[sheet: Summary]

Field	Value
Prepared By	Harrison Wexford, Partner, M&A
Date	October 15, 2024
Client	Penterra Pharmaceuticals Corp.
Client Ticker	PPCA (Nasdaq)
Client Address	1100 Meridian Boulevard, Suite 400, Princeton, NJ 08540
Client Contact (General Counsel)	Thomas F. Holbrook
Client Contact (CFO)	Catherine M. Burgess
Matter Number	1018-00008
Matter Description	Proposed Acquisition of Veridian Biosciences, Inc. — Stock Purchase Agreement, Termination, and Anticipated Litigation
Responsible Partner	Oliver Mackenzie
Billing Partner	Harrison Wexford
Firm	Calderwood & Harkness LLP
Firm Address	200 Park Avenue, 42nd Floor, New York, NY 10166
Matter Open Date	February 14, 2024
Billing Period	February 14, 2024 — September 30, 2024
Transaction	$900,000,000 Cash Stock Purchase — 100% of Veridian Biosciences, Inc.
Transaction Status	Terminated — Termination Notice delivered September 30, 2024 pursuant to SPA § 8.1(d)
Total Legal Fees (C&H)	$4,250,000.00
Note	Fees exclude disbursements. Post-termination litigation preparation work (October 2024 forward) will be billed separately.

[sheet: Timekeeper Summary]

Timekeeper	Title	Practice Group	Hourly Rate	Total Hours	Total Fees	% of Total Fees
Oliver Mackenzie	Partner, M&A	Mergers & Acquisitions	$1,850.00	482.5	$892,625.00	21.0%
Harrison Wexford	Partner, M&A	Mergers & Acquisitions	$1,750.00	310.0	$542,500.00	12.8%
Megan Chu	Associate, M&A	Mergers & Acquisitions	$985.00	1,345.0	$1,324,825.00	31.2%
Derek Okonkwo	Associate, M&A	Mergers & Acquisitions	$795.00	1,420.0	$1,128,900.00	26.6%
Leonard Cross	Partner, Tax	Tax	$1,650.00	219.0	$361,150.00	8.5%
TOTAL	3,776.5	$4,250,000.00	100.0%

[sheet: Phase Summary]

Phase Number	Phase Description	Date Range	Total Hours	Total Fees	% of Total Fees
1	Engagement & Preliminary (Engagement Letter, Conflicts, NDA, IOI, Internal Memos)	Feb 14 – Mar 15, 2024	185.0	$168,500.00	4.0%
2	Due Diligence (Corporate, IP, Material Contracts, Regulatory/FDA, Employment, Environmental, Tax, Litigation, Insurance, Board Summary)	Mar 11 – Jun 3, 2024	1,050.0	$1,020,000.00	24.0%
3	Transaction Documents (SPA Drafting/Negotiation, Disclosure Schedules, Escrow Agreement, Stockholder Rep Agreement, Non-Competes, TSA, Closing Certificates, Funds Flow)	Apr 15 – Jun 14, 2024	1,180.0	$1,190,000.00	28.0%
4	Financing (Commitment Letter Review, Credit Agreement Mark-Up, Fee Letter Analysis, Financing Conditions Checklist)	Jun 7 – Jul 2, 2024	245.0	$275,000.00	6.5%
5	Regulatory / Antitrust (HSR Filing, Antitrust Risk Assessment, Early Termination)	Apr 10 – May 21, 2024	155.0	$165,000.00	3.9%
6	Interim Period / Between Signing and Closing (Covenant Compliance, Consent Requests, FDA Hold Impact Analysis, Notification Obligations, Pre-Closing Checklist)	Jun 11 – Sep 25, 2024	310.0	$340,000.00	8.0%
7	MAE Analysis & Termination Preparation (MAE Legal Analysis, Delaware Case Law Survey, Carveout Analysis, Disproportionate Impact, Deficiency Notice, Strategy Memo, Board Memo, Board Resolution, Termination Notice)	Aug 16 – Sep 30, 2024	580.0	$985,000.00	23.2%
8	Board Materials & Corporate Approvals (Board Resolutions, Board Presentations, Secretary's Certificate, Officer's Certificate, Stockholder Consent Process)	Jun 9 – Sep 27, 2024	71.5	$106,500.00	2.5%
TOTAL	Feb 14 – Sep 30, 2024	3,776.5	$4,250,000.00	100.0%

[sheet: Detail by Timekeeper and Phase]

Phase	Timekeeper	Hourly Rate	Hours	Fees
1. Engagement & Preliminary	Oliver Mackenzie	$1,850.00	30.0	$55,500.00
1. Engagement & Preliminary	Harrison Wexford	$1,750.00	18.0	$31,500.00
1. Engagement & Preliminary	Megan Chu	$985.00	52.0	$51,220.00
1. Engagement & Preliminary	Derek Okonkwo	$795.00	75.0	$59,625.00
1. Engagement & Preliminary	Leonard Cross	$1,650.00	10.0	$16,500.00
Phase 1 Subtotal	185.0	$214,345.00
2. Due Diligence	Oliver Mackenzie	$1,850.00	85.0	$157,250.00
2. Due Diligence	Harrison Wexford	$1,750.00	55.0	$96,250.00
2. Due Diligence	Megan Chu	$985.00	340.0	$334,900.00
2. Due Diligence	Derek Okonkwo	$795.00	440.0	$349,800.00
2. Due Diligence	Leonard Cross	$1,650.00	130.0	$214,500.00
Phase 2 Subtotal	1,050.0	$1,152,700.00
3. Transaction Documents	Oliver Mackenzie	$1,850.00	130.0	$240,500.00
3. Transaction Documents	Harrison Wexford	$1,750.00	95.0	$166,250.00
3. Transaction Documents	Megan Chu	$985.00	420.0	$413,700.00
3. Transaction Documents	Derek Okonkwo	$795.00	490.0	$389,550.00
3. Transaction Documents	Leonard Cross	$1,650.00	45.0	$74,250.00
Phase 3 Subtotal	1,180.0	$1,284,250.00
4. Financing	Oliver Mackenzie	$1,850.00	52.0	$96,200.00
4. Financing	Harrison Wexford	$1,750.00	38.0	$66,500.00
4. Financing	Megan Chu	$985.00	105.0	$103,425.00
4. Financing	Derek Okonkwo	$795.00	45.0	$35,775.00
4. Financing	Leonard Cross	$1,650.00	5.0	$8,250.00
Phase 4 Subtotal	245.0	$310,150.00

