FR EA
1022-00004 · Northgate Telecommunications PLC · Billing
invoice-august-2024.xlsx DOCUMENT Labor & Employment
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[sheet: Invoice]

FieldValue
Invoice Number1022-00004-003
Invoice DateSeptember 5, 2024
Billing PeriodAugust 1, 2024 — August 31, 2024
Matter Number1022-00004
Matter DescriptionNorthgate Telecommunications PLC — CEO Employment Agreement Negotiation (Marcus Elliot Harding)
ClientNorthgate Telecommunications PLC
Client Address600 Lexington Avenue, 38th Floor, New York, NY 10022
AttentionElaine Whitford, SVP & Group General Counsel
Billing AttorneyBernard Crawford
Responsible AttorneyRenata Vasquez
FirmCalderwood & Harkness LLP
Firm Address299 Park Avenue, 42nd Floor, New York, NY 10171
Payment TermsNet 30 days
Governing LawNew York

[sheet: Time Entries]

DateTimekeeperTitleRateHoursAmountDescription
08/01/2024James UnderwoodAssociate8954.54027.5Review and detailed analysis of Hargrove & Liddell redline of Draft 1 of Executive Employment Agreement (88 comments); begin categorization of comments by materiality level; focus on Section 7 (Change in Control) and Section 9 (Restrictive Covenants)
08/02/2024Devon ArcherAssociate7253.52537.5Assist with analysis of H&L redline of Draft 1; prepare comparison chart of NTP positions vs. Harding counter-positions on change in control severance multiplier (2.5x vs. 3x), tax gross-up, and Board turnover trigger
08/02/2024James UnderwoodAssociate89554475Continue analysis of H&L redline of Draft 1; draft issue-by-issue response recommendation memorandum; analyze financial impact of Harding's CIC demands (CIC cash gap of $2,406,250; estimated gross-up exposure $4.2M-$6.8M)
08/03/2024Devon ArcherAssociate72532175Research non-compete enforceability developments under New York law; analyze H&L position on restrictive covenant duration (12 months vs. NTP's 24 months) and geographic scope (North America + Western Europe vs. worldwide); review scheduled-competitor approach proposed by Harding
08/05/2024Renata VasquezPartner16502.54125Review and revise draft memorandum analyzing H&L redline of Draft 1; conference with J. Underwood regarding recommended responses on CIC multiplier, 280G tax treatment (best-net vs. full gross-up), Board turnover trigger, and restrictive covenant scope and duration
08/05/2024James UnderwoodAssociate89543580Revise and finalize memorandum: Analysis of H&L Redline of Draft 1 — Issue-by-Issue Response Recommendation; categorize 88 comments as (a) acceptable/non-material, (b) negotiable, or (c) Board-level decisions required
08/06/2024Devon ArcherAssociate7252.51812.5Prepare summary table of all 88 H&L comments on Draft 1 with recommended dispositions; update Section 280G analysis to reflect Harding's demanded 3x CIC multiplier (estimated total parachute payments ~$38,200,000; excess parachute payment $30,360,000; estimated excise tax $6,072,000)
08/07/2024Renata VasquezPartner16501.52475Finalize memorandum analyzing H&L redline of Draft 1; prepare and send email to Elaine Whitford summarizing key issues from H&L redline, highlighting CIC multiplier gap ($2,406,250), estimated gross-up exposure ($4.2M-$6.8M), and non-compete duration gap (24 vs. 12 months); recommend principals meeting if Board direction does not change
08/08/2024Renata VasquezPartner165011650Telephone conference with Elaine Whitford regarding Board direction on CIC and non-compete boundaries; discuss Remuneration Committee position and Geoffrey Stanton's views on ISS/shareholder concerns
08/09/2024Renata VasquezPartner165023300Review and analyze Whitford email conveying Board direction: maximum CIC multiplier 2.5x, no tax gross-up, no Board turnover trigger; non-compete reducible to 18 months with North America + Western Europe scope as final concession; conference with Underwood and Archer to begin Draft 2 preparation
08/09/2024James UnderwoodAssociate89565370Begin preparation of Draft 2 of Executive Employment Agreement; revise Section 7 (Change in Control) to maintain 2.5x multiplier with best-net cutback, reject Board turnover trigger; revise Section 9 (Restrictive Covenants) to reduce non-compete from 24 to 18 months, limit geographic scope to North America and Western Europe, narrow activity definition
