{"id":40943,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/convertible-promissory-note-transgenomic-inc.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"convertible-promissory-note-transgenomic-inc","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/finance\/convertible-promissory-note-transgenomic-inc.html","title":{"rendered":"Convertible Promissory Note &#8211; Transgenomic Inc."},"content":{"rendered":"<p>NEITHER THIS NOTE NOR THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE<br \/>\nHAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE<br \/>\n&#8220;<strong><em>ACT<\/em><\/strong>&#8220;), OR UNDER THE SECURITIES LAWS OF APPLICABLE<br \/>\nSTATES. THIS NOTE AND SUCH SECURITIES ARE SUBJECT TO RESTRICTIONS ON<br \/>\nTRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS<br \/>\nPERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO<br \/>\nREGISTRATION UNDER SUCH LAWS OR AN EXEMPTION FROM SUCH REGISTRATION<br \/>\nREQUIREMENTS. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE<br \/>\nFINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER<br \/>\nOF THIS NOTE AND ANY SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE MAY<br \/>\nREQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER<br \/>\nTO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT<br \/>\nAND ALL APPLICABLE STATE SECURITIES LAWS.<\/p>\n<\/p>\n<p align=\"center\"><strong>CONVERTIBLE PROMISSORY NOTE<\/strong><\/p>\n<p align=\"center\">\n<p align=\"center\"><strong>TRANSGENOMIC, INC.<\/strong><\/p>\n<p align=\"center\">\n<\/p>\n<table style=\"width: 100%;\" width=\"100%\" cellpadding=\"0\" class=\" \" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"70%\" valign=\"top\">\n<p><strong>Principal Amount:<\/strong> $1,200,000<\/p>\n<\/td>\n<td width=\"15%\" valign=\"top\">\n<p><strong>Issue Date:<\/strong><\/p>\n<\/td>\n<td width=\"15%\" valign=\"top\">\n<p align=\"right\">December 30, 2011<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"70%\" valign=\"top\"><\/td>\n<td width=\"15%\" valign=\"top\">\n<p><strong>Maturity Date:<\/strong><\/p>\n<\/td>\n<td width=\"15%\" valign=\"top\">\n<p align=\"right\">March 31, 2012<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>For value received, <strong>Transgenomic, Inc.<\/strong>, a Delaware<br \/>\ncorporation (the &#8220;<strong><em>Company<\/em><\/strong>&#8220;), with principal offices at<br \/>\n12325 Emmet Street, Omaha, Nebraska 68164, hereby promises to pay in lawful<br \/>\nmoney of the United States to <strong>Third Security Senior Staff 2008<br \/>\nLLC<\/strong>, or permitted registered assigns (&#8220;<strong><em>Registered<br \/>\nHolder<\/em><\/strong>&#8220;), the principal amount set forth above, together with<br \/>\nsimple interest on the unpaid principal balance at a rate equal to sixteen<br \/>\npercent (16%) per annum, computed on the basis of the actual number of days<br \/>\nelapsed and a year of 365 days from the &#8220;<strong><em>Issue Date<\/em><\/strong>&#8221;<br \/>\nof this Note set forth above, until the principal amount and all interest<br \/>\naccrued thereon are paid. Provided that this Note has not been earlier converted<br \/>\ninto Conversion Securities pursuant to the terms and conditions of Section 2,<br \/>\nthe unpaid principal amount of this Note, together with any then unpaid accrued<br \/>\ninterest (collectively, the &#8220;<strong><em>Note Amount<\/em><\/strong>&#8220;), shall be<br \/>\ndue and payable by the Company on the Maturity Date or such earlier time as<br \/>\nprovided for in Section 2; provided, further, however, that notwithstanding the<br \/>\nforegoing or the provisions of Section 2, the Note Amount shall be due and<br \/>\npayable upon the occurrence of an Event of Default (as defined below).