1019-00001 · Haber Reinhardt Schlosser Partners · Engagement

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CALDERWOOD & HARKNESS LLP Attorneys at Law

600 Lexington Avenue New York, New York 10022 Telephone: (212) 455-7800 Facsimile: (212) 455-7801 www.calderwoodharkness.com

November 8, 2022

VIA EMAIL AND OVERNIGHT COURIER

Dana Prescott, Esq. Vice President & General Counsel Whitmore Aerospace LLC 4200 Wilson Boulevard, Suite 1100 Arlington, Virginia 22203

Gerald Huang Vice President, Global Supply Chain Operations Whitmore Aerospace LLC 4200 Wilson Boulevard, Suite 1100 Arlington, Virginia 22203

PRIVILEGED AND CONFIDENTIAL — ATTORNEY-CLIENT COMMUNICATION

Re: Litigation Hold Notice — ICC Arbitration, *Kestrel Dynamics GmbH v. Whitmore Aerospace LLC*, ICC Case No. 27914/MHM Master Supply Agreement for Titanium Alloy Turbine Housings dated June 15, 2018 (WAL-KDG-MSA-2018-0615) C&H Engagement No. 1019-00001

Dear Ms. Prescott and Mr. Huang:

This letter constitutes a formal litigation hold notice requiring the immediate preservation of all documents, communications, and electronically stored information ("ESI") potentially relevant to the above-referenced matter. The importance of this notice cannot be overstated. We ask that you read this letter in its entirety, take immediate steps to comply with its directives, and ensure its prompt distribution to all relevant personnel within Whitmore Aerospace LLC ("WAL"), as described more fully below.

1. Purpose and Legal Obligation

As you are aware, Calderwood & Harkness LLP ("C&H") represents Whitmore Aerospace LLC ("WAL") in connection with the ICC arbitration commenced by Kestrel Dynamics GmbH ("Kestrel"), a German limited liability company (Gesellschaft mit beschränkter Haftung) registered in Stuttgart, Germany (HRB 745621, Amtsgericht Stuttgart), with its registered office at Industriestraße 88, 70565 Stuttgart, Germany.

On November 7, 2022, Kestrel filed a Request for Arbitration with the International Chamber of Commerce (the "ICC"), which has been assigned ICC Case No. 27914/MHM. In its Request, Kestrel alleges material breach by WAL of the Master Supply Agreement for Titanium Alloy Turbine Housings dated June 15, 2018 (the "MSA"), as amended by Amendment No. 1 dated February 10, 2020 ("Amendment No. 1") and Amendment No. 2 dated September 3, 2021 ("Amendment No. 2" and, together with the MSA and Amendment No. 1, the "Agreement"). Kestrel's claims center on WAL's termination of the Agreement and its rejection of multiple lots of Ti-6Al-4V ELI titanium alloy turbine housings delivered by Kestrel during the 2022 calendar year. Kestrel seeks approximately €47.3 million in damages, including claims for alleged wrongful termination, lost profits, and consequential damages.

WAL disputes Kestrel's claims and intends to file a counterclaim seeking approximately €5.17 million in replacement-component costs and other damages incurred as a result of Kestrel's repeated delivery of non-conforming Products and the resulting necessity of transitioning to an alternative qualified supplier.

The arbitration is governed by the ICC Rules of Arbitration (2021 edition), with the seat of arbitration in New York, New York. The language of the arbitration is English. The governing law of the MSA, as specified in Section 17.1 thereof, is the law of the State of New York, without regard to its conflict-of-laws principles.

This letter constitutes a formal litigation hold notice directing the immediate preservation of all potentially relevant documents, communications, and ESI. WAL has a legal obligation to preserve all materials that may be relevant to the claims and defenses in this arbitration, including but not limited to the claims asserted by Kestrel and the counterclaims that WAL intends to assert. This obligation to preserve arises from WAL's duties under applicable law, the ICC Rules of Arbitration, and the general principles governing the preservation of evidence in legal proceedings.

