Document:

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                                                                   EXHIBIT 10.11

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT is made as of November 16, 1998 by and between
Transgenomic, Inc., a Delaware corporation (the "Company"), and William B.
Walker ("Employee").

         The Company and Employee desire to enter into an Employment Agreement
(this "Agreement"). Accordingly, the Company and Employee agree as follows:

         Section 1. EFFECTIVE DATE; POSITION; TERM. This Agreement shall become
effective on the date first set forth above (the "Effective Date"). The Company
shall employ Employee as Vice President--Intellectual Property and Assistant
General Counsel of the Company for a term (the "Employment Period") commencing
on November 16, 1998 and continuing until November 16, 2000, unless sooner
terminated pursuant to Section 9 hereof, provided that the Employment Period
shall by mutual agreement be extended on the first anniversary date (November
16, 1999) and on each anniversary date thereafter for the two-year period
following such renewal unless either the Company or Employee delivers to the
other a notice of nonextension.

         Section 2.  POSITION AND DUTIES.  During the Employment Period:

                  (a) Employee shall have the normal responsibilities, duties
         and authorities of Vice President--Intellectual Property and Assistant
         General Counsel.

                  (b) Employee shall report to the General Counsel of the
         Company and Employee shall perform faithfully the executive duties
         assigned to him to the best of his ability in a diligent, trustworthy,
         businesslike and efficient manner and will devote his full business
         time and attention to the business and affairs of the Company and its
         Subsidiaries and Affiliates; provided, however, that Employee may serve
         as a director of or a consultant to other corporations which do not
         compete with the Company, nonprofit corporations, civic organizations,
         professional groups and similar entities.

                  (c) For purposes of this Agreement, "Subsidiary" shall mean
         any corporation or other entity of which securities having a majority
         of the voting power in electing directors or comparable management are,
         at the time of determination, owned by the Company, directly or through
         one or more Subsidiaries.

                  (d) For purposes of this Agreement, "Affiliate" of any
         particular person means any other person controlling, controlled by or
         under common control with such particular person.

         Section 3.  BASIC COMPENSATION.

                  (a) BASE SALARY. As compensation for his services hereunder,
         the Company shall pay to Employee during the Employment Period a base
         salary (the "Base Salary") at the following rates per calendar year:

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<TABLE>
<CAPTION>
                       CALENDAR YEAR                                            ANNUAL BASE SALARY
                       -------------                                            ------------------
           <S>                                                                <C>
            November 16, 1998--December 31, 1998                               $
                                                                               --------------
                            1999                                                     $200,000
</TABLE>

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

         Section 4. BONUS. In addition to the Base Salary, Employee shall be
eligible to receive an annual bonus based on Employee's performance and the
Company's operating results during such calendar year payable at such time or
times during or following each calendar year as shall be determined by the Board
of Directors (the "Board") or a committee thereof in its sole discretion and
based on formulas to be determined each year by the Board or such committee in
its sole discretion for the Company's management bonus plan.

         Section 5. PARTICIPATION IN EMPLOYEE BENEFIT PLANS. Employee will be
entitled to participate in all Company salaried employee benefit plans and
programs, subject to the terms and conditions of each such employee benefit plan
or program and to the extent commensurate with his position as Vice
President--Intellectual Property and Assistant General Counsel of the Company.

         Section 6.  OTHER BENEFITS.

                  (a) VACATION. Employee shall be entitled to a maximum of four
         weeks' paid vacation each year.

                  (b) INSURANCE. The Company shall provide Employee with health,
                  hospitalization, dental and major medical insurance (including
                  dependent coverage) and other similar benefits.

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

         Section 8. STOCK OPTIONS AND OPTION SHARES. Employee shall be eligible
to participate in the Company's 1997 Stock Option Plan, as amended.

         Section 9.  TERMINATION OF EMPLOYMENT.

                  (a) EVENTS OF TERMINATION AND SEVERANCE PAYMENTS. In the event
         that during the Employment Period Employee should become Totally and
         Permanently Disabled, the Company (acting by resolution of the Board)
         may elect to terminate the Employment Period by written notice to
         Employee and Employee shall be entitled to receive full compensation
         pursuant to subsection 3(a) at his then Base Salary rate for a period
         of six months following

