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1019-00001 · Haber Reinhardt Schlosser Partners · Hearing Preparation
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PRIVILEGED & CONFIDENTIAL — ATTORNEY WORK PRODUCT

Cross-Examination Outlines — Kestrel Dynamics GmbH Witnesses

Friedrich Brenner (Managing Director / Geschäftsführer) Luisa Erdmann (Commercial Director) Dr. Stefan Voss (Head of Quality Assurance)

ICC Case No. 27914/MHM

Whitmore Aerospace LLC (Respondent) v. Kestrel Dynamics GmbH (Claimant)

Prepared by:

Simone Laroche, Senior Associate Jeffrey Park, Associate

For:

Theodore Langston, Partner (Responsible Partner) Vivienne St. Claire, Partner (Billing Partner)

Calderwood & Harkness LLP 600 Lexington Avenue New York, NY 10022

Engagement Number: 1019-00001

January 2024

Hearing Dates: January 8–12, 2024 ICC Hearing Centre, New York, New York

Tribunal: Prof. Dame Eleanor Fitzwilliam (Presiding Arbitrator) Dr. Hans-Ulrich Perren (Claimant's Nominee) Hon. Robert A. Castillo (Respondent's Nominee)

Opposing Counsel: Dr. Maximilian Haber and Katrin Schäfer Haber Reinhardt Schlosser Partnerschaft mbB

Right-click to update Table of Contents

I. Introduction and General Notes

A. Purpose

This document constitutes an internal attorney work product containing detailed cross-examination outlines prepared for the January 2024 evidentiary hearing in ICC Case No. 27914/MHM. The outlines cover the three Kestrel Dynamics GmbH ("Kestrel" or "Claimant") fact witnesses scheduled to appear at the hearing:

1. Friedrich Brenner — Managing Director / Geschäftsführer of Kestrel Dynamics GmbH;

2. Luisa Erdmann — Commercial Director of Kestrel Dynamics GmbH; and

3. Dr. Stefan Voss — Head of Quality Assurance of Kestrel Dynamics GmbH.

The cross-examination outlines have been designed to accomplish two interconnected objectives. First, the outlines support Respondent Whitmore Aerospace LLC's ("WAL" or "Respondent") defense against Kestrel's claims of material breach of the Master Supply Agreement dated June 15, 2018 (Document Reference WAL-KDG-MSA-2018-0615) (the "MSA"), as amended by Amendment No. 1 dated February 10, 2020 and Amendment No. 2 dated September 3, 2021 (collectively, the "Amendments"). Second, the outlines support WAL's counterclaim of €5.17 million for replacement-component costs incurred as a result of WAL's procurement of substitute turbine housings from Valkyr Precision Components Inc. ("Valkyr") following the termination of the MSA for Persistent Quality Failure under Section 14.2(b) of the MSA.

This document is privileged and confidential, and has been prepared solely for the internal use of the Calderwood & Harkness LLP team representing Respondent. It should not be distributed, disclosed, or referenced in any filing or communication with opposing counsel, the Tribunal, or any third party.

B. Overarching Cross-Examination Objectives

The cross-examination of the three Kestrel fact witnesses is directed at establishing the following overarching themes, each of which is critical to Respondent's defense and counterclaim:

1. Kestrel Was Aware of the Porosity Failures and the Failures Were Genuine. Across all three witnesses, the cross-examination must establish that Kestrel was aware of porosity failures in the rejected lots and that the failures were genuine non-conformances — not fabricated or exaggerated by WAL. Internal Kestrel communications obtained in document production under Procedural Order No. 2 (dated March 17, 2023) reflect contemporaneous acknowledgment of quality issues by each of the three witnesses. The cross-examination will confront each witness with these documents and establish the fundamental inconsistency between Kestrel's contemporaneous acknowledgment of quality problems and its litigation position that all rejected lots conformed to specification.

