Document:

WAFERGEN
BIO-SYSTEMS, INC.

     

    PUT
AGREEMENT

     

    THIS PUT AGREEMENT (this
“Agreement”) is entered
into as of December 14, 2010, by and among WaferGen Bio-systems, Inc., a Nevada
corporation (“WaferGen
US”), and the Malaysian Technology Development Corporation Sdn Bhd
(“MTDC” or “Holder”) of the Series C-1
Redeemable Convertible Preference Shares and the Series C-2 Redeemable
Convertible Preference Shares in WaferGen Biosystems (M) Sdn. Bhd. (formerly
known as Global Dupleks Sdn. Bhd.), a Malaysian corporation (the “Company”) (“Series C Shares”), pursuant to
that certain Share Subscription Agreement dated as of December 14, 2010, among
WaferGen US, MTDC and the Company (the “Purchase
Agreement”).  Any term not defined herein shall have the
meaning ascribed to such term in the Purchase Agreement.

     

    RECITALS

     

    A.           WHEREAS,
MTDC has entered into the Purchase Agreement for the purchase of and
subscription for certain Series C Shares of the Company.

     

    B.           WHEREAS,
in order to induce MTDC to enter into the Purchase Agreement, WaferGen US has
agreed to grant to MTDC an option to put (the “Put Right”) to WaferGen US the
Series C Shares held by MTDC, whereby the Series C Shares held by MTDC will be
exchanged for shares of Common Stock of WaferGen US on the terms set forth
below.

     

    NOW,
THEREFORE, in consideration of the mutual promises, representations, warranties,
covenants and conditions set forth in this Agreement, the parties mutually agree
as follows:

     

    AGREEMENT

     

    SECTION  1

    PUT
RIGHT

     

    1.1          Put
Right.

     

    (a)           Upon
the earlier of (i) receipt by WaferGen US of a written request from the Holder
of Holder’s desire to exercise the Holder’s Put Right (a “Holder’s Put Notice”) or (ii)
the one year anniversary of the date of this Agreement (the “Anniversary”), then all, but
not less than all, of the Holder’s Series C Shares shall be exchanged as
described in Section 1.2 below (the “Exchange”).  The
effective date of the Exchange (the “Exchange Date”) shall be the
date on which WaferGen US receives the Holder’s Put Notice or the date of the
Anniversary, which is earlier.

     

    (b)           After
the earlier of (i) delivery of such Holder’s Put Notice or (ii) the Anniversary,
the Holder shall deliver all of such Holder’s share certificates and duly
executed share transfer forms with respect to such Series C Shares to the
Secretary of WaferGen US (or to his/her order) as promptly as practicable (but
in no event more than 30 days after the date thereof) and take any other
actions reasonably required to effectuate the transfer of all such Holder’s
Series C Shares to WaferGen US. WaferGen US may nominate its nominee(s) to
accept the transfer of the Series C Shares.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.2          The Exchange; No Fractional
Shares.

     

    (a)           Upon
the occurrence of an Exchange, each one (1) of the Holder’s Series C Shares
subject to such Holder’s Put Notice shall be converted into the right to receive
one (1) new share of Common Stock of WaferGen US (the “Exchange Security”) (as
adjusted for stock splits, recapitalization, combinations and similar
transactions) effective as of the Exchange Date.

     

    (b)           All
Exchange Securities shall be aggregated and issued to the Holder, except that no
fractional shares of Exchange Securities shall be issued upon the occurrence of
an Exchange.  If, after the aforementioned aggregation, the conversion
would result in the issuance of any fractional share, WaferGen US shall, in lieu
of issuing any fractional share, pay cash equal to the product of such fraction
multiplied by the per share fair market value of the Exchange Securities (as
determined in good faith by the Board of Directors of WaferGen US).

     

    (c)           Subject
to the delivery by the Holder of its share certificates and other documents to
WaferGen US as required hereby, upon the occurrence of the Exchange, WaferGen US
shall as soon as practicable (but in no event more than 30 days after the
Exchange Date) issue to the Holder share certificates representing the Exchange
Securities.  Notwithstanding the foregoing, (i) the issuance of the
Exchange Securities shall be deemed effective as of Exchange Date, and (ii) upon
the occurrence of the Exchange as a result of the Anniversary, the Exchange
shall be deemed to have automatically occurred on the Exchange Date, regardless
of any other actions taken by the Holder and regardless of whether the Holder
has delivered share certificates representing the Series C Shares to WaferGen
US; provided that
WaferGen US shall have no obligation to deliver certificates representing the
Exchange Securities to the Holder in the event the Holder fails to deliver the
share certificates representing the Series C Shares to WaferGen US.

     

    1.3          Rights After
Exchange.  From and after the applicable Exchange, all rights
of the Holder with respect to the exchanged Holder’s Series C Shares shall cease
with respect to such shares (except the right to receive the Exchange
Securities, and any cash payment for fractional shares, without interest upon
surrender of their certificate or certificates), and such shares shall be owned
legally and beneficially by WaferGen US for all purposes and will be transferred
to WaferGen US on the books and records of the Company.

     

    1.4          Rights After
Conversion.  If at any time any or all of Holder’s Series C
Shares are converted into Ordinary Shares of the Company for any reason, the
Holder’s Put Right pursuant to this Agreement with respect to all of the
Holder’s Series C Shares shall terminate and expire in its entirety upon such
conversion, and the Holder shall have not have any Put Right with respect to any
Ordinary Shares held by the Holder.

     

    SECTION  2

    MISCELLANEOUS

     

    2.1          Governing
Law.  This Agreement and all acts and transactions pursuant
hereto and the rights and obligations of the parties hereto shall be governed,
construed and interpreted in accordance with the laws of the State of California
in the United States of America, without giving effect to the choice of law
provisions thereof.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    2.2          Arbitration.  The
parties agree that any and all disputes, claims or controversies arising out of
or relating to this Agreement that are not resolved by their mutual agreement
shall be submitted to final and binding arbitration in New York, New York before
JAMS, or its successor, pursuant to the United States Arbitration Act,
9 U.S.C. Sec. 1 et seq.  Any party may commence the
arbitration process called for in this Agreement by filing a written demand for
arbitration with JAMS, with a copy to the other party.  The
arbitration will be conducted in accordance with the provisions of JAMS’
Streamlined Arbitration Rules and Procedures in effect at the time of filing of
the demand for arbitration.  The parties will cooperate with JAMS and
with one another in selecting an arbitrator from JAMS’ panel of neutrals, and in
scheduling the arbitration proceedings.  The parties covenant that
they will participate in the arbitration in good faith, and that they will share
equally in its costs.  The provisions of this Section 2.2 may be
enforced by any court of competent jurisdiction, and the party seeking
enforcement shall be entitled to an award of all costs, fees and expenses,
including attorneys fees, to be paid by the party against whom enforcement is
ordered.

     

    2.3          Assignment of Put
Right.  The Put Right granted in this Agreement may only be
assigned by the Holder in connection with a permitted transfer of Series C
Shares by the Holder in accordance with Clause 18 of the Purchase
Agreement.

     

    2.4          Successors and
Assigns.  Except as otherwise provided herein, the terms and
conditions of this Agreement shall inure to the benefit of and be binding upon
the respective successors and assigns of the parties (including permitted
transferees of any Series C Shares).  Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

     

    2.5          Severability.  In
case any provision of this Agreement shall be invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

     

    2.6          Amendment and
Waiver.  Except as otherwise expressly provided, the
obligations of WaferGen US and the rights of MTDC under this Agreement may be
amended, modified or waived only with the written consent of WaferGen US and
MTDC (excluding for purposes of this calculation any Series C Shares held by
WaferGen US or its nominee(s)).

     

    2.7          Delays or
Omissions.  It is agreed that no delay or omission to exercise
any right, power, or remedy accruing to the Holder, upon any breach, default or
noncompliance of WaferGen US under this Agreement, shall impair any such right,
power, or remedy, nor shall it be construed to be a waiver of any such breach,
default or noncompliance, or any acquiescence therein, or of any similar breach,
default or noncompliance thereafter occurring.  It is further agreed
that any waiver, permit, consent, or approval of any kind or character on the
Holder’s part of any breach, default or noncompliance under the Agreement or any
waiver on the Holder’s part of any provisions or conditions of this Agreement
must be in writing and shall be effective only to the extent specifically set
forth in such writing.  All remedies, either under this Agreement, by
law, or otherwise afforded to the Holder, shall be cumulative and not
alternative.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    2.8          Notices.  All
notices required or permitted hereunder shall be in writing and shall be deemed
effectively given: (i) upon personal delivery to the party to be notified,
(ii) when sent by confirmed telex or facsimile if sent during normal
business hours of the recipient; if not, then on the next business day,
(iii) five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid, or (iv) one (1) day after
deposit with a United States recognized overnight courier, specifying next-day
delivery, with written verification of receipt.  All communications
shall be sent to the party to be notified at the address as set forth on the
signature pages hereof or at the current address of the Holder on the books and
records of the Company or at such other address as such party may designate by
ten (10) days’ advance written notice to the other parties
hereto.  All notices sent to the Company or WaferGen US shall also be
sent to:  Morrison & Foerster LLP, 425 Market Street, San
Francisco, CA 94105, Attention:  John M. Rafferty
(Telecopier:  (415) 268-7305).

     

    2.9          Attorneys’
Fees.  In the event that any dispute among the parties to this
Agreement should result in litigation, the prevailing party in such dispute
shall be entitled to recover from the losing party all fees, costs and expenses
of enforcing any right of such prevailing party under or with respect to this
Agreement, including without limitation, such reasonable fees and expenses of
attorneys and accountants, which shall include, without limitation, all fees,
costs and expenses of appeals.

     

    2.10      
 Titles and
Subtitles.  The titles of the sections and subsections of this
Agreement are for convenience of reference only and are not to be considered in
construing this Agreement.

     

    2.11       Counterparts. This
Agreement may be executed in any number of counterparts, each of which shall be
an original, but all of which together shall constitute one
instrument.

     

    2.12       Certain Restrictions and
Representations.  The Holder understands that any shares of
Common Stock of WaferGen US to be received in an Exchange may be characterized
as “restricted securities” under the federal securities laws inasmuch as they
would be acquired from WaferGen US in a transaction not involving a public
offering and that under such laws and applicable regulations, such securities
may be resold without registration under the Securities Act of 1933, as amended
(the “Act”), only in certain limited circumstances.  In this regard,
the Holder represents that it is familiar with Rule 144 under the Act, as
presently in effect, and understands the resale limitations imposed thereby and
by the Act.  The Holder further represents that the Series C Shares,
along with any Exchange Securities, are being acquired for investment for the
Holder’s own account not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof.  The acquisition by the
Holder of the Series C Shares, along with any Exchange Securities, shall
constitute confirmation of the representation by Holder that the Holder does not
have any contract, undertaking, agreement or arrangement with any person to
sell, transfer or grant participations to such person or to any third person,
with respect to any of the Series C Shares or the Exchange
Securities.  The Holder also represents that it is an “accredited
investor” within the meaning of Securities and Exchange Commission Rule 501 of
Regulation D, as presently in effect.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    2.13       Transfer
Taxes.  All excise, transfer, stamp, documentary, filing,
recordation and other similar taxes which may be imposed or assessed as the
result of any Exchange, together with any interest, additions or penalties with
respect thereto and any interest in respect of such additions or penalties,
shall be borne equally by WaferGen US and the Holder consummating such
Exchange.

    

    [THIS
SPACE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    In Witness
Whereof, the parties hereto have executed this Put
Agreement as of the date set forth in the first paragraph
hereof.

     

    
      
        
          	 
      	
                  WAFERGEN
      US:

                
	 
      	 
      
	 
      	
                  WAFERGEN
      BIO-SYSTEMS, INC.

                
	 
      	 
      
	 
      	
                  By:

                	 
      
	 
      	 
      	
                  Alnoor
      Shivji

                
	 
      	 
      	
                  Chairman,
      President & Chief Executive

                  Officer

                
	 
      	 
      
	 
      	
                  Address:

                
	 
      	
                  WaferGen
      Bio-systems, Inc.

                
	 
      	
                  7400
      Paseo Padre Parkway

                
	 
      	
                  Fremont,
      CA 94555

                
	 
      	
                  Facsimile:
      _____________

                

        

      

    

    

    Signature
Page to Put Agreement

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	 
      	
                WAFERGEN
      MALAYSIAN INVESTOR:

              
	 
      	 
      
	 
      	
                Malaysian
      Technology Development

                Corporation
      Sdn. Bhd.

              
	 
      	 
      
	 
      	
                By:

              	 
      
	 
      	 
      	
                Name:

              
	 
      	 
      	
                Title:

              
	 
      	 
      
	 
      	
                Address:

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                Facsimile:
      _________________

              

      

    

    

    Signature
Page to Put AgreementDated
December 14, 2010

     

    Between

     

    Wafergen
Bio-Systems (M) Sdn Bhd

     

    and

     

    Wafergen
Bio-Systems Inc

     

    and

     

    Malaysian
Technology Development Corporation

    Sdn
Bhd

     

    and

     

    Prima
Mahawangsa Sdn Bhd

    

    
      amended
and restated

      Shareholders’

      Agreement

    

    
      Wafergen
Biosystems (M) Sdn Bhd

    

    
      

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

    

     

    Contents

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      Recitals

                                                    	 
      	 
      	
                                                      1

                                                    
	 	 	 	 
	
                                                      1

                                                    	
                                                      Definitions
      and Interpretations

                                                    	 
      	
                                                      2

                                                    
	 
      	
                                                      1.1

                                                    	
                                                      Definitions

                                                    	 
      	
                                                      2

                                                    
	 
      	
                                                      1.2

                                                    	
                                                      Interpretation

                                                    	 
      	
                                                      4

                                                    
	 	 	 	 	 
	
                                                      2.

