Document:

Unassociated Document

     

    Exhibit 4.3

    REGISTRATION
RIGHTS AGREEMENT

     

    THIS
REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made as of this 29th day of
December, 2010 among Transgenomic, Inc., a Delaware corporation (the “Company”),
Third Security Senior Staff 2008 LLC, a Virginia limited liability company
(“Senior Staff LLC”), Third Security Staff 2010 LLC, a Virginia limited
liability company (“Staff LLC”), and Third Security Incentive 2010 LLC, a
Virginia limited liability company (“Incentive LLC” and, together with Senior
Staff LLC and Staff LLC, the “Investors”).

     

    WHEREAS,
the Investors and the Company are parties to the Series A Convertible Preferred
Stock Purchase Agreement, dated as of December 29, 2010 (the “Purchase
Agreement”), pursuant to which the Investors purchased from the Company shares
of Series A  Convertible Preferred Stock of the Company (the “Series A
Preferred”); and

     

    WHEREAS,
pursuant to the terms of the Purchase Agreement, in order to induce the
Investors to invest funds in the Company, the Company has agreed to enter into
this Agreement concurrently with the issuance of the Series A Preferred;
and

     

    WHEREAS,
the Investors and the Company agree to enter into this Agreement to set forth
the circumstances pursuant to which the Holders (as herein defined) can cause
the Company to register shares of the Common (as herein defined) issuable to the
Holders as set forth herein.

     

    NOW,
THEREFORE, the parties hereby agree as follows:

     

    ARTICLE
I

    DEFINITIONS

     

    
      	
            	
              1.1.

            	
              Definitions.

            

    

     

    In
addition to the terms defined elsewhere herein, when used herein, the following
terms shall have the meaning indicated hereunder for purposes of this
Agreement:

     

    “1934
Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar
successor federal statute and the rules and regulations thereunder, as the same
shall be in effect from time to time.

     

    “Act”
means the Securities Act of 1933, as amended, or any similar successor federal
statute and the rules and regulations thereunder, as the same shall be in effect
from time to time.

     

    “Affiliate”
shall mean, with respect to any Person, any other Person who controls, is
controlled by or is under common control with such Person.

     

    “Agreement”
means this Agreement as the same may be amended, supplemented or modified in
accordance with the terms hereof.

     

    “Board”
means the Board of Directors of the Company.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    “Common”
means Common Stock, $0.01 par value per share, of the Company.

     

    “Company”
has the meaning assigned to such term in the recitals to this
Agreement.

     

    “Form
S-3” means such form under the Act as in effect on the date hereof or any
registration form under the Act subsequently adopted by the SEC in lieu of Form
S-3 that permits inclusion or incorporation of substantial information by
reference to other documents filed by the Company with the SEC.

     

    “Holder”
means any Person who owns of record Registrable Securities as of the date hereof
(for and so long as such Person continues to own of record any Registrable
Securities) or any assignee or transferee thereof in accordance with Section 2.11.

     

    “Investors”
has the meaning assigned to such term in the recitals to this
Agreement.

     

    “Person”
means any individual or group of individuals, firm, corporation, partnership,
trust, incorporated or unincorporated association, joint venture, joint stock
company, limited liability company, governmental authority or other entity of
any kind, and shall include any successor (by merger or otherwise) of such
entity.

    

    “Purchase
Agreement” has the meaning assigned to such term in the recitals to this
Agreement.

    

    “Register”,
“Registered”, and “Registration” refer to a registration effected by preparing
and filing a registration statement or similar document in compliance with the
Act, and the declaration or ordering of effectiveness of such registration
statement or document.

     

    “Registrable
Securities” means (i) the Common issuable or issued upon conversion of the
Series A Preferred owned or acquired after the date hereof through the exercise
of the Warrants or otherwise by the Holders, and (ii) any Common issued as (or
issuable upon the conversion or exercise of any warrant, right or other security
that is issued as) a dividend or other distribution with respect to, or in
exchange for or in replacement of the shares referenced in (i)
above.  For the purposes of any determination under this Agreement,
the number of shares of Registrable Securities shall be determined by the number
of shares of Common outstanding that are, and the number of shares of Common
issuable pursuant to then exercisable or convertible securities that are
exercisable or convertible into, Registrable Securities.  Registrable
Securities issuable upon exercise of an option to purchase equity securities of
the Company or upon conversion of another security shall be deemed outstanding
for the purposes of this Agreement.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “SEC”
shall mean the Securities and Exchange Commission or any other federal agency at
the time administering the Act.

    

    “Series A
Preferred” has the meaning assigned to such term in the recitals to this
Agreement.

    

    “Shares”
means any of the Common, Series A Preferred or any other class of capital stock
of the Company or other securities convertible into or exercisable for any
shares of any class of capital stock of the Company or any combination
thereof.

    

    “Transaction
Documents” means collectively, this Agreement, the Purchase Agreement and the
Warrants.

    

    “Warrants”
means the warrants to purchase shares of Series A Preferred issued to the
Investors as of the date hereof pursuant to the terms of the Purchase
Agreement.

    

    ARTICLE
II

    REGISTRATION
RIGHTS

     

    
      	
            	
              2.1

            	
              General; Securities
      Subject to this Agreement.

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      Company hereby grants registration rights to the Holders upon the terms
      and conditions set forth in this
Agreement.

            

    

    

    
      	
               
      

            	
              (b)

            	
              For
      the purposes of this Agreement, Registrable Securities will cease to be
      Registrable Securities when (i) a registration statement covering such
      Registrable Securities has been declared effective under the Act by the
      SEC and such Registrable Securities have been disposed of pursuant to such
      effective registration statement or (ii) the entire amount of Registrable
      Securities proposed to be sold by a Holder, in the opinion of counsel
      satisfactory to the Company and the Holder, each in their reasonable
      judgment, may be distributed to the public within any 90-day period
      pursuant to Rule 144 (or any successor provision then in effect) under the
      Act.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              2.2

            	
              Demand
      Registration.

            

    

    
      	
               
      

            	
              (a)