2. Kestrel's Cure Efforts Were Insufficient. The cross-examination must demonstrate that Kestrel's cure efforts, to the extent any were undertaken, were insufficient in both scope and timeliness. Amendment No. 2 extended the cure period from 30 to 45 calendar days. Despite this extension, Kestrel failed to cure seven of the fourteen lot rejections within the amended cure period. The cross-examination of all three witnesses — each of whom had distinct responsibilities for the cure process — will establish the factual basis for Respondent's position that the Persistent Quality Failure threshold under Section 8.4 of the MSA was exceeded.

3. The Porosity Specification Was Clear and Unambiguous. A central pillar of Kestrel's case is the contention that WAL applied an "unpublished" porosity standard of ≤0.15% rather than the contractual standard of ≤0.25% specified in WAL-SPEC-TH-401, Appendix C, Table 3. The cross-examination must expose the inconsistency of this position. None of the three Kestrel witnesses has been able to identify any WAL document, communication, or instruction establishing a ≤0.15% standard. Moreover, even applying the contractual ≤0.25% standard, a significant number of rejected lots exceeded the specification, as confirmed by Dr. Raymond Chow of Arclight Materials Science Inc., whose expert analysis found porosity levels ranging from 0.19% to 0.38% across the fourteen rejected lots.

4. The Valkyr Replacement Theory Is Unsupported by Evidence and Commercially Implausible. Kestrel has advanced the narrative that WAL's true motive in rejecting lots and terminating the MSA was to replace Kestrel with Valkyr Precision Components Inc. as a lower-cost domestic supplier. This theory is both factually unsupported and commercially implausible. The cross-examination will establish that (a) no Kestrel witness has personal knowledge of when WAL first contacted Valkyr, (b) WAL's engagement with Valkyr occurred after the quality failures commenced, as a mitigation measure, and (c) Valkyr's unit price of €8,432.92 significantly exceeds Kestrel's CY4 price of €5,222.92, rendering the "lower-cost replacement" theory irrational on its face.

5. Kestrel's Damages Claim of €47.3 Million Is Unsupported. The cross-examination must challenge the credibility and quantum of Kestrel's damages claim across its principal components: (a) lost profits for the remaining MSA term (€12.83 million), (b) lost profits for the two one-year renewal periods (€27.15 million), (c) unreimbursed rework costs (€3.42 million), and (d) reputational damages (€3.90 million). In particular, the 22.4% margin assumed by Prof. Dieter Langfeld of Rheinsberg Advisory AG must be tested against Kestrel's actual historical margins, and the renewal-period claim must be shown to rest on the unfounded assumption that WAL would have exercised both discretionary renewal options.

C. Key Evidentiary References

The following evidentiary references are central to the cross-examination outlines and will be used across multiple witnesses. Counsel should ensure familiarity with each document and have physical or electronic copies readily accessible during the hearing.

Contract Documents:

• MSA dated June 15, 2018 (WAL-KDG-MSA-2018-0615), including all schedules, appendices, and exhibits

• Amendment No. 1 dated February 10, 2020

• Amendment No. 2 dated September 3, 2021

• Key MSA provisions:

• Section 4.1 (Volume Commitments)

• Section 5.2 (Pricing and Escalation)

• Section 8.4 (Rejection, Cure, and Persistent Quality Failure)

• Section 8.7 (Exclusive Remedy and Consequential Damages Waiver)

• Section 14.2 (Termination for Cause)

Technical Specifications:

• WAL-SPEC-TH-401, Appendix C, Table 3 (porosity specification ≤0.25%)

• WAL-SPEC-TH-401 through WAL-SPEC-TH-410 (full suite of engineering specifications)

• WAL-QCP-100 (incoming inspection procedures)

• AS9100 Rev D certification requirements

Lot Information:

• Lot numbers: KDG-2022-0307 (first rejected lot, March 7, 2022) through KDG-2022-0919 (last rejected lot, September 19, 2022)

• Total rejected lots: 14

• Total rejected units: 1,680

Expert Reports:

• Dr. Raymond Chow, Arclight Materials Science Inc. (Respondent's metallurgical expert): porosity range of 0.19%–0.38% in rejected lots

• Dr. Martina Kessler, Albrecht Prüftechnik GmbH (Claimant's metallurgical expert)

