Document:

Exhibit
10.1

AMENDMENT NO. 1

TO THE

2007 EMPLOYEE EQUITY
PARTICIPATION PLAN

OF
COVANCE INC.

WHEREAS, Covance Inc. (the “Company”)
has adopted the 2007 Employee Equity Participation Plan (the “Plan”); and

WHEREAS, Section 4(c) of
the Plan permits the Board of Directors of the Company to amend the Plan,
subject to certain limitations; and

WHEREAS, the Board of the
Company desires to amend the Plan to prohibit the payment by the Company of
cash for out of the money options;

NOW, THEREFORE, the Plan is
hereby amended as follows:

FIRST: By amending Section 7 of
the Plan in its entirety as follows:

“In the event that
any dividend or other distribution (whether in the form of Shares, other
securities, or other property), extraordinary cash dividend, recapitalization,
stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase, or exchange of Shares or other
securities, the exercisability of stock purchase rights received under any
shareholders’ rights plan, the issuance of warrants or other rights to purchase
Shares or other securities, or other similar corporate transaction or event
materially affects the Shares with respect to which Awards have been or may be
issued under the Plan, then the Committee shall, in a manner and to the extent
that the Committee deems appropriate to prevent any dilution or enlargement of
the benefits or potential benefits intended to be made available under the
Plan:

(a)  adjust
the number and type of securities that thereafter may be issued under the Plan,

(b)  adjust
the number and type of securities subject to outstanding Awards,

(c)   adjust
the Grant Price or purchase price with respect to any Award, or

(d)   make
provision for a cash payment to the holder of an outstanding Award; provided,
however, that in no event shall a cash payment be made for any Option or SAR
which has an exercise or grant price that is below the current Fair Market
Value of the Common Stock.

However, no
adjustment shall be authorized with respect to incentive stock options to the
extent that the adjustment would cause the options to violate Section 422(b) of
the Code or any successor provision. In addition, the number of securities
subject to any Award denominated in Shares shall always be a whole number.

In the event the
Corporation acquires another entity by means of a merger, consolidation,
acquisition of property or stock, reorganization or otherwise, the Committee
shall be authorized to cause the Corporation to issue or to assume stock
options or stock appreciation rights, whether or not in a transaction to which
Section 424(a) of the Code applies, by means of substitution of new options or
rights for previously issued options or rights or an assumption of previously
issued options or rights. Any substitute Awards granted under the Plan shall
not count against the share limitations set forth in Section 6 hereof, to the
extent permitted by Section 303A.08 of the Corporate Governance Standards of
the New York Stock Exchange.

Subject to any
required action by the Corporation’s shareholders, if the Corporation is a
party to any merger or consolidation where the Corporation is not the survivor,
a Participant holding an outstanding Award valued directly or indirectly by
Shares shall be entitled to receive, upon the exercise of the Award, the same
per Share consideration (cash, shares or other consideration) on the same terms
that a holder of

 

the same number of
Shares that are subject to the Participant’s Award would be entitled to receive
pursuant to the merger or consolidation.”

SECOND:  By amending Section 11 of the Plan in its
entirety as follows:

“During the
lifetime of a Participant, the Award shall be exercisable only by such
Participant and Awards shall not be transferable or assignable other than by
will or the laws of descent and distribution, or pursuant to qualified domestic
relations orders as defined in or meeting the requirements of the Code or Title
I of the Employee Retirement Income Security Act of 1974, as amended provided,
however, that, in the discretion of the Committee, a Non-Statutory
Option may, in connection with a Participant’s estate plan, be assigned in
whole or in part during the Participant’s lifetime to one or more members of
the Participant’s immediate family or to a trust established exclusively for
one or more such family members. The assigned portion may only be exercised by
the person or persons who acquire a proprietary interest in the Option pursuant
to the assignment.  The terms applicable
to the assigned portion shall be the same as those in effect for the Option
immediately prior to such assignment and shall be set forth in such documents
issued to the assignee as the Committee may deem appropriate.  Notwithstanding the forgoing, in no event
shall any Award be transferred for value or consideration.”

THIRD: Except to the extent
herein above set forth, the Plan shall remain in full force and effect.

IN WITNESS WHEREOF, the Board of
Directors of the Company has caused this Amendment to the Plan to be executed
by a duly authorized officer of the Company as of March 23, 2007.EXHIBIT
4.2

TorreyPines Therapeutics, Inc.