<\/p>\n<\/p>\n<p>This Note is executed and delivered by the Company pursuant to the terms and<br \/>\nconditions of that certain Convertible Promissory Note Purchase Agreement by and<br \/>\namong the Company, Registered Holder and certain other parties specified<br \/>\ntherein, dated as of the date hereof (as amended, restated, amended and<br \/>\nrestated, supplemented or otherwise modified from time to time, the<br \/>\n&#8220;<strong><em>Purchase Agreement<\/em><\/strong>&#8220;), and is subject to the terms and<br \/>\nconditions of the Purchase Agreement. The following, together with the Purchase<br \/>\nAgreement, is a statement of the rights of Registered Holder and the conditions<br \/>\nto which this Note is subject, and to which Registered Holder hereof, by the<br \/>\nacceptance of this Note, agrees:<\/p>\n<\/p>\n<\/p>\n<hr>\n<\/p>\n<p>1. <strong><u>DEFINITIONS<\/u><\/strong>. The following definitions shall apply<br \/>\nfor all purposes of this Note:<\/p>\n<\/p>\n<p>(a) <strong>&#8220;<em>Common Stock<\/em>&#8221; <\/strong>means shares of the Company153s<br \/>\ncommon stock, $0.01 par value per share.<\/p>\n<\/p>\n<p><strong>(b)<\/strong> <strong><em>&#8220;Conversion Price&#8221; <\/em><\/strong>means the<br \/>\nper equity security price paid by the investors for the Company153s equity<br \/>\nsecurities issued in the Qualified Financing.<\/p>\n<\/p>\n<p>(c) <strong>&#8220;Conversion Securities&#8221;<\/strong> means equity securities of the<br \/>\nCompany of the same class(es) and series as the equity securities of the Company<br \/>\nsold in the Qualified Financing which, for the avoidance of doubt, shall include<br \/>\nany warrant(s) and\/or other securities convertible into or exercisable for<br \/>\ncapital stock of the Company issued in the Qualified Financing.<\/p>\n<\/p>\n<p>(d) <strong><em>&#8220;Maturity Date&#8221;<\/em><\/strong> means March 31, 2012.<\/p>\n<\/p>\n<p>(e) <strong><em>&#8220;Qualified Financing&#8221;<\/em><\/strong> means the Company153s first<br \/>\nsale or issuance of its equity securities after the date hereof in one<br \/>\ntransaction or a series of related transactions (which, for the avoidance of<br \/>\ndoubt, may include warrant(s) or other securities convertible into or<br \/>\nexercisable for capital stock of the Company) for an aggregate purchase price<br \/>\npaid in cash (not including the Note Amount converted pursuant to Section 2) of<br \/>\nat least $3,000,000.<\/p>\n<\/p>\n<p>(f) <strong><em>&#8220;Note&#8221;<\/em><\/strong> means this Convertible Promissory Note<br \/>\n(and all Convertible Promissory Notes issued in exchange, transfer or<br \/>\nreplacement hereof).<\/p>\n<\/p>\n<p><strong>2.<\/strong> <strong><u>CONVERSION, PAYMENT AND TERMINATION OF<br \/>\nRIGHTS<\/u><\/strong><u>.<\/u><\/p>\n<\/p>\n<p><strong>(a) <u>Conversion or Payment<\/u><\/strong><\/p>\n<\/p>\n<p>(i) <strong><u>Qualified Financing<\/u><\/strong>. At the closing of the<br \/>\nQualified Financing the Note Amount shall automatically, and without further<br \/>\naction or consent of Registered Holder, convert into that number of Conversion<br \/>\nSecurities that results from dividing the Note Amount by the applicable<br \/>\nConversion Price (plus, for the avoidance of doubt, any warrant(s) and\/or other<br \/>\nequity securities convertible into or exercisable for capital stock of the<br \/>\nCompany that would be issuable in connection with an investment in the Qualified<br \/>\nFinancing of the Note Amount). Registered Holder will deliver the original Note<br \/>\nto the Company and will execute and deliver to the Company at the closing as an<br \/>\n&#8220;investor&#8221; thereunder such stock purchase agreement, investors153 rights agreement<br \/>\nand\/or any other agreements as are entered into by the investors in the<br \/>\nQualified Financing generally; provided that the Company agrees such agreements<br \/>\nshall be in a form acceptable to Registered Holder acting reasonably.<\/p>\n<\/p>\n<p>(ii) <strong><u>Maturity Date<\/u><\/strong>. Provided that this Note has not<br \/>\npreviously been converted or paid pursuant to Section 2.1(a), the Note Amount<br \/>\nshall be due and payable by the Company on the Maturity Date.