            	
              If
      the Company shall receive at any time within five (5) years after the date
      hereof a written request from the Holders holding at least a majority of
      the Registrable Securities held by all Holders (the “Initiating Holders”)
      that the Company register (a “Demand Registration”) that number of
      Registrable Securities held by such Holders stated in such request (which
      amount of Registrable Securities shall have a fair market value of at
      least $2,000,000 in the aggregate, based upon the last sales price of the
      Common on a national exchange or over-the-counter market, as applicable,
      on the day immediately preceding the date of such request), then the
      Company shall (i) within ten (10) days of receipt thereof, give written
      notice of such request to all other Holders of such request for a Demand
      Registration  and (ii) take such steps as are necessary to
      prepare for the registration of the Registrable Securities and file as
      soon as practicable, and in any event within ninety (90) days of the
      receipt of such request, a registration statement under the Act covering
      all Registrable Securities that the Holders request to be registered,
      including any Registrable Securities requested to be included in such
      registration by Holders other than the Initiating Holders via the delivery
      to the Company of written notice of such request no later than ten (10)
      days following the Company’s delivery of written notice of the Demand
      Registration, subject to the limitations contained
      herein.  Notwithstanding the foregoing, the Company shall not be
      obligated to effect more than two (2) Demand Registrations pursuant to
      this Section
      2.2 nor shall the Company be obligated to effect more than one (1)
      Demand Registration within any period of twelve (12) consecutive
      months.  If at the time of any request to register Registrable
      Securities pursuant to this Section 2.2,
      the Company is engaged in any other activity that, in the good faith
      determination of the Board, would make it materially detrimental to the
      Company and its stockholders for such Demand Registration to be effected
      at such time, then the Company may, at its option, direct that such
      request be delayed for a reasonable period not in excess of one hundred
      twenty (120) days from the date of such request, such right to delay a
      request to be exercised by the Company not more than once in any twelve
      (12) month period.  In addition, the Company shall not be
      required to effect any registration within ninety (90) days after the
      effective date of any other registration statement of the Company (other
      than a registration statement on Form S-4 or S-8 or any successor
      thereto).  Each request for a Demand Registration by the Holders
      shall specify the number of Registrable Securities proposed to be
      registered and sold in connection with such Demand Registration and the
      intended method of disposition
thereof.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              If
      the Initiating Holders intend to distribute the Registrable Securities
      covered by their request by means of an underwriting, they shall so advise
      the Company as a part of their request made pursuant to Section
      2.2(a).  The underwriter or underwriters shall be
      selected by the Company and shall be reasonably acceptable to the
      Initiating Holders.  All Holders proposing to distribute their
      securities through such underwriting shall (together with the Company as
      provided in Section 2.6(e))
      enter into an underwriting agreement in customary form with the
      underwriter or underwriters selected for such
      underwriting.  Notwithstanding any other provision of this Section 2.2, if
      the underwriter advises the Holders in writing that market factors require
      a limitation of the number of shares to be underwritten, then the
      Initiating Holders shall so advise all Holders of Registrable Securities
      that would otherwise be underwritten pursuant hereto, and the number of
      shares of Registrable Securities that may be included in the underwriting
      shall be allocated among the Holders in proportion to the amount of
      Registrable Securities owned by each such Holder; provided, however, that the
      number of shares of Registrable Securities to be included in such
      underwriting shall not be reduced unless all other securities are first
      entirely excluded from the underwriting.  If any Holder that has
      requested inclusion in such registration in accordance with the terms
      hereof does not agree to the terms of any such underwriting agreed to by
      the Company, the underwriter and the Initiating Holders, such Holder shall
      be excluded therefrom by written notice from the Company, the underwriter
      or the Initiating Holders and the Registrable Securities held by such
      Holder will be withdrawn from the registration.  If shares are
      so withdrawn from the registration and if the number of shares to be
      included in such registration was previously reduced as a result of
      marketing factors pursuant to this Section 2.2(b),
      then the Company shall offer to all Holders who have retained the right to
      include Registrable Securities in the registration the right to include
      additional securities in the registration in an amount equal to the number
      of shares so withdrawn, with such shares to be allocated in proportion to
      the amount of Registrable Securities owned by each
  Holder.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      Company shall use its reasonable best efforts to cause any Demand
      Registration to become and remain effective as soon as
      practicable.  A registration shall not constitute a Demand
      Registration until it has become effective and remains continuously
      effective for the lesser of (i) the period during which all Registrable
      Securities registered in the Demand Registration are sold or (ii) one
      hundred eighty (180) days; provided, however, that a
      registration shall not constitute a Demand Registration if (x) after such
      Demand Registration has become effective, such registration or the related
      offer, sale or distribution of Registrable Securities thereunder is
      prevented by any stop order, injunction or other order or requirement of
      the SEC or other governmental agency or court for any reason not
      attributable to the Holders and such interference is not thereafter
      eliminated in a reasonable period of time, (y) the conditions to closing
      specified in the underwriting agreement, if any, entered into in
      connection with such Demand Registration are not satisfied or waived,
      other than by reason of a failure by the Holders or (z) if the request for
      such Demand Registration is withdrawn by the Holders and such Holders
      reimburse the Company for any expenses incurred in relation
      thereto.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              2.3

            	
              Company
      Registration.

            

    

    If (but
without any obligation to do so) the Company proposes to register any of its
Common under the Act in connection with an underwritten offering of such Common
for its own account (other than a registration statement on Form S-4 or S-8 or
any successor thereto), then the Company shall give written notice of such
proposed filing to the Holders at least ten (10) days before the anticipated
filing date, and such notice shall describe the proposed registration and
distribution and offer such Holders the opportunity to register the number of
Registrable Securities as the Holders may request.  Upon the written
request of any Holder given within twenty (20) days after mailing of such notice
by the Company in accordance with Section 3.5, the
Company shall, subject to the terms of this Agreement, cause to be registered
under the Act all of the Registrable Securities that the Holders requested to be
registered.

     

    
      	
               
      

            	
              2.4

            	
              Form S-3
      Registration.

            

    

     

    
      	
               
      

            	
              (a)

            	
              In
      case the Company shall receive from any Holder or Holders a written
      request or requests that the Company effect a registration on Form S-3
      with respect to all or a part of the Registrable Securities owned by such
      Holders (which amount of Registrable Securities shall have a fair market
      value of at least $500,000 in the aggregate, based upon the last sales
      price of the Common on a national exchange or over-the-counter market, as
      applicable, on the day immediately preceding the date of such request),
      the Company will (i) promptly give notice of the proposed registration to
      all other Holders and (ii) as soon as practicable, use its reasonable best
      efforts to effect the registration of all or such portion of such Holders’
      Registrable Securities as are specified in such request, together with all
      or such portion of the Registrable Securities of any other Holders joining
      in such request as are specified in a written request given within ten
      (10) days after receipt of such written notice from the Company; provided, however, that the
      Company shall not be obligated to effect any such registration pursuant to
      this Section
      2.4: (w) if Form S-3 is not available for such offering by the
      Holders; (x) if the Holders, together with the holders of any other
      securities of the Company entitled to inclusion in such registration,
      propose to sell Registrable Securities and such other securities (if any)
      at an aggregate price to the public (after deduction of any underwriters’
      discounts or commissions) of less than $500,000; (y) if the Company has,
      within the twelve (12) month period preceding the date of such request,
      already effected one (1) such registration on Form S-3 for the Holders
      pursuant to this Section 2.4; or
      (z) if the Company shall furnish to the initiating Holders a certificate
      signed by the Chief Executive Officer or President of the Company stating
      that in the good faith judgment of the Board, it would be materially
      detrimental to the Company and its stockholders for such Form S-3
      Registration to be effected at such time, in which event the Company shall
      have the right to defer the filing of the Form S-3 registration statement
      for a period of not more than ninety (90) days after receipt of the
      request of the Holders under this Section
      2.4.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Subject
      to the foregoing, the Company shall file a registration statement covering
      the Registrable Securities and other securities so requested to be
      registered as soon as practicable (and in any event within forty-five (45)
      days) after receipt of the request or requests of the
    Holders.

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (c)

            	
              No
      registration requested by any Holder pursuant to this Section 2.4
      shall be deemed a Demand Registration pursuant to Section
      2.2.

            

    

     

    
      	
            	
              2.5

            	
              Restrictions on
      Sales.

