Document:

Exhibit 10.1

 

QUIDEL CORPORATION

(formerly Monoclonal Antibodies, Inc.)

 

1983 EMPLOYEE STOCK PURCHASE PLAN

(As Amended)

 

        The
following constitute the provisions of the 1983 Employee Stock Purchase Plan
(herein called the “Plan”) of Quidel Corporation, a Delaware corporation
(herein called the “Company”).

 

        1.    Purpose.    The
purpose of the Plan is to provide employees of the Company and its Designated
Subsidiaries with an opportunity to purchase Common Stock of the Company
through accumulated payroll deductions. It is the intention of the Company to
have the Plan qualify as an “Employee Stock Purchase Plan” under
Section 423 of the Internal Revenue Code of 1986, as amended. The
provisions of the Plan shall, accordingly, be construed so as to extend and
limit participation in a manner consistent with the requirements of that
section of the Code.

 

        2.    Definitions.

 

        (a)   “Board” shall mean the Board of Directors
of the Company.

 

        (b)   “Code” shall mean the Internal Revenue Code
of 1986, as amended.

 

        (c)   “Common Stock” shall mean the Common Stock,
no par value, of the Company.

 

        (d)   “Company” shall mean Quidel Corporation, a
Delaware corporation.

 

        (e)   “Compensation” shall mean all regular straight
time earnings, payments or overtime, shift premium, incentive compensation,
incentive payments, bonuses and commissions (except to the extent that the
exclusion of any such items for all participants is specifically directed by
the Board or its committee).

 

        (f)    “Designated Subsidiaries” shall mean the
Subsidiaries which have been designated by the Board from time to time in its
sole discretion as eligible to participate in the Plan.

 

        (g)   “Employee” shall mean any person, including
an officer, who is customarily employed for at least twenty (20) hours per
week and more than five (5) months in a calendar year by the Company or
one of its Designated Subsidiaries.

 

        (h)   “Exercise Date” shall mean the last day of
each offering period of the Plan.

 

        (i)    “Offering Date” shall mean the first day of
each offering period of the Plan.

 

        (j)    “Plan” shall mean this Employee Stock
Purchase Plan.

 

 

        (k)   “Subsidiary” shall mean a corporation,
domestic or foreign, of which not less than 50% of the voting shares are held
by the Company or a Subsidiary, whether or not such corporation flow exists or
is hereafter organized or acquired by the Company or a Subsidiary.

 

        3.    Eligibility.

 

        (a)   Any
Employee as defined in paragraph 2 who shall be employed by the Company on
the date his participation in the Plan is effective shall be eligible to
participate in the Plan, subject to limitations imposed by Section 423(b)
of the Code.

 

        (b)   Any
provisions of the Plan to the contrary notwithstanding, no Employee shall be
granted an option under the Plan (i) if, immediately after the grant, such
Employee (or any other person whose stock would be attributed to such Employee
pursuant to Section 425(d) of the Code) would own stock and/or hold
outstanding options to purchase stock possessing five percent (5%) or more of
the total combined voting power or value of all classes of stock of the Company
or of any subsidiary of the Company, or (ii) which permits his rights to
purchase stock under all employee stock purchase plans of the Company and its
subsidiaries to accrue at a rate which exceeds Twenty Five Thousand Dollars
($25,000) of fair market value of such stock (determined at the time such
option is granted) for each calendar year in which such option is outstanding
at any time.

 

        4.    Offering
Periods.    The Plan shall be implemented by
one offering during each six month period of the Plan, commencing on or about,
and continuing thereafter until terminated in accordance with paragraph 19
hereof. The Board of Directors of the Company shall have the power to change
the duration of offering periods with respect to future offerings without
stockholder approval if such change is announced at least fifteen
(15) days prior to the scheduled beginning at the first offering period to
be affected.

 

        5.    Participation.

 

        (a)   An
eligible Employee may become a participant in the Plan by completing a
subscription agreement authorizing payroll deduction on the form provided by
the Company and filing it with the Company’s payroll office prior to the
applicable Offering Date, unless a later time for filing the subscription
agreement is set by the Board for all eligible employees with respect to a
given offering.

 

        (b)   Payroll
deductions for a participant shall commence on the first payroll following the
Offering Date and shall end on the Exercise Date of the offering to which such
authorization is applicable, unless sooner terminated by the participant as
provided in paragraph 10.

