Document:

Exhibit 10.1

 

CONVERSION
AGREEMENT 

 

This
Conversion Agreement (this “Agreement”) is made and entered into as of January 6, 2016, by
and among Transgenomic, Inc., a Delaware corporation (the “Company”),
each of the entities listed on the Schedule of Series A Preferred Holders attached hereto as Exhibit
A (the “Series A Preferred Holders”) and each of the entities listed on the Schedule of Series
B Preferred Holders attached hereto as Exhibit B (the “Series
B Preferred Holders” and, together with the Series A Preferred Holders, the “Preferred Holders”).

 

Recitals

 

Whereas,
(1) the Series A Preferred Holders hold an aggregate of 2,586,205 shares of the Company’s Series A Convertible Preferred
Stock, par value $0.01 per share (the “Series A Preferred”), and (2) the Series B Preferred Holders hold
an aggregate of 1,443,297 shares of the Company’s Series B Convertible Preferred Stock, par value $0.01 per share (the “Series
B Preferred” and, together with the Series A Preferred, the “Preferred Shares”);

 

Whereas,
pursuant to Section 4(b) of (1) the Company’s Certificate of Designation of Series A Convertible Preferred Stock, as amended
(the “Series A Preferred Certificate of Designation”), and (2) the Company’s Certificate of Designation
of Series B Convertible Preferred Stock, as amended (as so amended, the “Series B Preferred Certificate of Designation”
and, together with the Series A Preferred Certificate of Designation, the “Certificates of Designation”),
all outstanding Preferred Shares shall be automatically converted into fully paid and non-assessable shares of the Company’s
common stock, par value $0.01 per share (the “Common Stock”), at the then-applicable conversion rate,
at the election of the holders of a majority of the then outstanding Preferred Shares, voting together as a single class on an
as-converted basis;

 

Whereas,
the Preferred Holders collectively hold all of the currently outstanding Preferred Shares;

 

Whereas,
the current conversion rate of the Series A Preferred is 1-for-3, and, in accordance with the Series A Preferred Certificate of
Designation, all of the outstanding shares of the Series A Preferred are currently convertible into an aggregate of 862,057 shares
of Common Stock (the “Series A Preferred Conversion Shares”);

 

Whereas,
the current conversion rate of the Series B Preferred is 1-for-1, and, in accordance with the Series B Preferred Certificate of
Designation, all of the outstanding shares of the Series B Preferred are currently convertible into an aggregate of 1,443,297 shares
of Common Stock (the “Series B Preferred Conversion Shares” and, together with the Series A Preferred
Conversion Shares, the “Conversion Shares”);

 

Whereas,
upon the terms and conditions set forth in this Agreement, each of the Preferred Holders wishes to elect, pursuant to Section 4(b)
of the Certificates of Designation, to convert all of its Preferred Shares into the number of Conversion Shares set forth opposite
its name under the column “Conversion Shares” on Exhibit A and/or
Exhibit B attached hereto, as applicable;

 

     

     

    

 

Whereas,
as of the date hereof, there is an aggregate of $3,681,591.90 in accrued and unpaid dividends on the Series A Preferred (the “Series
A Accrued Dividends”);

 

Whereas,
as of the date hereof, there is an aggregate of $793,236.17 in accrued and unpaid dividends on the Series B Preferred (the “Series
B Accrued Dividends” and, together with the Series A Accrued Dividends, the “Accrued Dividends”);

 

Whereas,
the Certificates of Designation provide that all Accrued Dividends shall be payable to the Preferred Holders in cash; and

 

Whereas,
at the Company’s request, each of the Preferred Holders has agreed that,
in lieu of the Company making a cash payment to the Preferred Holders for the Accrued Dividends on the Preferred Shares, the Company
shall issue to each Preferred Holder, upon the conversion of the Preferred Shares into Common Stock, such number of shares of Common
Stock set forth opposite its name under the column “Dividend Shares” on Exhibit
A and/or Exhibit B attached hereto, as applicable (the “Dividend
Shares”), at a rate of $1.00 per share of Common Stock.

