Document:

EXECUTIVE EMPLOYMENT AGREEMENT
   
  This Executive Employment Agreement, dated July 1, 2013 (the “Commencement Date”), is between Reprints Desk, Inc., a Delaware corporation (the “Company”), Research Solutions, Inc., a Nevada corporation (“Research Solutions”), and Alan Urban, an individual residing at _________________________(“Executive”).
  
 1. Position and Responsibilities
  
  (a) Position. Executive is employed by the Company to render services to both the Company and Research Solutions in the position of Chief Financial Officer.  Executive shall perform such duties and responsibilities as are normally related to such positions in accordance with the standards of the industry and any additional duties now or hereafter assigned to Executive by the Company and Research Solutions. Executive shall abide by the rules, regulations, and practices as adopted or modified from time to time in the Company’s or Research Solutions’s sole discretion.
  
  (b) Other Activities. Except upon the prior written consent of the Company, Executive will not, during the term of this Agreement, (i) accept any other employment, or (ii) engage, directly or indirectly, in any other business activity (whether or not pursued for pecuniary advantage) that might interfere with Executive’s duties and responsibilities hereunder or create a conflict of interest with the Company.
  
  (c) No Conflict. Executive represents and warrants that Executive’s execution of this Agreement, Executive’s employment with the Company, and the performance of Executive’s proposed duties under this Agreement shall not violate any obligations Executive may have to any other employer, person or entity, including any obligations with respect to proprietary or confidential information of any other person or entity.
  
  (d) Term. The term of employment of Executive by the Company pursuant to this Employment Agreement shall be for the period commencing on the Commencement Date and ending on June 30, 2015, or such earlier date that Employee’s employment is terminated in accordance with the provisions of this Employment Agreement.
  
 2. Compensation and Benefits
   
  (a) Base Salary. In consideration of the services to be rendered under this Agreement, the Company shall pay Executive a salary at the rate of Two Hundred One Thousand and Two Hundred Fifty Dollars ($201,250) per year (“Base Salary”).  The Base Salary shall be paid in accordance with the Company’s regularly established payroll practice.  Executive’s Base Salary will be reviewed from time to time in accordance with the established procedures of the Company for adjusting salaries for similarly situated employees and may be adjusted in the sole discretion of the Company.
  
  (b) Bonus Compensation.    Executive is eligible to participate in the executive bonus plan as determined by the boards of directors of the Company and Research Solutions.
   
  (c) Benefits. Executive shall be eligible to participate in the benefits made generally available by the Company to its employees, in accordance with the benefit plans established by the Company, and as may be amended from time to time in the Company’s sole discretion.
  
  (d) Expenses. The Company shall reimburse Executive for reasonable business expenses incurred in the performance of Executive’s duties hereunder in accordance with the Company’s expense reimbursement guidelines.
  
  
  
 
  
 3. At-Will Employment; Termination By the Company
   
  (a) At-Will Termination by the Company. The employment of Executive shall be “at-will” at all times.  The Company may terminate Executive’s employment with the Company at any time, without any advance notice, for any reason or no reason at all, notwithstanding anything to the contrary contained in or arising from any statements, policies or practices of the Company relating to the employment, discipline or termination of its employees.  Upon and after such termination, all obligations of the Company under this Agreement shall cease, unless Executive’s employment is terminated without Cause, in which case the Company shall provide Executive with the severance benefits described in Section 3(b) below.
  
  (b) Severance. Except in situations where the employment of Executive is terminated For Cause, By Death or By Disability (as defined in Section 4 below), in the event that the Company terminates the employment of Executive at any time, Executive will be eligible to receive an amount equal to three (3) months of the then-current Base Salary of the Executive payable in the form of salary continuation.  Executive’s eligibility for severance is conditioned on Executive having first signed a release agreement in the form attached as Exhibit A.  Executive shall not be entitled to any severance payments if Executive’s employment is terminated For Cause, By Death or By Disability (as defined in Section 4 below) or if Executive’s employment is terminated by Executive (in accordance with Section 5 below).
   
 4. Other Terminations By the Company
   
  (a) Termination for Cause. For purposes of this Agreement, “For Cause” shall mean: (i) Executive commits a crime involving dishonesty, breach of trust, or physical harm to any person; (ii) Executive willfully engages in conduct that is in bad faith and materially injurious to the Company, including but not limited to, misappropriation of trade secrets, fraud or embezzlement; (iii) Executive commits a material breach of this Agreement, which breach is not cured within twenty (20) days after written notice to Executive from the Company; (iv) Executive willfully refuses to implement or follow a lawful policy or directive of the Company, which breach is not cured within twenty (20) days after written notice to Executive from the Company; or (v) Executive engages in misfeasance or malfeasance demonstrated by a pattern of failure to perform job duties diligently and professionally.  The Company may terminate Executive’s employment For Cause at any time, without any advance notice.  The Company shall pay to Executive all compensation to which Executive is entitled up through the date of termination, subject to any other rights or remedies of Employer under law; and thereafter all obligations of the Company under this Agreement shall cease.
   
  (b) By Death. Executive’s employment shall terminate automatically upon Executive’s death.  The Company shall pay to Executive’s beneficiaries or estate, as appropriate, any compensation then due and owing.  Thereafter all obligations of the Company under this Agreement shall cease.  Nothing in this Section shall affect any entitlement of Executive’s heirs or devisees to the benefits of any life insurance plan or other applicable benefits.
  
  (c) By Disability. If Executive becomes eligible for the Company’s long term disability benefits or if, in the sole opinion of the Company, Executive is unable to carry out the responsibilities and functions of the position held by Executive by reason of any physical or mental impairment for more than ninety (90) consecutive days or more than one hundred and twenty days (120) in any twelve-month period, then, to the extent permitted by law, the Company may terminate Executive’s employment.  The Company shall pay to Executive all compensation to which Executive is entitled up through the date of termination, and thereafter all obligations of the Company under this Agreement shall cease.  Nothing in this Section shall affect Executive’s rights under any disability plan in which Executive is a participant.
  
  
  
 
  
 5. At-Will Termination By Executive
   
  Executive may terminate employment with the Company at any time for any reason or no reason at all, upon four weeks’ advance written notice. During such notice period Executive shall continue to diligently perform all of Executive’s duties hereunder.  The Company shall have the option, in its sole discretion, to make Executive’s termination effective at any time prior to the end of such notice period as long as the Company pays Executive all compensation to which Executive is entitled up through the last day of the four week notice period. Thereafter all obligations of the Company shall cease.
  