• Dr. Nadia Ostrovsky, Ridgeline Economic Consulting LLC (Respondent's damages expert)

• Prof. Dieter Langfeld, Rheinsberg Advisory AG (Claimant's damages expert): 22.4% margin assumption

Documents Obtained in Production:

• Internal Kestrel communications produced pursuant to Procedural Order No. 2 (March 17, 2023), including emails and memoranda among Brenner, Erdmann, and Voss regarding lot rejections, quality concerns, root-cause analysis, and corrective actions

D. General Examination Strategy Notes

All three Kestrel witnesses will be examined by Claimant's counsel — Dr. Maximilian Haber and/or Katrin Schäfer of Haber Reinhardt Schlosser Partnerschaft mbB — on direct examination before Respondent's cross-examination. The cross-examination order will follow the order of direct examination. The estimated total cross-examination time for all three witnesses is to be confirmed per Respondent's Pre-Hearing Organizational Submissions filed in December 2023. As a general matter, Respondent should request the maximum time available under the Tribunal's Procedural Order No. 4 and the equal-time allocation framework adopted at the case management conference.

Tone and Approach — Witness-Specific Guidance:

• Friedrich Brenner: Measured and methodical. Brenner is the most senior witness, co-founder of Kestrel, and the company's managing director. He will be cautious, well-prepared, and reluctant to make concessions. The approach should be structured, building incrementally from uncontroversial foundational questions to documents and data points that compel concessions. Avoid confrontational tone in the early stages; let the documents speak. Reserve more assertive questioning for the impeachment sections (quality awareness, Valkyr theory, and damages).

• Luisa Erdmann: More assertive. Erdmann is the commercial director and was the primary point of contact for WAL. Her contemporaneous correspondence is the most fertile ground for impeachment. She is likely to have made admissions in emails to WAL's Gerald Huang that are inconsistent with Kestrel's litigation position. The cross-examination should move quickly from context-setting to document confrontation. Use paired questions: first establish the litigation position, then present the contemporaneous document that contradicts it.

• Dr. Stefan Voss: Technical and precise. Voss is Kestrel's quality expert and must be pinned to specific data points. The cross-examination should proceed with scientific rigor, asking precise questions about testing methodologies, measurement results, calibration records, and corrective action reports. Any attempt to equivocate on data should be met with requests for specific numbers, dates, and documents. The contrast between Kestrel's internal test data and Dr. Chow's independent findings is the central impeachment opportunity.

Language Considerations: The language of the arbitration is English. All three Kestrel witnesses are German-speaking. Claimant may request interpretation services, and the Tribunal has indicated it will accommodate such requests. If an interpreter is used, counsel should adjust pacing accordingly. Questions should be short, declarative, and unambiguous to minimize translation issues. Avoid compound questions and idiomatic English expressions. Where German-language documents are used, ensure certified English translations are available and confirm with the witness which version he or she is reading from.

Coordination with Expert Team: Sandra Gillespie of Canfield & Thorpe LLP (forensic accountant retained by Respondent) will be present in the hearing room to provide real-time support on financial and damages-related lines of cross-examination, particularly during the examination of Erdmann and, to a lesser extent, Brenner. Any financial data points or margin calculations elicited from the witnesses should be flagged in real time for Ms. Gillespie's verification.

II. Cross-Examination Outline: Friedrich Brenner (Managing Director / Geschäftsführer)

A. Witness Background and Credibility Foundations

The initial phase of Brenner's cross-examination should establish his seniority, his personal involvement in the key events, and his status as the ultimate decision-maker at Kestrel. This foundational segment serves two purposes: it prevents Brenner from later claiming ignorance or lack of authority, and it establishes for the Tribunal that Brenner's testimony carries particular weight because of his position.

Line of Questioning:

1. Mr. Brenner, you are the co-founder of Kestrel Dynamics GmbH, correct?

Confirm that Brenner co-founded Kestrel in 2004 and has served as Geschäftsführer (managing director) continuously since that date.

