<PAGE>

                                                                    EXHIBIT 10.4

                               TRANSGENOMIC, INC.

                           FIRST AMENDED AND RESTATED

                             SHAREHOLDERS AGREEMENT

         THIS AGREEMENT, originally entered into as of the 1st day of July,
1997, by and among TRANSGENOMIC, INC., a Delaware corporation (the
"Corporation"), and each of the holders of the Corporation's Common Stock as of
such date and such additional persons set forth in Schedule A hereto which
become a party hereto from time to time thereafter (collectively, the
"Shareholders") is hereby amended and restated as provided herein as of the 24th
day of February, 1998.

                              W I T N E S S E T H:

         WHEREAS, the Shareholders own all of the issued and outstanding shares
of Common Stock, par value $.01 per share, of the Corporation (the "Shares");
and

         WHEREAS, the Shareholders and the Corporation believe that it is in
their mutual best interest to impose certain restrictions and obligations upon
themselves and upon the transfer of the Shares;

         NOW, THEREFORE, in consideration of the premises and mutual covenants
set forth herein, it is mutually agreed by and among the parties as follows:

         SECTION 1. DEFINITIONS. As used in this Agreement, unless the context
otherwise requires:

                  "AGREEMENT" means this Shareholders' Agreement and any
         amendments and supplements hereto.

                  "BONA FIDE OFFER" means a written offer from a financially
         responsible party or parties identified therein by name and address,
         reasonably appearing able to comply with the terms of such offer, and
         accompanied by a deposit in an amount equal to or in excess of 10% of
         the purchase price. In the event that the person making such offer is a
         partnership or corporation, all general partners and all limited
         partners or shareholders owning more than 10% of its partnership
         interests or stock shall be identified.

                  "CONTROL SHAREHOLDER" means any Shareholder who, at the time
         in question, is a director or executive officer of the Corporation or
         who beneficially owns (as determined pursuant to Rule 13d-3 under the
         Securities Exchange Act of 1934) more than 10% of the issued and
         outstanding Shares.

                  "CORPORATION" means Transgenomic, Inc., a Delaware
         corporation.


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                  "EFFECTIVE DATE" means the date upon which a Notice of Offer
         is deemed to have been first delivered to the Corporation.

                  "NOTICE OF EXERCISE" means the written notice required to be
         given by the Corporation or a Shareholder to exercise the option to
         purchase the Shares offered for Transfer.

                  "NOTICE OF OFFER" means the written notice of a Shareholder's
         intention to Transfer any of his Shares and which sets forth the name
         of the proposed Transferee, the number of Shares to be Transferred and
         the terms and conditions of the proposed Transfer. Such notice shall be
         accompanied by a copy of a Bona Fide Offer received in connection with
         such proposed Transfer.

                  "PERMITTED TRANSFER" means a Transfer of Shares described in
         Section 5 hereof.

                  "PLACEMENT AGENTS" means RAF Financial Corporation and
         Millennium Financial Group, Inc.

                  "SECURITIES ACT" means the Securities Act of 1933, as amended
         from time to time, and the rules and regulations of the Securities and
         Exchange Commission promulgated thereunder.

                  "SELLING SHAREHOLDER" means any Shareholder who has delivered
         a Notice of Offer.

                  "SHAREHOLDERS" means the persons or entities which hold of
         record the issued and outstanding Shares of the Corporation.

                  "SHARES" means the issued and outstanding shares of the Common
         Stock, par value $.01 per share, of the Corporation.

                  "TRANSFER" means to directly or indirectly sell, assign,
         hypothecate, transfer, pledge, mortgage or in any other way encumber or
         dispose of Shares and shall be defined to include the process whereby
         Shares are transferred.

                  "TRANSFEREE" means the person or other entity to which a
         Selling Shareholder desires to Transfer Shares.

