Document:

Settlement Agreement

 Exhibit 10.1 
 SETTLEMENT AGREEMENT 
 This Settlement Agreement (the “Agreement”) is made as
of this 11th day of August 2006, by and between Jodek Charitable Trust, R.A. (“Jodek”), an Israeli charitable trust, and Verticalnet, Inc. (“Verticalnet”), a Pennsylvania corporation. 
 WHEREAS, on or about March 8, 2000, a subsidiary of Verticalnet and Tradeum, Inc. (“Tradeum”) entered into an Agreement and Plan of
Merger (as amended, the “Merger Agreement”), pursuant to which Tradeum would merge with and into Verticalnet’s subsidiary; 
 WHEREAS, pursuant to the Merger Agreement, the merger closed on March 23, 2000, and Tradeum became a subsidiary of Verticalnet; 
 WHEREAS, pursuant to the Merger Agreement, the shareholders of Tradeum exchanged their shares of Tradeum stock for shares of Verticalnet stock (the “Merger Shares”); 
 WHEREAS, Zvi Schreiber LLC (“Schreiber LLC”) and Wyoma Investments, Ltd. (“Wyoma”) were shareholders of Tradeum and,
following the merger, became shareholders of Verticalnet; 
 WHEREAS, in connection with the Merger Agreement, Verticalnet entered into a
Registration Rights Agreement with a representative of the Tradeum shareholders that, upon the shareholders’ joinder to the Registration Rights Agreement, provided the shareholders with limited rights to registration of the Merger Shares for
resale in public markets; 
 WHEREAS, in connection with the Merger Agreement, Verticalnet and Zvi Schreiber entered into a Lock-Up Agreement
pursuant to which certain Merger Shares received by Schreiber LLC and Wyoma in the merger were locked up pending the occurrence of certain time or business milestones; 
 WHEREAS, Verticalnet and a representative of Tradeum’s shareholders entered into an Indemnity Escrow Agreement and a Tax Indemnity Escrow Agreement (collectively, the “Escrow Agreements”) with
American Stock Transfer & Trust Company (“ASTT”), as escrow 

 agent, pursuant to which ASTT held certain Merger Shares in escrow pending the
occurrence of certain events; 
 WHEREAS, ASTT also served as the Exchange Agent, pursuant to the Merger Agreement, and as Verticalnet’s
transfer agent; 
 WHEREAS, in or about June 2000, Schreiber LLC and Wyoma assigned certain Merger Shares to K.F.G. Trust (2000), Ltd.
(“KFG”); 
 WHEREAS, on or about September 19, 2004 Schreiber, as successor in interest to Schreiber LLC, and Wyoma
entered into Assignment of Claims agreements with Jodek, pursuant to which Schreiber and Wyoma assigned certain claims to Jodek; 
 WHEREAS,
Jodek filed an action (the “Action”) against Verticalnet, ASTT, James McKenzie, Mark Walsh and Douglas Alexander, docketed at No. 04-CV-04455 in the United States District Court for the Eastern District of Pennsylvania (the
“Court”) asserting claims as a shareholder to effect the sale of securities issued by Verticalnet, and sought damages in excess of Eleven Million Dollars ($11,000,000) (USD); 
 WHEREAS, on or about January 27, 2006, the Court entered an order (the “Order”) sustaining the viability of certain of Jodek’s
claims and dismissing certain other claims against Verticalnet and ASTT and dismissing all claims against McKenzie, Walsh and Alexander (collectively, the “Individual Defendants”); 
 WHEREAS, following the Order, Jodek’s remaining claims assert breach of contract and of UCC §§ 8-401 and 407 against Verticalnet and ASTT
arising out of alleged delays in registering the Merger Shares for resale with the SEC, registering the transfer of certain Merger Shares to KFG, and releasing the Merger Shares from lock-up and escrow; 
 WHEREAS, Verticalnet and ASTT initially denied liability to Jodek with respect to the claims remaining in the Action after the Order; 