WARRANT TO PURCHASE
COMMON STOCK

	
  No. CW-[    ]

  	
  October
  3, 2006

  

Void
After October 3, 2009

THIS CERTIFIES THAT,
for value received, [        ], with its principal offices at [      ],
or its permitted assigns (the “Holder”), is entitled to subscribe for and purchase at
the Exercise Price (defined below) from TorreyPines Therapeutics, Inc., a
Delaware corporation, with its principal office at 11085 North Torrey Pines
Road, Suite 300, La Jolla, CA 92037 (the “Company”) up to [        ]
shares of the Common Stock of the Company (the “Common Stock”), subject to adjustment
as provided herein.  This Warrant is one
of a series of Warrants being issued pursuant to the terms of the Agreement and
Plan of Merger and Reorganization, dated June 7, 2006, by and among the Company (formerly Axonyx Inc.), TorreyPines
Therapeutics, Inc., a Delaware corporation, and Autobahn Acquisition, Inc., a Delaware corporation, as may be amended in
accordance with its terms (the “Merger
Agreement”).  Capitalized terms not otherwise defined
herein shall have the respective meanings ascribed to such terms in the Merger
Agreement.

1.             Definitions.  As
used herein, the following terms shall have the following respective meanings:

(a)           “Exercise Period” shall mean the
period commencing on the date hereof and ending October 3, 2009, unless sooner
terminated as provided below.

(b)           “Exercise Price” shall mean $8.32, subject to adjustment pursuant to
Section 5 below.

(c)           “Exercise Shares” shall mean the
shares of the Company’s Common Stock issuable upon exercise of this Warrant,
subject to adjustment pursuant to the terms herein, including but not limited
to adjustment pursuant to Section 5 below.

2.             Exercise of Warrant.

2.1          Exercise by Holder. 
The rights represented by this Warrant may be exercised in whole or in
part at any time during the Exercise Period, by delivery of the following to
the Company at its address set forth above (or at such other address as it may
designate by notice in writing to the Holder):

(a)           An executed Notice of Exercise in the
form attached hereto;

(b)           Payment of the aggregate Exercise Price,
equal to (i) the Exercise Price multiplied by (ii) the number of Exercise
Shares for which the Warrant is being exercised, either by check or wire
transfer of immediately available funds; and

 1
 

(c)           This Warrant.

Upon the exercise of the rights represented by this
Warrant, shares of Common Stock shall be issued for the Exercise Shares so
purchased, and shall be registered in the name of the Holder or persons
affiliated with the Holder, if the Holder so designates, within five business
days after the receipt by the Company of all of the items designated in clauses
(a), (b) and (c) above and shall be issued in certificate form and delivered to
the Holder, if so requested.

The person in whose name any Exercise Shares are to be
issued upon exercise of this Warrant shall be deemed to have become the holder
of record of such shares on the date on which this Warrant was surrendered and
payment of the Exercise Price was made, irrespective of the date of issuance of
the shares of Common Stock, except that, if the date of such surrender and
payment is a date when the stock transfer books of the Company are closed, such
person shall be deemed to have become the holder of such shares at the close of
business on the next succeeding date on which the stock transfer books are
open.

2.2          Partial Exercise by Holder.  If
this Warrant is exercised by Holder in part only, the Company shall, upon surrender
of this Warrant, execute and deliver, within 30 days of the date of exercise, a
new Warrant evidencing the rights of the Holder, or such other person as shall
be designated in the Notice of Exercise, to purchase the balance of the
Exercise Shares purchasable hereunder. 
In no event shall this Warrant be exercised for a fractional Exercise
Share, and the Company shall not distribute a Warrant exercisable for a
fractional Exercise Share.  Fractional
Exercise Shares shall be treated as provided in Section 4 hereof.

3.             Covenants of the Company.

3.1          Covenants as to Exercise Shares.  The Company covenants and agrees that all
Exercise Shares that may be issued upon the exercise of the rights represented
by this Warrant will, upon issuance, be duly authorized and validly issued and
outstanding, fully paid and nonassessable, and free from all taxes, liens and
charges with respect to the issuance thereof. 
The Company further covenants and agrees that the Company will at all
times during the Exercise Period, have authorized and reserved, free from
preemptive or other similar rights, a sufficient number of shares of its Common
Stock to provide for the exercise of the rights represented by this
Warrant.  If at any time during the
Exercise Period the number of authorized but unissued shares of Common Stock
shall not be sufficient to permit exercise of this Warrant, the Company will
take such corporate action as may be necessary to increase its authorized but
unissued shares of Common Stock (or other securities as provided herein) to
such number of shares as shall be sufficient for such purposes.