  

Agreement

 

Now,
Therefore, each of the Preferred Holders, for good and valuable consideration, the receipt and sufficiency of which
are acknowledged and agreed, hereby agrees as follows:

 

1.                 
Conversion. This Agreement constitutes written notice to the Company by each Preferred Holder pursuant to Section
4(c) of the Certificates of Designation that such Preferred Holder hereby elects to convert its Preferred Shares into shares of
Common Stock. Immediately upon the execution of this Agreement by all parties hereto: (a) all of the Preferred Shares held by each
of the Preferred Holders shall be converted into the number of Conversion Shares set forth opposite the Preferred Holder’s
name under the column “Conversion Shares” on Exhibit A and/or
Exhibit B attached hereto, as applicable, in accordance with Section 4(b)
of the Certificates of Designation, and (b) the Company shall issue to each of the Preferred Holders the number of Conversion Shares
set forth opposite the Preferred Holder’s name under the column “Conversion Shares” on Exhibit
A and/or Exhibit B attached hereto, as applicable, in accordance
with Section 4(c) of the Certificates of Designation (clauses (a) and (b), together, the “Conversion”).

 

2.                 
Cancellation of the Preferred Shares. Each of the Preferred Holders unconditionally acknowledges, affirms and agrees
that, simultaneously with the Conversion and delivery to the Preferred Holder of the applicable number of Conversion Shares, such
Preferred Holder’s Preferred Shares shall be deemed cancelled, null and void, and the Company shall have no further obligation
to such Preferred Holder with respect to such Preferred Shares or the Series A Preferred Certificate of Designation or Series B
Preferred Certificate of Designation, as applicable.

 

3.                 
Payment of Accrued Dividends in Common Stock. The Company and the Preferred Holders hereby acknowledge and agree
that, as of the date hereof and upon conversion of the Preferred Shares into Common Stock pursuant to this Agreement, the Series
A Accrued Dividends equal $3,681,591.90 and the Series B Accrued Dividends equal $793,236.17. The Preferred Holders forever waive
the right to receive any dividends on the Preferred Shares other than the Accrued Dividends. The Company and the Preferred Holders
hereby further acknowledge and agree that, in lieu of receiving cash for the Accrued Dividends, the Company will issue to each
Preferred Holder such number of shares of Common Stock as is equal to the quotient obtained by dividing: (a) the amount of Accrued
Dividends on such Preferred Holder’s Preferred Shares as set forth opposite the Preferred Holder’s name under the column
“Accrued Dividends” on Exhibit A and/or Exhibit
B attached hereto, as applicable, by (b) $1.00, rounded down to the nearest whole share. For avoidance of doubt, the
total number of shares issuable to each Preferred Holder in lieu of the Accrued Dividends is set forth opposite each Preferred
Holder’s name under the column “Dividend Shares” on Exhibit A
and/or Exhibit B attached hereto, as applicable. Each of the Preferred Holders
unconditionally acknowledges, affirms and agrees that the Dividend Shares are being issued to such Preferred Holder in full satisfaction
of such Preferred Holder’s Accrued Dividends, and that, simultaneously with the delivery to such Preferred Holder of the
applicable number of Dividend Shares, the Accrued Dividends shall be deemed cancelled, null and void, and the Company shall have
no further obligation to such Preferred Holder with respect to any Accrued Dividends.

 

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4.                 
Restricted Securities. Each Preferred Holder understands, acknowledges and agrees that the Conversion Shares and
the Dividend Shares will not be registered at the time of their issuance under the Securities Act of 1933, as amended, and may
only be disposed of in compliance with state and federal securities laws. The certificates representing the Conversion Shares and
the Dividend Shares shall bear a legend to such effect.

 

5.                 
Representations and Warranties of the Company. The Company hereby represents and warrants to each of the Preferred
Holders as follows:

 

(a)               
The Conversion Shares and the Dividend Shares have been duly authorized and, when issued in accordance with the terms of
this Agreement, will be duly and validly issued, fully paid and non-assessable.

 

(b)              
The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware;
and has the corporate power and authority to execute, deliver and perform its obligations under this Agreement.

 

(c)               
This Agreement has been duly executed and delivered by the Company and constitutes the legal, valid and binding obligation
of the Company enforceable against the Company in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting the enforcement
of creditors’ rights generally or by general principles of equity relating to enforceability (regardless of whether considered
in a proceeding at law or in equity).

 

6.                 
 Representations and Warranties of the Preferred Holders. Each of the Preferred Holders hereby represents and warrants
to the Company as follows:

 

(a)               
The Preferred Holder is a limited liability company duly organized, validly existing and in good standing under the laws
of the Commonwealth of Virginia and has the limited liability company power and authority to execute, deliver and perform its obligations
under this Agreement.