 WHEREAS, Verticalnet and ASTT have filed a third-party complaint against Schreiber and Wyoma seeking
contribution and indemnity, pursuant to the Escrow Agreements; 
 WHEREAS, Verticalnet is an insured under that certain Directors, Officers
and Corporate Liability Insurance Policy No. 14-MGU-04-A3710, effective February 11, 2004 through February 11, 2005, 12:01 AM (the “Policy”) issued by U.S. Specialty Insurance Company (the “Insurer”),
which provides, inter alia, coverage for Securities Claims; 
 WHEREAS, Verticalnet has a self-insured retention of $500,000 (the
“Retention”) under the Policy and, as of June 14, 2006, had expended approximately $380,000 of the Retention in legal fees and expenses; 
 WHEREAS, Verticalnet tendered the Action to the Insurer, asserting that Jodek’s claims are covered under the Policy and constitute covered Securities Claims; 
 WHEREAS, the Insurer has denied coverage under the Policy of the breach of contract claims and disclaimed both defense and liability coverage of the vast
majority of the expenses of the Action for the UCC claims; 
 WHEREAS, Verticalnet and Jodek, recognizing the continued costs of litigation
and the inherent risks of litigation of the damage claims asserted, conducted extensive settlement negotiations and engaged in multiple mediation sessions with United Magistrate Judge David Strawbridge over a period of many months; 
 WHEREAS, the Insurer was advised repeatedly of such settlement negotiations and mediations, was invited to participate, refused to contribute to any
meaningful settlement, and, despite its position regarding coverage described above, objected to this settlement; 
 WHEREAS, as a result of
the negotiations and mediations, having each assessed the likely outcome at trial, the cost of litigation, and other factors individual to each party, Verticalnet and Jodek now desire to compromise and settle their claims and defenses and resolve
all claims against each other; 

 NOW, THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable
consideration, the receipt and adequacy of which are acknowledged hereby, and intending to be legally bound hereby, Jodek and Verticalnet agree as follows: 
 1. Definitions used hereinafter: 
  

	 	1.1	“Indemnity Covered Expenses” means all losses, expenses, costs, fees, fines, sanctions or damages Verticalnet incurs as a result of the Insurance Action, the
conduct of the Insurance Action, or the actions of Jodek or counsel it chooses to represent Verticalnet in the Insurance Action. 

  

	 	1.2	“Insurance Action” means the legal action to be brought by Verticalnet against the Insurer to recover an amount at least equal to the Outstanding Settlement Amount
for Insurance Claims against the Insurer. 

  

	 	1.3	“Insurance Claims” means all claims and causes of action arising under, out of or relating to, in any fashion, the Action and the Policy, including but not limited
to the Insurer’s actions and inactions under the Policy; the Insurer’s denial of coverage, disclaiming of coverage or limitation of coverage under the Policy for the claims asserted in the Action; the Insurer’s refusal to cover and
pay the Settlement Amount; and the Insurer’s refusal to contribute to the Settlement Amount, as well as all claims against the Insurer for bad faith, including but not limited to claims under 42 Pa.C.S. § 8371. 

  

	 	1.4	“Insurer Payment” means any and all amounts paid by the Insurer to Verticalnet as a result of the Insurance Action, whether by settlement, compromise, judgment,
execution, or otherwise. 

	 	1.5	“Insurer Payment Event” means any payment by the Insurer to Verticalnet, and received by Verticalnet, on account of or as a result of the Insurance Action.

  

	 	1.6	“Outstanding Settlement Amount” means the difference between the Settlement Amount and the Settlement Payment. 

  

	 	1.7	“Settlement Amount” means the sum of Five Million Five Hundred and Sixty Three Thousand Dollars ($5,563,000.00) (USD). 

  

	 	1.8	“Settlement Payment” means the payment of the amount of the Retention, less the amount incurred by Verticalnet in legal fees and expenses in defending the Action
through the date of this Agreement. 

 2. Settlement Amount, Settlement Payment, Insurer Payment Event:
Verticalnet and Jodek hereby agree to settle this action for the Settlement Amount which is hereby agreed to constitute Jodek’s damages and for which Verticalnet acknowledges and agrees it is liable and legally obligated to pay in accordance
with the terms of this Agreement. Within ten (10) days of execution of this Agreement, Verticalnet shall deliver by wire transfer to counsel for Jodek the Settlement Payment in accordance with the written wiring instructions previously
provided. If and only to the extent that there is an Insurer Payment Event, Verticalnet shall, within ten (10) days after the Insurer Payment Event, wire transfer to counsel for Jodek the same amount as the Insurer Payment in accordance with
the written wiring instructions previously provided. In addition to the foregoing, Verticalnet acknowledges and agrees that the Insurer may pay all or any portion of the Insurer Payment directly to Jodek as the result of a judgment, verdict or
settlement in the Insurance Action. 
 3. Insurance Action: Verticalnet agrees to bring the Insurance Claims in the Insurance
Action and Jodek will engage counsel to represent Verticalnet in the Insurance Action and will pay all costs and expenses, including legal fees, of the Insurance Action. Counsel 