 6. Termination Obligations
   
  (a) Return of Property.  Executive agrees that all property (including without limitation all equipment, tangible proprietary information, documents, records, notes, contracts and computer-generated materials) furnished to or created or prepared by Executive incident to Executive’s employment belongs to the Company and shall be promptly returned to the Company upon termination of Executive’s employment.
  
  (b) Resignation and Cooperation. Upon termination of Executive’s employment, Executive shall be deemed to have resigned from all offices and directorships then held with the Company.  Following any termination of employment, Executive shall cooperate with the Company in the winding up of pending work on behalf of the Company and the orderly transfer of work to other employees.  Executive shall also cooperate with the Company in the defense of any action brought by any third party against the Company that relates to Executive’s employment by the Company.
  
  (c) Continuing Obligations.   Executive understands and agrees that Executive’s obligations under Sections 6, 7, and 8 herein (including Exhibits B and C) shall survive the termination of Executive’s employment for any reason and the termination of this Agreement.
  
 7. Inventions and Proprietary Information; Prohibition on Third Party Information
   
  (a) Proprietary Information Agreement. Executive agrees to sign and be bound by the terms of the Proprietary Information and Inventions Agreement, which is attached as Exhibit B (“Proprietary Information Agreement”).
  
  (b) Non-Solicitation. Executive acknowledges that because of Executive’s position in the Company, Executive will have access to material intellectual property and confidential information.  During the term of Executive’s employment and for one year thereafter, in addition to Executive’s other obligations hereunder or under the Proprietary Information Agreement, Executive shall not, for Executive or any third party, directly or indirectly (i) divert or attempt to divert from the Company any business of any kind, including without limitation the solicitation of or interference with any of its customers, clients, members, business partners or suppliers, or (ii) solicit or otherwise induce any person employed by the Company to terminate his employment.
  
  (c) Non-Disclosure of Third Party Information. Executive represents and warrants and covenants that Executive shall not disclose to the Company, or use, or induce the Company to use, any proprietary information or trade secrets of others at any time, including but not limited to any proprietary information or trade secrets of any former employer, if any; and Executive acknowledges and agrees that any violation of this provision shall be grounds for Executive’s immediate termination For Cause and could subject Executive to substantial civil liabilities and criminal penalties.  Executive further specifically and expressly acknowledges that no officer or other employee or representative of the Company has requested or instructed Executive to disclose or use any such third party proprietary information or trade secrets. 
  
  
  
 
   
  8. Arbitration 
  
 a. ARBITRATION. EXCEPT AS PROVIDED IN SECTION 8(b) BELOW, EXECUTIVE  AGREES THAT ANY DISPUTE OR CONTROVERSY ARISING OUT OF, RELATING TO, OR CONCERNING ANY INTERPRETATION, CONSTRUCTION, PERFORMANCE OR BREACH OF THIS AGREEMENT, SHALL BE SETTLED BY ARBITRATION TO BE HELD IN LOS ANGELES COUNTY, CALIFORNIA, IN ACCORDANCE WITH THE RULES THEN IN EFFECT OF THE AMERICAN ARBITRATION ASSOCIATION.  THE ARBITRATOR MAY GRANT INJUNCTIONS OR OTHER RELIEF IN SUCH DISPUTE OR CONTROVERSY. 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 SHALL PAY ALL OF THE COSTS AND EXPENSES OF SUCH ARBITRATION, AND EACH OF THE COMPANY AND EXECUTIVE SHALL SEPARATELY PAY THEIR COUNSEL FEES AND EXPENSES.
  
 THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EXECUTIVE'S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP (EXCEPT AS PROVIDED IN SECTION 8(b) BELOW), INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING CLAIMS: 
  
 i. ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT; BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION; NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION; 
  
 ii. ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL, STATE OR MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, THE CIVIL RIGHTS ACT OF 1991, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, THE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, AND LABOR CODE SECTION 201, et seq.;
  
 iii. ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.
  
 b. EQUITABLE REMEDIES. EXECUTIVE AGREES THAT IT WOULD BE IMPOSSIBLE OR INADEQUATE TO MEASURE AND CALCULATE THE COMPANY'S DAMAGES FROM ANY BREACH OF THE COVENANTS SET FORTH IN SECTIONS 1 AND 7 HEREIN. ACCORDINGLY, EXECUTIVE AGREES THAT IF EXECUTIVE BREACHES ANY OF SUCH SECTIONS, THE COMPANY WILL HAVE AVAILABLE, IN ADDITION TO ANY OTHER RIGHT OR REMEDY AVAILABLE, THE RIGHT TO OBTAIN AN INJUNCTION FROM A COURT OF COMPETENT JURISDICTION RESTRAINING SUCH BREACH OR THREATENED BREACH AND TO SPECIFIC PERFORMANCE OF ANY SUCH PROVISION OF THIS AGREEMENT. I FURTHER AGREE THAT NO BOND OR OTHER SECURITY SHALL BE REQUIRED IN OBTAINING SUCH EQUITABLE RELIEF AND I HEREBY CONSENT TO THE ISSUANCE OF SUCH INJUNCTION AND TO THE ORDERING OF SPECIFIC PERFORMANCE. 
  
 c. CONSIDERATION. EXECUTIVE UNDERSTANDS THAT EACH PARTY'S PROMISE TO RESOLVE CLAIMS BY ARBITRATION IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT, RATHER THAN THROUGH THE COURTS, IS CONSIDERATION FOR THE OTHER PARTY'S LIKE PROMISE. EXECUTIVE FURTHER UNDERSTANDS THAT EXECUTIVE IS OFFERED EMPLOYMENT IN CONSIDERATION OF EXECUTIVE’S PROMISE TO ARBITRATE CLAIMS. .
   
   
   
 
   
  9. Amendments; Waivers; Remedies 
  
 This Agreement may not be amended or waived except by a writing approved by the Board of Directors and signed by Executive and by a duly authorized representative of the Company other than Executive. Failure to exercise any right under this Agreement shall not constitute a waiver of such right. Any waiver of any breach of this Agreement shall not operate as a waiver of any subsequent breaches. All rights or remedies specified for a party herein shall be cumulative and in addition to all other rights and remedies of the party hereunder or under applicable law.
   
  10. Assignment; Binding Effect 
  
  (a) Assignment.  The performance of Executive is personal hereunder, and Executive agrees that Executive shall have no right to assign and shall not assign or purport to assign any rights or obligations under this Agreement.  This Agreement may be assigned or transferred by the Company; and nothing in this Agreement shall prevent the consolidation, merger or sale of the Company or a sale of any or all or substantially all of its assets. 
  