 

(b)              
This Agreement has been duly executed and delivered by the Preferred Holder and constitutes the legal, valid and binding
obligation of the Preferred Holder, enforceable against the Preferred Holder in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws
affecting the enforcement of creditors’ rights generally or by equitable principles relating to enforceability (regardless
of whether considered in a proceeding at law or in equity).

 

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(c)               
The Preferred Holder is the lawful owner of, and has good and marketable title to, the number of shares of Series A Preferred
and/or Series B Preferred set forth opposite the Preferred Holder’s name on Exhibit
A and/or Exhibit B attached hereto, as applicable, free and clear
of any pledge, hypothecation, right of others, claim, charge, security interest, encumbrance, adverse claim or interest, option,
lien, put or call right, right of first offer or refusal, voting right, preemptive right, restrictions on transfer or other similar
restrictions.

 

7.                 
Miscellaneous.

 

(a)               
Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended
to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter
contained herein. There are no restrictions, promises, representations, warranties or undertakings, other than those set forth
or referred to herein. This Agreement supersedes all prior agreements and understandings between the parties with respect to such
subject matter.

 

(b)              
Amendment. Any amendment, supplement or modification of or to any provision of this Agreement, any waiver of any
provision of this Agreement, and any consent to any departure by the Company or the Preferred Holders from the terms of any provision
of this Agreement, shall be effective (i) only if it is made or given in writing and signed by the Company and the Preferred Holders,
and (ii) only in the specific instance and for the specific purpose for which made or given.

 

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

 

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

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

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In
Witness Whereof, the parties hereto have executed this Conversion Agreement
as of the date first written above.

 

	 	COMPANY:
	 	 
	 	Transgenomic, Inc.
	 	 
	 	By: 	/s/ Paul Kinnon
	 	Name: Paul Kinnon
	 	Title: President and Chief Executive Officer
	 	 
	 	 
	 	PREFERRED HOLDERS:
	 	 
	 	Third Security Incentive 2010 LLC 
	 	 
	 	By:	/s/ Randal J. Kirk
	 	Name: Randal J. Kirk
	 	Title: Manager, Third Security, LLC, which is the Manager of Third Security Incentive 2010 LLC
	 	 
	 	Third Security Staff 2010 LLC
	 	 
	 	By: 	/s/ Randal J. Kirk
	 	Name: Randal J. Kirk
	 	Title: Manager, Third Security, LLC, which is the Manager of Third Security Staff 2010 LLC
	 	 
	 	Third Security Senior Staff 2008 LLC
	 	 
	 	By: 	/s/ Randal J. Kirk
	 	Name: Randal J. Kirk
	 	Title: Manager, Third Security, LLC, which is the Manager of Third Security Senior Staff 2008 LLC
	 	 
	 	Third Security Staff 2014 LLC 
	 	 
	 	By: 	/s/ Randal J. Kirk
	 	Name: Randal J. Kirk
	 	Title: Manager, Third Security, LLC, which is the Manager of Third Security Staff 2014 LLC

 

 

[Signature
Page to Conversion Agreement]

 

     

     

    

 

Exhibit
A

 

Schedule
of Series A Preferred Holders

 

	Name of Preferred Holder	Number of Shares of Series A Preferred	Conversion Shares	Accrued Dividends	Dividend Shares	Total Common Shares Issuable
	Third Security Incentive 2010 LLC	517,241	172,413	$736,318.38	736,318	908,731
	Third Security Staff 2010 LLC	1,034,482	344,822	$1,472,636.76 	1,472,636	1,817,458
	Third Security Senior Staff 2008 LLC	1,034,482	344,822	$1,472,636.76 	1,472,636	1,817,458
	TOTAL:	2,586,205	862,057	$3,681,591.90	3,681,590	4,543,647

 

    A-1

     

    

 

Exhibit
B

 

Schedule
of Series B Preferred Holders

 

	Name of Preferred Holder	Number of Shares of Series B Preferred	Conversion Shares	Accrued Dividends	Dividend Shares	Total Common Shares Issuable
	Third Security Incentive 2010 LLC	288,659	288,659	$158,647.23	158,647	447,306
	Third Security Senior Staff 2008 LLC	577,319	577,319	$317,294.47	317,294	894,613
	Third Security Staff 2014 LLC	577,319	577,319	$317,294.47	317,294	894,613
	TOTAL:	1,443,297	1,443,297	$793,236.17 	793,235	2,236,532