 chosen by Jodek to represent Verticalnet in the Insurance Action shall execute an agreement in writing in a form
reasonably acceptable to Verticalnet in which such counsel agrees that Jodek is solely responsible to pay to such counsel all legal fees for, and any expenses it incurs in, the Insurance Action. Jodek shall provide all instructions to counsel it
engages to represent Verticalnet in the Insurance Action regarding the conduct of the Insurance Action, except with respect to Verticalnet’s confidential or privileged information or documents and scheduling matters affecting Verticalnet or its
employees, officers or directors. Verticalnet will cooperate with Jodek and counsel appearing on behalf of Verticalnet to the extent reasonably necessary to pursue the Insurance Action, but shall be under no duty to waive any privileges or
protections for Verticalnet information or documents from discovery. Jodek agrees to indemnify and defend Verticalnet against, and to hold Verticalnet harmless from all Indemnity Covered Expenses. Excepted from the foregoing indemnification are any
and all Indemnity Covered Expenses resulting or arising out of any conduct of Verticalnet independent of actions directed by Jodek and its counsel. 
 4. Right to Pursue Insurance Action: If and at the first opportunity it can do so in the future without violating any contractual obligations, covenants or conditions existing as of the date hereof, Verticalnet will
immediately and irrevocably assign to Jodek all of Verticalnet’s rights to the Insurance Claims and to pursue the Insurance Action, free and clear of all liens, claims and encumbrances, at which time Jodek will substitute itself as assignee of
Verticalnet as a party to the Insurance Action. 
 5. Verticalnet Future Assignment to Jodek: If and when Verticalnet is first able to
legally assign its rights under the Insurance Claims and the Insurance Action, Verticalnet shall immediately and irrevocably sell, transfer, assign, grant, and convey to Jodek free and clear of all liens or encumbrances (i) all of its rights,
title and interests in, to and under the Policy to recover 

 the Insurance Claims and all proceeds and products of the foregoing, and (ii) all of its Insurance Claims.
(Collectively the “Assignment”) 
 6. Warranties of Verticalnet Regarding Security: Verticalnet warrants to Jodek
that the only parties which have security interests in Verticalnet’s rights under the Policy, the Insurance Claims and the Insurance Action, and/or the proceeds thereof, are those identified in the August 16, 2005 Security Agreement as the
“Secured Parties”. 
 7. Security Restriction. From the effective date of this Agreement, Verticalnet agrees that it
shall not further transfer, collateralize, convey, assign, lien, or mortgage any of its rights and claims under the Policy, the Insurance Claims and the Insurance Action. 
 8. Conduct of the Insurance Action and Insurer Payment Event. In the event that any third persons or entities (“Third Parties”) asserts any contractual right granted by Verticalnet
purporting to have priority or seniority to the rights of Jodek granted herein, the assertion of which contract rights results in some, any or all of any Insurance Payment being taken by or paid over to the Third Parties, or if the assertion of such
Third Parties’ contract rights results in a payment by the Insurer directly to any of the Third Parties on any of the Insurance Claims, then Verticalnet shall after written notice thereof immediately pay an amount to Jodek equal to all such
amounts taken or paid over to any Third Parties. To the extent that the assertion of any Third Party’s contract rights interferes in or impedes Jodek’s prosecution to conclusion of the Insurance Action, then Verticalnet shall after written
notice thereof immediately, continuously and diligently take such steps as are necessary to return to Jodek all of the rights granted herein as to the prosecution of the Insurance Action. 
 9. Warranties of Verticalnet Regarding Insurance: Verticalnet warrants to Jodek that (i) the Insurer issued the Policy to Verticalnet,
(ii) Verticalnet paid all premiums due under the Policy, (iii) Verticalnet has not knowingly made any statement or misstatement to the Insurer or taken any action or failed to take any action that would void the Policy, (iv) as of the
date 

