TRANSGENOMIC INC
EXHIBIT 10.2
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>a2029464zex-10_2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>

<HTML>
<HEAD>
<TITLE> Prepared by MERRILL CORPORATION www.edgaradvantage.com
</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<FONT SIZE=3 ><A HREF="#00CHI4697_3">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<H2><FONT SIZE=2> </FONT></H2>
<P ALIGN="RIGHT"><FONT SIZE=2><B>EXHIBIT 10.2  </B></FONT></P>

<BR>
<P ALIGN="CENTER"><FONT SIZE=2><B> <A NAME="ke4697_escrow_agreement"> </A>
      ESCROW AGREEMENT         </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>THIS ESCROW AGREEMENT</B></FONT><FONT SIZE=2> (this "Escrow Agreement") is entered into as of July&nbsp;21, 2000 by and among </FONT> <FONT SIZE=2><B>STEPHEN F. DWYER,</B></FONT><FONT
SIZE=2> an individual, and a resident of the State of Nebraska, ("Guarantor"), </FONT><FONT SIZE=2><B>SD
ACQUISITION&nbsp;INC.</B></FONT><FONT SIZE=2>, a Nebraska corporation ("Buyer") and </FONT><FONT SIZE=2><B>TRANSGENOMIC,&nbsp;INC.,</B></FONT><FONT SIZE=2> a Delaware corporation ("Seller"), and </FONT> <FONT SIZE=2><B>DWYER, SMITH, GARDNER, LAZER,
POHREN, ROGERS&nbsp;&amp; FORREST</B></FONT><FONT SIZE=2>, a Nebraska general partnership, as escrow agent ("Escrow Agent"). </FONT></P>

<BR>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ke4697_preliminary_statements"> </A></FONT> <FONT SIZE=2><B>PRELIMINARY STATEMENTS         </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;Buyer
and Seller entered into an Asset Purchase Agreement, dated as of May&nbsp;16, 2000 (the "Agreement"), pursuant to which Buyer has acquired certain assets of
the Seller related to Seller's non-life sciences instrument product line, which sale was completed as of the date hereof. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;At
the closing of such sale, Seller accepted a promissory note in the principal amount of $2,000,000 representing a portion of the purchase price (the "Purchase
Money Note") and agreed to assume two additional notes with an aggregate principal amount of $4,635,000 that were delivered by Buyer to certain financial institutions on the date hereof in order to
finance the remaining purchase price and to provide working capital to the Buyer (the "Bank Notes"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;On
the date the Seller completes its initial public offering (the "Assumption Date"), Seller will assume the Bank Notes and the parties have agreed that the
Purchase Money Note and Bank Notes will be consolidated into a single promissory note from Buyer to Seller in a principal amount reflecting the aggregate principal amount of the Purchase Money Notes
and the Bank Notes plus interest accrued thereon through the Assumption Date (the "Takeout Note"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;In
order to induce Seller to accept the Purchase Money Note from the Buyer on the date hereof and to assume the Bank Notes and consolidate them into the Takeout
Note, Guarantor, being the sole shareholder of the Buyer, has delivered a personal guarantee of the payment of principal and interest on the Purchase Money Note (which shall automatically convert into
a guarantee of the Buyer's obligations under the Takeout Note on the Assumption Date (the "Guarantee"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;As
collateral for the Guarantee, Guarantor has pledged 1,200,000 shares of the Seller's common stock owned by him (the "Escrowed Shares") to the Seller and has
agreed to deposit the Escrowed Shares in escrow with the Escrow Agent pursuant to the terms of this Agreement. </FONT></P>

<BR>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ke4697_agreement"> </A></FONT> <FONT SIZE=2><B>AGREEMENT         </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the mutual covenants, obligations and agreements set forth herein and in the Agreement and the Takeout Note and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. Deposit of Escrowed Shares and Related Instruments.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Upon the execution hereof, Guarantor shall
deliver to the Escrow Agent: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;certificates
evidencing all of the Escrowed Shares; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;a
signed and undated stock power in substantially the form attached as Exhibit&nbsp;A hereto (a "Stock Power"). </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;All
Escrowed Shares shall be delivered by the Guarantor to the Escrow Agent free and clear of any lien or encumbrance (other than created hereby) and Guarantor agrees that he will not
pledge, hypothecate or otherwise encumber any Escrowed Shares or grant any option or create any other right with respect thereto during the term hereof. Escrow Agent agrees hold the Escrowed Shares
and the Stock Power in accordance with the terms and conditions of this Escrow Agreement. </FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=1,EFW="2029464",CP="TRANSGENOMIC, INC.",DN="3",CHK=1011953,FOLIO='blank',FILE='DISK012:[00CHI7.00CHI4697]KE4697A.;6',USER='MRIES',CD='13-NOV-2000;14:08' -->
<UL>