 

    B-1Exhibit 10.2

 

LIMITED WAIVER AND EIGHTH AMENDMENT TO

LOAN AND SECURITY AGREEMENT

(TERM LOAN AND REVOLVING LOAN)

 

This LIMITED WAIVER
AND EIGHTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of January 6, 2016 (the
“Effective Date”), is entered into by and among THIRD SECURITY SENIOR STAFF 2008 LLC, as administrative
agent (the “Agent”), and a lender, the other lenders party hereto (collectively, the “Lenders”),
and TRANSGENOMIC, INC., a Delaware corporation (the “Borrower”).

 

WHEREAS, the
Borrower, the Agent and the Lenders are parties to that certain Loan and Security Agreement (Term Loan and Revolving Loan), dated
as of March 13, 2013 (as amended, restated, supplemented, or otherwise modified from time to time, the “Loan Agreement”),
whereby the Lenders have extended to the Borrower a loan facility pursuant to the Loan Agreement on the terms and subject to the
conditions contained therein;

 

WHEREAS, the
Borrower has informed the Agent that it has sold (i) the Borrower’s facilities located in Glasgow, Scotland and on Irvington
Road in Omaha, Nebraska, including all of the Borrower’s stock, inventory and raw materials located at such facilities, and
(ii) all of the ordinary shares of Transgenomic Limited, a company registered under the laws of England and Wales and a wholly-owned
subsidiary of the Borrower (the assets described in (i) and (ii) collectively, the “GAP Assets”);

 

WHEREAS, the
Borrower has informed the Agent that the sale of the GAP Assets has resulted in a reduction in the Borrower’s revenues below
the required minimum revenue levels set forth in Section 6.9(b) of the Loan Agreement for the six month period ended October 31,
2015 and, accordingly, an Event of Default has occurred and continues to exist under Section 8.2(a) of the Loan Agreement as a
result (the “Revenue Event of Default”);

 

WHEREAS, Events
of Default also exist under Section 8.2(a) of the Loan Agreement as a result of the Borrower’s failure to: (i) timely provide
Monthly Financial Statements for the months of October 2015 and November 2015 in accordance with Section 6.2(a) of the Loan Agreement
and (ii) timely provide a Compliance Certificate for the months of October 2015 and November 2015 in accordance with Section 6.2(b)
of the Loan Agreement (collectively, with the Revenue Event of Default, the “Specified Events of Default”);

 

WHEREAS, (i) on
December 10, 2015, the Lenders delivered a Reservation of Rights Letter to the Borrower and provided, at the request of the Borrower,
an Advance to the Borrower in the amount of $250,000 and (ii) on December 29, 2015, the Lenders delivered a Reservation of Rights
Letter to the Borrower and provided, at the request of the Borrower, an Advance to the Borrower in the amount of $500,000 (collectively,
such Advances being referred to as the “Overadvance”); and

 

WHEREAS, the
Borrower has requested that the Agent and the Lenders, and the Agent and the Lenders have agreed to, subject to the terms and conditions
set forth in this Amendment, (i) waive the Specified Events of Default, (ii) accept repayment in full of the Overadvance by the
Borrower and (iii) amend certain provisions of the Loan Agreement, in each case, effective as of the Effective Date.

 

     

     

    

 

NOW, THEREFORE,
in consideration of the foregoing premises, and other good and valuable consideration, the receipt and legal sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.Definitions.
Unless otherwise defined herein, capitalized terms used herein shall have the meanings assigned to them in the Loan Agreement.

 

2.Limited Waiver.
Subject to the terms, and the timely satisfaction of each of the conditions precedent in Section 4 of this Amendment, the
Agent and the Lenders hereby waive the Specified Events of Default.

 

3.Amendments
to the Loan Agreement. Effective as of the Effective Date, the Loan Agreement is amended as follows:

 

(a)Section
2.2(b) of the Loan Agreement is amended by deleting the existing text of such subsection in its entirety and inserting, in lieu
thereof, the following:

 

“Commencing
on April 1, 2015 and continuing on the Payment Date of each successive month thereafter through and including the Maturity Date,
Borrower shall make monthly payments of interest to each Lender in accordance with its respective Pro Rata Share, in arrears, and
calculated as set forth in Section 2.3. All unpaid principal and accrued interest with respect to the Term Loan is due and payable
in full on the Maturity Date. The Term Loan may be prepaid only in accordance with Sections 2.2(c) and 2.2(d).”