 hereof, Verticalnet has not received notice that the Policy was cancelled or revoked, (v) Verticalnet believes the
Policy should cover the claims asserted in the Action and the payment of the Outstanding Settlement Amount, (vii) the Insurer has denied, disclaimed or limited coverage for the Action consistent with the Insurer’s counsel’s letters of
November 3, 2004 and May 5, 2006, attached hereto at Ex. A, and (viii) the Insurer has refused to contribute to the Settlement Amount or to pay the Outstanding Settlement Amount. 
 10. Dismissal of the Action: The parties agree to dismiss the Action with prejudice and without costs to any party. No party shall appeal
the dismissal. 
 11. Release of Defendants: Except for those obligations arising out of this Agreement, Jodek, together with
each of its predecessors, assignors, current and former parent companies, subsidiaries, and affiliates, and the current and former shareholders, members, officers, directors, predecessors, trustees, beneficiaries, advisors, partners, employees,
agents, consultants, representatives and attorneys for each of the foregoing, and each of their trustees, administrators, successors, assigns, heirs, spouses and executors and anyone claiming by or through them or on their behalf (collectively, the
“Jodek Releasing Parties”), hereby remise, release and forever discharge Verticalnet, ASTT, and the Individual Defendants, together with their respective current and former parent corporations, subsidiaries, and affiliates, and the current
and former shareholders, officers, directors, predecessors, trustees, advisors, members, partners, employees, agents, consultants, representatives, attorneys, administrators, heirs, spouses, executors, successors and assigns of each of the foregoing
(collectively, the “Defendant Released Parties”), from and against all manner of action or actions and causes of action, complaints, suits, dues, accounts, bonds, covenants, contracts, agreements, invoices, promises, guarantees,
warranties, representations, liens, judgments, liabilities, obligations, damages, debts, claims or demands whatsoever, in law or in equity, that the Jodek Releasing Parties now have, ever had or may ever have against the Defendant Released Parties
or any of them, singularly or 

 in any combination, on account of, arising out of, or in connection with any thing, cause, matter, transaction, act or
omission of any nature whatsoever relating to the Merger Agreement and the Action, from the beginning of time to the date of the Agreement. 
 12. Release of Jodek: Except for those obligations arising out of this Agreement, Verticalnet, together with each of its current and former parent companies, subsidiaries, and affiliates, and the current and former
shareholders, officers, directors, predecessors, trustees, advisors, partners, employees, agents, consultants, representatives and attorneys for each of the foregoing, and each of their administrators, successors, assigns, heirs, spouses and
executors and anyone claiming through them or on their behalf (collectively, the “Verticalnet Releasing Parties”), hereby remise, release and forever discharge Jodek, together with its current and former parent corporations, subsidiaries
and affiliates, and the current and former shareholders, officers, directors, predecessors, assignors, trustees, advisors, members, partners, employees, agents, consultants, representatives, attorneys, administrators, successors, heirs, spouses,
executors and assigns of each of the foregoing (collectively, the “Jodek Released Parties”), from and against all manner of action or actions and causes of action, complaints, suits, dues, accounts, bonds, covenants, contracts, agreements,
invoices, promises, guarantees, warranties, representations, liens, judgments, liabilities, obligations, damages, debts, claims or demands whatsoever, in law or in equity, that the Verticalnet Releasing Parties now have, ever had or may ever have
against the Jodek Released Parties or any of them, singularly or in any combination, on account of, arising out of, or in connection with any thing, cause, matter, transaction, act or omission of any nature whatsoever relating to the Merger
Agreement and the Action, from the beginning of time to the date of the Agreement. 
 13. Further Release. Excluding those
rights granted herein, Jodek releases any claim against Verticalnet for the Outstanding Settlement Amount and shall not seek to recover 

 the Outstanding Settlement Amount from Verticalnet, except in each case to the extent Verticalnet receives the Insurer
Payment. 
 14. Entire Agreement: This Agreement constitutes the entire and final understanding and agreement between the
parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, whether written or oral, of the parties. Each party represents and warrants to the other that it has relied on no representation or
promise, written or oral, made by the other party, except as expressly set forth herein. 
 15. Titles and Captions: The titles
and captions of the paragraphs of this Agreement are for the convenience of the parties only and shall not affect, enlarge or modify the terms or conditions of this Agreement, nor shall they be considered in any manner whatsoever in the
interpretation, intent or meaning of this Agreement. 
 16. Binding Agreement: This Agreement shall be binding upon and inure
to the benefit of the parties hereto, as well as to their respective heirs, personal representatives, successors and assigns. 
 17. No
Assignment: No party may assign its obligations under this Agreement. 
 18. Written Waiver or Modification: Any party
to this Agreement may waive any of the terms or conditions of this Agreement, or agree to an amendment or modification of this Agreement, only by an agreement in writing executed in the same manner (but not necessarily by the same persons) as this
Agreement. No amendment or modification of this Agreement shall be binding unless in writing and executed by the party amending or waiving such term or condition of this Agreement. No waiver of any of the provisions of this Agreement shall be deemed
or shall constitute a waiver of any other provision hereof, whether or not similar, nor shall any waiver constitute a continuing waiver unless expressly provided therein. 
 19. Governing Law and Venue: This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without regard to 

