[sheet: Invoice]
Field
INVOICE
From:
425 Lexington Avenue
New York, NY 10017
To:
780 Park Avenue, Suite 3200
New York, NY 10021
Attn: Sandra M. Whitfield, General Counsel
| Invoice Date: | April 12, 2024 |
| Invoice Number: | INV-2024-04-00387 |
| Matter Number: | 1026-00001 |
| Matter Description: | Side-Letter Negotiation — Meridian Peak Capital Partners Fund IV, L.P. |
| Billing Partner: | Nicholas Stern |
| Responsible Partner: | Pamela Cross |
| Client EIN: | 27-4831956 |
| Engagement Period: | January 24, 2024 – April 5, 2024 |
| Payment Terms: | Net 30 Days |
| Payment Due: | May 12, 2024 |
| Engagement Fee Cap (Soft): | $175,000.00 |
[sheet: Professional Fees]
| Timekeeper | Title | Billing Rate ($/hr) | Hours | Total Fees |
| Pamela Cross | Partner, Funds & Asset Management | 1450 | 18 | 26100 |
| Nicholas Stern | Partner, Funds & Asset Management | 1400 | 4 | 5600 |
| Theresa Kim | Senior Associate, Funds & Asset Management | 975 | 62 | 60450 |
| Owen Fischer | Associate, Funds & Asset Management | 725 | 55 | 39875 |
| TOTAL PROFESSIONAL FEES | 139 | 132025 |
[sheet: Time Detail]
| Date | Timekeeper | Hours | Rate ($/hr) | Amount | Description |
| 2024-01-22 | Pamela Cross | 0.5 | 1450 | 725 | Review new matter intake and conflict check clearance; initial assessment of engagement scope for BFO side-letter negotiation re Fund IV |
| 2024-01-22 | Theresa Kim | 1 | 975 | 975 | Prepare new matter intake form; coordinate conflict check for Briarwood Family Office LLC, Julian R. Hargrove, Meridian Peak Capital Advisors LLC, Conrad J. Ellsworth, Priya Narayan, Ashford Crane & Hewitt LLP, Pinnacle Capital Markets LLC |
| 2024-01-23 | Pamela Cross | 0.5 | 1450 | 725 | Prepare staffing and budget memorandum to N. Stern; discuss proposed billing rates and soft fee cap of $175,000 |
| 2024-01-24 | Pamela Cross | 1 | 1450 | 1450 | Finalize and execute engagement letter with BFO (S. Whitfield); scope of representation covering LPA/PPM review, side-letter negotiation, subscription document review |
| 2024-01-24 | Theresa Kim | 0.5 | 975 | 487.5 | Coordinate execution of engagement letter; confirm billing arrangements |
| 2024-01-26 | Theresa Kim | 1.5 | 975 | 1462.5 | Initial outreach email to H. Drummond at Ashford Crane; request Fund IV LPA, PPM, and subscription documents; receive and organize fund documents |
| 2024-01-26 | Owen Fischer | 2 | 725 | 1450 | Begin review of Fund IV LPA dated December 20, 2023 and PPM dated December 15, 2023; organize document set |
| 2024-01-29 | Owen Fischer | 4 | 725 | 2900 | Continue detailed LPA review; prepare internal review memorandum; analyze fund economics (1.75%/1.50% mgmt fee, 20% carry over 8% preferred return, European waterfall), investment period (4 yrs), fund term (10 yrs + extensions), transfer restrictions, key person provisions |
| 2024-01-29 | Theresa Kim | 3 | 975 | 2925 | Review and revise internal review memorandum; analyze excuse/exclusion rights in base LPA; identify areas for side-letter negotiation |
| 2024-02-01 | Theresa Kim | 4 | 975 | 3900 | Draft LPA review memorandum for BFO; analyze GP removal, LPAC composition, default remedies; identify side-letter priorities including most favored nation rights, enhanced excuse rights, fee reductions, co-investment rights, enhanced reporting |
| 2024-02-01 | Owen Fischer | 3 | 725 | 2175 | Draft PPM summary and risk assessment memorandum; analyze fund strategy (value-add and opportunistic North American CRE and asset management platforms), target size ($1.5B), hard cap ($1.75B), placement agent disclosure (Pinnacle Capital Markets LLC, 1.0% fee), Form D filing with SEC January 2, 2024 |
| 2024-02-02 | Pamela Cross | 1.5 | 1450 | 2175 | Review and finalize LPA review memorandum and PPM summary; deliver to BFO (S. Whitfield, D. Calloway) |
| 2024-02-04 | Theresa Kim | 3 | 975 | 2925 | Prepare fee and economics analysis memorandum; calculate standard vs. negotiated management fee comparison ($1,312,500/yr standard vs. $1,125,000/yr negotiated = $187,500/yr savings; $750,000 cumulative over 4-year investment period); analyze placement agent fee offset ($750,000) |