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      Company agrees not to effect any public sale or distribution of any Shares
      (except (i) pursuant to registrations on Form S-4 or S-8 or any successor
      thereto or (ii) for those securities being sold by the Company pursuant to
      a registration statement in which the Holders of Registrable Securities
      are participating) during the period beginning on the effective date of
      any registration statement in which the Holders of Registrable Securities
      are participating and ending on the earlier of (x) the date on which all
      Registrable Securities registered on such registration statement are sold
      or (y) one hundred eighty (180) days after the effective date of such
      registration statement.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Each
      Holder agrees that, if requested by the underwriters for an offering of
      equity securities by the Company, such Holder shall not sell, transfer,
      pledge, make any short sale of, grant any option for the purchase of or
      enter into any hedging or similar transaction with the same economic
      effect as a sale of any Registrable Securities held by such Holder (other
      than those included in the offering pursuant to the terms hereof) for a
      period specified by such underwriters not to exceed one hundred eighty
      (180) days (or such other period as may be requested by the Company or an
      underwriter to accommodate regulatory restrictions on (1) the publication
      or other distribution of research reports and (2) analyst recommendations
      and opinions, including, but not limited to, the restrictions contained in
      Financial Industry Regulatory Authority (“FINRA”) Rule 2711(f)(4) or New
      York Stock Exchange Rule 472(f)(4), or any successor provisions or
      amendments thereto) following the effective date of the registration
      statement relating to such offering (or, in the case of an offering
      pursuant to an effective shelf registration statement pursuant to Rule 415
      of the Act, the pricing date for such underwritten offering); provided, however, that all
      officers and directors of the Company and holders of at least five percent
      (5%) of the Company’s voting securities enter into similar agreements. The
      Company may impose stop-transfer instructions with respect to any
      Registrable Securities subject to the foregoing restriction until the end
      of the period referenced above.  The underwriters of the
      Company’s equity securities are intended third-party beneficiaries of this
      Section
      2.5(b) and shall have the right, power and authority to enforce the
      provisions hereof as though they were parties
  hereto.

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
            	
              2.6

            	
              Obligations of the
      Company.

            

    

     

    Whenever
required under this Article II to effect
the registration of any Registrable Securities, the Company shall, as
expeditiously as reasonably possible:

     

    
      	
               
      

            	
              (a)

            	
              Prepare
      and file with the SEC a registration statement with respect to such
      Registrable Securities and use its reasonable best efforts to cause such
      registration statement to become effective, and, upon the request of the
      Holders of a majority of the votes then represented by the Registrable
      Securities held by the Holders registered thereunder, keep such
      registration statement effective for a period of time required for the
      distribution of the Registrable Securities; provided, however, that
      such period of time will not exceed one hundred eighty (180) days after
      the effective date of such registration statement (the “Effectiveness
      Period”); provided, further, that (i) the
      Effectiveness Period shall be extended for a period of time equal to the
      period the Holders refrain from selling any securities included in such
      registration at the request of an underwriter of Common (or other
      securities) of the Company; and (ii) in the case of any registration of
      Registrable Securities on Form S-3 that are intended to be offered on a
      continuous or delayed basis, the Effectiveness Period shall be extended,
      if necessary, to keep the registration statement effective for up to one
      (1) year or, if earlier, until all such Registrable Securities are sold,
      provided that
      Rule 415, or any successor rule under the Act, permits an offering on a
      continuous or delayed basis, and provided further that
      applicable rules under the Act governing the obligation to file a
      post-effective amendment permit, in lieu of filing a post-effective
      amendment that (x) includes any prospectus required by Section 10(a)(3) of
      the Act or (y) reflects facts or events representing a material or
      fundamental change in the information set forth in the registration
      statement, the incorporation by reference of information required to be
      included in (x) and (y) above to be contained in periodic reports filed
      pursuant to Section 13 or 15(d) of the 1934 Act in the registration
      statement.  In the event that, in the good faith and reasonable
      judgment of the Company, it is advisable to suspend use of the prospectus
      relating to such registration statement for a discrete period of time (a
      “Deferral Period”) due to pending material corporate developments or
      similar material events that have not yet been publicly disclosed and as
      to which the Company believes public disclosure will be prejudicial to the
      Company, the Company shall deliver a certified resolution of the Board,
      signed by a duly authorized officer of the Company, to each Holder of
      Registrable Securities covered by such registration statement, to the
      effect of the foregoing and, upon receipt of such certificate, such
      Holders agree not to dispose of such Holders’ Registrable Securities
      covered by such registration or prospectus (other than in transactions
      exempt from the registration requirements under the Act); provided, however, that such
      Deferral Period shall be no longer than ninety (90) days and that there
      may be only one Deferral Period during any twelve (12) month
      period.  The Effectiveness Period shall be extended for a period
      of time equal to such Deferral
Period.

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              Prepare
      and file with the SEC such amendments and supplements to such registration
      statement and the prospectus used in connection with such registration
      statement as may be necessary to comply with the provisions of the Act
      with respect to the disposition of all securities covered by such
      registration statement.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Furnish
      to the Holders of Registrable Securities covered by such registration
      statement such numbers of copies of a prospectus, including a preliminary
      prospectus, and any amendment or supplement thereto and a reasonable
      number of copies of the then-effective registration statement and any
      post-effective amendment thereto, all in conformity with the requirements
      of the Act, and such other documents as they may reasonably request in
      order to facilitate the disposition of such Registrable
      Securities.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Use
      its reasonable best efforts to register and qualify the securities covered
      by such registration statement under such other securities or “blue sky”
      laws of such jurisdictions, and to continue such qualification in effect
      in such jurisdictions, as shall be reasonably requested by the Holders;
      provided that the
      Company shall not be required in connection therewith or as a condition
      thereto to qualify to do business or to file a general consent to service
      of process in any such states or
jurisdictions.

            

    

     

    
      	
               
      

            	
              (e)

            	
              In
      the event of any underwritten public offering, enter into and perform its
      obligations under an underwriting agreement, in usual and customary form,
      with the managing underwriter of such offering; provided that each
      Holder participating in such underwriting shall also enter into and
      perform its obligations under such underwriting
  agreement.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Notify
      each Holder of Registrable Securities covered by such registration
      statement at any time when a prospectus relating thereto is required to be
      delivered under the Act of the happening of any event as a result of which
      the prospectus included in such registration statement, as then in effect,
      includes an untrue statement of a material fact or omits to state a
      material fact required to be stated therein or necessary to make the
      statements therein, in the light of the circumstances under which they
      were made, not misleading, and at the request of any such Holder prepare
      and furnish to such Holder a reasonable number of copies of a supplement
      or an amendment to such prospectus as may be necessary so that, as
      thereafter delivered to the purchasers of such Registrable Securities,
      such prospectus shall not include an untrue statement of a material fact
      or omit to state a material fact required to be stated therein or
      necessary to make the statements therein not misleading in the light of
      the circumstances then
existing.

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (g)

            	
              Use
      its reasonable best efforts to cause all such Registrable Securities
      registered pursuant hereto to be listed on each securities exchange or
      automated quotation system on which similar securities issued by the
      Company are then listed.