         SECTION 2. LEGEND. Each certificate representing Shares shall have the
following legend printed or typed thereon:

         THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH SHARES
         HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD OR TRANSFERRED IN
         THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT THERETO
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR PURSUANT TO AN
         EXEMPTION


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         FROM REGISTRATION UNDER THE ACT, THE AVAILABILITY OF WHICH IS TO BE
         ESTABLISHED TO THE SATISFACTION OF THE COMPANY.

         THE STOCK EVIDENCED BY THIS CERTIFICATE IS SUBJECT TO THE TRANSFER
         RESTRICTIONS CONTAINED IN A FIRST AMENDED AND RESTATED SHAREHOLDERS'
         AGREEMENT, DATED FEBRUARY[ ], 1998, BY AND AMONG THE CORPORATION AND
         ITS SHAREHOLDERS, A COPY OF WHICH IS ON FILE AT THE OFFICE OF THE
         CORPORATION. TRANSFERS IN VIOLATION OF THE SHAREHOLDERS' AGREEMENT ARE
         VOID. BY ACCEPTANCE OF THIS CERTIFICATE THE HOLDER HEREOF AGREES TO BE
         BOUND BY THE TERMS OF THE SHAREHOLDERS AGREEMENT.

All Shares hereafter issued shall bear the same legend.

         SECTION 3. RESTRICTIONS ON TRANSFER OF SHARES. No Shareholder shall
Transfer any Shares that he may now or hereafter hold, nor shall any such Shares
be transferable except in compliance with the terms of this Agreement. No
Transfer of Shares will be recognized by the Corporation unless a registration
statement relating thereto has been declared effective under the Securities Act
or the Selling Shareholder establishes to the satisfaction of the Company that
such Transfer of Shares is exempt from registration under the Securities Act and
applicable state securities laws.

         SECTION 4. RIGHTS OF FIRST REFUSAL.

               (a) No less than 20 days prior to any Transfer, other than a
          Permitted Transfer or a Transfer by a Shareholder under Section 6
          hereof, a Shareholder desiring to Transfer Shares shall furnish a
          Notice of Offer to the Corporation and to each other Shareholder. For
          a period of 10 days after the Effective Date thereof, the Corporation
          shall have an option to purchase all or any portion of the Shares
          offered for Transfer by the Selling Shareholder on the same terms and
          conditions as set forth in the Notice of Offer. If the Corporation
          elects to exercise such option, it must deliver to the Selling
          Shareholder a Notice of Exercise within 10 days of the Effective Date.

               (b) If the Corporation elects not to exercise said option for all
          of the Shares to be Transferred by the Selling Shareholder, then it
          shall give prompt notice thereof to the other Shareholders, after
          which the other Shareholders will have an option for an additional 10
          days to purchase all or any portion of the remaining Shares offered
          for Transfer by the Selling Shareholder on the same terms and
          conditions as set forth in the Notice of Offer. If a Shareholder
          elects to exercise its option to acquire Shares to be Transferred, it
          must deliver to the Selling Shareholder a Notice of Exercise within 20
          days of the Effective Date. If more than one Shareholder exercises
          said option, then each such Shareholders shall have the right to
          purchase Shares of the Selling Shareholder on a pro rata basis based
          on the current number of Shares owned by each purchasing Shareholder.


                                       3
<PAGE>


               (c) The Notice of Exercise delivered by the Corporation or any
          Shareholder shall specify a closing date within 35 days after the
          Effective Date of the Notice of Offer. The Selling Shareholder and the
          Corporation or other Shareholders, as the case may be, may extend the
          closing date by mutual written consent.