| 2024-02-04 | Owen Fischer | 2 | 725 | 1450 | Research market fee benchmarks; compile comparison of Meridian Peak Funds I-III fee structures (prior funds aggregating ~$3.2B) |
| 2024-02-05 | Pamela Cross | 2 | 1450 | 2900 | Strategy call with BFO (J. Hargrove, S. Whitfield, D. Calloway); align on side-letter negotiation priorities and approach |
| 2024-02-05 | Theresa Kim | 2 | 975 | 1950 | Prepare side-letter negotiation strategy memorandum; attend strategy call; finalize priority list (MFN, excuse rights, fee reduction, co-investment, enhanced reporting, key person, transfer rights, K-1 delivery, placement fee offset) |
| 2024-02-05 | Owen Fischer | 3 | 725 | 2175 | Prepare MFN provision comparison matrix; research market precedents for MFN clauses including LP commitment thresholds, anchor investor carve-outs, election periods, excluded categories |
| 2024-02-06 | Theresa Kim | 4 | 975 | 3900 | Draft initial side-letter term sheet; incorporate MFN rights (threshold: LPs ≥$50M; anchor carve-out: ≥$200M; 20 business day election period), excuse rights (cannabis, gaming/casino, sanctioned jurisdictions, ERISA plan assets), mgmt fee reduction (1.50%/1.25%), co-investment (deals >$100M equity, no fee/no carry) |
| 2024-02-06 | Owen Fischer | 2.5 | 725 | 1812.5 | Assist with term sheet drafting; research excuse rights market standards; draft enhanced reporting and K-1 delivery provisions (quarterly within 45 days, annual audited within 90 days, ESG reporting, K-1 within 75 days vs. 120 days standard) |
| 2024-02-07 | Pamela Cross | 1 | 1450 | 1450 | Review and approve initial term sheet; authorize transmittal to Ashford Crane |
| 2024-02-07 | Theresa Kim | 1 | 975 | 975 | Transmit initial side-letter term sheet to E. Woodbury at Ashford Crane (cc: H. Drummond, P. Cross); request GP comments within two weeks |
| 2024-02-15 | Theresa Kim | 3 | 975 | 2925 | Analyze Ashford Crane's GP markup of term sheet (returned Feb 14); prepare internal memorandum to P. Cross summarizing GP positions: acceptance of MFN with narrower scope, excuse cap at 15% ($11,250,000), qualified acceptance of fee reduction and co-investment, rejection of key person suspension |
| 2024-02-15 | Owen Fischer | 2 | 725 | 1450 | Assist with analysis of GP markup; research enforceability of key person suspension provisions under Delaware law |
| 2024-02-19 | Pamela Cross | 1 | 1450 | 1450 | Internal strategy call re GP markup; discuss counter-positions on excuse cap (maintain 25% = $18,750,000), key person, and MFN scope |
| 2024-02-19 | Theresa Kim | 1.5 | 975 | 1462.5 | Attend internal strategy call; develop revised positions for term sheet |
| 2024-02-19 | Nicholas Stern | 1 | 1400 | 1400 | Review GP markup analysis; provide guidance on fee negotiation strategy and market positioning |
| 2024-02-20 | Theresa Kim | 3 | 975 | 2925 | Draft revised side-letter term sheet incorporating concessions on reporting timelines; modify key person provision; maintain BFO positions on MFN, excuse cap (25%), fee reduction, co-investment |
| 2024-02-21 | Pamela Cross | 0.5 | 1450 | 725 | Review revised term sheet; authorize transmittal |
| 2024-02-21 | Theresa Kim | 0.5 | 975 | 487.5 | Transmit revised term sheet to Ashford Crane |
| 2024-02-26 | Theresa Kim | 5 | 975 | 4875 | Draft first complete side letter (Delaware law); sections covering MFN (Sec. 2), excuse/exclusion (Sec. 3), mgmt fee reduction (Sec. 4), co-investment (Sec. 5), enhanced reporting (Sec. 6), key person enhancement (Sec. 7), transfer rights to Hargrove family entities (Sec. 8), confidentiality carve-outs (Sec. 9), tax reporting (Sec. 10), placement fee offset (Sec. 11) |
| 2024-02-27 | Owen Fischer | 5 | 725 | 3625 | Assist with first draft side letter; draft excuse/exclusion, transfer, confidentiality, and tax reporting provisions; bracket excuse cap at [15%/25%] |