            

    

     

    
      	
               
      

            	
              (h)

            	
              Provide
      a transfer agent and registrar for all Registrable Securities registered
      pursuant hereto and a CUSIP number for all such Registrable Securities, in
      each case not later than the effective date of such
      registration.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Permit
      a single firm of counsel designated as selling stockholders’ counsel (the
      “Holder Counsel”) by the Holders participating in such registration to
      review, at the expense of the Holders, the registration statement and all
      amendments and supplements thereto a reasonable period of time prior to
      their filing with the SEC and state authorities, and shall not file any
      document in a form to which such counsel reasonably
    objects.

            

    

     

    
      	
               
      

            	
              (j)

            	
              Subject
      to reasonable confidentiality arrangements, make available for inspection,
      upon reasonable notice during the Company’s regular business hours, by any
      seller of Registrable Securities covered by a registration statement, any
      managing underwriter participating in any disposition pursuant to such
      registration statement, the Holder Counsel and any accountant retained by
      any such seller or any managing underwriter (each, an “Inspector” and
      collectively, the “Inspectors”), all financial and other records,
      pertinent corporate documents and properties of the Company (collectively,
      the “Records”) as shall be reasonably necessary to enable them to exercise
      their due diligence responsibility, and cause the Company’s officers,
      directors and employees, and the independent public accountants of the
      Company, to supply all information reasonably requested by any such
      Inspector in connection with such registration
      statement.  Records that the Company determines, in good faith,
      to be confidential and of which it notifies the Inspectors are
      confidential shall not be disclosed by the Inspectors unless (x) the
      disclosure of such Records is necessary to avoid or correct a misstatement
      or omission in the registration statement, (y) the release of such Records
      is ordered pursuant to a subpoena or other order from a court of competent
      jurisdiction or (z) the information in such Records was known to the
      Inspectors on a non-confidential basis prior to its disclosure by the
      Company or has been made generally available to the
      public.  Each seller of Registrable Securities agrees that it
      shall, upon learning that disclosure of such Records is sought in a court
      of competent jurisdiction, give notice to the Company and allow the
      Company, at the Company’s expense, to undertake appropriate action to
      prevent disclosure of the Records deemed
  confidential.

            

    

     

    
      	
               
      

            	
              (k)

            	
              If
      such sale is pursuant to an underwritten offering, use its reasonable best
      efforts to obtain a “cold comfort”  letter from the Company’s
      independent public accountants in customary form and covering such matters
      of the type customarily covered by “cold comfort” letters as Holders’
      counsel or the managing underwriter reasonably
  request.

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (l)

            	
              Use
      its reasonable best efforts to furnish, on the date Registrable Securities
      are delivered to the underwriters for sale pursuant to an underwritten
      registration, an opinion, dated such date, of counsel representing the
      Company for the purposes of such registration, addressed to the
      underwriters, covering such legal matters with respect to the registration
      in respect of which such opinion is being given as are customarily
      included in such opinions and are reasonably acceptable to counsel
      representing the Company.

            

    

     

    
      	
               
      

            	
              (m)

            	
              Use
      its reasonable best efforts to comply with all applicable rules and
      regulations of the SEC, and make available to its security holders, as
      soon as reasonably practicable but no later than fifteen (15) months after
      the effective date of the registration statement, an earnings statement
      covering a period of twelve (12) months beginning after the effective date
      of the registration statement, in a manner which satisfies the provisions
      of Section 11(a) of the Act and Rule 158
  thereunder.

            

    

     

    
      	
               
      

            	
              (n)

            	
              Cooperate
      with each seller of Registrable Securities and each underwriter
      participating in the disposition of such Registrable Securities and their
      respective counsel in connection with any filings required to be made with
      the FINRA.

            

    

     

    
      	
               
      

            	
              (o)

            	
              Use
      its reasonable best efforts to take all other steps necessary to effect
      the registration of the Registrable Securities contemplated
      hereby.

            

    

     

    
      	
            	
              2.7

            	
              Furnish
      Information.

            

    

     

    It shall
be a condition precedent to the obligations of the Company to take any action
pursuant to this Article II with
respect to the Registrable Securities that any selling Holder shall timely
furnish to the Company such information regarding itself, the Registrable
Securities held by it, and the intended method of disposition of such securities
as shall be required to effect the registration of such Registrable
Securities.

     

    
      	
            	
              2.8

            	
              Expenses of
      Registration.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Except
      as set forth in Section 2.8(b),
      the Company shall bear and pay all expenses incurred in connection with
      any registration, filing or qualification of Registrable Securities
      pursuant to this Agreement, including (without limitation) all
      registration, filing and qualification fees, printers’ and accounting
      fees, “blue sky” fees and expenses, including fees and disbursements of
      counsel related to all “blue sky” matters, fees and expenses of listing
      any Registrable Securities on any securities exchange or automated
      quotation system on which shares of Common are then listed, fees and
      disbursements of counsel for the Company but excluding stock transfer
      taxes that may be payable by the selling Holders and underwriting
      discounts and commissions relating to Registrable Securities covered by
      such registration, which shall be borne pro rata by the
      Holders.  Expenses for any and all registrations not
      specifically payable by the Company pursuant to this Section 2.8(a)
      shall be borne pro
      rata by the selling stockholders based on the number of shares of
      securities sold by each such selling stockholder in the
      offering.

            

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              Notwithstanding
      Section
      2.8(a), the Company shall not be required to pay for any expenses
      of any registration proceeding begun pursuant to Section 2.2 if
      the registration request is subsequently withdrawn at the request of the
      Initiating Holders (in which case all participating Holders shall bear
      such expenses), unless the Holders holding at least a majority of the
      Registrable Securities agree to forfeit their right to one of the demand
      registrations to which they are entitled pursuant to Section 2.2;
      provided, however, that if such
      withdrawal occurs prior to the date the registration statement shall have
      become effective and at the time of such withdrawal, the Holders have
      learned of a material adverse change in the financial condition, business,
      prospects, properties or results of operations of the Company from that
      known to the Holders at the time of their request and have withdrawn the
      request within five (5) business days following disclosure by the Company
      of such material adverse change, then the Holders shall not be required to
      pay any of such expenses and shall retain their respective rights pursuant
      to Section
      2.2.

            

    

     

    
      	
            	
              2.9

            	
              Underwriting
      Requirements.

            

    

     

    In
connection with any offering involving an underwriting of shares being issued by
the Company, the Company shall be required under Section 2.3 to
include any securities held by the Holders in such underwriting on the same
terms and conditions as the securities of the Company included therein, but only
in such quantity as the underwriters determine in their reasonable and good
faith judgment and written opinion will not jeopardize the success of the
offering by the Company.  If such written opinion states that the
registration of all or part of the Registrable Securities that the Holders have
requested to be included would materially adversely affect such offering, then
the Company shall be required to include in such registration, to the extent of
the amount that the underwriters believe may be sold without jeopardizing the
success of the offering, first, all of the
securities to be offered for the account of the Company; second, the
Registrable Securities to be offered for the account of the Holders, pro rata based upon the
amount recommended by the underwriters; and third, any other
securities required to be included in such underwriting and so requested to be
included; provided,
however, that the
aggregate value of the Registrable Securities to be included in such
registration by the Holders may not be so reduced to less than twenty-five
percent (25%) of the total value of all securities included in such
registration.  For purposes of the preceding sentence concerning
apportionment, for any selling stockholder that is a Holder of Registrable
Securities that is a partnership, limited liability company or corporation, the
partners, retired partners, members and stockholders of such Holder, or the
estates and family members of any such partners and retired partners or members
and any trusts for the benefit of any of the foregoing persons and Affiliates of
such Holder shall be deemed to be a single “selling stockholder,” and any pro rata reduction with
respect to such “selling stockholder” shall be based upon the aggregate amount
of Registrable Securities owned by all entities and individuals included in such
“selling stockholder,” as defined in this sentence.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	
            	
              2.10

            	
              Indemnification.

