[sheet: Cover Summary]

Field	Detail
Document Title	Final Billing Summary & Expense Reconciliation Memorandum
Date	January 10, 2024
Prepared By	Howard Bellamy, Billing Partner
Reviewed By	Elaine Forsythe, Responsible Partner
Firm	Calderwood & Harkness LLP
Firm Address (Miami Office)	333 SE 2nd Avenue, Suite 4400, Miami, FL 33131
Client	Verimark Hospitality Group Inc.
Client Address	1900 Brickell Avenue, Suite 3200, Miami, FL 33129
Client Contact	Nathaniel Driscoll, General Counsel
Engagement Number	1021-00003
Matter Description	Insurance Coverage Dispute — Business Interruption — Hurricane Callista
Case Caption	Verimark Hospitality Group Inc. v. Ironclad Indemnity Corp. et al.
Court / Case No.	Eleventh Judicial Circuit, Miami-Dade County — Case No. 2022-CA-031547
Presiding Judge	Hon. Catherine Embry
Governing Law	Florida
Matter Opened	August 30, 2022
Matter Closed	January 12, 2024
Engagement Duration (Months)	~17 months
Total Claim Amount	$60,000,000
Settlement Recovery	$47,300,000
Recovery as % of Claim	78.83%
Total Hours Billed	3,420
Total Hourly Fees	$2,684,700
Contingency Enhancement	$865,000

Total Fees (Hourly + Enhancement)	$3,549,700
Total Expenses Advanced	$412,000
Total Charges (Fees + Expenses)	$3,961,700
Status	Closed — Completed

[sheet: Fee Arrangement]

Timekeeper	Role	Practice Group	Standard Hourly Rate	Blended Rate Applied	Notes
Elaine Forsythe	Responsible Partner	Antitrust & Competition (cross-staffed to Insurance Recovery)	$1,150	$785 (blended)
Howard Bellamy	Billing Partner	Antitrust & Competition	$1,100	$785 (blended)
Tiffany Rosenthal	Lead Associate	Mergers & Acquisitions (seconded)	$625	$785 (blended)
Andrew Fitzpatrick	Working Associate	Mergers & Acquisitions (seconded)	$475	$785 (blended)
BLENDED HOURLY RATE	$785	Per engagement letter dated Aug 30, 2022
CONTINGENCY ENHANCEMENT	5% of net recovery above $30,000,000
Gross Settlement Recovery	$47,300,000
Threshold for Enhancement	$30,000,000
Net Recovery Above Threshold	$17,300,000	$47,300,000 − $30,000,000
Enhancement Rate	5%
Contingency Enhancement Amount	$865,000	$17,300,000 × 5%
Fee Arrangement Source	Engagement Letter (Aug 30, 2022); Revised Fee & Staffing Memo (Jan 10, 2023)

[sheet: Hours by Timekeeper]

Timekeeper	Role	Hourly Rate	Pre-Litigation Coverage Analysis	Pre-Suit Correspondence & Demand	Complaint & Pleadings	Fact discovery — Propounded	Fact discovery — Responses	Depositions — Preparation & Attendance	Expert Engagement & Work Product	Motions Practice	Mediation & Settlement	Post-Settlement / Closing	Total Hours	Total Fees at Standard Rate
Elaine Forsythe	Responsible Partner	$1,150	45	30	60	35	20	85	40	55	80	15	465	$534,750
Howard Bellamy	Billing Partner	$1,100	20	10	15	5	5	10	5	10	25	20	125	$137,500
Tiffany Rosenthal	Lead Associate	$625	120	65	180	150	110	240	160	140	165	40	1,370	$856,250
Andrew Fitzpatrick	Working Associate	$475	95	50	140	190	120	180	190	120	95	30	1,210	$574,750
Paralegals / Support Staff	Support	Various	15	10	30	40	25	40	25	20	30	15	250	$—
TOTALS	295	165	425	420	280	555	420	345	395	120	3,420	$2,684,700

[sheet: Monthly Billing Detail]