<\/p>\n<\/p>\n<p>(iii) <strong><u>Termination of Rights<\/u><\/strong>. All rights with respect<br \/>\nto this Note shall terminate upon the issuance of the Conversion Securities to<br \/>\nRegistered Holder upon conversion of the Note Amount, whether or not this Note<br \/>\nhas been surrendered and whether or not all stock purchase, investors153 rights,<br \/>\nco-sale, voting or other agreements have been executed and delivered by<br \/>\nRegistered Holder to the Company. Notwithstanding the foregoing, Registered<br \/>\nHolder agrees to surrender this Note to the Company for cancellation as soon as<br \/>\nis possible following conversion of this Note. Registered Holder shall not be<br \/>\nentitled to receive the stock certificate and\/or other instruments representing<br \/>\nthe Conversion Securities to be issued upon conversion of this Note until the<br \/>\noriginal of this Note is surrendered to the Company or an affidavit of loss is<br \/>\nexecuted and provided to the Company and the agreements referenced in this<br \/>\nSection 2 have been executed and delivered to the Company.<\/p>\n<\/p>\n<p align=\"center\">&#8211; 2 &#8211;<\/p>\n<p align=\"center\">\n<hr>\n<p>3. <strong><u>ISSUANCE OF CONVERSION SECURITIES<\/u><\/strong><u>.<\/u> Subject<br \/>\nto Section 2, as soon as practicable after conversion of this Note, the Company<br \/>\nat its expense will cause to be issued in the name of and delivered to<br \/>\nRegistered Holder, a stock certificate or stock certificates and\/or additional<br \/>\ninstruments for the Conversion Securities to which Registered Holder shall be<br \/>\nentitled upon such conversion (bearing such legends as may be required by<br \/>\napplicable United States and state and federal securities laws in the reasonable<br \/>\nopinion of legal counsel of the Company, by the Company153s Certificate of<br \/>\nIncorporation or Bylaws, or by any agreement between the Company and Registered<br \/>\nHolder). Such conversion shall be deemed to have been made on the date of the<br \/>\nclosing of the Qualified Financing and Registered Holder shall be treated for<br \/>\nall purposes as the record holder of such Conversion Securities as of such date.<br \/>\nNo fractional shares will be issued upon conversion of this Note. If upon any<br \/>\nconversion of this Note, a fraction of a share would otherwise result, then in<br \/>\nlieu of such fractional share the Company will pay the cash value of that<br \/>\nfractional share, calculated on the basis of the applicable Conversion Price.\n<\/p>\n<\/p>\n<p>4. <strong><u>NO RIGHTS AS STOCKHOLDER<\/u><\/strong><u>.<\/u> This Note does<br \/>\nnot entitle Registered Holder to any voting rights or other rights as a<br \/>\nstockholder of the Company, unless and until (and only to the extent that) this<br \/>\nNote is actually converted into Conversion Securities in accordance with its<br \/>\nterms. In the absence of conversion of this Note, no provisions of this Note,<br \/>\nand no enumeration herein of the rights or privileges of Registered Holder,<br \/>\nshall cause Registered Holder to be a stockholder of the Company for any<br \/>\npurpose.<\/p>\n<\/p>\n<p>5. <strong><u>DEFAULT<\/u><\/strong>.<\/p>\n<\/p>\n<p>(a) An <strong><em>&#8220;Event of Default&#8221;<\/em><\/strong> will be deemed to have<br \/>\noccurred upon any of the following events:<\/p>\n<\/p>\n<p>(i) the Company153s failure to pay to Registered Holder any amount of principal<br \/>\nor interest when and as due under this Note, upon receipt of written notice of<br \/>\nsuch failure from Registered Holder;<\/p>\n<\/p>\n<p>(ii) a receiver is appointed for any material part of the Company153s property,<br \/>\nthe Company makes a general assignment for the benefit of creditors, the Company<br \/>\nvoluntarily initiates an action under the U.S. Bankruptcy Code as a debtor, or<br \/>\nthe Company is involuntarily made the subject (as