Document:

Exhibit
10.1

Corporate Offices

1000 Bishops Gate Blvd, Suite 300

Mount
Laurel, NJ 08054-4632

February 12, 2007

Via
Facsimile and Overnight Mail

Frank W. Lavelle

President

MedQuist, Inc.

1000 Bishops Gate Blvd. Suite 300

Mt.
Laurel, NJ 08054

Re:          Amendment No. 1 to Employment Agreement

Dear
Frank:

This letter (the “Amendment”)
describes the amendment to letter agreement of employment between you and MedQuist
Inc. (the “Company”) dated February 24, 2005 (the “Employment Agreement”). Capitalized
terms not otherwise defined in this Amendment shall have the meanings given to
them in the Agreement. The purposes of the amendment are to (i) revise the date
on which the Company’s obligation to provide you with severance pay and
benefits if Board does not appoint you as the Chief Executive Officer, to June
30, 2007 and (ii) to establish the exact severance pay and benefits to which
you will be entitled if the Board does not appoint you as Chief Executive
Officer of the Company by June 30, 2007.

In consideration of the
mutual agreements and covenants contained herein and for other good and
valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, it is mutually agreed and covenanted by and between the parties
to this Amendment, as follows:

A.            The following Section 3.a.(11) shall
be added to the Agreement:

“(11)       upon Employee’s
election, if the Board fails to appoint Employee to Chief Executive Officer by
June 30, 2007 and Employee resigns as a result thereof, severance payment in
the amount of $1,000,000 payable in 18 monthly installments of $55,555.56
commencing on July 31, 2007 and the severance benefits described below in Sections
5.b.(2) to 5.b.(4). If Employee is not appointed Chief Executive Officer by
June 30, 2007, Employee must provide the Company’s Board of Directors and General
Counsel with written notice by July 30, 2007 of Employee’s resignation in order
for the Company’s severance payment and benefits obligations of this Section
3.a.(11) to apply.”

B.            Section 7.f. Agreement shall be deleted in its entirety
and replaced with the following:

“f.            “Good Reason” means
(1) a reduction in Employee’s annual base salary below $500,000 without
Employee’s consent, (2) requiring Employee to be based more than twenty-five
(25) miles from the Company’s current office location as of the Employment
Commencement Date, unless closer to the Employee’s residence, or (3)
substantial and material diminution of duties; provided that in each case
written notice of Employee’s termination for Good Reason must be delivered to
the Company within 30 days after the occurrence of any such event with such
notice specifying one or more specific reason(s) in this Section 7.f in order
for Employee’s termination with Good Reason to be effective hereunder.”

C.            Counterparts.  This
Amendment may be executed in multiple counterparts, each of which will be
deemed to be an original and all of which together will constitute but one and
the same instrument.

D.            Except as modified by this Amendment, the
Agreement shall remain in full force and effect unmodified. To the extent the
terms of the Agreement are inconsistent with the terms of this Amendment, the
terms of this Amendment shall control.

To acknowledge your agreement to and acceptance of the terms and
conditions of this Agreement, please sign below in the space provided.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
  MEDQUIST
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen H. Rusckowski

  	
   

  
	
   

  	
   

  	
  Stephen H. Rusckowski

  
	
   

  	
   

  	
  Chairman of the Board of Directors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Underwood

  	
   

  
	
   

  	
   

  	
  John Underwood

  
	
   

  	
   

  	
  Chairman of the Compensation Committee of the Board
  of

  
	
   

  	
   

  	
  Directors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Howard S. Hoffmann

  	
   

  
	
   

  	
   

  	
  Howard S. Hoffmann, Chief Executive Officer

  
					

 

READ,
UNDERSTOOD AND AGREED TO BY:

	
  /s/ Frank W. Lavelle

  	
   

  
	
  Frank W. Lavelle,
  President

  
	
   

  
	
  Date: February
  16, 2007

  

 

 2Exhibit
10.1

2007
Annual Base Salaries

 

	
  Executive Officer

  	
   

  	
  Prior Base Salary

  	
   

  	
  2007 Base Salary

  	
   

  
	
  Caren
  L. Mason

  President and Chief Executive Officer

  	
   

  	
   

  	
  $

  	
  450,000

  	
   

  	
   

  	
   

  	
  $

  	
  468,000

  	
   

  	
   

  
	
  Mark E. Paiz

  Chief Operating Officer

  	
   

  	
   

  	
  $

  	
  332,800

  	
   