Billing Month	Forsythe Hours	Bellamy Hours	Rosenthal Hours	Fitzpatrick Hours	Support Hours	Total Hours	Fees Billed at Blended Rate	Cumulative Hours	Cumulative Fees	Key Activity
Sep 2022	25	10	55	40	10	140	$109,900	140	$109,900	Engagement opened; preliminary coverage analysis; Hurricane Callista landfall Sep 18; notice of loss Sep 22
Oct 2022	30	5	65	55	8	163	$127,955	303	$237,855	Policy review; Arbor Claims inspection Oct 5; reservation of rights response Oct 25; windstorm sub-limit analysis
Nov 2022	35	5	70	60	10	180	$141,300	483	$379,155	Sworn proof of loss $60M filed Nov 15; demand letters to all four insurers; flood exclusion memo
Dec 2022	20	5	55	50	8	138	$108,330	621	$487,485	Period of restoration memo; anti-concurrent causation research
Jan 2023	25	5	60	55	10	155	$121,675	776	$609,160	Strategic assessment memo; revised fee memo; coverage position letter to client
Feb 2023	30	5	65	55	10	165	$129,525	941	$738,685	Ironclad formal denial Feb 3; Pinnacle follows Feb 10; bad-faith notice letter Feb 15
Mar 2023	35	10	80	70	15	210	$164,850	1,151	$903,535	Complaint filed Mar 1; Grand Key Resort reopens Mar 15
Apr 2023	25	5	70	60	12	172	$135,020	1,323	$1,038,555	Opposition to motion to dismiss; case management statement; expert retention letters
May 2023	20	5	65	65	10	165	$129,525	1,488	$1,168,080	Discovery planning; memos to Dr. Vasquez and Jeffrey Caldwell on scope
Jun 2023	25	5	80	90	15	215	$168,775	1,703	$1,336,855	Discovery propounded to all defendants Jun 5–10; subpoena to Tidewater Jun 20
Jul 2023	40	5	95	80	15	235	$184,475	1,938	$1,521,330	Responses to Ironclad discovery Jul 5; Haddon depo Jul 10; Whitford depo Jul 24; 2nd RFP to Ironclad Jul 15
Aug 2023	45	5	110	100	20	280	$219,800	2,218	$1,741,130	Depo prep & attendance: Ellsworth Aug 7, Calder Aug 8, Pellegrini Aug 14, Orde Aug 28; privilege log Aug 1
Sep 2023	35	5	95	85	15	235	$184,475	2,453	$1,925,605	Expert report review (Vasquez Sep 8, Caldwell Sep 10); reports served Sep 15; post-depo summary memo Sep 5; supplemental interrogatory responses Sep 20
Oct 2023	30	10	80	75	12	207	$162,495	2,660	$2,088,100	Rebuttal reports Oct 2; Dr. Vasquez depo prep & depo Oct 12–16; Dr. Birk depo Oct 23
Nov 2023	40	15	100	85	18	258	$202,530	2,918	$2,290,630	PSJ motion filed Nov 1; declarations (Pellegrini, Orde, Vasquez); opposition to cross-motion Nov 29; settlement authority memo Nov 22; mediation position statement Nov 28
Dec 2023	50	20	105	80	20	275	$215,875	3,193	$2,506,505	Mediation Dec 4–5; settlement reached Dec 5; term sheet executed; settlement agreement executed Dec 19; wire instruction letters Dec 20
Jan 2024	10	15	40	30	12	107	$83,995	3,300	$2,590,500	Settlement funds received Jan 3; disbursement letter Jan 4; stipulation of dismissal filed Jan 5; matter closing memo Jan 12; post-mortem letter Jan 12
Rounding / Misc. Adjustments	120	$94,200	3,420	$2,684,700	Includes miscellaneous administrative time and billing adjustments across engagement
TOTALS	520	135	1,290	1,135	220	3,420	$2,684,700	3,420	$2,684,700

[sheet: Expense Detail]