<P><FONT SIZE=2><B> Section&nbsp;2. Dividends and Other Distributions</B></FONT><FONT SIZE=2>. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;All
cash dividends or other distributions declared by Seller on the Escrowed Shares (other than a distribution made in connection with a liquidation of Seller or a
distribution of substantially all of the assets of Seller with respect to the Escrowed Shares) (a "Cash Dividend") and payable to the shareholders of Seller of record at any time after the date
hereof, shall be payable to Guarantor, as record holder of the Escrowed Shares, and will not be deposited with Escrow Agent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;All
dividends or distributions declared by Seller on the Escrowed Shares that are payable in stock or any instrument convertible into stock of Seller and payable to
the shareholders of Seller of record at any time after the date hereof, shall be payable to Guarantor, as record holder of the Escrowed Shares, and will not be deposited with Escrow Agent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If
the Seller declares a stock split (which shall include any stock dividend of more than 20%) affecting the Escrowed Shares, the certificates or other instruments
relating thereto shall be immediately deposited by Guarantor with the Escrow Agent as additional Escrowed Shares to be held and distributed by Escrow Agent in accordance with this Escrow Agreement and
the Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Guarantor
shall retain all right to vote the Escrowed Shares at any annual or special meeting of the shareholders of Seller unless and until such shares are
disposed of pursuant to Section&nbsp;3(b) hereof. </FONT></P>

</UL>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. Disposition of Escrowed Shares.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The Escrowed Shares shall be delivered by the Escrow Agent as
follows: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Upon
written notice from an officer of the Seller that all principal of, and interest on, the Takeout Note has been paid in full and no further obligation of the
Buyer remains thereunder, the Escrowed Shares (along with the Stock Power) shall be delivered to Buyer; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Upon
written notice from an officer of the Seller that Buyer has delivered a partial payment of the principal balance of the Takeout Note, which notice shall
instruct the Escrow Agent to release a pro rata number of shares according to the percentage of the outstanding principal balance paid to Seller as part of such partial payment, that portion of the
Escrowed Shares shall be delivered to Buyer; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Upon
written notice from an officer of the Seller that an Event of Default has occurred (unless written evidence that such Event of Default has not occurred is
received from Guarantor within 48&nbsp;hours thereof), the Escrow Agent is hereby authorized and directed to take any and all such actions (including delivery of certificates for the Escrowed Shares
and the Stock Power to such broker or other party as the Seller shall direct) as may be necessary to cause the sale of such number of the Escrowed Shares as Escrow Agent reasonably determines in good
faith is necessary to generate sufficient net cash proceeds to pay all outstanding principal of, and accrued and unpaid interest on, the Purchase Money Note or Takeout Note, as the case may be. Upon
receipt of such net proceeds, the Escrow Agent shall deliver same to the Seller and, assuming such net proceeds equal the then outstanding principal of, and accrued and unpaid interest on, the
Purchase Money Note or Takeout Note, Seller shall mark the original Purchase Money Note or Takeout Note, as the case may be, as "cancelled" and deliver same to the Escrow Agent. Escrow Agent shall
promptly thereafter remit such cancelled note to the Buyer along with any remaining Escrowed Shares and any cash proceeds from the sale of Escrow Shares in excess of the amounts delivered to Seller to
pay principal of, and interest on, the Purchase Money Note or Takeout Note. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The
obligation of Escrow Agent to cause the sale of the Escrowed Shares on behalf of Seller under paragraph&nbsp;(c) of this Section&nbsp;3, is subject to any
restriction on the transferability of the Escrowed Shares imposed on Guarantor under federal and state securities laws or any contractual obligation entered into by Guarantor at the request of the
Seller or its underwriters in connection with the initial public offering of its common stock. Escrow Agent may request, and will be entitled to rely </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=2,EFW="2029464",CP="TRANSGENOMIC, INC.",DN="3",CHK=503916,FOLIO='2',FILE='DISK012:[00CHI7.00CHI4697]KE4697A.;6',USER='MRIES',CD='13-NOV-2000;14:08' -->
<UL>

