
      must execute such documents as are necessary to assign to the Company all
      rights to inventions, patents, or other intellectual property belonging to
      the Company.

            

    

    

    
      	
               
      

            	
              4.

            	
              You
      must not disclose confidential information or trade secrets of the
      Company.  "Confidential information" includes, but is not
      limited to, information, knowledge, or data concerning any technique,
      plan, procedure, process, apparatus, method, or product manufactured,
      used, or developed by the Company; information about suppliers and/or
      customers of the Company; information about the finances of the Company
      and information which is a trade secret.  If you violate this
      condition, all severance payments will cease
  immediately.

            

    

    

    
      	
               
      

            	
              5.

            	
              You
      must not recruit or solicit employees to leave the employment of the
      Company while receiving severance payments.  If you violate this
      condition, all severance payments will cease
  immediately.

            

    

    

    
      	
               
      

            	
              6.

            	
              If
      you are rehired by the Company before the end of the severance period, in
      any position, all severance pay will cease
  immediately.

            

    

    

    Severance
Payments

    

    The
amount of severance pay you will receive is based on three (3) factors: (1) your
years of continuous service; (2) your classification; and (3) whether you were
employed by Oshkosh B’Gosh, Inc. as of July 14, 2005.

    

    
      	
               
      

            	
              A

            	
              Years of Continuous
      Service.  You will be credited with one year of
      continuous service for each twelve (12) month period of continuous
      employment with the Company.

            

    

    

    
      	
               
      

            	
              B

            	
              Amount of Severance
      Pay.

            

    

    

    
      	
               
      

            	
              1.

            	
              Salaried exempt
      employees.  Salaried exempt employees will receive one
      week of severance pay for each year of continuous service, with a minimum
      of two (2) weeks of severance and a maximum of twenty-six (26)* weeks of
      severance.  A week of severance pay is calculated by dividing
      the employee's annual base salary by 52 weeks and multiplying the amount
      by the number of years of continuous service.  Bonuses,
      commissions, overtime, and other compensation are not included in the
      calculation of severance pay

            

    

    

    
      	
               
      

            	
               

            	
              *Note:  In
      the case of a change of control in the Company (acquisition, merger,
      takeover, etc.) the 26 weeks maximum cap will be changed to a maximum of
      52 weeks for exempt salaried employees if a covered termination occurs
      within 2 calendar years of the change of
  control.

            

    

    

    
      	
               
      

            	
              2.

            	
              Non-exempt and Hourly
      Employees.  Non-exempt and hourly employees will receive
      one week of severance pay for each year of continuous service with a
      minimum of two (2) weeks of severance and a maximum of eight (8) weeks of
      severance pay.  A week of severance pay is based on the standard
      hours per week, excluding overtime, bonuses or
  commissions.

            

    

    

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              3.

            	
              Certain Oshkosh B’Gosh
      Employees.  Certain employees who were employed with
      Oshkosh B’Gosh, Inc. as of July 14, 2005 when Oshkosh B’Gosh, Inc. was
      acquired by the Company  will be eligible to elect
      optional  severance pay and outplacement assistance computed on
      the basis of the employee’s job status, base wages, and years of service
      as of July 14, 2008.  Attached as Appendix A is the schedule for
      optional severance pay and outplacement assistance  for certain
      employees who were employed by Oshkosh B’Gosh, Inc. as of July 14,
      2005.  Employees of retail stores are specifically excluded from
      this enhanced severance pay.

            

    

    

    
      	
              C.

            	
              Distribution.  Severance
      payments will begin on the first payroll period after all of the
      conditions to payment have been satisfied and will be paid according to
      normal payroll practices  until the severance is fully
      paid.  The Company may elect, in its sole discretion, to make
      severance payments as a lump sum
payment.

            

    

    

    
      	
              D.

            	
              Tax
      Treatment.  Severance payments are subject to required
      federal and state income and employment tax and
    withholdings.

            

    

    

    
      	
              E.

            	
              Payments Made By
      Mistake.  You shall be required to return to the Plan
      Administrator any severance payments, or portion thereof, made due to a
      mistake of fact or law.

            

    

    

    
      	
              F.