Failure to preserve materials within the scope of this hold may result in severe adverse consequences, including but not limited to adverse inference instructions, monetary sanctions, spoliation findings, or other penalties that could be imposed by the arbitral tribunal or any court of competent jurisdiction. These consequences may materially and irreparably harm WAL's position in the arbitration and any subsequent enforcement or annulment proceedings.

2. Scope of Preservation Obligation

The preservation obligation described in this notice is broad in scope and encompasses all documents, communications, and ESI that are potentially relevant to the claims and defenses at issue in the arbitration. The categories described below are intended to be illustrative and not exhaustive. If you are uncertain whether a particular document or category of documents falls within the scope of this hold, you should presume that it does and preserve the document until you have consulted with C&H.

2.1 Subject Matter

The following categories of documents and ESI must be preserved:

(a) All documents and communications relating to the MSA, including the base agreement executed on June 15, 2018, Amendment No. 1 dated February 10, 2020, and Amendment No. 2 dated September 3, 2021, and any prior drafts, redlines, and negotiation correspondence relating thereto.

(b) All documents relating to the supply, manufacture, delivery, inspection, acceptance, and rejection of Ti-6Al-4V ELI titanium alloy turbine housings (the "Products") under the MSA, including but not limited to purchase orders, order confirmations, shipping documents, bills of lading, certificates of conformance, and delivery receipts.

(c) All lot inspection records for Products delivered by Kestrel, including but not limited to the fourteen (14) rejected lots between March 2022 and September 2022 (specifically, Lot KDG-2022-0307 through Lot KDG-2022-0919), totaling approximately 1,680 units. This includes all first-article inspection reports, receiving inspection reports, in-process inspection data, and final acceptance or rejection documentation for each such lot.

(d) All quality control reports and inspection records generated under WAL-QCP-100 (WAL Quality Control Procedure), including any revisions, updates, or supplements to that procedure, and all records of inspections performed pursuant thereto in connection with Products received from Kestrel.

(e) All engineering specifications WAL-SPEC-TH-401 through WAL-SPEC-TH-410, inclusive, including any and all drafts, revisions, redlines, change orders, engineering change notices, deviation requests, and internal memoranda discussing, analyzing, or proposing changes to these specifications at any time during the relevant time period.

(f) All porosity testing data, metallurgical analysis reports, and non-destructive testing ("NDT") results for Products received from Kestrel, including but not limited to X-ray radiography, computed tomography ("CT") scan data, ultrasonic testing results, and any laboratory data or reports reflecting actual porosity measurements. This category specifically includes all data and analyses relating to the contractual porosity specification of ≤0.25% as stated in WAL-SPEC-TH-401, Appendix C, Table 3, and any comparison of actual test results against that specification threshold.

(g) All rejection notices, cure notices, and correspondence relating to the rejection and cure process under Section 8.4 of the MSA, including but not limited to formal rejection letters, cure period notifications, cure submissions by Kestrel, WAL's evaluations of cure submissions, and all documentation relating to the seven (7) uncured rejections that gave rise to WAL's determination of Persistent Quality Failure (as defined in Section 8.4(c) of the MSA).

(h) All documents relating to WAL's Notice of Termination for Cause issued to Kestrel on October 3, 2022, including all drafts, internal deliberations, legal analyses, memoranda, email chains, and communications relating to the decision to terminate, as well as all correspondence from Kestrel in response to such notice, including any objections, protests, or proposed remediation plans.

(i) All documents relating to the qualification, engagement, and procurement of Products from Valkyr Precision Components Inc. ("Valkyr"), located at 4401 East Irvington Road, Tucson, Arizona 85714, as a replacement supplier for the Products, including but not limited to supplier qualification records, AS9100 audit reports, pricing proposals, negotiations, term sheets, letters of intent, supply agreements, purchase orders, delivery schedules, and delivery records.

(j) All documents relating to WAL's incoming inspection process and AS9100 Rev D certification requirements for suppliers, including any supplier qualification checklists, audit findings, corrective action requests, and documentation relating to the initial qualification and ongoing monitoring of Kestrel and Valkyr as approved suppliers.

