Exhibit 4.2


 





NEITHER THESE SECURITIES
NOR THE SECURITIES ISSUABLE UPON EXERCISE 27OF THESE SECURITIES HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.


 


TRANSGENOMIC, INC.



WARRANT TO PURCHASE COMMON STOCK


 


Original Issue Date: October 22, 2014


 


Transgenomic, Inc.,
a Delaware corporation (the “Company”), hereby certifies that, for value received, ______________ or
its permitted registered assigns (the “Holder”), is entitled to purchase from the Company up to a total
of __________ shares of common stock, $0.01 par value per share (the “Common Stock”), of the Company
(each such share, a “Warrant Share” and all such shares, the “Warrant Shares”)
at an exercise price per share equal to $4.00 per share (as adjusted from time to time as provided in Section 9 herein,
the “Exercise Price”), at any time and from time to time beginning on the date that is six months from
the date hereof  (the “Original Exercise Date”) and through and including 5:30 p.m., New York
City time, on April 22, 2020 (the “Expiration Date”), and subject to the following terms and conditions:


 


This Warrant (this
“Warrant”) is one of a series of similar warrants issued pursuant to that certain Securities Purchase
Agreement, dated October 22, 2014, by and among the Company and the Purchasers identified therein (the “Purchase Agreement”).
All such warrants are referred to herein, collectively, as the “Warrants.”


 


1.                 
Definitions. In addition to the terms defined elsewhere in this Warrant, capitalized terms that are not otherwise
defined herein have the meanings given to such terms in the Purchase Agreement.


 


2.                 
Registration of Warrants. The Company shall register this Warrant, upon records to be maintained by the Company for
that purpose, which may be a third-party transfer agent (the “Warrant Register”), in the name of the
record Holder (which shall include the initial Holder or, as the case may be, any registered assignee to which this Warrant is
permissibly assigned hereunder) from time to time. The Company may deem and treat the registered Holder of this Warrant as the
absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent
actual notice to the contrary.


 






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3.                 
Registration of Transfers. Subject to the restrictions on transfer set forth in Section 4.1 of the Purchase
Agreement and compliance with all applicable securities laws, the Company shall register the transfer of all or any portion of
this Warrant in the Warrant Register, upon surrender of this Warrant, with an assignment, in the form attached as Schedule 2
hereto, duly completed and signed, to the Company’s transfer agent or to the Company at its address specified in the Purchase
Agreement and (a) delivery, at the request of the Company, of an opinion of counsel reasonably satisfactory to the Company to the
effect that the transfer of such portion of this Warrant may be made pursuant to an available exemption from the registration requirements
of the Securities Act and all applicable state securities or blue sky laws (other than in connection with any transfer (i) pursuant
to an effective registration statement, (ii) to the Company, (iii) pursuant to Rule 144 (provided that such Holder provides the
Company with reasonable assurances (in the form of seller and, if applicable, broker representation letters) that the securities
may be sold pursuant to such rule) or (iv) in connection with a bona fide pledge), and (b) delivery by the transferee of a written
statement to the Company certifying that the transferee is an “accredited investor” as defined in Rule 501(a) under
the Securities Act and making the representations and certifications set forth in Sections B(6), (7), (11), (12), (14) and (16)
of the Purchase Agreement, to the Company at its address specified in the Purchase Agreement. Upon any such registration or transfer,
a new warrant to purchase Common Stock in substantially the form of this Warrant (any such new warrant, a “New Warrant”)
evidencing the portion of this Warrant so transferred shall be issued to the transferee, and a New Warrant evidencing the remaining
portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant
by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations in respect of
the New Warrant that the Holder has in respect of this Warrant. The Company shall prepare, issue and deliver at its own expense
any New Warrant under this Section 3.


 


4.                 
Exercise and Duration of Warrant.


 


(a)               
All or any part of this Warrant shall be exercisable by the registered Holder in any manner permitted by Section 10
of this Warrant at any time and from time to time on or after the Original Issue Date and through and including 5:30 p.m., New
York City time, on the Expiration Date. After 5:30 p.m., New York City time, on the Expiration Date, the portion (or all) of this
Warrant not exercised prior thereto shall be and become void and of no value and this Warrant shall be automatically terminated
and no longer outstanding.