  (b) Binding Effect.  Subject to the foregoing restriction on assignment by Executive, this Agreement shall inure to the benefit of and be binding upon each of the parties; the affiliates, officers, directors, agents, successors and assigns of the Company; and the heirs, devisees, spouses, legal representatives and successors of Executive.
  
  11. Notices 
   
  All notices or other communications required or permitted hereunder shall be made in writing and shall be deemed to have been duly given if delivered:  (a) by hand; (b) by a nationally recognized overnight courier service; or (c) by United States first class registered or certified mail, return receipt requested, to the principal address of the other party, as set forth below.  The date of notice shall be deemed to be the earlier of (i) actual receipt of notice by any permitted means, or (ii) two (2) business days following dispatch by overnight delivery service or five (5) business days following dispatch by the United States Mail.  Executive shall be obligated to notify the Company in writing of any change in Executive’s address.  Notice of change of address shall be effective only when done in accordance with this paragraph.
  
 Company’s Notice Address:
  
 Research Solutions, Inc.
 5435 Balboa Blvd., Suite 202
 Encino, California 91316
 Attention:  CFO
  
 Executive’s Notice Address:
  
 Alan Urban
 _____________
 _____________
  
  
  
 
   
  12. Severability 
   
  If any provision of this Agreement shall be held by a court or arbitrator to be invalid, unenforceable, or void, such provision shall be enforced to the fullest extent permitted by law, and the remainder of this Agreement shall remain in full force and effect. In the event that the time period or scope of any provision is declared by a court or arbitrator of competent jurisdiction to exceed the maximum time period or scope that such court or arbitrator deems enforceable, then such court or arbitrator shall reduce the time period or scope to the maximum time period or scope permitted by law. 
   
  13. Taxes 
   
  All amounts paid under this Agreement (including, without limitation, Base Salary and Severance) shall be paid less all applicable state and federal tax withholdings and any other withholdings required by any applicable jurisdiction.
   
  14. Governing Law 
   
  This Agreement shall be governed by and construed in accordance with the laws of the State of California.
   
  15. Interpretation 
   
  This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. Sections and section headings contained in this Agreement are for reference purposes only, and shall not affect in any manner the meaning or interpretation of this Agreement.  Whenever the context requires, references to the singular shall include the plural and the plural the singular.
   
  16. Obligations Survive Termination of Employment  
   
  Executive agrees that any and all of Executive’s obligations under this Agreement, including but not limited to Exhibits B and C, shall survive the termination of employment and the termination of this Agreement.
   
  17. Counterparts 
   
  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original of this Agreement, but all of which together shall constitute one and the same instrument. 
  
  18. Authority
   
  Each party represents and warrants that such party has the right, power and authority to enter into and execute this Agreement and to perform and discharge all of the obligations hereunder; and that this Agreement constitutes the valid and legally binding agreement and obligation of such party and is enforceable in accordance with its terms.
  
  19. Entire Agreement 
   
  This Agreement is intended to be the final, complete, and exclusive statement of the terms of Executive’s employment by the Company and may not be contradicted by evidence of any prior or contemporaneous statements or agreements, except for agreements specifically referenced herein (including the Executive Proprietary Information and Inventions Agreement attached as Exhibit B and the Arbitration Agreement attached as Exhibit C).  To the extent that the practices, policies or procedures of the Company, now or in the future, apply to Executive and are inconsistent with the terms of this Agreement, the provisions of this Agreement shall control. Any subsequent change in Executive’s duties, position, or compensation will not affect the validity or scope of this Agreement.
   
   
   
 
   
  20. Executive Acknowledgement  
   
  EXECUTIVE ACKNOWLEDGES EXECUTIVE HAS HAD THE OPPORTUNITY TO CONSULT LEGAL COUNSEL CONCERNING THIS AGREEMENT, THAT EXECUTIVE HAS READ AND UNDERSTANDS THE AGREEMENT, THAT EXECUTIVE IS FULLY AWARE OF ITS LEGAL EFFECT, AND THAT EXECUTIVE HAS ENTERED INTO IT FREELY BASED ON EXECUTIVE’S OWN JUDGMENT AND NOT ON ANY REPRESENTATIONS OR PROMISES OTHER THAN THOSE CONTAINED IN THIS AGREEMENT. 
   
   
 
   
  IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first written above.
  
  	  REPRINTS DESK, INC.: 
 	  
 
	  
 	  
 	  
 
	 By:
 	  
 	  
 
	  
 	  
 	  
 
	 Name:
 	  
 	  
 
	 Title:
 	  
 	  
 
	  
 	  
 	  
 
	  RESEARCH SOLUTIONS, INC.: 
 	  
 
	  
 	  
 	  
 
	 By:
 	  
 	  
 
	  
 	  
 	  
 
	 Name:
 	  
 	  
 
	 Title:
 	  
 	  
 
	  
 	  
 	  
 
	 EXECUTIVE:EXHIBIT 10.1

 

 

EMPLOYMENT AGREEMENT

 

 

THIS EMPLOYMENT AGREEMENT (this
“Agreement”) is entered into as of September 27, 2013, between Transgenomic, Inc., a Delaware
corporation (“Employer”), and Paul Kinnon, an individual (“Executive”).
This Agreement shall become effective as of September 30, 2013 (the “Effective Date”).

 

RECITAL

 

Employer desires to employ Executive, and
Executive desires to be so employed by Employer, on the terms and subject to the conditions set forth in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
premises and the mutual promises set forth in this Agreement, Employer and Executive hereby agree as follows:

 

 

	1.	Term of Employment

(a)The
term of Executive’s employment under this Agreement shall commence effective as of the Effective Date and end on the one-year
anniversary of the Effective Date or such earlier date on which Executive’s employment is terminated under Section 9 of this
Agreement (as may be modified hereunder, the “Expiration Date”); provided that, on the one-year anniversary
and each subsequent anniversary of the Effective Date, the then-current term shall automatically be extended by successive one-year
periods, unless Employer or Executive provides the other with written notice at least three months prior to the expiration of the
then-current term that Employer or Executive wishes to terminate the Agreement, in which case the term shall not be extended. If
the initial term or any subsequent extended term is extended, the Expiration Date shall be the last day of any such extended period,
or such earlier date on which Executive’s employment is earlier terminated under Section 9 of this Agreement. The initial
term and any extensions shall be referred to herein as the “Term.”