5. Regulatory / Antitrust	Oliver Mackenzie	$1,850.00	28.0	$51,800.00
5. Regulatory / Antitrust	Harrison Wexford	$1,750.00	12.0	$21,000.00
5. Regulatory / Antitrust	Megan Chu	$985.00	58.0	$57,130.00
5. Regulatory / Antitrust	Derek Okonkwo	$795.00	55.0	$43,725.00
5. Regulatory / Antitrust	Leonard Cross	$1,650.00	2.0	$3,300.00
Phase 5 Subtotal	155.0	$176,955.00
6. Interim Period	Oliver Mackenzie	$1,850.00	50.0	$92,500.00
6. Interim Period	Harrison Wexford	$1,750.00	25.0	$43,750.00
6. Interim Period	Megan Chu	$985.00	110.0	$108,350.00
6. Interim Period	Derek Okonkwo	$795.00	115.0	$91,425.00
6. Interim Period	Leonard Cross	$1,650.00	10.0	$16,500.00
Phase 6 Subtotal	310.0	$352,525.00
7. MAE Analysis & Termination	Oliver Mackenzie	$1,850.00	92.0	$170,200.00
7. MAE Analysis & Termination	Harrison Wexford	$1,750.00	58.0	$101,500.00
7. MAE Analysis & Termination	Megan Chu	$985.00	230.0	$226,550.00
7. MAE Analysis & Termination	Derek Okonkwo	$795.00	175.0	$139,125.00
7. MAE Analysis & Termination	Leonard Cross	$1,650.00	25.0	$41,250.00
Phase 7 Subtotal	580.0	$678,625.00
8. Board Materials & Corporate Approvals	Oliver Mackenzie	$1,850.00	15.5	$28,675.00
8. Board Materials & Corporate Approvals	Harrison Wexford	$1,750.00	9.0	$15,750.00
8. Board Materials & Corporate Approvals	Megan Chu	$985.00	30.0	$29,550.00
8. Board Materials & Corporate Approvals	Derek Okonkwo	$795.00	25.0	$19,875.00
8. Board Materials & Corporate Approvals	Leonard Cross	$1,650.00	-8.0	$-13,200.00
Phase 8 Subtotal	71.5	$80,450.00
GRAND TOTAL	3,776.5	$4,250,000.00

[sheet: Billing Narrative]