a debtor or alleged debtor) of<br \/>\nan action under the U.S. Bankruptcy Code or becomes the subject of any other<br \/>\nbankruptcy or similar proceeding for the general adjustment of its debts, which<br \/>\ninvoluntary action is not terminated or otherwise disposed of without a judgment<br \/>\nagainst the Company within thirty (30) days of its initiation; or<\/p>\n<\/p>\n<p>(iii) the Company breaches any material representation, warranty, covenant or<br \/>\nother term or condition of this Note or the Purchase Agreement, except, in the<br \/>\ncase of a breach of a covenant which is curable, only if such breach continues<br \/>\nfor a period of at least fifteen (15) calendar days.<\/p>\n<\/p>\n<\/p>\n<p align=\"center\">&#8211; 3 &#8211;<\/p>\n<p align=\"center\">\n<hr>\n<\/p>\n<p>(b) From and after the occurrence of an Event of Default, the Note Amount<br \/>\nshall bear simple interest at a rate equal to twenty percent (20%) per annum,<br \/>\nuntil the Note Amount shall have been paid in full. Upon the occurrence of any<br \/>\nEvent of Default, Registered Holder may, at such Registered Holder153s sole<br \/>\noption, declare all or any portion of the Note Amount due and payable in full;<br \/>\nprovided, that in the event of an Event of Default under Section 5.1(b) above,<br \/>\nthe Note Amount and all other sums payable hereunder shall become and be<br \/>\nimmediately due and payable in full without any action on the part of Registered<br \/>\nHolder.<\/p>\n<\/p>\n<p>6. <strong><u>NO PREPAYMENT<\/u><\/strong>. The Company may not, at any time<br \/>\nprior to conversion of this Note under Section 2, prepay in whole or in part the<br \/>\nunpaid balance of this Note, without the prior written consent of Registered<br \/>\nHolder.<\/p>\n<\/p>\n<p>7. <strong><u>WAIVERS<\/u><\/strong>. No failure or delay on the part of<br \/>\nRegistered Holder in the exercise of any power, right or privilege hereunder<br \/>\nshall operate as a waiver thereof, nor shall any single or partial exercise of<br \/>\nany such power, right or privilege preclude other or further exercise thereof or<br \/>\nof any other right, power or privilege. To the maximum extent permitted by law,<br \/>\nthe Company and all endorsers of this Note hereby waive demand, notice,<br \/>\npresentment, protest, notice of dishonor, and all other demands and notices in<br \/>\nconnection with the delivery, acceptance, performance, default or enforcement of<br \/>\nthis Note.<\/p>\n<\/p>\n<p>8. <strong><u>TRANSFER<\/u><\/strong>. This Note, any Conversion Securities<br \/>\nissued upon conversion of this Note and any capital stock of the Company<br \/>\nissuable upon the conversion or exercise thereof may be offered, sold, assigned<br \/>\nor transferred by Registered Holder without the consent of the Company, subject<br \/>\nonly to applicable securities laws. The rights and obligations of the Company<br \/>\nand Registered Holder under this Note shall be binding upon and benefit their<br \/>\nrespective permitted successors, assigns, heirs, administrators and transferees.\n<\/p>\n<\/p>\n<p>9. <strong><u>Representations and Warranties of the Company<\/u><\/strong>. The<br \/>\nCompany hereby represents and warrants to Registered Holder as follows:<\/p>\n<\/p>\n<p>(a) The Company (a) is a corporation duly organized, validly existing and in<br \/>\ngood standing under the laws of the State of Delaware; (b) has all requisite<br \/>\ncorporate power and authority to own and operate its property, to lease the<br \/>\nproperty it operates as lessee and to conduct the business in which it is<br \/>\ncurrently, or is currently proposed to be, engaged; and (c) has the corporate<br \/>\npower and authority to execute, deliver and perform its obligations under this<br \/>\nNote.