  	
   

  	
   

  	
  $

  	
  346,110

  	
   

  	
   

  
	
  Thomas J. Foley

  Chief Technology Officer

  	
   

  	
   

  	
  $

  	
  266,700

  	
   

  	
   

  	
   

  	
  $

  	
  278,700

  	
   

  	
   

  
	
  Robert J. Bujarski

  Vice President and General Counsel

  	
   

  	
   

  	
  $

  	
  247,560

  	
   

  	
   

  	
   

  	
  $

  	
  275,000Exhibit
10.2

2006 Cash Bonus Awards

	
  Executive Officer

  	
   

  	
  2006 Cash Bonus

  	
   

  
	
  Caren
  L. Mason

  President and Chief Executive Officer

  	
   

  	
   

  	
  $

  	
  231,750

  	
   

  	
   

  
	
  Mark E. Paiz

  Chief Operating Officer

  	
   

  	
   

  	
  $

  	
  139,776

  	
   

  	
   

  
	
  Paul E. Landers

  Senior Vice President,

  Finance & Administration,

  (Retiring March 31, 2007)

  	
   

  	
   

  	
  $

  	
  109,180

  	
   

  	
   

  
	
  Thomas J. Foley

  Chief Technology Officer

  	
   

  	
   

  	
  $

  	
  124,016

  	
   

  	
   

  
	
  Robert J. Bujarski

  Vice President and General Counsel

  	
   

  	
   

  	
  $

  	
  87,265Exhibit 10.3

AGREEMENT
RE: CHANGE IN CONTROL

This AGREEMENT RE:
CHANGE IN CONTROL (this “Agreement”) is dated as of February 14, 2007 and is
entered into by and between Robert J. Bujarski (“Executive”) and Quidel
Corporation, a Delaware corporation (the “Company”).

Background

The Company
believes that because of its position in the industry, financial resources and
historical operating results there is a possibility that the Company may become
the subject of a Change in Control (as defined below), either now or at some
time in the future.

The Company
believes that it is in the best interest of the Company and its stockholders to
foster Executive’s objectivity in making decisions with respect to any pending
or threatened Change in Control of the Company and to assure that the Company
will have the continued dedication and availability of Executive,
notwithstanding the possibility, threat or occurrence of a Change in Control.
The Company believes that these goals can best be accomplished by alleviating
certain of the risks and uncertainties with regard to Executive’s financial and
professional security that would be created by a pending or threatened Change
in Control and that inevitably would distract Executive and could impair his
ability to objectively perform his duties for and on behalf of the Company.
Accordingly, the Company believes that it is appropriate and in the best
interest of the Company and its stockholders to provide to Executive
compensation arrangements upon a Change in Control that lessen Executive’s
financial risks and uncertainties and that are reasonably competitive with
those of other corporations.

With
these and other considerations in mind, the Compensation Committee of the
Company has authorized the Company to enter into this Agreement with the
Executive to provide the protections set forth herein for Executive’s financial
security following a Change in Control.

NOW, THEREFORE, in
consideration of the foregoing, and for other good and valuable consideration
the receipt of which is hereby acknowledged, it is hereby agreed as follows:

Agreement

1.             Term of Agreement.  This Agreement shall be effective as of March
5, 2007 and, subject to the provisions of Section 4, shall extend to (and
thereupon automatically terminate) one (1) day after Executive’s termination of
employment with the Company for any reason. No termination of this Agreement
shall limit, alter or otherwise affect Executive’s rights hereunder with
respect to a Change in Control which has occurred prior to such termination,
including without limitation Executive’s right to receive the various benefits
hereunder.

2.             Purpose of Agreement.  The purpose of this Agreement is to provide
that, in the event of a “Change in Control,” Executive may become entitled to
receive certain additional benefits, as described herein, in the event of his
termination under specified circumstances.