<P><FONT SIZE=2>
on, an opinion from Seller's legal counsel as to its ability to sell or cause the sale of Escrowed Shares under such laws or contractual restrictions. In that regard, Seller and the Escrow Agent
acknowledge that the Escrowed shares have not been registered under the Securities Act of 1933, as amended (the "Securities Act") and bear a legend to that effect. To the extent it determines that
registration of the Escrowed Shares under the Securities Act is necessary, the Seller may file&nbsp;a registration statement relating thereto (at its sole expense) and the Buyer and Guarantor hereby
agree to cooperate and take such actions as may be reasonably requested by Seller in order to complete same. </FONT></P>

</UL>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. Events of Default.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Any one of the following shall constitute an Event of Default under this
Agreement: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Buyer
or Guarantor has made any material misstatement of fact, misrepresentation or omission with respect to, or has otherwise defaulted in the performance of any
term, condition, covenant or other agreement, which default has not been waived or cured with respect to, any provision, representation or warranty set forth in the Purchase Money Note, the Takeout
Note, the Agreement, this Escrow Agreement or any other agreements between Buyer and Seller; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Buyer
fails to pay the principal balance and all accrued and unpaid interest on either the Purchase Money Note or the Takeout Note on or before the respective
maturity dates thereof and Guarantor fails to immediately pay same pursuant to the terms of the Guarantee or either Buyer or Guarantor advise Seller in writing that it or he will not honor their
obligations under the Purchase Money Note, the Takeout Note or the Guarantee or otherwise authorize the Seller and the Escrow Agent in writing to take actions hereunder as if an Event of Default has
occurred; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Buyer
or Guarantor (i)&nbsp;fails to pay or otherwise defaults with respect to any material indebtedness, installment contract or any other material obligation if
such failure or default remains after the expiration of any applicable cure period or is not subject to a bona fide dispute between the parties thereto; (ii)&nbsp;becomes insolvent, generally fails
to pay, or admits in writing its inability to pay, its debts as they become due; (iii)&nbsp;makes an assignment for the benefit of creditors; or (iv)&nbsp;files or has filed against it
involuntarily a petition in bankruptcy or institutes any action under any applicable laws providing for the relief of debtors or seeks or consents to the appointment of an administrator, receiver,
custodian, or similar official for his assets (or has such a petition or action filed against it and such petition or action or appointment is not dismissed or stayed within ninety (90)&nbsp;days).
The Buyer expressly waives presentment, protest, demand, notice of dishonor or default. </FONT></P>

</UL>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. General Rights and Duties of Escrow Agent</B></FONT><FONT SIZE=2>.&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Escrow
Agent agrees to use its best efforts to ensure the security of the Escrowed Shares, and Escrow Agent agrees to perform its duties hereunder with the same
degree of care exercised by Escrow Agent in connection with its own property. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Escrow
Agent does not have an interest in the Escrow Shares and has possession thereof only as escrow holder in accordance with the terms of this Escrow Agreement.
Escrow Agent acknowledges and agrees that Escrow Agent is not a "holder" of the Escrow Shares as that term is defined under the Uniform Commercial Code of the State of Nebraska, and, as such, Escrow
Agent acknowledges and agrees that the Escrow Shares may not be subject to any existing or hereafter filed and perfected security interests in any of the property of Escrow Agent held by any now or
hereafter existing creditors of Escrow Agent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In
performing its duties hereunder, Escrow Agent shall be entitled to rely upon (i)&nbsp;the service, accuracy and authenticity of any order, judgment,
certification, demand or judicial or administrative notice and (ii)&nbsp;any written notice or other document delivered to Escrow Agent in connection herewith
believed by it to be genuine and correct and executed and delivered by the appropriate party. Escrow Agent may conclusively presume that the representative of any entity other than a natural person
which is a party hereto has full power and authority to execute any such written </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=3,EFW="2029464",CP="TRANSGENOMIC, INC.",DN="3",CHK=148876,FOLIO='3',FILE='DISK012:[00CHI7.00CHI4697]KE4697A.;6',USER='MRIES',CD='13-NOV-2000;14:08' -->
<UL>