            

    

     

    In the
event any Registrable Securities are included in a registration statement under
this Article
II:

     

    
      	
               
      

            	
              (a)

            	
              To
      the extent permitted by law, the Company will indemnify and hold harmless
      each Holder and their respective officers, directors, trustees, partners,
      employees, any underwriter (as defined in the Act) for such Holder and
      each Person, if any, who controls such Holder or underwriter within the
      meaning of the Act or the 1934 Act (each, a “Holder Indemnified Person”),
      against any losses, claims, damages, expenses or liabilities (joint or
      several) to which they may become subject under the Act or the 1934 Act,
      insofar as such losses, claims, damages, expenses or liabilities (or
      actions in respect thereof) arise out of or are based upon any of the
      following statements, omissions or violations (collectively, a
      “Violation”): (i) any untrue statement or alleged untrue statement of a
      material fact contained in such registration statement, including any
      preliminary prospectus or final prospectus contained therein or any
      amendments or supplements thereto, (ii) the omission or alleged omission
      to state therein a material fact required to be stated therein, or
      necessary to make the statements therein not misleading, or (iii) any
      violation or alleged violation by the Company of the Act, the 1934 Act, or
      any rule or regulation promulgated under the Act or the 1934 Act; and the
      Company will reimburse, as incurred, the Holder Indemnified Persons, for
      any legal or other expenses reasonably incurred by them in connection with
      investigating or defending any such loss, claim, damage, liability or
      action; provided,
      however, that the
      indemnity agreement contained in this Section 2.10(a)
      shall not apply to amounts paid in settlement of any such loss, claim,
      damage, liability or action if such settlement is effected without the
      consent of the Company (which consent shall not be unreasonably withheld),
      nor shall the Company be liable in any such case for any such loss, claim,
      damage, liability or action to the extent that it arises out of or is
      based upon a Violation that occurs in reliance upon and in conformity with
      written information furnished expressly for use in connection with such
      registration by any Holder Indemnified
Person.

            

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              To
      the extent permitted by law, each selling Holder will indemnify and hold
      harmless the Company, its directors, its officers, its employees, each
      Person, if any, who controls the Company within the meaning of the Act and
      any underwriter (each, a “Company Indemnified Person”) against any losses,
      claims, damages, expenses or liabilities (joint or several) to which any
      of the foregoing Persons may become subject, under the Act or the 1934 Act
      insofar as such losses, claims, damages, expenses or liabilities (or
      actions in respect thereto) arise out of or are based upon any Violation,
      in each case to the extent (and only to the extent) that such Violation
      occurs in reliance upon and in conformity with written information
      furnished by such Holder expressly for use in connection with such
      registration; and each such Holder will reimburse, as incurred, any legal
      or other expenses reasonably incurred by any Company Indemnified Person,
      in connection with investigating or defending any such loss, claim,
      damage, liability or action; provided, however, that the
      indemnity agreement contained in this Section 2.10(b)
      shall not apply to amounts paid in settlement of any such loss, claim,
      damage, liability or action if such settlement is effected without the
      consent of the Holder (which consent shall not be unreasonably withheld);
      provided further,
      that, in no event shall any indemnity under this Section 2.10(b)
      exceed the aggregate proceeds (net of underwriting discounts and
      commissions) from the sale of the Registrable Securities received by such
      Holder from the shares sold by such Holder in the offering in
      question.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Promptly
      after receipt by an indemnified party under this Section 2.10 of
      notice of the commencement of any action (including any governmental
      action), such indemnified party will, if a claim in respect thereof is to
      be made against any indemnifying party under this Section 2.10,
      deliver to the indemnifying party a written notice of the commencement
      thereof; provided, however, that the
      failure to so notify the indemnifying party shall not relieve the
      indemnifying party of any liability that it may have to the indemnified
      party hereunder, except to the extent that the indemnifying party is
      materially prejudiced by such failure to notify.  The
      indemnifying party shall have the right to participate in, and, to the
      extent the indemnifying party so desires, jointly with any other
      indemnifying party similarly noticed, to assume the defense thereof with
      counsel mutually satisfactory to the parties; provided, however, that an
      indemnified party (together with all other indemnified parties that may be
      represented without conflict by one counsel) shall have the right to
      retain one separate counsel, with the fees and expenses to be paid by the
      indemnifying party, if representation of such indemnified party by the
      counsel retained by the indemnifying party would be inappropriate due to
      actual or potential differing interests between such indemnified party and
      any other party represented by such counsel in such
      proceeding.  An indemnifying party shall not, without the prior
      written consent of the indemnified parties, settle, compromise or consent
      to the entry of any judgment with respect to any pending or threatened
      claim, action, suit or proceeding in respect of which indemnification may
      be sought hereunder by such indemnified parties (whether or not the
      indemnified parties are actual or potential parties to such claim or
      action) unless such settlement, compromise or consent includes a release
      of such indemnified parties reasonably acceptable to such indemnified
      parties from all liability arising out of such claim, action, suit or
      proceeding or unless the indemnifying parties shall confirm in a written
      agreement reasonably acceptable to such indemnified parties, that
      notwithstanding any federal, state or common law, such settlement,
      compromise or consent shall not adversely affect the right of any
      indemnified party to indemnification as provided in this Article
      II.

            

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (d)

            	
              If
      the indemnification provided for in this Section 2.10 is
      held by a court of competent jurisdiction to be unavailable to an
      indemnified party with respect to any loss, liability, claim, damage or
      expense referred to therein, then the indemnifying party, in lieu of
      indemnifying such indemnified party hereunder, shall contribute to the
      amount paid or payable by such indemnified party as a result of such loss,
      liability, claim, damage or expense in such proportion as is appropriate
      to reflect the relative fault of the indemnifying party on the one hand
      and of the indemnified party on the other in connection with the
      statements or omissions that resulted in such loss, liability, claim,
      damage or expense as well as any other relevant equitable
      considerations.  The relative fault of the indemnifying party
      and of the indemnified party shall be determined by reference to, among
      other things, whether the untrue or alleged untrue statement of a material
      fact or the omission to state a material fact relates to information
      supplied by the indemnifying party or by the indemnified party and the
      parties’ relative intent, knowledge, access to information, and
      opportunity to correct or prevent such statement or
      omission.  Notwithstanding the foregoing, the liability of each
      Holder under this Section 2.10(d)
      shall be limited to an amount equal to the aggregate proceeds (net of
      underwriting discounts and commissions) from the sale of the Registrable
      Securities received by such Holder from the shares sold by such Holder in
      the offering in question.

            

    

     

    
      	
               
      

            	
              (e)

            	
              The
      obligations of the Company and the Holders under this Section 2.10
      shall survive the completion of any offering of Registrable Securities in
      a registration statement under this Article II and
      otherwise.