Expense Category	Vendor / Payee	Description	Date Incurred	Amount
Expert Fees — Damages	Meridian Forensic Economics LLC (Dr. Helen Vasquez)	Forensic accounting / BI loss quantification — Dr. Vasquez at $625/hr	Apr 2023 – Oct 2023	$148,750
Expert Fees — Damages (Analyst Support)	Meridian Forensic Economics LLC	Supporting analysts at $375/hr	May 2023 – Sep 2023	$41,250
Expert Fees — Engineering	Caldwell Engineering Associates Inc. (Jeffrey Caldwell, PE)	Forensic engineering / cause-of-loss analysis — property inspections and report	Apr 2023 – Sep 2023	$67,500
Court Filing Fees	Clerk, Eleventh Judicial Circuit, Miami-Dade County	Complaint filing fee, motion filing fees, subpoena fees	Mar 2023 – Nov 2023	$4,800
Service of Process	Various process servers	Service on Ironclad, Pinnacle, Montclair, Sovereign Re; subpoena service on Tidewater	Mar 2023 – Jun 2023	$2,200
Deposition Transcripts — Fact Witnesses	Various court reporters	Transcripts: V. Haddon, D. Whitford, M. Ellsworth, D. Calder, S. Pellegrini, F. Orde	Jul 2023 – Aug 2023	$38,400
Deposition Transcripts — Expert Witnesses	Various court reporters	Transcripts: Dr. H. Vasquez, Dr. W. Birk	Oct 2023	$12,600
Videography — Depositions	Various videographers	Video recording of key depositions (Haddon, Whitford, Ellsworth, Calder)	Jul 2023 – Aug 2023	$14,500
Mediation Fees	Keystone Dispute Resolution Inc. (Hon. Richard Mendelson, Ret.)	Two-day mediation at $15,000/day — December 4–5, 2023	Dec 2023	$30,000
Travel — Depositions	Calderwood & Harkness team	Travel for depositions in Hartford, CT (Haddon); Tampa, FL (Whitford); Miami, FL (remaining)	Jul 2023 – Aug 2023	$18,200
Travel — Mediation	Calderwood & Harkness team	Travel and lodging for mediation in Miami	Dec 2023	$4,800
Document Review / E-discovery Platform	E-discovery vendor	Hosting, processing, and review platform for document production	Jun 2023 – Nov 2023	$15,500
Copying / Printing / Binding	Various	Exhibits, court filings, mediation binders	Mar 2023 – Dec 2023	$5,200
Research Services	Online legal research databases	Legal research charges (Westmark Data Systems, Sundial Solutions)	Sep 2022 – Jan 2024	$6,300
Miscellaneous	Various	Severin Partners LLC, courier, long-distance, misc. administrative	Sep 2022 – Jan 2024	$2,000
TOTAL EXPENSES ADVANCED	$412,000

[sheet: Settlement Allocation]

Carrier	Policy Number	Layer	Policy Limit	Attachment Point	Annual Premium	Settlement Amount	Recovery % of Layer Limit	Payment Due Date	Notes
Ironclad Indemnity Corporation	IIC-PRP-2022-07541	Primary	$25,000,000	$500,000 deductible	$980,000	$24,500,000	98.00%	February 2, 2024	Full primary layer less $500K deductible
Pinnacle Surplus Lines Inc.	PSL-XS1-2022-3390	1st Excess ($15M xs $25M)	$15,000,000	$25,000,000	$410,000	$12,200,000	81.33%	February 2, 2024	Follow-form with Ironclad
Montclair Assurance Company	MAC-XS2-2022-09817	2nd Excess ($10M xs $40M)	$10,000,000	$40,000,000	$265,000	$6,800,000	68.00%	February 2, 2024	Represented by Delvecchio & Kraus LLP
Sovereign Re Ltd.	SRL-XS3-2022-5102	3rd Excess ($10M xs $50M)	$10,000,000	$50,000,000	$185,000	$3,800,000	38.00%	February 2, 2024	Bermuda-domiciled; represented by Delvecchio & Kraus LLP
TOTAL TOWER	$60,000,000	$1,840,000	$47,300,000	78.83%	Settlement agreement executed December 19, 2023