               (d) If either the Corporation or any Shareholder elects to
          exercise its option to purchase all or any portion of the Shares, then
          the Selling Shareholder may not Transfer such Shares to any other
          party. If the periods during which the Corporation and the other
          Shareholders are entitled to exercise their options to purchase such
          Shares expire without the exercise of said options with respect to any
          of the Shares so offered, then the Selling Shareholder shall, for a
          period ending 30 days after the termination of the last applicable
          option period, be free to Transfer the Shares to the Transferee making
          the Bona Fide Offer contained in the Notice of Offer or to another
          party or parties, but in either case only so long as such Transfer is
          effected on terms and conditions no less favorable to the Selling
          Shareholder as those set forth in the Bona Fide Offer contained in the
          Notice of Offer. Any Transferee shall, as a condition to the
          recognition by the Corporation of such Transfer, execute an instrument
          acceptable to the Corporation acknowledging the terms and restrictions
          of this Agreement and the Transferee's obligation to be bound hereby.

               (e) If the Selling Shareholder does not Transfer the Shares
          within the period specified in paragraph (d) hereof, then such Shares
          shall again become subject to the restrictions of this Agreement.

               (f) Any Shares purchased by the Corporation shall be restored to
          the status of authorized but unissued Shares.

               (g) The Selling Shareholder will be responsible for the payment
          of any and all expenses incurred by the Selling Shareholder in the
          exercise of the rights specified in this Section 4 and the sale of his
          Shares.

         SECTION 5. PERMITTED TRANSFERS.

               (a) The following types of Transfers ("Permitted Transfers") may
          be consummated notwithstanding the provisions of Section 4 of this
          Agreement:

                         (i) a Transfer by any Shareholder of all or any portion
                    of his Shares, whether or not for adequate consideration,
                    either directly to, or indirectly in trust for, his spouse,
                    children, parents, siblings or a corporation or other entity
                    of which he (and/or his spouse, children, parents or
                    siblings) beneficially own 100% of the equity interests;

                         (ii) a Transfer by any Shareholder of all or any
                    portion of his Shares to another Shareholder; or

                         (iii) a Transfer by any Control Shareholder of 50% or
                    more of his Shares.


                                       4
<PAGE>


               (b) In the event a Shareholder makes a Permitted Transfer, he
          shall notify the Corporation thereof, which notice shall specify (i)
          the name of the Transferee, (ii) the relationship of the Transferee to
          the Shareholder, (iii) the number of Shares transferred and (iv) the
          date of the Transfer. Any such Transferee shall, as a condition of the
          recognition by the Corporation of such Transfer, execute a counterpart
          copy of this Agreement or other instrument acceptable to the
          Corporation acknowledging the terms and restrictions of this Agreement
          and the Transferee's obligation to be bound hereby.

               (c) Notwithstanding any other provision of this Agreement, a
          Shareholder may pledge, hypothecate or otherwise encumber up to 50% of
          his Shares to, or in favor of, any national or state bank or other
          financial institution; provided, however, that a Shareholder may
          pledge, hypothecate or encumber all of his Shares in order to secure a
          loan made to the Company. In the event a Shareholder pledges,
          hypothecates or encumbers Shares, he shall notify the Corporation
          thereof, which notice shall specify (i) the name of the party to which
          the Shares have been pledged, (ii) the number of Shares pledged (iii)
          the amount of the obligation for which such Shares have been given as
          security and (iv) the date of the pledge.

         SECTION 6. SALES BY CONTROL SHAREHOLDERS.

               (a) Other than as provided in paragraph (b) of this Section 6,
          any Control Shareholder who agrees to sell more than 50% of his Shares
          shall, on behalf of each other Shareholder which desires to sell his
          Shares, cause the purchaser of the Control Shareholder's Shares to
          agree to also acquire the Shares of each such other Shareholder on the
          same terms as such purchaser has agreed to acquire the Shares from the
          Control Shareholder; provided, however, that if such purchaser is
          unwilling to buy all Shares tendered to it by such Control Shareholder
          and any such other Shareholders, then each of the selling Shareholders
          will be entitled to sell a pro rata portion of his Shares based on the
          current number of Shares owned by such Shareholder.

               (b) The provisions of Section 6(a) shall not apply to any sale of
          Control Shares from one Control Shareholder to another Control
          Shareholder.