 


(b)              
The Holder may exercise this Warrant by delivering to the Company (i) an exercise notice, in the form attached as Schedule
1 hereto (the “Exercise Notice”), completed and duly signed, and (ii) payment of the Exercise Price
for the number of Warrant Shares as to which this Warrant is being exercised (which may take the form of a “cashless exercise”
if so indicated in the Exercise Notice and if a “cashless exercise” may occur at such time pursuant to Section 10
below) within one (1) Business Day following the Exercise Date (as defined herein). The date on which the Exercise Notice is delivered
to the Company (as determined in accordance with the notice provisions hereof) is an “Exercise Date.”
No ink-original Exercise Notice shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization)
of any Exercise Notice form be required. The delivery by (or on behalf of) the Holder of the Exercise Notice and the applicable
Exercise Price as provided above shall constitute the Holder’s certification to the Company that its representations contained
in Sections B(6), (7), (11), (12), (14) and (16) of the Purchase Agreement are true and correct as of the Exercise Date and as
of the date on which the Holder pays the Company the Exercise Price as if remade in their entirety (or, in the case of any transferee
Holder that is not a party to the Purchase Agreement, such transferee Holder’s certification to the Company that such representations
are true and correct as to such transferee Holder as of the Exercise Date and as of the date on which such transferee Holder pays
the Company the Exercise Price). Notwithstanding anything herein to the contrary, Holder shall not be required to physically surrender
this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been
exercised in full, in which case, Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading
Days of the date the final Exercise Notice is delivered to the Company. The Holder shall not be required to deliver the original
Warrant in order to effect an exercise hereunder, but if it is not so delivered then such exercise shall constitute an agreement
by the Holder to deliver the original Warrant to the Company as soon as practicable thereafter. Execution and delivery of the Exercise
Notice shall have the same effect as cancellation of the original Warrant and issuance of a New Warrant evidencing the right to
purchase the remaining number of Warrant Shares.


 






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5.                 
Delivery of Warrant Shares.


 


Upon exercise of this
Warrant, the Company shall promptly (but in no event later than three Trading Days after the Exercise Date) issue or cause to be
issued and cause to be delivered to or upon the written order of the Holder and in such name or names as the Holder may designate
(provided, that if a Registration Statement covering the resale of the Warrant Shares is not effective and the Holder directs the
Company to deliver a certificate for the Warrant Shares in a name other than that of the Holder or an affiliate of the Holder,
it shall deliver to the Company on the Exercise Date an opinion of counsel reasonably satisfactory to the Company to the effect
that the issuance of such Warrant Shares in such other name may be made pursuant to an available exemption from the registration
requirements of the Securities Act and all applicable state securities or blue sky laws), (i) a certificate for the Warrant Shares
issuable upon such exercise, free of restrictive legends, or (ii) an electronic delivery of the Warrant Shares to the Holder’s
account at the Depository Trust Company (“DTC”) or a similar organization; provided, that if a
Registration Statement covering the resale of the Warrant Shares and naming the Holder as a selling stockholder thereunder is not
then effective or the Warrant Shares are not freely transferable without restriction under Rule 144 by Holders who are not affiliates
of the Company, such Holder shall receive a certificate for the Warrant Shares issuable upon such exercise with appropriate restrictive
legends. If the Company fails for any reason to deliver to the Holder certificates evidencing the Warrant Shares or an electronic
delivery of the Warrant Shares by the foregoing deadline, the Company shall pay to the Holder, in cash, as liquidated damages and
not as a penalty, $1,000 per Trading Day for each Trading Day after such delivery deadline until such Warrant Shares are delivered
or Holder rescinds such exercise. The Holder, or any person permissibly so designated by the Holder to receive Warrant Shares,
shall be deemed to have become the holder of record of such Warrant Shares as of the Exercise Date. Notwithstanding anything contained
herein to the contrary, if the Holder fails to deliver the documents required to register a transferee as set forth in Section
3 above or to provide the documents required under this Section 5(a) to issue a certificate or electronic delivery of
the Warrant Shares to any person(s) other than the Holder, then determination of the three Trading Days shall be tolled until such
documents have been delivered to the Company. If the Warrant Shares are to be issued free of all restrictive legends, the Company
shall, upon the written request of the Holder, use its reasonable best efforts to deliver, or cause to be delivered, the Warrant
Shares hereunder electronically through DTC or another established clearing corporation performing similar functions, if available;
provided, that the Company may, but will not be required to, change its transfer agent if its current transfer agent cannot
deliver the Warrant Shares electronically through such a clearing corporation. “Trading Day” means (a)
a day on which the Common Stock is listed or quoted and traded on its Principal Trading Market (other than the OTCMarkets), or
(b) if the Common Stock is not listed on a Trading Market (other than the OTCMarkets), a day on which the Common Stock is traded
in the over-the-counter market, as reported by the OTCMarkets (or any similar organization or agency succeeding to its functions
of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (a) or (b)
hereof, then Trading Day shall mean a Business Day; provided further, that “Trading Day” shall not include any
day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common
Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market does
not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 p.m., New
York time). “Principal Trading Market” means whichever of the NYSE MKT LLC, the NASDAQ Global Select
Market, the NASDAQ Global Market, the NASDAQ Capital Market or the OTCMarkets on which the Common Stock is primarily listed and
quoted for trading. “Trading Market” means whichever of the NYSE MKT LLC, the NASDAQ Global Select Market,
the NASDAQ Global Market, the NASDAQ Capital Market or the OTCMarkets on which the Common Stock is listed or quoted for trading
on the date in question.