2. As Geschäftsführer, you are the most senior executive decision-maker at Kestrel, are you not?

Confirm that Brenner has ultimate responsibility for all commercial and operational matters at Kestrel. He should not be permitted to characterize himself as merely one of several decision-makers if the corporate structure shows him as sole Geschäftsführer or as the senior among co-managing directors. If he claims shared authority, establish the specific governance structure and his predominant role.

3. You were personally involved in negotiating the Master Supply Agreement with Whitmore Aerospace LLC, executed on June 15, 2018?

Confirm personal involvement. Brenner's first witness statement (¶¶ 4–12) describes his role in the MSA negotiations. Use his own witness statement as the anchor for this confirmation.

4. You signed the MSA on behalf of Kestrel, did you not?

Confirm execution. The MSA signature page should be available to present if needed.

5. Before signing the MSA, you reviewed and approved the quality requirements, including the engineering specifications referenced in the MSA?

Confirm that Brenner personally reviewed the quality requirements, including WAL-SPEC-TH-401 and its appendices, before executing the MSA. This is essential for the porosity-specification line of questioning that follows.

6. You were personally involved in Kestrel's decisions regarding how to respond to Whitmore Aerospace's lot rejections beginning in March 2022?

Confirm personal involvement in the rejection response process. This prevents any later attempt to deflect responsibility to Erdmann or Voss.

B. Knowledge of the Porosity Specification

This segment is designed to establish, through Brenner's own admissions, that the contractual porosity specification was clear, unambiguous, and set at ≤0.25% — not at the ≤0.15% level that Kestrel contends WAL "unpublishedly" applied. This is a critical line because it goes to the heart of Kestrel's defense on the merits.

Line of Questioning:

1. Mr. Brenner, I'd like to direct your attention to a document in your binder. This is WAL-SPEC-TH-401, Appendix C, Table 3. Do you recognize this document?

Present WAL-SPEC-TH-401, Appendix C, Table 3. Confirm that Brenner recognizes the specification. Confirm that this document was part of the package of engineering specifications incorporated by reference into the MSA at the time of execution on June 15, 2018.

2. Table 3 sets forth the maximum permissible porosity for Ti-6Al-4V ELI titanium alloy turbine housings at ≤0.25%, correct?

This is a document-driven question; the answer is contained in Table 3 itself. Brenner should confirm. If he attempts to qualify or contextualize, redirect to the plain text of Table 3.

3. You reviewed and approved this specification before Kestrel entered into the MSA, correct?

This follows from the foundation established in Section A. If Brenner claims he did not personally review Appendix C, Table 3, follow up: As managing director, you had access to all specifications incorporated into the MSA, did you not? And you had the opportunity to review them before you signed the agreement?

4. After the MSA was executed on June 15, 2018, was any amendment, side letter, or other written instrument ever executed between WAL and Kestrel that changed the porosity specification from ≤0.25% to any other level?

Expected answer: No. Confirm that Amendment No. 1 and Amendment No. 2 did not modify the porosity specification. If Brenner suggests an oral modification or course of dealing, note that MSA Section 22.3 requires all amendments to be in writing signed by both parties.

5. Mr. Brenner, Kestrel's position in this arbitration is that Whitmore Aerospace applied an "unpublished" standard of ≤0.15% porosity to reject the lots at issue. You are aware of that pleading position?

Confirm awareness.

6. Have you ever seen any Whitmore Aerospace document — a specification, a memorandum, an email, a letter, or any other writing — that states a porosity requirement of ≤0.15%?

Expected answer: No. If Brenner claims he has seen such a document, demand that he identify it with specificity (date, author, recipient, document number). This document has not appeared in the production and does not appear in the record. If he cannot identify it, note the failure for the record.

7. If the contractual porosity standard was ≤0.25%, and Dr. Raymond Chow's independent analysis found porosity levels ranging from 0.19% to 0.38% in the fourteen rejected lots, then a number of those lots exceeded the contractual limit — do you agree?

This is an arithmetic question. Brenner may resist, but the math is straightforward: any lot with porosity above 0.25% exceeded the specification. Note that Dr. Chow found a range; lots at the lower end of the range (0.19%–0.25%) may have been within specification, but lots at the upper end (above 0.25% through 0.38%) clearly exceeded it.