 

        6.    Payroll
Deductions.

 

        (a)   At
the time a participant files his subscription agreement, he shall elect to have
payroll deductions made on each payday during the offering period in an amount not
exceeding ten percent (10%) of the Compensation which he received on the payday
immediately preceding the Offering Date, and the aggregate of such payroll
deductions during the offering period shall not exceed ten percent (10%) of his
aggregate Compensation during said offering period.

 

        (b)   All
payroll deductions made by a participant shall be credited to his account under
the Plan. A participant may not make any additional payments into such account.

 

 

        (c)   A
participant may discontinue his participation in the Plan as provided in
paragraph 10, or may lower, but not increase, the rate of his payroll
deductions during the offering period by completing or filing with the Company
a new authorization for payroll deduction. The change in rate shall be
effective fifteen (15) days following the Company’s receipt of the new
authorization.

 

        7.    Grant of
Option.

 

        (a)   On
the Offering Date of each six month offering period, each eligible Employee
participating in the Plan shall be granted an option to purchase (at the per
share option price) up to a number of shares of the Company’s Common Stock
determined by dividing such Employee’s payroll deductions to be accumulated
during such offering period (not to exceed an amount equal to ten percent (10%)
of his Compensation as of the date of the commencement of the applicable
offering period) by eighty-five percent (85%) of the fair market value of a
share of the Company’s Common Stock on the Offering Date, subject to the
limitations set forth in Section 3(b) and 12 hereof. Fair market value of
a share of the Company’s Common Stock shall be determined as provided in
Section 7(b) herein. Notwithstanding the foregoing, no employee shall be
granted an option to purchase more than 5,000 shares of the Company’s Common
Stock during any six-month offering period.

 

        (b)   The
option price per share of the shares offered in a given offering period shall
be the lower of: (i) 85% of the fair market value of a share of the Common
Stock of the Company on the Offering Date; or (ii) 85% of the fair market
value of a share of the Common Stock of the Company on the Exercise Date. The
fair market value of the Company’s Common Stock on a given date shall be the
mean of the reported bid and asked prices for that date except that the fair
market value on the Offering Date of the initial offering period shall be the
initial public offering price.

 

        8.    Exercise of
Option.    Unless a participant withdraws
from the Plan as provided in paragraph 10, his option for the purchase of
shares will be exercised automatically on the Exercise Date of the offering
period, and the maximum number of full shares subject to option will be
purchased for him at the applicable option price with the accumulated payroll
deductions in his account. If the total amount of payroll deductions for a
participant during the offering period exceeds the purchase price of such
shares as determined in Section 7(a), such excess amount will be refunded
to the participant.

 

        9.    Delivery.    As
promptly as practicable after the Exercise Date of each offering, the Company
shall arrange the delivery to each participant, as appropriate, of a
certificate representing the shares purchased upon exercise of his option. Any
cash remaining to the credit of a participant’s account under the Plan after a
purchase by him of shares at the termination of each offering period, or which
is insufficient to purchase a full share of Common Stock of the Company, shall
be returned to said participant.

 

        10.    Withdrawal;
Termination of Employment.

 

        (a)   A
participant may withdraw all but not less than all the payroll deductions
credited to his account under the Plan at any time prior to the Exercise Date
of the offering period by giving written notice to the Company. All of the
participant’s payroll deductions credited to his account will be paid to him
promptly after receipt of his notice of withdrawal and his option for the
current period will be automatically terminated, and no further payroll
deductions for the purchase of shares will be made during the offering period.

 

        (b)   Upon
termination of the participant’s employment prior to the Exercise Date of the
offering period for any reason, including retirement or death, the payroll
deductions credited to his account will be

 

 

returned
to him or, in the case of his death, to the person or persons entitled thereto
under paragraph 14, and his option will be automatically terminated.

 

        (c)   in
the event an Employee fails to remain in the continuous employ of the Company
for at least twenty (20) hours per week during the offering period in
which the employee is a participant, he will be deemed to have elected to
withdraw from the Plan and the payroll deductions credited to his account will
be returned to him and his option terminated.

 

        (d)   A
participant’s withdrawal from an offering will not have any effect upon his
eligibility to participate in a succeeding offering or in any similar plan
which may hereafter be adopted by the Company.