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         the date of such notice. In the event of Employee's death during the
         Employment Period, his personal representative shall be entitled to
         receive any compensation pursuant to Sections 3 and 4 which is accrued
         and unpaid as of the date of his death plus six months of salary. In
         the event that during the Employment Period Employee should commit
         Serious Misconduct (as defined in subsection 9(b)(ii) below), the
         Company (acting by resolution of the Board) may elect to terminate the
         Employment Period by written notice to Employee. In the event that
         Employee is discharged for any reason other than for Serious
         Misconduct, Employee shall be entitled to receive certain payments (the
         "Severance Payments") following termination of employment in an
         aggregate amount equal to the Severance Amount listed below:

                                SEVERANCE AMOUNT

                           Since this Employment Agreement is subject to renewal
                  on each anniversary date (November 16, 1999 and each November
                  16 thereafter) on a rolling two-year period following such
                  renewal the Severance Amount shall be equal to such amount
                  remaining to be paid on the balance of this Employment
                  Agreement based on his current base salary so long as the
                  total amount payable does not exceed 299% of the then current
                  base salary. Such amounts to be paid in equal semi-monthly
                  payments in the amounts and on the Company's regularly
                  scheduled employee pay periods.

                  (b) DEFINITION OF CERTAIN TERMS. (i) "Totally and Permanently
         Disabled" means such physical or mental condition of Employee as is
         determined by the Board in its sole discretion to be expected to
         continue indefinitely and which renders him incapable of performing any
         substantial portion of the services contemplated hereby (as confirmed
         by competent medical evidence).

                  (ii) "Serious Misconduct" means embezzlement or
         misappropriation of corporate funds, other acts of dishonesty,
         significant activities materially harmful to the reputation of the
         Company, commission of a felony, willful refusal to perform or
         substantial disregard of the duties properly assigned by the Board,
         significant violation of any statutory or common law duty of loyalty to
         the Company or a material violation of Section 11 or 12 below.

                  (iii) "Termination Date" means the date on which Employee's
         employment with the Company and its Subsidiaries is terminated, whether
         on account of death, disability, resignation or discharge.

                  (c) EFFECT OF BREACH OF NONCOMPETITION PROVISIONS. In the
         event Employee breaches or otherwise fails to comply with the
         provisions of Section 11 or 12 below, then, in addition to any other
         remedies provided herein or at law or in equity, the Company shall not
         have any further obligation to make any additional Severance Payments.
         Termination of such Severance Payments pursuant to the preceding
         sentence shall not relieve Employee's obligations pursuant to Section
         11 or 12 below.

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         Section 10. ASSIGNMENT AND SUCCESSION. (a) The rights and obligations
of the Company under this Agreement shall inure to the benefit of and be binding
upon its respective successors and assigns, and Employee's rights and
obligations hereunder shall inure to the benefit of and be binding upon his
successors and permitted assigns, whether so expressed or not.

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

         (c) The Company may not assign its interest in or obligations under
this Agreement without the prior written consent of Employee.

         Section 11. CONFIDENTIAL INFORMATION. (a) Employee acknowledges that
the information, observations and data obtained by him during the course of his
performance under this Agreement concerning the business or affairs of the
Company and its Subsidiaries is the property of the Company or such Subsidiary,
as the case may be. Therefore, during the Employment Period and at all times
thereafter, Employee will not directly or indirectly use, divulge, furnish or
make accessible to any unauthorized person or use for his own account any
confidential or proprietary information or trade secrets of the Company or any
of its Subsidiaries without the Board's prior written consent except and to the
extent required by law (and upon prompt written notice of such requirement to
the Company and such Subsidiary) any of such information, observations or data
without the Board's prior written consent unless and to the extent that the
aforementioned matters become generally known to and available for use by the
public other than as a result of Employee's acts or omissions to act. In the
event Employee shall be required by law to make any disclosure as set forth
above, Employee shall promptly notify the Company and such Subsidiary in writing
of the basis for and the extent of the required disclosure and shall cooperate
with the Company and such Subsidiary to preserve in full the confidentiality of
all intellectual property, trade secrets, confidential information and other
proprietary rights of the Company and such Subsidiary. For purposes hereof,
confidential information does not include any information that has become
publicly known and made generally available through no wrongful act of Employee
or of any other person who is subject to a confidentiality agreement with the
Company.

         (b) Employee agrees to deliver to the Company at the termination of his
employment, or at any other time upon written request by the Company, all
memoranda, notes, plans, records, reports and other documents relating to the
business of the Company and its Subsidiaries which he may then possess or have
under his control.