 






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(a)               
If by the close of the third Trading Day after delivery of a properly completed Exercise Notice and the payment of the aggregate
Exercise Price in any manner permitted by Section 10 of this Warrant, the Company fails to deliver to the Holder a certificate
representing the required number of Warrant Shares in the manner required pursuant to Section 5(a), and if after such third
Trading Day and prior to the receipt of such Warrant Shares, the Holder is required to purchase (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder
anticipated receiving upon such exercise (a “Buy-In”), then the Company shall, in its sole discretion,
within three Trading Days after the Holder’s request for payment, either (i) pay in cash to the Holder an amount equal to
the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased,
at which point the number of Warrant Shares underlying this Warrant equal to the number of shares of Common Stock so purchased
shall be forfeited and the Company’s obligation to deliver such certificate (and to issue such Warrant Shares) shall terminate,
or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Warrant Shares and
pay cash to the Holder in an amount equal to the excess (if any) of the Holder’s total purchase price (including brokerage
commissions, if any) for the shares of Common Stock so purchased in the Buy-In over the product of (A) the number of shares of
Common Stock purchased in the Buy-In, multiplied by (B) the closing bid price of a share of Common Stock on the Exercise Date.
The Holder shall provide the Company with written notice indicating the amounts payable to the Holder in respect of the Buy-In,
together with applicable confirmations and other evidence reasonably requested by the Company.


 


(b)              
To the extent permitted by law, the Company’s obligations to issue and deliver Warrant Shares in accordance with and
subject to the terms hereof (including the limitations set forth in Section 11 below) are absolute and unconditional, irrespective
of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery
of any judgment against any person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination,
or any breach or alleged breach by the Holder or any other person of any obligation to the Company (other than breaches related
to this Warrant or the Purchase Agreement) or any violation or alleged violation of law by the Holder or any other person, and
irrespective of any other circumstance that might otherwise limit such obligation of the Company to the Holder in connection with
the issuance of Warrant Shares. Nothing herein shall limit the Holder’s right to pursue any other remedies available to it
hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect
to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant
as required pursuant to the terms hereof.


 






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6.                 
Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this
Warrant shall be made without charge to the Holder for any issue or transfer tax, transfer agent fee or other incidental tax or
expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided,
however, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the
registration of any certificates for Warrant Shares or the Warrants in a name other than that of the Holder or an affiliate thereof.
The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant
or receiving Warrant Shares upon exercise hereof.


 


7.                 
Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause
to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a
New Warrant, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction (in such
case) and, in each case, a customary and reasonable indemnity and surety bond, if requested by the Company. Applicants for a New
Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable
third-party costs as the Company may prescribe. If a New Warrant is requested as a result of a mutilation of this Warrant, then
the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company’s obligation to issue
the New Warrant.