8. I'd like to show you [document reference — internal Kestrel communication obtained in production]. This is an email dated [date] from you to Dr. Voss in which you acknowledge that certain lots exhibited porosity levels above 0.25%. Do you recognize this email?

Key document: Any internal Kestrel communication (obtained in document production under Procedural Order No. 2) in which Brenner acknowledged porosity levels above the contractual specification. The specific document reference should be inserted once the final hearing bundle is assembled. This is the critical impeachment point: Brenner's own contemporaneous acknowledgment contradicts Kestrel's litigation position.

C. Awareness of Quality Failures

This segment establishes that Brenner was personally aware of the quality failures as they accumulated over the six-month period from March through September 2022 and that he failed to take effective corrective action despite his awareness.

Line of Questioning:

1. Mr. Brenner, I'd like to walk through the chronology of the lot rejections. The first rejected lot was Lot KDG-2022-0307, rejected by WAL on or about March 7, 2022. Do you recall that?

Establish the starting point. Then walk through the chronology of all 14 lot rejections from Lot KDG-2022-0307 through Lot KDG-2022-0919. The goal is to impress upon the Tribunal the volume and frequency of the rejections over a six-month period.

2. You received WAL's rejection notices for each of these fourteen lots, did you not?

Confirm receipt. If Brenner claims the notices went to Erdmann or Voss rather than directly to him, follow up: But you were informed of each rejection, were you not? As managing director, lot rejections of this magnitude were brought to your attention?

3. I'd like to show you [document reference — internal Kestrel email/memorandum]. This is a [date] communication in which you discuss the quality problems with the rejected lots. Do you recognize this document?

Present any internal Kestrel emails or memoranda in which Brenner acknowledged quality issues, discussed root-cause analysis, or expressed concern about the pattern of rejections. Walk through each relevant document chronologically.

4. After the first rejections in March 2022, did you direct any specific corrective action to address the porosity issues?

If yes, ask what specific corrective actions were directed. Follow up by asking why those actions failed to prevent subsequent rejections. If no, establish that the managing director failed to direct corrective action after the first sign of quality problems.

5. Between March and September 2022, Kestrel had fourteen lots rejected — a total of 1,680 units. Over that six-month period, did you implement any effective corrective measures that stopped the pattern of rejections?

The answer must be no, because the rejections continued through September 2022. Regardless of what corrective measures Brenner claims were taken, the objective fact is that the rejections did not stop.

6. Was Kestrel's AS9100 Rev D certification ever at risk due to these quality failures?

This question probes the severity of the quality issues from a regulatory/certification perspective. If Brenner says no, follow up: Fourteen lot rejections in six months — representing 1,680 non-conforming units — and Kestrel's AS9100 certification was never at risk? Were there any internal audit findings related to these quality failures?

D. Cure Efforts and the 45-Day Period

This segment addresses the sufficiency and timeliness of Kestrel's cure efforts, which is the core contractual issue underlying WAL's termination for Persistent Quality Failure.

Line of Questioning:

1. Mr. Brenner, you are familiar with Amendment No. 2 to the MSA, dated September 3, 2021?

Confirm familiarity.

2. Amendment No. 2 extended the cure period for rejected lots from 30 calendar days to 45 calendar days, correct?

Confirm. This extension was actually a concession negotiated by Kestrel, which underscores that Kestrel understood the importance of the cure mechanism and sought additional time.

3. Despite the extended 45-day cure period, Kestrel failed to replace or rework seven of the fourteen rejected lots within 45 calendar days. You are aware of that, are you not?

Confirm. If Brenner disputes the number, present the cure-tracking spreadsheet or rejection-response correspondence for each of the seven uncured lots.

4. For each of those seven uncured rejections, can you tell the Tribunal what specific steps Kestrel took to attempt to cure?

This is an open question designed to test the depth and credibility of Brenner's account of cure efforts. For each uncured rejection, probe: Was a replacement lot manufactured? Was the rejected lot reworked? What was the timeline? Why did the cure fail? What resources were allocated?