 

        11.    Interest.    No
interest shall accrue on the payroll deductions of a participant in the Plan.

 

        12.    Stock.

 

        (a)   The
maximum number of shares of the Company’s Common Stock that shall be made available
for sale under the Plan shall be 1,000,000 shares, subject to adjustment upon
changes in capitalization of the Company as provided in paragraph 18. If
the total number of shares which would otherwise be subject to options granted
pursuant to Section 7(a) hereof on the Offering Date of an offering period
exceeds the number of shares then available under the Plan (after deduction of
all shares for which options have been exercised or are then outstanding), the
Company shall make a pro rata allocation of the shares remaining available for
option grant in as uniform a manner as shall be practicable and as it shall
determine to be equitable. In such event, the Company shall give written notice
of such reduction of the number of shares subject to the option to each
Employee affected thereby and shall similarly reduce the rate of payroll
deductions, if necessary.

 

        (b)   The
participant will have no interest or voting right in shares covered by his
option until such option has been exercised.

 

        (c)   Shares
to be delivered to a participant under the Plan will be registered in the name
of the participant or in the name of the participant and his spouse.

 

        13.    Administration.    The
Plan shall be administered by the Board of Directors of the Company or a
committee appointed by the Board. The administration, interpretation or
application of the Plan by the Board or its committee shall be final,
conclusive and binding upon all participants. Members of the Board who are
eligible Employees are permitted to participate in the Plan, provided that:

 

        (a)   Members
of the Board who are eligible to participate in the Plan may not vote on any
matter affecting the administration of the Plan or the grant of any option
pursuant to the Plan.

 

        (b)   If
a Committee is established to administer the Plan, no member of the Board who
is eligible to participate in the Plan may be a member of the Committee.

 

        14.    Designation
of Beneficiary.

 

        (a)   A
participant may file a written designation of a beneficiary who is to
receive any shares and cash, if any, from the participant’s account under the
Plan in the event of such participant’s death subsequent to the end of the
offering period but prior to delivery to him of such shares and cash. In 

 

 

addition, a participant may file a written
designation of a beneficiary who is to receive any cash from the participant’s
account under the Plan in the event of such participant’s death prior to the
Exercise Date of the offering period.

 

        (b)   Such
designation of beneficiary may be changed by the participant at any time by
written notice. In the event of the death of a participant and in the absence
of a beneficiary validly designated under the Plan who is living at the time of
such participant’s death, the Company shall deliver such shares and/or cash to
the executor or administrator of the estate of the participant, or if no such
executor or administrator has been appointed (to the knowledge of the Company),
the Company, in its discretion, may deliver such shares and/or cash to the
spouse or to any one or more dependents or relatives of the participant, or if
no spouse, dependent or relative is known to the Company, then to such other
person as the Company may designate.

 

        15.    Transferability.    Neither
payroll deductions credited to a participant’s account nor any rights with
regard to the exercise of an option or to receive shares under the Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than
by will, the laws of descent and distribution or as provided in
paragraph 14 hereof) by the participant. Any such attempt at assignment,
transfer, pledge or other disposition shall be without effect, except that the
Company may treat such act as an election to withdraw funds in accordance with
paragraph 10.

 

        16.    Use of
Funds.    All payroll deductions received or
held by the Company under the Plan may be used by the Company for any corporate
purpose, and the Company shall not be obligated to segregate such payroll
deductions.

 

        17.    Reports.    Individual
accounts will be maintained for each participant in the Plan. Statements of
account will be given to participating Employees semi-annually promptly
following the Exercise Date, which statements will set forth the amounts of
payroll deductions, the per share purchase price, the number of shares
purchased and the remaining cash balance, if any.

 

        18.    Adjustments Upon Changes in Capitalization.    Subject
to any required action by the stockholders of the Company, the number of shares
of Common Stock covered by each option under the Plan which has not yet been
exercised and the number of shares of Common Stock which have been authorized
for issuance under the Plan but have not yet been placed under option
(collectively, the “Reserves”), as well as the price per share of Common Stock
covered by each option under the Plan which has not yet been exercised, shall
be proportionately adjusted for any increase or decrease in the number of
issued shares of Common Stock resulting from a stock split or the payment of a
stock dividend (but only on the Common Stock) or any other increase or decrease
in the number of shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been “effected
without receipt of consideration”. Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issue by the Company of shares of stock
of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect
to, the number or price of shares of Common Stock subject to an option.

 

        The
Board may, if it so determines in the exercise of its sole discretion, also
make provision for adjusting the Reserves, as well as the price per share of
Common Stock covered by each outstanding option, in the event that the Company
effects one or more reorganizations, recapitalizations, rights offerings or
other increases or reductions of shares of its outstanding Common Stock, and in
the event of the Company being consolidated with or merged into any other
corporation.