(k) All internal assessments, memoranda, presentations, or analyses regarding Kestrel's performance under the MSA, including but not limited to supplier scorecards, performance reviews, risk assessments, root cause analyses, and any discussions of supplier diversification strategy or alternative sourcing options for the Products.

(l) All documents relating to damages, costs, or financial impact arising from the rejected lots, the termination of the MSA, and the transition to Valkyr, including but not limited to:

(i) the per-unit premium calculation reflecting the difference between the Valkyr unit price of €8,432.92 and the Kestrel CY4 unit price of €5,222.92, resulting in an approximate per-unit premium of €3,210.00;

(ii) documentation of the Valkyr introductory discount of 4.2% and its effect on the per-unit premium calculation;

(iii) all scrap costs, rework costs, re-inspection costs, and expediting fees attributable to the rejected lots;

(iv) all costs associated with production delays, line shutdowns, or delivery defaults to WAL's own customers attributable to Kestrel's non-conforming Products; and

(v) any and all damage models, calculations, or analyses prepared by WAL personnel or third-party consultants in connection with the anticipated counterclaim.

(m) All budgets, forecasts, and financial projections relating to the MSA, including annual volume commitments (minimum 2,400 units and maximum 4,000 units per year following Amendment No. 1), unit pricing across Contract Years 1 through 5 (€4,850 base price escalating at 2.5% compounded annually per Section 5.2 of the MSA), and any internal financial analyses or models incorporating these figures.

2.2 Key Personnel and Correspondence

Without limitation to the general preservation obligation described above, the following categories of correspondence and communications must be specifically preserved:

(a) External Correspondence with Kestrel. All correspondence, in any form (including but not limited to email, letter, facsimile, text message, instant message, and voice communication), between any WAL personnel and the following individuals at Kestrel Dynamics GmbH:

• Friedrich Brenner, Managing Director (Geschäftsführer)

• Luisa Erdmann, Commercial Director

• Dr. Stefan Voss, Head of Quality Assurance

• Any other Kestrel employee, agent, consultant, or representative involved in the supply of Products, the negotiation or performance of the MSA, or the disputes at issue in the arbitration

(b) Internal WAL Correspondence. All internal WAL correspondence among or involving the following WAL personnel (and their respective teams, direct reports, and administrative assistants) concerning the MSA, the Products, quality issues, the lot rejections, the cure process, the termination decision, the transition to Valkyr, or the Kestrel relationship generally:

• Marcus J. Whitmore III, Chief Executive Officer

• Dana Prescott, Vice President & General Counsel

• Gerald Huang, Vice President, Global Supply Chain Operations

• Dr. Ingrid Vollmer, Senior Vice President, Engineering & Manufacturing

• Any quality control inspectors, engineers, procurement specialists, supply chain analysts, or other personnel who were involved in the inspection, acceptance, rejection, or cure process for the Products, or who participated in supplier qualification, performance monitoring, or termination deliberations relating to Kestrel

2.3 Types of Materials

The preservation obligation extends to all documents and ESI in any format, without limitation, including but not limited to:

• Emails (including attachments), text messages (SMS and MMS), instant messages (including messages sent via platforms such as Northgate Data Systems, Meridian Solutions, or any other messaging application used by WAL), and voicemails (including transcriptions thereof)

• Letters, memoranda, notes, and facsimiles, whether in paper or electronic form

• Contracts, agreements, purchase orders, invoices, packing slips, shipping documents, and bills of lading

• Inspection reports, test results, laboratory data, certificates of conformance, and certificates of analysis

• Meeting notes, minutes, agendas, and action items

• Presentations (including Northgate Services Inc. and similar formats), spreadsheets (including Excel and similar formats), and databases

• Photographs, videos, audio recordings, and any other media files

• Calendar entries, scheduling records, and travel records

• Documents stored on servers, laptops, desktops, mobile devices (including company-issued and personal devices used for WAL business), shared drives, network drives, cloud storage platforms (including but not limited to Sundial Systems, Cobalt Ridge Systems, Hollowell Health IT, Larkspur Technologies, and any other cloud-based platform used by WAL), and backup systems (including backup tapes, disaster recovery archives, and any offsite storage)