            	
              No
      Assignment.  Under no circumstances may severance
      payments be subject to anticipation, alienation, pledge, sale, assignment,
      garnishment, attachment, execution, encumbrance, levy, lien, or charge,
      and any attempt to cause any such severance payments to be so subjected
      shall not be recognized, except to such extent as may be required by
      law.

            

    

    

    Other
Benefits

    

    All
benefits cease at date of termination or on the date provided by the plan
documents for such benefits.  Coverage for medical, dental, and vision
insurance may be continued under COBRA.  Group life insurance may be
continued pursuant to the terms and conditions of
that  plan.

    

    In
addition to the severance payments described above, during the period of
severance, you can receive medical, dental, vision, or group life insurance
coverage for you (and any eligible dependants) at the cost of the
employee-portion of such coverage.  In order to receive the Company’s
subsidy for these benefits, you (and any dependants) must qualify for continued
coverage under the terms and conditions of the plans or by law; must elect to
continue the coverage; and must pay through payroll deduction the
employee-portion of such coverage.  The Company’s subsidy for these
benefits will expire with the end of the severance payments.

    

    Plan
Administrator

    

    The
Company, acting through its Senior Vice President of Human Resources, shall
serve as the "Plan Administrator" of the Plan.  The Plan Administrator
shall have the sole discretionary authority to determine eligibility for
severance payments, to construe the terms of the Plan, including the making of
factual determinations, and to make such exceptions to the Plan as may be
appropriate and necessary.  The decisions of the Plan Administrator
shall be final and conclusive with respect to all questions concerning the
interpretation, application, and administration of the Plan.

    

    Plan Amendment or
Termination

    

    The Plan
may be amended or terminated in any respect at any time, retroactively or
otherwise, either by the Company's Executive Committee or in a writing signed by
the President and Chief Executive Officer of the
Company.  Notwithstanding the foregoing, no amendment of the Plan may
reduce the severance pay of any employee who has previously executed the
Agreement and complied with the conditions as set forth in the
Plan.

    

    Representations Contrary to
the Plan

    

    No
employee, officer, director, or agent of the Company has the authority to alter,
vary, modify, or waive the terms or conditions of the Plan, except as set forth
above.  No verbal or written representations that are in addition to
or contrary to the terms of the Plan and its written amendments shall be binding
upon the Plan, the Plan Administrator, or the Company.

    

    No Employment
Rights

    

    The Plan
shall not confer employment rights upon any person.  No person shall
be entitled, by virtue of the Plan, to remain in the employ of the Company, and
nothing in the Plan shall restrict the right of the Company to terminate the
employment of any employee at any time.

    

    Applicable Law and
Severability

    

    The Plan
shall be governed and construed in accordance with the law of the state of
Georgia and the Employee Retirement Income Security Act of 1974, as
amended.  If any provision of the Plan is found, held, or deemed by a
court of competent jurisdiction to be void, unlawful, or unenforceable under any
applicable statute or other controlling law, the remainder of the Plan shall
continue in full force and effect.

    

    General
Information

    

    Plan Name

    

    The
official name of the Plan is “The William Carter Company Severance
Plan”.  The Plan is a welfare plan for purposes of the Employee
Retirement Income Security Act of 1974, as amended
(“ERISA”).  Benefits provided under welfare plans are not insured by
the Pension Benefit Guaranty Corporation.

    

    Plan Sponsor

    Carter’s,
Inc.

    1170
Peachtree Street, Suite 900

    Atlanta,
GA  30309

     

    The
participating affiliated companies are:

    

    OshKosh B’Gosh, Inc.

    Carter’s Retail, Inc.

    TWCC Product Development and Sales,
Inc.

    OBG Distribution Company,
LLC

    

    
      	
               
      

            	
              Plan
      Numbers

            

    

    

    The Plan
is identified by the following numbers under IRS rules:

    

    The Plan
Number assigned to the Plan by Carter’s, Inc. is 506.

    

    The
William Carter Company’s Employer Identification Number, assigned by
the IRS,   is 04-1156680.

    

    
      	
               
      

            	
              Plan
      Year

            

    

    

    The
records of the Plan are kept on the basis of a “plan year” which is generally
the 12-month period beginning each January 1.