[sheet: Cover Summary]
Field | Detail
Document Title | Final Billing Summary & Expense Reconciliation Memorandum
Date | January 10, 2024
Prepared By | Howard Bellamy, Billing Partner
Reviewed By | Elaine Forsythe, Responsible Partner
Firm | Calderwood & Harkness LLP
Firm Address (Miami Office) | 333 SE 2nd Avenue, Suite 4400, Miami, FL 33131
Client | Verimark Hospitality Group Inc.
Client Address | 1900 Brickell Avenue, Suite 3200, Miami, FL 33129
Client Contact | Nathaniel Driscoll, General Counsel
Engagement Number | 1021-00003
Matter Description | Insurance Coverage Dispute — Business Interruption — Hurricane Callista
Case Caption | Verimark Hospitality Group Inc. v. Ironclad Indemnity Corp. et al.
Court / Case No. | Eleventh Judicial Circuit, Miami-Dade County — Case No. 2022-CA-031547
Presiding Judge | Hon. Catherine Embry
Governing Law | Florida
Matter Opened | August 30, 2022
Matter Closed | January 12, 2024
Engagement Duration (Months) | ~17 months
Total Claim Amount | $60,000,000
Settlement Recovery | $47,300,000
Recovery as % of Claim | 78.83%
Total Hours Billed | 3,420
Total Hourly Fees | $2,684,700
Contingency Enhancement | $865,000
Total Fees (Hourly + Enhancement) | $3,549,700
Total Expenses Advanced | $412,000
Total Charges (Fees + Expenses) | $3,961,700
Status | Closed — Completed
[sheet: Fee Arrangement]
Timekeeper | Role | Practice Group | Standard Hourly Rate | Blended Rate Applied | Notes
Elaine Forsythe | Responsible Partner | Antitrust & Competition (cross-staffed to Insurance Recovery) | $1,150 | $785 (blended)
Howard Bellamy | Billing Partner | Antitrust & Competition | $1,100 | $785 (blended)
Tiffany Rosenthal | Lead Associate | Mergers & Acquisitions (seconded) | $625 | $785 (blended)
Andrew Fitzpatrick | Working Associate | Mergers & Acquisitions (seconded) | $475 | $785 (blended)
BLENDED HOURLY RATE | $785 | Per engagement letter dated Aug 30, 2022
CONTINGENCY ENHANCEMENT | 5% of net recovery above $30,000,000
Gross Settlement Recovery | $47,300,000
Threshold for Enhancement | $30,000,000
Net Recovery Above Threshold | $17,300,000 | $47,300,000 − $30,000,000
Enhancement Rate | 5%
Contingency Enhancement Amount | $865,000 | $17,300,000 × 5%
Fee Arrangement Source | Engagement Letter (Aug 30, 2022); Revised Fee & Staffing Memo (Jan 10, 2023)
[sheet: Hours by Timekeeper]
Timekeeper | Role | Hourly Rate | Pre-Litigation Coverage Analysis | Pre-Suit Correspondence & Demand | Complaint & Pleadings | Fact discovery — Propounded | Fact discovery — Responses | Depositions — Preparation & Attendance | Expert Engagement & Work Product | Motions Practice | Mediation & Settlement | Post-Settlement / Closing | Total Hours | Total Fees at Standard Rate
Elaine Forsythe | Responsible Partner | $1,150 | 45 | 30 | 60 | 35 | 20 | 85 | 40 | 55 | 80 | 15 | 465 | $534,750
Howard Bellamy | Billing Partner | $1,100 | 20 | 10 | 15 | 5 | 5 | 10 | 5 | 10 | 25 | 20 | 125 | $137,500
Tiffany Rosenthal | Lead Associate | $625 | 120 | 65 | 180 | 150 | 110 | 240 | 160 | 140 | 165 | 40 | 1,370 | $856,250
Andrew Fitzpatrick | Working Associate | $475 | 95 | 50 | 140 | 190 | 120 | 180 | 190 | 120 | 95 | 30 | 1,210 | $574,750
Paralegals / Support Staff | Support | Various | 15 | 10 | 30 | 40 | 25 | 40 | 25 | 20 | 30 | 15 | 250 | $—
TOTALS | 295 | 165 | 425 | 420 | 280 | 555 | 420 | 345 | 395 | 120 | 3,420 | $2,684,700
[sheet: Monthly Billing Detail]
