Legal Advice Letter Guidance

Date: * May * Sackie Kin Kin (SKK) Goods Overwrap Overlay Nano Implementation Enterprise (GOONIE) Bhd Bangunan GOONIE Dua Minuman Avenue Jalan Kapitan Herrssup * Shah Alam Selangor Malaysia To: (Please insert name of senior partner) Senior Partner (Please insert the name and address of your law firm) RE: NANO NANO ... ... ... HELP NEEDED IN THE NANOTECH CONSTRUCTION INDUSTRY This letter concerns the Amalgamated Systems Technology Applications Group (ASTAG), set up in the third quarter of *, to diversify our nano technology packaging material business into another form of business which could benefit from our nanotech expertise. On * January *, ASTAG entered into a contract with Lazz Russ Construction of HEbitable Noveau Domains for Assorted Nterprises as Going-Concerns (LR-CHEN-DANG) Sdn Bhd. LR-CHEN-DANG is a company specialising in the revival of old abandoned construction projects. Carefully selected abandoned projects are subject to fresh financing with partner banks and finance companies, a construction company is vetted for its technical expertise in being able to bring the project to a completion with the required time frame and allocated budget. MAS, in consultation with NISA, took the first steps on behalf of ASTAG in order to get the contractual details sorted out with LR-CHEN-DANG. This time around, the selected projects were then subjected to an ESG audit and ZOO promised * percent financing, with the remaining * percent to be sourced by LR-CHEN-DANG. Once the all of the initial preparatory work was done, ZUB started 3D printing the modular parts of the new building for assembly on site. The ASTAG and LR-CHEN-DANG partnership was therefore up and fully running by * March *. In addition to wide variety of expertise within ASTAG, LR-CHEN-DANG was also impressed with our portfolio of previous construction work, which included buildings for the following: [*] Kiss Auntie Sdn Bhd (KISS), a chocolate factory making confectionery under a US license; [*] Zirafah Hatsyi (ZIHA) Sdn Bhd, a rain forest safari complex; [*] Nana Honey (NANA) Sdn Bhd, a bee farm constructed with nano materials to mimic the structure of a bee hive; [*] Nasi Kandar Reza (NKR) Sdn Bhd, a famous exotic 'nasi campur' restaurant which moved into a newly constructed nano printed building which made cleaning of oil and grime very easy. Previously, due to the high volume of customers, the restaurant had difficulty keeping the place clean; [*] Shaking Ronald (SHARO) Sdn Bhd, a frozen drink business that started from a humble kiosk, and now had a stand alone nano-tech building. SHARO's milk shakes and sorbets have been featured on many foodie programmes. For our projects with LR-CHEN-DANG, we used Fitawa Masa Architectural Consultancy (FITAWA), a certified professional firm with Lembaga Arkitek Malaysia (LAM). For the quality control process, we also had Safa Rhul Consultant Quantity Surveying Technologist (SAFA), a prominent member of the Board of Quantity Surveyors (BQS). For all engineering and structural matters, ASTAG hired Leena Shata Consultant Engineers (SHATA) another well known firm with recognition from the Institute of Engineers Malaysia (IEM). Hence, all verifications for ASTAG projects have the required approvals and stamps of quality control. On * April *, it was reported on NKR's Instagram page that the restaurant was badly damaged in a fire. The story was picked up by various online news outlets and went viral. The gist of the story was this: NKR's brand spanking new nano-tech kitchen and dining premises has gone up in flames. The fire department investigating the matter has said that the nano material used in the construction of the kitchen was prone to drying out and therefore becoming unexpectedly flammable. What happened in this case is that most of the time, washing was carried out regularly post-construction. Hence, the material used in construction of the kitchen always retained some moisture (thus in reality was damp) and never truly got to dry out. Hence, that ensured that the nano tech material retained its fire resistance to the high heat capacity of water to the various burners used in the kitchen. The aid of the water content within the printed parts used in the construction has certainly helped a lot in ensuring fire resistance. However, due to the failure to conduct scheduled cleaning over a number of days, the 3D printed parts became dryer than usual, and the heat used in the cooking, therefore making it more prone to combustion. We understand that this slight tendency to combustibility is due to the materials slightly porous nature and therefore having a lot of airflow through it. This makes it great for circulation, but it also means that once ignited, it draws in a lot of air, in particular oxygen, that feeds the combustion. A dried out modular 3D printed nano-tech brick therefore could be a fire hazard, given the right circumstances. On * April *, we received the following email: From: bella@bellahariandpartners.com To: Sackie@GoonieBhd.com Dear Madam Kin Kin, We represent Kiss Auntie Sdn Bhd (KISS), Zirafah Hatsyi Sdn Bhd (ZIHA), Nana Honey Sdn Bhd (NANA), and Shaking Ronald (SHARO) Sdn Bhd, in addition to the now well known (due to going viral) Nasi Kandar Reza (NKR) Sdn Bhd. We think you will realise that these persons are your former clients who contracted with you to construct buildings using a modular 3D printing method utilising nano-tech materials. It would be of no surprise to you that NKR has instructed us to sue you for breach of the terms and conditions of the construction contract. (Note, please refer to the salient terms in Appendix A) As for the rest, they are exploring avenues for remedial construction work in the light of the recent developments with NKR. We have been made to understand that if you could replace or re-construct where necessary, the defective parts, they would go along with that. Yours sincerely, Bella. On * May *, LR-CHEN-DANG wrote to us, raising some concerns: From: LazzRuss@LR.CHEN.DANG.com.my To: Sackie@GoonieBhd.com Dear Madam Sackie, In the light of the events concerning Nasi Kandar Reza (NKR), we have concerns about the nanotech formula used in the 3D printing of the construction module blocks. It appears that the formula is not 'heat proof' as warranted by you during negitiations. It is also not consistent with your pre-contract warranty that the material is 'combustion resistant'. Our company was induced to enter into a contract with ASTAG not only because of those two representations, but also because of the following promises you made to us during our negotiations: [*] Nanotech materials used by the GOONIE Group is specially formulated to be environmentally friendly and is easy to re-cycle. We never expected that being easy to breakdown for re-cycling also meant that the construction material was easily flammable under given circumstances. We suspect that you only managed to get past the fire test because the newly printed materials were still 'wet' and thus having a high heat capacity, or perhaps there was something made for facilitation of the evaluations. [*] The carbon footprint in the production of the 3D printed material was kept to an unbelievable minimum, and is classified as leading in this sector of industry. After taking a deeper dive in your claims and after conducting a carbon audit, we have come to the conclusion that the carbon footprint is middle of the road in this construction sector. We regret taking your claims at face value, and should have conducted a very expensive forensic ESG audit. Just yesterday, there was a video that went viral which explained how LR-CHEN-DANG built houses are like a match. One wrong strike and it will go up in flames. As you can see, your problems have now fallen squarely on our shoulders Yours truly, Lazz Russ. Founder of LR-CHEN-DANG. In the light of the events above, what should ASTAG do to prevent the contagion of bad business spreading through out the GOONIE Group? I desperately need a quick fix to this problem. I intend to have the GOONIE Group listed on the Malaysian Stock Exchange and this negative news is really damaging. Yours sincerely, Sackie Kin Kin. APPENDIX [A] - The Salient Construction Terms and Conditions Under Which ASTAG Operates for Its Customers Clause [*] - This contract is subject to Malaysian law and arbitration at the Asian International Arbitration Centre. Clause [*] - Any warranty contained in these terms and conditions is valid for only 12 months. ASTAG will not entertain any alleged breach once this period has expired no matter how well established the claim may be. Clause [*] - The warranty does not extend to experimental nanotechnology material used in the construction, in particular materials that are 3D printed. Clause [*] - The Customer acknowledges that that the constructed materials will be used under normal conditions. Clause [*] - In the unlikely event of a defect, any replacement / refurbished parts of the building will be made at the sole discretion of ASTAG. Clause [*] - The warranty in this contract does not cover abuse, tampering or modification of any 3D printed parts or modules by the Customer, unless written authorisation is first obtained from ASTAG. Clause [*] - This warranty will be voided if the 3D printed parts or modules are subjected to improper usage, storage, temperature, dust, dirt or other pollution. Clause [*] - ASTAG accepts no liability for any damage or destruction due to any fire, flood, lightning strike, or other acts of Mother Nature, howsoever caused. Clause [*] - ASTAG reserves the right to charge the Customer for any replacement costs of 3D printed parts or modules, including incidental charges, especially if the defects does not fall within the scope of the warranty contained in this standard terms and conditions. Clause [*] - The Customer acknowledges that ASTAG’s 3D construction methodology has been subjected to the necessary industry standard checks and balances. Clause [*] - Any clause of this contract which is subject to illegality such as bribery and/or corruption, are severable and will not affect the rest of this standard terms and conditions. Clause [*] - The Customer receives the constructed building ‘as is’ and any minor defects will not fall within the warranty contained in this standard terms and conditions. Clause [*] - This standard terms and conditions encompasses the entire agreement made by ASTAG and the Customer. No other terms shall be incorporated into this contract.

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