    

    
      	
               
      

            	
               
      Source of Payments

            

    

    

    All
payments under the Plan are made from the general assets of the
Company.  Covered Employees are not required or permitted to make any
contributions to the Plan.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
                
      Plan Administration

            

    

    

    The “Plan
Administrator” is The William Carter Company, acting through the
Company’s   Senior Vice President of Human
Resources.  The Administrator has the responsibility to make and
enforce any necessary rules for the Plan and to interpret the Plan provisions
uniformly for all Covered Employees.  If it is necessary for you to
communicate the Plan Administrator regarding the Plan, you should submit your
written comments or requests to The William Carter Company or the Plan
Administrator in care of The William Carter Company at the following
address:

     

    Carter’s,
Inc.

    1170
Peachtree Street, Suite 900

    Atlanta,
GA  30309

     

    The
telephone number is 404-745-2700.

     

    The
Administrator is the Plan’s agent for service of legal process.

    

    Benefit Claims
Procedures

    

    
      	
               
      

            	
              Filing
      A Claim

            

    

    

    Generally,
you do not need to make a claim for your benefits under the Plan.  You
or your authorized representative, however, may file a written claim with the
Administrator for any benefits to which you believe you are entitled and have
not received.

    

    Administrator’s
Decision

    

    Within 90
days after the receipt of a claim, the Administrator will provide you or your
representative with written notice of its decision on the claim.  If,
because of special circumstances, the Administrator cannot render a decision on
a claim within the 90-day period, the Administrator may extend the period in
which to render the decision, up to 180 days after receipt of the written
claim.  The Administrator will provide you with a written notice of
the extension, before the end of the initial 90-day period, which indicates the
special circumstances requiring the extension and the expected decision
date.  If the claim is wholly or partially denied, the written notice
of the decision will inform you of:

     

    
      	
               
      

            	
              (a)

            	
              the
      specific reasons for the denial;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      specific provisions of the Plan upon which the denial is
      based;

            

    

    

    
      	
               
      

            	
              (c)

            	
              any
      additional material or information necessary to perfect the claim and
      reasons why such material or information is necessary;
  and

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      right to request review of the denial and how to request such
      review.

            

    

    

    If
written notice of the decision is not given to you within 90 days after the
Administrator’s receipt of a claim, plus extensions, the claim will be deemed to
be denied for purposes of your right to request a review of the
denial.

     

    
      	
               
      

            	
              Request
      for Review of Denied Claim

            

    

    

    Within 60
days after the receipt of written notice of a denial of all or a portion of a
claim, you or your authorized representative may request a review of the denial,
by a writing filed with the Administrator.  Written issues and
comments may be submitted to the Administrator along with the review
request.  During the 60-day period following notice of the denial, you
or your authorized representative may examine the Plan and any other document
upon which the denial is based.

     

          
Review of Denied Claim

    

    Upon
receipt of a request for review of a claim denial, the Administrator will
undertake a full and fair review of the claim denial and provide you with
written notice of its decision within 60 days after receipt of the review
request.  If, because of special circumstances, the Administrator
cannot make a decision within the 60-day period, the Administrator may extend
the period in which to make the decision up to 120 days after receipt of the
review request.  The Administrator will provide you with a written
notice of the extension, before the end of the 60-day period, which indicates
the special circumstances requiring the extension and the expected decision
date.

     

    The
written notice of the Administrator’s decision will inform you of the specific
reasons for the decision and the specific provisions of the Plan upon which the
decision is based.  If written notice of the decision is not given to
you within the initial period, plus extensions, the claim will be deemed denied
on review.  Except as may be otherwise required by law, the decision
of the Administrator on review of the claim denial will be binding on all
parties.

    

    Statement of ERISA
Rights

    

    As a
participant in the Plan you are entitled to certain rights and protections under
ERISA. ERISA provides that all Plan participants will be entitled
to:

    

    
      	
               
      

            	
              ·

            	
              Examine,
      without charge, at the Plan administrator’s office and at other specified
      locations, such as worksites, all Plan documents, including a copy of the
      latest annual report (Form 5500 Series) filed by the Plan with the U.S.
      Department of Labor and available at the Public disclosure Room of the
      Pension and Welfare Benefit
Administration.

            

    

     

    
      	
               
      

            	
              ·

            	
              Obtain,
      upon written request to the Plan administrator, copies of documents
      governing the operation of the Plan, including copies of the latest annual
      report (Form 5500 Series) and updates of the summary plan
      description.  The administrator may make a reasonable charge for
      the copies.