Billing Month | Forsythe Hours | Bellamy Hours | Rosenthal Hours | Fitzpatrick Hours | Support Hours | Total Hours | Fees Billed at Blended Rate | Cumulative Hours | Cumulative Fees | Key Activity
Sep 2022 | 25 | 10 | 55 | 40 | 10 | 140 | $109,900 | 140 | $109,900 | Engagement opened; preliminary coverage analysis; Hurricane Callista landfall Sep 18; notice of loss Sep 22
Oct 2022 | 30 | 5 | 65 | 55 | 8 | 163 | $127,955 | 303 | $237,855 | Policy review; Arbor Claims inspection Oct 5; reservation of rights response Oct 25; windstorm sub-limit analysis
Nov 2022 | 35 | 5 | 70 | 60 | 10 | 180 | $141,300 | 483 | $379,155 | Sworn proof of loss $60M filed Nov 15; demand letters to all four insurers; flood exclusion memo
Dec 2022 | 20 | 5 | 55 | 50 | 8 | 138 | $108,330 | 621 | $487,485 | Period of restoration memo; anti-concurrent causation research
Jan 2023 | 25 | 5 | 60 | 55 | 10 | 155 | $121,675 | 776 | $609,160 | Strategic assessment memo; revised fee memo; coverage position letter to client
Feb 2023 | 30 | 5 | 65 | 55 | 10 | 165 | $129,525 | 941 | $738,685 | Ironclad formal denial Feb 3; Pinnacle follows Feb 10; bad-faith notice letter Feb 15
Mar 2023 | 35 | 10 | 80 | 70 | 15 | 210 | $164,850 | 1,151 | $903,535 | Complaint filed Mar 1; Grand Key Resort reopens Mar 15
Apr 2023 | 25 | 5 | 70 | 60 | 12 | 172 | $135,020 | 1,323 | $1,038,555 | Opposition to motion to dismiss; case management statement; expert retention letters
May 2023 | 20 | 5 | 65 | 65 | 10 | 165 | $129,525 | 1,488 | $1,168,080 | Discovery planning; memos to Dr. Vasquez and Jeffrey Caldwell on scope
Jun 2023 | 25 | 5 | 80 | 90 | 15 | 215 | $168,775 | 1,703 | $1,336,855 | Discovery propounded to all defendants Jun 5–10; subpoena to Tidewater Jun 20
Jul 2023 | 40 | 5 | 95 | 80 | 15 | 235 | $184,475 | 1,938 | $1,521,330 | Responses to Ironclad discovery Jul 5; Haddon depo Jul 10; Whitford depo Jul 24; 2nd RFP to Ironclad Jul 15
Aug 2023 | 45 | 5 | 110 | 100 | 20 | 280 | $219,800 | 2,218 | $1,741,130 | Depo prep & attendance: Ellsworth Aug 7, Calder Aug 8, Pellegrini Aug 14, Orde Aug 28; privilege log Aug 1
Sep 2023 | 35 | 5 | 95 | 85 | 15 | 235 | $184,475 | 2,453 | $1,925,605 | Expert report review (Vasquez Sep 8, Caldwell Sep 10); reports served Sep 15; post-depo summary memo Sep 5; supplemental interrogatory responses Sep 20
Oct 2023 | 30 | 10 | 80 | 75 | 12 | 207 | $162,495 | 2,660 | $2,088,100 | Rebuttal reports Oct 2; Dr. Vasquez depo prep & depo Oct 12–16; Dr. Birk depo Oct 23
Nov 2023 | 40 | 15 | 100 | 85 | 18 | 258 | $202,530 | 2,918 | $2,290,630 | PSJ motion filed Nov 1; declarations (Pellegrini, Orde, Vasquez); opposition to cross-motion Nov 29; settlement authority memo Nov 22; mediation position statement Nov 28
Dec 2023 | 50 | 20 | 105 | 80 | 20 | 275 | $215,875 | 3,193 | $2,506,505 | Mediation Dec 4–5; settlement reached Dec 5; term sheet executed; settlement agreement executed Dec 19; wire instruction letters Dec 20
Jan 2024 | 10 | 15 | 40 | 30 | 12 | 107 | $83,995 | 3,300 | $2,590,500 | Settlement funds received Jan 3; disbursement letter Jan 4; stipulation of dismissal filed Jan 5; matter closing memo Jan 12; post-mortem letter Jan 12
Rounding / Misc. Adjustments | 120 | $94,200 | 3,420 | $2,684,700 | Includes miscellaneous administrative time and billing adjustments across engagement
TOTALS | 520 | 135 | 1,290 | 1,135 | 220 | 3,420 | $2,684,700 | 3,420 | $2,684,700
[sheet: Expense Detail]
Expense Category | Vendor / Payee | Description | Date Incurred | Amount
