RJR Nabisco Inc. (Formerly R.J. Reynolds Industries, Inc.) and Consolidated Subsidiaries - Page 15

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          received documentary evidence and expert reports, and the                   
          tribunal heard witnesses and received oral argument.  The                   
          tribunal’s procedures provided for hearings, to be conducted in             
          two stages, with the second devoted to “quantum”.  Eventually,              
          however, the tribunal found the quantum stage to be unnecessary,            
          and it never occurred.                                                      
                    3.  Questions Presented to the Tribunal                           
               Among the questions presented to the tribunal were the                 
          following:  (1) Whether the expropriation constituted a breach of           
          the concession agreement by Kuwait and, therefore, was an                   
          unlawful taking under public international law, (2) whether                 
          Aminoil’s reparation should be measured by the public                       
          international law standard for a lawful expropriation or by the             
          higher public international law standard for an unlawful                    
          expropriation, and (3) whether Aminoil’s reparation should                  
          include compensation for its concession as measured by the                  
          profits Aminoil lost as a result of the premature termination of            
          the concession agreement.  Other questions presented to the                 
          tribunal included the question of whether any interest was due              
          either party, as provided for by the arbitration agreement, and             
          questions relating to Kuwait’s counterclaims against Aminoil for            
          royalties, taxes, and other asserted liabilities.                           
               The question of whether the expropriation was lawful or                
          unlawful was important for Aminoil because it believed that,                





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