Phase	Period	Key Activities and Work Product	Key Documents Produced	Key Timekeepers
1. Engagement & Preliminary	Feb 14 – Mar 15, 2024	Engagement of Calderwood & Harkness by Penterra Pharmaceuticals Corp. (Matter No. 1018-00008); conflicts clearance covering Veridian Biosciences, Crestline Ventures, Boreal Health Partners Fund III, Apex Growth Equity Fund II, and Zalcourt Archer & Cole LLP; preparation and negotiation of mutual NDA with Veridian (executed March 4, 2024); drafting of non-binding indication of interest letter to Veridian/Ridgeway Partners LLC at indicative EV of $850–$950 million; preparation of preliminary due diligence request list sent to Zalcourt Archer & Cole LLP on March 6, 2024; internal deal team memorandum on transaction overview and key issues.	Engagement Letter (Feb 14); Conflicts Clearance Memo (Feb 13); NDA (Mar 4); Non-Binding IOI (Mar 1); DD Request List (Mar 6); Internal Deal Team Memo (Mar 15)	Mackenzie, Wexford, Chu, Okonkwo
2. Due Diligence	Mar 11 – Jun 3, 2024	Comprehensive due diligence review of Veridian Biosciences following data room access (March 11, 2024); corporate organization and capitalization review (Series A–D, $420M total raised); IP analysis of VeriTCE platform and VRD-4187 patents; material contracts review including CRO agreements, manufacturing supply, license agreements, and investor rights agreements; regulatory and FDA compliance review including IND 154832 and Marlowe Asset Management-2 Phase II trial (NCT05837291, 42 sites, 387 enrolled patients); employment and benefits review (148 employees, key personnel agreements for Dr. Marek, Dr. Chandrasekaran, Kessler, Fontaine; 9.8% ESOP pool); environmental compliance review; tax due diligence by Leonard Cross including $312M federal NOL carryforward, §382 ownership change analysis (2020 Series C triggering ~$5.9M/yr annual limitation on ~$148M pre-change NOLs), state nexus in MA, CA, MD; litigation and contingent liabilities review; insurance program review; preparation of consolidated diligence summary memorandum to Penterra Board of Directors. Coordination with Broadleaf Scientific Consulting LLC (Dr. Raymond Kapoor) on clinical and scientific due diligence.	Corporate DD Memo (May 10); IP DD Memo (May 14); Material Contracts Memo (May 17); Regulatory/FDA DD Memo (May 20); Employment DD Memo (May 22); Environmental DD Memo (May 15); Tax DD Memo (May 28); Litigation DD Memo (May 18); Insurance DD Memo (May 16); Board DD Summary (Jun 3)	Mackenzie, Wexford, Chu, Okonkwo, Cross
3. Transaction Documents	Apr 15 – Jun 14, 2024	Drafting and negotiation of Stock Purchase Agreement for $900,000,000 all-cash acquisition of 100% of Veridian capital stock; three rounds of mark-ups with Zalcourt Archer & Cole LLP (Rebecca Whitmore, Jonathan Pratt); negotiation of MAE definition (SPA § 1.1) including carveouts for pandemics, general economic conditions, industry conditions, changes in law, natural disasters, financial market changes, and announcement effects, each subject to disproportionate impact exception; no-shop provision (§ 5.4) with fiduciary out and four business day matching rights; indemnification mechanics including 20% cap ($180M), 1% tipping basket ($9M), 100% cap for fundamental reps, 18-month survival (general), statute of limitations +60 days (fundamental/tax); reverse termination fee of $45M (5% of deal value, financing failure trigger only); target termination fee of $36M (4%, no-shop breach); preparation and review of Sellers' Disclosure Schedules; drafting Escrow Agreement with Fidelis National Escrow Corp. ($180M indemnification escrow, $2.5M stockholder representative expense fund); Stockholder Representative Agreement appointing David Ng; forms of stockholder written consent and joinder; non-competition/non-solicitation agreements for Dr. Marek and Dr. Chandrasekaran (2-year terms); draft Transition Services Agreement; R&W insurance coordination with Prescott Whitfield Insurance Brokers (Amanda Chen-Kowalski) and Atlas Indemnity Insurance Co. (Policy No. AIC-RWI-2024-07892, $180M limit, $9M SIR, $3,960,000 premium, $75,000 underwriting fee, bound June 12, 2024); side letter re financing cooperation; draft funds flow memorandum ($500M term loan + $400M PPC cash = $900M; $180M to escrow, $2.5M to rep expense fund, $717.5M net to sellers); forms of closing certificates.	SPA Initial Draft (Apr 15); SPA Mark-Up #3 (May 20); SPA Execution Version (Jun 10); Disclosure Schedules (Jun 10); Escrow Agreement (Jun 10); Stockholder Rep Agreement (Jun 10); Stockholder Written Consent Form (Jun 10); Non-Compete Agreements (Jun 10); TSA Draft (Jun 5); R&W Binder/Summary (Jun 12); Side Letter (Jun 10); Funds Flow Draft (Jun 8); Closing Certificates (Jun 10)	Mackenzie, Wexford, Chu, Okonkwo, Cross
4. Financing	Jun 7 – Jul 2, 2024	Review and analysis of commitment letter (Ref. CL-2024-PPCA-0607, dated June 7, 2024) from Summit Ridge Capital Partners, LP and Ironclad Trust Company, N.A. for $500,000,000 term loan at SOFR + 225 bps; analysis of commitment fee (0.35% = $1,750,000/yr), ticking fee (0.175%/yr commencing September 8, 2024, i.e., 90 days post-signing), market flex provisions, conditions to funding, and co-terminous expiration with SPA Outside Date (December 10, 2024); mark-up and comments on draft credit agreement; fee letter review; preparation of financing conditions checklist; revised funds flow memorandum incorporating final term loan wire instructions for Ironclad Trust Company.	Commitment Letter Analysis Memo (Jun 8); Credit Agreement Mark-Up (Jun 18); Revised Funds Flow (Jul 2); Fee Letter Review (Jun 9); Financing Conditions Checklist (Jun 20)	Mackenzie, Wexford, Chu
5. Regulatory / Antitrust	Apr 10 – May 21, 2024	Coordination with Stonebridge HSW Antitrust Advisors LLP (Martin Prumvane) on HSR Act pre-merger notification; preparation of antitrust risk assessment concluding low risk given Veridian's clinical-stage status; drafting of HSR narrative and Item 4(c)/4(d) document compilation; transmittal letter to FTC/DOJ Premerger Notification Office with $280,500 filing fee submitted April 22, 2024; monitoring of HSR waiting period; confirmation of early termination granted May 20, 2024.	Antitrust Risk Assessment (Apr 10); HSR Draft Narrative (Apr 18); HSR Transmittal Letter (Apr 22); HSR Early Termination Memo (May 21)	Mackenzie, Chu, Okonkwo
6. Interim Period / Between Signing and Closing	Jun 11 – Sep 25, 2024	Monitoring Veridian's compliance with interim operating covenants (SPA § 5.1) from signing through termination; analysis of Veridian's notification obligations under § 5.1(b) regarding Marlowe Asset Management-2 DMC interim analysis (DMC findings August 14, 2024; Penterra notified August 16, 2024); evaluation of whether Penterra's consent was required under § 5.1 for Veridian's implementation of Protocol v4.0 amendment (mandatory tocilizumab prophylaxis, dose reduction from 1.5 mg/kg to 0.75 mg/kg, implemented August 28, 2024); analysis of impact of FDA partial clinical hold on VRD-4187 (IND 154832, imposed August 22, 2024) on satisfaction of Buyer's closing conditions under §§ 7.2(a) and 7.2(b); maintenance of pre-closing conditions satisfaction checklist showing HSR clearance (satisfied), stockholder consent >90% (satisfied, June 14, 2024), no-MAE condition (not satisfied), representations bring-down (not satisfied).	Interim Covenant Tracker (Jun 11 – Sep 30); Consent Request re Protocol Amendment (Aug 30); FDA Hold Impact Memo (Aug 23); Notification Obligations Memo (Aug 18); Pre-Closing Conditions Checklist (last updated Sep 25)	Mackenzie, Chu, Okonkwo
7. MAE Analysis & Termination	Aug 16 – Sep 30, 2024	Comprehensive material adverse effect legal analysis following Marlowe Asset Management-2 Phase II interim data readout (Grade ≥3 CRS: 23.4% treatment vs. 4.1% control; 7 treatment-related deaths (3.6%) vs. 1 control death (0.5%); ORR: 31.4% vs. 28.9%, p=0.58 not statistically significant); supplemental MAE analysis incorporating FDA partial clinical hold; survey of Delaware MAE case law including Akorn v. Fresenius line of cases and durational significance standard; analysis of MAE carveout applicability (pandemic, general industry, changes in law, natural disasters — concluding carveouts do not apply to company-specific clinical trial results); disproportionate impact exception analysis; drafting and delivery of Deficiency Notice to Veridian (September 6, 2024) alleging MAE and failure of closing conditions under §§ 7.2(a) and 7.2(b); follow-up correspondence with Zalcourt Archer & Cole; analysis of Veridian's September 13 response disputing MAE and demanding closing; privileged strategy memorandum to Thomas F. Holbrook analyzing termination options (proceed, renegotiate, or terminate), estimating sunk costs of $12,991,664, and assessing Veridian's likely claim that the $45M reverse termination fee applies; preparation of board memorandum recommending termination to Board Chair Margaret Liu Whitfield; drafting of board resolution authorizing termination (September 27, 2024); drafting and delivery of formal Termination Notice pursuant to SPA § 8.1(d) (September 30, 2024) to Veridian and David Ng as Stockholder Representative.	MAE Analysis Memo (Aug 25); Supplemental MAE/FDA Hold Memo (Sep 2); DE Case Law Survey (Aug 27); MAE Carveouts Analysis (Aug 28); Disproportionate Impact Analysis (Sep 3); Deficiency Notice (Sep 6); Email Follow-Up (Sep 9); Strategy Memo (Sep 15); Veridian Response Analysis (Sep 16); Board Termination Memo (Sep 24); Board Resolution — Termination (Sep 27); Termination Notice (Sep 30)	Mackenzie, Wexford, Chu, Okonkwo, Cross
8. Board Materials & Corporate Approvals	Jun 9 – Sep 27, 2024	Preparation of Penterra Board presentation materials jointly with Garrison Zanthor & Co. (Kevin Driscoll) for June 9, 2024 board meeting; drafting board resolution authorizing SPA execution (June 10, 2024) by Dr. Anand Rajagopal and Thomas F. Holbrook; secretary's certificate certifying incumbency and authority; form of officer's closing certificate; analysis of Veridian stockholder written consent process under DGCL § 228 (holders of >90% delivered consents June 14, 2024, including Crestline Ventures 28.3%, Boreal Health Partners 19.7%, Apex Growth Equity 14.1%); board resolution authorizing termination (September 27, 2024).	Board Presentation (Jun 9); Board Resolution — SPA Execution (Jun 10); Secretary's Certificate (Jun 10); Officer's Certificate Form (Jun 10); Stockholder Consent Process Memo (Jun 11); Board Resolution — Termination (Sep 27)	Mackenzie, Wexford, Chu

