1022-00004
· Northgate Telecommunications PLC · Billing
invoice-september-2024-final.xlsx
DOCUMENT
Labor & Employment
[sheet: Invoice]
CALDERWOOD & HARKNESS LLP
299 Park Avenue, 42nd Floor, New York, NY 10171
INVOICE
| Invoice Number: | 1022-00004-004 |
| Invoice Date: | October 3, 2024 |
Billed To:
Northgate Telecommunications PLC
Attn: Elaine Whitford, SVP & Group General Counsel
600 Lexington Avenue, 38th Floor
New York, NY 10022
| Matter Number: | 1022-00004 |
| Matter Description: | Northgate Telecommunications PLC — CEO Employment Agreement Negotiation (Marcus Elliot Harding) |
| Billing Period: | September 1–30, 2024 |
| Responsible Partner: | Renata Vasquez |
| Billing Partner: | Bernard Crawford |
| Matter Status: | Closed — Terminated |
PROFESSIONAL SERVICES — SUMMARY
| Timekeeper | Title | Rate ($/hr) | Hours | Amount ($) |
| Renata Vasquez | Partner | $1,650.00 | 12.5 | $20,625.00 |
| Bernard Crawford | Partner | $1,575.00 | 3.0 | $4,725.00 |
| James Underwood | Associate | $895.00 | 32.0 | $28,640.00 |
| Devon Archer | Associate | $725.00 | 24.0 | $17,400.00 |
| 71.5 | $71,390.00 | |||
| Billing Adjustment | ($15.00) | |||
| Total Professional Fees | $71,375.00 |
DISBURSEMENTS
| Date | Description | Amount ($) |
| Various | Westmark Data Systems / Legal Research | $3,450.00 |
| Various | Travel (car service — principals meeting follow-up, client meetings) | $2,125.00 |
| Various | Meals (working sessions) | $875.00 |
| Various | Courier / Severin Partners LLC (termination correspondence, document return) | $1,825.00 |
| Total Disbursements | $8,275.00 |
INVOICE SUMMARY
| Professional Fees | $71,375.00 |
| Disbursements | $8,275.00 |
| Gross Invoice Amount | $79,650.00 |
| Less: Retainer Credit (applied per engagement letter dated June 4, 2024) | ($75,000.00) |
| NET AMOUNT DUE | $4,650.00 |
Payment Terms: Net 30 days from invoice date
Please remit to: Calderwood & Harkness LLP, 299 Park Avenue, 42nd Floor, New York, NY 10171
CUMULATIVE ENGAGEMENT SUMMARY
| Invoice # | Period | Amount | Cumulative |
| 1022-00004-001 | June 2024 | $78,925.00 | $78,925.00 |
| 1022-00004-002 | July 2024 | $152,340.00 | $231,265.00 |
| 1022-00004-003 | August 2024 | $184,710.00 | $415,975.00 |
| 1022-00004-004 | September 2024 (Final) | $79,650.00 | $495,625.00 |
| Total Fees + Disbursements | $495,625.00 | ||
| Less: Retainer | ($75,000.00) | ||
| Net Balance Collected/Due | $420,625.00 |
[sheet: Time Detail]
| Date | Timekeeper | Rate | Hours | Amount | Description |
| 09/01/2024 | James Underwood | $895.00 | 3.5 | $3,132.50 | Draft final compromise term sheet (v5-Final) reflecting Board-authorized positions on change in control severance (2.5x multiplier, best-net cutback) and restrictive covenant terms (18-month non-compete, North America and Western Europe scope); coordinate with R. Vasquez on cover letter language |
| 09/02/2024 | Devon Archer | $725.00 | 2.5 | $1,812.50 | Research and prepare supporting analysis for final compromise proposal; review Section 280G safe harbor limit ($23,519,999) implications under best-net cutback approach; update comparison chart of NTP proposal vs. Harding counter-demand |
| 09/03/2024 | Renata Vasquez | $1,650.00 | 2.0 | $3,300.00 | Review and finalize revised term sheet (v5-Final) and formal cover letter to V. Hargrove at Hargrove & Liddell LLP; transmit final compromise proposal on behalf of Northgate; telephone call with E. Whitford regarding transmittal and next steps |
| 09/03/2024 | James Underwood | $895.00 | 2.0 | $1,790.00 | Finalize and format final compromise term sheet (v5-Final); prepare formal transmittal letter from R. Vasquez to V. Hargrove; coordinate delivery via email and courier to Hargrove & Liddell LLP, 51 Madison Avenue, 30th Floor, New York, NY 10010 |