               (c) Any sale of Shares pursuant to this Section 6 by Shareholders
          will not be subject to the provisions of Section 4 of this Agreement.

         SECTION 7. SECURITY FOR PURCHASE PRICE OF SHARES. Whenever any Shares
are purchased pursuant to the option created under Section 4 of this Agreement
and the parties agree that the entire purchase price for the Shares will not be
paid at closing, then the purchaser(s) may endorse the certificates for the
purchased Shares and deliver the same to the Selling Shareholder as collateral
security for the payment of the unpaid purchase price, and such shares may be so
held until the entire purchase price shall have been paid. While such shares
shall be so held as collateral security and so long as the purchasing
Shareholder is not in default, the purchasing Shareholder shall be entitled to
all rights as a Shareholder, including voting rights and rights to all
dividends, with respect to such Shares.


                                       5
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         SECTION 8. REGISTRATION RIGHTS.

               (a) If the Company proposes to file a registration statement
          under the Securities Act with respect to either a primary or secondary
          offering by the Company of equity securities for its own account
          (other than a registration statement relating solely to (i) securities
          to be offered to employees pursuant to a stock option, stock savings,
          or other employee benefit plan of the Company or its affiliates; (ii)
          securities proposed to be issued in exchange for securities or assets
          of, or in connection with a merger or consolidation with, another
          corporation; (iii) securities to be offered by the Company generally
          to any class or series of its then-existing security holders; (iv)
          ecurities issuable upon conversion of securities which are the subject
          of an underwritten redemption; or (v) securities to be offered or
          issued pursuant to a combination of the foregoing transactions), then
          the Company shall give written notice of such proposed filing to each
          Shareholder as soon as practicable (but in no event less than 30 days
          before the anticipated filing date of such registration statement),
          and such notice shall offer the opportunity to register all or any
          part of the Shares owned by the Shareholders. Shareholders shall have
          15 days following receipt of such notice to request in writing
          inclusion of their Shares in such registration, which request shall
          specify the number of Shares a Shareholder proposes to sell.

               (b) Whenever a Shareholder requests that all or part of his
          Shares be included in a proposed registration, the Company shall use
          its reasonable best efforts to effect the registration and sale of
          such Shares and to cause the managing underwriter of any proposed
          underwritten offering to permit the requested Shares to be included in
          such registration. Shareholders may only participate in the
          underwritten portion of such registration hereunder if each of them
          (i) agrees to sell their Shares on the basis provided in any
          underwriting arrangements and (ii) completes and executes all
          questionnaires, powers of attorney, indemnities, underwriting
          agreements and other documents reasonably required under the terms of
          such underwriting arrangements and these registration rights. Among
          other things, each Shareholder agrees, if his Shares are included in
          an underwritten offering, that he will join in any general agreement
          with the managing underwriter not to effect any public sale or
          distribution of his Shares pursuant to such registration for a period
          of time not to exceed 180 days after the date any such registration
          statement is declared effective under the Securities Act.

               (c) Notwithstanding anything else set forth in paragraph (a) of
          this Section 8, the Company may, at the discretion of a majority of
          its Board of Directors and without the consent of any requesting
          Shareholder, withdraw any registration and abandon the proposed
          offering. Furthermore, if the managing underwriter of an underwritten
          offering advises the Company that in its opinion either because of (i)
          the size of the offering that the Company and any Shareholders desire
          to make or (ii) the kind of securities that the Company and any
          Shareholders intend to include in such offering, the success of the
          offering could be materially and adversely affected by inclusion of
          the Shares requested to be included, then (A) in the event that the
          size of the offering is the basis of such managing underwriter's
          opinion, the amount of Shares to be offered for the account of
          Shareholders shall be reduced on a pro rata basis among such
          Shareholders (on the basis of the amount of Shares intended to be
          included in such registration by each such