 conflicts of laws principles. The parties agree that all disputes regarding or arising out of this Agreement shall be
submitted exclusively to the Court or, if it lacks subject matter jurisdiction, to the Pennsylvania Court of Common Pleas for Philadelphia County. 
 20. Mutual Representations and Warranties: Each party represents and warrants that: 
 a. It is authorized to enter
into this Agreement; 
 b. It has received the advice of counsel of its choosing in connection with the preparation and execution of this
Agreement; 
 c. It has carefully read the terms of this Agreement and knows the contents of this Agreement; 
 d. It fully knows the meaning and effect of this Agreement; 
 e. Its entry into and execution of this Agreement is its own free and voluntary act and deed, without compulsion of any kind; 
 f. Except as expressly stated herein, it is not relying on any statement or representation of any person, and no inducement except as herein expressed was made to it; 
 g. The discovery by it, subsequent to the execution of this Agreement, of any fact(s) not heretofore known to it, or discovery that the fact(s) or law
upon which it relied in executing this Agreement was not as it believed it to be, shall not constitute grounds for declaring this Agreement void, avoidable or otherwise unenforceable. This paragraph is intended by the parties to preclude any claim
that any party was fraudulently induced to enter into this Agreement or was induced to enter into this Agreement by mistake of fact or law; 
 h. It has made such investigation as it deemed necessary or desirable of the matters contained in or relating to this Agreement and the Action; and 
 i. The claims that are the subject matter of the Action have not been assigned or transferred to any third party. 

 21. Construction and Interpretation: This Agreement has been negotiated at arms length and
shall be construed as having been drafted jointly by the parties. 
 22. Authority: All persons signing this Agreement on
behalf of an entity possess the requisite authority to bind the entity on whose behalf he or she is signing. 
 23.
Enforceability: If any portion of this Agreement is held legally invalid or unenforceable, such event shall not render invalid or unenforceable any other portion of this Agreement and the remainder of this Agreement shall be read as
though the invalid or unenforceable portion were omitted, provided that such reading shall not materially frustrate the intent of the parties, as evidenced in this Agreement. It is the intent of the parties that this Agreement be carried out to the
fullest extent permitted. 
 24. Remedies: If either party shall breach any provision of this Agreement and the non-breaching
party incurs any damages, costs or expenses, including, but not limited to, reasonable attorney’s fees and other legal expenses, to enforce the provisions of this Agreement, in addition to all other legal and equitable remedies available to the
non-breaching party, the breaching party shall pay to the non-breaching party all such damages, costs or expenses incurred. 
 25.
Counterparts: This Agreement may be executed in two counterparts and delivered by facsimile and shall be binding upon the parties hereto as if all signatures had been affixed on a single original hereof. 
 26. Confidentiality: Jodek and counsel engaged to represent Verticalnet in the Insurance Action shall maintain all non-public information
received from Verticalnet and any other information so designated by Verticalnet as confidential and shall not disclose such information to anyone for any purpose absent the express written consent of Verticalnet. Notwithstanding any other provision
of this agreement, Verticalnet shall not be required to disclose to Jodek or counsel engaged to represent Verticalnet in the Insurance Action any non- 

 public information and such refusal to disclosure such information shall not be deemed a breach of any duty to cooperate
in the Insurance Action. 
 27. Entry as an Order of Court. This Settlement Agreement shall be entered as an order of Court in
the Action. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement, as of the date first written above. 
  

									
	JODEK CHARITABLE TRUST, R.A.	 		 	VERTICALNET, INC.
					
	By:	 	 /s/ Neal A. Jacobs
	 		 	By:	 	 /s/ Gene S. Godick

	Its:	 	Attorney	 		 	Its:	 	 Executive Vice President and
 Chief Financial
Officer

 AND NOW, this 22nd day of August, 2006 it is Ordered that the parties’ attached Settlement Agreement is
APPROVED and ENTERED as an order of this Court and this matter is DISMISSED WITH PREJUDICE. 
  