| 09/03/2024 | Devon Archer | $725.00 | 1.5 | $1,087.50 | Assist with preparation and proofreading of final compromise proposal and cover letter; update matter chronology file |
| 09/04/2024 | James Underwood | $895.00 | 1.5 | $1,342.50 | Prepare internal memorandum summarizing terms of final compromise proposal for matter file; update comparison of NTP final offer vs. Harding's non-negotiable positions (3x CIC multiplier, full 280G gross-up, Board turnover trigger, 12-month non-compete) |
| 09/09/2024 | Renata Vasquez | $1,650.00 | 1.5 | $2,475.00 | Review and analyze email from V. Hargrove rejecting final proposal on behalf of M. Harding; telephone call with E. Whitford forwarding rejection and recommending Board formally resolve to terminate negotiations; discuss contingency planning |
| 09/09/2024 | James Underwood | $895.00 | 2.0 | $1,790.00 | Review H&L rejection correspondence; prepare summary analysis of stated deal-breakers (CIC multiplier gap of $2,406,250; gross-up exposure of $4.2M–$6.8M; Board turnover trigger; non-compete duration/scope); draft talking points for anticipated Board call |
| 09/09/2024 | Devon Archer | $725.00 | 1.5 | $1,087.50 | Research disclosure obligations under SEC, NYSE, and FCA rules regarding failed executive compensation negotiations where no definitive agreement was reached |
| 09/10/2024 | Renata Vasquez | $1,650.00 | 2.5 | $4,125.00 | Participate in Board call with Dame Philippa Thornton-Hale, G. Stanton, L. Farrow, Dr. T. Herrera, and E. Whitford; present summary of negotiation breakdown and Harding's non-negotiable positions; Board unanimously directs termination of negotiations; discuss next steps including resumption of CEO search via Kensington Partners |
| 09/10/2024 | James Underwood | $895.00 | 2.5 | $2,237.50 | Attend Board call; prepare detailed notes of Board discussion and direction to terminate; begin drafting Board resolution authorizing termination of CEO employment negotiations with Marcus Elliot Harding |
| 09/10/2024 | Bernard Crawford | $1,575.00 | 1.0 | $1,575.00 | Review status of engagement and anticipated closing activities; confer with R. Vasquez regarding final billing and retainer application |
| 09/11/2024 | James Underwood | $895.00 | 3.5 | $3,132.50 | Draft Board resolution authorizing termination of negotiations; draft formal notification letter from R. Vasquez to V. Hargrove at Hargrove & Liddell LLP; draft letter to A. Blythe at Kensington Partners Ltd. regarding resumption of CEO search |
| 09/11/2024 | Devon Archer | $725.00 | 3.0 | $2,175.00 | Draft memorandum on post-termination confidentiality obligations and document handling protocols; research NDA provisions applicable to exchanged materials; compile privilege log of documents generated during engagement |
| 09/12/2024 | Renata Vasquez | $1,650.00 | 2.5 | $4,125.00 | Review, finalize, and execute Board resolution; review and finalize termination letter to V. Hargrove; authorize delivery; telephone call with E. Whitford confirming delivery and discussing public disclosure guidance, interim CEO arrangements, and Kensington search resumption |
| 09/12/2024 | James Underwood | $895.00 | 3.0 | $2,685.00 | Finalize Board resolution; finalize and transmit formal termination notification letter to Hargrove & Liddell LLP; finalize post-termination confidentiality memorandum; update matter chronology |
| 09/12/2024 | Devon Archer | $725.00 | 2.5 | $1,812.50 | Finalize privilege log memorandum; assist with document compilation for termination correspondence; coordinate courier delivery of termination letter |
| 09/12/2024 | Bernard Crawford | $1,575.00 | 0.5 | $787.50 | Review and approve Board resolution; brief discussion with R. Vasquez regarding matter closing procedures |