3.2          No Impairment.  Except and to the extent as waived or
consented to by the Holder in accordance with Section 9 hereof, the Company
will not, by amendment of its Certificate
of Incorporation (as such may be amended from time to time), or through any
means, avoid or seek to avoid the observance or performance of any of the terms
to be observed or performed hereunder by the Company, but will at all times in
good faith carry out of all the provisions of this Warrant and take all such
action as may be necessary or appropriate in order to protect the exercise
rights of the Holder against impairment.

 2
 

3.3          Notices of Record Date.  In the event of any taking by the Company of
a record of the holders of any class of securities for the purpose of
determining the holders thereof who are entitled to receive any dividend (other
than a cash dividend which is the same as cash dividends paid in previous
quarters) or other distribution, the Company shall mail to the Holder, at least
30 days prior to the date specified herein, a notice specifying the date on
which any such record is to be taken for the purpose of such dividend or
distribution.

4.             Fractional
Shares.  No fractional shares
shall be issued upon the exercise of this Warrant as a consequence of any
adjustment pursuant hereto.  All Exercise
Shares (including fractions) issuable upon exercise of this Warrant may be
aggregated for purposes of determining whether the exercise would result in the
issuance of any fractional share.  If,
after aggregation, the exercise would result in the issuance of a fractional
share, the Company shall, in lieu of issuance of any fractional share, pay the
Holder otherwise entitled to such fraction a sum in cash equal to the product
resulting from multiplying the then current fair market value (as of the
applicable exercise date) of an Exercise Share by such fraction.

5.             Certain
Events.

5.1          Distribution of Assets.  In case the Company shall declare or make any
distribution of its assets (or rights to acquire its assets) to holders of
Common Stock as a partial liquidating dividend, by way of return of capital or
otherwise (including any such distribution effected as a dividend or
distribution to the Company’s stockholders of cash or shares (or rights to
acquire shares) of capital stock of a subsidiary) (a “Distribution”),
at any time after the initial issuance of this Warrant, then the Holder shall
be entitled upon exercise of this Warrant for the purchase of any or all of the
shares of Common Stock subject hereto, to receive the amount of such assets (or
rights) which would have been payable to the Holder had such Holder been the
holder of such shares of Common Stock on the record date for the determination
of stockholders entitled to such Distribution.

5.2          Dividends, Subdivisions, Combinations
and Reclassifications. 
The number and kind of securities purchasable upon the exercise of this
Warrant and the Exercise Price shall be subject to adjustment from time to time
upon the happening of any of the following. 
In case the Company shall (i) pay a dividend in shares of Common Stock
or make a distribution in shares of Common Stock to holders of its outstanding
Common Stock (other than as is provided in Section 5.1), (ii) subdivide its
outstanding shares of Common Stock into a greater number of shares, (iii)
combine its outstanding shares of Common Stock into a smaller number of shares
of Common Stock, or (iv) issue any shares of its capital stock in a
reclassification of the Common Stock, then the number of Exercise Shares
purchasable upon exercise of this Warrant immediately prior thereto shall be
adjusted so that the Holder shall be entitled to receive the kind and number of
Exercise Shares or other securities of the Company which it would have owned or
have been entitled to receive had such Warrant been exercised in advance
thereof.  Upon each such adjustment of
the kind and number of Exercise Shares or other securities of the Company which
are purchasable hereunder, the Holder shall thereafter be entitled to purchase
the number of Exercise Shares or other securities resulting from such
adjustment at an Exercise Price per Warrant Share or other security obtained by
multiplying the Exercise Price in effect immediately prior to such adjustment
by the number of Exercise Shares purchasable pursuant hereto immediately prior
to such adjustment and dividing by the number of

 3
 

Exercise Shares or other
securities of the Company resulting from such adjustment.  An adjustment made pursuant to this paragraph
shall become effective immediately after the effective date of such event
retroactive to the record date, if any, for such event.