 

(b)Nothing
in this Agreement shall impose upon Employer any obligation to retain Executive as an employee, and no such termination by Employer
shall be deemed a breach of this Agreement. In addition, nothing in this Agreement shall restrict Executive from terminating his
employment with Employer, and no such termination by Executive shall be deemed a breach of this Agreement.

 

(c)The
provisions of Sections 8 and 10 of this Agreement, and this Section 1(c), shall survive the expiration or earlier termination of
this Agreement.

 

	2.	Compensation

(a)In
General. In full consideration for all rights and services provided by Executive under this Agreement, Executive shall receive
the compensation set forth in this Section 2.

 

(b)Base
Salary. Commencing on the Effective Date, Executive shall receive an annual base salary (as adjusted, “Base Salary”)
of $350,000. Base Salary payments shall be made in accordance with Employer’s then prevailing payroll policy. Executive’s
Base Salary shall be reviewed by the compensation committee of the Board of Directors of Employer (the “Compensation
Committee”) for an increase on at least an annual basis and may be adjusted at any time if the Compensation Committee,
in its sole and absolute discretion, elects to do so, but any Base Salary decreases must either be with Executive’s written
permission, or be part of an across-the-board reduction that affects all senior executives of Employer by the same percentage.
Executive will not earn any Base Salary during any period of time for which he is not performing active service for Employer, other
than during permitted paid vacations and holidays pursuant to Section 7 of this Agreement, to the extent that similarly situated
executive employees are not paid for such non-performance of services by Employer.

 

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(c)Annual
Bonus. In addition to the Base Salary, starting January 1, 2014, Executive shall be eligible to receive an annual bonus based
on his performance in conjunction with specific mutually agreed goals and objectives and formulas determined by the Compensation
Committee in its sole discretion prior to, or within the first fiscal quarter of, each calendar year; provided that the
target bonus for any year, starting January 1, 2014, shall not be less than 40% of Base Salary. 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.

 

(d) Equity Awards.

 

		(i)	Executive shall be entitled to the following equity awards, which awards shall be granted under
and pursuant to the terms of Employer’s 2006 Equity Incentive Plan (the “Plan”) and the Employer’s
standard forms of equity award agreements adopted by the Compensation Committee for use thereunder:

 

a.A
stock option (the “Option”) to purchase 2,150,000 shares of
common stock of Employer (the “Common Stock”), which Option shall
be granted on the fifth (5th) business day immediately following the date of this Agreement (the “Grant
Date”). One-third of the shares of Common Stock subject to the Option shall vest
on the one-year anniversary of the Grant Date and the remaining shares shall vest in 24 substantially equal installments each
month thereafter, subject to Executive’s continued employment with Employer on each such anniversary date; provided
that if Employer terminates Executive’s employment without Cause (as defined below) or Executive terminates his
employment for Good Reason (as defined below) prior to the one-year anniversary of the Grant Date, a total of one-third of
the shares of Common Stock subject to the Option shall be deemed automatically vested. The Option shall be granted at an
exercise price equal to the fair market value of one share of the Common Stock, as determined in accordance with the
Plan (the “Exercise Price”).

 

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b.A
stock appreciation right (the “SAR”) with respect to 1,000,000
shares of Common Stock, which SAR shall be granted on the Grant Date. The SAR shall vest at a rate of 34% on the one-year
anniversary of the Grant Date, with ratable monthly vesting of the remaining amount over the remaining 24 months, in each
case subject to Executive’s continued employment with Employer on each such anniversary date; provided that if Employer
terminates Executive’s employment without Cause or Executive terminates his employment for Good Reason prior to the
one-year anniversary of the Grant Date, a total of 34% of the SAR shall be deemed automatically vested. The SAR shall be
granted at the Exercise Price and shall be settled in accordance with the terms of the stock appreciation rights agreement
governing the SAR.

 

		(ii)	Notwithstanding anything herein to the contrary, the vesting of the Option, the SAR and any future
equity award granted by Employer to Executive shall accelerate in full and become fully vested upon a Change in Control (as defined
in the Plan).

 

(e)Clawback
Provision. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any
other compensation, paid to Executive pursuant to this Agreement or any other agreement or arrangement with Employer which is subject
to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and
clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any
policy adopted by Employer pursuant to any such law, government regulation or stock exchange listing requirement).

 

(f)Indemnification.
Employer agrees to indemnify and hold Executive harmless to the degree, and subject to the conditions, set forth in Employer’s
Certificate of Incorporation and Bylaws, and applicable Delaware law.

 

	3.	Title

Executive is being
employed under this Agreement in the position of Chief Executive Officer, reporting directly to the Board of Directors of Employer
(the “Board”) through its Chairman. As of the Effective Date or as soon thereafter as is reasonably practical,
Executive will be appointed to the Board. For as long as Executive is serving as Employer’s Chief Executive Officer, Employer
will nominate Executive for election to the Board; provided that Employer shall have no obligation to maintain Executive’s
position on the Board, and Executive irrevocably appoints Employer and any of its executive officers to execute and deliver a resignation
of such positions on Executive’s behalf at the end of the Term (or at the time Executive ceases to hold the position of Chief
Executive Officer). Executive shall initially be based in Solana Beach, California, except for required travel on Employer’s
business.

 

	4.	Duties

Executive shall have
such duties and authority as may be assigned to him by the Board to the extent that such duties and authority are commensurate
with Executive’s position. Executive shall personally and diligently perform, on a full-time and exclusive basis, such services
as Employer or any of its related or affiliated entities or divisions may reasonably require. Executive will at all times perform
all of the duties and obligations required by him under this Agreement in a loyal and conscientious manner and to the best of his
ability and experience. Executive will be permitted to manage personal investments and to participate in civic, charitable, educational,
and professional activities, to the extent that such activities do not compete with Employer or its affiliates and do not interfere
with the performance of Executive’s job duties to Employer.

 

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	5.	Expenses

To the extent Executive
incurs necessary, reasonable, actual and documented travel and business expenses in the course of his employment, Executive shall
be reimbursed for such expenses, subject to Employer’s then-current policies regarding reimbursement of such travel and business
expenses, but in any event such reimbursement shall be paid by March 15 of the year following the calendar year to which the
expenses relate. Specifically, Employer will reimburse Executive for reasonable travel expenses associated with commuting on a
weekly basis from Solana Beach, California to Omaha, Nebraska and New Haven, Connecticut. Reimbursable expenses include reasonable
round-trip economy airfare, transportation to and from the airport, and hotel expenses, in amounts to be agreed upon between Executive
and Employer.