 

(b)Section
6.9(b) of the Loan Agreement is amended by deleting the existing text of such subsection in its entirety and inserting, in lieu
thereof, the following:

 

Minimum
Net Revenue. Achieve at least the amounts set forth below during the applicable periods.

 

	Six Month Period Ending	Net Revenue
	March 31, 2013	$14,666,000
	April 30, 2013	$15,275,000
	May 31, 2013	$14,955,000
	June 30, 2013	$14,679,000
	July 31, 2013	$14,296,000
	August 31, 2013	$14,096,000
	September 30, 2013	$13,806,000
	October 31, 2013	$13,022,000
	November 30, 2013	$12,812,000
	December 31, 2013	$11,899,000
	January 31, 2014	$11,866,000

 

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	February 28, 2014	$10,895,000
	March 31, 2014	$10,690,000
	April 30, 2014	$10,781,000
	May 31, 2014	$10,871,000
	June 30, 2014	$11,592,000
	July 31, 2014	$12,377,000
	August 31, 2014	$13,161,000
	September 30, 2014	$12,965,000
	October 31, 2014	$12,937,000
	November 30, 2014	$12,345,000
	December 31, 2014	$12,885,000
	January 31, 2015	$11,547,000
	February 28, 2015	$11,968,000
	March 31, 2015	$11,669,000
	April 30, 2015	$12,638,000
	May 31, 2015	$13,608,000
	June 30, 2015	$13,158,000
	July 31, 2015	$13,200,000
	August 31, 2015	$12,800,000
	September 30, 2015	$12,400,000
	October 31, 2015	$12,000,000
	November 30, 2015	$10,800,000
	December 31, 2015	$9,000,000
	January 31, 2016	$8,400,000
	February 29, 2016	$7,800,000
	March 31, 2016	$7,000,000
	April 30, 2016	$6,800,000
	May 31, 2016	$6,800,000
	June 30, 2016	$6,800,000
	July 31, 2016	$6,800,000
	August 31, 2016	$6,800,000
	September 30, 2016	$6,800,000
	October 31, 2016	$6,800,000
	November 30, 2016	$6,800,000
	December 31, 2016	$6,800,000

  

For each
monthly period in each fiscal year ending after December 31, 2016, the minimum net revenue, measured on a trailing six-month basis,
shall be based on an amount that is equal to eighty-five percent (85%) of the board approved Annual Financial Projections applicable
to such monthly periods in such fiscal year.

 

(c)Section
14.1 of the Loan Agreement is amended by deleting the existing text of the definitions of “Borrowing Base” and “Maturity
Date” in their entirety and inserting, in lieu thereof, the following:

 

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“Borrowing
Base” is the product of the Advance Rate multiplied by the Eligible Accounts; provided, however, that Agent
has the right to adjust the foregoing in its good faith business judgment to mitigate the impact of events, conditions, contingencies,
or risks which may adversely affect the Collateral or its value; and provided further, that, the proceeds for any sale of the Borrower's
intellectual property shall not be included for purposes of calculating the Borrowing Base; provided, further, that
until March 31, 2016, the Borrowing Base shall be equal to the Revolving Line.

 

“Maturity
Date” means November 1, 2017.

 

4.Conditions
Precedent. The effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent:

 

(a)receipt
by the Agent of a copy of this Amendment, duly executed and delivered by the Borrower and the Required Lenders;

 

(b)receipt
by the Agent, for the account of each Lender, of the Overadvance repayment, resulting in the outstanding principal balance of the
Revolving Loan being $2,275,000.00 as of the Effective Date;

 

(c)receipt
by the Agent of any other documents or agreements reasonably requested by the Agent in connection with the transactions contemplated
by this Amendment;

 

(d)the
truth and accuracy of the representations and warranties contained in Section 6 of this Amendment; and

 

(e)receipt
by the Lenders and the Agent of any fees and expenses due and payable on or before the Effective Date under the Loan Agreement
or this Amendment.

 

5.Reaffirmation.
The Borrower hereby reaffirms each of the agreements, covenants and undertakings set forth in the Loan Agreement and each and every
other Loan Document as of the Effective Date as if the Borrower was making said agreements, covenants and undertakings as of the
Effective Date.