            

    

     

    
      	
            	
              2.11

            	
              Assignment of
      Registration Rights.

            

    

     

    The
rights to cause the Company to register Registrable Securities pursuant to this
Article II may
be assigned (but only with all related obligations hereunder) by (a) a Holder to
a transferee or assignee of such securities who, after such assignment or
transfer, holds at least 10% of the outstanding Registrable Securities (subject
to appropriate adjustment for stock splits, stock dividends, combinations and
other recapitalizations and including for purposes of such calculation the
shares of Common then issuable upon conversion of any securities of the
Company), (b) a Holder to its partners, members, former partners or former
members (or their estates) or Affiliates or (c) a Holder to any family member,
family limited partnership, family limited liability company or trust for the
benefit of the Holder; provided in each case that:
(i) the Company is, within a reasonable time after such transfer, furnished with
written notice of the name and address of such transferee or assignee and the
securities with respect to which such registration rights are being assigned;
(ii) such transferee or assignee agrees in writing to be bound by and subject to
the terms and conditions of this Agreement as a “Holder”; and (iii) such
assignment shall be effective only if immediately following such transfer the
further disposition of such securities by the transferee or assignee is
restricted under the Act.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      	
            	
              2.12

            	
              Limitations on
      Subsequent Registration
Rights.

            

    

     

    From and
after the date of this Agreement, the Company shall not, without the prior
written consent of the Holders holding at least a majority of the outstanding
Registrable Securities held by the Holders, enter into any agreement with any
holder or prospective holder of any securities of the Company that would allow
such holder or prospective holder (a) to include such securities in any
registration filed under Section 2.2, Section 2.3 or Section 2.4 hereof,
unless under the terms of such agreement, such holder or prospective holder may
include such securities in any such registration only to the extent that the
inclusion of such prospective holder’s securities will not reduce the amount of
the Registrable Securities of the existing Holders that are included or (b) to
effect a registration that could result in such registration statement being
declared effective within one hundred eighty (180) days of the effective date of
any registration effected pursuant to Section 2.2 or Section
2.4.

     

    
      	
            	
              2.13

            	
              Termination of
      Registration Rights.

            

    

     

    This
Agreement shall terminate and be of no further force or effect, and no Holder
shall be entitled to exercise any right provided for in this Article II after the
earlier of (i) five (5) years following the date hereof and (ii) as to each
Holder, the date on which such Holder can sell all shares of its Registrable
Securities without restriction pursuant to Rule 144 or any successor provision
thereto, without regard to volume limitations or manner of sale.

    

    ARTICLE
III

    MISCELLANEOUS

     

    
      	
            	
              3.1

            	
              Successors and
      Assigns.

            

    

     

    Except as
otherwise provided herein, the terms and conditions of this Agreement shall
inure to the benefit of and be binding upon the respective successors and
assigns of the parties (including transferees of any shares of Registrable
Securities).  Nothing in this Agreement, express or implied, is
intended to confer upon any party other than the parties hereto or their
respective successors and assigns any rights, remedies, obligations or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    
      	
            	
              3.2

            	
              Governing
      Law.

            

    

     

    This
Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware, without regard to the principles of conflicts of law
thereof.

     

    
      	
            	
              3.3

            	
              Counterparts.

            

    

     

    This
Agreement may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the
same agreement, and may be delivered to the other parties hereto by facsimile or
similar electronic means.

     

    
      	
            	
              3.4

            	
              Headings.

            

    

     

    The
headings and subheadings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

     

    
      	
            	
              3.5

            	
              Notices.

            

    

     

    All
notices, demands and other communications provided for or permitted hereunder
shall be made in writing and shall be by registered or certified first-class
mail, return receipt requested, telecopier, courier service or personal
delivery:

    

    
      	
               
      

            	
              (a)

            	
              if
      to the Company:

            

    

    

    Transgenomic,
Inc.

    12325
Emmet Street

    Omaha,
Nebraska 68164

    Attention:
Craig J. Tuttle

    Facsimile:  (402)
452-5461

    

    with a copy to:

    

    Paul,
Hastings, Janofsky & Walker, LLP

    4747
Executive Drive, 12th Floor

    San
Diego, Ca  92121

    Attention:  Carl
R. Sanchez, Esq.

    Facsimile:  (858)
458-3005

    

    and

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (b)

            	
              if
      to the Investors:

            

    

    

    c/o Third
Security, LLC

    1881
Grove Avenue

    Radford,
Virginia 24141

    Attention:
Tad Fisher

    Facsimile:
540-633-7939

    

    with a copy to:

    

    Troutman
Sanders LLP

    Troutman
Sanders Building

    1001
Haxall Point

    Richmond, Virginia 23219

    Attention:
John Owen Gwathmey

    Facsimile:
804-698-5174

    

    
      	
               
      

            	
               (c)

            	
              if
      to any other Holders, to the address reflected in the stock ledger of the
      Company

            

    

    

    All such
notices and communications shall be deemed to have been duly given and received
when delivered by hand, if personally delivered; when delivered by courier, if
delivered by commercial courier service; and five days of business after being
deposited in the mail, postage prepaid, if mailed.

    

    
      	
            	
              3.6 

            	
              Expenses.

            

    

    

    If any
action at law or in equity is necessary to enforce or interpret the terms of
this Agreement, the prevailing party shall be entitled to reasonable attorneys’
fees, costs and necessary disbursements in addition to any other relief to which
such party may be entitled.

     

    
      	
            	
              3.7 

            	
              Amendments and
      Waivers.

            

    

     

    
      	
               
      

            	
              (a)

            	
              No
      failure or delay on the part of any party to this Agreement in exercising
      any right, power or remedy hereunder shall operate as a waiver thereof,
      nor shall any single or partial exercise of any such right, power or
      remedy preclude any other or further exercise thereof or the exercise of
      any other right, power or remedy.  The remedies provided for
      herein are cumulative and are not exclusive of any remedies that may be
      available to the parties hereto at law, in equity or
      otherwise.

            

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (b)

            	
              Any
      amendment, supplement or modification of or to any provision of this
      Agreement, any waiver of any provision of this Agreement, and any consent
      to any departure by any of the parties to this Agreement from the terms of
      any provision of this Agreement, shall be effective (i) only if it is made
      or given in writing and signed by the Company and Holders holding at least
      a majority of the outstanding Registrable Securities, and (ii) only in the
      specific instance and for the specific purpose for which made or
      given.  Except where notice is specifically required by this
      Agreement, no notice to or demand on the Company in any case shall entitle
      the Company to any other further notice or demand in similar or other
      circumstances.

            

    

    

    
      	
            	
              3.8

            	
              Severability.

            

    

    

    If any
one or more of the provisions contained herein, or the application thereof in
any circumstance, is held invalid, illegal or unenforceable in any respect for
any reason, the validity, legality and enforceability of any such provision in
every other respect and of the remaining provisions hereof shall not be in any
way impaired, unless the provision held invalid, illegal or unenforceable shall
substantially impair the benefits of the remaining provisions
hereof.

    

    
      	
            	
              3.9

            	
              Rules of
      Construction.