         Section 12. COVENANT NOT TO COMPETE. (a) Employee agrees that during
the Employment Period, and for one year after the Termination Date (the
"Noncompete Period"), he will neither directly nor indirectly engage in, have
any interest in, own, manage, operate, control, be connected with as a
stockholder, joint venturer, officer, employee, partner or consultant or invest
or participate in a business competing with any of the businesses then conducted
(or, to the knowledge of Employee, planned to be conducted within one year) by
the Company or any of its successors or then Subsidiaries, within any
geographical area in which the Company or its Subsidiaries engage or plan within
one year to engage in any such businesses. During the

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Noncompete Period, Employee shall not directly or indirectly through another
entity (i) induce or attempt to induce any employee of the Company or any
Subsidiary to leave the employ of the Company or such Subsidiary, or in any way
interfere with the relationship between the Company or any Subsidiary and any
employee thereof, (ii) hire any person who was an employee of the Company or any
Subsidiary at any time during the Employment Period or (iii) induce or attempt
to induce any customer, supplier, licensee or other business relation of the
Company or any Subsidiary to cease doing business with the Company or such
Subsidiary, or in any way interfere with the relationship between any such
customer, supplier, licensee or business relation and the Company or any
Subsidiary.

         (b) Nothing contained in this Section 12 shall prevent Employee from
owning up to a 5% interest in any corporation or entity having one or more
classes of its securities listed on a national securities exchange or publicly
traded in the over-the-counter market, provided Employee is not actively
involved in the operation or management of such corporation or entity. Nothing
contained herein shall prevent Employee from serving as a paid consultant to
other companies or serving as a member of the Board of Directors of other
corporations.

         (c) If, under the circumstances existing at the time of enforcement of
this Section 12, the period, scope or geographic area described in this Section
12 shall be found or held to be unreasonable, the parties hereto agree that the
maximum period, scope or geographic area reasonable under the circumstances
shall be substituted for the stated period, scope or geographic area.

         Section 13. CONFLICTS OF INTEREST POLICIES. Employee shall diligently
adhere to the Company's Conflict of Interest Policy as adopted by the Board and
in effect from time to time.

         Section 14. ARBITRATION AND EQUITABLE REMEDIES. (a) Except as provided
in Section 14(b) hereof, the parties agree that any dispute or controversy
arising out of, relating to, or concerning the interpretation, construction,
performance or breach of this Agreement, shall be settled by arbitration to be
held in Nebraska, in accordance with the Employment Dispute Resolution rules of
the American Arbitration Association then in effect. The arbitrator may grant
injunctions or other relief in such dispute or controversy and the decision of
the arbitrator shall be final, conclusive and binding on the parties to the
arbitration. Judgment may be entered on the arbitrator's decision in any court
having jurisdiction. The Company and Employee shall each pay one-half of the
costs and expenses of such arbitration, and each shall separately pay the fees
and expenses of their respective legal counsel.

         THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EMPLOYEE'S RIGHT TO A
JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS
OF THE EMPLOYER/EMPLOYEE RELATIONSHIP.

         (b) Notwithstanding paragraph (a) of this Section 14, the parties agree
that, in the event of the breach or threatened breach of Sections 11, 12 or 13
of this Agreement by Employee, monetary damages alone would not be an adequate
remedy to the Company and its Subsidiaries for the injury that would result from
such breach, and that the Company and its Subsidiaries shall be entitled to
apply to any court of competent jurisdiction for specific performance and/or
injunctive relief (without posting bond or other security) in order to enforce

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or prevent any violation of such provisions of this Agreement. Employee further
agrees that any such injunctive relief obtained by the Company or any of its
Subsidiaries shall be in addition to monetary damages.

         Section 15. ENTIRE AGREEMENT. This Agreement represents the entire
agreement between the parties relating to the subject matters covered hereby and
shall supersede any prior understandings, agreements or representations by or
between the parties, written or oral, which may have related to the subject
matter hereof in any way and shall not be amended or waived except in a writing
signed by the parties hereto.

         Section 16. NOTICES. Any notice or request required or permitted to be
given hereunder shall be in writing and will be deemed to have been given (i)
when delivered personally, sent by telecopy (with hard copy to follow) or
overnight express courier or (ii) five days following mailing by certified or
registered mail, postage prepaid and return receipt requested, to the addresses
below unless another address is specified by such party in writing:

                  To the Company:           Transgenomic, Inc.
                                            5600 South 42nd Street
                                            Omaha, NE  68107
                                            Attention:  Chief Executive Officer
                                            Telephone:  (402) 738-5408
                                            Telecopy:   (402) 733-1264

         Section 17. HEADINGS. The article and section headings herein are for
convenience of reference only and shall not define or limit the provisions
hereof.