• Hard-copy files in any WAL office or facility, including but not limited to the headquarters located at 4200 Wilson Boulevard, Suite 1100, Arlington, Virginia 22203, and the manufacturing facility located at 8500 Coppermine Road, Manassas, Virginia 20110

• Any documents held by third parties on behalf of WAL, including external consultants, testing laboratories, and document storage facilities

2.4 Time Period

The preservation obligation covers all materials created, sent, received, or modified during the period from January 1, 2017 (approximately eighteen (18) months prior to the MSA execution date of June 15, 2018, to capture pre-contractual negotiations, supplier qualification activities, and related correspondence) through the date of this notice and continuing until further written notice from Calderwood & Harkness LLP. All documents created after the date of this notice that fall within the subject matter described in Section 2.1 above must also be preserved on an ongoing basis until the hold is formally released.

3. Preservation Instructions

To ensure compliance with this litigation hold, WAL must take the following steps immediately upon receipt of this notice:

(a) Suspend all routine document destruction, recycling, or deletion policies — including auto-delete settings on email systems (e.g., Strathmore Data Systems or outlook retention policies), document management systems, backup tape rotation schedules, and any other automated or manual processes that would result in the destruction, deletion, or overwriting of documents within the scope of this hold. This suspension must remain in effect for the duration of this hold.

(b) Do not delete, discard, overwrite, modify, or destroy any documents or ESI within the scope of this hold. This prohibition applies regardless of whether the document is in electronic or hard-copy form, and regardless of whether the document is stored on WAL-owned systems, personal devices used for WAL business, or third-party platforms.

(c) Ensure that all backup tapes, archival media, and disaster recovery systems containing potentially relevant information are preserved intact and are not overwritten, recycled, or degaussed pursuant to any routine rotation schedule.

(d) Notify WAL's IT department immediately and instruct IT personnel to implement technical measures sufficient to prevent the auto-deletion, modification, or alteration of relevant ESI. Such measures should include, without limitation, placing legal holds on relevant custodians' mailboxes, suspending retention policies for relevant data repositories, and ensuring that relevant data on shared drives and cloud storage platforms is protected from deletion.

(e) Preserve all documents in their native format, including all associated metadata (e.g., author, date created, date modified, recipients, file properties). Documents should not be converted from one format to another, printed in lieu of electronic preservation, or otherwise altered in any way that would modify or destroy metadata.

(f) If any document within the scope of this hold has already been deleted, destroyed, or lost since October 3, 2022 (the date of the Notice of Termination for Cause issued to Kestrel), immediately notify Calderwood & Harkness LLP. This notification should include a description of the document(s) at issue, the date and circumstances of the deletion or destruction, the identity of the person responsible, and any available information regarding whether the document(s) can be recovered from backup systems or other sources.

4. Distribution of this Notice

This litigation hold notice must be distributed promptly to all WAL employees, officers, directors, agents, and contractors who may possess, control, or have access to documents or ESI within the scope of this hold.

Without limitation, this notice must be distributed to the following individuals:

• Marcus J. Whitmore III, Chief Executive Officer

• Dr. Ingrid Vollmer, Senior Vice President, Engineering & Manufacturing

• All quality control inspectors who participated in the inspection of Products received from Kestrel, including inspectors stationed at the Manassas manufacturing facility

• All engineers involved in the development, revision, or application of specifications WAL-SPEC-TH-401 through WAL-SPEC-TH-410

• All procurement personnel and supply chain staff who interacted with Kestrel or Valkyr, processed purchase orders for the Products, or were involved in the supplier qualification or transition process

• Any other WAL personnel who were involved in the inspection, acceptance, rejection, or cure of Products under the MSA, or who participated in discussions or decisions relating to the termination of the MSA or the engagement of Valkyr

Each recipient of this notice should acknowledge receipt in writing (including by email) and confirm their understanding of the preservation obligations set forth herein. We recommend that WAL maintain a log of all acknowledgments received, including the date and time of each acknowledgment and the identity of the acknowledging individual.