| 09/13/2024 | Renata Vasquez | $1,650.00 | 2.0 | $3,300.00 | Finalize and transmit letter to A. Blythe at Kensington Partners Ltd. (33 St James's Square, London SW1Y 4JS) notifying of terminated negotiations and Board direction to resume CEO search; email to E. Whitford providing guidance on public disclosure obligations — conclude no disclosure required as no definitive agreement reached |
| 09/13/2024 | James Underwood | $895.00 | 2.0 | $1,790.00 | Finalize letter to Kensington Partners; draft email guidance on public disclosure / non-disclosure of failed negotiation for R. Vasquez review |
| 09/13/2024 | Devon Archer | $725.00 | 2.0 | $1,450.00 | Compile and organize all versions of term sheets (v1 through v5-Final), draft employment agreements (Draft 1 and Draft 2), and all redlines for matter file; update document index |
| 09/16/2024 | Renata Vasquez | $1,650.00 | 2.0 | $3,300.00 | Draft lessons learned memorandum analyzing negotiation breakdown: core deal-breakers (change in control severance multiplier, 280G tax gross-up, Board turnover trigger in CIC definition, restrictive covenant scope and duration); recommendations for future CEO compensation negotiations including earlier Board alignment on CIC and non-compete parameters; transmit to E. Whitford and G. Stanton |
| 09/16/2024 | James Underwood | $895.00 | 3.0 | $2,685.00 | Assist with drafting lessons learned memorandum; prepare detailed analysis of each negotiation impasse point with financial quantification |
| 09/17/2024 | Devon Archer | $725.00 | 3.5 | $2,537.50 | Prepare comprehensive document retention and privilege log memorandum for matter 1022-00004; catalog all privileged and work-product documents; identify applicable privilege designations (attorney-client, work product); recommend retention periods per firm policy |
| 09/18/2024 | Renata Vasquez | $1,650.00 | 1.5 | $2,475.00 | Email to E. Whitford regarding consideration of alternative candidates and interim CEO arrangements (possible extension of Sir Alistair Kemble's tenure or appointment of internal interim such as J. Briggs as CFO); offer Calderwood & Harkness's availability for future CEO engagement |
| 09/18/2024 | James Underwood | $895.00 | 2.0 | $1,790.00 | Research precedents for interim CEO arrangements for UK-listed companies with US operations; prepare brief summary for R. Vasquez |
| 09/18/2024 | Devon Archer | $725.00 | 2.5 | $1,812.50 | Finalize document retention memorandum; coordinate with firm records department regarding matter file organization and closing procedures |
| 09/19/2024 | Bernard Crawford | $1,575.00 | 1.5 | $2,362.50 | Review final billing records; prepare time summary and reconciliation for matter closing; confer with R. Vasquez regarding retainer application and final invoice preparation |
| 09/20/2024 | James Underwood | $895.00 | 5.0 | $4,475.00 | Prepare comprehensive matter closing memorandum for 1022-00004: engagement history, key deliverables, outcome (terminated negotiations), total fees ($487,350), disbursements ($8,275), retainer applied ($75,000), final balance ($420,625), document inventory; review all open items for closure |
| 09/20/2024 | Devon Archer | $725.00 | 5.0 | $3,625.00 | Assist with matter closing memorandum; compile complete document inventory for matter file; prepare file index; organize physical and electronic files for closing; draft engagement closing letter and file transfer/document return letter for R. Vasquez review |
| 09/23/2024 | Renata Vasquez | $1,650.00 | 0.5 | $825.00 | Review and approve matter closing memorandum; final review of engagement closing letter and file transfer letter to Northgate |