            

    

    

    Unless
the context otherwise requires, references to sections or subsections refer to
sections or subsections of this Agreement.

    

    
      	
            	
              3.10

            	
              Entire
      Agreement.

            

    

     

    This
Agreement and the other Transaction Documents are intended by the parties as a
final expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained herein and therein.  There are no
restrictions, promises, representations, warranties or undertakings, other than
those set forth or referred to herein or therein.  This Agreement,
together with the exhibits and schedules hereto, and the other Transaction
Documents, supersede all prior agreements and understandings between the parties
with respect to such subject matter, of which any such agreements are hereby
terminated and shall have no further force or effect.

    

    [Signatures
appear on the following page.]

    
 

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
and delivered by their respective officers hereunto duly authorized on the date
first above written.

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                COMPANY:

                              	
                                TRANSGENOMIC,
      INC.

                              
	 
      	 
      
	 
      	
                                By: 

                              	
                                /s/ Craig J. Tuttle

                              
	 
      	 
      	
                                Craig
      J. Tuttle

                              
	 
      	 
      	
                                Chief
      Executive Officer and President

                              
	 
      	 
      
	
                                INVESTORS:

                              	
                                THIRD
      SECURITY SENIOR STAFF 2008 LLC

                              
	 
      	 
      
	 
      	
                                By: 

                              	
                                /s/ Randal J. Kirk

                              
	 
      	 
      	
                                Randal
      J. Kirk

                              
	 
      	 
      	
                                Manager

                              
	 
      	 
      
	 
      	
                                THIRD
      SECURITY STAFF 2010 LLC

                              
	 
      	 
      
	 
      	
                                By: 

                              	
                                /s/ Randal J. Kirk

                              
	 
      	 
      	
                                Randal
      J. Kirk

                              
	 
      	 
      	
                                Manager

                              
	 
      	 
      
	 
      	
                                THIRD
      SECURITY INCENTIVE 2010 LLC

                              
	 
      	 
      
	 
      	
                                By: 

                              	
                                /s/ Randal J. Kirk

                              
	 
      	 
      	
                                Randal
      J. Kirk

                              
	 
      	 
      	
                                Manager

                              

                      

                    

                  

                

              

            

          

        

      

    

    

    [Signature
Page to Registration Rights Agreement]

    
      
         

      

      
        20Unassociated Document

     

    Exhibit 4.4

     

    THIS
SECURED PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED.  NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN
COMPLIANCE WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT
RELATED THERETO OR AN OPINION OF COUNSEL FOR THE HOLDER SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A
NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION.

     

    SECURED
PROMISSORY NOTE

     

    
      	
              $8,639,650

            	
              December
      29, 2010

            

    

     

    For Value
Received, Transgenomic,
Inc., a Delaware corporation (the “Company”),
hereby unconditionally promises to pay to the order of PGxHealth,
LLC, a Delaware limited liability company (together with its successors
or assigns, the “Lender”),
in lawful money of the United States and in immediately available funds, the
principal amount of $8,639,650 (the “Principal
Amount”), together with accrued and unpaid interest thereon calculated as
set forth in Section 1 (collectively, the “Note
Balance”), which shall be due and payable on the dates and in the manner
set forth in this Secured Promissory Note (this “Note”).

     

    This Note
has been issued to the Lender pursuant to that certain Asset Purchase Agreement,
dated as of November 29, 2010, by and among the Lender, Clinical Data, Inc., a
Delaware corporation, and the Company, as amended by that certain Amendment to
Asset Purchase Agreement, dated December 29, 2010, by and among Lender, Clinical
Data, Inc. and the Company (the “Purchase
Agreement”).  Capitalized terms used and not otherwise defined
herein are intended to have the meanings given to them in the Purchase
Agreement.

     

    1.     
      Installment
Payments.

     

    1.1           Principal.  The
Company shall repay the outstanding Principal Amount in substantially equal
quarterly installments commencing on the date that is eighteen (18) months
following the Closing Date and continuing thereafter until the final payment
date on December 29, 2013 (the “Final Payment
Date”), all as set forth in greater detail on the payment schedule
attached hereto as Exhibit
A.

     

    1.2           Interest.  The
outstanding Principal Amount shall bear interest at the rate of ten percent
(10%) per annum, from the date hereof until paid in full.  The
aggregate amount of interest due under this Note pursuant to this Section 2
shall be calculated with respect to any given period by multiplying the
then-outstanding Principal Amount by the product of: (i) the number of days in
such period; multiplied by (ii) the applicable daily interest rate, calculated
on the basis of a 365-day year.  All interest hereunder shall be due
and payable in arrears on a quarterly basis commencing on the date that is three
(3) months following the Closing Date and continuing until the Final Payment
Date, all as set forth in greater detail on the payment schedule attached hereto
as Exhibit
A

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    1.3           Business Days. Whenever
payment of principal of, or interest on, this Note shall be due on a date that
is not a Business Day, the date for payment thereof shall be the next succeeding
Business Day and interest due on the unpaid principal shall accrue during such
extension and shall be payable on such succeeding Business
Day.  “Business
Day” means any day except a Saturday, Sunday or other days on which
commercial banks in Boston, Massachusetts are required or authorized by law to
close.

     

    2.           Method For
Payments; Optional Prepayments.  All payments under this Note
shall be made in lawful money of the United States by wire transfer or other
form of immediately available funds acceptable to the Lender at the address of
the Lender set forth on the signature page hereof or at such other place as the
Lender shall have designated in writing.  All or any portion of the
Note Balance may be repaid by the Company at any time prior to the Maturity
Date, without penalty; provided, however, that in the event of any such
prepayment in an amount less than the amount of the then-outstanding Note
Balance, the payment schedule attached hereto as Exhibit A shall be
appropriately amended to reflect adjusted quarterly payment amounts totaling the
decreased then-outstanding Principal Amount due under this Note.

     

    3.           Required
Prepayment.

     

    (a)           Notwithstanding
anything to the contrary set forth herein, in the event of a closing of a
Qualified Financing (as defined below) prior to the repayment in full of the
Note Balance, the Company shall, within five (5) business days of such closing,
pay to the Lender in respect of the then-outstanding Note Balance an amount
equal to the lesser of: (a) twenty-five percent (25%) of the gross proceeds
received by the Company pursuant to such Qualifying Financing; and (b) the
then-outstanding Note Balance.  In the event that any such prepayment
is for an amount less than the amount of the then-outstanding Note Balance, the
payment schedule attached hereto as Exhibit A shall be
appropriately amended to reflect adjusted quarterly payment amounts totaling the
decreased then-outstanding Principal Amount due under this Note.  As
used in this Agreement, the term “Qualified
Financing” shall mean any equity-only financing that involves the receipt
by the Company of net proceeds of not less than $6,000,000 (whether in a single
or a series of transactions), excluding any amounts received in connection with
the conversion of any then-outstanding indebtedness or securities of the
Company.  For the avoidance of doubt: (x) if there are multiple
closings in connection with a Qualified Financing, such Qualified Financing
shall not be deemed to have occurred for purposes of this Note until such time
as the aggregate net proceeds received by the Company in connection with the
sale of equity securities pursuant to the Qualified Financing first equal or
exceed $6,000,000; and (y) in no event shall the sale or issuance by the Company
of any debt securities, regardless of the amount of capital raised by the
Company pursuant to any such sale or issuance, be deemed to constitute a
Qualified Financing (or any part thereof).