5. Mr. Brenner, you are familiar with Section 8.4 of the MSA, which defines "Persistent Quality Failure"?

Confirm familiarity.

6. Section 8.4 provides that a Persistent Quality Failure exists when there are three or more uncured rejections in any rolling twelve-month period. You understood that provision, correct?

Confirm understanding.

7. Seven uncured rejections in a six-month period far exceeded the three-rejection threshold, did it not?

This is an arithmetic question. Seven exceeds three. Brenner must concede.

8. Before WAL issued its Notice of Termination for Cause on October 3, 2022, did Kestrel ever communicate to WAL — in writing or otherwise — that Kestrel disputed the applicability of Section 8.4?

Expected answer: No. If Brenner claims there was such a communication, ask him to identify it with specificity. The absence of any contemporaneous challenge to the applicability of § 8.4 is a powerful point: Kestrel raised this objection only after filing for arbitration.

E. Motive and Valkyr Replacement Theory

This segment addresses and dismantles Kestrel's narrative theory that WAL's true motive was to replace Kestrel with Valkyr as a lower-cost domestic supplier.

Line of Questioning:

1. Mr. Brenner, it is Kestrel's position in this arbitration that Whitmore Aerospace's true motive in rejecting the lots and terminating the MSA was to replace Kestrel with a lower-cost domestic supplier — Valkyr Precision Components Inc. in Tucson, Arizona. You are aware of that position?

Confirm awareness. Brenner's first witness statement advances this theory.

2. Do you have personal knowledge of when WAL first contacted Valkyr Precision Components?

Expected answer: No. If Brenner claims to have such knowledge, ask the basis — did he see a document? Was he told by someone at WAL? By whom, and when?

3. I'd like to show you [WAL timeline document]. WAL's records show that its first contact with Valkyr occurred on [date], which was after the quality failures began in March 2022. Is there anything in Kestrel's possession that contradicts this timeline?

Establish that WAL's engagement with Valkyr was a mitigation measure undertaken in response to Kestrel's quality failures, not a preexisting plan to replace Kestrel.

4. Mr. Brenner, you are aware that Valkyr's unit price for the same turbine housings is €8,432.92 per unit?

Confirm.

5. And Kestrel's price in Contract Year 4 was €5,222.92 per unit, correct?

Confirm.

6. That is a difference of approximately €3,210 per unit — Valkyr charges more than 61% more than Kestrel charged in CY4. You would agree with that arithmetic?

Confirm. The math is straightforward: (€8,432.92 − €5,222.92) / €5,222.92 = approximately 61.5%.

7. Valkyr offered WAL an introductory discount of 4.2%, bringing the effective price to approximately €8,078.74 per unit. Even with that discount, Valkyr's price is still approximately €2,855.82 per unit more than Kestrel's CY4 price. You would agree?

Confirm. Calculation: €8,432.92 × 0.958 = approximately €8,078.74; €8,078.74 − €5,222.92 = approximately €2,855.82.

8. Mr. Brenner, would it be commercially rational for a company to replace a supplier charging €5,222.92 per unit with a supplier charging more than €8,000 per unit if the motivation were simply to reduce costs?

Expected answer: reluctant concession that it would not be rational, or an attempt to explain around the pricing. Either way, the pricing differential speaks for itself.

F. Damages and Commercial Position

This segment challenges the credibility and quantum of Kestrel's damages claim, with particular focus on the renewal-period lost-profits component and the reputational damages claim.

Line of Questioning:

1. Mr. Brenner, the MSA provides for an initial five-year term with two one-year renewal options. You are aware of that?

Confirm.

2. Those renewal options are exercisable solely at WAL's discretion — WAL has the unilateral right to decide whether to renew. Correct?

Confirm. MSA Section [specific section] provides that the renewal options are exercisable by written notice from WAL, at WAL's sole discretion. There is no corresponding right on Kestrel's part to compel renewal.

3. Did WAL ever communicate to you — in writing or orally — an intent to exercise either renewal option?

Expected answer: No. If Brenner claims there was such a communication, demand specifics: when, by whom, in what form.