 


8.                 
Reservation of Warrant Shares. The Company represents and warrants that on the date hereof, it has duly authorized
and reserved, and covenants that it will at all times during the period this Warrant is outstanding reserve and keep available
out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it
to issue Warrant Shares upon exercise of this Warrant as herein provided, the number of Warrant Shares that are initially issuable
and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of
persons other than the Holder (taking into account the adjustments and restrictions of Section 9). The Company covenants
that all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance
with the terms hereof, be duly and validly authorized, issued and fully paid and nonassessable and free from all taxes, liens and
charges created by the Company in respect of the original issuance thereof (other than taxes in respect of any transfer occurring
contemporaneously with such issue). The Company further covenants that its issuance of this Warrant shall constitute full authority
to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for
the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company represents and warrants that the Warrant
Shares, when issued and paid for in accordance with the terms of the Purchase Agreement and the Warrants, will be issued free and
clear of all security interests, claims, liens and other encumbrances other than restrictions imposed by applicable securities
laws. The Company will take all such action as may be reasonably necessary to assure that such shares of Common Stock may be issued
as provided herein without violation of any applicable law or regulation, or of any requirements of any securities exchange or
automated quotation system upon which the Common Stock may be listed.


 






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9.                 
Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject
to adjustment from time to time as set forth in this Section 9.


 


(a)               
Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend
on its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock,
(ii) subdivides its outstanding shares of Common Stock into a larger number of shares, (iii) combines (by combination, reverse
stock split or otherwise) its outstanding shares of Common Stock into a smaller number of shares (a “Stock Combination
Event”), or (iv) issues by reclassification of shares of Common Stock any shares of capital stock of the Company,
then in each such case the Exercise Price shall be adjusted to a price determined by multiplying the Exercise Price in effect immediately
prior to the effective date of such event by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding
on such effective date immediately before giving effect to such event and the denominator of which shall be the number of shares
of Common Stock outstanding immediately after giving effect to such event. Any adjustment made pursuant to clause (i) of this paragraph
shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend
or distribution, and any adjustment pursuant to clause (ii), (iii) or (iv) of this paragraph shall become effective immediately
after the effective date of such subdivision, combination or reclassification.


 


(b)              
Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, distributes to all holders
of Common Stock for no consideration (i) evidences of its indebtedness, (ii) any security (other than a distribution of Common
Stock covered by the preceding paragraph), (iii) rights or warrants to subscribe for or purchase any security, or (iv) any other
asset, including cash (in each case, “Distributed Property”), except for any distributions pursuant to
a shareholders’ rights plan or similar takeover defense agreement or plan adopted by the Company, then, upon any exercise
of this Warrant that occurs after the record date fixed for determination of stockholders entitled to receive such distribution,
the Holder shall be entitled to receive, in addition to the Warrant Shares otherwise issuable upon such exercise (if applicable),
the Distributed Property that such Holder would have been entitled to receive in respect of such number of Warrant Shares had the
Holder been the record holder of such Warrant Shares immediately prior to such record date.


 






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(c)               
Fundamental Transactions. If, at any time while this Warrant is outstanding (i) the Company effects (A) any merger
of the Company with (but not into) another person, in which stockholders of the Company immediately prior to such transaction own
less than a majority of the outstanding stock of the surviving entity, or (B) any merger or consolidation of the Company into another
person, (ii) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions,
(iii) any tender offer or exchange offer approved or authorized by the Company’s Board of Directors is completed pursuant
to which holders of at least a majority of the outstanding Common Stock tender or exchange their shares for other securities, cash
or property, or (iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to
which the Common Stock is effectively converted into or exchanged for other securities, cash or property (other than as a result
of a subdivision or combination of shares of Common Stock covered by Section 9(a) above) (in any such case, a “Fundamental
Transaction”), then the Holder shall have the right thereafter to receive, upon exercise of this Warrant, the same
amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental
Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant Shares then
issuable upon exercise in full of this Warrant without regard to any limitations on exercise contained herein (the “Alternate
Consideration”), and the Holder shall no longer have the right to receive Warrant Shares upon exercise of this Warrant.
The Company shall not effect any such Fundamental Transaction unless prior to or simultaneously with the consummation thereof,
any successor to the Company, surviving entity or the corporation purchasing or otherwise acquiring such assets or other appropriate
corporation or person shall assume the obligation to deliver to the Holder, such Alternate Consideration as, in accordance with
the foregoing provisions, the Holder may be entitled to receive, and the other obligations under this Warrant. The provisions of
this paragraph (c) shall similarly apply to subsequent transactions of an analogous type to any Fundamental Transaction.


