Linklaters │ June What can law firms do to help clients through the ‘difficult times’. At the Pricing level  Adopt a flexible approach to pricing rather than having a rigid fee structure  Seek information on anticipated/ future work from the client and offer to take on multiple jobs for a reduced bulk fee  Seek clear instructions of work involved so the law firm can reduce overall cost  Early communication of the commercial background to an arrangement and being informed of particular goals, sensitivities, areas of tension, etc. can assist with efficiency  Offer to differentiate pricing where complex/ strategic work is priced differently to more transactional work

Linklaters │ June At the Relationship Management level  Encourage client to adopt appropriate flexible pricing models benefitting both the client and law firm  A close working relationship with clients and regular dialogue in relation to costs is the most effective means of ensuring that clients’ objectives in relation to fees are met  Regular review of which clients you want to invest in for the longer term and what that investment may mean e.g. reducing rates for an agreed period given the economic situation What can law firms do to help clients through the ‘difficult times’. (cont’d)

Linklaters │ June  Taking a flexible approach to pricing rather than having a rigid fee structure  Understanding the need for flexible billing is more important than ever in the current economic climate;  Dedicated pricing expert can focus on further pricing innovation in response to clients’ changing needs  Working alongside clients to agree the most appropriate fee structure, whether this be one which needs to address cost, mitigation of risk, investment for the future, creation of value to the client or a combination of the above  Utilising precedents and expertise in developing innovative and bespoke fee arrangements for major clients  Fee arrangements may include fixed fees, success related fees, discretionary bonuses, blended rates and volume and relationship credits Embedding and encouraging a flexible approach to pricing

Linklaters │ June The pricing ‘menu’ Lower risk Higher risk Hourly Rates Discounted Hourly Rates Blended Hourly Rates Fixed Fees Monthly Retainer ‘Collar & Cap’ Capped Fees Performance- based Billing Abort/ Success Fees ‘Value Billing’ The most appropriate approach may vary depending upon client ‘need’ ‘Mitigation of Risk’ ‘Cost-Focused’ ‘Value-Focused’