5.3          Reorganization, Reclassification,
Merger, Consolidation or Disposition of Assets.  In case the Company shall reorganize its
capital, reclassify its capital stock, consolidate or merge with or into
another corporation (where the Company is not the surviving corporation or
where there is a change in or distribution with respect to the Common Stock of the
Company), or sell, transfer or otherwise dispose of all or substantially all
its property, assets or business to another corporation and, pursuant to the
terms of such reorganization, reclassification, merger, consolidation or
disposition of assets, shares of common stock of the successor or acquiring
corporation, or any cash, shares of stock or other securities or property of
any nature whatsoever (including warrants or other subscription or purchase
rights) in addition to or in lieu of common stock of the successor or acquiring
corporation (“Other Property”), are to be
received by or distributed to the holders of Common Stock of the Company, then
the Holder shall have the right thereafter to receive upon exercise of this
Warrant, the number of shares of common stock of the successor or acquiring
corporation and Other Property receivable upon or as a result of such
reorganization, reclassification, merger, consolidation or disposition of
assets by a holder of the number of shares of Common Stock for which this
Warrant is exercisable immediately prior to such event.  In case of any such reorganization,
reclassification, merger, consolidation or disposition of assets, the successor
or acquiring corporation (if other than the Company) shall expressly assume the
due and punctual observance and performance of each and every covenant and
condition of this Warrant to be performed and observed by the Company and all
the obligations and liabilities hereunder, subject to such modifications as may
be deemed appropriate (as determined in good faith by resolution of the Board
of Directors of the Company) in order to provide for adjustments of Exercise
Shares for which this Warrant is exercisable which shall be as nearly
equivalent as practicable to the adjustments provided for in this Section
5.3.  For purposes of this Section 5.3, “common
stock of the successor or acquiring corporation” shall include stock of such
corporation of any class which is not preferred as to dividends or assets over
any other class of stock of such corporation and which is not subject to
redemption and shall also include any evidences of indebtedness, shares of
stock or other securities which are convertible into or exchangeable for any
such stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any warrants or other rights to subscribe
for or purchase any such stock.  The
foregoing provisions of this Section 5.3 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of
assets.

5.4          Adjustment of Exercise Price.  The
form of this Warrant need not be changed because of any adjustment in the
number, class, and kind of shares or Other Property subject to this
Warrant.  The Company shall promptly
provide a certificate from its principal accounting officer notifying the
Holder in writing of any adjustment in the Exercise Price and/or the total
number, class, and kind of shares or Other Property issuable upon exercise of
this Warrant, which certificate shall specify the Exercise Price and number,
class and kind of shares or Other Property under this Warrant after giving
effect to such adjustment and shall set forth a brief statement of the facts
requiring such adjustment and setting forth the computation by which such
adjustment was made.

 4
 

5.5          Early Termination.  If at any time after the date hereof (i) the
Company’s Common Stock is traded on a securities exchange or the Nasdaq Capital
Market (or any other Nasdaq Market) and (ii) the average closing price of such
Common Stock for twenty (20) trading days within any thirty (30) consecutive
trading day period equals or exceeds 2 times the Exercise Price (adjusted to
reflect subsequent stock dividends, stock splits or recapitalizations or the
like), then the Company may give the Holder prompt written notice thereof (a “Termination Notice”).  If the Warrant has not been exercised by the
date thirty (30) days following the date of the Termination Notice it shall
terminate.  The provisions of this
Section 5.5 shall similarly apply to successive periods during which the
conditions specified in clauses (i) and (ii) above are satisfied.

6.             No
Stockholder Rights.  This Warrant in and
of itself shall not entitle the Holder to any voting rights or other rights as
a stockholder of the Company.

7.             Transfer
of Warrant.  Subject to this
Section 7, Holder may not transfer this Warrant in whole or in part without
prior written consent of the Company. 
Holder may transfer this Warrant to affiliates of Holder upon delivery of
this Warrant and the form of assignment attached hereto.

8.             Lost,
Stolen, Mutilated or Destroyed Warrant.  If this Warrant is
lost, stolen, mutilated or destroyed, the Company may, on such terms as to
indemnity or otherwise as it may reasonably impose (which shall, in the case of
a mutilated Warrant, include the surrender thereof), issue a new Warrant of
like denomination and tenor as the Warrant so lost, stolen, mutilated or
destroyed.  Any such new Warrant shall constitute
an original contractual obligation of the Company, whether or not the allegedly
lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable
by anyone.