<P><FONT SIZE=2>
notice or other document and to issue instructions to Escrow Agent on behalf of such party unless written notice to the contrary is delivered to Escrow Agent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Escrow
Agent shall not be liable for any claim, loss or other damage resulting from (i)&nbsp;the performance of the respective obligations or breach of any
covenant, representation, warranty or any other promise or obligation of the Agreement by any of the parties thereto and (ii)&nbsp;compliance by Escrow Agent with any legal process, subpoena, writs,
orders, judgements and decree of any court whether issued with or without jurisdiction and whether or not consequently vacated, modified, set aside or reversed. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Each
of the Seller, Buyer and Guarantor agree to indemnify and hold harmless Escrow Agent in its capacity as such from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, reasonable expenses (including those of its outside counsel) or disbursements of any kind whatsoever which may at any time be
imposed upon, incurred by or asserted against Escrow Agent in its capacity as such in any way relating to or arising out of this Escrow Agreement, except to the extent resulting from the gross
negligence or willful misconduct of Escrow Agent. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;In
the event of disagreement about the interpretation of this Escrow Agreement, or about the rights and obligations or the propriety of any action contemplated by
Escrow Agent thereunder, Escrow Agent may, in its sole discretion, file an action to interpleader to resolve the disagreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Escrow
Agent shall not be bound by any agreements among the Seller, Buyer or Guarantor other than by this Escrow Agreement and any other escrow agreement to which
Escrow Agent is a party with the Seller, Buyer and/or Guarantor. </FONT></P>

</UL>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. Notices.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;(a) All notices, written instructions or other documents deliverable to any of the parties
hereto pursuant to the terms and conditions of this Escrow Agreement shall be validly given when </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=4,EFW="2029464",CP="TRANSGENOMIC, INC.",DN="3",CHK=153675,FOLIO='4',FILE='DISK012:[00CHI7.00CHI4697]KE4697A.;6',USER='MRIES',CD='13-NOV-2000;14:08' -->

<P><FONT SIZE=2>
hand-delivered or sent by a courier or express service guaranteeing overnight delivery to the parties at the following addresses: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="63%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>If to Escrow Agent:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="BOTTOM"><FONT SIZE=2>Dwyer, Smith, Gardner, Lazer,<BR>
&nbsp;&nbsp;Pohren, Rogers&nbsp;&amp; Forrest<BR>
8712 West Dodge Road<BR>
Suite 400<BR>
Omaha, Nebraska 68114<BR>
Attention: Michael Lazer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;<BR>
If to Buyer or Guarantor:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="BOTTOM"><FONT SIZE=2>&nbsp;<BR>
SD Acquisition, Inc<BR>
5600 South 42<SUP>nd</SUP> Street<BR>
Omaha, Nebraska 68107<BR>
Attention: Stephen F. Dwyer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;<BR>
with a copy to:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="BOTTOM"><FONT SIZE=2>&nbsp;<BR>
Michael Lazer<BR>
Dwyer, Smith, Gardner, Lazer,<BR>
&nbsp;&nbsp;Pohren, Rogers&nbsp;&amp; Forrest<BR>
8712 West Dodge Road<BR>
Suite 400<BR>
Omaha, Nebraska 68114</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;<BR>
If to Seller:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="BOTTOM"><FONT SIZE=2>&nbsp;<BR>
Transgenomic, Inc<BR>
5600 South 42<SUP>nd</SUP> Street<BR>
Omaha, Nebraska 68107<BR>
Attention: William Rasmussen</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;<BR>
with a copy to:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="BOTTOM"><FONT SIZE=2>&nbsp;<BR>
Steven Amen<BR>
Kutak Rock LLP<BR>
1650 Farnam Street<BR>
Omaha, Nebraska 68102</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;<BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="BOTTOM"><FONT SIZE=2>&nbsp;<BR>
&nbsp;</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
delivery of the Stock to any party hereto shall be by hand delivery or U.S. Mail, postage prepaid, return receipt requested and copies of any correspondence delivered therewith
may be delivered in any manner authorized herein. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. Tax Matters.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Guarantor agrees that he is responsible for the payment of income taxes with respect to
any dividend payable to him with respect to the Escrowed Shares during the term of this Escrow Agreement. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8. Governing Law.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;This Escrow Agreement shall be governed by and construed in accordance with the laws
of the State of Nebraska notwithstanding the conflict of laws principles thereof. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9. Waiver.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;No waiver of any of the obligations or provisions of this Escrow Agreement shall be
enforceable against any of the parties unless such waiver is (a)&nbsp;executed by each of the parties hereto and (b)&nbsp;acknowledged in writing by Escrow Agent. Any waiver effected hereby shall
not constitute a waiver of any other obligations or provisions of this Escrow Agreement. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10. Amendment.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;This Escrow Agreement may be amended, modified or terminated only by written instrument
or written instruments signed by the parties hereto. No act, omission or course of dealing shall be deemed to constitute an amendment, modification or termination hereof. </FONT></P>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11. Headings.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The headings contained in this Escrow Agreement are provided for convenience only and form
no part of this Agreement and shall not affect the construction or interpretation of this Escrow Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=5,SEQ=5,EFW="2029464",CP="TRANSGENOMIC, INC.",DN="3",CHK=956831,FOLIO='5',FILE='DISK012:[00CHI7.00CHI4697]KE4697A.;6',USER='MRIES',CD='13-NOV-2000;14:08' -->