| 2024-02-27 | Theresa Kim | 3 | 975 | 2925 | Continue drafting first side letter; finalize MFN mechanics (GP to deliver redacted summary within 15 business days of close; BFO election within 20 business days; exclusions for Anchor Investors ≥$200M, regulatory accommodations, GP affiliates) |
| 2024-02-28 | Pamela Cross | 1.5 | 1450 | 2175 | Review and finalize first draft side letter; approve transmittal to Ashford Crane |
| 2024-02-28 | Theresa Kim | 1 | 975 | 975 | Transmit first draft side letter to E. Woodbury (cc: H. Drummond, P. Cross, S. Whitfield); governed by Delaware law; note bracketed provisions |
| 2024-03-05 | Theresa Kim | 3 | 975 | 2925 | Prepare redline comparison of GP markup of first draft (received Mar 4) vs. original; analyze GP changes to MFN scope, excuse cap (GP insisting 15%), co-investment mechanics, key person suspension period |
| 2024-03-05 | Owen Fischer | 2.5 | 725 | 1812.5 | Assist with redline analysis; catalog all GP changes and categorize by significance |
| 2024-03-06 | Theresa Kim | 4 | 975 | 3900 | Prepare excuse rights analysis memorandum; analyze legal enforceability under Delaware law, market practice comparison, GP 15% cap ($11,250,000) vs. C&H counter 25% ($18,750,000), ERISA plan-asset implications, impact on unfunded commitment; recommend maintaining 25% with 20% fallback |
| 2024-03-06 | Owen Fischer | 3 | 725 | 2175 | Research excuse rights precedents; assist with analysis memorandum; draft email to E. Woodbury proposing conference call dates for March 11 |
| 2024-03-07 | Theresa Kim | 4 | 975 | 3900 | Draft second side letter incorporating certain GP comments; maintain 25% excuse cap in brackets; narrow key person suspension to 60 days as compromise; refine co-investment mechanics and reporting schedule |
| 2024-03-07 | Owen Fischer | 3 | 725 | 2175 | Assist with second draft; revise co-investment and reporting provisions |
| 2024-03-07 | Pamela Cross | 1 | 1450 | 1450 | Review second draft side letter; approve transmittal to Ashford Crane |
| 2024-03-08 | Theresa Kim | 2 | 975 | 1950 | Prepare conference call agenda and preparation memorandum for BFO (S. Whitfield, D. Calloway); list open points: excuse cap, MFN anchor carve-out scope, key person suspension duration; develop talking points and fallback positions |
| 2024-03-10 | Owen Fischer | 6 | 725 | 4350 | Markup Fund IV standard subscription agreement for BFO review; include BFO-specific representations (qualified purchaser, not ERISA), commitment amount $75,000,000, cross-references to side letter; prepare draft investor questionnaire with BFO entity information (DE LLC, EIN 27-4831956, authorized signatory Julian R. Hargrove, accredited investor, qualified purchaser, not benefit plan investor, not bad actor) |
| 2024-03-11 | Pamela Cross | 2 | 1450 | 2900 | Attend four-party conference call (C&H, BFO, Ashford Crane, Meridian Peak); discuss open points; negotiate key person suspension (90 days accepted by GP), MFN anchor carve-out confirmed at $200M; excuse cap remains disputed (GP at 20%, BFO pressing 25%) |
| 2024-03-11 | Theresa Kim | 2 | 975 | 1950 | Attend conference call; take detailed notes; record agreements and remaining disagreements |
| 2024-03-12 | Theresa Kim | 2 | 975 | 1950 | Prepare conference call summary memorandum for P. Cross, S. Whitfield, D. Calloway; document agreements on key person (90 days), MFN anchor ($200M), GP willingness to move excuse cap to 20% but BFO pressing 25% |
| 2024-03-13 | Theresa Kim | 4 | 975 | 3900 | Draft third side letter incorporating conference call outcomes; key person at 90 days (agreed); MFN anchor at $200M (agreed); excuse cap bracketed [20%/25%]; bracket MFN summary delivery timing (15 vs. 20 business days) and K-1 delivery (75 vs. 90 days); three bracketed points remain |
| 2024-03-13 | Owen Fischer | 3 | 725 | 2175 | Assist with third draft; revise key person, MFN, and reporting provisions |
| 2024-03-14 | Pamela Cross | 1 | 1450 | 1450 | Review third draft side letter; approve transmittal |
| 2024-03-14 | Theresa Kim | 0.5 | 975 | 487.5 | Transmit third draft to E. Woodbury (cc: H. Drummond, P. Cross, S. Whitfield, D. Calloway); note three remaining bracketed points |