3.             Change in Control.  As used in this Agreement, the phrase “Change
in Control” shall mean:

(i)            Except as provided by subparagraph
(iii) hereof, the acquisition (other than from the Company) by any person,
entity or “group”, within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) (excluding,
for this purpose, the Company or its subsidiaries, or any executive benefit
plan of the Company or its subsidiaries which acquires beneficial ownership of
voting securities of the Company), of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of forty percent (40%) or
more of either the then 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; or

(ii)           Individuals who, as of the date
hereof, constitute the Board of Directors of the Company (as of the date hereof
the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board of Directors of the Company, provided that any person becoming a
director subsequent to the date hereof whose election, or nomination for
election by the Company’s stockholders, is or was approved by a vote of at
least a majority of the directors then comprising the Incumbent Board (other
than an election or nomination of an individual whose initial assumption of
office is in connection with an actual or threatened election contest relating
to the election of the Directors of the Company, as such terms are used in Rule
14a-11 of Regulation 14A promulgated under the Exchange Act) shall be, for
purposes of this Agreement, considered as though such person were a member of
the Incumbent Board; or

(iii)          Approval by the stockholders of the
Company of a reorganization, merger or consolidation with any other person,
entity or corporation, other than

(1)            a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of another entity) more than fifty
percent (50%) of the combined voting power of the voting securities of the
Company or such other entity outstanding immediately after such merger or
consolidation, or

(2)            a merger or consolidation effected
to implement a recapitalization of the Company (or similar transaction) in
which no person acquires forty percent (40%) or more of the combined voting
power of the Company’s then outstanding voting securities; or

(iv)          Approval by the stockholders of the
Company of a plan of complete liquidation of the Company or an agreement for
the sale or other disposition by the Company of all or substantially all of the
Company’s assets.

4.             Effect of a Change in Control.  In the event of a Change in Control, Sections
6 through 13 of this Agreement shall become applicable to Executive. These
Sections shall continue to remain applicable until the third anniversary of the
date upon which the Change in Control occurs. 
On such third anniversary date, and provided that the employment of
Executive has not been terminated on account of a Qualifying Termination (as
defined in Section 5 below), this Agreement shall terminate and be of no
further force or effect.

5.             Qualifying Termination.  If following, or within thirty (30) days
prior to, a Change in Control Executive’s employment with the Company and its
affiliated companies is terminated, such termination shall be conclusively
considered a “Qualifying Termination” unless:

(a)           Executive
voluntarily terminates his employment with the Company and its affiliated
companies. Executive, however, shall not be considered to have
voluntarily terminated his employment with the Company and its affiliated
companies if, following, or within thirty (30) days prior to, the Change in
Control, Executive’s overall compensation is reduced or adversely modified in
any material respect or Executive’s authority or duties are materially changed,
and subsequent to such reduction, modification or change Executive elects to
terminate his employment with the Company and its affiliated companies. For
such purposes, Executive’s authority or duties shall conclusively be considered
to have been “materially changed” if, without Executive’s express and voluntary
written consent, there is any substantial diminution or adverse modification in
Executive’s title, status, overall position, responsibilities, reporting
relationship, general working environment (including without limitation
secretarial and staff support, offices, and frequency and mode of travel), or
if, without Executive’s express and voluntary written consent, Executive’s job
location is transferred to a site more than twenty-five (25) miles away from
his place of employment thirty (30) days prior to the Change in Control. In
this regard as well, Executive’s authority and duties shall conclusively be
considered to have been “materially changed” if, without Executive’s express
and voluntary written consent, Executive no longer holds the same title or no
longer has the same authority and responsibilities or no longer has the same
reporting responsibilities, in each case with respect and as to a publicly held
parent company which is not controlled by another entity or person.

(b)           The
termination is on account of Executive’s death or Disability. For such
purposes, “Disability” shall mean a physical or mental incapacity as a result
of which Executive becomes unable to continue the performance of his
responsibilities for the Company and its affiliated companies and which, at
least three (3) months after its commencement, is determined to be total and
permanent by a physician agreed to by the Company and Executive, or in the
event of Executive’s inability to designate a physician, Executive’s legal
representative. In the absence of agreement between the Company and Executive,
each party shall nominate a qualified physician and the two physicians so
nominated shall select a third physician who shall make the determination as to
Disability.

(c)            Executive
is involuntarily terminated for “Cause.” For this purpose, “Cause” shall be
limited to only three types of events:

(1)           the willful and deliberate refusal of Executive to comply
with a lawful, written instruction of the Board of Directors, which refusal is
not remedied by Executive within a reasonable period of time after his receipt
of written notice from the Company identifying the refusal, so long as the
instruction is consistent with the scope and responsibilities of Executive’s
position prior to the Change in Control;

(2)           an act or acts of personal dishonesty by Executive which
were intended to result in substantial personal enrichment of Executive at the
expense of the Company; or

(3)           Executive’s conviction of any felony involving an act of
moral turpitude.