                                                    	
                                                      [Deleted]

                                                    	 
      	
                                                      5

                                                    
	 	 	 	 
	
                                                      3.

                                                    	
                                                      [Deleted]

                                                    	 
      	
                                                      5

                                                    
	 	 	 	 
	
                                                      4.

                                                    	
                                                      [Deleted]

                                                    	 
      	
                                                      5

                                                    
	 	 	 	 
	
                                                      5.

                                                    	
                                                      Undertakings,
      Warranties and Representations by the Parties

                                                    	 
      	
                                                      5

                                                    
	 	 	 	 
	
                                                      6.

                                                    	
                                                      Management
      of the Company

                                                    	 
      	
                                                      6

                                                    
	 
      	
                                                      6.1

                                                    	
                                                      Board
      of Directors

                                                    	 
      	
                                                      6

                                                    
	 
      	
                                                      6.2

                                                    	
                                                      Board
      Meetings

                                                    	 
      	
                                                      7

                                                    
	 
      	
                                                      6.3

                                                    	
                                                      Provisions
      in respect of meetings

                                                    	 
      	
                                                      7

                                                    
	 
      	
                                                      6.4

                                                    	
                                                      Resolutions

                                                    	 
      	
                                                      7

                                                    
	 
      	
                                                      6.5

                                                    	
                                                      Circular
      resolution

                                                    	 
      	
                                                      7

                                                    
	 
      	
                                                      6.6

                                                    	
                                                      No
      shareholding requirement

                                                    	 
      	
                                                      8

                                                    
	 
      	
                                                      6.7

                                                    	
                                                      Management

                                                    	 
      	
                                                      8

                                                    
	 
      	
                                                      6.8

                                                    	
                                                      Nominees

                                                    	 
      	
                                                      8

                                                    
	 	 	 	 	 
	
                                                      7.

                                                    	
                                                      General
      meetings

                                                    	 
      	
                                                      8

                                                    
	 
      	
                                                      7.1

                                                    	
                                                      General
      meetings

                                                    	 
      	
                                                      8

                                                    
	 
      	
                                                      7.2

                                                    	
                                                      Quorum

                                                    	 
      	
                                                      8

                                                    
	 
      	
                                                      7.3

                                                    	
                                                      Decisions
      at meetings of the Shareholders

                                                    	 
      	
                                                      8

                                                    
	 
      	 
      	
                                                      7.3.1

                                                    	
                                                      Ordinary
      Resolution

                                                    	 
      	
                                                      8

                                                    
	 
      	 
      	
                                                      7.3.2

                                                    	
                                                      Special
      Resolution

                                                    	 
      	
                                                      9

                                                    
	 
      	
                                                      7.4

                                                    	
                                                      Shareholder
      Reserve Matters

                                                    	 
      	
                                                      9

                                                    
	 	 	 	 	 
	
                                                      8.

                                                    	
                                                      Business
      of the Company

                                                    	 
      	
                                                      9

                                                    
	 	 	 	 
	
                                                      9

                                                    	
                                                      New
      Issues of Shares

                                                    	 
      	
                                                      11

                                                    
	 
      	
                                                      9.1

                                                    	
                                                      New
      Issues by Company

                                                    	 
      	
                                                      11

                                                    
	 
      	
                                                      9.2

                                                    	
                                                      Offer
      to Shareholders

                                                    	 
      	
                                                      11

                                                    
	 
      	
                                                      9.3

                                                    	
                                                      Waiver

                                                    	 
      	
                                                      11

                                                    
	 	 	 	 	 
	
                                                      10.

                                                    	
                                                      Transfers,
      Acquisitions and Disposal of Shares

                                                    	 
      	
                                                      11

                                                    
	 
      	
                                                      10.1

                                                    	
                                                      Pre-emption
      Rights

                                                    	 
      	
                                                      11

                                                    
	 	 	 	 	 
	
                                                      11

                                                    	
                                                      Put
      Options

                                                    	 
      	
                                                      13

                                                    
	 
      	
                                                      11.1

                                                    	
                                                      Investors’
      Put Right for shares in the Existing Shareholder

                                                    	 
      	
                                                      13

                                                    
	 
      	
                                                      11.2

                                                    	
                                                      Investors’
      Put Option for Series A RCPS or Conversion Shares

                                                    	 
      	
                                                      14

                                                    
	 	 	 	 	 
	
                                                      12.

                                                    	
                                                      Duration
      and Termination

                                                    	 
      	
                                                      14

                                                    
	 	 	 	 
	
                                                      13.

                                                    	
                                                      Previous
      Agreements and Prevalence of Agreement

                                                    	 
      	
                                                      14

                                                    
	 	 	 	 
	
                                                      14.

                                                    	
                                                      Remedy
      on an Event of Default

                                                    	 
      	
                                                      15

                                                    
	 	 	 	 
	
                                                      15.

                                                    	
                                                      Confidentiality

                                                    	 
      	
                                                      16

                                                    
	 	 	 	 
	
                                                      16.

                                                    	
                                                      Deadlock

                                                    	 
      	
                                                      16

                                                    
	 
      	
                                                      16.1

                                                    	
                                                      Disputes

                                                    	 
      	
                                                      16

                                                    
	 	 	 	 	 
	
                                                      17.

                                                    	
                                                      Further
      Assurance

                                                    	 
      	
                                                      16

                                                    

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        Page
| i

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                	
                                                        18.

                                                      	
                                                        Remedies

                                                      	 
      	
                                                        16

                                                      
	 	 	 	 
	
                                                        19.

                                                      	
                                                        Waiver
      and Variation

                                                      	 
      	
                                                        17

                                                      
	 
      	
                                                        19.1

                                                      	
                                                        Rights
      not affected

                                                      	 
      	
                                                        17

                                                      
	 
      	
                                                        19.2

                                                      	
                                                        Cumulative
      rights and remedies

                                                      	 
      	
                                                        17

                                                      
	 
      	
                                                        19.3

                                                      	
                                                        Variation

                                                      	 
      	
                                                        17

                                                      
	 	 	 	 	 
	
                                                        20.

                                                      	
                                                        Severability

                                                      	 
      	
                                                        17

                                                      
	 	 	 	 
	
                                                        21.

                                                      	
                                                        Continuing
      Effect

                                                      	 
      	
                                                        17

                                                      
	 	 	 	 
	
                                                        22.

                                                      	
                                                        Time

                                                      	 
      	
                                                        17

                                                      
	 	 	 	 
	
                                                        23.

                                                      	
                                                        Legal
      Relationship

                                                      	 
      	
                                                        17

                                                      
	 	 	 	 
	
                                                        24.

                                                      	
                                                        Costs
      and Expenses

                                                      	 
      	
                                                        17

                                                      
	 	 	 	 
	
                                                        25.

                                                      	
                                                        Assignment;
      Successors

                                                      	 
      	
                                                        18

                                                      
	 
      	
                                                        25.1 
      

                                                      	Assignment	 
      	
                                                        18

                                                      
	 
      	
                                                        25.2 
      

                                                      	Successors
      and assigns	 
      	
                                                        18

                                                      
	 	 	 	 
	
                                                        26.

                                                      	
                                                        Notices

                                                      	 
      	
                                                        18

                                                      
	 	 	 	 
	
                                                        27.

                                                      	
                                                        Entire
      agreement

                                                      	 
      	
                                                        20

                                                      
	 	 	 	 
	
                                                        28.

                                                      	
                                                        Counterparts

                                                      	 
      	
                                                        20

                                                      
	 	 	 	 
	
                                                        29.

                                                      	
                                                        Governing
      Law and Jurisdiction

                                                      	 
      	
                                                        20

                                                      
	 	 	 	 
	
                                                        SCHEDULE
      1

                                                      	 
      	
                                                        21

                                                      
	 
      	
                                                        1.

                                                      	
                                                        Subscription
      Price and par value

                                                      	 
      	
                                                        21

                                                      
	 
      	
                                                        2.

                                                      	
                                                        Premium

                                                      	 
      	
                                                        21

                                                      
	 
      	
                                                        3.

                                                      	
                                                        Dividend
      Provision

                                                      	 
      	
                                                        21

                                                      
	 
      	
                                                        4.

                                                      	
                                                        Liquidation
      Preference

                                                      	 
      	
                                                        21

                                                      
	 
      	
                                                        5.

                                                      	
                                                        Conversion

                                                      	 
      	
                                                        21

                                                      
	 
      	
                                                        6.

                                                      	
                                                        [Deleted]

                                                      	 
      	
                                                        23

                                                      
	 
      	
                                                        7.

                                                      	
                                                        Redemption
      Rights

                                                      	 
      	
                                                        23

                                                      
	 
      	
                                                        8.

                                                      	
                                                        Voting
      Rights

                                                      	 
      	
                                                        23

                                                      
	 
      	
                                                        9.

                                                      	
                                                        Protective
      Provisions

                                                      	 
      	
                                                        23

                                                      
	 
      	
                                                        10.

                                                      	
                                                        No
      Variation

                                                      	 
      	
                                                        24

                                                      
	 	 	 	 	 
	
                                                        SCHEDULE
      2

                                                      	 
      	
                                                        25

                                                      
	 
      	
                                                        1.

                                                      	
                                                        Representations
      and Warranties by the Investors

                                                      	 
      	
                                                        25

                                                      
	 
      	
                                                        2.

                                                      	
                                                        Representations
      and Warranties by the Existing Shareholder and the Company

                                                      	 
      	
                                                        25

                                                      
	 	 	 	 	 
	
                                                        SCHEDULE
      3

                                                      	 
      	
                                                        27

                                                      
	 
      	
                                                        1.

                                                      	
                                                        Subscription
      Price and par value

                                                      	 
      	
                                                        27

                                                      
	 
      	
                                                        2.

                                                      	
                                                        Premium

                                                      	 
      	
                                                        27

                                                      
	 
      	
                                                        3.

                                                      	
                                                        Dividend
      Provision

                                                      	 
      	
                                                        27

                                                      
	 
      	
                                                        4.

                                                      	
                                                        Liquidation
      Preference

                                                      	 
      	
                                                        27

                                                      
	 
      	
                                                        5.

                                                      	
                                                        Conversion

                                                      	 
      	
                                                        27

                                                      
	 
      	
                                                        6.

                                                      	
                                                        [Deleted]

                                                      	 
      	
                                                        29

                                                      
	 
      	
                                                        7.

                                                      	
                                                        Redemption
      Rights

                                                      	 
      	
                                                        29

                                                      
	 
      	
                                                        8.

                                                      	
                                                        Voting
      Rights

                                                      	 
      	
                                                        29

                                                      
	 
      	
                                                        9.

                                                      	
                                                        Protective
      Provisions

                                                      	 
      	
                                                        29

                                                      
	 
      	
                                                        10.

                                                      	
                                                        No
      Variation

                                                      	 
      	
                                                        30

                                                      

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        Page
| ii

        
          

        

      

      
         

      

    

    

    
      
        
          
            	
                    SCHEDULE
      4

                  	 
      	
                    31

                  
	 
      	
                    1.

                  	
                    Subscription
      Price and par value

                  	 
      	
                    31

                  
	 
      	
                    2.

                  	
                    Premium

                  	 
      	
                    31

                  
	 
      	
                    3.

                  	
                    Dividend
      Provision

                  	 
      	
                    31

                  
	 
      	
                    4.

                  	
                    Liquidation
      Preference

                  	 
      	
                    31

                  
	 
      	
                    5.

                  	
                    Conversion

                  	 
      	
                    31

                  
	 
      	
                    6.

                  	
                    [Deleted]

                  	 
      	
                    32

                  
	 
      	
                    7.

                  	
                    Redemption
      Rights

                  	 
      	
                    32

                  
	 
      	
                    8.

                  	
                    Voting
      Rights

                  	 
      	
                    32

                  
	 
      	
                    9.

                  	
                    Protective
      Provisions

                  	 
      	
                    32

                  
	 
      	
                    10.