| 2024-03-19 | Owen Fischer | 3 | 725 | 2175 | Prepare redline comparison of second GP markup (received Mar 18) vs. third draft; catalog GP final positions: excuse cap (20%), MFN summary delivery (20 business days), K-1 delivery (90 days) |
| 2024-03-19 | Theresa Kim | 2 | 975 | 1950 | Review redline; analyze GP's final positions on three bracketed points |
| 2024-03-21 | Pamela Cross | 1.5 | 1450 | 2175 | Prepare open points memorandum to BFO; summarize three remaining issues: (1) excuse cap (GP 20% = $15,000,000 vs. BFO 25% = $18,750,000), (2) MFN summary delivery (15 vs. 20 business days), (3) K-1 delivery (75 vs. 90 days); recommend accepting GP positions on (2) and (3), press 25% excuse cap; note IC approval required |
| 2024-03-22 | Theresa Kim | 1.5 | 975 | 1462.5 | Finalize open points memorandum; deliver to J. Hargrove, S. Whitfield, D. Calloway |
| 2024-03-29 | Theresa Kim | 0.5 | 975 | 487.5 | Email to H. Drummond relaying BFO pause on negotiations pending IC review; BFO expects to reconvene committee in early April |
| 2024-04-03 | Pamela Cross | 0.5 | 1450 | 725 | Telephone call with S. Whitfield re BFO IC decision (April 2) to decline Fund IV commitment; discuss withdrawal process |
| 2024-04-04 | Pamela Cross | 1 | 1450 | 1450 | Draft and send formal withdrawal letter to H. Drummond (Ashford Crane) and G. Lockhart (Meridian Peak); confirm all draft side-letter provisions including most favored nation rights, excuse/exclusion rights, fee concessions lapse and are of no further force or effect; no subscription agreement executed, no capital commitments made |
| 2024-04-04 | Theresa Kim | 0.5 | 975 | 487.5 | Coordinate delivery of withdrawal letter; confirm receipt |
| 2024-04-05 | Pamela Cross | 0.5 | 1450 | 725 | Send internal notification of matter closing; Matter No. 1026-00001 status: closed_terminated; instruct team to file all draft documents to DMS |
| 2024-04-05 | Nicholas Stern | 1 | 1400 | 1400 | Review time entries and prepare matter for final billing |
| 2024-04-05 | Theresa Kim | 0.5 | 975 | 487.5 | File all draft documents to DMS; confirm matter closing procedures |
| 2024-04-05 | Owen Fischer | 0.5 | 725 | 362.5 | Organize and file matter documents; confirm closing |
| 2024-04-10 | Nicholas Stern | 2 | 1400 | 2800 | Prepare and review final invoice; verify all time entries and disbursements |
| TOTAL | 139 | 132025 |
[sheet: Disbursements]
| Date | Description | Amount |
| 2024-01-26 | Document management system — intake and organization of Fund IV LPA, PPM, and subscription documents | 150 |
| 2024-02-05 | Westmark Data Systems research — MFN provision precedents and market comparison data | 275 |
| 2024-02-15 | Westmark Data Systems research — excuse rights enforceability under Delaware law | 225 |
| 2024-03-06 | Westmark Data Systems research — ERISA plan-asset excuse provisions; key person clause analysis | 300 |
| 2024-03-10 | Document management system — subscription agreement and investor questionnaire processing | 100 |
| 2024-04-05 | Document management system — matter closing and final archiving | 150 |
| TOTAL DISBURSEMENTS | 1200 |
[sheet: Summary]
Description
INVOICE SUMMARY
| Matter Number: | 1026-00001 |
| Matter: | Briarwood Family Office LLC — Side-Letter Negotiation, Meridian Peak Capital Partners Fund IV, L.P. |
| Invoice Date: | April 12, 2024 |
| Professional Fees | 132025 |
| Pamela Cross — Partner (18.0 hrs × $1,450/hr) | 26100 |
| Nicholas Stern — Partner (4.0 hrs × $1,400/hr) | 5600 |
| Theresa Kim — Senior Associate (62.0 hrs × $975/hr) | 60450 |
| Owen Fischer — Associate (55.0 hrs × $725/hr) | 39875 |
| Disbursements | 1200 |
| TOTAL AMOUNT DUE | 133225 |
| Soft Fee Cap (for reference) | 175000 |
| Amount Under Cap | 41775 |
| Payment Terms: | Net 30 Days |
| Payment Due Date: | May 12, 2024 |
Please remit payment to:
Calderwood & Harkness LLP
425 Lexington Avenue
New York, NY 10017
Reference: Invoice INV-2024-04-00387 / Matter 1026-00001