AMENDED AND RESTATED EMPLOYMENT AGREEMENT

Exhibit 10.1

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is entered into by and between Transgenomic, Inc., a Delaware corporation (the “Company”), and Craig Tuttle (“Employee”) on July 31, 2006, in order to clarify the parties’ respective obligations with respect to the income tax liabilities related to the benefits described in Section 6 hereof. This Agreement restates and supersedes that certain Employment Agreement between the parties hereto dated July 12, 2006, and for all purposes this Agreement shall be deemed to be effective as of July 12, 2006.

The Company and Employee desire to enter into an employment agreement. Accordingly, the Company and Employee agree as follows:

Section 1. Effective Date; Position; Term. This Agreement shall become effective on July 12, 2006 (the “Effective Date”). The Company shall employ Employee as its President and Chief Executive Officer. The initial term of the Agreement will be two (2) years from the Effective Date, but shall be automatically extended for additional terms of one (1) year unless either the Company or the Employee provides written notice to the other that it does not intend to extend this Agreement not later than 60 days prior to the end of the then current term.

Section 2. Position and Duties. During the term of this Agreement:

(a) Employee shall have the normal responsibilities, duties and authorities of President and Chief Executive Officer of the Company described in its bylaws and such other reasonable duties as may be assigned to him by the Board of Directors of the Company (the “Board”) from time to time.

(b) Employee shall report to the Board, Employee shall perform faithfully the executive duties assigned to him to the best of his ability in a diligent, trustworthy, businesslike and efficient manner and will devote his full business time and attention to the business and affairs of the Company and its subsidiaries and affiliates; provided, however, that Employee may serve as a director of or a consultant to nonprofit corporations, civic organizations, professional groups and similar entities.

Section 3. Basic Compensation. As compensation for his services hereunder, the Company shall pay to Employee a base salary of $250,000 per year for the initial two year term of this Agreement. Employee’s base salary may be increased with respect to subsequent terms of this Agreement as determined by the compensation committee of the Board (the “Compensation Committee”).

Base Salary shall be payable in equal installments in arrears on a biweekly basis or as otherwise may be mutually agreed upon.

Section 4. Bonus. In addition to the Base Salary, Employee shall be eligible to receive an annual bonus of up to 20% of base salary (pro-rated for 2006) based on Employee’s performance in conjunction with specific mutually agreed goals and objectives and formulas determined by the Compensation Committee in its sole discretion prior to each calendar year. Bonuses, if any, will be payable at such time or times during or following each calendar year as shall be determined by the Compensation Committee in its sole discretion. Any bonus for 2006 will be based upon a plan prepared by Employee and approved by the Compensation Committee within sixty (60) days of the Effective Date of this Agreement.

Section 5. Participation in Employee Benefit Plans. Employee will be entitled to participate in all Company salaried employee benefit plans and programs, subject to the terms and conditions of each such employee benefit plan or program and to the extent commensurate with his position as President and Chief Executive Officer.

Section 6. Other Benefits.

Section 7. Business Expenses. The Company shall reimburse Employee for all reasonable expenses incurred by him in the course of performing his duties under this Agreement which are consistent with the Company’s policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company’s requirements with respect to reporting and documentation of such expenses.

Section 8. Stock Options and Option Shares. Employee will be granted options to purchase shares of the Company’s common stock under its stock option plan on the terms described below, subject to final approval of the Compensation Committee. The price of the options will be the fair market value on the date the options are granted. The options will vest equally on the next three anniversary dates of the grant. Granted and unvested options will vest upon the Company being acquired or merged into another entity.

Section 9. Termination of Employment.

(a) Events of Termination and Severance Payment. In the event that, during the term of this Agreement, Employee is involuntarily discharged for any reason other than for Just Cause (as defined below), Employee shall be entitled to receive a severance payment (the “Severance Payment”) equal to the amount of the Employee’s then current annual base salary. The Severance Payment will be paid to Employee over a period of twelve months in the manner described in Section 3 and will be subject to applicable income tax withholding consistent with the Company’s normal payroll practices. Additionally, upon the Company being acquired or merged into another entity, Transgenomic, Inc. will honor the Severance Payment in the event that the Employee’s position was eliminated as a result of the merger or acquisition.

(b) “Just Cause” being defined as any criminal act (felony) being committed by employee, if employee commits fraud or dishonesty toward the Company, other significant activities materially harmful to the reputation of the Company as reasonably defined by the Company, willful refusal to perform or substantial disregard of the duties properly assigned, significant violation of any statutory or common law or a material violation of Sections 11 or 12 below, not reasonably performing assigned tasks to meet minimum expectations of the position, or intentionally takes any other action materially detrimental to the best interests of the Company

(c) Effect of Breach of Noncompetition Provisions. In the event Employee breaches or otherwise fails to comply with the provisions of Section 11 or 12 below, then, in addition to any other remedies provided herein or at law or in equity, the Company shall have the right to require return of any severance payment made to the Employee. Return of such Severance Payment pursuant to the preceding sentence shall not relieve Employee’s obligations pursuant to Sections 11 and 12 below.

Section 10. Assignment and Succession.

(a) The rights and obligations of the Company under this Agreement shall inure to the benefit of and be binding upon its respective successors and assigns, and Employee’s rights and obligations hereunder shall inure to the benefit of and be binding upon his successors and permitted assigns, whether so expressed or not.

(b) Employee acknowledges that the services to be rendered by him hereunder are unique and personal. Accordingly, Employee may not pledge or assign any of his rights or delegate any of his duties or obligations under this Agreement without the express prior written consent of the Board.

(c) The Company may not assign its interest in or obligations under this Agreement without the prior