 

	6.	Other Benefits

Executive shall be
entitled to those benefits which are standard for senior executives of Employer, in each such case, subject to the terms and conditions
of such plans, policies, and procedures. Executive expressly agrees and acknowledges that after the expiration of the Term, he
is entitled to no additional benefits, except as specifically provided in this Agreement and except as specifically provided under
the benefit plans referred to above and those benefit plans in which Executive subsequently may become a participant, and subject
in each case to the terms and conditions of each such plan.

 

	7.	Vacation and Paid Holidays

Executive shall participate
in the vacation benefit according to Employer’s vacation policy applicable to senior executives.

 

	8.	Protection of Employer’s Interests

(a)Duty
of Loyalty. During the Term, Executive will owe a duty of loyalty to Employer, which includes, but is not limited to,
not competing in any manner, whether directly or indirectly, as a principal, employee, agent, owner, or otherwise, with Employer,
or any affiliate of Employer, except that the foregoing will not prevent Executive from passive investment in, at any time, less
than four percent (4%) of the outstanding capital stock of any company whose stock is publicly traded.

 

(b)Policy
Compliance. Executive confirms that he has read, understands, and will comply with Employer’s written policies,
as amended or restated from time to time.

 

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(c)Property
of Employer. All rights worldwide with respect to any and all intellectual or other property of any nature produced, created,
or suggested by Executive during the Term or resulting from Executive’s services which (i) relate in any manner at the
time of conception or reduction to practice to the actual or demonstrably anticipated business of Employer, (ii) result from,
or are suggested by, any task assigned to Executive or any work performed by Executive on behalf of Employer, or (iii) are
based on any property owned or idea conceived by Employer, shall be deemed to be a work made for hire, and shall be the sole and
exclusive property of Employer. Executive agrees to execute, acknowledge, and deliver to Employer, at Employer’s request,
such further documents, including copyright and patent assignments, as Employer finds appropriate to evidence Employer’s
rights in such property. Executive’s agreement to assign to Employer any of Executive’s rights as set forth in this
Section 8(c) shall not apply to any invention that qualifies fully under the provisions of California Labor Code Section 2870,
where no equipment, supplies, facility, or trade secret information of Employer were used and such invention was developed entirely
upon Executive’s own time, and such invention does not relate to Employer’s business, and such invention does not result
from any work performed by Executive for Employer.

 

(d)Confidentiality.
No confidential or proprietary information of Employer or any affiliate of Employer shall be used by Executive or disclosed or
made available by Executive to any person except as required in the course of Executive’s employment, and upon the termination
of Executive’s employment (or at any time on Employer’s request), Executive shall return to Employer all such information
that exists, whether in electronic, written, or other form (and all copies thereof) under Executive’s control. Without limiting
the generality of the foregoing, Executive acknowledges signing and delivering to Employer the Employee Confidentiality Agreement
as of the Effective Date (the “Confidentiality Agreement”) and Executive agrees that all terms and conditions
contained in such agreement, and all of Executive’s obligations and commitments provided for in such agreement, shall be
deemed, and hereby are, incorporated into this Agreement as if set forth in full herein. Executive also acknowledges that upon
termination of his employment for any reason whatsoever (or at any time on Employer’s request), he will promptly deliver
to Employer, or surrender to Employer’s representative, all property of Employer and its affiliates, including without limitation,
all documents and other materials (and all copies thereof) relating to Employer’s and its affiliate’s business, all
identification and access cards, all contact lists and third party business cards however and wherever preserved, and any equipment
provided by Employer or its affiliates, including computers, telephones, personal digital assistants, memory cards, and similar
devices which Executive possesses or has in his custody or under his control.

 

(e)Covenant
Not to Compete or Solicit. During the Term, Executive shall not, either alone or jointly, with or on behalf of others, directly
or indirectly, whether as principal, partner, agent, shareholder, director, employee, consultant or otherwise: (a) offer employment
to, or directly or indirectly solicit the employment or engagement of, or otherwise entice away from the employment of Employer
or any affiliated entity, either for Executive’s own account or for any other person, firm or company, any person who was
employed by Employer or any of its affiliates during the Term, whether or not such person would commit any breach of a contract
by reason of his or her leaving the service of Employer or its affiliates; (b) directly or indirectly solicit, induce or entice
any client, customer, contractor, licensor, agent, partner or other business relationship of Employer or its affiliates to terminate,
discontinue, renegotiate or otherwise cease or modify its relationship with Employer or its affiliates; or (c) engage in any competitive
activity with Employer. For a period of (i) six months following Executive’s termination of employment by Employer without
Cause or by Executive for Good Reason, and (ii) one year following Executive’s termination of employment for any other reason
whatsoever, Executive shall not, either alone or jointly, with or on behalf of others, directly or indirectly, whether as principal,
partner, agent, shareholder, director, employee, consultant or otherwise offer employment to, or directly or indirectly solicit
the employment or engagement of, or otherwise entice away from the employment of Employer or its affiliates, either for Executive’s
account or for any other person, firm or company, any person who was employed by Employer or its affiliates within the then preceding
six months, whether or not such person would commit any breach of a contract by reason of his or her leaving the service of Employer
or its affiliates. Executive expressly acknowledges and agrees that the restrictions contained in this Section 8(e) are reasonably
tailored to protect Employer’s and its affiliate’s confidential information and trade secrets, and are reasonable in
all circumstances in scope, duration and all other respects. It is expressly agreed by the parties that if for any reason whatsoever,
any one or more of such restrictions shall (either taken by itself or themselves together) be adjudged to go beyond what is legally
permissible for the protection of the legitimate interests of Employer and its affiliates, that the prohibitions shall be in effect
and upheld to the fullest extent permissible under applicable laws.

 

    	Page 5

    	 

    

(f)No
Disparagement. Executive agrees and represents that he will not defame or disparage Employer either orally or in writing. Employer
agrees and represents that it will instruct its employees not to defame or disparage Executive either orally or in writing. Executive
further agrees to refrain from directly or indirectly engaging in publicity, including written, oral and electronic communication
of any kind, or any other activity which reflects negatively or adversely upon Employer, its business, its actions or its officers,
directors or employees, whether or not Executive believes the content of the publicity to be true or whether or not it is, in fact,
true. The restrictions in this Section 8(f) do not apply to truthful testimony compelled by applicable law or legal process or
to truthful information that either party or their representatives provides to any governmental agency.