                                       6
<PAGE>


         Shareholder as compared to the aggregate amount of Shares intended to
         be included by all such Shareholders) to the extent necessary to reduce
         the total amount of Shares to be included in such offering to the
         amount recommended by such managing underwriter; and (B) in the event
         that the kind or combination of securities to be offered is the basis
         of such managing underwriter's opinion, the amount of Shares to be
         included in such offering shall be reduced as described in clause (A)
         above or, if any such reduction would, in the judgment of the managing
         underwriter, be insufficient to substantially eliminate the adverse
         effect that inclusion of the Shares requested to be included could have
         on such offering, such Shares shall be excluded from such underwritten
         offering. Notwithstanding the exclusion of such Shares from such
         underwritten offering, the Company will cause such Shares to be
         registered for resale in the same registration statement, provided that
         the requesting Shareholders agree not to consummate any such resale of
         their Shares pursuant to such registration statement for a period of
         180 days after such registration statement is declared effective under
         the Securities Act. The Company agrees to maintain the effectiveness of
         such registration statement under the Securities Act for up to 12
         months after such 180-day period has expired or until all such
         registered Shares are sold.

               (d) The registration rights under this Section shall only apply
          to the first two registration statements filed by the Company and
          declared effective under the Securities Act, other than registration
          statements relating to those offerings described in items (i) through
          (v) of paragraph (a) of this Section 8.

               (e) The Company shall pay all expenses in connection with the
          registration of Shares pursuant to this Section 8, including expenses
          incurred in connection with any registration statements that do not
          become effective. Shareholders participating in such registration
          shall pay their pro rata share of all underwriting fees, discounts or
          commissions attributable to any sale of all or part of their Shares in
          connection with any registration, whether or not the registration
          statement becomes effective. A Shareholder's pro rata share of such
          underwriting fees, discounts or commissions will be determined by
          reference to the number of shares to be sold by such Shareholder
          compared with the number of shares to be sold by all Shareholders and
          the Company pursuant to the registration.

               (f) The Company agrees that, if a registration statement which
          would give rise to the registration rights set forth in paragraph (a)
          of this Section 8 has not been declared effective under the Securities
          Act on or before June 30, 1999, then it will use its best efforts to
          cause a registration statement to be filed on the appropriate form
          under the Securities Act which relates to the resale of the Shares and
          to have such registration statement declared effective under the
          Securities Act by no later than December 31, 1999; provided that such
          dates may be extended by mutual agreement between the Company and RAF
          Financial Corporation, in their sole discretion. The Company will keep
          the registration statement effective for 12 months after the 180-day
          period described in Section 8(c) hereof expires or until all
          registered shares have been sold, whichever occurs earlier. The
          Company further agrees that on the date such registration statement is
          declared effective, the Company will have caused the Shares to be
          listed on the New York Stock Exchange, if the Company qualifies for
          such listing or, if not, on the


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         American Stock Exchange, if the Company qualifies for such listing or,
         if not, on the Nasdaq Stock Market, if the Company qualifies for such
         listing or, if not, on the SmallCap Market of The Nasdaq Stock Market.

               (g) Whenever the Company files a registration statement pursuant
          to this Section 8 that is declared effective and that registers any
          Shares for resale, the Company agrees to use its best efforts to
          register or qualify the Shares for sale in those states requested by
          the person selling the Shares; provided that, the Company shall not be
          required to register or qualify the Shares for sale in any state in
          which the sale of the Shares by the person selling the Shares would be
          exempt from having to be registered or qualified in such state. The
          determination of whether or not such an exemption exists shall be made
          by counsel for the Company and such determination shall be provided in
          writing to the person desiring the sell Shares in a state.

