Document:

<PAGE>

                                                                 Exhibit 10.1

                                EMPLOYMENT AGREEMENT

    This Employment Agreement (hereinafter "Agreement") is entered into as of
th 17th of April, 2000, by and between Longs Drug Stores California, Inc., a
California corporation (hereinafter "Company") and Steven F. McCann, an
individual (hereinafter "McCann").

    WHEREAS, Company desires to have McCann as an enmployee of Company; and

    WHEREAS, McCann desires to be hired as an employee of Company.

    NOW, THEREFORE, the parties agree as follows:

1.  The Position shall be Senior Vice President, Chief Financial Officer, and
    Treasurer, (hereinafter "Position") reporting to the CEO.

2.  Bi-weekly pay will be Eight Thousand Seventy-Six Dollars and Ninety-Three
    Cents ($8,076.93), which is Two Hundred Ten Thousand Dollars ($210,000.00)
    per year, with participation in Company's VPIP Progam at One Hundred Ninety
    Thousand Dollars ($190,000.00) per year. McCann's bonus factor will be set
    at point zero zero one three five (0.00135) to provide assurance of
    reaching the bonus target in the period between 2nd Quarter, FY01 and 1st
    Quarter, FY'02.

3.  Company will provide a Transition Bonus of One Hundred Twenty Thousand
    Dollars ($120,000.00) to assist in the transition to its pay and bonus
    system of compensation.

4.  McCann will begin to accrue vacation immediately at the rate of four (4)
    weeks per year.

5.  McCann will be offered a Non-qualified Stock Option of twenty thousand
    (20,000) shares within a month of his hire date at the then current price.

    - Fast vesting at the following rates:

        Three (3) years - Thirty Percent (30%);
        Four (4) years - Sixty Percent (60%); and
        Five (5) years - One Hundred Percent (100%)

    - Immediate vesting with an "uninvited change of corporate control"

                                      1

<PAGE>

6.  Company will provide McCann a Termination Agreement commensurate with the
    Position.

7.  Company agrees to buy McCann's home (residence and property) in Tennessee
    at an agreed upon price (average of two [2] appraisals) with timing and
    conditions to be agreed upon.

8.  Relocation Allowance - To aid in in relocation and cost of the housing
    difference in the Walnut Creek area, an amount will be paid equal to the
    net present value of the difference in interest payments for a ten (10)
    year period that is required to secure a comparable residence in Walnut
    Creek, California. It is agreed that the difference in home value is Four
    Hundred Fifty-Seven Thousand Thousand Dollars ($457,000.00) and the interst
    rate is seven point eight seven five percent (7.875%) and therefore the net
    present value of increased interst over a ten (10) year period is Two
    Hundred Fifty Thousand One Hundred Sixty-Three Dollars ($250,163.00).
    Company agrees to fund one (1) point amounting to Six Thousand Five Hundred
    Dollars ($6,500.00) to be included in the relocation allowance for a total
    relocation allowance of Two Hundred Fifty-Six Thousand Six Hundred
    Sixty-Three Dollars ($256,663.00).

    This relocation allowance will be provided as a loan for which a
    promissary note will be provided as a loan for which a Promissary Note will
    be prepared and signed. It is agreed that Company will forgive one-fifth
    (1/5) of this loan plus accrued interest at the end of each of the first
    five (5) years of McCann's employment at which time Company will make a
    stock grant in shares with the then current value equal to the amount so
    forgiven. This stock grant is intended to help offset any taxation
    resulting from this arrangement.

9.  Company agrees to pay those reasonable moving expenses including travel
    and lodging for the family to make a trip to California prior to the
    intended move. Any of these expenses deemed to be taxable, and for which
    Company will issue the appropriate 1099 form, will be reimbursed at Two
    Hundred Percent (200%).

10. Company will immediately place McCann and his family on the Excutive
    Medical Plan (which includes vision care).

11. Company agrees that for a two (2) year initial period of employment it
    will have at least limited liability for severance. Should the initial work
    arrangements be dissolved the parties agree as follows:

                                      2

<PAGE>

    First, should Company choose to sever its employment relationship with
    McCann in the first two (2) years for any reason (other than "for cause"),
    Company would forgive any outstanding Notes and accrued interest and
    provide a cash payment equal to one (1) year's salary plus ninety (90)
    percent of the estimated bonus for the following year. For purposes of this
    calculation, the estimated bonus will be based on Company's operating plan.
    At the conclusion of the one (1) year period, a settlement of the amount
    due to either McCann or Company will occur. This settlement will true up
    the ninety percent (90%) of the estimated bonus to the actual amount as if
    McCann had been employed during that period of time.

    Second, should McCann cause his employment to be terminated by his
    resignation or by his being discharged for gross and willful misconduct
    relating to the performance by McCann of his duties at the Company, all
    outstanding notes would immediately become due and payable with accrued
    interest except as otherwise herein provided. No other compensation would
    be due other than that accrued to that point.

    IN WITNESS WHEREOF, the parties have executed the Agreement as of the
date first written above.