 

	9.	Termination 

(a)Right
to Terminate; Accrued Benefits. Executive is an employee at-will, and Executive’s employment may be terminated
at any time and for any reason, or for no reason, by either Executive or Employer. In all cases of termination (including expiration
of the Term), except as expressly set forth in the remainder of this Section 9, Employer shall be obligated only to provide Executive
with (1) the earned but unpaid Base Salary through the date of Executive’s termination; (2) any accrued but unused
vacation time; (3) any benefits not including the Severance Benefits, as defined in Section 9(f) of this Agreement, which
have accrued to Executive prior to termination; (4) reimbursement of approved expenses due to Executive pursuant to Section 5 of
this Agreement; and (5) if Executive’s employment is terminated after completion of a calendar year on account of death under
Section 9(e) of this Agreement, or is terminated by Employer on account of Disability pursuant to Section 9(d) of this Agreement
or without Cause pursuant to Section 9(f) of this Agreement, or is terminated by Executive for Good Reason pursuant to Section
9(f) of this Agreement, (A) any Annual Bonus for the prior calendar year earned but not yet paid; and (B) an Annual Bonus for the
year in which Executive’s termination of employment occurs, which shall be payable solely if and when annual bonuses are
paid to other employees of Employer, prorated from the commencement of such year through the effective date of the termination
of Executive’s employment (collectively, the “Accrued Benefits”).

 

    	Page 6

    	 

    

(b)Resignation.
At any time during the Term, Executive may resign upon not less than thirty (30) days prior written notice to Employer. Upon
receipt of Executive’s notice of resignation, Employer may terminate Executive’s employment prior to the date stated
in such notice and such termination will be treated as a resignation by Executive for all purposes of this Agreement. In the event
of Executive’s resignation, or termination by Employer following receipt of Executive’s notice of resignation, Executive
will receive only the Accrued Benefits.

 

(c)By
Employer for Cause. At any time during the Term, Employer may terminate Executive’s employment and this Agreement for
“Cause,” which shall mean that Executive (i) engaged in willful, reckless or gross misconduct, (ii)
materially breached this Agreement or any other agreement between him and Employer, (iii) committed, was convicted of, or pled
no contest to a felony or crime involving dishonesty or moral turpitude, (iv) breached his duty of loyalty, (v) willfully or negligently
violated Employer’s material policies, or (vi) willfully or negligently failed to follow any lawful written directive of
Employer that is not inconsistent with this Agreement; provided that, with respect to Executive’s negligent violation under
clause (v) above and negligent failure under clause (vi) above , Executive shall have 20 days to cure such violation or failure
if Employer’s Board of Directors determines that such violation or failure is capable of being cured. If Executive’s
employment ends for any reason other than termination by Employer for Cause, at a time when Employer had Cause to terminate Executive
(or would have had Cause if it then knew all relevant facts), Executive’s termination shall be treated as a discharge by
Employer for Cause. If Executive’s employment is terminated for Cause, Employer shall be obligated to provide Executive only
with the Accrued Benefits.

 

(d)By
Employer for Disability. At any time during the Term, Employer may terminate Executive’s employment and this Agreement
on account of Executive’s Disability, except as prohibited by applicable law. “Disability” shall
mean that Executive is unable to perform any of the essential duties of his position by reason of any medically determinable physical
or mental impairment. If Executive’s employment is terminated for Disability, Employer shall be obligated to provide Executive
only with the Accrued Benefits.

 

(e)Termination
on Death. In the event of Executive’s death during the Term, this Agreement and Executive’s employment shall terminate
as of the date of Executive’s death, and Employer shall be obligated to provide Executive’s heirs, successors, legal
representatives, or estate only the Accrued Benefits. Nothing in this Agreement shall limit any payments Executive’s widow,
beneficiaries, or estate may be entitled to receive pursuant to any pension or employee benefit plan or life insurance policy maintained
by Employer.

 

    	Page 7

    	 

    

(f)By
Employer without Cause (Other Than on Account of Disability); By Executive for Good Reason. Employer may terminate Executive’s
employment and this Agreement at any time without Cause, and such termination shall not be deemed a breach by Employer of any term
of this Agreement or any other duty or obligation, expressed or implied, which Employer may owe to Executive pursuant to any principle
or provision of law. Subject to the remaining terms of this Section 9(f), Executive may terminate his employment and this Agreement
at any time for Good Reason, and such termination shall not be deemed a breach by Executive of any term of this Agreement or any
other duty or obligation, expressed or implied, which Executive may owe to Employer pursuant to any principle or provision of law.
In the event of termination by Employer other than for Cause, or by Executive for Good Reason, in either case during the Term,
this Agreement and Executive’s employment shall terminate as of the date specified in the termination notice (subject to
the limitations provided in this section 9(f)), and Employer shall be obligated to provide Executive with only the Accrued Benefits
and “Severance Benefits,” defined as 12 months of Executive’s then-current Base Salary in the form
of salary continuation payable according to Employer’s then-current payroll schedule, commencing on the next payroll date
following the 65th day of such a termination and each payment of which shall be considered a separate “payment” for
purposes of Section 409A of the Internal Revenue Code and the regulations thereunder (“Section 409A”).
Notwithstanding the foregoing, no portion of the Severance Benefits shall be payable unless, within 65 days following Executive’s
termination of employment, Executive signs a severance agreement and general release in substantially the form attached hereto
as Exhibit A, with such changes therein or additions thereto as needed under
then applicable law to give effect to its intent and purposes and ensure its enforceability. For purposes of this Agreement, “Good
Reason” shall mean the occurrence of any of the following events without the express written consent of the Executive,
provided that (i) Executive gives Employer written notice of such event within 30 days of the initial existence of such event,
(ii) such event is not corrected in all material respects by Employer within 90 days following written notification by Executive
to Employer of the occurrence of such event, and (iii) Executive terminates his employment with Employer within five days following
such 90-day remedy period: Employer (W) assigns to Executive duties (including titles and reporting relationships) inconsistent
in any material respect with the Executive’s duties or responsibilities as contemplated by this Agreement; (X) materially
breaches this Agreement or any other agreement between Employer and Executive; (Y) requires Executive to relocate to any jurisdiction
other than Omaha, Nebraska (or Employer’s principal place of business, if other than Omaha, Nebraska); or (Z) requires that
Executive’s one-way commute increase by more than 50 miles from Solana Beach, California.