6.             Severance Payment.  If Executive’s employment is terminated as a
result of a Qualifying Termination, the Company shall pay Executive within
thirty (30) days after the Qualifying Termination a cash lump sum equal to two
(2) times the Executive’s Compensation (the “Severance Payment”).

(a)           For
purposes of this Agreement, Executive’s “Compensation” shall equal the sum of
(i) Executive’s highest annual salary rate with the Company within the three
year period ending on the date of Executive’s Qualifying Termination, plus (ii)
a “Bonus Increment.” The Bonus Increment shall equal the annualized average of
all bonuses and incentive compensation payments paid to Executive during the
two (2) year period immediately before the date of Executive’s Qualifying
Termination under all of the Company’s bonus and incentive compensation plans
or arrangements.

(b)           In
lieu of a cash lump sum, Executive may, in his sole discretion, elect to
receive the Severance Payment provided by this Section in equal annual
installments over three (3) years. Such installments shall be paid to Executive
on each anniversary of the date of Executive’s Qualifying Termination,
beginning with the first such anniversary and continuing on each such
anniversary thereafter until fully paid. Such election to receive the Severance
Payment in installments may be made and/or revoked by Executive at any time
prior to the occurrence of a Change in Control by written notice to the Board
of Directors of the Company. Upon the occurrence of a Change in Control, any
such election to receive the Severance Payment in installments that has been
made and not revoked prior to the Change in Control shall be irrevocable and
binding on both the Company and Executive. In the event that at the time of a
Change in Control there is not in effect an election by Executive to receive
the Severance Payment in installments, such Severance Payment shall be paid to
Executive in a single cash lump sum as provided in subparagraph (a) above.

(c)           The Severance Payment hereunder is in
lieu of any severance payment that Executive might otherwise be entitled to
from the Company in the event of a Change in Control under the Company’s
applicable severance pay policies, if any, or under any other oral or written
agreement; provided, however, that Executive shall continue to be entitled to
receive the severance pay benefits under the Company’s applicable policies, if
any, or under another written agreement if and to the extent Executive’s
termination is not a Qualifying Termination after, or within thirty (30) days
prior to, a Change in Control.

7.             Additional Benefits.

(a)           In
the event of a Qualifying Termination, any and all unvested stock options of
Executive shall immediately become fully vested and exercisable and any and all
restrictions on Executive’s restricted stock shall immediately and
automatically lapse.

(b)           In
the event of a Qualifying Termination, Executive shall be entitled to continue
to participate in the following executive benefit programs which had been made
available to Executive (including his family) before the Qualifying
Termination: group medical insurance, group dental insurance, and group vision
insurance. These programs shall be continued at no cost to Executive, except to
the extent that tax rules require the inclusion of the value of such benefits
in Executive’s income. The programs shall be continued in the same way and at
the same level as immediately prior to the Qualifying 

Termination.  The programs shall
continue for Executive’s benefit for two (2) years after the date of the
Qualifying Termination; provided, however, that Executive’s
participation in each of such programs shall be earlier terminated or reduced,
as applicable, if and to the extent Executive receives benefits as a result of
concurrent coverage through another program.

(c)           In
the event of a Qualifying Termination, Executive shall be entitled to receive
from the Company, upon such Termination, the sum of $25,000 to help defray
legal fees, tax and accounting fees, executive outplacement services, and other
costs associated with transitional matters.

8.             Limitation on Payments.  Notwithstanding anything to the contrary herein,
in the event that the sum aggregate present value of (i) the Severance Payment
payable under Section 6 hereof, (ii) any and all additional amount or benefits
which may be paid or conferred to or on behalf of Executive in accordance with
Section 7 hereof, and (iii) any and all other amounts or benefits paid or
conferred to or on behalf of Executive would constitute a “parachute payment” (“parachute
payment” as used in this Agreement shall be defined in accordance with Section
280G(b)(2), or any successor thereto, of the Internal Revenue Code of 1986, as
amended), the payments under this Agreement shall be reduced (by the minimum
possible amounts) until no amount payable to Executive under this Agreement
constitutes a parachute payment; provided, however, that no such
reduction under this Section 8 shall be made if the net after-tax payment
(after taking into account, Federal, state, local or other income and excise
taxes) to which Executive would otherwise be entitled without such reduction
would be greater than the net after-tax payment (after taking into account
Federal, state, local or other income and excise taxes) to Executive resulting
from the receipt of such payments with such reduction. If, as a result of
subsequent events or conditions (including a subsequent payment or absence of a
subsequent payment under this Agreement), it is determined that payments
hereunder have been reduced by more than the minimum amount required under this
Section 8, then an additional payment shall be promptly made to Executive in an
amount equal to the excess reduction. All determinations required to be made
under this Section 8, including whether a payment would result in a parachute
payment and the assumptions to be utilized in arriving at such determination,
shall be made and approved within fifteen (15) days after the Qualifying
Termination by both (1) accountants selected by the Company and (2) Executive’s
designated financial advisor.