	
	 /s/ Anita B. Brody

	Anita B. Brody, J.Amendment No. 1 to the Employment Agreement

 Exhibit 10.1 
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this
“Agreement”) is entered into by and between Transgenomic, Inc., a Delaware corporation (the “Company”), and Craig Tuttle (“Employee”) on July 31, 2006, in order to clarify the parties’ respective
obligations with respect to the income tax liabilities related to the benefits described in Section 6 hereof. This Agreement restates and supersedes that certain Employment Agreement between the parties hereto dated July 12, 2006, and for
all purposes this Agreement shall be deemed to be effective as of July 12, 2006. 
 The Company and Employee desire to enter into an
employment agreement. Accordingly, the Company and Employee agree as follows: 
 Section 1. Effective Date; Position;
Term. This Agreement shall become effective on July 12, 2006 (the “Effective Date”). The Company shall employ Employee as its President and Chief Executive Officer. The initial term of the Agreement will be two (2) years
from the Effective Date, but shall be automatically extended for additional terms of one (1) year unless either the Company or the Employee provides written notice to the other that it does not intend to extend this Agreement not later than 60
days prior to the end of the then current term. 
 Section 2. Position and Duties. During the term of this Agreement:

 (a) Employee shall have the normal responsibilities, duties and authorities of President and Chief Executive Officer of the
Company described in its bylaws and such other reasonable duties as may be assigned to him by the Board of Directors of the Company (the “Board”) from time to time. 
 (b) Employee shall report to the Board, Employee shall perform faithfully the executive duties assigned to him to the best of his ability
in a diligent, trustworthy, businesslike and efficient manner and will devote his full business time and attention to the business and affairs of the Company and its subsidiaries and affiliates; provided, however, that Employee may serve as a
director of or a consultant to nonprofit corporations, civic organizations, professional groups and similar entities. 
 Section 3. Basic Compensation. As compensation for his services hereunder, the Company shall pay to Employee a base salary of $250,000 per year for the initial two year term of this Agreement.
Employee’s base salary may be increased with respect to subsequent terms of this Agreement as determined by the compensation committee of the Board (the “Compensation Committee”).  
 Base Salary shall be payable in equal installments in arrears on a biweekly basis or as otherwise may be mutually agreed upon. 
 Section 4. Bonus. In addition to the Base Salary, Employee shall be eligible to receive an annual bonus of up to 20% of base salary
(pro-rated for 2006) based on Employee’s performance in conjunction with specific mutually agreed goals and objectives and formulas determined by the Compensation Committee in its sole discretion prior to each calendar year. Bonuses, if any,
will be payable at such time or times during or following each calendar year as shall be determined by the Compensation Committee in its sole discretion. Any bonus for 2006 will be based upon a plan prepared by Employee and approved by the
Compensation Committee within sixty (60) days of the Effective Date of this Agreement. 

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

 Section 6. Other Benefits. 
  

	 	(a)	Vacation. Employee shall participate in the vacation benefit provided to all employees. 

  

	 	(b)	Insurance. The Company shall make available to Employee health insurance (including dependent coverage), and other employee benefit plans provided to employees.

  

	 	(c)	Leased Vehicle. The Company shall provide Employee a mutually agreeable vehicle in Omaha, Nebraska. The Company shall reimburse Employee for the income tax liability arising
as a result of having been provided with such leased vehicle. 

  

	 	(d)	Relocation Assistance. The Company will reimburse Employee for reasonable qualified moving expenses not to exceed $20,000 incurred within twelve (12) months from the
Effective Date in connection with relocation to Omaha, Nebraska. Qualified moving expenses are defined as those allowed by the Internal Revenue Service as an adjustment to gross income. 

  

	 	(e)	Temporary Living Expenses. Until Employee establishes permanent residence in Omaha, Nebraska but for no longer than twelve (12) months from the Effective Date of this
Agreement, the Company shall provide the following temporary living expenses: 

  

	 	a.	Housing Allowance. The Company shall pay up to $1,500 a month for a furnished apartment in Omaha, Nebraska. The Company shall reimburse Employee for the income tax liability
arising as a result of having been provided with such furnished apartment. 

  

	 	b.	Commuting. The Company shall provide for airfare associated with commutes to Employee’s permanent home every other week. The Company shall reimburse Employee for the
income tax liability arising as a result of having been provided with such airfare. 

 Section 7.
Business Expenses. The Company shall reimburse Employee for all reasonable expenses incurred by him in the course of performing his duties under this Agreement which are consistent with the Company’s policies in
effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company’s requirements with respect to reporting and documentation of such expenses. 
 Section 8. Stock Options and Option Shares. Employee will be granted options to purchase shares of the Company’s common stock
under its stock option plan on the terms described below, subject to final approval of the Compensation Committee. The price of the options will be the fair market value on the date the options are granted. The options will vest equally on the next
three anniversary dates of the grant. Granted and unvested options will vest upon the Company being acquired or merged into another entity. 