 

(g)Termination
of Obligations and Severance Payments. In the event of termination of Executive’s employment and this Agreement, all
obligations of Employer to Executive under this Agreement shall immediately terminate except as provided in this Section 9 and
Sections 2(e), 10(k), and 10(t).

 

(h)Breach
of Post-Termination Obligations. In the event that Executive breaches any of his obligations under Section 8 of this Agreement,
Employer may suspend payment of any Severance Benefits, to the extent not prohibited by law; provided, however, that if it is subsequently
determined by a court of competent jurisdiction or binding arbitration that Executive did not breach such obligation (for the sake
of clarity, this provision does not create an independent right to seek such a determination from a court), all suspended Severance
Benefits shall be immediately paid to Executive. 

 

    	Page 8

    	 

    

	10.	General Provisions

(a)Entire
Agreement. This Agreement, together with the Confidentiality Agreement, supersedes all prior or contemporaneous agreements
and statements, whether written or oral, concerning the terms of Executive’s employment with Employer, and no amendment or
modification of these agreements shall be binding unless it is set forth in a writing signed by both Employer and Executive. To
the extent that this Agreement conflicts with any of Employer’s policies, procedures, rules, or regulations, this Agreement
shall supersede the other policies, procedures, rules, or regulations. Employer and Executive specifically agree that this Agreement
supersedes any and all agreements or arrangements between Employer and Executive, including, but not limited to, that certain Consulting
Agreement between Employer and Executive, dated February 20, 2013, as amended (the “Consulting Agreement”);
provided, however, that nothing in this Agreement shall diminish Executive’s right to any payments owed to him under Sections
4(a) or 4(b) of the Consulting Agreement, with respect to time periods ending prior to the Effective Date. Notwithstanding anything
herein to the contrary, the stock option grant to purchase 150,000 shares of Common Stock contemplated under the Consulting Agreement
shall be deemed rescinded by the Company, terminated and of no further force or effect. For the avoidance of doubt, Employer and
Executive hereby agree that any notification requirement with respect to the termination of the Consulting Agreement has been satisfied.

 

(b)Assignment.
Employer may assign this Agreement, or all or any part of its rights under this Agreement, to any entity which succeeds to all
or substantially all of Employer’s stock or assets (whether by merger, acquisition, consolidation, reorganization, or otherwise),
which entity expressly assumes and agrees to be bound by this Agreement, after which Transgenomic, Inc. shall have no remaining
liability under this Agreement and all references to Employer shall instead be deemed to refer to such assignee, and this Agreement
shall inure to the benefit of such assignee. Employer may also assign this Agreement to a subsidiary, but such assignment shall
have no effect upon Executive’s rights or Employer’s liability to Executive hereunder in the event that such subsidiary
breaches the terms of this Agreement.

 

(c)No
Conflict with Prior Agreements; Covenant. Executive represents to Employer that neither Executive’s commencement
of employment under this Agreement nor the performance of Executive’s duties under this Agreement conflicts or will conflict
with any contractual or legal commitment on Executive’s part to any third party, nor does it or will it violate or interfere
with any rights of any third party. Executive covenants to Employer that Executive will not enter into any agreement that conflicts
with any contractual or legal commitment of Executive to the Employer pursuant to this Agreement.

 

(d)Successors.

 

		(i)	This Agreement is personal to Executive and without the prior written consent of Employer shall
not be assignable by Executive. This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives.

 

		(ii)	Subject to Section 10(b) of this Agreement, this Agreement shall inure to the benefit of and be
binding upon Employer and its successors and assigns, including any successor by reason of merger, sale of all or substantially
all of the assets of Employer, or by operation of law.

 

    	Page 9

    	 

    

 

(e)No
Broker. Executive has given no indication, representation, or commitment of any nature to any broker, finder, agent,
or other third party to the effect that any fees or commissions of any nature are, or under any circumstances might be, payable
by Employer or any of its affiliates in connection with Executive’s employment under this Agreement.

 

(f)Waiver.
No waiver by either party of any breach by the other party of any provision or condition of this Agreement shall be deemed a waiver
of any similar or dissimilar provision or condition at the same or any prior or subsequent time.

 

(g)Prevailing
Law. Nothing contained in this Agreement shall be construed so as to require the commission of any act contrary to law, and
wherever there is any conflict between any provision of this Agreement and any present or future statute, law, ordinance or regulation,
the latter shall prevail; but in such event, the provision of this Agreement affected shall be curtailed and limited only to the
extent necessary to bring it within legal requirements.

 

(h)Expiration.
This Agreement does not constitute a commitment of Executive or Employer with regard to Executive’s employment, express or
implied, other than to the extent expressly provided for herein. Upon expiration of the term of this Agreement, it is the contemplation
of both parties that Executive’s employment with Employer shall cease, and that neither Employer nor Executive shall have
any obligation to the other with respect to Executive’s continued employment, except as otherwise expressly provided in this
Agreement.

 

(i)Choice
of Law. The corporate law of the State of Delaware will govern all questions concerning the relative rights of Employer 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.

 

(j)Immigration.
In accordance with the Immigration Reform and Control Act of 1986, employment under this Agreement is conditioned upon satisfactory
proof of Executive’s identity and legal ability to work in the United States.

 

(k)Arbitration.
All disputes relating to Executive’s employment (or its termination), including disputes relating to this Section and this
Agreement, shall be resolved by final and binding arbitration in accordance with this Section. The arbitration will be conducted
by an impartial arbitrator experienced in employment law and who is either a retired judge or who is currently licensed to
practice law, selected from the JAMS panel of arbitrators in accordance with JAMS then current employment arbitration rules
(except as otherwise provided in this Section). Executive understands that Employer and Executive are waiving the right to institute
a court action, except for requests for injunctive relief pending arbitration, and understands that Employer and Executive are
giving up any right to a jury trial. The arbitrator’s award and opinion shall be in writing and in the form typically rendered
in labor and employment arbitrations.

 

Prior to a final arbitral
decision, Executive and Employer 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. Ultimately, the arbitrator shall award attorneys’ fees and costs
to the prevailing party, unless prohibited by applicable law. This arbitration obligation shall not prohibit Employer or Executive
from filing a claim with an administrative agency (e.g., the EEOC), nor does it apply to claims for Workers’ Compensation
or unemployment benefits, or claims for benefits under an employee welfare or pension plan that specifies a different dispute resolution
procedure. The arbitration shall take place in Omaha, Nebraska, unless Employer and Executive agree otherwise.