9.             Modifications and Waiver. 
This Warrant and any provision hereof may be changed, waived, discharged
or terminated only by an instrument in writing signed by the Company and the
Holder.

10.          Notices, etc.  All
notices required or permitted hereunder shall be in writing and shall be deemed
effectively given: (a) upon personal delivery to the party to be notified,
(b) when sent by confirmed facsimile if sent during normal business hours
of the recipient, if not, then on the next business day, (c) five days
after having been sent by registered or certified mail, return receipt
requested, postage prepaid, or (d) one business day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt.  All
communications shall be sent to the Company at the address listed on the signature
page and to the Holder at the addresses on the Company records, or at such
other address as the Company or Holder may designate by ten days’ advance
written notice to the other party hereto.

11.          Acceptance.  Receipt
of this Warrant by the Holder shall constitute acceptance of and agreement to
all of the terms and conditions contained herein.

12.          Governing
Law.  This Warrant and all
rights, obligations and liabilities hereunder shall be governed by the laws of
the State of Delaware without regard to the principles of conflict of laws.

 5
 

13.          Descriptive Headings.  The descriptive headings of the several
paragraphs of this Warrant are inserted for convenience only and do not
constitute a part of this Warrant. The language in this Warrant shall be
construed as to its fair meaning without regard to which party drafted this
Warrant.

14.          Severability.  The invalidity or unenforceability of any
provision of this Warrant in any jurisdiction shall not affect the validity or
enforceability of such provision in any other jurisdiction, or affect any other
provision of this Warrant, which shall remain in full force and effect.

15.          Entire Agreement.  This Warrant constitutes the entire agreement
between the parties pertaining to the subject matter contained in it and
supersedes all prior and contemporaneous agreements, representations, and
undertakings of the parties, whether oral or written, with respect to such
subject matter.

[Signature Page Follows]

 6
 

In Witness Whereof,
the Company has caused this Warrant to be executed by its duly authorized
officer as of October 3, 2006.

	
  

  	
  TorreyPines
  Therapeutics, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  11085 North Torrey Pines Road

  
	
   

  	
   

  	
  Suite 300

  
	
   

  	
   

  	
  La Jolla, CA 92037

  
	
   

  	
   

  	
  Telephone: (858) 623-5665

  
	
   

  	
   

  	
  Fax: (858) 623-5666

  
	
   

  	
   

  	
  Attention: Chief Financial Officer

  
					

 

 7

NOTICE OF EXERCISE

TO:  TORREYPINES THERAPEUTICS, INC.

(1)           The undersigned hereby elects to) purchase             
shares of the Common Stock of TorreyPines Therapeutics, Inc. (the “Company”) pursuant
to the terms of the attached Warrant, and tenders herewith payment of the
exercise price in full for such shares.

(2)           Please issue a certificate or certificates representing
said shares of Common Stock in the name of the undersigned or in such other
name as is specified below:

 

	
  

  
	
  (Name)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Address)

  

 

 

(3)           If
the Warrant is not being exercised in full, please issue a new Warrant
evidencing the right of the Holder to purchase the balance of the Exercise Shares
purchasable under the Warrant, such certificate to be registered in the name of
the undersigned or in such other name as is specified below:

 

 

	
  

  
	
  (Name)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Address)

  

 

 

	
   

  	
   

  	
   

  
	
   (Date)

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Print name)

  

 

ASSIGNMENT FORM

(To assign the foregoing
Warrant, subject to compliance with applicable laws, execute this form and
supply required information.  Do not use
this form to purchase shares.)

FOR VALUE RECEIVED,
the foregoing Warrant and all rights evidenced thereby are hereby assigned to

	
  Name: 

  	
  

  

(Please Print)

	
  Address:

  	
  

  

(Please Print)

	
  Dated:

  	
  

  	
  , 200

  	
   

  	
   

  

 

 

Holder’s

	
  Signature:

  	
  

  

 

Holder’s

	
  Address:

  	
  

  

 

NOTE:  The signature to this Assignment Form must
correspond with the name as it appears on the face of the Warrant, without
alteration or enlargement or any change whatever.  Officers of corporations and those acting in
a fiduciary or other representative capacity should file proper evidence of
authority to assign the foregoing Warrant.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]