         Section 18. APPLICABLE LAW. The corporate law of the State of Delaware
will govern all questions concerning the relative rights of the Company and its
stockholders. All other questions concerning the construction, validity and
interpretation of this Agreement shall be governed by the internal laws of the
State of Nebraska.

         Section 19. SEVERABILITY. Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held prohibited by,
invalid or unenforceable in any respect under applicable law, such provision
will be ineffective only to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions
of this Agreement.

         Section 20. AMENDMENTS AND WAIVERS. Any provision of this Agreement may
be amended or waived only with the prior written consent of the Company and
Employee.

         Section 21. NO STRICT CONSTRUCTION. The language used in this Agreement
will be deemed to be the language chosen by the parties hereto to express their
mutual intent, and no rule of strict construction will be applied against any
party hereto.

         Section 22. COUNTERPARTS. This Agreement may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

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         Section 23. EMPLOYEE REPRESENTATIONS. Employee hereby represents and
warrants to the Company that (i) the execution, delivery and performance of this
Agreement by Employee does not and will not conflict with, breach, violate or
cause a default under any contract, agreement, instrument, order, judgment or
decree to which Employee is a party or by which he is bound, (ii) Employee is
not a party to or bound by any employment agreement, noncompete agreement or
confidentiality agreement with any other person or entity and (iii) upon the
execution and delivery of this Agreement by the Company, this Agreement shall be
the valid and binding obligation of Employee, enforceable in accordance with its
terms.

         Section 24. SURVIVAL. Sections 8, 11 and 12 shall survive and continue
in full force in accordance with their terms notwithstanding any termination of
the Employment Period.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be signed
by its duly authorized officer and Employee has signed this Agreement as of the
date first written above.

                                        TRANSGENOMIC, INC.

                                        By /s/ Collin D'Silva
                                           -------------------------------------
                                           Name    Collin D'Silva
                                                --------------------------------
                                           Title      Chief Executive Officer
                                                 -------------------------------

                                        EMPLOYEE

                                        /s/ William B. Walker
                                        ----------------------------------------
                                        Name:  William B. Walker

                                       7<PAGE>

                                                                   EXHIBIT 10.12

                            [TRANSGENOMIC LETTERHEAD]

                                            February 18, 2000

Mr. Gregory J. Duman
17540 Bay Wood Circle
Omaha, NE  68130

Dear Greg:

                  From time to time we have discussed with our officers and
directors the substantial increase in corporate litigation which can subject
officers and directors to expensive litigation risks and large claims for
damages. We have also discussed the uncertainties involved in obtaining and
maintaining directors' and officers' liability insurance on a reasonable basis
and the limited scope of the coverage of such insurance as can be obtained.

                  You have informed us that you are concerned about the level of
protection available to you as an officer or director of Transgenomic, Inc., a
Delaware corporation ("Transgenomic") in the present legal climate, and we
understand that your willingness to continue to serve as an officer or director
of Transgenomic depends upon, among other things, assurance of adequate
protection on a long-term basis. You have also informed us that you know of no
pending or threatened claim against you relating to Transgenomic.

                  In order to attract and retain your services as an officer or
Director of Transgenomic, Transgenomic has agreed to indemnify you to the
fullest extent of its authority to do so, subject to the limitations set forth
herein. This letter agreement ("Agreement") is intended to set forth our
agreement with respect to your right to indemnification by Transgenomic.

                  Transgenomic and you (the "Indemnitee") hereby agree as
follows:

                  1. INDEMNIFICATION. Transgenomic shall indemnify Indemnitee if
Indemnitee is or was a party or is threatened to be made a party to or is
otherwise involved with any threatened, pending or completed action or
proceeding, whether civil, criminal, administrative or investigative, for
actions performed by or inaction on the part of Indemnitee with respect to
occurrences taking place when or by reason of the fact that (i) Indemnitee is or
was a director, officer, employee or agent of Transgenomic, or any subsidiary of
Transgenomic, (ii) Indemnitee is or was serving at the request of Transgenomic
as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, or (iii) Indemnitee is or was serving
at the request of Transgenomic in any capacity with respect to any employee
benefit plan, against any "Loss or Expense" (as hereinafter defined). As used in
this

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Agreement Loss and Expense shall mean all (x) expenses (including attorney's
fees), (y) judgments, fines, penalties, and (z) losses, claims, damages or
liabilities, including without limitation amounts paid in settlement (but only
if such settlement is approved in advance in writing by Transgenomic, which
approval shall not be unreasonably withheld) actually and reasonably incurred by
Indemnitee in connection with such action or proceeding. Notwithstanding the
foregoing, no indemnification shall be paid under this Agreement with respect to
claims involving acts or omissions as to which Indemnitee is finally adjudicated
(by court order or judgment from which no right of appeal exists) not to have
acted in good faith in the reasonable belief that Indemnitee's action was in (or
not opposed to) the best interests of Transgenomic or, to the extent that such
matter relates to service with respect to an employee benefit plan, in the best
interests of the participants or beneficiaries of such employee benefit plan.