     

    (b)           Notwithstanding
anything to the contrary set forth herein, in the event of a sale of all or
substantially all of the assets of the Company, whether by merger, stock sale,
asset sale, exclusive license, or otherwise, prior to the repayment in full of
the Note Balance (the “Sale of the
Company”), the Company shall, within five (5) business days of such
closing, pay to the Lender in respect of the then-outstanding Note Balance an
amount equal to the lesser of: (a) one hundred percent (100%) of the
proceeds, net of any financial advisor and legal fees, received by the Company
pursuant to such Sale of the Company; and (b) the then-outstanding Note
Balance.  In the event that any such prepayment is for an amount less
than the amount of the then-outstanding Note Balance, the payment schedule
attached hereto as Exhibit
A shall be appropriately amended to reflect adjusted quarterly payment
amounts totaling the decreased then-outstanding Principal Amount due under this
Note.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    4.           Secured
Note.  The Company's obligations under this Note are secured by
the collateral identified and described as security therefor in the Security
Agreement, as executed and delivered by the Company to the Lender as of the date
hereof (the “Security
Agreement”).  The Company shall not, directly or indirectly,
create, permit or suffer to exist, and shall defend the collateral against and
take such other action as is necessary to remove any lien on the collateral, or
any portion thereof, except as permitted pursuant to the Security
Agreement.

     

    5.           Event of
Default.  Notwithstanding anything to the contrary set forth
herein, the entire unpaid Note Balance due hereunder shall be immediately due
and payable (and collectible by the Lender pursuant to any applicable law)
if:  (a) the Company fails to pay timely any portion of the Note
Balance due under this Note on the date the same becomes due and payable (as set
forth on Exhibit A) or
within three (3) business days thereafter; (b) the Company makes any assignment
for the benefit of its creditors; (c) the Company files (or is the subject of
the filing of) any petition or complaint pursuant to any federal or state
bankruptcy, reorganization, insolvency or moratorium law or any other law
seeking (i) the appointment of a receiver or trustee for any of its assets, (ii)
the adjudication of the Company as bankrupt or insolvent, (iii) an “order for
relief” under any such statute, or (iv) a reorganization of or a plan of
arrangement for the Company, provided in each case where the Company is not the
filing party that such petition or complaint is not dismissed within sixty (60)
days after the filing thereof; or (d) any “Event of Default” as defined in the
Security Agreement occurs (each of the foregoing being referred to herein as an
“Event of
Default”).

     

    6.           Nature of
Obligations.  The indebtedness evidenced by this Note and the
Second Note is hereby agreed by the Company to be senior to any other
indebtedness of the Company, except to the extent expressly consented to in
writing by the Lender, which consent may be given, withheld or conditioned in
its sole discretion.

     

    7.           Waiver.  The
Company waives presentment and demand for payment, notice of dishonor, protest
and notice of protest of this Note, and shall pay all costs of collection when
incurred, including, without limitation, reasonable attorneys’ fees, costs and
other expenses.

     

    8.           Governing
Law.  This Note shall be governed by, and construed and
enforced in accordance with, the laws of the State of Delaware, excluding
conflict of laws principles that would cause the application of laws of any
other jurisdiction.

     

    9.           Lost
Note.  In the event of any loss of this Note by the Lender, the
Company shall execute a replacement promissory note in favor of the Lender on
the same exact terms and conditions of this Note upon the receipt by the Company
of an affidavit of lost note and indemnity, in form and substance reasonably
satisfactory to the Company, duly executed and delivered by the
Lender.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    10.         Assignment.  The
rights and obligations of the Company and the Lender shall inure to the benefit
of and be binding on any successors of the parties and shall extend to any
holder hereof.

     

    11.         Amendments.  None of the terms
or provisions of this Note may be waived, altered, modified or amended except by
an instrument in writing, duly executed by the Company and the
Lender.

     

    12.         Failure to
Exercise Rights.  No failure or
delay on the part of the Lender in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privilege.

     

    13.         Counterparts.  This
Note may be executed in two or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same
instrument.

     

    [Remainder
of Page Intentionally Left Blank]

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    In Witness
Whereof, the Company has caused this Secured
Promissory Note to be issued on the day and year first written
above.

    

    
      
        
          	 
      	
                  COMPANY:

                
	 
      	 
      
	 
      	
                  Transgenomic,
      Inc.

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Craig J. Tuttle

                
	 
      	 
      	
                  Craig
      J. Tuttle

                
	 
      	 
      	
                  President
      and Chief Executive Officer

                
	 
      	 
      	 
      
	 
      	
                  LENDER:

                
	 
      	 
      
	 
      	
                  PGxHealth,
      LLC

                
	 
      	 
      	 
      
	 
      	
                  By:  PGx Health
      Holdings, Inc.

                
	 
      	
                  Its:  Sole
      Member

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Caesar J. Belbel

                
	 
      	 
      	
                  Caesar
      J. Belbel

                
	 
      	 
      	
                  Executive
      Vice President and Chief Legal Officer

                
	 	 	 
	 
      	
                  Address:  
       Five Science Park

                
	 
      	
                  New
      Haven,
CT  06511

                

        

      

    

     

    [Signature
Page to Secured Promissory Note]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    
      
        
          
            	 
      	 	
                    Amount Due

                  	 
	
                    Payment Due Date

                  	 	
                    Principal

                  	 	 	
                    Interest Accrued

                  	 	 	
                    Total

                  	 
	
                    3/29/2011

                  	 	$	0.00	 	 	$	213,032.47	 	 	$	213,032.47	 
	
                    6/29/2011

                  	 	$	0.00	 	 	$	217,766.52	 	 	$	217,766.52	 
	
                    9/29/2011

                  	 	$	0.00	 	 	$	217,766.52	 	 	$	217,766.52	 
	
                    12/29/2011

                  	 	$	0.00	 	 	$	215,399.49	 	 	$	215,399.49	 
	
                    3/29/2012

                  	 	$	0.00	 	 	$	215,399.49	 	 	$	215,399.49	 
	
                    6/29/2012

                  	 	$	1,234,235.71	 	 	$	217,766.52	 	 	$	1,452,002.23	 
	
                    10/1/2012

                  	 	$	1,234,235.71	 	 	$	190,714.78	 	 	$	1,424,950.49	 
	
                    12/31/2012

                  	 	$	1,234,235.71	 	 	$	153,856.78	 	 	$	1,388,092.50	 
	
                    3/29/2013

                  	 	$	1,234,235.71	 	 	$	119,027.66	 	 	$	1,353,263.38	 
	
                    7/1/2013

                  	 	$	1,234,235.71	 	 	$	95,357.39	 	 	$	1,329,593.10	 
	
                    9/30/2013

                  	 	$	1,234,235.71	 	 	$	61,542.71	 	 	$	1,295,778.43	 
	
                    12/30/2013

                  	 	$	1,234,235.71	 	 	$	30,771.36	 	 	$	1,265,007.07	 
	
                    Total

                  	 	$	8,639,650.00	 	 	$	1,948,401.69	 	 	$	10,588,051.69

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