WARDEN TRIPLETT GRIER

A Professional Association
25 Old Broad St., Level 7
London EC2N 1HN
England
Telephone: +44 (0) 20 7872 5779
Fax: +44 (0) 20 7419 1360
www.wardentriplett.com
Michael J. Kuckelman Mobile: 44 (0) 7713 642 431
E-MAIL: mkuckelman@wtglaw.com

10 June 2002

Underwriters of Interest
Per Attachment A

Re: WTC
Our File: 2178-15

Dear Underwriters:

This letter is to update you regarding recent activity on the subrogation matter. Last
week, I was in New York to work with counsel regarding completion of the assignment of the
subrogation rights to Underwriters. We are still on track for the agreement to be executed by
your assureds this week.

I. Timing of Execution of the Subrogation Agreement

In regard to the timing of execution of the agreement, I have two comments.

1. Apparently, the lawyers for the assureds are treating the assignment for
subrogation purposes as part and parcel of the anticipated 14 June payment. Thus,
they are looking at the subrogation agreement side by side with the ACV
agreement which was provided to them by Ken Erickson. While I was in New
York, I obtained a copy of the agreement prepared by Ken Erickson. We then
altered the subrogation agreement somewhat to make the agreements
complimentary to each other and make them flow more logically together.

2. As for timing, I commented to Ken Erickson that the Wachtel group has told me
they intend to execute both documents by Friday, 14 June 2002. Erickson told me
that he believes that the Wachtel group will, in fact, get their part of the job done.
He questions whether some of the other members of the group will have
everything executed by Friday. As an example, he said that PONY tends to be a
bit slow executing agreements. Thus, he commented that perhaps Silverstein and

{00027197.DOC;} KANSAS CITY  LONDON

 WARDEN TRIPLETT GRIER
A Professional Association
25 Old Broad St., Level 7
London EC2N 1HN
England
Telephone: +44 (0) 20 7872 5779
Fax: +44 (0) 20 7419 1360
www.wardentriplett.com
Michael J. Kuckelman Mobile: 44 (0) 7713 642 431
E-MAIL: mkuckelman@wtglaw.com
Wachtel will have their work completed but PONY may not. I ask Ken what this
meant in terms of timing of payment and he said he believes payment would not
be made unless the agreements were fully executed by Friday. Since the
subrogation agreement is secondary to the primary ACV agreement, you are
obviously in the same position on the subrogation agreement as you are on the
ACV agreement. I am certain that Ken Erickson will comment on this at your
market meeting on Wednesday. I am certain that he wants you to progress as if
the payment will be made on Friday because even if the documents are not
completed, he can hold the money in the trust account to await the completion of
the documents. You should not alter your conduct in any way regarding payment
unless so advised by Erickson. I have no control over the payment of funds and I
do not want to interfere on the coverage side. Thus, please defer to Ken Erickson
on coverage.

II. Others Possibly Joining the Subrogation Action

1. Houston Casualty -- we are preparing information for Houston Casualty’s home

office to consider. The London office appears to be in favor of joining but must
have the agreement of the home office in Houston, Texas.

2. American Re-Insurance -- we met with American Re-Insurance while we were in

New York. They are based in Princeton, New Jersey. They requested a meeting
last week. We made ourselves available in New York. They also had their outside
general counsel come in for the meeting from Chicago, Illinois. They obviously
had completed a fair amount of research on the project and from a legal
standpoint are fully up to speed.