                  2. NO EMPLOYMENT AGREEMENT. In consideration of the protection
afforded by this Agreement, Indemnitee agrees not to resign voluntarily from the
position now held by him with Transgenomic without first giving to Transgenomic
not less than three weeks' written notice of his intention to resign. Nothing
contained in this Agreement is intended to create or shall create in Indemnitee
any right to employment (in the case of a director) or continued employment (in
the case of an employee).

                  3. EXPENSES; INDEMNIFICATION PROCEDURE.

                     (a) ADVANCEMENT OF EXPENSES. Transgenomic shall advance all
expenses reasonably incurred by Indemnitee in connection with the defense of any
threatened or actual civil or criminal action or proceeding described in Section
1 hereof. If Indemnitee shall be adjudicated by a court order or judgment from
which no right of appeal exists to be not entitled to indemnification by
Transgenomic as authorized hereby, Indemnitee hereby undertakes to promptly
repay all such amounts advanced by Transgenomic. The advances to be made
hereunder shall be paid by Transgenomic to Indemnitee within twenty (20) days
following delivery of a written request therefor by Indemnitee to Transgenomic.
If for any reason the Indemnitee is not an employee of Transgenomic at the time
of any activities performed by the Indemnitee in connection with the defense of
any civil or criminal action or proceeding described in Section 1 hereof,
Transgenomic shall compensate the Indemnitee on the basis of $500 per day (or
portion thereof) spent by the Indemnitee on behalf of such activities at the
request of Transgenomic, and reimburse the Indemnitee for all related and
reasonable out-of-pocket expenses, such compensation and expense reimbursement
to be advanced in the manner set forth in Section 3(c) .

                     (b) NOTICE;  COOPERATION BY INDEMNITEE.  Indemnitee shall
give Transgenomic prompt notice of the commencement of any action or proceeding,
or the threat thereof against Indemnitee, for which indemnification will or
could be sought under this Agreement. In addition, Indemnitee shall give
Transgenomic such information and cooperation as it may reasonably require and
as shall be within Indemnitee's power. Transgenomic shall not be liable to
indemnify Indemnitee under this Agreement for any amounts paid in settlement of
any action or claim effected without its written consent, which consent shall
not be unreasonably withheld or delayed.

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                     (c) PROCEDURE.

                         (1) Any amounts  payable by  Transgenomic  pursuant to
the indemnification provided for in Section 1 shall be paid no later than twenty
(20) days after receipt of the written request of Indemnitee. If a claim is
brought by Indemnitee under this Agreement, under any statute, or under any
provision of Transgenomic's Charter or By-laws, as amended or restated from time
to time (the "By-laws"), which provision provides for indemnification, and if
such claim is not paid in full by Transgenomic within twenty (20) days after a
written request by Indemnitee for payment thereof was first received by
Transgenomic, Indemnitee may, but need not, at any time thereafter bring an
action against Transgenomic to recover the unpaid amount of the claim and,
subject to Section 18 of this Agreement, Indemnitee shall also be entitled to be
reimbursed for the expense (including reasonable attorneys' fees) of bringing
such action. It shall be a defense to any such action (other than an action
brought to enforce a claim for expenses incurred in connection with any action
or proceeding in advance of its final disposition) that Indemnitee has not met
the standards of conduct which make it permissible under applicable law for
Transgenomic to indemnify Indemnitee for the amount claimed, but the burden of
proving such defense shall be on Transgenomic, and Indemnitee shall be entitled
to receive interim payments of expenses pursuant to Section 3(a) unless and
until such defense shall be finally adjudicated by court order or judgment from
which no further right of appeal exists.

                         (2) If Transgenomic refuses or rejects Indemnitee's
claim for indemnification hereunder, and in the event the Indemnitee shall
thereafter seek judicial enforcement of this Agreement, neither the failure of
Transgenomic (including its Board of Directors, any committee or subgroup of the
Board of Directors, or independent legal counsel) to have made a determination
that indemnification of Indemnitee is proper in the circumstances because
Indemnitee has met the applicable standard of conduct required by applicable
law, nor an actual determination by Transgenomic (including its Board of
Directors, any committee or subgroup of the Board of Directors, or independent
legal counsel) that Indemnitee has not met such applicable standard of conduct,
shall create a presumption that Indemnitee has or has not met the applicable
standard of conduct.