 

 

        19.    Amendment or
Termination.    The Board of Directors of
the Company may at any time terminate or amend the Plan. No such termination
can affect options previously granted, nor may an amendment make any change in
any option theretofore granted which adversely affects
the rights of any participant, nor may an amendment be made without prior
approval of the stockholders of the Company if such amendment would:

 

        (a)   increase the number of shares that may be issued under the
Plan;

 

        (b)   Permit
payroll deductions at a rate in excess of ten percent (10%) of the participant’s
Compensation;

 

        (c)   Modify
the requirements concerning which employees (or class of employees) are
eligible for participation in the Plan; or

 

        (d)   Materially
increase the benefits which may accrue to participants under the Plan.

 

        20.    Notices.    All
notices or other communications by a participant to the Company under or in connection
with the Plan shall be deemed to have been duly given when received in the form
specified by the Company at the location, or by the person, designated by the
Company for the receipt thereof.

 

        21.    Stockholder
Approval.    Continuance of the Plan shall
be subject to approval by the stockholders of the Company within twelve months
before or after the date the Plan is adopted. If such share- holder approval is
obtained at a duly held stockholders’ meeting, it may be obtained by the
affirmative vote of the holders of a majority of the outstanding shares of the
Company present or represented and entitled to vote thereon, which approval
shall be:

 

        (a)   (1)
solicited substantially in accordance with Section 14(a) of the Securities
Act of 1934, as amended (the “Act”) and the rules and regulations promulgated
thereunder, or (2) solicited after the Company has furnished in writing to
the holders entitled to vote substantially the same information concerning the
Plan as that which would be required by the rules and regulations in effect
under Section 14(a) of the Act at the time such information is furnished;
and

 

        (b)   obtained at or prior to the first annual meeting of
stockholders held subsequent to the first registration of Common Stock under
Section 12 of the Act.

 

        In
the case of approval by written consent, it must be obtained by the unanimous
written consent of all stockholders of the Company.

 

        22.    Conditions Upon Issuance of Shares.    Shares
shall not be issued with respect to an option unless the exercise of such
option and the issuance and delivery of such shares pursuant thereto shall
comply with all applicable provisions of law, domestic or foreign, including,
without limitation, the Securities Act of 1933, as amended, the Securities
Exchange Act of 1934, as amended, the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the shares
may then be listed, and shall be further subject to the approval of counsel for
the Company with respect to such compliance.

 

        As
a condition to the exercise of an option, the Company may require the person
exercising such option to represent and war rant at the time of any such
exercise that the shares are being purchased only for investment and without
any present intention to sell or distribute such shares if, in the opinion of

 

 

counsel
for the Company, such a representation is required by any of the aforementioned
applicable provisions of law.Exhibit 10.2

 

DIRECTOR COMPENSATION PROGRAM

(Effective May 19, 2005)

 

Annual Retainers.

The non-executive chairman of the board of directors currently receives
an annual retainer of $100,000.  Each of
the other non-employee directors receives an annual retainer of $20,000.

 

The chairman of the audit committee of the board of directors receives
an annual retainer of $10,000. The chairperson for each of the board’s other
committees receives an annual retainer of $5,000.

 

Board and Committee Meeting Attendance Fees.

The non-employee directors receive $2,000 per board meeting attended in
person and $2,000 per committee meeting attended in person, but only if the
committee meeting is not held on the same day as a board meeting.  Non-employee directors are also reimbursed
for expenses incurred in connection with attendance at board and committee
meetings.

 

The non-employee directors do not receive compensation for the first
four telephonic board and telephonic committee meetings that occur during the
year (the yearly period from one annual meeting to the next) and receive $1,000
per telephonic board or committee meeting attended thereafter.

 

Periodic Equity Awards.

The board of directors periodically assesses potential equity awards to
non-employee directors in lieu of an annual automatic grant of stock options,
as contemplated under the Company’s Amended and Restated 2001 Equity Incentive
Plan.  The board of directors suspended
the automatic grants in May of 2004.  On
May 19, 2005, the board of directors approved the grant of 12,000 shares of
restricted stock to each of the Company’s non-employee directors.  The restrictions applicable to the restricted
stock grants automatically lapse immediately prior to the next annual meeting
of the Company’s stockholders to be held in 2006.

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