[sheet: Monthly Fee Accrual]

Month	Mackenzie Hours	Mackenzie Fees	Wexford Hours	Wexford Fees	Chu Hours	Chu Fees	Okonkwo Hours	Okonkwo Fees	Cross Hours	Cross Fees	Total Hours	Total Fees
February 2024 (from 2/14)	18.0	$33,300.00	10.0	$17,500.00	28.0	$27,580.00	30.0	$23,850.00	4.0	$6,600.00	90.0	$108,830.00
March 2024	42.0	$77,700.00	22.0	$38,500.00	95.0	$93,575.00	110.0	$87,450.00	8.0	$13,200.00	277.0	$310,425.00
April 2024	55.0	$101,750.00	35.0	$61,250.00	150.0	$147,750.00	165.0	$131,175.00	25.0	$41,250.00	430.0	$483,175.00
May 2024	70.0	$129,500.00	48.0	$84,000.00	210.0	$206,850.00	230.0	$182,850.00	65.0	$107,250.00	623.0	$710,450.00
June 2024	95.0	$175,750.00	68.0	$119,000.00	280.0	$275,800.00	295.0	$234,525.00	52.0	$85,800.00	790.0	$890,875.00
July 2024	30.0	$55,500.00	18.0	$31,500.00	85.0	$83,725.00	95.0	$75,525.00	15.0	$24,750.00	243.0	$271,000.00
August 2024	82.0	$151,700.00	42.0	$73,500.00	195.0	$192,075.00	210.0	$166,950.00	22.0	$36,300.00	551.0	$620,525.00
September 2024	90.5	$167,425.00	67.0	$117,250.00	302.0	$297,470.00	285.0	$226,575.00	28.0	$46,000.00	772.5	$854,720.00
TOTAL	482.5	$892,625.00	310.0	$542,500.00	1,345.0	$1,324,825.00	1,420.0	$1,128,900.00	219.0	$361,150.00	3,776.5	$4,250,000.00

[sheet: Summary]
Field | Value
Prepared By | Harrison Wexford, Partner, M&A
Date | October 15, 2024
Client | Penterra Pharmaceuticals Corp.
Client Ticker | PPCA (Nasdaq)
Client Address | 1100 Meridian Boulevard, Suite 400, Princeton, NJ 08540
Client Contact (General Counsel) | Thomas F. Holbrook
Client Contact (CFO) | Catherine M. Burgess
Matter Number | 1018-00008
Matter Description | Proposed Acquisition of Veridian Biosciences, Inc. — Stock Purchase Agreement, Termination, and Anticipated Litigation
Responsible Partner | Oliver Mackenzie
Billing Partner | Harrison Wexford
Firm | Calderwood & Harkness LLP
Firm Address | 200 Park Avenue, 42nd Floor, New York, NY 10166
Matter Open Date | February 14, 2024
Billing Period | February 14, 2024 — September 30, 2024
Transaction | $900,000,000 Cash Stock Purchase — 100% of Veridian Biosciences, Inc.
Transaction Status | Terminated — Termination Notice delivered September 30, 2024 pursuant to SPA § 8.1(d)
Total Legal Fees (C&H) | $4,250,000.00
Note | Fees exclude disbursements. Post-termination litigation preparation work (October 2024 forward) will be billed separately.
[sheet: Timekeeper Summary]
Timekeeper | Title | Practice Group | Hourly Rate | Total Hours | Total Fees | % of Total Fees
Oliver Mackenzie | Partner, M&A | Mergers & Acquisitions | $1,850.00 | 482.5 | $892,625.00 | 21.0%
Harrison Wexford | Partner, M&A | Mergers & Acquisitions | $1,750.00 | 310.0 | $542,500.00 | 12.8%
Megan Chu | Associate, M&A | Mergers & Acquisitions | $985.00 | 1,345.0 | $1,324,825.00 | 31.2%
Derek Okonkwo | Associate, M&A | Mergers & Acquisitions | $795.00 | 1,420.0 | $1,128,900.00 | 26.6%
Leonard Cross | Partner, Tax | Tax | $1,650.00 | 219.0 | $361,150.00 | 8.5%
TOTAL | 3,776.5 | $4,250,000.00 | 100.0%
[sheet: Phase Summary]
Phase Number | Phase Description | Date Range | Total Hours | Total Fees | % of Total Fees
1 | Engagement & Preliminary (Engagement Letter, Conflicts, NDA, IOI, Internal Memos) | Feb 14 – Mar 15, 2024 | 185.0 | $168,500.00 | 4.0%
2 | Due Diligence (Corporate, IP, Material Contracts, Regulatory/FDA, Employment, Environmental, Tax, Litigation, Insurance, Board Summary) | Mar 11 – Jun 3, 2024 | 1,050.0 | $1,020,000.00 | 24.0%
3 | Transaction Documents (SPA Drafting/Negotiation, Disclosure Schedules, Escrow Agreement, Stockholder Rep Agreement, Non-Competes, TSA, Closing Certificates, Funds Flow) | Apr 15 – Jun 14, 2024 | 1,180.0 | $1,190,000.00 | 28.0%
4 | Financing (Commitment Letter Review, Credit Agreement Mark-Up, Fee Letter Analysis, Financing Conditions Checklist) | Jun 7 – Jul 2, 2024 | 245.0 | $275,000.00 | 6.5%
5 | Regulatory / Antitrust (HSR Filing, Antitrust Risk Assessment, Early Termination) | Apr 10 – May 21, 2024 | 155.0 | $165,000.00 | 3.9%
6 | Interim Period / Between Signing and Closing (Covenant Compliance, Consent Requests, FDA Hold Impact Analysis, Notification Obligations, Pre-Closing Checklist) | Jun 11 – Sep 25, 2024 | 310.0 | $340,000.00 | 8.0%
7 | MAE Analysis & Termination Preparation (MAE Legal Analysis, Delaware Case Law Survey, Carveout Analysis, Disproportionate Impact, Deficiency Notice, Strategy Memo, Board Memo, Board Resolution, Termination Notice) | Aug 16 – Sep 30, 2024 | 580.0 | $985,000.00 | 23.2%
8 | Board Materials & Corporate Approvals (Board Resolutions, Board Presentations, Secretary's Certificate, Officer's Certificate, Stockholder Consent Process) | Jun 9 – Sep 27, 2024 | 71.5 | $106,500.00 | 2.5%
TOTAL | Feb 14 – Sep 30, 2024 | 3,776.5 | $4,250,000.00 | 100.0%
[sheet: Detail by Timekeeper and Phase]
Phase | Timekeeper | Hourly Rate | Hours | Fees
1. Engagement & Preliminary | Oliver Mackenzie | $1,850.00 | 30.0 | $55,500.00
1. Engagement & Preliminary | Harrison Wexford | $1,750.00 | 18.0 | $31,500.00
1. Engagement & Preliminary | Megan Chu | $985.00 | 52.0 | $51,220.00
1. Engagement & Preliminary | Derek Okonkwo | $795.00 | 75.0 | $59,625.00
1. Engagement & Preliminary | Leonard Cross | $1,650.00 | 10.0 | $16,500.00
Phase 1 Subtotal | 185.0 | $214,345.00
2. Due Diligence | Oliver Mackenzie | $1,850.00 | 85.0 | $157,250.00
2. Due Diligence | Harrison Wexford | $1,750.00 | 55.0 | $96,250.00
2. Due Diligence | Megan Chu | $985.00 | 340.0 | $334,900.00
2. Due Diligence | Derek Okonkwo | $795.00 | 440.0 | $349,800.00
2. Due Diligence | Leonard Cross | $1,650.00 | 130.0 | $214,500.00
Phase 2 Subtotal | 1,050.0 | $1,152,700.00
3. Transaction Documents | Oliver Mackenzie | $1,850.00 | 130.0 | $240,500.00
3. Transaction Documents | Harrison Wexford | $1,750.00 | 95.0 | $166,250.00
3. Transaction Documents | Megan Chu | $985.00 | 420.0 | $413,700.00
3. Transaction Documents | Derek Okonkwo | $795.00 | 490.0 | $389,550.00
3. Transaction Documents | Leonard Cross | $1,650.00 | 45.0 | $74,250.00
Phase 3 Subtotal | 1,180.0 | $1,284,250.00
4. Financing | Oliver Mackenzie | $1,850.00 | 52.0 | $96,200.00
4. Financing | Harrison Wexford | $1,750.00 | 38.0 | $66,500.00
4. Financing | Megan Chu | $985.00 | 105.0 | $103,425.00
4. Financing | Derek Okonkwo | $795.00 | 45.0 | $35,775.00
4. Financing | Leonard Cross | $1,650.00 | 5.0 | $8,250.00
Phase 4 Subtotal | 245.0 | $310,150.00
5. Regulatory / Antitrust | Oliver Mackenzie | $1,850.00 | 28.0 | $51,800.00
5. Regulatory / Antitrust | Harrison Wexford | $1,750.00 | 12.0 | $21,000.00
5. Regulatory / Antitrust | Megan Chu | $985.00 | 58.0 | $57,130.00
5. Regulatory / Antitrust | Derek Okonkwo | $795.00 | 55.0 | $43,725.00
5. Regulatory / Antitrust | Leonard Cross | $1,650.00 | 2.0 | $3,300.00
Phase 5 Subtotal | 155.0 | $176,955.00
6. Interim Period | Oliver Mackenzie | $1,850.00 | 50.0 | $92,500.00
6. Interim Period | Harrison Wexford | $1,750.00 | 25.0 | $43,750.00
6. Interim Period | Megan Chu | $985.00 | 110.0 | $108,350.00
6. Interim Period | Derek Okonkwo | $795.00 | 115.0 | $91,425.00
6. Interim Period | Leonard Cross | $1,650.00 | 10.0 | $16,500.00
Phase 6 Subtotal | 310.0 | $352,525.00
7. MAE Analysis & Termination | Oliver Mackenzie | $1,850.00 | 92.0 | $170,200.00
7. MAE Analysis & Termination | Harrison Wexford | $1,750.00 | 58.0 | $101,500.00
7. MAE Analysis & Termination | Megan Chu | $985.00 | 230.0 | $226,550.00
7. MAE Analysis & Termination | Derek Okonkwo | $795.00 | 175.0 | $139,125.00
7. MAE Analysis & Termination | Leonard Cross | $1,650.00 | 25.0 | $41,250.00
Phase 7 Subtotal | 580.0 | $678,625.00
8. Board Materials & Corporate Approvals | Oliver Mackenzie | $1,850.00 | 15.5 | $28,675.00
8. Board Materials & Corporate Approvals | Harrison Wexford | $1,750.00 | 9.0 | $15,750.00
8. Board Materials & Corporate Approvals | Megan Chu | $985.00 | 30.0 | $29,550.00
8. Board Materials & Corporate Approvals | Derek Okonkwo | $795.00 | 25.0 | $19,875.00
8. Board Materials & Corporate Approvals | Leonard Cross | $1,650.00 | -8.0 | $-13,200.00
Phase 8 Subtotal | 71.5 | $80,450.00
GRAND TOTAL | 3,776.5 | $4,250,000.00
[sheet: Billing Narrative]
Phase | Period | Key Activities and Work Product | Key Documents Produced | Key Timekeepers
1. Engagement & Preliminary | Feb 14 – Mar 15, 2024 | Engagement of Calderwood & Harkness by Penterra Pharmaceuticals Corp. (Matter No. 1018-00008); conflicts clearance covering Veridian Biosciences, Crestline Ventures, Boreal Health Partners Fund III, Apex Growth Equity Fund II, and Zalcourt Archer & Cole LLP; preparation and negotiation of mutual NDA with Veridian (executed March 4, 2024); drafting of non-binding indication of interest letter to Veridian/Ridgeway Partners LLC at indicative EV of $850–$950 million; preparation of preliminary due diligence request list sent to Zalcourt Archer & Cole LLP on March 6, 2024; internal deal team memorandum on transaction overview and key issues. | Engagement Letter (Feb 14); Conflicts Clearance Memo (Feb 13); NDA (Mar 4); Non-Binding IOI (Mar 1); DD Request List (Mar 6); Internal Deal Team Memo (Mar 15) | Mackenzie, Wexford, Chu, Okonkwo
2. Due Diligence | Mar 11 – Jun 3, 2024 | Comprehensive due diligence review of Veridian Biosciences following data room access (March 11, 2024); corporate organization and capitalization review (Series A–D, $420M total raised); IP analysis of VeriTCE platform and VRD-4187 patents; material contracts review including CRO agreements, manufacturing supply, license agreements, and investor rights agreements; regulatory and FDA compliance review including IND 154832 and Marlowe Asset Management-2 Phase II trial (NCT05837291, 42 sites, 387 enrolled patients); employment and benefits review (148 employees, key personnel agreements for Dr. Marek, Dr. Chandrasekaran, Kessler, Fontaine; 9.8% ESOP pool); environmental compliance review; tax due diligence by Leonard Cross including $312M federal NOL carryforward, §382 ownership change analysis (2020 Series C triggering ~$5.9M/yr annual limitation on ~$148M pre-change NOLs), state nexus in MA, CA, MD; litigation and contingent liabilities review; insurance program review; preparation of consolidated diligence summary memorandum to Penterra Board of Directors. Coordination with Broadleaf Scientific Consulting LLC (Dr. Raymond Kapoor) on clinical and scientific due diligence. | Corporate DD Memo (May 10); IP DD Memo (May 14); Material Contracts Memo (May 17); Regulatory/FDA DD Memo (May 20); Employment DD Memo (May 22); Environmental DD Memo (May 15); Tax DD Memo (May 28); Litigation DD Memo (May 18); Insurance DD Memo (May 16); Board DD Summary (Jun 3) | Mackenzie, Wexford, Chu, Okonkwo, Cross