08/10/2024James UnderwoodAssociate89576265Continue drafting Draft 2; accept certain non-material H&L comments from redline; enhance garden leave provision (6 months at base salary); revise non-solicitation provisions; update indemnification and D&O insurance provisions (Ashdown Surety & Insurance Co. policy, $50M per occurrence / $100M aggregate)
08/10/2024Devon ArcherAssociate72553625Assist with Draft 2 preparation; revise equity compensation provisions (sign-on RSU $12,000,000, sign-on PSU $6,400,000, annual LTI $9,000,000); update 409A compliance language; prepare blackline comparison of Draft 1 vs. Draft 2
08/11/2024James UnderwoodAssociate8955.54922.5Finalize Draft 2 of Executive Employment Agreement; review all sections for internal consistency; update defined terms; finalize blackline (Draft 1 vs. Draft 2); prepare cover summary of Northgate's positions on remaining open items for transmittal to Hargrove & Liddell
08/11/2024Devon ArcherAssociate72532175Finalize blackline comparison Draft 1 vs. Draft 2; proofread Draft 2; prepare transmittal package
08/12/2024Renata VasquezPartner16502.54125Final review and approval of Draft 2, blackline, and cover summary; prepare and send transmittal email to Victoria Hargrove (Hargrove & Liddell LLP) with explanation of Northgate's rationale for positions on change in control severance and restrictive covenant provisions
08/12/2024Bernard CrawfordPartner157511575Review Draft 2 of Executive Employment Agreement; conference with R. Vasquez regarding engagement status and negotiation trajectory
08/13/2024Bernard CrawfordPartner15750.5787.5Review cover summary transmitted to H&L with Draft 2; discuss budget and timeline with R. Vasquez
08/15/2024James UnderwoodAssociate8951.51342.5Research UK Corporate Governance Code 2024 Provision 40 implications for CIC severance multiples; coordinate with Simon Aldridge (Moorfield Bates LLP) regarding UK service agreement considerations
08/19/2024Devon ArcherAssociate7253.52537.5Review H&L redline of Draft 2 received August 19 (42 remaining comments); prepare initial comment log; identify that CIC and non-compete sections remain unresolved — Harding continues to demand 3x multiplier, full gross-up, Board turnover trigger, and 12-month non-compete with scheduled competitors
08/19/2024James UnderwoodAssociate8954.54027.5Detailed review and analysis of H&L redline of Draft 2 (42 comments); compare against H&L redline of Draft 1 to track movement; confirm two core impasses remain: (1) change in control terms and (2) restrictive covenant terms
08/20/2024James UnderwoodAssociate89543580Draft memorandum analyzing H&L redline of Draft 2 — remaining open issues; summarize non-material open points that could be quickly resolved if principal issues are bridged; quantify remaining negotiation gaps
08/21/2024Renata VasquezPartner165023300Review and finalize memorandum analyzing H&L redline of Draft 2; conference with J. Underwood on strategy; assess likelihood of reaching agreement
08/22/2024Renata VasquezPartner16501.52475Prepare and send status report email to Elaine Whitford: two critical open issues remain (CIC and non-compete); recommend in-person principals meeting to attempt resolution; discuss format and attendee list
08/22/2024Bernard CrawfordPartner157511575Review status of negotiations; conference with R. Vasquez regarding principals meeting logistics and Board engagement
08/23/2024Renata VasquezPartner165046600Draft privileged memorandum preparing for August 26 principals meeting: talking points on each open issue (CIC multiplier 2.5x vs. 3x, gap $2,406,250; gross-up vs. best-net, exposure $4.2M-$6.8M; Board turnover trigger; non-compete 18 vs. 12 months; garden leave compensation); recommended concessions; absolute red lines (no gross-up, no Board turnover trigger); circulate to Whitford and Geoffrey Stanton
08/23/2024James UnderwoodAssociate8953.53132.5Prepare agenda for August 26 in-person principals meeting at 600 Lexington Avenue; assist R. Vasquez with principals meeting preparation memorandum; compile supporting data including Whitmore Hobson LLP compensation benchmarking analysis and Veltrano Proxy Advisors governance assessment
08/24/2024Devon ArcherAssociate7252.51812.5Prepare meeting materials for August 26 principals meeting; organize comparison charts of NTP proposals vs. Harding demands across all open terms; update Section 280G summary for meeting reference
08/25/2024Renata VasquezPartner16501.52475Review and finalize principals meeting materials; telephone conference with Elaine Whitford and Geoffrey Stanton to preview meeting strategy; discuss fallback positions
