Contract analysis

1. Privilege, Purpose, and Status of this Letter We write without prejudice save as to costs, in accordance with the well-established principles set out in Calderbank v Calderbank [1976] Fam 93 and SG v SG (Costs) [2015] EWCA Civ 1003. This letter is intended to be referred to on questions of costs only, in any court and in any jurisdiction in which costs arising out of or in connection with the enforcement of LCIA A

2. Background — The Award On 28 June 2024, the tribunal constituted under LCIA Arbitration No. 224718 — comprising Sir Malcolm Fenton-Clarke (Presiding Arbitrator), Professor Athena Drakopoulos (TSL's nominee), and Dr Henrik Dalmqvist (KMH's nominee) — issued a unanimous final award in favour of TSL. The tribunal found KMH liable to TSL across multiple heads of claim arising from KMH's breaches of three separate time

3. Summary of Enforcement Actions and Recoveries Notwithstanding the clear and unambiguous terms of the Award, and despite a formal demand letter sent by this firm on 8 July 2024 calling upon KMH to satisfy the Award voluntarily within 14 days, KMH failed to make any payment whatsoever. This intransigence has compelled TSL to pursue enforcement across four jurisdictions, at very considerable cost and expense. We summ

4. Current Financial Position — Amounts Recovered and Outstanding 4.1 Amounts Recovered to Date As of the date of this letter, TSL has recovered the following amounts through enforcement: The UAE recoveries are anticipated to yield a further material sum, but as execution remains in progress, the precise figure is not yet known. For the purposes of this letter, we proceed on the basis of confirmed recoveries of £77,8

5. Observations on KMH's Position and Continuing Costs Exposure We invite your client to reflect carefully on the following matters. First, KMH's application to set aside the Award under sections 68 and 69 of the Arbitration Act 1996 was dismissed by Mr Justice Ashworth on 11 October 2024, with costs awarded to TSL on the indemnity basis. The Award is final, binding, and enforceable. There is no extant challenge to t

6. The Proposal Against this background, and notwithstanding TSL's strong position, TSL is prepared to offer the following terms in the interests of achieving a prompt resolution and avoiding the further expenditure of time and costs by both parties. This proposal is open for acceptance for a period of 21 days from the date of this letter, expiring at 5:00 pm (London time) on 27 January 2025. 6.1 Payment of Outstandi

7. Consequences of Non-Acceptance If this proposal is not accepted within the 21-day period (i.e., by 5:00 pm London time on 27 January 2025), TSL puts KMH on clear notice that: (a) TSL will continue to pursue enforcement of the full Award, costs, and interest across all jurisdictions, without further notice to KMH, and will take all steps necessary and available to recover the totality of the sums owed; (b) TSL will

8. Mechanics of Payment Any voluntary payment made by KMH in acceptance of this proposal should be made in pounds sterling by wire transfer to TSL's designated recovery account at: Ionian National Bank SA 22 Stadiou Street Athens 105 64 Greece Full bank account details and wire transfer instructions (including IBAN, SWIFT/BIC code, and beneficiary reference) will be provided promptly upon KMH's written confirmation o

9. Reservations TSL expressly reserves all of its rights in respect of: (a) The worldwide freezing order dated 16 July 2024 (as continued on 30 July 2024) and the disclosure obligations imposed on KMH thereunder, which remain fully operative unless and until discharged by the Court; (b) Any contempt proceedings arising from breach of the worldwide freezing order or evidence of post-award asset dissipation, including

10. Response We request KMH's response to this proposal within 21 days of the date of this letter, being by no later than 5:00 pm (London time) on 27 January 2025. Any response should be addressed to: Samuel Eklund Partner Calderwood & Harkness LLP 45 Moorgate London EC2R 6AR United Kingdom Email: s.eklund@calderwoodharkness.com DX: 1044 London/City If a response is not received within that period, TSL will treat the