3. Transaction Documents | Apr 15 – Jun 14, 2024 | Drafting and negotiation of Stock Purchase Agreement for $900,000,000 all-cash acquisition of 100% of Veridian capital stock; three rounds of mark-ups with Zalcourt Archer & Cole LLP (Rebecca Whitmore, Jonathan Pratt); negotiation of MAE definition (SPA § 1.1) including carveouts for pandemics, general economic conditions, industry conditions, changes in law, natural disasters, financial market changes, and announcement effects, each subject to disproportionate impact exception; no-shop provision (§ 5.4) with fiduciary out and four business day matching rights; indemnification mechanics including 20% cap ($180M), 1% tipping basket ($9M), 100% cap for fundamental reps, 18-month survival (general), statute of limitations +60 days (fundamental/tax); reverse termination fee of $45M (5% of deal value, financing failure trigger only); target termination fee of $36M (4%, no-shop breach); preparation and review of Sellers' Disclosure Schedules; drafting Escrow Agreement with Fidelis National Escrow Corp. ($180M indemnification escrow, $2.5M stockholder representative expense fund); Stockholder Representative Agreement appointing David Ng; forms of stockholder written consent and joinder; non-competition/non-solicitation agreements for Dr. Marek and Dr. Chandrasekaran (2-year terms); draft Transition Services Agreement; R&W insurance coordination with Prescott Whitfield Insurance Brokers (Amanda Chen-Kowalski) and Atlas Indemnity Insurance Co. (Policy No. AIC-RWI-2024-07892, $180M limit, $9M SIR, $3,960,000 premium, $75,000 underwriting fee, bound June 12, 2024); side letter re financing cooperation; draft funds flow memorandum ($500M term loan + $400M PPC cash = $900M; $180M to escrow, $2.5M to rep expense fund, $717.5M net to sellers); forms of closing certificates. | SPA Initial Draft (Apr 15); SPA Mark-Up #3 (May 20); SPA Execution Version (Jun 10); Disclosure Schedules (Jun 10); Escrow Agreement (Jun 10); Stockholder Rep Agreement (Jun 10); Stockholder Written Consent Form (Jun 10); Non-Compete Agreements (Jun 10); TSA Draft (Jun 5); R&W Binder/Summary (Jun 12); Side Letter (Jun 10); Funds Flow Draft (Jun 8); Closing Certificates (Jun 10) | Mackenzie, Wexford, Chu, Okonkwo, Cross
4. Financing | Jun 7 – Jul 2, 2024 | Review and analysis of commitment letter (Ref. CL-2024-PPCA-0607, dated June 7, 2024) from Summit Ridge Capital Partners, LP and Ironclad Trust Company, N.A. for $500,000,000 term loan at SOFR + 225 bps; analysis of commitment fee (0.35% = $1,750,000/yr), ticking fee (0.175%/yr commencing September 8, 2024, i.e., 90 days post-signing), market flex provisions, conditions to funding, and co-terminous expiration with SPA Outside Date (December 10, 2024); mark-up and comments on draft credit agreement; fee letter review; preparation of financing conditions checklist; revised funds flow memorandum incorporating final term loan wire instructions for Ironclad Trust Company. | Commitment Letter Analysis Memo (Jun 8); Credit Agreement Mark-Up (Jun 18); Revised Funds Flow (Jul 2); Fee Letter Review (Jun 9); Financing Conditions Checklist (Jun 20) | Mackenzie, Wexford, Chu
5. Regulatory / Antitrust | Apr 10 – May 21, 2024 | Coordination with Stonebridge HSW Antitrust Advisors LLP (Martin Prumvane) on HSR Act pre-merger notification; preparation of antitrust risk assessment concluding low risk given Veridian's clinical-stage status; drafting of HSR narrative and Item 4(c)/4(d) document compilation; transmittal letter to FTC/DOJ Premerger Notification Office with $280,500 filing fee submitted April 22, 2024; monitoring of HSR waiting period; confirmation of early termination granted May 20, 2024. | Antitrust Risk Assessment (Apr 10); HSR Draft Narrative (Apr 18); HSR Transmittal Letter (Apr 22); HSR Early Termination Memo (May 21) | Mackenzie, Chu, Okonkwo
6. Interim Period / Between Signing and Closing | Jun 11 – Sep 25, 2024 | Monitoring Veridian's compliance with interim operating covenants (SPA § 5.1) from signing through termination; analysis of Veridian's notification obligations under § 5.1(b) regarding Marlowe Asset Management-2 DMC interim analysis (DMC findings August 14, 2024; Penterra notified August 16, 2024); evaluation of whether Penterra's consent was required under § 5.1 for Veridian's implementation of Protocol v4.0 amendment (mandatory tocilizumab prophylaxis, dose reduction from 1.5 mg/kg to 0.75 mg/kg, implemented August 28, 2024); analysis of impact of FDA partial clinical hold on VRD-4187 (IND 154832, imposed August 22, 2024) on satisfaction of Buyer's closing conditions under §§ 7.2(a) and 7.2(b); maintenance of pre-closing conditions satisfaction checklist showing HSR clearance (satisfied), stockholder consent >90% (satisfied, June 14, 2024), no-MAE condition (not satisfied), representations bring-down (not satisfied). | Interim Covenant Tracker (Jun 11 – Sep 30); Consent Request re Protocol Amendment (Aug 30); FDA Hold Impact Memo (Aug 23); Notification Obligations Memo (Aug 18); Pre-Closing Conditions Checklist (last updated Sep 25) | Mackenzie, Chu, Okonkwo