 


(d)              
Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to paragraph (a) or (f)
of this Section 9, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or
decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the increased or decreased
number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.


 


(e)               
Anti-Dilution. Protection. In the event that at any time prior to the date that is eighteen months from the date
hereof, the Company issues any securities in a capital-raising transaction that include a price-based anti-dilution adjustment
provision, such price-based anti- dilution adjustment provision shall be deemed automatically incorporated into this Warrant.
Promptly following such incorporation, the Company and the Holder shall amend this Warrant to formally incorporate such provision
herein.


 


(f)               
Calculations. All calculations under this Section 9 shall be made to the nearest cent or the nearest share,
as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or
for the account of the Company.


 






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(g)              
Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the Company at its
expense will, at the written request of the Holder, promptly compute such adjustment, in good faith, in accordance with the terms
of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and
adjusted number or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing
the transactions giving rise to such adjustments and showing in reasonable detail the facts upon which such adjustment is based.
Upon written request, the Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s
transfer agent.


 


(h)              
Notice of Corporate Events. If, while this Warrant is outstanding, the Company (i) declares a dividend or any other
distribution of cash, securities or other property in respect of its Common Stock, including, without limitation, any granting
of rights or warrants to subscribe for or purchase any capital stock of the Company, (ii) authorizes or approves, enters into any
agreement contemplating or solicits stockholder approval for any Fundamental Transaction, or (iii) authorizes the voluntary dissolution,
liquidation or winding up of the affairs of the Company, then, except if such notice and the contents thereof shall be deemed to
constitute material non-public information, the Company shall deliver to the Holder a notice of such transaction at least ten (10)
Business Days prior to the applicable record or effective date on which a person would need to hold Common Stock in order to participate
in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein
shall not affect the validity of the corporate action required to be described in such notice.


 


10.             
Payment of Exercise Price. The Holder shall pay the Exercise Price in immediately available funds; provided, however,
that if, on any Exercise Date there is not an effective Registration Statement registering, or no current prospectus available
for, the resale of the Warrant Shares by the Holder, then the Holder may, in its sole discretion, satisfy its obligation to pay
the Exercise Price through a “cashless exercise”, in which event the Company shall issue to the Holder the number of
Warrant Shares determined as follows:


 


X = Y[(A-B)/A]


 


where:


 


X = the number of Warrant
Shares to be issued to the Holder.


 


Y = the total number
of Warrant Shares with respect to which this Warrant is being exercised.


 


A = the average of
the Closing Bid Price of the shares of Common Stock (as reported by Bloomberg Financial Markets) for the five consecutive Trading
Days ending on the date immediately preceding the Exercise Date.


 


B = the Exercise Price
then in effect for the applicable Warrant Shares at the time of such exercise.


 






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For purposes of this
Warrant, “Closing Bid Price” means, for any security as of any date, the last reported closing bid price
for such security on the Principal Trading Market for such security, as reported by Bloomberg Financial Markets, or, if such Principal
Trading Market begins to operate on an extended hours basis and does not designate the closing bid price, then the last bid price
of such security prior to 4:00 p.m., New York City time, as reported by Bloomberg Financial Markets, or if the foregoing do not
apply, the last closing price of such security in the over-the-counter market on the electronic bulletin board for such security
as reported by Bloomberg Financial Markets, or, if no closing bid price is reported for such security by Bloomberg Financial Markets,
the average of the bid prices of any market makers for such security as reported on OTC Pink (also known as the “pink sheets”)
by the OTCMarkets. If the Closing Bid Price cannot be calculated for a security on a particular date on any of the foregoing bases,
the Closing Bid Price of such security on such date shall be the fair market value as mutually determined by the Company and the
Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then the Board of Directors
of the Company shall use its good faith judgment to determine the fair market value. The Board of Directors’ determination
shall be binding upon all parties absent demonstrable error. All such determinations shall be appropriately adjusted for any stock
dividend, stock split, stock combination or other similar transaction during the applicable calculation period.