               (h) With respect to the Shareholders who purchased Shares in the
          private offering of up to 2,000,000 Shares (the "Private Offering")
          made by the Company pursuant to the Private Placement Memorandum,
          dated July 3, 1997, and any amendments or supplements thereto (the
          "PPM"), the Company agrees that it will issue additional Shares
          ("Additional Shares") to such Shareholders if (i) Shares are sold by
          the Company pursuant to the first registration statement of the
          Company which is declared effective under the Securities Act (other
          than those excluded registration statements described in Section 8(a)
          hereof) (the "Registered Offering") at a price of less than $10.00 per
          Share or (ii) Shares are sold by the Company between the date of the
          first sale of Shares in the Private Offering and the date of the
          closing of the Registered Offering at a price of less than $5.00 per
          Share; provided, however, that the Company will not be required to
          issue Additional Shares if the amount of consideration received by the
          Company from the issuance of shares (x) to the Placement Agents upon
          the exercise of the Placement Agent Warrants described in the PPM, (y)
          to G.S. Beckwith Gilbert upon the exercise of certain warrants issued
          by the Company to him or (z) to Jeffrey Sklar upon the exercise of
          certain options issued by the Company to him (all as described in the
          PPM) is less than $5.00 per share. If the sale price in the Registered
          Offering is less than $10.00 per Share, the number of Additional
          Shares to be issued to each such Shareholder will be determined by
          subtracting such sale price from $10.00, multiplying the result by the
          number of Shares acquired in the Private Offering by such Shareholder
          and then dividing the product by such sale price. If the sale price
          for any other sale of Shares described in clause (ii) above is less
          than $5.00 per Share, the number of Additional Shares to be issued to
          each such Shareholder will be determined by subtracting such sale
          price from $5.00, multiplying the result by the number of Shares
          acquired in the Private Offering by such Shareholder and dividing the
          product by such sale price. The Company will issue Additional Shares
          to each such Shareholder within 10 days after the date of the
          occurrence of the event that causes the Company to have to issue the
          Additional Shares. Further, such Additional Shares shall be subject
          to, and have the benefits of, this Agreement.

         SECTION 9. NOTICES. All notices, requests and other communications
hereunder, including a Notice of Offer, shall be in writing and shall be
delivered by courier or other means of personal service, national overnight
delivery service, telecopy, first class U.S. mail, postage prepaid, or


                                       8
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certified U.S. mail, return receipt requested, addressed (i) to the Corporation
at 5600 South 42nd Street, Omaha, Nebraska 68107, facsimile (402) 733-1264,
attention: Mr. Collin J. D'Silva or (ii) to a Shareholder at the address set
forth in Schedule A hereto or at such other address of which a Shareholder has
given the Corporation notice. All such notices shall be deemed to have been
delivered on the date personally delivered or telecopied, one business day after
being delivered to a national overnight delivery service or three business days
after being deposited in the U.S. Mail.

         SECTION 10. WAIVER. No waiver of any provision of this Agreement in any
instance shall be or for any purpose be deemed to be a waiver of the right of
any party hereto to enforce strict compliance with the provisions hereof in any
subsequent instance.

         SECTION 11. GOVERNING LAW. This Agreement shall be construed and
interpreted in accordance with the laws of the State of Delaware without giving
effect to its conflict of laws principals.

         SECTION 12. BINDING EFFECT AND BENEFITS. Except as otherwise provided
herein, the terms of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, executors,
administrators, personal representatives, successors and assigns, and shall be
binding upon any person to whom any of the Shares of the parties are transferred
and upon the heirs, executors, administrators, personal representative,
successors and assigns of each such person.

         SECTION 13. TERM OF AGREEMENT. This Agreement shall become effective as
of the date first written above and shall remain in full force and effect until
the Corporation and all of the Shareholders then holding Shares subject to this
Agreement shall agree in writing to its termination or until the first to occur
of (i) offering of Shares by the Corporation pursuant to a registration
statement effective under the Securities Act; provided that the provisions of
Section 8 shall remain in effect until satisfied, (ii) the purchase by one
Shareholder of all the issued and outstanding Shares of the Corporation or (iii)
the dissolution, bankruptcy or receivership of the Corporation. Upon termination
of this Agreement, the Secretary of the Corporation shall, upon tender of the
certificates for Shares, delete the legend endorsed thereon pursuant to Section
2 of this Agreement.