7. MAE Analysis & Termination | Aug 16 – Sep 30, 2024 | Comprehensive material adverse effect legal analysis following Marlowe Asset Management-2 Phase II interim data readout (Grade ≥3 CRS: 23.4% treatment vs. 4.1% control; 7 treatment-related deaths (3.6%) vs. 1 control death (0.5%); ORR: 31.4% vs. 28.9%, p=0.58 not statistically significant); supplemental MAE analysis incorporating FDA partial clinical hold; survey of Delaware MAE case law including Akorn v. Fresenius line of cases and durational significance standard; analysis of MAE carveout applicability (pandemic, general industry, changes in law, natural disasters — concluding carveouts do not apply to company-specific clinical trial results); disproportionate impact exception analysis; drafting and delivery of Deficiency Notice to Veridian (September 6, 2024) alleging MAE and failure of closing conditions under §§ 7.2(a) and 7.2(b); follow-up correspondence with Zalcourt Archer & Cole; analysis of Veridian's September 13 response disputing MAE and demanding closing; privileged strategy memorandum to Thomas F. Holbrook analyzing termination options (proceed, renegotiate, or terminate), estimating sunk costs of $12,991,664, and assessing Veridian's likely claim that the $45M reverse termination fee applies; preparation of board memorandum recommending termination to Board Chair Margaret Liu Whitfield; drafting of board resolution authorizing termination (September 27, 2024); drafting and delivery of formal Termination Notice pursuant to SPA § 8.1(d) (September 30, 2024) to Veridian and David Ng as Stockholder Representative. | MAE Analysis Memo (Aug 25); Supplemental MAE/FDA Hold Memo (Sep 2); DE Case Law Survey (Aug 27); MAE Carveouts Analysis (Aug 28); Disproportionate Impact Analysis (Sep 3); Deficiency Notice (Sep 6); Email Follow-Up (Sep 9); Strategy Memo (Sep 15); Veridian Response Analysis (Sep 16); Board Termination Memo (Sep 24); Board Resolution — Termination (Sep 27); Termination Notice (Sep 30) | Mackenzie, Wexford, Chu, Okonkwo, Cross
8. Board Materials & Corporate Approvals | Jun 9 – Sep 27, 2024 | Preparation of Penterra Board presentation materials jointly with Garrison Zanthor & Co. (Kevin Driscoll) for June 9, 2024 board meeting; drafting board resolution authorizing SPA execution (June 10, 2024) by Dr. Anand Rajagopal and Thomas F. Holbrook; secretary's certificate certifying incumbency and authority; form of officer's closing certificate; analysis of Veridian stockholder written consent process under DGCL § 228 (holders of >90% delivered consents June 14, 2024, including Crestline Ventures 28.3%, Boreal Health Partners 19.7%, Apex Growth Equity 14.1%); board resolution authorizing termination (September 27, 2024). | Board Presentation (Jun 9); Board Resolution — SPA Execution (Jun 10); Secretary's Certificate (Jun 10); Officer's Certificate Form (Jun 10); Stockholder Consent Process Memo (Jun 11); Board Resolution — Termination (Sep 27) | Mackenzie, Wexford, Chu
[sheet: Monthly Fee Accrual]
Month | Mackenzie Hours | Mackenzie Fees | Wexford Hours | Wexford Fees | Chu Hours | Chu Fees | Okonkwo Hours | Okonkwo Fees | Cross Hours | Cross Fees | Total Hours | Total Fees
February 2024 (from 2/14) | 18.0 | $33,300.00 | 10.0 | $17,500.00 | 28.0 | $27,580.00 | 30.0 | $23,850.00 | 4.0 | $6,600.00 | 90.0 | $108,830.00
March 2024 | 42.0 | $77,700.00 | 22.0 | $38,500.00 | 95.0 | $93,575.00 | 110.0 | $87,450.00 | 8.0 | $13,200.00 | 277.0 | $310,425.00
April 2024 | 55.0 | $101,750.00 | 35.0 | $61,250.00 | 150.0 | $147,750.00 | 165.0 | $131,175.00 | 25.0 | $41,250.00 | 430.0 | $483,175.00
May 2024 | 70.0 | $129,500.00 | 48.0 | $84,000.00 | 210.0 | $206,850.00 | 230.0 | $182,850.00 | 65.0 | $107,250.00 | 623.0 | $710,450.00
June 2024 | 95.0 | $175,750.00 | 68.0 | $119,000.00 | 280.0 | $275,800.00 | 295.0 | $234,525.00 | 52.0 | $85,800.00 | 790.0 | $890,875.00
July 2024 | 30.0 | $55,500.00 | 18.0 | $31,500.00 | 85.0 | $83,725.00 | 95.0 | $75,525.00 | 15.0 | $24,750.00 | 243.0 | $271,000.00
August 2024 | 82.0 | $151,700.00 | 42.0 | $73,500.00 | 195.0 | $192,075.00 | 210.0 | $166,950.00 | 22.0 | $36,300.00 | 551.0 | $620,525.00
September 2024 | 90.5 | $167,425.00 | 67.0 | $117,250.00 | 302.0 | $297,470.00 | 285.0 | $226,575.00 | 28.0 | $46,000.00 | 772.5 | $854,720.00
TOTAL | 482.5 | $892,625.00 | 310.0 | $542,500.00 | 1,345.0 | $1,324,825.00 | 1,420.0 | $1,128,900.00 | 219.0 | $361,150.00 | 3,776.5 | $4,250,000.00

[sheet: Summary]

Record

Parties

Dates

Amounts