4. Yet Kestrel's damages claim includes €27.15 million in lost profits for the two renewal periods. That figure assumes WAL would have exercised both renewal options, does it not?

Confirm that the renewal-period claim is premised on an assumption of renewal that is unsupported by any binding commitment or express communication of intent.

5. Prof. Langfeld's damages analysis assumes a 22.4% profit margin for Kestrel's production of turbine housings under the MSA. Are you familiar with that assumption?

Confirm familiarity.

6. What were Kestrel's actual profit margins on the WAL contract for Contract Years 1 through 4?

Probe actual vs. assumed margins. If Brenner does not know the specific numbers, note that he is the managing director and should be familiar with the profitability of a major contract. If the actual margins differ from the 22.4% assumption, highlight the discrepancy.

7. Kestrel's total annual revenue for fiscal year 2022 was approximately €312 million. You can confirm that?

Confirm.

8. What percentage of Kestrel's total annual revenue was attributable to the WAL contract?

Probe revenue concentration. At a CY4 price of €5,222.92 per unit and assuming volumes between 2,400 and 3,600 units, the WAL contract generated between approximately €12.5 million and €18.8 million in annual revenue — representing between approximately 4% and 6% of Kestrel's total revenue. This context is relevant to both the lost-profits and reputational damages claims.

9. Kestrel claims €3.90 million in reputational damages. Mr. Brenner, can you identify any specific customer that Kestrel lost as a direct result of WAL's termination of the MSA?

Expected answer: vague or no specific identification. If Brenner identifies a customer, demand the name, the date of the lost business, the value of the lost contract, and any documentation of the customer's stated reason for not doing business with Kestrel. If he cannot provide specifics, note the insufficiency of the reputational damages claim.

G. The Termination Notice

This final segment of Brenner's cross-examination addresses the circumstances surrounding WAL's termination of the MSA and Kestrel's rapid filing of the Request for Arbitration, which suggests pre-planned litigation rather than good-faith efforts to resolve the dispute.

Line of Questioning:

1. Mr. Brenner, you received WAL's Notice of Termination for Cause, dated October 3, 2022?

Confirm receipt.

2. The notice cited Persistent Quality Failure under Section 14.2(b) as the basis for termination?

Confirm.

3. After receiving that notice, did Kestrel respond with any proposal to cure the quality failures or to resolve the dispute commercially?

Expected answer: No, or at most a brief acknowledgment letter. The key point is the absence of any cure proposal or commercial resolution effort.

4. Kestrel filed its Request for Arbitration with the ICC on November 7, 2022 — just 35 days after the termination notice. Correct?

Confirm the timeline.

5. In those 35 days, rather than attempting to cure the outstanding quality failures or engage in commercial discussions with WAL, Kestrel retained Haber Reinhardt Schlosser, prepared a Request for Arbitration, and filed it with the ICC. Is that a fair characterization of what happened in those 35 days?

The point is clear: Kestrel prioritized litigation over cure. This is consistent with the broader theme that Kestrel's quality failures were genuine and that Kestrel recognized it could not cure them.

6. Mr. Brenner, is it fair to say that by the time WAL issued the termination notice, Kestrel had already concluded that it could not cure the quality problems and that its best course was to dispute the termination through arbitration?

This is a characterization question that Brenner will likely resist, but it frames the issue for the Tribunal. His answer is less important than the question itself.

III. Cross-Examination Outline: Luisa Erdmann (Commercial Director)

A. Witness Background and Role

The foundational segment for Erdmann's cross-examination establishes her role as the primary commercial interface between Kestrel and WAL and her responsibility for day-to-day contract administration. This is essential because Erdmann's contemporaneous correspondence is the richest source of impeachment material.

Line of Questioning:

1. Ms. Erdmann, you serve as the Commercial Director of Kestrel Dynamics GmbH, correct?

Confirm role.

2. In that capacity, you are responsible for international sales and contract management at Kestrel?

Confirm scope of responsibilities.

3. During the term of the MSA with Whitmore Aerospace, you were the primary commercial point of contact for WAL — the person at Kestrel who communicated most frequently with WAL's representatives on commercial and operational matters?