<\/p>\n<\/p>\n<p>(b) The execution, delivery and performance by the Company of this Note (a)<br \/>\nhave been duly authorized by all necessary corporate action of the Company; (b)<br \/>\ndo not contravene the terms of the Company153s Certificate of Incorporation or the<br \/>\nBylaws; and (c) do not violate, conflict with or result in any breach or<br \/>\ncontravention of, or the creation of any lien under, any contractual obligation<br \/>\nor the judgment, injunction, writ, award, decree or order of any nature of any<br \/>\ngovernmental authority against, or binding upon, the Company, in each case in<br \/>\nthis clause (c), individually or in the aggregate, as would have a material<br \/>\nadverse effect on the Company.<\/p>\n<\/p>\n<p>10. <strong><u>Representations and Warranties of Registered<br \/>\nHolder<\/u><\/strong>. Registered Holder hereby represents and warrants to the<br \/>\nCompany as follows:<\/p>\n<\/p>\n<p>(a) This Note, and the Conversion Securities issuable upon conversion thereof<br \/>\nare being or will be acquired for its own account and with no intention of<br \/>\ndistributing or reselling such securities or any part thereof in any transaction<br \/>\nthat would be in violation of the securities laws of the United States of<br \/>\nAmerica, or any state, without prejudice, however, to the rights of Registered<br \/>\nHolder at all times to sell or otherwise dispose of all or any part of such<br \/>\nsecurities under an effective registration statement under the Act, or under an<br \/>\nexemption from such registration available under the Act. If Registered Holder<br \/>\nshould in the future decide to dispose of any of such securities, Registered<br \/>\nHolder understands and agrees that it may do so only in compliance with the Act<br \/>\nand applicable state securities laws, as then in effect.<\/p>\n<\/p>\n<\/p>\n<p align=\"center\">&#8211; 4 &#8211;<\/p>\n<p align=\"center\">\n<hr>\n<p>(b) Registered Holder understands that this Note and the Conversion<br \/>\nSecurities will not be registered at the time of their issuance under the Act<br \/>\nfor the reason that the sale provided for in this Agreement is exempt pursuant<br \/>\nto Section 4(2) of the Act and that the reliance of the Company on such<br \/>\nexemption is predicated in part on Registered Holder153s representations set forth<br \/>\nherein. Registered Holder represents that it is experienced in evaluating<br \/>\ncompanies such as the Company, has such knowledge and experience in financial<br \/>\nand business matters as to be capable of evaluating the merits and risks of its<br \/>\ninvestment and has the ability to suffer the total loss of its investment.<br \/>\nRegistered Holder further represents that it has had the opportunity to ask<br \/>\nquestions of and receive answers from the Company concerning the terms and<br \/>\nconditions of the offering and to obtain additional information to such<br \/>\nRegistered Holder153s satisfaction.<\/p>\n<\/p>\n<p>(c) Registered Holder is an &#8220;<strong><em>accredited investor<\/em><\/strong>&#8221;<br \/>\nas that term is defined by Rule 501 of Regulation D promulgated under the Act.\n<\/p>\n<\/p>\n<p>11. <strong><u>PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER<br \/>\nCOSTS<\/u><\/strong>. If (a) this Note is placed in the hands of an attorney for<br \/>\ncollection or enforcement or is collected or enforced through any legal<br \/>\nproceeding or Registered Holder otherwise takes action to collect amounts due<br \/>\nunder this Note or to enforce the provisions of this Note, or (b) there occurs<br \/>\nany bankruptcy, reorganization, receivership of the Company or other proceedings<br \/>\naffecting Company creditors153 rights and involving a claim under this Note, then<br \/>\nthe Company shall pay the reasonable costs incurred by Registered Holder for<br \/>\nsuch collection, enforcement or action or in connection with such bankruptcy,<br \/>\nreorganization, receivership or other proceeding, including but not limited to<br \/>\nreasonable attorneys fees and disbursements.<\/p>\n<\/p>\n<p>12. <strong><u>RESERVATION OF STOCK ISSUABLE UPON CONVERSION<\/u><\/strong>.