Additionally, if any new employees are hired or any existing employees assume responsibilities relating to matters within the scope of this hold, such individuals should be promptly notified of the hold and provided with a copy of this notice. The hold applies with equal force to any successor, assignee, or transferee of WAL's rights or obligations under the MSA.

5. Point of Contact

Any questions about the scope, application, or implementation of this litigation hold should be directed to:

Simone Laroche Senior Associate Calderwood & Harkness LLP 600 Lexington Avenue New York, New York 10022 Telephone: (212) 455-7834

Email: slaroche@calderwoodharkness.com

with a copy to:

Dana Prescott Vice President & General Counsel Whitmore Aerospace LLC 4200 Wilson Boulevard, Suite 1100 Arlington, Virginia 22203

Email: dprescott@whitmoreaero.com

We strongly recommend that WAL designate an internal litigation hold coordinator — ideally a senior member of the legal department or the IT department — to serve as the central point of contact within WAL for the implementation and ongoing monitoring of this hold. The internal coordinator should work closely with C&H to ensure full and continuing compliance, including coordinating the identification of custodians, the collection and preservation of ESI, and the distribution of this notice to relevant personnel.

6. Duration

This litigation hold remains in effect until Calderwood & Harkness LLP issues a formal written release. No oral communication, informal indication, or passage of time will be sufficient to release or modify this hold. The hold will remain in place for the duration of the ICC arbitration, including any post-hearing briefing, the issuance of the final award, and any subsequent enforcement, recognition, or annulment proceedings in any jurisdiction.

Until you receive a written release from C&H, you must continue to comply with all obligations set forth in this notice, and you must continue to preserve all documents and ESI within its scope.

7. Consequences of Non-Compliance

We wish to emphasize in the strongest possible terms that failure to comply with this litigation hold may expose WAL to severe adverse consequences in the arbitration and any related proceedings. These consequences may include, but are not limited to:

• Adverse inference instructions permitting the arbitral tribunal to presume that destroyed or lost documents would have been unfavorable to WAL's position;

• Monetary sanctions, including orders requiring WAL to pay Kestrel's costs and attorneys' fees attributable to any discovery disputes arising from non-compliance;

• Spoliation findings by the tribunal or any court of competent jurisdiction, which could undermine WAL's credibility and the weight given to WAL's evidence;

• Preclusion orders limiting WAL's ability to introduce certain categories of evidence or assert certain defenses; and

• Potential personal liability for individuals who intentionally or negligently destroy, conceal, or alter relevant documents.

The intentional or negligent destruction of relevant documents in the face of a preservation obligation constitutes spoliation of evidence and may give rise to separate claims or sanctions. Such conduct could fundamentally undermine WAL's defense against Kestrel's claims and WAL's ability to pursue its counterclaim. Every WAL employee who receives this notice bears personal responsibility for ensuring that documents within their custody or control are preserved in accordance with its terms.

Closing

We respectfully request that both Dana Prescott and Gerald Huang provide written acknowledgment of receipt of this notice and confirm WAL's commitment to full compliance with the preservation obligations described herein. Please provide such acknowledgment by return email to Simone Laroche at slaroche@calderwoodharkness.com no later than November 11, 2022.

Following receipt of your acknowledgment, C&H will schedule a call to discuss the implementation of this litigation hold, including:

• Coordination with WAL's IT department to implement technical preservation measures;

• Identification and finalization of the list of custodians whose files and communications must be preserved and, in due course, collected;

• Review of WAL's document retention policies and any modifications required to ensure compliance;

• Designation of an internal litigation hold coordinator; and

• Establishment of a protocol for the ongoing monitoring and updating of this hold as the arbitration progresses.

We appreciate your prompt attention to this critically important matter. The preservation of relevant evidence is foundational to WAL's ability to defend against Kestrel's claims and to prosecute its counterclaim, and we are confident that WAL will treat this obligation with the utmost seriousness.

Please do not hesitate to contact the undersigned with any questions.

Respectfully,