9.             Nonsolicitation Covenant. In
consideration of the payments to be made to Executive hereunder, Executive
hereby covenants, for a period of two (2) years following the Qualifying
Termination, that he will not, directly or indirectly (whether as an officer,
director, employee, individual proprietor, control shareholder, consultant, partner
or otherwise) (i) solicit, recruit or hire-away any employee of the Company or
successor of the Company or (ii) solicit, influence or attempt to influence any
person or entity to terminate such person’s or entity’s contractual and/or
business relationship with the Company or successor of the Company. With regard
to this Section 9, Executive acknowledges that the provisions herein are
reasonable in both scope and duration and necessary to protect the business of
the Company or its successor.

10.           Rights and Obligations Prior to a
Change in Control. Prior to the date which is thirty (30) days before a
Change in Control, the rights and obligations of Executive with respect to his
employment by the Company shall be determined in accordance with the policies
and procedures adopted from time to time by the Company and the provisions of
any written employment contract in effect between the Company and Executive
from time to time. This Agreement deals only with certain rights and
obligations of Executive subsequent, or within thirty (30) days prior to, a
Change in Control, and the existence of this Agreement shall not be treated as 

raising any inference
with respect to what rights and obligations exist prior to the date which is
thirty (30) days before a Change in Control. Unless otherwise expressly set
forth in a separate written employment agreement between Executive and the
Company, the employment of Executive is expressly at-will, and Executive or the
Company may terminate Executive’s employment with the Company at any time and
for any reason, with or without cause, provided that if such termination occurs
within thirty (30) days prior to or three (3) years after a Change in Control
and constitutes a Qualifying Termination (as defined in Section 5 above) the
provisions of this Agreement shall govern the payment of the Severance Payment
and certain other benefits as provided herein.

11.           Non-Exclusivity of Rights.
Subject to Section 6(c) hereof, nothing in this Agreement shall prevent or
limit Executive’s continuing or future participation in any benefit, bonus,
incentive or other plan or program provided by the Company or any of its
affiliated companies and for which Executive may qualify, nor shall anything
herein limit or otherwise affect such rights as Executive may have under any
stock option or other agreements with the Company or any of its affiliated
companies. Except as otherwise provided in Section 6(c) hereof, amounts which
are vested benefits or which Executive is otherwise entitled to receive under any
plan or program of the Company or any of its affiliated companies at or
subsequent to the date of any Qualified Termination shall be payable in
accordance with such plan or program.

12.           Full Settlement.  The Company’s obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counter-claim, recoupment,
defense or other claim, right, or action which the Company may have against
Executive or others. In no event shall Executive be obligated to seek other
employment or to take any other action by way of mitigation of the amounts
payable to Executive under any of the provisions of this Agreement. The Company
agrees to pay, to the full extent permitted by law, all legal fees and expenses
which Executive may reasonably incur as a result of Executive’s successful
collection efforts to receive amounts payable hereunder, or as a result of any
contest (regardless of the outcome thereof) by the Company or others of the
validity or enforceability of, or liability under, any provision of this
Agreement or any guarantee of performance thereof (including as a result of any
contest by Executive about the amount of any payment pursuant to this Section).

13.           Successors.

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

(b)           The
rights and obligations of the Company under this Agreement shall inure to the
benefit of and shall be binding upon the successors and assigns of the Company.

14.           Governing Law.     This Agreement is made and entered into in the
State of California, and the internal laws of California shall govern its
validity and interpretation in the performance by the parties hereto of their
respective duties and obligations hereunder.

15.           Modifications.  This Agreement may be amended or modified
only by an instrument in writing executed by all of the parties hereto.

16.           Dispute Resolution.

(a)           Any
controversy or dispute between the parties involving the construction,
interpretation, application or performance of the terms, covenants, or conditions
of this Agreement or in any way arising under this Agreement (a “Covered
Dispute”) shall, on demand by either of the parties by written notice served on
the other party in the manner prescribed in Section 17 hereof, be referenced
pursuant to the procedures described in California Code of Civil Procedure (“CCP”)
Sections 638, et  seq., as they may be amended from time to time
(the “Reference Procedures”), to a retired Judge from the Superior Court for
the County of San Diego or the County of Orange for a decision.