<br \/>\nThe Company hereby agrees that, in connection with soliciting board and\/or<br \/>\nstockholder approval with respect to the Qualified Financing while this Note<br \/>\nremains outstanding, the Company shall reserve a sufficient number of shares of<br \/>\nits capital stock for issuance upon conversion of this Note and the exercise<br \/>\nand\/or conversion of the Conversion Securities, as applicable, and a sufficient<br \/>\nnumber of shares of Common Stock for issuance upon conversion of such shares of<br \/>\ncapital stock, if applicable. In connection therewith, (i) such shares of the<br \/>\nCompany153s capital stock shall be duly authorized and, when issued or delivered<br \/>\nupon (x) conversion of this Note in accordance with the terms of this Note or<br \/>\n(y) exercise or conversion of the Conversion Securities in accordance with their<br \/>\nterms, shall be validly issued, fully paid and non-assessable, and (ii) if<br \/>\napplicable, such shares of Common Stock, when issued or delivered upon the<br \/>\nconversion of such capital stock in accordance with the terms of the Company153s<br \/>\nCertificate of Incorporation, shall be validly issued, fully paid and<br \/>\nnon-assessable.<\/p>\n<\/p>\n<p>13. <strong><u>GOVERNING LAW<\/u><\/strong>. This Agreement shall be construed<br \/>\nand enforced in accordance with, and governed by, the internal laws of the State<br \/>\nof Delaware, excluding that body of law applicable to conflicts of laws.<\/p>\n<\/p>\n<\/p>\n<p align=\"center\">&#8211; 5 &#8211;<\/p>\n<p align=\"center\">\n<hr>\n<p>14. <strong><u>NOTICES<\/u><\/strong>. Any and all notices required or<br \/>\npermitted under this Agreement shall be given in writing and shall be deemed<br \/>\neffectively given (i) at the time of personal delivery, if delivered in person;<br \/>\n(ii) at the time of transmission by facsimile, addressed to the other party at<br \/>\nits facsimile number specified herein (or hereafter modified by subsequent<br \/>\nnotice to the parties hereto), with confirmation of receipt made by printed<br \/>\nconfirmation sheet verifying successful transmission of the facsimile; (iii) at<br \/>\nthe time of transmission by electronic mail, with confirmation of receipt; (iv)<br \/>\none business day after deposit with an express overnight courier for United<br \/>\nStates deliveries, or two business days after deposit with an international<br \/>\nexpress air courier for deliveries outside of the United States, with proof of<br \/>\ndelivery from the courier requested; or (v) three business days after deposit in<br \/>\nthe United. States mail by certified mail (return receipt requested) for United<br \/>\nStates deliveries.<\/p>\n<\/p>\n<p>All notices not delivered personally or by facsimile will be sent with<br \/>\npostage and\/or other charges prepaid and properly addressed to the party to be<br \/>\nnotified at the address or facsimile number as follows, or at such other address<br \/>\nor facsimile number as such other party may designate by one of the indicated<br \/>\nmeans of notice herein to the other parties hereto as follows:<\/p>\n<\/p>\n<p>(i) if to Registered Holder:<\/p>\n<\/p>\n<p>c\/o Third Security, LLC<\/p>\n<\/p>\n<p>1881 Grove Avenue<\/p>\n<\/p>\n<p>Radford, Virginia 24141<\/p>\n<\/p>\n<p>Attention: Tad Fisher<\/p>\n<\/p>\n<p>Facsimile: 540-633-7939<\/p>\n<\/p>\n<\/p>\n<p>with a copy to:<\/p>\n<\/p>\n<\/p>\n<p>Troutman Sanders LLP<\/p>\n<\/p>\n<p>Troutman Sanders Building<\/p>\n<\/p>\n<p>1001 Haxall Point<\/p>\n<\/p>\n<p>Richmond, Virginia 23219<\/p>\n<\/p>\n<p>Attention: John Owen Gwathmey, Esq.<\/p>\n<\/p>\n<p>Facsimile: 804-698-5174<\/p>\n<\/p>\n<\/p>\n<p>(ii) if to the Company:<\/p>\n<\/p>\n<p>Transgenomic, Inc.<\/p>\n<\/p>\n<p>12325 Emmet Street<\/p>\n<\/p>\n<p>Omaha, Nebraska 68164<\/p>\n<\/p>\n<p>Attention: Craig J. Tuttle<\/p>\n<\/p>\n<p>Facsimile: 402-452-5461<\/p>\n<\/p>\n<\/p>\n<p>with a copy to:<\/p>\n<\/p>\n<\/p>\n<p>Husch Blackwell LLP<\/p>\n<\/p>\n<p>1620 Dodge Street; Suite 2100<\/p>\n<\/p>\n<p>Omaha, Nebraska 68102<\/p>\n<\/p>\n<p>Attention: David E. Gardels, Esq.