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12. Successors and Assigns.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;This Escrow Agreement shall be binding upon and shall inure to the benefit
of the parties hereto, their respective legal representatives, successors, heirs and assigns. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;13. Entire Agreement.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;This Escrow Agreement sets forth the entire agreement among the parties with
respect to the subject matter hereof, and this Agreement supersedes and replaces any agreement or understanding that may have existed between the parties prior to or contemporaneously with the date
hereof in respect of the such subject matter expressly set forth herein. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;14. Counterparts.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties have executed and delivered this Escrow Agreement as of the date first above written. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="77%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="52%" COLSPAN=3><FONT SIZE=2>BUYER:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;<BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="52%" COLSPAN=3><FONT SIZE=2>&nbsp;<BR>
SD Acquisition,&nbsp;Inc.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;<BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;<BR>
By</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" VALIGN="BOTTOM"><FONT SIZE=2>&nbsp;<BR>
/s/&nbsp;</FONT><FONT SIZE=2>STEPHEN F. DWYER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Stephen F. Dwyer, President</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;<BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="52%" COLSPAN=3><FONT SIZE=2>&nbsp;<BR>
GUARANTOR:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;<BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="52%" COLSPAN=3><FONT SIZE=2>&nbsp;<BR>
/s/&nbsp;</FONT><FONT SIZE=2>STEPHEN F. DWYER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Stephen F. Dwyer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;<BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="52%" COLSPAN=3><FONT SIZE=2>&nbsp;<BR>
SELLER:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;<BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="52%" COLSPAN=3><FONT SIZE=2>&nbsp;<BR>
Transgenomic,&nbsp;Inc.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;<BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;<BR>
By</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" VALIGN="BOTTOM"><FONT SIZE=2>&nbsp;<BR>
/s/&nbsp;</FONT><FONT SIZE=2>WILLIAM P. RASMUSSEN</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> William P. Rasmussen, Chief Financial Officer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;<BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="52%" COLSPAN=3><FONT SIZE=2>&nbsp;<BR>
ESCROW AGENT:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;<BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="52%" COLSPAN=3><FONT SIZE=2>&nbsp;<BR>
Dwyer, Smith, Gardner, Lazer, Pohren, Rogers&nbsp;&amp; Forrest</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="46%"><FONT SIZE=2>&nbsp;<BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;<BR>
By</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;<BR>&nbsp;</FONT></TD>
<TD WIDTH="46%" VALIGN="BOTTOM"><FONT SIZE=2>&nbsp;<BR>
/s/&nbsp;</FONT><FONT SIZE=2>MICHAEL LAZER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Michael Lazer, Partner</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->
<P ALIGN="CENTER"><FONT SIZE=2>[SIGNATURE
PAGE TO ESCROW AGREEEMENT] </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=6,SEQ=6,EFW="2029464",CP="TRANSGENOMIC, INC.",DN="3",CHK=600124,FOLIO='6',FILE='DISK012:[00CHI7.00CHI4697]KE4697A.;6',USER='MRIES',CD='13-NOV-2000;14:08' -->
<!-- Generated by Merrill Corporation (www.merrillcorp.com) -->
<BR>
<H2><FONT SIZE=2><A NAME="00CHI4697_3">QuickLinks</A></FONT></H2>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#ke4697_escrow_agreement">ESCROW AGREEMENT</A></FONT><BR>
<FONT SIZE=2><A HREF="#ke4697_preliminary_statements">PRELIMINARY STATEMENTS</A></FONT><BR>
<FONT SIZE=2><A HREF="#ke4697_agreement">AGREEMENT</A></FONT><BR>
<!-- TOC_END -->
<!-- SEQ=,FILE='QUICKLINK',USER=FSTREET,SEQ=,EFW="2029464",CP="TRANSGENOMIC, INC.",DN="3" -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