         SECTION 14. REMEDIES FOR VIOLATIONS. The Shares cannot be readily
purchased or sold on the open market and for this reason, among others, the
parties hereto will be irreparably damaged in the event that this Agreement is
not complied with by all parties hereto. In the event of any controversy
concerning the rights or obligations under this Agreement, such right or
obligation shall be enforceable in a court of equity by a decree of specific
performance.

         SECTION 15. ENTIRE AGREEMENT AND AMENDMENTS. This Agreement contains
the entire understanding and agreement between the parties hereto and supersedes
any prior agreements among the parties pertaining to the Shares. There are no
representations, warranties, promises, covenants or understandings other than
those herein expressly set forth. No change, modification or amendment of this
Agreement shall be valid unless the same be in writing and signed by all the
parties hereto.


                                       9
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         SECTION 16. SEVERABILITY. The invalidity or unenforceability of any
particular provision of this Agreement shall not affect the other provisions of
this Agreement, and this Agreement shall be construed in all respects as if such
invalid or unenforceable provision were omitted.

         SECTION 17. SECTION AND OTHER HEADINGS. The section and other headings
contained in this Agreement are for reference purposes only and shall not affect
the interpretation of this Agreement.

         SECTION 18. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same instrument.

         SECTION 19. CONSTRUCTION. Whenever required by the context, references
herein to the singular shall include the plural and the masculine gender shall
include the feminine gender.

         SECTION 20. ADDITIONAL PARTIES. With the approval of the Corporation,
anyone in whose name Shares are registered may become a party to this Agreement
by executing a duplicate copy hereof.


                                       10
<PAGE>


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

                               TRANSGENOMIC, INC.

                               By  /s/ Collin J. D'Silva
                               -----------------------------------------------
                                   Collin J. D'Silva, President

                               SHAREHOLDERS

                               /s/ Collin J. D'Silva
                               -----------------------------------------------
                               Collin J. D'Silva, Shareholder

                               /s/ Collin J. D'Silva
                               -----------------------------------------------
                               Collin J. D'Silva, as trustee for the Arther P.
                               D'Silva Family Irrevocable Trust, Shareholder

                               /s/ Arther P. D'Silva
                               -----------------------------------------------
                               Arther P. D'Silva, Shareholder


                                       11
<PAGE>


                            /s/ Thomas E. Bowman
                            -----------------------------------------------


                            /s/ Una N. Bowman
                            -----------------------------------------------
                            Thomas E. Bowman and Una N. Bowman, Shareholder


                            /s/ Stephen F. Dwyer
                            -----------------------------------------------
                            Stephen F. Dwyer, Shareholder

                            /s/ Nancy Dwyer
                            -----------------------------------------------
                            Nancy Dwyer, Shareholder

                            /s/ Robert V. Dwyer
                            -----------------------------------------------
                            Robert V. Dwyer, Jr., Shareholder

                            /s/ Robert Sanger
                            -----------------------------------------------
                            Robert Sanger, as trustee for the Robert & Ellen
                            Sanger Trust Agreement of 1992, Shareholder

                            /s/ Douglas Gjerde
                            -----------------------------------------------
                            Douglas Gjerde, Shareholder

                            COROB Investments, Ltd., Shareholder by:
                            Name /s/ Robert V. Dwyer, Jr.
                                 -----------------------------------------------
                            Title    General Partner
                                 -----------------------------------------------

                            Each of the additional Shareholders listed in
                            Schedule A  hereto  by  Collin J.  D'Silva,
                            Attorney-in-fact

                            By  /s/ Collin J. D'Silva
                                ------------------------------------------------
                                Collin J. D'Silva, Attorney-in-fact

                                       12