Steven F. McCann,                 LONGS DRUG STORES CALIFORNIA, INC.
An Individual                     a California Corporation

By /s/ Steven F. McCann           By  /s/ S.D. Roath
  --------------------------          --------------------------------

                                  Its President & CEO
                                      --------------------------------

                                  By  /s/ Q.D. Jones
                                      --------------------------------

                                  Its Secretary
                                      --------------------------------

                                      3<PAGE>

                                                                    Exhibit 4.10

                      SECOND AMENDMENT TO RIGHTS AGREEMENT
             AND CERTIFICATION OF COMPLIANCE WITH SECTION 27 THEREOF

         This Amendment, dated as of September 10, 2000 (the "Amendment"), to
the Rights Agreement, dated as of May 21, 1998 (as amended December 10, 1998,
the "Agreement"), between Dura Pharmaceuticals, Inc., a Delaware corporation
(the "Company"), and ChaseMellon Shareholder Services, L.L.C., a limited
liability company (the "Rights Agent"). Capitalized terms used in this Amendment
without definition shall have the respective meanings ascribed to them in
Agreement.

         Pursuant to Section 27 of the Agreement, this Amendment is being
executed by the Company and the Rights Agent for the purpose of amending the
Agreement as set forth below:

         The Agreement is hereby amended as follows:

         1.       Section 1(a) shall be amended by inserting the following at
the end of the definition of "Acquiring Person":

                  "Notwithstanding the foregoing, neither of Elan Corporation,
                  plc, a public limited company organized under the laws of
                  Ireland ("Acquiror"), or Carbon Acquisition Corp., a Delaware
                  corporation, or any subsidiary of Acquiror ("Merger Sub"),
                  shall be an Acquiring Person solely by virtue of the execution
                  of the Agreement and Plan of Merger, dated as of September 10,
                  2000 (the "Merger Agreement"), by and among Acquiror, Merger
                  Sub and the Company, or the consummation of the Merger (as
                  defined in the Merger Agreement)."

         2.       Section 1(aj) shall be amended by inserting the following at
the end of the definition of "Shares Acquisition Date":

                  "Notwithstanding the foregoing, no Shares Acquisition Date
                  shall occur solely by reason of the execution of the Merger
                  Agreement or the consummation of the Merger (as defined in the
                  Merger Agreement)."

         3.       Section 1(ao) shall be amended by inserting the following at
the end of the definition of "Triggering Event":

                  "Notwithstanding the foregoing, a "Triggering Event" shall not
                  occur solely by reason of the execution of the Merger
                  Agreement or the consummation of the Merger (as defined in the
                  Merger Agreement)."

         4.       Section 3(a) shall be amended by inserting the following at
the end of the section:

                  "Notwithstanding the foregoing or any provision to the
                  contrary in this Agreement, a Distribution Date shall not
                  occur solely by reason of the execution of the Merger
                  Agreement or the consummation of the Merger (as defined in the
                  Merger Agreement)."

<PAGE>

         5.       Section 7(a) shall be amended by inserting and deleting the
following into the definition of "Expiration Date":

                  deleting the word "or" immediately preceding clause (iii)
                  thereto and replacing all of clause (iii) and the text
                  following clause (iii), with "(iii) immediately prior to the
                  Effective Time (as defined in the Merger Agreement) or (iv)
                  the time at which such Rights are exchanged as provided in
                  Section 24 hereof (the earlier of (i), (ii), (iii) and (iv)
                  being the "Expiration Date"). The Company, upon having
                  knowledge thereof, will promptly notify the Rights Agent of
                  the anticipated Effective Time."

         6.       Section 13 shall be amended by inserting the following as
Section 13(f) at the end of Section 13:

                  "(f) Notwithstanding the foregoing, no Section 13 Event shall
                  occur solely by reason of the execution of the Merger
                  Agreement or the consummation of the Merger (as defined in the
                  Merger Agreement)."

         7.       This Amendment shall be deemed effective as of September 10,
2000 as if executed by both parties hereto on such date.

         8.       This Amendment shall be deemed to be a contract made under the
laws of the State of Delaware and for all purposes shall be governed by and
construed in accordance with the laws of such State applicable to contracts to
be made and performed entirely within such State.

         9.       This Amendment may be executed in any number of counterparts
and each of such counterparts shall for all purposes be deemed to be an
original, and all such counterparts shall together constitute but one and the
same instrument.

         10.      Except as amended hereby, the Agreement shall remain in full
force and effect.

         The undersigned officer of the Company, being an appropriate officer of
         the Company and authorized to do so by resolution of the Board of
         Directors of the Company dated as of September 8, 2000, hereby
         certifies to the Rights Agent that these amendments are in compliance
         with the terms of Section 27 of the Agreement.

                                       2
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed and attested, all as of the day and year first above written.

                                         DURA PHARMACEUTICALS, INC.

                                         By:  /s/ Erle T. Mast
                                            ------------------------------------
                                            Name: Erle T. Mast
                                            Title:   Vice President, Finance

ATTEST:

By:  /s/ John R. Cook
   -------------------------------------
   Name:  John R. Cook
   Title: Vice President, Associate General Counsel
          And Secretary

                                         CHASEMELLON SHAREHOLDER
                                         SERVICES, L.L.C., as Rights Agent

                                         By:  /s/ Sharon Knepper
                                            ------------------------------------
                                            Name:  Sharon Knepper
                                            Title: Vice President

ATTEST:

By:  /s/ Rosa Bautista
   --------------------------------------
   Name:  Rosa Bautista
   Title: Relationship Manager

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]