(b)           The
Reference Procedures shall be commenced by either party by the filing in the
Superior Court of the State of California for the County of San Diego or the
County of Orange of a petition pursuant to CCP Section 638(a) (a “Petition”). Said
Petition shall designate as a referee a Judge from the list of retired San
Diego County and Orange County Superior Court Judges who have made themselves
available for trial or settlement of civil litigation under said Reference
Procedures. If the parties hereto are unable to agree on the designation of a
particular retired San Diego County or Orange County Superior Court Judge or
the designated Judge is unavailable or unable to serve in such capacity,
request shall be made in said Petition that the Presiding or Assistant
Presiding Judge of the San Diego County Superior Court or the Orange County
Superior Court, as relevant, appoint as referee a retired San Diego County or
Orange County Superior Court Judge from the aforementioned list.

(c)           Except
as hereafter agreed by the parties, the referee shall apply the internal law of
California in deciding the issues submitted hereunder. Unless formal pleadings
are waived by agreement among the parties and the referee, the moving party
shall file and serve its complaint within 15 days from the date a referee is
designated as provided herein, and the other party shall have 15 days
thereafter in which to plead to said complaint. Each of the parties reserves
its respective rights to allege and assert in such pleadings all claims, causes
of action, contentions and defenses which it may have arising out of or
relating to the general subject matter of the Covered Dispute that is being
determined pursuant to the Reference Procedures. Reasonable notice of any
motions before the referee shall be given, and all matters shall be set at the
convenience of the referee. Discovery shall be conducted as the parties agree
or as allowed by the referee. Unless waived by each of the parties, a reporter
shall be present at all proceedings before the referee.

(d)           It
is the parties’ intention by this Section 16 that all issues of fact and law
and all matters of a legal and equitable nature related to any Covered Dispute
will be submitted for determination by a referee designated as provided herein.
Accordingly, the parties hereby stipulate that a referee designated as provided
herein shall have all powers of a Judge of the Superior Court including,
without limitation, the power to grant equitable and interlocutory and
permanent injunctive relief.

(e)           Each
of the parties specifically (i) consents to the exercise of jurisdiction over
his person by a referee designated as provided herein with respect to any and
all Covered Disputes; and (ii) consents to the personal jurisdiction of the
California courts with respect to any appeal or review of the decision of any
such referee.

(f)            Each
of the parties acknowledges that the decision by a referee designated as
provided herein shall be a basis for a judgment as provided in CCP Section 644
and shall be subject to exception and review as provided in CCP Section 645.

17.           Notices.  Any notice or communications required or
permitted to be given to the parties hereto shall be delivered personally or be
sent by United States registered or certified mail, postage prepaid and return
receipt requested, and addressed or delivered as follows, or at such other
addresses the party addressed may have substituted by notice pursuant to this
Section:

Quidel Corporation                              Robert J. Bujarski

10165 McKellar Court                          10165 McKellar Court

San Diego, CA 92121                           San Diego, CA  92121

Attn: President

18.           Captions.  The captions of this Agreement are inserted
for convenience and do not constitute a part hereof.

19.           Severability.  In case any one or more of the provisions
contained in this Agreement shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement, but
this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein and there shall be deemed substituted
for such invalid, illegal or unenforceable provision such other provision as
will most nearly accomplish the intent of the parties to the extent permitted
by the applicable law. In case this Agreement, or any one or more the
provisions hereof, shall be held to be invalid, illegal or unenforceable within
any governmental jurisdiction or subdivision thereof, this Agreement or any
such provision thereof shall not as a consequence thereof be deemed to be
invalid, illegal or unenforceable in any other governmental jurisdiction or
subdivision thereof.

20.           Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which shall
together constitute one in the same Agreement.

[Remainder of page
left blank intentionally, signatures on following page]

IN
WITNESS HEREOF, the parties hereto have caused this Agreement to be duly
executed and delivered as of the day and year first written above in San Diego,
California.

	
  

  	
   

  	
  Quidel Corporation

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Caren L. Mason

  
	
   

  	
   

  	
  Title:

  	
   

  	
  President & CEO

  
	
   

  	
   

  	
  Robert J. Bujarski

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Robert J. Bujarski

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