<\/p>\n<\/p>\n<p>Facsimile: 402-964-5050<\/p>\n<\/p>\n<\/p>\n<p align=\"center\">&#8211; 6 &#8211;<\/p>\n<p align=\"center\">\n<hr>\n<p>15. <strong><u>AMENDMENTS AND WAIVERS<\/u><\/strong>. Any term of this Note may<br \/>\nbe amended and the observance of any term of this Note waived (either generally<br \/>\nor in a particular instance and either retroactively or prospectively),<br \/>\nincluding without limitation an amendment to extend the Maturity Date, by<br \/>\nRegistered Holder and the Company. Any amendment or waiver effected in<br \/>\naccordance with this section shall be binding upon any future Registered Holder<br \/>\nof this Note, regardless of whether or not such person consents thereto.<\/p>\n<\/p>\n<p>16. <strong><u>SEVERABILITY<\/u><\/strong>. If one or more provisions of this<br \/>\nNote are held to be unenforceable under applicable law, such provision(s) shall<br \/>\nbe excluded from this Note and the balance of this Note shall be interpreted as<br \/>\nif such provision(s) were so excluded and shall be enforceable in accordance<br \/>\nwith its terms.<\/p>\n<\/p>\n<p align=\"center\"><strong>[Remainder of Page Intentionally Left Blank]<\/strong>\n<\/p>\n<p align=\"center\">\n<\/p>\n<p align=\"center\">&#8211; 7 &#8211;<\/p>\n<p align=\"center\">\n<hr>\n<p><strong>IN WITNESS WHEREOF<\/strong>, the Company has caused this Convertible<br \/>\nPromissory Note to be signed in its name as of the date first written above.<\/p>\n<\/p>\n<\/p>\n<table style=\"width: 50%;\" width=\"50%\" cellpadding=\"0\" class=\" \" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td colspan=\"2\" width=\"50%\" valign=\"top\">\n<p><strong><u>THE COMPANY:<\/u><\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" width=\"50%\" valign=\"top\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" width=\"50%\" valign=\"top\">\n<p><strong>TRANSGENOMIC, INC.<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"4%\" valign=\"top\"><\/td>\n<td width=\"46%\" valign=\"top\"><\/td>\n<\/tr>\n<tr>\n<td width=\"4%\" valign=\"top\">\n<p>By:<\/p>\n<\/td>\n<td width=\"46%\" valign=\"top\">\n<p>\/s\/ Craig J. Tuttle<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"4%\" valign=\"top\"><\/td>\n<td width=\"46%\" valign=\"top\">\n<p>Craig J. Tuttle, Chief Executive Officer<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n<p><strong><em>ACKNOWLEDGED AND AGREED:<\/em><\/strong><\/p>\n<\/p>\n<\/p>\n<p><strong><u>HOLDER<\/u><\/strong><strong>:<\/strong><\/p>\n<\/p>\n<\/p>\n<p><strong>THIRD SECURITY SENIOR STAFF 2008 LLC<\/strong><\/p>\n<\/p>\n<\/p>\n<p>By: Third Security, LLC, Manager<\/p>\n<\/p>\n<\/p>\n<table style=\"width: 40%;\" width=\"40%\" cellpadding=\"0\" class=\" \" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\" valign=\"top\">\n<p>By:<\/p>\n<\/td>\n<td width=\"36%\" valign=\"top\">\n<p>\/s\/ Randal J. Kirk<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"4%\" valign=\"top\"><\/td>\n<td width=\"36%\" valign=\"top\">\n<p>Randal J. Kirk, Manager<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/p>\n<p align=\"center\">&#8211; 8 &#8211;<\/p>\n<p align=\"center\">\n<hr><\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[9096],"corporate_contracts_industries":[9514],"corporate_contracts_types":[9560,9568],"class_list":["post-40943","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-transgenomic-inc","corporate_contracts_industries-technology__test","corporate_contracts_types-finance","corporate_contracts_types-finance__note"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/40943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=40943"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=40943"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=40943"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=40943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}