 


For purposes of Rule
144, it is intended, understood and acknowledged that the provisions above permitting “cashless exercise” are intended,
in part, to ensure that a full or partial exchange of this Warrant pursuant to such provisions will qualify as a conversion, within
the meaning of paragraph (d)(3)(ii) of Rule 144, and the holding period for the Warrant Shares shall be deemed to have commenced
as to such original Holder, on the Original Issue Date.


 


11.             
Limitations on Exercise. Notwithstanding anything to the contrary contained herein, the number of Warrant Shares
that may be acquired by the Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent
necessary to ensure that, following such exercise (or other issuance), the total number of shares of Common Stock then beneficially
owned by the Holder and its affiliates and any other persons whose beneficial ownership of Common Stock would be aggregated with
the Holder’s for purposes of Section 13(d) of the Exchange Act, does not exceed 4.99% of the total number of then issued
and outstanding shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise). For
purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by the Holder and its affiliates
shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which the determination
of such sentence is being made, but shall exclude the number of shares of Common Stock which are issuable upon (a) exercise of
the remaining, unexercised portion of this Warrant beneficially owned by such person and its affiliates and (b) exercise or conversion
of the unexercised or unconverted portion of any other securities of the Company beneficially owned by such person and its affiliates
(including, without limitation, any convertible notes, convertible stock or warrants) that are subject to a limitation on conversion
or exercise analogous to the limitation contained herein. Except as set forth in the preceding sentence, beneficial ownership shall
be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being
acknowledged by the Holder that the Company is not representing to such Holder that such calculation is in compliance with Section
13(d) of the Exchange Act and such Holder is solely responsible for any schedules required to be filed in accordance therewith.
To the extent that the limitation contained in this Section 11 applies, the determination of whether this Warrant is exercisable
(in relation to other securities owned by such Holder) and of which portion of this Warrant is exercisable shall be in the sole
discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of
whether this Warrant is exercisable (in relation to other securities owned by such Holder) and of which portion of this Warrant
is exercisable, in each case subject to such aggregate percentage limitation, and the Company shall have no obligation to verify
or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall
be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes
of this Section 11, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of
outstanding shares of Common Stock as reflected in (x) the Company’s most recent Form 10-Q or Form 10-K, as the case may
be, (y) a more recent public announcement by the Company or (z) any other notice by the Company or its transfer agent setting forth
the number of shares of Common Stock outstanding. Upon the written request of the Holder, the Company shall within three Trading
Days confirm orally and in writing to such Holder the number of shares of Common Stock then outstanding. In any case, the number
of outstanding shares of Common Stock shall be determined after giving effect to any actual conversion or exercise of securities
of the Company, including this Warrant, by the Holder and its affiliates since the date as of which such number of outstanding
shares of Common Stock was last publicly reported or confirmed to the Holder. This provision shall not restrict the number of shares
of Common Stock which a Holder may receive or beneficially own in order to determine the amount of securities or other consideration
that such Holder may receive in the event of a Fundamental Transaction as contemplated in Section 9 of this Warrant. By
written notice to the Company, which will not be effective until the 61st day after such notice is delivered to the Company, the
Holder may waive the provisions of this Section 11 (but such waiver will not affect any other holder) to change the beneficial
ownership limitation to 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance
of shares of Common Stock upon exercise of this Warrant, and the provisions of this Section 11 shall continue to apply.
Upon such a change by a Holder of the beneficial ownership limitation from such 4.99% limitation to such 9.99% limitation, the
beneficial ownership limitation may not be further waived by such Holder.


 






    	9



    	 



    

 


12.             
No Fractional Shares. No fractional Warrant Shares will be issued in connection with any exercise of this Warrant.
In lieu of any fractional shares that would otherwise be issuable, the number of Warrant Shares to be issued shall be rounded down
to the next whole number and the Company shall pay the Holder in cash the fair market value (based on the Closing Bid Price) for
any such fractional shares.