                  	
                    No
      Variation

                  	 
      	
                    33

                  

          

        

      

    

     

    
      
         

      

      
        Page
| iii

        
          

        

      

      
         

      

    

    This
Agreement is made on December 14, 2010  between:

    

    
      	
              (1)

            	
              Wafergen
      Biosystems (M) Sdn Bhd  (Company No 795066-H), a company
      incorporated in Malaysia with a registered address at Suite 2-1, 2nd
      Floor, Menara Penang Garden, 42A, Jalan Sultan Ahmad Shah, 10050 Penang,
      Malaysia.  (“Company”);

            

    

     

    
      and

    

     

    
      	
              (2)

            	
              Wafergen
      Bio-Systems, Inc (WGBS.OB), a Nevada USA incorporated company with a
      registered address and place of business at 7400 Paseo Padre Parkway,
      Fremont, CA 94555, USA (“Existing
      Shareholder”);

            

    

     

    
      and

    

     

    
      	
              (3)

            	
              Malaysian
      Technology Development Corporation Sdn Bhd (Company No 235796-U), a
      company incorporated in Malaysia with a registered address at Level 8,
      Menara Yayasan Tun Razak, Jalan Bukit Bintang, 55100 Kuala Lumpur (“MTDC);

            

    

     

    
      and

    

     

    
      	
              (4)

            	
              Prima
      Mahawangsa Sdn Bhd (Company No. 833152-M), a company incorporated in
      Malaysia with a registered address at 5th Floor, Bangunan CIMB, Jalan
      Semantan, Damansara Heights, 50490 Kuala Lumpur (“PMSB”).

            

    

     

    
      
        (The
Company, the Existing Shareholder, MTDC and PMSB are collectively referred to as
“Parties” and each as a
“Party”).

      

    

     

    Recitals

     

    
      	
              (A)

            	
              Pursuant
      to a Share Subscription and Shareholders’ Agreement dated 8 May 2008
      between the Company, the Existing Shareholder and MTDC (“Shareholders’
      Agreement”), MTDC agreed to subscribe for 888,888 redeemable
      convertible preference shares of RM0.01 each in the capital of the Company
      (“Series A RCPS”)
      and the Company, the Existing Shareholder and MTDC agreed to regulate the
      affairs and their relationship in the Company in accordance with the
      Shareholders’ Agreement.

            

    

     

    
      	
              (B)

            	
              The
      Existing Shareholder, the Company, Prima Mahawangsa Sdn Bhd (“PMSB”) and Expedient
      Equity Ventures Sdn Bhd (“EEV”) entered into a
      Share Subscription Agreement (“Subscription Agreement”)
      and Deed of Adherence (“DA”) both dated 3 April
      2009 where PMSB agreed to subscribe for 444,444 Series B Redeemable
      Convertible Preference Shares (“Series B RCPS”) in the
      Company and EEV agreed to subscribe for 222,222 Series B RCPS, pursuant to
      the terms and conditions in the Subscription Agreement and Deed of
      Adherence.

            

    

     

    
      	
              (C)

            	
              The
      Existing Shareholder, the Company and Kumpulan Modal Perdana Sdn Bhd
      (“KMP”) entered
      into a Share Subscription Agreement (“KMP SSA”) and Deed of
      Adherence (“KMP
      DA”) both dated 1 July 2009 where KMP agreed to subscribe for
      188,057 Series
      B RCPS pursuant to the terms and conditions in the KMP SSA and KMP
      DA.

            

    

     

    
      
         

      

      
        Page
| 1

        
          

        

      

      
         

      

    

     

    
      
        	
                (D)

              	
                The
      Existing Shareholder, the Company and MTDC have entered into this
      Agreement simultaneously with a Share Subscription Agreement
      dated December
      2010 (“Series C
      Subscription Agreement”) where MTDC agreed to subscribe for
      3,233,734 Series C Redeemable Convertible Preference Shares (“Series C RCPS”) in the
      Company with an option to subscribe for a further 1,077,911 Series C RCPS
      pursuant to the terms and conditions in the Series C Subscription
      Agreement.

              

      

    

     

    
      	
              (E)

            	
              EEV
      and KMP have exercised their put option under the relevant put agreements
      and exchanged the Series B RCPS held with the Existing Shareholder for
      shares in the Existing Shareholder and as at the date of this Agreement,
      EEV and KMP have ceased to be Series B RCPS holders in the
      Company.

            

    

     

    
      	
              (F)

            	
              The
      remaining shareholders, that is the Existing Shareholder, MTDC and PMSB
      are desirous of undertaking the Business through the Company and agree to
      regulate their relationship as shareholders of the Company in accordance
      with the terms and conditions of this
Agreement.

            

    

     

    
      	
              (G)

            	
              Clause
      11 is applicable only to MTDC.

            

    

     

    
      	
              (H)

            	
              The
      current shareholding in the Company is as
  follows:

            

    

     

    
      
        
          
            
              
                	
                        Shareholder

                      	 	
                        Shares

                      	 	 	
                        Series A RCPS

                      	 	 	
                        Series B RCPS

                      	 
	
                        Existing
      Shareholder

                      	 	
                        300,000

                      	 	 	
                        -

                      	 	 	
                        410,279

                      	 
	
                        MTDC

                      	 	
                        -

                      	 	 	
                        888,888

                      	 	 	
                        -

                      	 
	
                        PMSB

                      	 	
                        -

                      	 	 	
                        -

                      	 	 	
                        444,444

                      	 

              

            

          

        

      

    

     

    It
is agreed as follows:

     

    
      	
              1 

            	
              Definitions
      and Interpretations

            

    

     

    
      	
              1.1

            	
              Definitions

            

    

     

    
      In this
Agreement, unless the context otherwise requires:

    

    

    
      
        	
                Act

              	
                means
      the Companies Act 1965;

              
	 
      	 
      
	
                Articles

              	
                means
      the articles of association of the Company;

              
	 
      	 
      
	
                Board

              	
                means
      the board of directors of the Company;

              
	 
      	 
      
	
                Business

              	
                means
      the business of the Company as defined in Clause 8.1;

              
	 
      	 
      
	
                Conversion
      Shares

              	
                means
      the Shares resulting from the conversion of the RCPS, such Conversion
      Shares to rank pari passu in all respects with all other then existing
      Shares, and “Conversion Share” means one (1) of the Conversion
      Shares;

              
	 
      	 
      
	
                Director

              	
                means
      any director of the Company appointed on the Board including, where
      applicable, any alternate
director;

              

      

    

    
      
         

      

      
        Page
| 2

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  Encumbrance

                	
                  means
      any mortgage, charge, pledge, lien, assignment, hypothecation, security
      interest, title retention, right of first refusal, pre-emption right,
      option, preferential right or trust arrangement or other security
      arrangement or agreement  conferring a right to a priority of
      payment;

                
	 
      	 
      
	
                  Investors

                	
                  means
      MTDC, PMSB and any other person acceding to this
  Agreement;

                
	 
      	 
      
	
                  IPO

                	
                  means
      the listing of the Company on any approved stock
  exchange;

                
	 
      	 
      
	
                  Parties

                	
                  means
      the Existing Shareholder, MTDC, PMSB, and the Company, and “Party” refers
      to any one (1) of them;

                
	 
      	 
      
	
                  PMSB

                	
                  means
      Prima Mahawangsa Sdn Bhd (Company No. 833152-M), a company incorporated in
      Malaysia with a registered address at 5th Floor, Bangunan CIMB, Jalan
      Semantan, Damansara Heights , 50490 Kuala Lumpur;

                
	 
      	 
      
	
                  Public
      Authorities

                	
                  includes:

                   

                  (a)      any
      government in any jurisdiction, whether federal, state, provisional,
      territorial or local;

                   

                  (b)      any
      minister, department, officer, commission, delegate, instrumentality,
      agency, board, authority or organisation of any government or in which any
      government is interested;

                   

                  (c)      any
      non-government regulatory authority; or

                   

                  (d)      any
      provider of public utility services, whether or not government owned or
      controlled;

                
	 
      	 
      
	
                  Put
      Agreement

                	
                  means
      the Put Agreement dated 28 May 2008 entered into by MTDC with the Existing
      Shareholder;

                
	 
      	 
      
	
                  RCPS

                	
                  means
      Series A RCPS, Series B RCPS and/or Series C RCPS;

                
	 
      	 
      
	
                  RM

                	
                  means
      the lawful currency of Malaysia;

                
	 
      	 
      
	
                  Series
      A Director

                	
                  means
      the director as defined in Clause 6.1(a);

                
	 
      	 
      
	
                  Series
      B Director

                	
                  means
      the director as defined in Clause 6.1(c);

                
	 
      	 
      
	
                  Series
      C Director

                	
                  means
      the director as defined in Clause 6.1(a);

                
	 
      	 
      
	
                  Series
      A RCPS

                	
                  means
      Series A Redeemable Convertible Preference Shares of the Company with
      principal terms as set out in Schedule
1;

                

        

      

    

     

    
      
        
        

      

      
        Page
| 3

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Series
      B RCPS

              	
                means
      Series B Redeemable Convertible Preference Shares of the Company with
      principal terms as set out in Schedule 3;

              
	 
      	 
      
	
                Series
      C RCPS

              	
                means
      Series C Redeemable Convertible Preference Shares of the Company with
      principal terms as set out in Schedule 4;

              
	 
      	 
      
	
                Shareholders

              	
                means
      the shareholders of the Company from time to time;

              
	 
      	 
      
	
                Shares

              	
                means
      ordinary shares of RM1.00 each in the share capital of the Company, and
      “Share” refers to
      any one (1) of them;

              
	 
      	 
      
	
                Subscription
      Price

              	
                means
      the Ringgit Malaysia equivalent to the subscription price paid in USD for
      the RCPS calculated at the prevailing exchange rate on the
      date  payment of the Subscription Price is effected, paid by the
      respective Investors for each RCPS, out of which RM0.01 is to be paid
      towards the par value of each RCPS and the difference between the
      Subscription Price and the par value of RM0.01 (constituting the
      subscription premium) is to be credited to the share premium account of
      the Company;

              
	 
      	 
      
	
                USD

              	
                means
      the lawful currency of United States of America; and

              
	 
      	 
      
	
                Warranties

              	
                means
      the representations and warranties made by the Investors, the
      Existing  Shareholder and the Company, as set out in Schedule
      2.

              

      

    

     

    
      	
              1.2

            	
              Interpretation

            

    

     

    
      In this
Agreement, unless the context otherwise requires:

    

    
      	
               
      

            	
              (a) 

            	
              headings
      and underlining are for convenience only and do not affect the
      interpretation of this Agreement;

            

    

     

    
      	
               
      

            	
              (b) 

            	
              words
      importing the singular include the plural and vice
  versa;

            

    

     

    
      	
               
      

            	
              (c) 

            	
              words
      importing a gender include any
gender;

            

    

     

    
      	
               
      

            	
              (d) 

            	
              an
      expression importing a natural person includes any corporation or other
      body corporate, partnership, association, governmental agency, two or more
      persons having a joint or common interest, or any other legal or
      commercial entity or undertaking;

            

    

     

    
      	
               
      

            	
              (e) 

            	
              a
      reference to a party to a document includes that party's successors and
      permitted assigns;

            

    

     

    
      	
               
      

            	
              (f) 

            	
              any
      part of speech or grammatical form of a word or phrase defined in this
      Agreement has a corresponding meaning;
and

            

    

     

    
      
         

      

      
        Page
| 4

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (g) 

            	
              a
      warranty, representation, covenant or agreement on the part of two or more
      persons binds them jointly and
severally.

            

    

     

    
      	
              2.

            	
              [Deleted]

            

    

     

    
      	
              3.

            	
              [Deleted]

            

    

     

    
      	
              4.

            	
              [Deleted]

            

    

     

    
      	
              4A.

            	
              Effective
      Date

            

    

     

    Notwithstanding
that this Agreement is executed simultaneously with the Series C Subscription
Agreement, the Parties agree that this Agreement shall only take effect on the
Initial Closing Date (as defined in the Series C Subscription
Agreement).

     

    
      	
              5.

            	
              Undertakings,
      Warranties and Representations by the
Parties

            

    

     

    
      	
              5.1

            	
              Subject
      to any exceptions expressly and specifically disclosed in any
      correspondence, communication, document or information in writing prior to
      the execution of this Agreement, the Parties warrant to each other that
      the information and statements set out in the Warranties are true,
      accurate and correct in all respects at the date of this
      Agreement.

            

    

     

    
      	
              5.2

            	
              The
      Parties acknowledge and agree that each of them entered into this
      Agreement and the subscription by the Investors for the RCPS is in
      reliance on the Warranties.

            

    

     

    
      	
              5.3

            	
              Each
      of the Warranties is separate and is to be construed independently of the
      others and is not limited by reference to any of the other
      Warranties.

            

    

     

    Save as
disclosed to the Investors in any correspondence, communication, document or
information in writing prior to the execution of this Agreement, no information
relating to the RCPS or the Company will limit the nature of the Warranties
given by the Company under this Agreement, or will prejudice any claim to be
made by the Investors against the Company for any breach of the
Warranties.

     

    Each of
the Party will indemnify and will keep the other Parties indemnified against all
losses, damages, costs and expenses which the other Parties may incur or be
liable for in respect of any claim, demand, liability, action, proceedings or
suits arising out of or in connection with:

     

    
      	
               
      

            	
              (a)

            	
              a
      breach of a Warranty;

            

    

     

    
      	
               
      

            	
              (b)

            	
              any
      Warranty not being true and correct in all respects;
  or

            

    

     

    
      	
               
      

            	
              (c)

            	
              any
      Warranty being misleading in any
respect,

            

    

     

    save and
except where any of the matters set out in paragraphs 5.1 to 5.3 above shall
have been apparent in any correspondence, communication, document or information
in writing and  disclosed or provided to the Investors prior to the
execution of this Agreement.

    
      
         

      

      
        Page
| 5

        
          

        

      

      
         

      

    

     

    
      	
              6.