08/26/2024Renata VasquezPartner165058250Attend in-person principals meeting at 600 Lexington Avenue, New York (Dame Philippa Thornton-Hale, Geoffrey Stanton, Elaine Whitford, Renata Vasquez for Northgate; Marcus Elliot Harding and Victoria Hargrove for Harding); discussion of CIC severance, restrictive covenants, and transition timeline; Harding stated 3x CIC multiplier and full gross-up are non-negotiable; impasse acknowledged; parties agreed to explore one final compromise proposal
08/26/2024James UnderwoodAssociate89554475Attend in-person principals meeting at 600 Lexington Avenue; prepare detailed meeting notes; record positions taken by each side on all open issues
08/26/2024Bernard CrawfordPartner15751.52362.5Pre-meeting conference with R. Vasquez; review meeting preparations; available for post-meeting consultation
08/27/2024Renata VasquezPartner16502.54125Post-meeting debrief; prepare and send email to Elaine Whitford providing candid assessment: likelihood of reaching agreement assessed as low; recommend Board authorize final best-and-final proposal and prepare contingency planning for alternative candidates
08/27/2024James UnderwoodAssociate89532685Finalize detailed meeting notes from August 26 principals meeting; circulate to R. Vasquez for review
08/28/2024James UnderwoodAssociate89543580Draft memorandum summarizing remaining gaps post-principals meeting: CIC multiplier gap ($2,406,250), gross-up exposure ($4.2M-$6.8M), Board turnover trigger (binary disagreement), non-compete duration (18 vs. 12 months), non-compete scope (North America + Western Europe vs. scheduled competitors), garden leave compensation (base only vs. full compensation)
08/28/2024Devon ArcherAssociate72521450Assist with post-principals meeting gap analysis memorandum; update financial impact calculations
08/29/2024Renata VasquezPartner16501.52475Review and finalize memorandum on remaining gaps post-principals meeting; conference with J. Underwood regarding final proposal preparation contingencies
08/29/2024Devon ArcherAssociate72521450Research ISS and proxy advisory policies on CIC severance multipliers and tax gross-ups; update summary of Veltrano Proxy Advisors' informal guidance for inclusion in final proposal rationale
08/30/2024Renata VasquezPartner165023300Review Whitford email conveying Board authorization to transmit final compromise proposal (2.5x CIC with best-net, no Board turnover trigger, 18-month non-compete North America + Western Europe, 6-month garden leave at base salary concurrent with first 6 months of non-compete); begin preparation of final term sheet (v5-Final)
08/30/2024James UnderwoodAssociate89543580Begin drafting final compromise proposal — Revised Term Sheet (v5-Final); incorporate all agreed terms and Board-authorized final positions on disputed items; coordinate with R. Vasquez on cover letter language
08/30/2024Devon ArcherAssociate7252.51812.5Assist with preparation of final compromise term sheet (v5-Final); update compensation summary tables; verify all financial calculations (base $1,750,000, target bonus $3,062,500 at 175%, max bonus $5,250,000 at 300%, sign-on cash $5,000,000, sign-on equity $18,400,000, annual LTI $9,000,000, non-CIC severance 2x at $9,625,000, CIC severance 2.5x at $12,031,250)
08/31/2024James UnderwoodAssociate8953.53132.5Continue preparation of final compromise term sheet and formal cover letter from R. Vasquez to Victoria Hargrove; cite ISS guidance and UK Corporate Governance Code constraints supporting NTP's positions; set response deadline of September 9, 2024
08/31/2024Devon ArcherAssociate72521450Proofread and finalize final compromise term sheet (v5-Final); verify consistency of all defined terms and cross-references; prepare transmittal package for R. Vasquez review

[sheet: Timekeeper Summary]

TimekeeperTitleRateHoursAmount
Renata VasquezPartner165030.550325
Bernard CrawfordPartner157546300
James UnderwoodAssociate89569.562202.5
Devon ArcherAssociate7253122475
TOTAL135141302.5

[sheet: Invoice Summary]

DescriptionAmount
Professional Fees — August 2024184710
Disbursements — August 20240
Total Current Invoice184710
Prior Invoice #1022-00004-001 (June 2024)78925
Prior Invoice #1022-00004-002 (July 2024)152340
Cumulative Fees & Disbursements to Date415975
Retainer on Deposit75000

Note: Retainer to be applied to final invoice