 


13.             
Notices. Any notice or other document required or permitted to be given or delivered to the Purchasers shall be in
writing and sent (a) by fax if the sender on the same day sends a confirming copy of such notice by an internationally recognized
overnight delivery service (charges prepaid) or (b) by an internationally recognized overnight delivery service (with charges prepaid).
The address and facsimile number of a person for such notices or communications shall be as set forth in the Purchase Agreement
unless changed by such person by two Trading Days’ prior notice to the other person(s) in accordance with this Section
13.


 


14.             
Warrant Agent. The Company shall serve as warrant agent under this Warrant. Upon 15 days’ notice to the Holder,
the Company may appoint a new warrant agent. Any corporation into which the Company or any new warrant agent may be merged or any
corporation resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation
to which the Company or any new warrant agent transfers substantially all of its corporate trust or shareholders services business
shall be a successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly
cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s
last address as shown on the Warrant Register.


  


15.             
Miscellaneous.


 


(a)               
No Rights as a Stockholder. The Holder, solely in such person’s capacity as a holder of this Warrant, shall
not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall
anything contained in this Warrant be construed to confer upon the Holder, solely in such person’s capacity as the Holder
of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate
action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, amalgamation, conveyance
or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the
Holder of the Warrant Shares which such person is then entitled to receive upon the due exercise of this Warrant. In addition,
nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities, whether
such liabilities are asserted by the Company or by creditors of the Company.


 






    	10



    	 



    

 


(b)              
Authorized Shares.


 


(i)                
The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as
provided herein without violation of any applicable law or regulation or of any requirements of the Principal Trading Market upon
which the Common Stock may be listed.


 


(ii)              
Except and to the extent waived or consented to by the Holder, the Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution,
issuance or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of the Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will (1) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in par value, (2) take all such action as may be
necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon
the exercise of this Warrant, and (3) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations
under this Warrant.


 


(iii)            
Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable
or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be
necessary from any public regulatory body or bodies having jurisdiction thereof.


 


(c)               
Successors and Assigns. Subject to the restrictions on transfer set forth in this Warrant and in Sections B(7) and
(8) of the Purchase Agreement, and compliance with applicable securities laws, this Warrant may be assigned by the Holder. This
Warrant may not be assigned by the Company without the written consent of the Holder except to a successor in the event of a Fundamental
Transaction. This Warrant shall be binding upon and inure to the benefit of the Company and the Holder and their respective heirs,
estate, legal representatives, successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed
to give to any person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this
Warrant.


 






    	11



    	 



    

 


(d)              
Amendment and Waiver. Except as otherwise provided herein, the provisions of this Warrant may be amended and the
Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company
has obtained the written consent of the Holder.


 


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


 


(f)               
Governing Law. This Warrant shall be enforced, governed and construed in all respects in accordance with the laws
of the State of New York, as such laws are applied by the New York courts to agreements entered into and to be performed in New
York by and between residents of New York.


 


(g)              
Headings. The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be
deemed to limit or affect any of the provisions hereof.


 


(h)              
Severability. If any provision of this Warrant is held to be invalid or unenforceable under any applicable statute
or rule of law, then such provision shall be deemed modified to conform with such statute or rule of law. Any provision hereof
that may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provisions hereof.


 


[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]


 






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IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above.


 





	 	TRANSGENOMIC, INC.	 
	 	 	 	 
	 	By:	 	 
	 	 Name:	Paul Kinnon	 
	 	Title: 	President and Chief Executive Officer	 




  






    	[Signature Page to Warrant]



    	 



    

 








SCHEDULE 1



TRANSGENOMIC, INC.



FORM OF EXERCISE NOTICE



[To be executed by the Holder to purchase shares of Common Stock under the Warrant]


 


Ladies and Gentlemen:


 


(1)              
The undersigned is the Holder of Warrant No. __________ (the “Warrant”) issued by Transgenomic,
Inc., a Delaware corporation (the “Company”). Capitalized terms used herein and not otherwise defined
herein have the respective meanings set forth in the Warrant.