            	
              Management
      of the Company

            

    

     

    
      	
              6.1

            	
              Board
      of Directors

            

    

     

    
      The Board
shall comprise 8 directors of which:

    

     

    
      	
               
      

            	
              (a)

            	
              MTDC
      shall have the right to appoint two (2) directors comprising one Series A
      Director and 1 Series C Director. MTDC shall procure that (if relevant),
      the Series A Director and Series C Director shall, prior to his
      appointment as a director of the Company, provide a confidentiality and
      non-competition undertaking to the
Company;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Existing Shareholder shall have the right to appoint five (5) directors
      and such right shall include the appointment of the Chief Executive
      Officer; and

            

    

     

    
      	
               
      

            	
              (c)

            	
              PMSB
      shall have the right to appoint one (1) director (“Series B Director”) and
      PMSB shall procure that (if relevant), the Series B Director shall, prior
      to his appointment as a director of the Company, provide a confidentiality
      and non-competition undertaking to the
Company.

            

    

     

    MTDC
shall have the right to nominate an alternate to the Series A Director and
Series C Director and the Existing Shareholder shall have the right to nominate
an alternate director to such directors appointed under paragraph 6.1(b). PMSB
shall have the right to nominate an alternate to the Series B
Director.

     

    MTDC and
the Existing Shareholder will jointly appoint an independent director to the
Board with the requirement that the independent director has relevant
international industry experience in the Business and if such independent
director is appointed, the Existing Shareholder may only then appoint 4
directors.

     

    The right
of appointment of the Series A Director and Series C Director shall include the
right for MTDC to remove such persons at any time from such office and also the
right to determine from time to time the period which such persons shall hold
office as the Series A Director and Series C Director.  Upon MTDC
ceasing to be a shareholder in the Company, MTDC shall simultaneously procure
the resignation of the Series A Director and Series C Director . The Series A
Director and Series C Director may not be removed by the Existing Shareholder or
any other party except when MTDC ceases to be a shareholder in the
Company.  Any appointment or removal of the Series A Director
and/or  Series C Director by MTDC shall be made in writing and shall
be delivered to the registered office of the Company.

     

    
      The right
of appointment of the Series B Director shall include the right for PMSB to
remove such person at any time from such office and also the right to determine
from time to time the period which such person shall hold office as the Series B
Director.  Upon PMSB ceasing to be a shareholder in the Company, PMSB
shall simultaneously procure the resignation of the Series B Director. The
Series B Director may not be removed by the Existing Shareholder or any other
party except when PMSB ceases to be a shareholder in the Company.  Any
appointment or removal of the Series B Director by PMSB shall be made in writing
and shall be delivered to the registered office of the
Company.

    

    
      
         

      

      
        Page
| 6

        
          

        

      

      
         

      

    

     

    
      	
              6.2

            	
              Board
      Meetings

            

    

     

    The
quorum at all meetings shall be at least four (4) Directors and must include one
(1) Series A Director (or his alternate) or Series C Director (or his alternate)
and one (1) Series B Director (or his alternate). If a quorum is not
present within forty-five (45) minutes after the time appointed for the
commencement of a meeting of the Board, that meeting shall be adjourned to the
same time, seven (7) days after that meeting at the same place, provided that at
such adjourned meeting (for the same agenda), the quorum shall be any three (3)
Directors and must include one (1) Series A Director (or his alternate) or one
(1) Series C Director ( or his alternate).

     

    The
Directors may meet together either in person or by telephone, radio, video
conference or similar communication equipment or any other form of audio or
audio-visual instantaneous communication by which all persons participating in
the meeting are able to hear and be heard by all other participants and
participation in a meeting pursuant to this provision shall constitute presence
in person at such meeting.

     

    The
Company’s Articles shall be amended to provide that a quorum of the Board must
include at least one (1) Series A Director or one (1) Series C Director,
including at any adjourned meeting.

     

    
      	
              6.3

            	
              Provisions
      in respect of meetings

            

    

     

    Any
Director may at any time request for a meeting to be convened, subject to the
Board meeting at least once quarterly, unless otherwise agreed to by a vote of a
majority of Directors including at least one vote from a Series A Director
or  Series C Director and at least one (1) vote from a Series B
Director. The request for a meeting must be made in writing and delivered to the
company secretary of the Company.

     

    Upon
receiving the request, the company secretary is to issue a notice, giving at
least seven (7) days’ prior written notice to all Directors and their
alternates. The notice shall set out the date, time, venue and the agenda or
matters to be discussed for the Board meeting.  Such notice shall not
be required if all Directors are present or represented at the meeting or if the
absent Directors agree in writing to waive the requirement of such
notice.

     

    
      	
              6.4

            	
              Resolutions

            

    

     

    So long
as a quorum is present throughout the meeting of the Board in accordance with
clause 6.2, all resolutions or decisions of the Board are to be by a simple
majority of all the Directors present and capable of voting at the meeting of
the Board.

     

    
      	
              6.5

            	
              Circular
      resolution

            

    

     

    A written
resolution or minute of a decision made by the Board which is signed by all the
Directors is regarded as valid and effectual as if it had been passed at a duly
convened Board meeting. Any such written resolution or minute may consist of
several documents (or facsimiles thereof) in like form or in one or more
counterparts, each signed by one or more of the Directors, and all counterparts
taken together constitute one document.

    
      
         

      

      
        Page
| 7

        
          

        

      

      
         

      

    

     

    
      	
              6.6

            	
              No
      shareholding requirement

            

    

     

    The
Directors need not be shareholders of the Company and are not liable to retire
by rotation until removed/replaced by the Party nominating them.

     

    
      	
              6.7

            	
              Management

            

    

     

    The
operations of the Company will be managed by the Board, but the day to day
administration or management of the Company may be vested in a management
committee (“Management
Committee”) appointed by the Board from time to time who shall at all
times be responsible and subject to the control of the Board. The Management
Committee may comprise members of the Board.

     

    
      	
              6.8 

            	
              Nominees

            

    

     

    The
parties acknowledge that as the Series A Director and Series C Director
are  nominees of MTDC and that the Series B Director is a nominee of
PMSB, the Series A Director, Series C and the Series B Director shall be
entitled to report all matters concerning the Company, including but not limited
to matters discussed at any meeting of the Board, to MTDC and PMSB and their
shareholders respectively and that the Series A Director and Series C Director
may take advice and obtain instructions from MTDC whereas the Series B Director
may take advice and obtain instructions from PMSB.

     

    The
Company agrees to indemnify and keep the Series A Director, Series C Director
and Series B Director indemnified, subject to section 140 of the
Act.

     

    
      	
              7.

            	
              General
      meetings

            

    

     

    
      	
              7.1

            	
              General
      meetings

            

    

     

    Annual
general meetings and extraordinary general meetings are to be held in accordance
with the provisions of the Act.

     

    
      	
              7.2

            	
              Quorum

            

    

     

    The
quorum for all general meetings is two (2) persons being present throughout the
meeting, consisting of the holders of the Shares or their respective proxy,
attorney or authorised representative.

     

    
      	
              7.3

            	
              Decisions
      at meetings of the Shareholders

            

    

     

    
      	
              7.3.1

            	
              Ordinary
      Resolution

            

    

     

    So long
as a quorum is present throughout the meeting of the holders of the Shares in
accordance with clause 7.2, subject to clause 7.4, a simple majority vote of
those present and voting suffices to pass an ordinary
resolution.

    
      
         

      

      
        Page
| 8

        
          

        

      

      
         

      

    

     

    
      	
              7.3.2

            	
              Special
      Resolution

            

    

     

    The
approval of the holders of the Shares by way of special resolution (as defined
in the Act) is required for matters which require a special resolution to be
passed as specified in the Act.

     

    
      	
              7.4

            	
              Shareholder
      Reserve Matters

            

    

     

    The
resolutions in relation to the following matters require approval from all
holders of Shares present and voting at a general meeting or by circular
resolution (signed by all the holders of the Shares):

     

    
      	
               
      

            	
              (a)

            	
              any
      amendment to the Memorandum and Articles of Association of the
      Company;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      appointment or removal of any Director or senior management of the Company
      other than the Investors’ nominated directors;
  and

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      declaration of dividends by the
Company.

            

    

     

    
      	
              8.

            	
              Business
      of the Company

            

    

     

    
      	
              8.1

            	
              The
      core business of the Company, unless otherwise agreed in writing by the
      Investors, shall be developing, manufacturing, and distributing state of
      the art solutions for Gene Analysis (Gene Expression, and Genotyping) and
      stem cell research and cell biology (“Business”).  The
      Company will not engage in any other business which detracts from, or is
      not complementary to, the Business.

            

    

     

    
      	
              8.2

            	
              The
      Business is to be carried out in accordance with all applicable laws and
      requirements.

            

    

     

    
      	
              8.3

            	
              The
      Shareholders shall use its reasonable endeavours without being required to
      incur any further financial obligation (other than as expressly set out in
      this Agreement) to promote the interests of the Company. The Business is
      to be conducted in the Shareholders’ and the Company’s best interests on
      sound commercial profit-making principles so as to generate the maximum
      achievable maintainable profits available for distribution, and otherwise
      in accordance with the general principles as varied from time to time by
      agreement in writing between the
Parties.

            

    

     

    
      	
              8.4

            	
              The
      Company shall not, and the Existing Shareholder shall ensure that the
      Company shall not, without the prior written consent of the Investors or
      as expressly stated in this
Agreement:

            

    

     

    
      	
               
      

            	
              (a)

            	
              cease
      to conduct or carry on its Business substantially as now conducted and/or
      acquire or dispose of or dilute any interest in any other business,
      company, partnership or sole proprietorship;
and

            

    

     

    
      	
               
      

            	
              (b)

            	
              purchase,
      sell, mortgage or charge any substantial asset, or property or any
      material interest in those assets or property or sell or dispose of the
      whole or a substantial part of the undertaking and goodwill or the assets
      of the Company.

            

    

     

    
      
        
        

      

      
        Page
| 9

        
          

        

      

      
        
        

      

    

     

    
      	
              8.5

            	
              The
      Existing Shareholder and/or the Company shall ensure
  that:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      Company shall at all times carry on and conduct its business in a proper
      and efficient manner;

            

    

     

    
      	
               
      

            	
              (b)

            	
              each
      employee and consultant of the Company enters into a confidential
      information and inventions agreement (in a form acceptable to the
      Investors) with the Company;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      Company shall submit to the Investors without being formally
      requested:

            

    

     

    
      	
               
      

            	
              (i)

            	
              an
      annual budget and operating plan no later than sixty (60) days prior to
      the commencement of each fiscal
year;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              an
      annual business plan;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              audited
      financial statements on an interim and annual basis;
  and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              monthly
      reports, including financial reports, bank statements and technical
      reports.

            

    

     

    The
obligation of the Company to furnish the information set out in paragraph 8.5(c)
will cease when the Company completes its IPO or becomes subject to the
reporting provisions of any applicable stock exchange requirements or all of the
Investors cease to be a shareholder in the Company.

     

    
      	
               
      

            	
              (d)

            	
              at
      all times keep true accurate and up to date books and records of all the
      affairs of the Company;

            

    

     

    
      	
               
      

            	
              (e)

            	
              supply
      to the Investors such information relating to the Company as it may
      require and without prejudice to the foregoing shall keep the Investors
      fully and promptly informed as to all material developments regarding the
      Company’s financial and business affairs and promptly notify the Investors
      of any significant litigation or arbitration affecting or likely to affect
      the Company and of any bona fide offer to purchase or subscribe any share
      capital of the Company;

            

    

     

    
      	
               
      

            	
              (f)

            	
              at
      all times be adequately insured in respect of the assets of the company
      which are of an insurable nature and obtain life insurance for the core
      management team of the Company, the proceeds of which are payable to the
      Company; and

            

    

     

    
      	
               
      

            	
              (g)

            	
              upon
      the Company’s receipt of reasonable notice, the Investors may have access
      during normal business hours to relevant non-confidential information
      and/or non-competitive information requested by the Investors including
      the right to visit the Company’s business premises and inspect the
      Company’s record books.

            

    

     

    
      
        
        

      

      
        Page
| 10

        
          

        

      

      
        
        

      

    

     

    
      	
              9 

            	
              New
      Issues of Shares

            

    

     

    
      	
              9.1

            	
              New
      Issues by Company

            

    

     

    The
Shareholders agree that any new Shares and/or RCPS issued by the Company must be
with the prior approval of the Shareholders (“Offered Shares”) and the
Offered Shares shall be first offered to each of the Shareholders in proportion
to each of their shareholding in the Company at the time of the proposed new
issue other than:

     

    
      	
               
      

            	
              (i)

            	
              for
      the initial issuance of the Series A RCPS to MTDC and Series B RCPS to
      PMSB, EEV and KMP;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      issuance of the Series C RCPS pursuant to the Series C Subscription
      Agreement;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      Conversion Shares, where
applicable;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Shares
      issued pursuant to employee share option plans approved by a majority of
      the Board;

            

    

     

    
      	
               
      

            	
              (v)

            	
              Shares
      issued for merger or acquisition transactions;
  or

            

    

     

    
      	
               
      

            	
              (vi)

            	
              any
      issuance excepted from the right of first refusal by a majority of the
      Board.