                  4. NOTICE TO INSURERS. If, at the time of the receipt of a
notice of a prospective claim pursuant to Section 3(b) hereof, Transgenomic has
in effect any insurance, including, without limitation, director and officer
liability insurance, which may provide for payment of or reimbursement for such
claim, Transgenomic shall give prompt notice of the assertion of such claim to
each issuer of such insurance in accordance with the procedures set forth in the
respective policies. Transgenomic shall thereafter (if it is appropriate to do
so pursuant to the terms of the applicable insurance policy) take all necessary
or desirable action to cause such insurers to pay, on behalf of the Indemnitee,
all amounts payable as a result of such proceeding in accordance with the terms
of such policies.

                  5. PRIMARY INDEMNITY. Transgenomic's obligation to provide
indemnification to the Indemnitee under this Agreement is intended to be the
Indemnitee's primary source of indemnification for the expenses and other
liabilities payable to Indemnitee hereunder, notwithstanding the fact that
Indemnitee may provide services to Transgenomic at the request or direction of
any other person or entity and may be entitled to indemnification from, or to
the proceeds of insurance purchased and maintained for Indemnitee's benefit by,
such other person or entity; it being understood, however, that nothing
contained in this subsection shall be

<PAGE>

deemed to enlarge the scope of Transgenomic's obligation to provide
indemnification as provided elsewhere herein.

                  6. SELECTION OF COUNSEL. In the event Transgenomic shall be
obligated under Section 3(a) hereof to pay the expenses of any proceeding or
threatened proceeding against Indemnitee, Transgenomic shall be entitled to
participate in such proceeding and, to the extent it shall wish, to assume the
defense of such proceeding, with counsel chosen by Transgenomic and approved by
Indemnitee, which approval shall not be unreasonably withheld. Upon the delivery
to Indemnitee of written notice of its election to assume such defense, approval
of such counsel by Indemnitee and retention of such counsel by Transgenomic,
Transgenomic will not be liable to Indemnitee under this Agreement for any fees
of counsel or other expenses subsequently incurred by Indemnitee in connection
with the defense of the same proceeding, except for fees and expenses incurred
by Indemnitee as a consequence of Indemnitee's obligation to cooperate with
Transgenomic in the defense of such matters (as set forth in Section 3 hereof).
Notwithstanding the foregoing, the reasonable fees and expenses of Indemnitee's
counsel shall be paid by Transgenomic if (i) the employment of counsel by
Indemnitee has been previously authorized by Transgenomic, (ii) Indemnitee shall
have reasonably concluded that there may be a conflict of interest between
Transgenomic and Indemnitee in the conduct of such defense or that such counsel
and Indemnitee have fundamental and material disagreements as to the proper
method of managing the litigation, or (iii) Transgenomic shall not, in fact,
have employed counsel to assume the defense of such proceeding. Indemnitee shall
have the right to employ his own counsel in any such proceeding at Indemnitee's
expense.

                  7. ADDITIONAL INDEMNIFICATION RIGHTS; NONEXCLUSIVITY.

                     (a) SCOPE.  Notwithstanding  any other provision of this
Agreement, Transgenomic hereby agrees to indemnify the Indemnitee to the fullest
extent permitted by law with respect to any claim, action or proceeding
described in Section 1 hereof, whether or not such indemnification is
specifically authorized by the other provisions of this Agreement,
Transgenomic's Charter or By-laws, or by other statutes. In the event of any
change, after the date of this Agreement, in any applicable law, statute or rule
which expands the right of a Delaware corporation such as Transgenomic to
indemnify a member of its board of directors or an officer, such changes shall,
without any further action by Transgenomic, be included within the scope of the
indemnification provided to Indemnitee by, and Transgenomic's obligations under,
this Agreement. In the event of any change in any applicable law, statute or
rule that limits or restricts the right of Transgenomic to indemnify a member of
its Board of Directors or an officer, such changes shall have no effect on this
Agreement or the parties' rights and obligations hereunder, except to the extent
specifically required by such law, statute or rule to be applied to this
Agreement.