 


(2)              
The undersigned hereby exercises its right to purchase __________ Warrant Shares pursuant to the Warrant.


 


(3)              
The Holder intends that payment of the Exercise Price shall be made as (check one):


 


	 	 ̈	Cash Exercise
	 	 	 
	 	 ̈	“Cashless Exercise” under Section 10 of the Warrant
	 	 	 


(4)              
If the Holder has elected a Cash Exercise, the Holder shall pay the sum of $_______ in immediately available funds to the
Company in accordance with the terms of the Warrant.


 


(5)              
Pursuant to this Exercise Notice, the Company shall deliver to the Holder’s Warrant Shares determined in accordance
with the terms of the Warrant. Please issue (check applicable box):


 


	 	 ̈	A certificate of certificates representing the Holder’s Warrant Shares in the name of the undersigned or in such other name as is specified below:
	 	 
	.	 ̈	The Holder’s Warrant Shares in electronic form to the following account:
	 	 
	 	
        Name and Contact for Broker:

         

	 	
        Broker no:

         

	 	
        Account no:

         

	 	
        Account holder: 



 






    	 



    	 



    

 


(6)              
By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that in giving effect to
the exercise evidenced hereby the Holder will not beneficially own in excess of the number of shares of Common Stock (as determined
in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended) permitted to be owned under Section 11 of
the Warrant to which this notice relates.


 


(7)              
By its delivery of this Exercise Notice, the undersigned represents and warrants to the Company that its representations
contained in Sections B(6), (7), (11), (12), (14) and (16) of the Purchase Agreement are true and correct as of the Exercise Date
and as of the date on which the Holder pays the Company the Exercise Price as if remade in their entirety (or, in the case of any
transferee Holder that is not a party to the Purchase Agreement, such transferee Holder represents and warrants to the Company
that such representations are true and correct as to such transferee Holder as of the Exercise Date and as of the date on which
such transferee Holder pays the Company the Exercise Price).


 


Dated: _______________, _____


 


Name of Holder: ____________________________


 


By: ______________________________________

Name:

Title:


 


(Signature must conform in all respects
to name of Holder as specified on the face of the Warrant)


 






    	 



    	 



    

 


SCHEDULE 2



TRANSGENOMIC, INC.



FORM OF ASSIGNMENT



[To be completed and executed by the Holder only upon transfer of the Warrant]


 


FOR VALUE RECEIVED,
the undersigned hereby sells, assigns and transfers unto ______________ (the “Transferee”) the right
represented by the within Warrant to purchase _____________ shares of Common Stock of Transgenomic, Inc., a Delaware corporation
(the “Company”) to which the within Warrant relates and appoints ___________ attorney to transfer said
right on the books of the Company with full power of substitution in the premises. In connection therewith, the undersigned represents,
warrants, covenants and agrees to and with the Company that:


 


		(a)	the offer and sale of the Warrant contemplated hereby is being made in compliance with Section
4(1) of the United States Securities Act of 1933, as amended (the “Securities Act”), or another valid
exemption from the registration requirements of Section 5 of the Securities Act and in compliance with all applicable securities
laws of the states of the United States;



 


		(b)	the undersigned has not offered to sell the Warrant by any form of general solicitation or general
advertising, including, but not limited to, any advertisement, article, notice or other communication published in any newspaper,
magazine or similar media or broadcast over television or radio, and any seminar or meeting whose attendees have been invited by
any general solicitation or general advertising;



 


		(c)	the undersigned has read the Transferee’s investment letter included herewith (as required
by Section 3(b) of the Warrant), and to its actual knowledge, the statements made therein are true and correct; and



 


		(d)	the undersigned understands that the Company may condition the transfer of the Warrant contemplated
hereby upon the delivery to the Company by the undersigned or the Transferee, as the case may be, of a written opinion of counsel
(which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect
that such transfer may be made without registration under the Securities Act and under applicable securities laws of the states
of the United States.



 


Dated: ___________, _____


______________________________________________________________

(Signature must conform in all respects to name of holder as specified on the face of the Warrant)


 


In the presence of:                                                             Address of Transferee: