Ann: Director Resignation, page-297

PARAPHRASING

Q1: The right team

Have we got the right team atm to successfully complete the integration work, or are we still seeking the right personel to complete the task?

Questions 1.back to back failures and unknowns suggest that we may not have the right people at 4DS, imec and Stanford to successfully integrate our memory cell to imec’s megabit array. Do 4DS have the right people with the appropriate skills set to successfully complete integration work or is 4DS in the market looking for personal with the appropriate skills to cross the finish line?Question

Q2: Contigency plan

Has 4DS been in consultation with IMEC for a further extension of time, if so what are the prospects?

If not, please provide a reason.

Is there a possibility of working with Leti?

Is there any time restriction or constraint imposed by WD on IMEC?

2.Have 4DS asked imec for additional time in the cleanroom? if not why not and if so why have imec rejected the request and is there an opportunity to work with Leti? Do Western Digital have any downtime in the allotted time they have with imec that can be utilised by 4DS?

Q3: This part is speculative - in my opinion it is unfair to put it to the Board - they cannot reply to a hypothetical situation - we will cross that bridge later if that happens.

Question 3.How certain is imec and 4DS that they have selected the appropriate megabit array that supports interoperability with our memory cell? are 4DS looking for alternative megabit array platforms or is the current megabit array firm in compatibility with our memory cell.In the event that 4DS end up working on alternative megabit array platforms, will that also mean 4DS will start over with Non-Platform Lots or is it a direct move to Platform Lots.Question

Q4: Benchmark

Does 4DS have a benchmark for testing the protocol?

i.e. does the company have a set rules for the end-game

Has IMEC ever given 4DS an ultamatum as to the number tests remaining, if the protocol is not successful?



4.How many failed attempts will it take for 4DS to call it quits?How many attempts will it take for imec to quit the 4DS engagement? or is the engagement exclusively “pay for a service”.Question

Q5: Ofher than WD, has 4DS been in consultation with any other potential buyers?

How many interested companies are they?

What are general vibes from the interested parties?

How often do these discussions happen?

5.Outside of Western Digital, is 4DS talking to any other memory buyer or manufacturers that are interested in our technology? if so how many companies are interested and how regular does 4DS talk to these companies. When did these companies engage 4DS?

Q6: Drs W's resignation

Drs W's resignation announcement has triggered a negative market sentiment, causing the share price to plummet significantly, contrary to wrong indication that it was "price insensitive".

There was no mention of any reasons for leaving.

This has caused several wrongful interpretations, as shareholders, we are very concerned about the reoccurence of such, repetitive mistakes and avoidable circumstances.

Has the Board come up with any protocols in place to avoid this from further happening?

i.e. Do we have someone to proof-read any written work prior to publishing?


Question 6.Dr WvdH leaving 4DS for another job only adds to the speculation that Platform 4 has already failed or was not confident that a successful outcome would be achieved. These speculations are a result to poor announcement’s being communicated to shareholders. When will 4DS notice that the announcements need to be improved to provide material context so that shareholders do not have to second guess?

Q7: UNKNOWN - with respect to the probability of success for Platform 4

The term unknown is vague and detrimental.

Please qualify abd quantify what is meant by unknown.

Are you refering to the project as a whole or one aspect of the project?

Are you saying, if this component fails the whole project will fail and that is the end?

Please outline in detailed any contigency plans if you have in place.

We understand that you are restricted to many things you can and cannot say, however, as directors you also have a duty to instill confidence in us as investors.



Question 7.4DS using the term “unknown” in relation to the possibility of success of Platform 4 is very poor. Surely 4DS memory are using known simulation tools that model the integration and provides data that allows 4DS and imec to plan steps for manufacturing. A detailed announcement providing context as to why tohe process conditions selected and provide the best path forward to successfully deliver the megabit chip. Simply stating unknown is simply lazy.