                     (b) NONEXCLUSIVITY. The indemnification provided by this
Agreement shall not be deemed exclusive of any rights to which Indemnitee may be
entitled under Transgenomic's Charter or By-laws, any agreement, any vote of
disinterested directors, applicable law, or otherwise. The indemnification
provided under this Agreement shall continue as to Indemnitee for any action
taken or not taken while serving in an indemnified capacity even though the
Indemnitee may have ceased to serve in such capacity at the time of commencement
of any claim or action for which indemnification is requested.

                  8. PARTIAL INDEMNIFICATION. If Indemnitee is entitled under
any provision of this Agreement to indemnification by Transgenomic for some or a
portion of the expenses,

<PAGE>

judgments, fines or penalties actually or reasonably incurred by him in the
investigation, defense, appeal or settlement of any civil or criminal action or
proceeding, but not, however, for the total amount thereof, Transgenomic shall
nevertheless indemnify Indemnitee for the portion of such expenses, judgments,
fines or penalties to which Indemnitee is entitled.

                  9. MUTUAL ACKNOWLEDGMENT. Both Transgenomic and Indemnitee
acknowledge that in certain instances, applicable law or applicable public
policy could be construed to prohibit Transgenomic from indemnifying its
directors and officers under this Agreement or otherwise. Nothing in this
Agreement is intended to require or shall be construed as requiring Transgenomic
to do or fail to do any act in violation of any applicable law. Transgenomic's
inability, as a result of a binding order of any court of competent
jurisdiction, to perform its obligations under this Agreement shall not
constitute a breach of this Agreement and Transgenomic's compliance with any
such order shall constitute compliance with this Agreement.

                  10. DIRECTORS' AND OFFICERS' LIABILITY INSURANCE. Transgenomic
shall, from time to time, make the good faith determination whether or not it is
practicable for Transgenomic to obtain and maintain a policy or policies of
insurance with reputable insurance companies providing the officers and
directors of Transgenomic with coverage for losses from wrongful acts, or to
ensure Transgenomic's performance of its indemnification obligations under this
Agreement. Among other matters, Transgenomic may consider the costs of obtaining
such insurance coverage, the protection afforded by such coverage and the
restrictions or other terms required by such insurance. In all policies of
directors' and officers' liability insurance, Indemnitee shall be named as an
insured in such a manner as to provide Indemnitee the same rights and benefits
as are accorded to the most favorably insured of Transgenomic's directors, if
Indemnitee is a director, or of Transgenomic's officers, if Indemnitee is not a
director of Transgenomic but is an officer, or of Transgenomic's key employees,
if Indemnitee is not an officer or director but is a key employee.
Notwithstanding the foregoing, Transgenomic shall have no obligation to obtain
or maintain such insurance if Transgenomic determines in good faith that such
insurance is not reasonably available, if the premium costs for such insurance
are disproportionate to the amount of coverage provided, if the coverage
provided by such insurance is limited by exclusions so as to provide an
insufficient benefit, or if Indemnitee is covered by similar insurance
maintained by a subsidiary or parent of Transgenomic.

                  11. SEVERABILITY. The provisions of this Agreement shall be
severable as provided in this Section 11. If this Agreement or any portion
hereof shall be invalidated on any ground by any court of competent
jurisdiction, then Transgenomic shall nevertheless indemnify Indemnitee to the
greatest extent permitted by any applicable law or any applicable portion of
this Agreement that shall not have been invalidated, and the balance of this
Agreement not so invalidated shall be enforceable in accordance with its terms.

                  12. EXCEPTIONS. Any other provision herein to the contrary
notwithstanding, Transgenomic shall not be obligated pursuant to the terms of
this Agreement:

                      (a) EXCLUDED ACTS. To indemnify Indemnitee for any acts or
omissions or transactions from which a director or officer may not be relieved
of liability under applicable Delaware law; or

                      (b) CLAIMS INITIATED BY INDEMNITEE. To indemnify or
advance expenses to Indemnitee with respect to proceedings or claims initiated
or brought voluntarily by

<PAGE>

Indemnitee and not by way of defense, except (i) with respect to proceedings
brought to establish or enforce a right to indemnification under this Agreement
or any other statute or law and (ii) declaratory judgment or similar proceedings
brought to obtain a judicial interpretation of an applicable statute or
regulation, provided that such indemnification or advancement of expenses may be
provided by Transgenomic in specific cases if the Board of Directors has
approved the initiation or bringing of such suit; or

                      (c) LACK OF GOOD FAITH. To indemnify Indemnitee for any
expenses incurred by the Indemnitee with respect to any proceeding instituted by
Indemnitee to enforce or interpret this Agreement, if a court of competent
jurisdiction determines that each of the material assertions made by the
Indemnitee in such proceeding was not made in good faith or was frivolous; or

                      (d) INSURED CLAIMS. To indemnify Indemnitee for expenses
or liabilities of any type whatsoever (including, but not limited to, judgments,
fines, ERISA excise taxes or penalties, and amounts paid in settlement) which
have been reimbursed directly to Indemnitee by an insurance carrier under a
policy of directors' and officers' liability insurance maintained by
Transgenomic.