	 	(a)	200,000 on or about the Effective Date of the Agreement; 

	 	(b)	200,000 on or about January 12, 2007; and 

	 	(c)	200,000 on or about July 12, 2007. 

 Section 9.
Termination of Employment. 
 (a) Events of Termination and Severance Payment. In the event that, during
the term of this Agreement, Employee is involuntarily discharged for any reason other than for Just Cause (as defined below), Employee shall be entitled to receive a severance payment (the “Severance Payment”) equal to the amount of the
Employee’s then current annual base salary. The Severance Payment will be paid to Employee over a period of twelve months in the manner described in Section 3 and will be subject to applicable income tax withholding consistent with the
Company’s normal payroll practices. Additionally, upon the Company being acquired or merged into another entity, Transgenomic, Inc. will honor the Severance Payment in the event that the Employee’s position was eliminated as a result of
the merger or acquisition. 
 (b) “Just Cause” being defined as any criminal act (felony) being committed by
employee, if employee commits fraud or dishonesty toward the Company, other significant activities materially harmful to the reputation of the Company as reasonably defined by the Company, willful refusal to perform or substantial disregard of the
duties properly assigned, significant violation of any statutory or common law or a material violation of Sections 11 or 12 below, not reasonably performing assigned tasks to meet minimum expectations of the position, or intentionally takes any
other action materially detrimental to the best interests of the Company 
 (c) Effect of Breach of Noncompetition
Provisions. In the event Employee breaches or otherwise fails to comply with the provisions of Section 11 or 12 below, then, in addition to any other remedies provided herein or at law or in equity, the Company shall have the right to
require return of any severance payment made to the Employee. Return of such Severance Payment pursuant to the preceding sentence shall not relieve Employee’s obligations pursuant to Sections 11 and 12 below. 
 Section 10. Assignment and Succession. 
 (a) The rights and obligations of the Company under this Agreement shall inure to the benefit of and be binding upon its respective successors and assigns, and Employee’s rights and obligations hereunder shall
inure to the benefit of and be binding upon his successors and permitted assigns, whether so expressed or not. 
 (b) Employee
acknowledges that the services to be rendered by him hereunder are unique and personal. Accordingly, Employee may not pledge or assign any of his rights or delegate any of his duties or obligations under this Agreement without the express prior
written consent of the Board. 
 (c) The Company may not assign its interest in or obligations under this Agreement without
the prior written consent of Employee. 

 Section 11. Confidential Information. 
 (a) Company Information. Employee agrees at all times during the term of his relationship with the Company and thereafter, to hold
in strictest confidence, and not to use, except for the benefit of the Company, or to disclose to any person, firm, corporation or other entity without written authorization of the Board of Directors of the Company, any Confidential Information of
the Company which Employee obtains or creates, by whatever means. Employee further agrees not to make copies of such Confidential Information except as authorized by the Company. Employee understands that “Confidential Information”
means any Company proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, suppliers, customer lists and customers (including, but not limited to, customers of
the Company on whom Employee called or with whom Employee became acquainted during the relationship), prices and costs, markets, software, developments, inventions, laboratory notebooks, processes, formulas, technology, designs, drawings,
engineering, hardware configuration information, marketing, licenses, finances, budgets or other business information disclosed to Employee by the Company either directly or indirectly in writing, orally or by drawings or observation of parts or
equipment or created by Employee during the period of the relationship, whether or not during working hours. Employee understands that “Confidential Information” includes, but is not limited to, information pertaining to any aspects
of the Company’s business which is either information not known by actual or potential competitors of the Company or is proprietary information of the Company or its customers or suppliers, whether of a technical nature or otherwise. Employee
further understands that “Confidential Information” does not include any of the foregoing items which have become publicly and widely known and made generally available through no wrongful act of Employee’s or of others who
were under confidentiality obligations as to the item or items involved. 
 (b) Former Employer Information. Employee
represents that as an employee of the Company, he has not breached and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by Employee in confidence or trust prior or subsequent to the commencement
of Employee’s relationship with the Company, and Employee will not disclose to the Company, or induce the Company to use, any inventions, confidential or proprietary information or material belonging to any previous employer or any other party.