            

    

     

    
      	
               
      

            	
              (vii)

            	
              any
      issue of new Shares to the Existing Shareholder for consideration in cash
      or in kind of up to 1,000,000 Shares, in addition to the initial share
      capital of RM300,000 contributed by the Existing Shareholder and for the
      avoidance of doubt, any such consideration in kind may comprise
      capitalization of the value (or part of the value) of intellectual
      property or other rights granted or undertakings pursuant to the product
      licensing agreement between the Existing Shareholder and the Company based
      on the valuation of USD10,000,000 agreed by the
  parties.

            

    

     

    
      	
              9.2

            	
              Offer
      to Shareholders

            

    

     

    An offer
of the Offered Shares shall be made by notice specifying the number of new
Shares and/or RCPS offered, the subscription price and limiting a period (not
being less than thirty (30) days) within which the offer, if not accepted, will
be deemed to be declined. Upon the expiration of such period the Board shall
offer the Offered Shares so declined to the other Shareholders who have notified
their willingness to take all or any of such Offered Shares in accordance with
the terms of the offer and in case of competition, pro rata (as nearly as
possible) according to the number of Shares and RCPS held by the other
Shareholders.

     

    
      	
              9.3

            	
              Waiver

            

    

     

    The
Existing Shareholder and PMSB irrevocably confirm their waiver of all rights of
pre-emption whatsoever that they may have in connection with the issue and
conversion of the Series C RCPS to MTDC pursuant to the terms of this Agreement
and the Series C Subscription Agreement.

     

    
      	
              10.

            	
              Transfers,
      Acquisitions and Disposal of Shares

            

    

     

    
      	
              10.1

            	
              Pre-emption
      Rights

            

    

     

    
      	
              10.1.1

            	
              The
      rights of the Shareholders to sell, transfer, assign, pledge, charge,
      encumber or otherwise dispose of their shareholding in the Company (or any
      part thereof) shall be subject to the restrictions and provisions set out
      below:

            

    

    
      
         

      

      
        Page
| 11

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (a)

            	
              In
      the event any Shareholder desires to dispose of all or any portion of
      their shareholding in the Company pursuant to a bona-fide third party
      offer for the shares (“Transferor”), the
      Transferor shall first afford the other Shareholders (“the Transferees”) a
      right of first refusal with regard to those shares (“the Relevant Shares”) in
      proportion to such Transferee’s shareholding in the Company. In this
      regard, the Transferor shall give the Transferees written notice
      (hereinafter called a “Transfer Notice”) of the
      Transferor’s intention to dispose of the Relevant Shares, which notice
      shall include the proposed transferee, the number of shares to be
      transferred, the price per share, and the terms of
  payment.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Upon
      receipt of the Transfer Notice, the Transferees shall have the option, but
      not the obligation, to purchase the Relevant Shares at either (i) the same
      terms and conditions price for the Relevant Shares as set forth in the
      Transfer Notice, or (ii) to request that the Shareholders appoint an
      independent firm (at the cost and expense of the Transferor) to determine
      the sale price per Relevant Share in accordance with the shareholders
      funds or the net tangible assets (whichever is lower) of the Company as at
      the date of the Transfer Notice (“the Prescribed
      Price”).

            

    

     

    
      	
               
      

            	
              (c)

            	
              In
      the event the Transferees determine to accept the terms contained in the
      Transfer Notice or upon the determination of and purchase of the Relevant
      Shares at the Prescribed Price, the Relevant Shares shall promptly be
      offered by the Transferor by notice in writing to the Transferees (and if
      there is more than one Transferee, to each Transferee in proportion to
      such Transferee’s shareholding in the Company) for purchase. Such offer
      shall be open for acceptance at any time within the Prescribed Period. The
      Prescribed Period shall commence on the date
  that:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Transferees notify the Transferor of their acceptance of the offer to
      purchase the Relevant Shares on the terms contained in the Transfer
      Notice; or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Prescribed Price is determined;

            

    

     

    and will
expire sixty (60) days thereafter, after either (i) or (ii) as applicable. The
Transferee(s) so accepting the offer shall hereinafter be called the
“Purchaser(s)”.

     

    
      	
               
      

            	
              (d)

            	
              If
      there is more than one (1) Purchaser, each Purchaser shall have the right
      to purchase the Relevant Shares pro rata in accordance with the ratio that
      his shareholding bears to the aggregate shareholdings of all the
      Purchasers provided that the said Purchaser must purchase all the Relevant
      Shares offered to him. Upon acceptance of such offer by the Purchasers
      within the Prescribed Period, the Transferor shall be bound to sell the
      Relevant Shares to the Purchasers as set forth above. The sale and
      purchase of the Relevant Shares shall be completed in accordance with the
      provisions herein.

            

    

     

    
      	
               
      

            	
              (e)

            	
              If
      the offer of the Relevant Shares shall not be accepted by the Transferees,
      then the Transferor shall be at liberty to transfer or dispose of the
      Relevant Shares within a period of three (3) months from the expiry of the
      Prescribed Period to the person identified in the Transfer Notice and in
      accordance with the terms thereof, subject to Clause 10.1.2
      below.

            

    

     

    
      
         

      

      
        Page
| 12

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (f)

            	
              Any
      transfer, disposal or sale of shares contemplated by this Clause 10.1.1
      shall be subject to the approval(s) of the Public Authorities should such
      approval be required in law or in practice. Completion and payment of the
      Prescribed Price shall take place not less than three (3) days nor more
      than ten (10) Business Days after the date of the receipt of such
      approval(s) of the Public
Authorities.

            

    

     

    
      	
               
      

            	
              (g)

            	
              Any
      transfer, disposal or sale of shares contemplated by Clause 10.1.1(e) to a
      third party purchaser shall be further subject to such third party
      purchaser entering into a deed or other suitable documentation agreeing to
      be bound by all the terms of this
Agreement.

            

    

     

    
      	
               
      

            	
              (h)

            	
              Notwithstanding
      anything contained herein, the restrictions on transfer of shares
      contained in this Clause 10 shall not apply in the case where the entire
      shareholdings or part thereof is to be transferred by MTDC to any of its
      holding company, subsidiaries or associated companies or any such transfer
      undertaken by MTDC pursuant to any internal restructuring scheme of MTDC
      and the consents of the other shareholders of the Company are deemed to be
      given for such transfer of shares by MTDC pursuant to this
      Clause.

            

    

     

    
      	
               
      

            	
              (i)

            	
              The
      procedures and pre-emption rights under this Clause 10 may be waived in
      writing by the Shareholders.

            

    

     

    
      	
              10.1.2

            	
              Pursuant
      to Clause 10.1.1(e), if the Existing Shareholder wishes to sell its shares
      to a third party, the Existing Shareholder shall ensure that the Investors
      be entitled (but not obliged) to sell any part of its holding of Shares to
      the third party on no less favourable terms and conditions as are
      applicable to the Existing Shareholder.  Upon any exercise by
      the Investors of this entitlement within thirty (30) days from the date of
      notice by the Existing Shareholder of such entitlement of the Investors,
      the Existing Shareholder shall not transfer or sell any of its shares to
      the third party unless the relevant shares of Investors are so purchased
      by the third party.

            

    

     

    
      	
              10.1.3

            	
              All
      third parties who acquire shares in the Company under this Clause 10shall
      enter into a deed of ratification and accession under which the third
      party shall agree to be bound by the obligations, and shall be entitled to
      the benefit, of this Agreement.

            

    

     

    
      	
              11

            	
              Put
      Options

            

    

     

    
      	
              11.1

            	
              Investors’
      Put Right for shares in the Existing
Shareholder

            

    

     

    The
Existing Shareholder has granted to MTDC an option to sell all the Series A RCPS
held by MTDC to the Existing Shareholder upon the terms and conditions of the
Put Agreement entered into between the Existing Shareholder and
MTDC.

     

    
      
        
        

      

      
        Page
| 13

        
          

        

      

      
        
        

      

    

     

    
      	
              11.2

            	
              Investors’
      Put Option for Series A RCPS or Conversion
  Shares

            

    

     

    MTDC
shall have the option to require the Existing Shareholder to purchase all (but
not less than all) of the Conversion Shares or Series A RCPS held by MTDC, upon
thirty (30) days’ notice in writing to the Existing Shareholder. The price
payable for each Conversion Share shall be calculated based on the formula for
the issue price per Conversion Share set out in paragraph 5 of Schedule 1 of
this Agreement whereas the price payable for each Series A RCPS is USD2.25, such
price compounded at the rate of 8% per annum with yearly rests, up to the date
of exercise of the option, and at the discretion of MTDC, may be satisfied by
either cash or the issuance of shares in the Existing Shareholder. The option
shall be exercisable as follows:

     

    
      	
               
      

            	
              (a)

            	
              any
      time after the Initial Closing of the Series A Subscription Agreement for
      as long as MTDC is the holder of Series A RCPS in the Company, in the
      event there is a material breach or default by the Company or the Existing
      Shareholder in any of their representations, warranties, undertakings,
      covenants and obligations under this Agreement which has not been remedied
      after thirty (30) days written notice of such material breach or default;
      or

            

    

     

    
      	
               
      

            	
              (b)

            	
              any
      time between 1 January 2011 and 31 December 2011 and subject to the
      following:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      share price of the Existing Shareholder’s shares is below USD2.25;
      or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              due
      to any breach or default attributable to the Existing Shareholder, the
      Investor is unable to exercise its rights under the Put
      Agreement.

            

    

     

    This
clause applies only to any Conversion Shares resulting from the conversion of
the Series A RCPS.

     

    
      	
              12.

            	
              Duration
      and Termination

            

    

     

    Subject
to the provisions of this Clause 12, this Agreement shall take effect without
limit in point of time.  If the Investors or the Existing Shareholder
sells or transfers all of its shares in the Company or if the Investors redeems
or exchanges all the RCPS to the shares in the Existing Shareholder, in
accordance with the provisions of this Agreement or the Articles (to the extent
not inconsistent with this Agreement) or the Put Agreement respectively, it
shall be released from all of its rights and obligations under this Agreement
and cease to be a party to this Agreement, and all obligations of that Party and
all entitlements and requirements relating to that Party under this Agreement
will cease.  If following any such sale, transfer, redemption or
exchange, two (2) or more parties continue to be bound by this Agreement, this
Agreement shall continue in full force and effect as between those
parties.

     

    
      	
              13.

            	
              Previous
      Agreements and Prevalence of
Agreement

            

    

     

    
      	
              13.1

            	
              This
      Agreement constitutes the entire agreement between the Parties with
      respect of the matters dealt with here and the Parties hereby mutually
      agree and confirm that the Shareholders’ Agreement, DA and KMP DA shall be
      terminated with effect from the date of this Agreement and be superseded
      by this Agreement.

            

    

     

    
      
         

      

      
        Page
| 14

        
          

        

      

      
         

      

    

     

    
      	
              13.2

            	
              This
      Agreement and the documents referred to in its provisions are in
      substitution for all previous agreements between all or any of the Parties
      and contain the whole agreement between the Parties relating to the
      subject matter of this Agreement.

            

    

     

    
      	
              13.3

            	
              If,
      during the continuance of this Agreement, there is any conflict between
      this Agreement and the Articles, the provisions of this Agreement shall
      prevail between the Parties.  In the event of such conflict
      arising, the Parties shall procure and take all necessary steps including
      effecting such alteration to the Articles as may be necessary to resolve
      such conflict.

            

    

     

    
      	
              14.

            	
              Remedy
      on an Event of Default

            

    

     

    
      	
              14.1

            	
              Each
      of the following will be regarded as an Event of
  Default:

            

    

     

    
      	
               
      

            	
              (a)

            	
              any
      of the Shareholders committing a breach of its obligations under this
      Agreement and, in the case of a breach capable of remedy, failing to
      remedy the same within twenty one (21) days of being specifically required
      in writing so to do by the other Shareholder;
or

            

    

     

    
      	
               
      

            	
              (b)

            	
              any
      distress, execution, sequestration or other process being levied or
      enforced upon or sued out against the property of any of the Shareholders
      which is not discharged within ten (10) days;
or

            

    

     

    
      	
               
      

            	
              (c)

            	
              any
      encumbrancer taking possession of or a receiver or trustee being appointed
      over the whole or any part of the undertaking, property or assets of any
      of the Shareholders; or

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      making of an order or the passing of a resolution for the winding up of
      any of the Shareholders, otherwise than for the purpose of a
      reconstruction or amalgamation without insolvency or previously approved
      by the other Shareholder (such approval not to be unreasonably
      withheld).

            

    

     

    
      	
              14.2

            	
              In
      the event of an Event of Default taking
place,

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      non-defaulting Shareholder shall be entitled to terminate this Agreement;
      or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      deadlock provisions referred to in clause 16 shall
  apply,

            

    

     

    
      	
               
      

            	
              without
      prejudice to any rights or remedies the non-defaulting Shareholder may
      have against the defaulting Shareholder for any antecedent
      breach.

            

    

     

    
      	
              14.3

            	
              Notwithstanding
      any provision in this Agreement to the contrary, this Agreement shall
      remain in full force and effect for so long as shall be necessary to
      fulfil and give effect to the arrangements and undertakings contained in
      this Agreement.

            

    

     

    
      	
              14.4

            	
              Termination
      of this Agreement for any cause in accordance with the provisions of this
      Agreement shall not release any Shareholder from any liability which at
      the time of termination has already accrued to the other or which
      thereafter may accrue in respect of any act or omission prior to such
      termination or which has accrued in consequence of this
      clause.

            

    

     

    
      
         

      

      
        Page
| 15

        
          

        

      

      
         

      

    

     

    
      	
              15.

            	
              Confidentiality

            

    

     

    Parties
shall:

     

    
      	
               
      

            	
              (a)

            	
              ensure
      the confidentiality of this Agreement and the transactions contemplated in
      this Agreement;

            

    

     

    
      	
            	
              (b)

            	
              not
      disclose any provision of this Agreement
except:

            

    

     

    
      	
               
      

            	
              (i)

            	
              where
      required by law or any relevant governmental regulatory body or competent
      authority;

            

    

     

    
      	
            	
              (ii) 

            	
              to
      any financier or professional adviser acting for the party;
    or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      information is public knowledge otherwise than as a consequence of breach
      of this Clause.

            

    

     

    
      The
Existing Shareholder and the Company are permitted to disclose the names of the
Parties or make reference to the Parties contributions to the Company. For
purposes deemed necessary for the furtherance of the Business, the
confidentiality obligation in this Agreement does not cover the names of the
Parties and their respective interests in the Company.

    

     

    
      This
restriction continues to apply after the expiration or sooner termination of
this Agreement without limit in point of time but ceases to apply to information
or knowledge which may properly come into the public domain through no fault of
the Party so restricted.

    

     

    
      	
              16.

            	
              Deadlock

            

    

     

    
      	
              16.1

            	
              Disputes

            

    

     

    If the
Shareholders or their respective representatives are unable to reach agreement
in relation to any reserved matter provided for in Clause 7.4 or there is an
Event of Default pursuant to Clause 14 or otherwise in relation to any matter of
material importance to the future conduct of the Business, the meeting at which
such resolution is tabled shall be adjourned for 30 days (or such other number
of days as the Parties may agree) during which the Parties, through Alnoor
Shivji and the Chief Executive Officer of MTDC, shall mutually discuss in order
to resolve the deadlock. Alnoor Shivji and the
Chief Executive Officer of MTDC shall endeavour to resolve any disagreement in
the best interest of the Company as a whole.

     

    
      	
              17.

            	
              Further
      Assurance

            

    

     

    Each
party shall execute and do all such documents and things as are necessary to
carry this Agreement into effect or to give full effect to this
Agreement.

     

    
      	
              18.

            	
              Remedies

            

    

     

    If a
Party does not comply with its obligations under this Agreement, the other Party
is entitled to the remedy of specific performance and injunctive relief (as may
be applicable), and monetary compensation by itself is not an adequate
remedy.

    
      
         

      

      
        Page
| 16

        
          

        

      

      
         

      

    

     

    
      	
              19. 

            	
              Waiver
      and Variation

            

    

     

    
      	
              19.1

            	
              Rights
      not affected

            

    

     

    The
rights which each Party has under this Agreement shall not be prejudiced or
restricted by any delay in exercising or failure to exercise any right or remedy
under this Agreement.  Unless otherwise agreed in writing, no waiver
by any Party in respect of a breach shall operate as a waiver in respect of any
subsequent breach.

     

    
      	
              19.2

            	
              Cumulative
      rights and remedies

            

    

     

    The
rights and remedies provided in this Agreement are in addition to, and do not
exclude or limit, any rights or remedies provided by law.

     

    
      	
              19.3

            	
              Variation

            

    

     

    This
Agreement shall not be varied unless the variation is expressly agreed in
writing by each Party.

     

    
      	
              20.

            	
              Severability

            

    

     

    If any
provision of this Agreement is void or unenforceable, by operation of law or by
any reason whatsoever, it shall be regarded as deleted from this Agreement, and
the remaining provisions shall continue to apply.

     

    
      	
              21.

            	
              Continuing
      Effect

            

    

     

    Notwithstanding
the completion of the transaction contemplated in this Agreement, the provisions
of this Agreement shall continue to survive or subsist so long as may be
necessary for the purpose of giving effect to each of them.

     

    
      	
              22.

            	
              Time

            

    

     

    Time
wherever mentioned in this Agreement shall be of the essence of this
Agreement.

     

    
      	
              23.

            	
              Legal
      Relationship

            

    

     

    Nothing
in this Agreement shall create, or be regarded as creating, a partnership or the
relationship of employer and employee between the Parties. Neither Party has any
authority to bind the other in any way.

     

    
      	
              24.

            	
              Costs
      and Expenses

            

    

     

    Each
Party shall bear its own costs (including legal fees) and expenses in respect of
the preparation and execution of this Agreement.

    
      
         

      

      
        Page
| 17

        
          

        

      

      
         

      

    

     

    
      	
              25.

            	
              Assignment;
      Successors

            

    

     

    
      	
              25.1

            	
              Assignment

            

    

     

    Parties
shall not assign or otherwise deal with its respective rights or benefits under
this Agreement without the prior written consent of the other
Parties.

     

    
      	
              25.2

            	
              Successors
      and assigns

            

    

     

    This
Agreement shall be binding upon the Parties and their respective successors,
permitted assigns and personal representatives.

     

    
      	
              26.

            	
              Notices

            

    

     

    
      	 	
              Without
      affecting any other effective mode of service, any notice given under this
      Agreement:

            

    

     

    
      	
               
      

            	
              (a)

            	
              must
      be in writing and may be delivered personally or sent by registered post
      to the intended recipient at the address shown below or the address last
      notified by the intended recipient to the
  sender:

            

    

     

    For the
Investors:

    MTDC

    Level
8-9, Menara Yayasan Tun Razak,

    Jalan
Bukit Bintang,

    55100
Kuala Lumpur

    Attn:
Norhalim Bin Yunus , Chief Executive Officer

    Tel:
03-2172 6000

    Fax:
03-2163 7542

     

    PMSB

    5th
Floor, Bangunan CIMB,

    Jalan
Semantan, Damansara Heights,

    50490
Kuala Lumpur

    Attn:
Darawati Hussain

    Tel: +603
2084 8888

    Fax: +603
2093 9688

    or

    c/o

    Trupartners
Sdn Bhd

    M-2-1,
Block M,

    Plaza
Damas,

    
      
         

      

      
        Page
| 18

        
          

        

      

      
         

      

    

     

    60 Jalan
Sri Hartamas 1,

    54080
Kuala Lumpur

    Attn:
Norazharuddin Abu Talib

    Tel: +603
6203 3030

    Fax: +603
6203 3131

     

    For the
Existing Shareholder:

    Wafergen
Bio-Systems Inc

    7400
Paseo Padre Parkway

    Fremont,
CA 94555, USA

    Attn:
Alnoor Shivji

    Tel: +1
(510) 468-0546

    Fax: +1
(510) 651-4599

     

    For the
Company:

    Wafergen Biosystems (M) Sdn
Bhd

    Suite
B.3(2), Ground Floor

    KHTP
Business Centre

    KHTP,
09000 Kulim

    Kedah
Darul Aman, Malaysia

    Tel:
+6019 312 4751

    Fax: +604
402 3305

    Attn:
Nazri Said

     

    
      	
               
      

            	
              (b)

            	
              must
      be signed; and

            

    

     

    
      	
               
      

            	
              (c)

            	
              will
      be taken to be duly given or made:

            

    

     

    
      	
               
      

            	
              (i)

            	
              (in
      the case of delivery in person) when delivered, received or left at the
      above address; and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              (in
      the case of delivery by registered post) 48 hours after posting, and in
      proving service it shall only be necessary to prove that the communication
      was contained in an envelop which was duly addressed and posted in
      accordance with this Clause,

            

    

     

    
      but if
delivery, receipt or service occurs, or will be taken to occur, on a day on
which business is not generally carried on in the place to which the
communication is sent or is later than 4 p.m. (local time) it will be taken to
have been duly given or made at the commencement of business on the next day on
which business is generally carried on in the place.

    

    
      
         

      

      
        Page
| 19

        
          

        

      

      
         

      

    

     

    
      	
              27.

            	
              Entire
      agreement

            

    

     

    This
Agreement is the entire agreement between the Parties in respect of its subject
matter and supersedes all previous agreements with respect to its subject
matter.

     

    
      	
              28.

            	
              Counterparts

            

    

     

    This
Agreement may be executed in any number of counterparts, and all counterparts
taken together constitute one and the same instrument.

     

    
      	
              29.

            	
              Governing
      Law and Jurisdiction

            

    

     

    This
Agreement is governed by the laws of Malaysia, and each party submits to the
non-exclusive jurisdiction of the courts exercising jurisdiction in
Malaysia.

    
      
         

      

      
        Page
| 20

        
          

        

      

      
         

      

    

     

    SCHEDULE
1

     

    Principal
Terms of the Series A RCPS

     

    
      	
              1.

            	
              Subscription
      Price and par value

            

    

     

    The
subscription price for each Series A RCPS shall be Ringgit Malaysia equivalent
to USD2.25 calculated at the prevailing exchange rate on the on the date payment
of the Subscription Price is effected .  Each Series A RCPS shall have
a par value of RM0.01.

     

    
      	
              2. 

            	
              Premium

            

    

     

    Each
Series A RCPS shall be issued at a premium being the difference between the
Subscription Price and the par value of RM0.01.

     

    
      	
              3.

            	
              Dividend
      Provision

            

    

     

    There is
no specific dividend rate attached to the Series A RCPS and the Company is not
obliged to declare and pay any dividend while the Investors are holding the
Series A RCPS.

     

    
      	
              4.

            	
              Liquidation
      Preference

            

    

     

    In the
event of any liquidation, dissolution or winding up of the Company, the holders
of the Series A RCPS will be entitled to receive only in preference to the
holders of Shares, and not the Series B RCPS (which rank pari passu for the
purposes of this provision), the relevant Subscription Price paid for the Series
A RCPS plus all accrued but unpaid dividends and dividends in arrears, if
any.

     

    
      	
              5. 

            	
              Conversion

            

    

     

    Each
holder of the Series A RCPS will have the right, at the option of the holder at
any time, to convert all or part of the Series A RCPS into such number of Shares
as may be determined in accordance with the following formula:

     

    

     

    
      	
               
      

            	
              A

            	
              represents
      the aggregate original investment amount in USD (comprising the
      subscription moneys paid to the Company for subscription for RCPS) of the
      holder in the Company

            

    

    

    
      	
               
      

            	
              B

            	
              represents
      the aggregate original investment amount in USD (comprising the
      subscription moneys paid to the Company for subscription for RCPS) of all
      other holders (past and present) of RCPS in the
  Company

            

    

    
      
         

      

      
        Page
| 21

        
          

        

      

      
         

      

    

    

    The
conversion is to be effected by and subject to the redemption of the Series A
RCPS from funds legally available for distribution at the redemption price of
USD2.25 per Series A RCPS and the issuance of such number of new Shares to the
holder with the issue price based on the following formula:

    

    
      
        
          
            	
                    Issue
      price per Share

                  	
                    =

                  	
                    A

                  	 
	 
      	 
      	
                    N

                  	 

          

        

      

    

    

    and
applying the redemption monies towards such issue price.

    

    PROVIDED
THAT

     

    
      	
               
      

            	
              (i)

            	
              where
      N includes any fractions, N is to be rounded downwards to the nearest
      whole number

            

    

     

    
      	
               
      

            	
              (ii)

            	
              where
      the number of new Shares to be issued includes any fractions, such number
      of new Shares is to be rounded downwards to the nearest whole
      number

            

    

     

    
      	
               
      

            	
              (iii)

            	
              where
      the issue price includes any fractions of sen, the issue price is to be
      rounded downwards to the nearest
sen

            

    

     

    
      	
               
      

            	
              For
      the purposes of this provision:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      amount in USD of the investment amount is based on the value in USD of the
      subscription moneys as at the respective date(s) of the relevant
      subscription(s).

            

    

     

    
      	
               
      

            	
              (b)

            	
              for
      the avoidance of doubt, where any RCPS has been held by more than one
      holder, such RCPS and investment amount in relation to the RCPS, is to be
      counted only once.

            

    

     

    To effect
the above conversion, a conversion notice shall be sent by the holder(s) of the
Series A RCPS to the Company not less than thirty (30) days before the intended
date of conversion.  Such notice shall be in writing and shall fix the
date and the time for the conversion.

     

    The
Company may from time to time consult with, and make proposals to, the holder(s)
of Series A RCPS in relation to the exercise of the holder(s)’ entitlement to
convert the Series A RCPS.

     

    Completion
of the conversion of the Series A RCPS into Conversion Shares shall be effected
at the registered office of the Company unless agreed otherwise by the holder(s)
of the Series A RCPS and the Company.  On the date fixed for
conversion, the holder(s) of the Series A RCPS shall deliver to the Company the
share certificate(s) for the relevant Series A RCPS in exchange for share
certificates in relation to the relevant amount of Conversion Shares resulting
from the conversion of those Series A RCPS.  If any share certificate
so delivered to the Company relates to any Series A RCPS which are not to be
converted on that day, a fresh share certificate for those Series A RCPS shall
be immediately issued by the Company to such holder(s).