| 09/23/2024 | James Underwood | $895.00 | 2.0 | $1,790.00 | Finalize matter closing memorandum; finalize engagement closing letter and file transfer/document return letter; coordinate with firm accounting for final invoice preparation |
| TOTALS | 71.5 | $71,390.00 | |||
| Timekeeper Summary: | Hours | Amount | |||
| Renata Vasquez (Partner @ $1,650/hr) | 12.5 | $20,625.00 | |||
| Bernard Crawford (Partner @ $1,575/hr) | 3.0 | $4,725.00 | |||
| James Underwood (Associate @ $895/hr) | 32.0 | $28,640.00 | |||
| Devon Archer (Associate @ $725/hr) | 24.0 | $17,400.00 | |||
| 71.5 | $71,390.00 | ||||
| Billing Adjustment | ($15.00) | ||||
| Total Professional Fees | $71,375.00 |
[sheet: Disbursement Detail]
| Date | Category | Description | Amount |
| Various (Jun–Sep 2024) | Legal Research | Westmark Data Systems online research — NY non-compete enforceability, Section 280G analysis, CIC market survey, UK Corporate Governance Code, cross-border employment structure | $3,450.00 |
| Subtotal — Legal Research | $3,450.00 | ||
| 06/24/2024 | Travel | Car service — negotiation call preparation meeting at NTP US HQ, 600 Lexington Avenue | $325.00 |
| 07/12/2024 | Travel | Car service — negotiation call #4 preparation | $275.00 |
| 08/26/2024 | Travel | Car service — in-person principals meeting at 600 Lexington Avenue (Vasquez, Underwood) | $425.00 |
| 09/10/2024 | Travel | Car service — Board call preparation meeting at C&H office | $350.00 |
| 09/12/2024 | Travel | Car service — delivery coordination, client meeting | $750.00 |
| Subtotal — Travel | $2,125.00 | ||
| 07/08/2024 | Meals | Working lunch — Vasquez, Underwood, Archer (Draft 1 preparation session) | $225.00 |
| 08/07/2024 | Meals | Working dinner — Vasquez, Underwood (H&L redline analysis session) | $325.00 |
| 08/23/2024 | Meals | Working lunch — Vasquez, Underwood, Archer (principals meeting preparation) | $325.00 |
| Subtotal — Meals | $875.00 | ||
| 06/10/2024 | Courier / Severin Partners LLC | Severin Partners LLC — transmittal of initial term sheet to Hargrove & Liddell LLP | $175.00 |
| 07/22/2024 | Courier / Severin Partners LLC | Severin Partners LLC — transmittal of Draft 1 employment agreement to H&L | $175.00 |
| 08/12/2024 | Courier / Severin Partners LLC | Severin Partners LLC — transmittal of Draft 2 employment agreement to H&L | $175.00 |
| 09/03/2024 | Courier / Severin Partners LLC | Severin Partners LLC — transmittal of final compromise proposal and cover letter to Hargrove & Liddell LLP, 51 Madison Avenue, 30th Floor, New York, NY 10010 | $375.00 |
| 09/12/2024 | Courier / Severin Partners LLC | Severin Partners LLC — delivery of formal termination notification letter to Hargrove & Liddell LLP | $325.00 |
| 09/13/2024 | Courier / Severin Partners LLC | International courier — termination notification to Kensington Partners Ltd., 33 St James's Square, London SW1Y 4JS | $600.00 |
| Subtotal — Courier / Severin Partners LLC | $1,825.00 | ||
| TOTAL DISBURSEMENTS | $8,275.00 |
[sheet: Retainer Reconciliation]
| Date | Description | Debit | Credit | Balance |
| Opening Balance — Client Trust Account | $0.00 | |||
| 06/05/2024 | Retainer received from Northgate Telecommunications PLC per engagement letter dated June 4, 2024 — deposited to Calderwood & Harkness LLP client trust account | $75,000.00 | $75,000.00 | |
| 10/03/2024 | Applied to Invoice #1022-00004-004 (final invoice) per engagement letter terms | $75,000.00 | $0.00 |
Retainer Reconciliation Summary:
| Retainer Received | $75,000.00 |
| Retainer Applied | $75,000.00 |
| Remaining Retainer Balance | $0.00 |
Final Invoice Reconciliation:
| Gross Invoice Amount (Invoice #1022-00004-004) | $79,650.00 |
| Less: Retainer Credit Applied | ($75,000.00) |
| Net Amount Due from Client | $4,650.00 |