 

6.Representations,
Warranties, Covenants and Acknowledgments. To induce the Agent and Lenders to enter into this Amendment, the Borrower hereby:

 

(a)represents
and warrants that (i) as of the Effective Date, all of the representations and warranties made or deemed to be made under the Loan
Documents are true and correct in all material respects (other than any representation or warranty that is qualified by materiality
or Material Adverse Effect, in which case such representation or warranty is true and correct in all respects) on and as of the
Effective Date to the same extent as though made on and as of the Effective Date, except to the extent such representations and
warranties specifically relate to an earlier date, in which case such representations and warranties were true and correct in all
material respects (other than any representation or warranty that is qualified by materiality or Material Adverse Effect, in which
case such representation or warranty was true and correct in all respects) on and as of such earlier date; (ii) as of the Effective
Date, after giving effect to the terms of this Amendment, there exists no Default or Event of Default under the Loan Agreement
or any of the other Loan Documents; (iii) the Borrower has the corporate power and is duly authorized to enter into, deliver and
perform this Amendment; and (iv) this Amendment is the legal, valid and binding obligation of the Borrower enforceable against
the Borrower in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability;

 

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(b)acknowledges
and agrees that (i) this Amendment does not and shall not create (nor shall the Borrower or any of its Subsidiaries rely upon the
existence of or claim or assert that there exists) any obligation of the Agent or any Lender to consider or agree to any further
consent, waiver or amendment with respect to any Loan Document and, in the event that the Agent or any Lender subsequently agrees
to consider any further consent, waiver or amendment with respect to any Loan Document, neither this Amendment nor any other conduct
of the Agent or any Lender shall be of any force or effect on the Agent’s or such Lender’s consideration or decision
with respect thereto, and neither the Agent nor any Lender shall have any further obligation whatsoever to consider or agree to
any further consent, waiver or amendment with respect to any Loan Document; and (ii) except as expressly set forth in this Amendment,
the Agent and each Lender reserves all of their respective rights pursuant to the Loan Agreement and all other Loan Documents;

 

(c)further
acknowledges and agrees that the Agent’s and Lenders’ agreement to waive and amend the specific matters addressed in
this Amendment, do not and shall not create (nor shall the Borrower or any of its Subsidiaries rely upon the existence of or claim
or assert that there exists) any obligation of the Agent or any Lender to consider or agree to any further waivers, consents or
amendments and, in the event that the Agent or any Lender subsequently agrees to consider any further waivers, consents or amendments,
neither this Amendment nor any other conduct of the Agent or any Lender shall be of any force or effect on the Agent’s or
any Lender’s consideration or decision with respect to any such requested consent;

 

(d)further
acknowledges and agrees that no right of offset, defense, counterclaim, claim, cause of action or objection in favor of the Borrower
against any Lender exists arising out of or with respect to (i) this Amendment, the Loan Agreement or any other Loan Document,
or (ii) any other documents now or heretofore evidencing, securing or in any way relating to the foregoing; and

 

(e)further
acknowledges and agrees that this Amendment shall be deemed a Loan Document for all purposes under the Loan Agreement and the other
Loan Documents.

 

7.Effect of
Non-Compliance. To the extent any representation or warranty made herein shall be untrue in any material respect, such occurrence
shall be deemed an Event of Default pursuant to the terms of the Loan Agreement and the other Loan Documents.

 

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8.Release; Indemnitees.

 

(a)In
further consideration of the execution of this Amendment by the Agent and each Lender, the Borrower, individually and on behalf
of its successors (including, without limitation, any trustees acting on behalf of the Borrower and any debtor-in-possession with
respect to the Borrower), assigns, subsidiaries and Affiliates, hereby forever releases the Agent, each Lender and their respective
successors, assigns, parents, subsidiaries, Affiliates, officers, employees, directors, agents and attorneys (collectively, the
“Releasees”) from any and all debts, claims, demands, liabilities, responsibilities, disputes, causes, damages,
actions and causes of actions (whether at law or in equity) and obligations of every nature whatsoever, whether liquidated or unliquidated,
whether known or unknown, matured or unmatured, fixed or contingent (collectively, “Claims”) that the Borrower
may have against the Releasees which arise from or relate to any actions which the Releasees may have taken or omitted to take
in connection with the Loan Agreement or the other Loan Documents prior to the Effective Date, including, without limitation, with
respect to the Obligations, any Collateral, the Loan Agreement, any other Loan Document and any third parties liable in whole or
in part for the Obligations. This provision shall survive and continue in full force and effect whether or not the Borrower shall
satisfy all other provisions of this Amendment, the Loan Documents or the Loan Agreement, including payment in full of all Obligations.

