Contract analysis

1. Introduction and Purpose of This Letter We write with reference to the Partial Award issued on March 22, 2024 (the "Partial Award") by the Tribunal constituted in the above-captioned arbitration. The Tribunal — composed of Prof. Dame Eleanor Fitzwilliam (presiding), Dr. Hans-Ulrich Perren, and the Hon. Robert A. Castillo (ret.) — rendered a comprehensive decision that represents a decisive and favorable outcome fo

2. Summary of the Partial Award — Amounts Owed by Kestrel For ease of reference and to facilitate your internal reporting, we set forth below a summary of the monetary obligations imposed on Kestrel under the Partial Award. 2.1 Counterclaim Award The Tribunal awarded WAL €3,820,000 on its counterclaim for replacement-component costs. These costs were incurred by WAL in procuring titanium alloy turbine housings from V

3. Enforcement Under the New York Convention 3.1 Voluntary Compliance Period As an initial matter, we recommend allowing Kestrel a reasonable period following issuance of the Partial Award to comply voluntarily before initiating any enforcement proceedings. In our experience, a period of thirty (30) to sixty (60) days from the date of issuance is customary and appropriate, and courts and tribunals generally view such

1. Monitor voluntary compliance. Allow Kestrel until May 22, 2024 — being sixty (60) days from the date of the Partial Award — to voluntarily satisfy the amounts awarded. This period provides Kestrel with a reasonable opportunity to arrange payment while preserving WAL's enforcement rights.

2. Demand letter. If Kestrel does not initiate communication regarding payment within the first thirty (30) days (i.e., by April 22, 2024), we recommend transmitting a formal demand letter to Kestrel's counsel, Haber Reinhardt Schlosser Partnerschaft mbB, at their offices at Königstraße 35, 70173 Stuttgart, Germany (with a courtesy copy to their London office at 30 St Mary Axe, London EC3A 8BF, United Kingdom), setti

3. Enforcement proceedings. If no voluntary payment is received by May 22, 2024, we recommend that WAL instruct C&H to prepare and file a petition for confirmation of the Partial Award in the United States District Court for the Southern District of New York and, concurrently, to coordinate with qualified local German counsel for parallel enforcement proceedings before the Oberlandesgericht Stuttgart. Pursuing enforc

4. German counsel. Should WAL wish to pursue enforcement in Germany, we can recommend qualified German counsel with experience in the recognition and enforcement of international arbitral awards. We are prepared to coordinate the engagement of German counsel on WAL's behalf and to supervise the parallel proceedings to ensure consistency of strategy across jurisdictions. For any settlement or voluntary compliance disc

4. Tribunal's Reserved Jurisdiction — Post-Award Interest The Partial Award expressly reserved the Tribunal's jurisdiction over the calculation and determination of post-award interest on the amounts awarded to WAL. Specifically, at paragraphs 312 through 315 of the Partial Award, the Tribunal stated that the question of post-award interest would be addressed, if necessary, in a Final Award to be rendered upon applic

5. Insurance and Lender Notifications We wish to draw your attention to two notification matters that WAL should address in light of the favorable resolution of the arbitration. Insurance. As you will recall, Pinnacle Continental Insurance Co. ("Pinnacle") was notified of the arbitration at its inception. Pinnacle issued a coverage reservation letter dated January 18, 2023, in which it acknowledged receipt of WAL's n

6. Final Invoice — Engagement Economics 6.1 Fee Summary The total professional fees billed by C&H for representation of WAL in ICC Case No. 27914/MHM, covering the period from the commencement of the engagement in November 2022 through the conclusion of the matter in April 2024, are as follows: Total Professional Fees: $2,487,300 The following billing rates were applied throughout the engagement, consistent with the

7. Matter Closure With the issuance of this letter and the enclosed final invoice, Calderwood & Harkness LLP considers the active engagement in ICC Case No. 27914/MHM to be closed. The engagement number 1019-00001 will remain on file in our matter-management system for reference purposes. C&H will retain all engagement files — including pleadings, correspondence, work product, expert reports, hearing transcripts, and