    
      
         

      

      
        Page
| 22

        
          

        

      

      
         

      

    

     

    
      	
              6.

            	
              [Deleted]

            

    

     

    
      	
              7.

            	
              Redemption
      Rights

            

    

     

    The
holders of the Series A RCPS may at any time after 31 December 2011, subject to
the completion of the PMSB Subsequent Closing or EEV Subsequent Closing (where
relevant), by giving a thirty (30) day notice of redemption in such form as may
be acceptable to the Company (“Notice of Redemption”), redeem
any or all Series A RCPS registered in the name of the holder of the Series A
RCPS. The RCPS will be redeemable from funds legally available for distribution
at the redemption price (“Redemption Price”) which
comprises a par value of RM0.01 with redemption premium equivalent to the
difference between (i) the aggregate of the Subscription Price and such price
multiplied at the rate of 20% per annum prorated by day, up to the date of the
redemption based on a 365-days year (and without any compounding or addition to
the principal Subscription Price) and (ii) the par value of RM0.01 per Series A
RCPS plus all accrued but unpaid dividends and dividends in arrears, if
any.   

     

    All
redemption of the Series A RCPS shall be effected at the registered office of
the Company unless agreed otherwise by the holder(s) of the Series A RCPS and
the Company.  On the date fixed for redemption, the holder(s) of the
Series A RCPS shall deliver to the Company the share certificate(s) for the
relevant Series A RCPS in exchange for payment in cash (by way of bank draft or
any other manner acceptable to the holder(s)) by the Company of the aggregate
Redemption Price for the time being payable for those Series A
RCPS.  If any share certificate so delivered to the Company relates to
any Series A RCPS which are not to be redeemed on that day, a fresh share
certificate for those Series A RCPS shall be issued by the Company to such
holder(s).

     

    No Series
A RCPS redeemed by the Company shall be capable of reissue.

     

    
      	
              8.

            	
              Voting
      Rights

            

    

     

    The
holder of the Series A RCPS will be entitled to the voting rights as referred to
in Section 148(2) of the Act.

     

    
      	
              9.

            	
              Protective
      Provisions

            

    

     

    Without
the approval of the holders of at least a majority of the Series A RCPS, the
Company will not take any action, whether by merger, consolidation or otherwise,
that:

     

    
      	
               
      

            	
              (a)

            	
              effects
      a sale, lease, license or other disposition of all or substantially all of
      the Company’s assets, property or business or undertakings in excess of
      RM250,000.00,

            

    

     

    
      	
               
      

            	
              (b)

            	
              effects
      or enters into any agreement regarding any transaction, or series of
      transactions, which results in the holders of the Series A RCPS prior to
      the transaction owning less than 50% of the voting power of the Company’s
      Series A RCPS after the
transaction(s),

            

    

     

    
      	
               
      

            	
              (c)

            	
              alters
      or changes the rights, preferences or privileges of the Series A
      RCPS,

            

    

     

    
      	
               
      

            	
              (d)

            	
              increases
      or decreases the number of authorized Series A
  RCPS,

            

    

     

    
      
         

      

      
        Page
| 23

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (e)

            	
              authorises
      the issuance of securities having a preference over or on a parity with
      the Series A RCPS,

            

    

     

    
      	
               
      

            	
              (f)

            	
              changes
      the number of directors,

            

    

     

    
      	
               
      

            	
              (g)

            	
              amends,
      modifies or repeals the Memorandum of Association and/or Articles of the
      Company in a manner which adversely affects the holders of the Series A
      RCPS,

            

    

     

    
      	
               
      

            	
              (h)

            	
              effects
      any recapitalization or reorganization, or any voluntary or involuntary
      liquidation under applicable bankruptcy or reorganization legislation, or
      any dissolution, liquidation, or winding up of the
  Company,

            

    

     

    
      	
               
      

            	
              (i)

            	
              declares
      or pays dividends on or makes any distributions with respect to any share
      capital of the Company.

            

    

     

    For
purposes of these protective provisions, any reference to the Company will be
deemed to include any subsidiary of the Company.

     

    
      	
              10.

            	
              No
      Variation

            

    

     

    The
rights attached to the Series A RCPS shall not be varied, modified or deleted
unless in accordance with paragraph 9 above.

     

    [The remainder of this page is
intentionally left blank]

    
      
         

      

      
        Page
| 24

        
          

        

      

      
         

      

    

     

    SCHEDULE
2

    

    Representations
and Warranties

     

    
      	
              1.

            	
              Representations
      and Warranties by the Investors

            

    

     

    The
Investors warrant to the Company as follows.

     

    
      	
               
      

            	
              1.1

            	
              Capacity and
      Authority

            

    

     

    The
Investors are duly incorporated and validly exist under the laws of Malaysia and
has the power to own its assets and carry on its business as now being
conducted.

     

    
      	
               
      

            	
              1.2

            	
              Power to execute this
      Agreement

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      Investors have the right, power and authority, and have taken or will take
      all action necessary, to validly execute, deliver and exercise its right,
      and perform its obligations under this
  Agreement;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Other
      than those set out in this Agreement, no other consent, approval,
      authorization or other order of any court, regulatory body, administrative
      agency or other order of any other governmental body is required for the
      execution and delivery by the Investors of this Agreement or the
      performance by the Investors of the transactions contemplated under this
      Agreement;

            

    

     

    
      	
               
      

            	
              (c)

            	
              This
      Agreement is a valid and binding obligation of the Investors and is
      enforceable against the Investors in accordance with its
      terms;

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      execution, delivery and performance of this Agreement will not violate any
      judgment, order or decree to which the Investors are subject and will not
      be inconsistent with any constitutional documents or contracts to which
      the Investors are a party to or otherwise binding on the Investors;
      and

            

    

     

    
      	
               
      

            	
              (e)

            	
              There
      is no action, proceeding, claim or investigation pending against the
      Investors before any court or administrative authority, which, if
      determined against the Investors, may reasonably be expected to have a
      material adverse effect on the Investors’ ability to perform the
      obligations hereunder.

            

    

     

    
      	
              2.

            	
              Representations
      and Warranties by the Existing Shareholder and the
  Company

            

    

     

    
      The
Existing Shareholder and the Company warrant to the Investors as
follows.

    

     

    
      	
               
      

            	
              2.1

            	
              Capacity and
      Authority

            

    

     

    The
Company is duly incorporated and validly exists under the laws of Malaysia and
has the power to own its assets and carry on the Business.

    
      
         

      

      
        Page
| 25

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.2

            	
              Power to execute this
      Agreement

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      Existing Shareholder and Company have the right, power and authority, and
      has taken or will take all action necessary, to validly execute, deliver
      and exercise its right, and perform its obligations under this
      Agreement;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Other
      than those set out in this Agreement, no other consent, approval,
      authorization or other order of any court, regulatory body, administrative
      agency or other order of any other governmental body is required for the
      execution and delivery by the Existing Shareholder and the Company of this
      Agreement or the performance by the Existing Shareholder and the Company
      of the transactions contemplated under this
  Agreement;

            

    

     

    
      	
               
      

            	
              (c)

            	
              This
      Agreement is a valid and binding obligation of the Existing Shareholder
      and the Company and after fulfillment of the conditions precedent is
      enforceable against the Existing Shareholder and the Company in accordance
      with its terms;

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      execution, delivery and performance of this Agreement will not violate any
      judgment, order or decree to which the Existing Shareholder and the
      Company is subject and save as otherwise disclosed, will not be
      inconsistent with any constitutional documents or contracts to which the
      Existing Shareholder and/or the Company is a party to or otherwise binding
      on the Existing Shareholder and/or the Company;
  and

            

    

     

    
      	
               
      

            	
              (e)

            	
              There
      is no action, proceeding, claim or investigation pending against the
      Existing Shareholder and/or the Company before any court or administrative
      authority, which, if determined against the Existing Shareholder and/or
      the Company, may reasonably be expected to have a material adverse effect
      on the Existing Shareholder and the Company’s ability to perform the
      obligations hereunder.

            

    

     

     [The remainder of this page is
intentionally left blank]

    
      
         

      

      
        Page
| 26

        
          

        

      

      
         

      

    

     

    SCHEDULE
3

     

    Principal
Terms of the Series B RCPS

     

    
      	
              1.

            	
              Subscription
      Price and par value

            

    

     

    The
subscription price for each Series B RCPS shall be Ringgit Malaysia equivalent
to USD2.25 calculated at the prevailing exchange rate on the on the date payment
of the Subscription Price is effected.  Each Series B RCPS shall have
a par value of RM0.01.

     

    
      	
              2. 

            	
              Premium

            

    

     

    Each
Series B RCPS shall be issued at a premium being the difference between the
Subscription Price and the par value of RM0.01.

     

    
      	
              3.

            	
              Dividend
      Provision

            

    

     

    There is
no specific dividend rate attached to the Series B RCPS and the Company is not
obliged to declare and pay any dividend while the Investors are holding the
Series B RCPS.

     

    
      	
              4.

            	
              Liquidation
      Preference

            

    

     

    In the
event of any liquidation, dissolution or winding up of the Company, the holders
of the Series B RCPS will be entitled to receive only in preference to the
holders of Shares, and not the Series A RCPS (which rank pari passu for the
purposes of this provision), the relevant Subscription Price paid for the Series
B RCPS (subject to adjustments for share dividends, splits, combinations and
similar events plus accrued dividends (other than any special dividends), if
any.

     

    
      	
              5. 

            	
              Conversion

            

    

     

    Each
holder of the Series B RCPS will have the right, at the option of the holder at
any time, to convert all or part of the Series B RCPS into such number of Shares
as may be determined in accordance with the following formula:

     

    

     

    
      	
               
      

            	
              A

            	
              represents
      the aggregate original investment amount in USD (comprising the
      subscription moneys paid to the Company for subscription for RCPS) of the
      holder in the Company

            

    

    

    
      	
               
      

            	
              B

            	
              represents
      the aggregate original investment amount in USD (comprising the
      subscription moneys paid to the Company for subscription for RCPS) of all
      other holders (past and present) of RCPS in the
  Company

            

    

    
      
         

      

      
        Page
| 27

        
          

        

      

      
         

      

    

     

    The
conversion is to be effected by and subject to the redemption of the Series B
RCPS from funds legally available for distribution at the redemption price of
USD2.25 per Series B RCPS and the issuance of such number of new Shares to the
holder with the issue price based on the following formula:

    

    
      
        
          
            	
                    Issue
      price per Share

                  	
                    =

                  	
                    A

                  	 
	 
      	 
      	
                    N

                  	 

          

        

      

    

    

    and
applying the redemption monies towards such issue price.

    

    PROVIDED
THAT

    

    
      	
               
      

            	
              (i)

            	
              where
      N includes any fractions, N is to be rounded downwards to the nearest
      whole number

            

    

     

    
      	
               
      

            	
              (ii)

            	
              where
      the number of new Shares to be issued includes any fractions, such number
      of new Shares is to be rounded downwards to the nearest whole
      number

            

    

     

    
      	
               
      

            	
              (iii)

            	
              where
      the issue price includes any fractions of sen, the issue price is to be
      rounded downwards to the nearest
sen

            

    

     

    For the
purposes of this provision:

     

    
      	
               
      

            	
              (a)

            	
              the
      amount in USD of the investment amount is based on the value in USD of the
      subscription moneys as at the respective date(s) of the relevant
      subscription(s).

            

    

     

    
      	
               
      

            	
              (b)

            	
              for
      the avoidance of doubt, where any RCPS has been held by more than one
      holder, such RCPS and investment amount in relation to the RCPS, is to be
      counted only once.

            

    

     

    To effect
the above conversion, a conversion notice shall be sent by the holder(s) of the
Series B RCPS to the Company not less than thirty (30) days before the intended
date of conversion.  Such notice shall be in writing and shall fix the
date and the time for the conversion.

     

    The
Company may from time to time consult with, and make proposals to, the holder(s)
of Series B RCPS in relation to the exercise of the holder(s)’ entitlement to
convert the Series B RCPS.

     

    Completion
of the conversion of the Series B RCPS into Conversion Shares shall be effected
at the registered office of the Company unless agreed otherwise by the holder(s)
of the Series B RCPS and the Company.  On the date fixed for
conversion, the holder(s) of the Series B RCPS shall deliver to the Company the
share certificate(s) for the relevant Series B RCPS in exchange for share
certificates in relation to the relevant amount of Conversion Shares resulting
from the conversion of those Series B RCPS.  If any share certificate
so delivered to the Company relates to any Series B RCPS which are not to be
converted on that day, a fresh share certificate for those Series B RCPS shall
be immediately issued by the Company to such holder(s).

    
      
         

      

      
        Page
| 28

        
          

        

      

      
         

      

    

     

    
      	
              6.

            	
              [Deleted]

            

    

     

    
      	
              7.