            

    

     

    
      	
               
      

            	
              ·

            	
              Receive
      a summary of the Plan’s annual financial report.  The plan
      administrator is required by law to furnish each participant with a copy
      of this summary annual report.

            

    

     

    Prudent Actions by Plan
Fiduciaries

     

    In
addition to creating rights for plan participants, ERISA imposes duties upon the
people who are responsible for the operation of the Plan.  The people
who operate the Plan, called fiduciaries” of the Plan, have a duty to do so
prudently and in the interest of you and other plan participants and
beneficiaries.  No one, including your employer or any other person,
may fire you or otherwise discriminate against you in any way to prevent you
from obtaining a welfare benefit or exercising your rights under
ERISA.

     

    Enforce Your Rights

     

    If your
claim for a welfare benefit is denied in whole or in part, you have a right to
know why this was done, to obtain copies of documents relating to the decisions
without charge, and to appeal any denial, all within certain time
schedules.  Under ERISA, there are steps you can take to enforce the
above rights.  For instance, if you request materials from the Plan
and do not receive them within 30 days, you may file suit in a Federal
court.  In such a case, the court may require the plan administrator
to provide the materials and pay you up to $110 a day until you receive the
materials, unless the materials were not sent because of reasons beyond the
control of the administrator.  If you have a claim for benefits which
is denied or ignored, in whole or in part, you may file suit in a State or
Federal court. In addition, if you disagree with the Plan’s decision or lack
thereof concerning the qualified status of a medical child support order, you
may file suit in Federal court. If it should happen that Plan fiduciaries misuse
the Plan’s money, or if you are discriminated against for asserting your rights,
you may seek assistance from the U.S. Department of Labor, or you may file suit
in a Federal court.  The court will decide who should pay court costs
and legal fees.  If you are successful, the court may order the person
you have sued to pay these costs and fees.  If you lose, the court may
order you to pay these costs and fees, for example, if it finds your claim is
frivolous.

    

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

    

    Assistance With Your
Questions

    

    If you
have any questions about the Plan, you should contact the Plan
administrator.  If you have any questions about this statement or
about your rights under ERISA, you should contact the nearest office of the
Pension and Welfare Benefits Administration, U.S. Department of Labor, listed in
your telephone directory or the Division of Technical Assistance and Inquiries,
Pension and Welfare Benefits Administration, U.S. Department of Labor, 200
Constitution Avenue N.W., Washington, D.C.  20210.  You may
also obtain certain publications about your rights and responsibilities under
ERISA by calling the publications hotline of the Pension and Welfare Benefits
Administration.

     

    Appendix
A

    Optional
Severance Pay and Benefits for Certain Employees

    Employed
by Oshkosh B’Gosh, Inc. as of July 14, 2005

    

    Employees
who were employed with Oshkosh B’Gosh, Inc. as of July 14, 2005, and who are
eligible for severance benefits due to a covered termination  may
elect to receive either (a) severance pay and benefits under The William Carter
Company Severance Plan or (b) severance pay and outplacement assistance
calculated by using the employee’s job status, base wages, and years of service
as of July 14, 2008, in accordance with the following
schedule.  Employees of retail stores are specifically
excluded.

    

    

    
      	
               

              Status

            	 	
              Formula

              (Weeks
      of

              Severance

              per
      year

               of
      service

              as
      of

              July
      14, 2008)

            	 	 	
              Min

              Wks

            	 	 	
              Max

              Wks

            	 	 	
              Outplacement

              (#
      days)

            	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
              Nonexempt
      Employees                                                

            	 	 	
              1

            	 	 	 	4	 	 	 	12	 	 	 	30	 
	
              Exempt                                                

            	 	 	2	 	 	 	4	 	 	 	16	 	 	 	60	 
	
              Managers
      (not bonus eligible) 

            	 	 	2	 	 	 	8	 	 	 	26	 	 	 	60	 
	
              Directors
      or Bonus Eligible Managers

            	 	 	4	 	 	 	16	 	 	 	36	 	 	 	90	 
	
              Senior  VP/VP                                                

            	 	 	N/A	 	 	 	N/A	 	 	 	52	 	 	 	90	 

    

    

    
      4

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