Expert Fees — Damages | Meridian Forensic Economics LLC (Dr. Helen Vasquez) | Forensic accounting / BI loss quantification — Dr. Vasquez at $625/hr | Apr 2023 – Oct 2023 | $148,750
Expert Fees — Damages (Analyst Support) | Meridian Forensic Economics LLC | Supporting analysts at $375/hr | May 2023 – Sep 2023 | $41,250
Expert Fees — Engineering | Caldwell Engineering Associates Inc. (Jeffrey Caldwell, PE) | Forensic engineering / cause-of-loss analysis — property inspections and report | Apr 2023 – Sep 2023 | $67,500
Court Filing Fees | Clerk, Eleventh Judicial Circuit, Miami-Dade County | Complaint filing fee, motion filing fees, subpoena fees | Mar 2023 – Nov 2023 | $4,800
Service of Process | Various process servers | Service on Ironclad, Pinnacle, Montclair, Sovereign Re; subpoena service on Tidewater | Mar 2023 – Jun 2023 | $2,200
Deposition Transcripts — Fact Witnesses | Various court reporters | Transcripts: V. Haddon, D. Whitford, M. Ellsworth, D. Calder, S. Pellegrini, F. Orde | Jul 2023 – Aug 2023 | $38,400
Deposition Transcripts — Expert Witnesses | Various court reporters | Transcripts: Dr. H. Vasquez, Dr. W. Birk | Oct 2023 | $12,600
Videography — Depositions | Various videographers | Video recording of key depositions (Haddon, Whitford, Ellsworth, Calder) | Jul 2023 – Aug 2023 | $14,500
Mediation Fees | Keystone Dispute Resolution Inc. (Hon. Richard Mendelson, Ret.) | Two-day mediation at $15,000/day — December 4–5, 2023 | Dec 2023 | $30,000
Travel — Depositions | Calderwood & Harkness team | Travel for depositions in Hartford, CT (Haddon); Tampa, FL (Whitford); Miami, FL (remaining) | Jul 2023 – Aug 2023 | $18,200
Travel — Mediation | Calderwood & Harkness team | Travel and lodging for mediation in Miami | Dec 2023 | $4,800
Document Review / E-discovery Platform | E-discovery vendor | Hosting, processing, and review platform for document production | Jun 2023 – Nov 2023 | $15,500
Copying / Printing / Binding | Various | Exhibits, court filings, mediation binders | Mar 2023 – Dec 2023 | $5,200
Research Services | Online legal research databases | Legal research charges (Westmark Data Systems, Sundial Solutions) | Sep 2022 – Jan 2024 | $6,300
Miscellaneous | Various | Severin Partners LLC, courier, long-distance, misc. administrative | Sep 2022 – Jan 2024 | $2,000
TOTAL EXPENSES ADVANCED | $412,000
[sheet: Settlement Allocation]
Carrier | Policy Number | Layer | Policy Limit | Attachment Point | Annual Premium | Settlement Amount | Recovery % of Layer Limit | Payment Due Date | Notes
Ironclad Indemnity Corporation | IIC-PRP-2022-07541 | Primary | $25,000,000 | $500,000 deductible | $980,000 | $24,500,000 | 98.00% | February 2, 2024 | Full primary layer less $500K deductible
Pinnacle Surplus Lines Inc. | PSL-XS1-2022-3390 | 1st Excess ($15M xs $25M) | $15,000,000 | $25,000,000 | $410,000 | $12,200,000 | 81.33% | February 2, 2024 | Follow-form with Ironclad
Montclair Assurance Company | MAC-XS2-2022-09817 | 2nd Excess ($10M xs $40M) | $10,000,000 | $40,000,000 | $265,000 | $6,800,000 | 68.00% | February 2, 2024 | Represented by Delvecchio & Kraus LLP
Sovereign Re Ltd. | SRL-XS3-2022-5102 | 3rd Excess ($10M xs $50M) | $10,000,000 | $50,000,000 | $185,000 | $3,800,000 | 38.00% | February 2, 2024 | Bermuda-domiciled; represented by Delvecchio & Kraus LLP
TOTAL TOWER | $60,000,000 | $1,840,000 | $47,300,000 | 78.83% | Settlement agreement executed December 19, 2023

[sheet: Cover Summary]

Record

Parties

Dates

Amounts