At the conclusion of the meeting, the American Re-Insurance manager and the
outside general counsel commented that they thought this program was
appropriate to join. However, they are in the position of a reinsurer. They are a
reinsurer with a significant amount of reinsurance. They would materially
contribute to the group’s size if they join. Obviously, the issue is whether they
have any subrogation rights as a reinsurer. They intend to go back and meet and
further discuss joining the process. They also intend to explore how they can
push their cedents to join this process. They discussed possibly arranging a
meeting at their home office and requesting the presence of all cedents where we
can make another presentation about the subrogation action and they would use
their leverage to get their cedents to join the action. If American Re-Insurance is

{00027197.DOC;} KANSAS CITY  LONDON

 WARDEN TRIPLETT GRIER
A Professional Association
25 Old Broad St., Level 7
London EC2N 1HN
England
Telephone: +44 (0) 20 7872 5779
Fax: +44 (0) 20 7419 1360
www.wardentriplett.com
Michael J. Kuckelman Mobile: 44 (0) 7713 642 431
E-MAIL: mkuckelman@wtglaw.com
successful in its effort, it will be very useful to you as a group because American
Re-Insurance adds material size to the group.

III. Updated Loss Numbers

Please bear in mind that we need updated figures from each of you. We want to make
certain that we coordinate and obtain the best claims information we have available prior
to filing suit. We also need all supporting data to support the amount of your claim.
Thus, a spread sheet with information regarding claims would be useful. We will also
need the proof of loss and claims files supporting the payments. We must have this
information when we file the lawsuit or we could possibly be in violation of Rule 11 of
the Federal Rules of Civil Procedure and ultimately in violation of Rule 26 of the Federal
Rules of Civil Procedure in regard to discovery.

IV. Expert Witnesses

We are still on track with our experts. Additionally, Kris Kuehn had a very good meeting
with Jim Hall. As you will recall, Mr. Hall is the former head of the National
Transportation Safety Board. (“NTSB”) He is very well know to the airlines and is
probably best remembered by most potential jurors based on his nightly appearance on
the evening news regarding the TWA 800 and ValuJet. He makes an excellent
presentation. The only issue to be resolved with him is in terms of his fee. Kris Kuehn
will report further on this matter when appropriate.

V. Status of Other Pending Cases

You had requested information regarding the status of other pending cases. As you know,
there are some victims who have filed claims. Unfortunately, the Southern District of
New York is not on line so this information is not accessible by computer. We have made
arrangements to go to the courthouse and physically review the files to determine
whether there are any orders that have been issued. It is difficult to get the files at the
current time as there seems to be others including the media who are reviewing the files
as well. We will get an update to you as soon as we have this information available.
Todd Scharnhorst from our Kansas City office is handling this and will report as soon as
the information is available.

VI. Timing of Filing Suit

{00027197.DOC;} KANSAS CITY  LONDON

 WARDEN TRIPLETT GRIER
A Professional Association
25 Old Broad St., Level 7
London EC2N 1HN
England
Telephone: +44 (0) 20 7872 5779
Fax: +44 (0) 20 7419 1360
www.wardentriplett.com
Michael J. Kuckelman Mobile: 44 (0) 7713 642 431
E-MAIL: mkuckelman@wtglaw.com
This is somewhat dependent upon Number V. above. Also, we have been advised by
Senator Dole’s office that we should wait at least until the 1st of July because there is
excellent information coming out of Congress based on its current investigation of what
was known prior to September 11. Their concern is that if we immediately file a large
lawsuit, it may cause Congress to back off its investigation in order to limit the number of
lawsuits.

I will be in contact in the near future to arrange for a market meeting to finalize the filing
of the lawsuit. In the interim, if you have any questions, please do not hesitate to contact us.

Very truly yours,

Michael J. Kuckelman

MJK/ljm

cc: Tim Triplett – via e-mail

Kris Kuehn – via e-mail
Todd Scharnhorst – via e-mail
Frank Granito – via e-mail

{00027197.DOC;} KANSAS CITY  LONDON

Attachment A:

Tony Wilson - Hiscox

Bob Britton - Hiscox
Philip Coldbeck - Hiscox
Paul Jaffe - Catlin
Kees van der Klugt - Euclidian
Ian Holmes - Euclidian
Richard Cook - Alleghany
Nick Coles - Cox
Ted Jaggers - Great Lakes