                  13. SALE OF ASSETS. If Transgenomic is merged into or
consolidated with another corporation and Transgenomic is not the surviving
corporation, or if substantially all of the assets of Transgenomic are acquired
by any other corporation, or in the event of any other similar reorganization
involving Transgenomic, Transgenomic shall to the extent possible cause the
acquiring corporation to assume the obligations of Transgenomic under this
Agreement with respect to Indemnitee.

                  14. EFFECTIVENESS OF AGREEMENT. This Agreement shall be
effective as of the date set forth on the first page hereof and shall continue
in effect from through the time period described in Section 15 hereof. In
addition this Agreement shall also apply to acts or omissions of Indemnitee
which occurred prior to such date if Indemnitee was a director, officer,
employee or other agent of Transgenomic, or was serving at the request of
Transgenomic as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, or in any other capacity
set forth in Section 1 above, at the time such act or omission occurred.

                  15. DURATION OF AGREEMENT. This Agreement shall continue until
and terminate upon the later of: (a) ten years after Indemnitee has ceased to
serve in any of the capacities set forth in Section 1 above; and (b) the final
termination of all pending or threatened actions, suits, proceedings or
investigations to which Indemnitee may be subject by reason of his service in
any such capacity. The indemnification provided under this Agreement shall
continue as to Indemnitee even though he may have ceased to be a director,
officer, employee or agent of Transgenomic.

                  16. COUNTERPARTS. This Agreement may be executed in one or
more counterparts, each of which shall constitute an original.

                  17. SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon Transgenomic and its successors and assigns, and shall inure to the benefit
of Indemnitee and Indemnitee's spouse, estate, heirs and legal representatives.

<PAGE>

                  18. ATTORNEYS' FEES. In the event that any action is
instituted by Indemnitee under this Agreement to enforce or interpret any of the
terms hereof, Indemnitee shall be entitled to be paid all court costs and
expenses, including reasonable attorneys' fees, incurred by Indemnitee with
respect to such action, unless as a part of such action, a court of competent
jurisdiction determines that each of the material assertions made by Indemnitee
as a basis for such action was not made in good faith or was frivolous. In the
event of an action instituted by or in the name of Transgenomic under this
Agreement or to enforce or interpret any of the terms of this Agreement,
Indemnitee shall be entitled to be paid all court costs and expenses, including
attorneys' fees incurred by Indemnitee in defense of such action (including with
respect to Indemnitee's counterclaims and cross-claims made in such action),
unless as a part of such action the court determines that each of Indemnitee's
material defenses to such was made in bad faith or was frivolous.

                  19. NOTICES. All notices, requests, demands and other
communications under this Agreement shall be in writing and shall be deemed duly
given (i) if delivered by hand and receipted for by the party addressee, on the
date of such receipt, or (ii) if mailed by domestic certified or registered mail
with postage prepaid, on the third business day after the date postmarked.
Addresses for notice to either party are as shown on the first page of this
Agreement, or as subsequently modified by written notice. Notice to Transgenomic
shall be directed to the Company at its main office in Omaha or such other
address as Transgenomic shall designate in writing to Indemnitee. Notice to the
Indemnitee shall be directed to the Indemnitee at the address shown on the first
page of this Agreement (or such other address as the Indemnitee shall designate
in writing to Transgenomic).

                  20. CHOICE OF LAW. This Agreement shall be governed by and its
provisions construed in accordance with the laws of Delaware as applied to
contracts between Delaware residents entered into and to be performed entirely
within Delaware.

                  If the foregoing correctly sets forth our understanding, I
would appreciate your executing the enclosed counterpart of this agreement and
returning it to me. Upon your signature this letter agreement shall constitute a
binding agreement, executed under seal.

                                          Very truly yours,

                                          TRANSGENOMIC, INC.

                                          By: /s/ Collin J. D'Silva
                                              ----------------------------------
                                              Collin J. D'Silva

AGREED TO AND ACCEPTED:
INDEMNITEE:

/s/ Gregory J. Duman
---------------------------------
Gregory J. Duman

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