 (c) Third Party Information. Employee recognizes that the Company has received and in the future will receive
confidential or proprietary information from third parties subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. Employee agrees to hold all such
confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out Employee’s work for the Company consistent with the Company’s
agreement with such third party. 
 Section 12. Return of Company Documents. Employee agrees that, at the time of
termination of his relationship with the Company, he will deliver to the Company (and will not keep in his possession, recreate or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence,
specifications, drawings, blueprints, sketches, laboratory notebooks, materials, flow charts; equipment, other documents or property, or reproductions of any aforementioned items developed by Employee pursuant to the relationship or otherwise
belonging to the Company, its successors or assigns. Employee further agrees that any property situated on the Company’s premises and owned by the Company, including disks and other storage media, filing cabinets or other work areas, is subject
to inspection by Company personnel at any time with or without notice. 

 Section 13. Noncompetition. Independent of any obligation under any
other contract or agreement between Employee and the Company, for a period of one (1) year following the termination of Employee’s employment relationship with the Company, Employee shall not, directly or indirectly, whether as an
individual for his own account, or for or with any other person, firm, corporation, partnership, joint venture, association, or other entity whatsoever, which is or intends to be engaged in biotechnology business and, more particularly, that
provides technologies for DNA/RNA analysis and purification utilizing DHPLC technologies (provided, however, that the restrictions set forth in this clause shall not apply to involvement that consists solely of “beneficially owning,” as
such term is used in Rule 13d-3 promulgated under the Exchange Act 2% or less of the outstanding securities of any class of securities issued by a publicly-traded entity): 
 (a) Solicit, interfere with, or endeavor to entice away from the Company, any person, firm, corporation, partnership, or entity of any
kind whatsoever, which was or is a client or licensor of the Company, for which the Company performed services, with respect to any business, product or service that is competitive to the products or services offered by the Company, or under
development by the Company, as of the date of the termination of Employee’s relationship with the Company. This restriction shall apply only to such clients or licensors of the Company as were serviced or solicited by Employee at any time
during the one (1) year prior to the separation of Employee’s relationship with the Company, either as an independent contractor or as an employee of the Company; 
 (b) Solicit or endeavor to induce any of the Company’s employees or consultants to terminate their relationship with the Company, or
take away such employees or consultants, or attempt to solicit, induce, recruit, encourage or take away employees or consultants of the Company, either for Employee or for any other person or entity; 
 (c ) Induce or attempt to induce any supplier, licensee or other business relation of the Company to cease doing business with the
Company, or in any way interfere with the relationship between any such supplier, licensee or business relation and the Company. 
 Section 14. Business Opportunity. Employee represents and acknowledges that the foregoing restrictions will not prevent him from obtaining gainful employment in his field of expertise or cause him
undue hardship; and that there are numerous other employment opportunities available to him that are not affected by the foregoing restrictions. Employee further acknowledges that the foregoing restrictions are reasonable and necessary, in order to
protect the Company’s legitimate interests, and that any violation thereof would result in irreparable injury to the Company. 
 Section 15. 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 16. Arbitration and Equitable Remedies.  
 (a) Except as provide in Section 16 (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 16, the parties agree that, in the event of the breach or threatened breach of Sections 11, 13 or 14 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 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 17. Indemnification. The Company agrees to indemnify and hold harmless Employee to the degree, and subject to the
conditions, set forth in the Company’s Articles of Incorporation and Bylaws and Delaware law. 
 Section 18. 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 19. 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.
		  	12325 Emmet Street
		  	Omaha, NE 68164
		  	Attention: Chairman
		  	Telephone: (402) 452-5400
		  	Telecopy: (402) 452-5447
		
	To the Employee:	  	Craig Tuttle
		  	21870 Horse Butte Trail
		  	Bend, OR 97702
		  	Telephone: (541) 388-7439

 Section 20. Headings. The article and section headings herein are for
convenience of reference only and shall not define or limit the provisions hereof. 

 Section 21. 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 22. 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 23. 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 24. 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 25. 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. 
 Section 26. 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, non-compete 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 27. Survival. Sections 11, 12 and 13 shall survive and continue in full force in accordance with their terms
notwithstanding any termination of this Agreement. 
 IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its duly
authorized officer and Employee has signed this Agreement. 
  

			
	TRANSGENOMIC, INC.
		
	By	 	 /s/ Collin J. D’Silva

	Name:	 	Collin J. D’Silva
	Title:	 	Chairman of the Board
	
	EMPLOYEE
	
	 /s/ Craig Tuttle

	Name:	 	Craig Tuttle
	Title:	 	President and Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]