 

(b)The
Borrower hereby further agrees to indemnify and hold the Releasees harmless with respect to any and all liabilities, obligations,
losses, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever incurred by the
Releasees, or any of them, whether direct, indirect or consequential, as a result of or arising from or relating to any proceeding
by, or on behalf of any Person, including, without limitation, officers, directors, agents, trustees, creditors, partners or shareholders
of the Borrower or any parent, Subsidiary or Affiliate of the Borrower, whether threatened or initiated, asserting any claim for
legal or equitable remedy under any statutes, regulation or common law principle arising from or in connection with the negotiation,
preparation, execution, delivery, performance, administration and enforcement of this Amendment. The foregoing indemnity shall
survive the payment in full of the Obligations and the termination of this Amendment, the Loan Agreement and the other Loan Documents.

 

9.Effect; Relationship
of Parties. Except as expressly modified hereby, the Loan Agreement and each other Loan Document shall be and remain in full
force and effect as originally written, and shall constitute the legal, valid, binding and enforceable obligations of the Borrower
to the Agent and Lenders. The relationship of the Agent and Lenders, on the one hand, and the Borrower, on the other hand, has
been and shall continue to be, at all times, that of creditor and debtor and not as joint venturers or partners. Nothing contained
in this Amendment, any instrument, document or agreement delivered in connection herewith or in the Loan Agreement or any of the
other Loan Documents shall be deemed or construed to create a fiduciary relationship between or among the parties.

 

10.Expenses.
The Borrower shall pay the Agent all of its actual, documented and reasonable costs and expenses in connection with the preparation,
negotiation, execution and enforcement of this Amendment in accordance with the Loan Agreement (including, without limitation,
all actual, documented and reasonable fees, expenses and disbursements of counsel to the Agent).

 

    6 

     

    

 

11.Miscellaneous.
This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of
which, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute
but one and the same instrument. This Amendment shall be binding upon and inure to the benefit of the successors and permitted
assigns of the parties hereto. California law governs this Amendment, without regard to principles of conflicts of law. This Amendment
embodies the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes
all prior oral or written negotiations, agreements and understandings of the parties with respect to the subject matter hereof.
Time is of the essence of this Amendment.

 

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    7 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be executed as of the Effective Date.

 

BORROWER:

 

	TRANSGENOMIC, INC.	 
	 	 	 
	By:	/s/ Paul Kinnon	 
	Name: 	Paul Kinnon	 
	Title:	CEO & President	 
	 	 	 
	AGENT:	 
	 	 	 
	THIRD SECURITY SENIOR STAFF 2008 LLC	 
	As Agent for Lenders	 
	 	 	 
	 	 	 
	By 	/s/ Randal J. Kirk	 
	Name: 	Randal J. Kirk	 
	Title: 	Manager, Third Security, LLC, which is	 
	 	the Manager of Third Security Senior 	 
	 	Staff 2008 LLC	 
	 	 	 
	LENDERS:	 
	 	 	 
	THIRD SECURITY SENIOR STAFF 2008 LLC	 
	 	 	 
	By 	/s/ Randal J. Kirk	 
	 	Randal J. Kirk	 
	 	Manager, Third Security, LLC, which is the	 
	 	Manager of Third Security Senior Staff 2008 LLC	 
	 	 	 
	THIRD SECURITY STAFF 2010 LLC	 
	 	 	 
	By 	/s/ Randal J. Kirk	 
	 	Randal J. Kirk	 
	 	Manager, Third Security, LLC, which is the	 
	 	Manager of Third Security Staff 2010 LLC	 
	 	 	 
	THIRD SECURITY INCENTIVE 2010 LLC	 
	 	 	 
	By 	/s/ Randal J. Kirk	 
	 	Randal J. Kirk	 
	 	Manager, Third Security, LLC, which is the	 
	 	Manager of Third Security Incentive 2010 LLC	 

 

[Signature
Page to Eighth Amendment]

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