            	
              Redemption
      Rights

            

    

     

    
      The
holders of the Series B RCPS may at any time after 31 December 2011, subject to
the completion of the PMSB Subsequent Closing or EEV Subsequent Closing (where
relevant), by giving a thirty (30) day notice of redemption in such form as may
be acceptable to the Company (“Notice of Redemption”), redeem
any or all Series B RCPS registered in the name of the holder of the Series B
RCPS. The RCPS will be redeemable from funds legally available for distribution
at the redemption price (“Redemption Price”) which
comprises a par value of RM0.01 with redemption premium equivalent to the
difference between (i) the aggregate of the Subscription Price and such price
multiplied at the rate of 20% per annum prorated by day, up to the date of the
redemption based on a 365-days year (and without any compounding or addition to
the principal Subscription Price) and (ii) the par value of RM0.01 per Series B
RCPS plus all accrued but unpaid dividends and dividends in arrears, if
any.  

    

     

    All
redemption of the Series B RCPS shall be effected at the registered office of
the Company unless agreed otherwise by the holder(s) of the Series B RCPS and
the Company.  On the date fixed for redemption, the holder(s) of the
Series B RCPS shall deliver to the Company the share certificate(s) for the
relevant Series B RCPS in exchange for payment in cash (by way of bank draft or
any other manner acceptable to the holder(s)) by the Company of the aggregate
Redemption Price for the time being payable for those Series B
RCPS.  If any share certificate so delivered to the Company relates to
any Series B RCPS which are not to be redeemed on that day, a fresh share
certificate for those Series B RCPS shall be issued by the Company to such
holder(s).

     

    No Series
B RCPS redeemed by the Company shall be capable of reissue.

     

    
      	
              8.

            	
              Voting
      Rights

            

    

     

    The
holder of the Series B RCPS will be entitled to the voting rights as referred to
in Section 148(2) of the Act.

     

    
      	
              9.

            	
              Protective
      Provisions

            

    

     

    Without
the approval of the holders of at least a majority of the Series B RCPS, the
Company will not take any action, whether by merger, consolidation or otherwise,
that:

     

    
      	
               
      

            	
              (a)

            	
              effects
      a sale, lease, license or other disposition of all or substantially all of
      the Company’s assets, property or business or undertakings in excess of
      RM250,000.00,

            

    

     

    
      	
               
      

            	
              (b)

            	
              effects
      or enters into any agreement regarding any transaction, or series of
      transactions, which results in the holders of the Series B RCPS prior to
      the transaction owning less than 50% of the voting power of the Company’s
      Series B RCPS after the
transaction(s),

            

    

     

    
      	
            	
              (c)

            	
              alters
      or changes the rights, preferences or privileges of the Series B
      RCPS,

            

    

     

    
      	
            	
              (d) 

            	
              increases
      or decreases the number of authorized Series B
  RCPS,

            

    

     

    
      
         

      

      
        Page
| 29

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (e)

            	
              authorises
      the issuance of securities having a preference over or on a parity with
      the Series B RCPS,

            

    

     

    
      	
            	
              (f)

            	
              changes
      the number of directors,

            

    

     

    
      	
               
      

            	
              (g)

            	
              amends,
      modifies or repeals the Memorandum of Association and/or Articles of the
      Company in a manner which adversely affects the holders of the Series B
      RCPS,

            

    

     

    
      	
               
      

            	
              (h)

            	
              effects
      any recapitalization or reorganization, or any voluntary or involuntary
      liquidation under applicable bankruptcy or reorganization legislation, or
      any dissolution, liquidation, or winding up of the
  Company,

            

    

     

    
      	
               
      

            	
              (i)

            	
              declares
      or pays dividends on or makes any distributions with respect to any share
      capital of the Company.

            

    

     

    For
purposes of these protective provisions, any reference to the Company will be
deemed to include any subsidiary of the Company.

     

    
      	
              10.

            	
              No
      Variation

            

    

     

    The
rights attached to the Series B RCPS shall not be varied, modified or deleted
unless in accordance with paragraph 9 above.

    
      
         

      

      
        Page
| 30

        
          

        

      

      
         

      

    

     

    SCHEDULE
4

     

    Principal
Terms of the Series C RCPS

     

    
      	
              1.

            	
              Subscription
      Price and par value

            

    

     

    The
subscription price for each Series C RCPS at the Initial Closing shall be
Ringgit Malaysia equivalent to USD1.5462 calculated at the prevailing exchange
rate on the date of payment of the Initial Subscription Price is effected. The
subscription price for each Series C RCPS at the Subsequent Closing shall be
Ringgit Malaysia equivalent to USD2.3193 calculated at the prevailing exchange
rate on the date of payment of the Subsequent Subscription Price is effected.
Each Series C RCPS shall have a par value of RM0.01.

     

    
      	
              2. 

            	
              Premium

            

    

     

    Each
Series C RCPS shall be issued at a premium being the difference between the
Initial Subscription Price or Subsequent Subscription Price (as the case may be)
and the par value of RM0.01.

     

    
      	
              3.

            	
              Dividend
      Provision

            

    

     

    There is
no specific dividend rate attached to the Series C RCPS and the Company is not
obliged to declare and pay any dividend while the Investor is holding the Series
C RCPS.

     

    
      	
              4.

            	
              Liquidation
      Preference

            

    

     

    In the
event of any liquidation, dissolution or winding up of the Company, the holders
of the Series C RCPS will be entitled to receive only in preference to the
holders of Shares, and not the Series A RCPS and Series B RCPS (which rank pari
passu for the purposes of this provision), the relevant Initial Subscription
Price and Subsequent Subscription Price (as the case may be) paid for the Series
C RCPS plus all accrued but unpaid dividends and dividends in arrears, if
any.

     

    
      	
              5.

            	
              Conversion

            

    

     

    Each
holder of the Series C RCPS will have the right, at the option of the holder at
any time, to convert all or part of the Series C RCPS into such number of Shares
at a conversion ratio of one hundred-to-one (100 Series C RCPS : 1
Share).

     

    The
conversion is to be effected by way of consolidating the par value of every one
hundred Series C RCPS of RM0.01 each, into the total par value of RM1.00 of each
Share.

     

    To effect
the above conversion, a conversion notice shall be sent by the holder(s) of the
Series C RCPS to the Company not less than thirty (30) days before the intended
date of conversion.  Such notice shall be in writing and shall fix the
date and the time for the conversion.

     

    The
Company may from time to time consult with, and make proposals to, the holder(s)
of Series C RCPS in relation to the exercise of the holder(s)’ entitlement to
convert the Series C RCPS.

    
      
         

      

      
        Page
| 31

        
          

        

      

      
         

      

    

     

    Completion
of the conversion of the Series C RCPS into Conversion Shares shall be effected
at the registered office of the Company unless agreed otherwise by the holder(s)
of the Series C RCPS and the Company.  On the date fixed for
conversion, the holder(s) of the Series C RCPS shall deliver to the Company the
share certificate(s) for the relevant Series C RCPS in exchange for share
certificates in relation to the relevant amount of Conversion Shares resulting
from the conversion of those Series C RCPS.  If any share certificate
so delivered to the Company relates to any Series C RCPS which are not to be
converted on that day, a fresh share certificate for those Series C RCPS shall
be immediately issued by the Company to such holder(s).

     

    
      	
              6.

            	
              [Deleted]

            

    

     

    
      	
              7.

            	
              Redemption
      Rights

            

    

     

    
      	
              7.1

            	
              The
      Company may redeem any or all Series C RCPS registered in the name of the
      holder of the Series C RCPS at any time if the Company is prohibited from
      granting a loan to the Existing Shareholder using the proceeds from the
      issuance of the Series C RCPS due to legal or regulatory restrictions in
      Malaysia, by giving a Notice of Redemption. The Series C RCPS will be
      redeemable from funds legally available for distribution at the redemption
      price (“Redemption
      Price”) which comprises a par value of RM0.01 with redemption
      premium equivalent to the difference between (i) the aggregate of the
      Initial Subscription Price or Subsequent Subscription Price (as the case
      may be) and such price multiplied at the rate of 5% per annum prorated by
      day, up to the date of the redemption based on a 365-days year (and
      without any compounding or addition to the principal Initial Subscription
      Price or Subsequent Subscription Price (as the case may be)) and (ii) the
      par value of RM0.01 per Series C RCPS plus all accrued but unpaid
      dividends and dividends in arrears, if
any

            

    

     

    
      	
              7.2

            	
              All
      redemption of the Series C RCPS shall be effected at the registered office
      of the Company unless agreed otherwise by the holder(s) of the Series C
      RCPS and the Company.  On the date fixed for redemption, the
      holder(s) of the Series C RCPS shall deliver to the Company the share
      certificate(s) for the relevant Series C RCPS in exchange for payment in
      cash (by way of bank draft or any other manner acceptable to the
      holder(s)) by the Company of the aggregate Redemption Price for the time
      being payable for those Series C RCPS.  If any share certificate
      so delivered to the Company relates to any Series C RCPS which are not to
      be redeemed on that day, a fresh share certificate for those Series C RCPS
      shall be issued by the Company to such
  holder(s).

            

    

     

    
      No Series
C RCPS redeemed by the Company shall be capable of reissue.

    

     

    
      	
              8.

            	
              Voting
      Rights

            

    

     

    The
holder of the Series C RCCPS will be entitled to the voting rights as referred
to in Section 148(2) of the Act.

     

    
      	
              9.

            	
              Protective
      Provisions

            

    

     

    Without
the approval of the holder of the Series C RCPS, the Company will not take any
action, whether by merger, consolidation or otherwise, that:

    
      
         

      

      
        Page
| 32

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (a)

            	
              effects
      a sale, lease, license or other disposition of all or substantially all of
      the Company’s assets, property or business or undertakings in excess of
      RM250,000.00,

            

    

     

    
      	
               
      

            	
              (b)

            	
              effects
      or enters into any agreement regarding any transaction, or series of
      transactions, which results in the holders of the Series C RCPS prior to
      the transaction owning less than 50% of the voting power of the Company’s
      Series C RCPS after the
transaction(s),

            

    

     

    
      	
               
      

            	
              (c)

            	
              alters
      or changes the rights, preferences or privileges of the Series C
      RCPS,

            

    

     

    
      	
               
      

            	
              (d)

            	
              increases
      or decreases the number of authorized  Series C
      RCPS,

            

    

     

    
      	
               
      

            	
              (e)

            	
              authorises
      the issuance of securities having a preference over or on a parity with
      the Series C RCPS,

            

    

     

    
      	
               
      

            	
              (f)

            	
              changes
      the number of directors,

            

    

     

    
      	
               
      

            	
              (g)

            	
              amends,
      modifies or repeals the Memorandum of Association and/or Articles of the
      Company in a manner which adversely affects the holders of the Series C
      RCPS,

            

    

     

    
      	
               
      

            	
              (h)

            	
              effects
      any recapitalization or reorganization, or any voluntary or involuntary
      liquidation under applicable bankruptcy or reorganization legislation, or
      any dissolution, liquidation, or winding up of the
  Company,

            

    

     

    
      	
               
      

            	
              (i)

            	
              declares
      or pays dividends on or makes any distributions with respect to any share
      capital of the Company.

            

    

     

    For
purposes of these protective provisions, any reference to the Company will be
deemed to include any subsidiary of the Company.

     

    
      	
              10.

            	
              No
      Variation

            

    

     

    The
rights attached to the Series C RCPS shall not be varied, modified or deleted
unless in accordance with paragraph 9 above.

     

    
      
         

      

      
        Page
| 33

        
          

        

      

      
         

      

    

     

    Execution

     

    Executed
as an Agreement.

    

    
      
        
          	
                  Signed
      for and on behalf of WaferGen Bio-systems, Inc
      (WGBS.OB) in the presence
      of:

                	
                  

                	 
      
	 
      	 
      	 
      
	
                  Witness

                	 
      	
                  Signatory

                
	
                  Name:

                	 
      	
                  Name:

                
	
                  NRIC
      No:

                	 
      	
                  Designation:

                
	 
      	 
      	
                  NRIC
      No:

                

        

      

    

     

    
      
        
          	
                  Signed
      for and on behalf of Malaysian Technology Development
      Corporation Sdn Bhd
      (Company No 235796-U)
      in the presence of:

                	
                    

                	 
      
	 
      	 
      	 
      
	
                  Witness

                	 
      	
                  Signatory

                
	
                  Name:

                	 
      	
                  Name:

                
	
                  NRIC
      No:

                	 
      	
                  Designation:

                
	 
      	 
      	
                  NRIC
      No:

                

        

      

    

    
      
         

      

      
        Page
| 34

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  Signed
      for and on behalf of Prima Mahawangsa Sdn
      Bhd  (Company No 833152-M)
      in the presence of:

                	
                  

                	 
      
	 
      	 
      	 
      
	
                  Witness

                	 
      	
                  Signatory

                
	
                  Name:

                	 
      	
                  Name:

                
	
                  NRIC
      No:

                	 
      	
                  Designation:

                
	 
      	 
      	
                  NRIC
      No:

                

        

      

    

     

    
      
        
          	
                  Signed
      for and on behalf of Wafergen Biosystems (M) Sdn Bhd
      (formerly known
      as Global Dupleks Sdn Bhd) (Company No 795066-H) in
      the presence
      of:

                	
                  

                	 
      
	 
      	 
      	 
      
	
                  Witness

                	 
      	
                  Signatory

                
	
                  Name:

                	 
      	
                  Name:

                
	
                  NRIC
      No:

                	 
      	
                  Designation:

                
	 
      	 
      	
                  NRIC
      No:

                

        

      

    

     

    
      
         

      

      
        Page
| 35

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]