 

    	Page 10

    	 

    

(l)Severability.
If any provision of this Agreement is held to be illegal, invalid, or unenforceable under existing or future laws effective during
the Term, such provisions shall be fully severable, the Agreement shall be construed and enforced as if such illegal, invalid,
or unenforceable provision had never comprised a part of this Agreement, and the remaining provisions of this Agreement shall remain
in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance from
this Agreement. Furthermore, in lieu of such illegal, invalid, or unenforceable provision, there shall be added automatically as
part of this Agreement a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible
and be legal and enforceable.

 

(m)Legal
Counsel. Executive acknowledges that he has been given the opportunity to consult with legal counsel or any other advisor of
his own choosing regarding this Agreement. Executive understands and agrees that Employer’s in-house attorneys, or any other
attorney retained by Employer, or any member of management who has discussed any term or condition of this Agreement with him or
with Executive, is only acting on behalf of Employer and not on Executive’s behalf.

 

(n)Right
to Negotiate. Executive hereby acknowledges that he has been given the opportunity to participate in the negotiation of the
terms of this Agreement. Executive acknowledges and confirms that he has read this Agreement and fully understands its terms and
contents.

 

(o)Injunctive
Relief. In the event of a breach of, or threatened breach of, the provisions of this Agreement regarding the exclusivity of
Executive’s services and the provisions of Sections 8 and 10 of this Agreement, Executive agrees that any remedy of law would
be inadequate. Accordingly, Executive agrees that Employer is entitled to seek injunctive relief for such breaches or threatened
breaches. The injunctive relief provided for in this Section 10(o) is in addition to, and is not in limitation of, any and all
other remedies at law or in equity otherwise available to the applicable party. The parties agree to waive the requirement of posting
a bond or other security in connection with a court or arbitrator’s issuance of an injunction.

 

(p)Remedies
Cumulative. The remedies in this Agreement are not exclusive, and the parties shall have the right to pursue any other legal
or equitable remedies to enforce the terms of this Agreement.

 

(q)Headings.
The headings set forth herein are included solely for the purpose of identification and shall not be used for the purpose of construing
the meaning of the provisions of this Agreement.

    	Page 11

    	 

    

 

(r)Section
409A. If any amounts that become due under Section 9 of this Agreement constitute “nonqualified deferred
compensation” within the meaning of Section 409A, payment of such amounts shall not commence until Executive incurs
a “separation from service” within the meaning of Treasury Regulation Section 1.409A-1(h). If, at the
time of Executive’s separation from service, Executive is a “specified employee” (under
Internal Revenue Code Section 409A), any benefits as to which Section 409A penalties could be assessed that become payable to Executive
on account of his “separation from service” (including any amounts payable pursuant to the preceding sentence) will
not be paid until after six months and one day after Executive’s separation from service (the “409A Suspension
Period”). Within 14 calendar days after the end of the 409A Suspension Period, Executive shall be paid a lump sum
payment in cash equal to any payments delayed because of the preceding sentence, together with interest on them for the period
of delay at a rate not less than the average prime interest rate published in the Wall Street Journal on any day chosen
by Employer during that period. Thereafter, Executive shall receive any remaining benefits as if there had not been an
earlier delay. 

 

(s)Section
280G. In the event that any payment or benefit received or to be received by Executive pursuant to this Agreement or
under any other agreement, contract, award, arrangement, etc. (collectively, “Payments”) would result
in a “parachute payment” as described in Section 280G of the Internal Revenue Code of 1986, as amended
(or any successor provision), notwithstanding the other provisions of this Agreement, or any other agreement, contract, award,
arrangement, etc., such Payments shall not, in the aggregate, exceed the maximum amount that may be paid to Executive without triggering
golden parachute penalties under Section 280G and related provisions of the Internal Revenue Code, as determined in good faith
by Employer’s independent auditors. If any benefits must be cut back to avoid triggering such penalties, they shall be cut
back in the following order:  First a pro rata reduction of (i) cash payments subject to Section 409A of the Code as deferred
compensation and (ii) cash payments not subject to Section 409A of the Code, and second a pro rata cancellation of (i) equity-based
compensation subject to Section 409A of the Code as deferred compensation and (ii) equity-based compensation not subject to Section
409A of the Code.  Reduction in either cash payments or equity compensation benefits shall be made pro rata between
and among benefits which are subject to Section 409A of the Code and benefits which are exempt from Section 409A of the Code. 
If an amount in excess of the limit set forth in this Section 10(s) is paid to Executive, Executive shall repay the excess amount
to Employer on demand, with interest at the rate provided for in Internal Revenue Code Section 1274(b)(2)(B) (or any successor
provision). Employer and Executive agree to cooperate with each other in connection with any administrative or judicial proceedings
concerning the existence or amount of golden parachute penalties. The foregoing reduction, however, shall only apply if it increases
the net amount Executive would realize from Payments, after payment of income and excise taxes on such Payments.

 

(t)Survivability.
The provisions of this Agreement shall survive the termination or expiration of this Agreement and of Executive’s employment
for any reason, to the extent required to enable the parties to enforce their respective rights hereunder.

 

    	Page 12

    	 

    

(u)Deductions
from Salary, Bonus and Benefits. Employer may withhold from any Base Salary, Annual Bonus, equity or other benefits payable
to Executive all federal, state, local, and other taxes and other amounts as permitted or required pursuant to law, rule, or regulation.

 

	11.	Notices

All notices which
either party is required or may desire to give the other shall be in writing and given either personally or by depositing the
same in the United States mail addressed to the party to be given notice as follows: 

 

	 	To Employer:	Transgenomic,
Inc.
			12325 Emmet Street

Omaha, NE 68164

			Attention: Chairman of the Board

			Telephone: (402) 452-5400

			Telecopy: (402) 452-5447

 

 

	 	To Executive:	Paul Kinnon

                                         ___________________________

                                         ___________________________

			

			

			

 

Either party may,
by written notice, designate a different address for giving of notices. The date of mailing of any such notices shall be deemed
to be the date on which such notice is given. 

 

 

ACCEPTED AND AGREED TO:

 

 

	Employer 	 	Executive
	Transgenomic, Inc.	 	 
	By:	/s/ Rodney S. Markin, M.D., Ph.D.	 	/s/ Paul Kinnon
	 	Rodney S. Markin, M.D., Ph.D.	 	Paul Kinnon
	 	 	 

    	Page 13

    	 

    

 

Exhibit
A

 

Form
of Severance Agreement and General Release

 

 

 

 

 

 

 

    	Page 14

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