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ACC/TAL 2010 General Expenditure Questions 11/17/2010

Total

$0-$100,000 16.4% 22.0% 2.4%

$100,001-$500,000 23.4% 31.9% 3.9%

$500,000-$1,000,000 14.2% 17.7% 8.7%More than $1,000,000 45.9% 28.4% 85.0%

Total0-5% 52.8% 55.3% 44.5%

6-10% 13.6% 12.4% 17.2%

11-15% 7.2% 6.4% 10.2%

16-20% 5.8% 6.4% 6.3%

21-25% 5.1% 5.7% 4.7%

26-30% 2.5% 2.1% 3.9%

31-40% 4.0% 2.1% 4.7%

41-50% 3.4% 4.6% 1.6%

51+% 5.6% 5.0% 7.0%

Total

0-5% 56.0% 57.5% 49.2%

6-10% 14.5% 13.4% 18.0%

11-15% 6.3% 6.0% 8.2%

16-20% 6.6% 5.2% 9.8%

21-25% 3.7% 4.5% 3.3%

26-30% 2.1% 1.9% 2.5%

31-40% 1.9% 1.9% 0.8%

41-50% 3.5% 3.4% 4.9%

51+% 5.4% 6.3% 3.3%

Total

Increased 29.3% 26.3% 37.8%

Decreased 8.6% 8.5% 7.9%

In 2010 how much will your company spend

on outside legal counsel?

Under

$1,000,000,

000

Over

$1,000,000,

000

In 2010, approximately what percent of youroutside counsel spend is or will be valued

through an arrangement that is not based

solely on hourly, discounted or blended rates,

but which includes fee arrangements

incorporating incentives, caps, alternative

providers, pricing fixed by stage, matter,

portfolio, contingency arrangements, etc.?

Under

$1,000,000,

000

Over

$1,000,000,

000

In 2010 approximately what percent of yourcompany's matters handled by outsidecounsel included such alternative

components?

Under$1,000,000,

000

Over$1,000,000,

000

Compared to 2009, has work billed on other

than an hourly rate basis increased,

decreased, or remained the same?

Under

$1,000,000,

000

Over

$1,000,000,

000


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ACC/TAL 2010 General Expenditure Questions 11/17/2010

Stayed the Same 62.2% 65.1% 54.3%

Total

31%+ Decrease 1.9% 2.3% 1.5%21-30% Decrease 1.9% 1.5% 3.1%

11-20% Decrease 1.9% 1.5% 1.5%

1-10% Decrease 2.4% 1.5% 3.1%

0-10% Increase 52.6% 47.7% 60.0%

11-20% Increase 23.2% 26.9% 18.5%

21-30% Increase 8.5% 9.2% 7.7%

31+% Increase 7.6% 9.2% 4.6%

If you anticipate an increase or decrease for

question 4, please estimate the percentage

increase or decrease:

Under

$1,000,000,

000

Over

$1,000,000,

000


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ACC/ALM 2010 Fee Arrangements 11/17/2010

2010 2009

$0-$100,000 16% 13%

$100,001-$500,000 23% 24%

$500,001-$1,000,000 14% 14%More than $1,000,000 46% 49%

2010 2009

0-5% 53% 55%

6-10% 14% 14%

11-15% 7% 6%

16-20% 6% 6%

21-25% 5% 4%

26-30% 3% 2%

31-40% 4% 3%

41-50% 3% 3%

51+%6% 6%

2010 2009

0-5% 56% 59%

6-10% 15% 12%

11-15% 6% 5%

16-20% 7% 6%

21-25% 4% 4%

26-30% 2% 2%

This is question 431-40% 2% 2%

41-50% 4% 3%

51+% 5% 7%

In 2010 how much will your companyspend on outside legal counsel?

In 2010, approximately what percent ofyour outside counsel spend is or will bevalued through an arrangement that isnot based solely on hourly, discountedor blended rates, but which includesfee arrangements incorporatingincentives, caps, alternative providers,pricing fixed by stage, matter,

portfolio, contingency arrangements,etc.?

In 2010 approximately what percent ofyour company's matters handled byoutside counsel included suchalternative components?


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2010 2009

Increased 29% 39%

Decreased 9% 8%

Stayed the same 62% 53%

2010 2009

More than -30% 2% 2%

-21 to -30% 2% 0%

-11 to -20% 0% 3%

-1 to -10% 2% 3%

0 to 10% 53% 42%11 to 20% 23% 23%

21 to 30% 9% 13%

More than 30% 8% 13%

2010 2009

Flat fee for an entire matter 53% 48%

Flat fees for some stages of a matter 34% 36%

Contingency fees 20% 19%

Incentive or success fees 18% 19%

Disincentive or failure fees 3% 2%

Collars, caps, etc. 30% 25%

18% 20%

None 22% 24%

Other 5% 7%

2010 2009

Secondments 12% 10%

Shared staffing 4% 3%

10% 8%

12% 10%

13% 18%

Compared the previous year, has workbilled on other than an hourly ratebasis increased, decreased, orremained the same?

Asks regarding

previous question.If you anticipate an increase ordecrease for question 4, pleaseestimate the percentage increase ordecrease:

What kinds of alternative fee arrangements

have you used in 2010? (check all that

apply)

Periodic retainer fee for a portfiolio of

services

If your outside firms have used alternative

staffing arrangements this year, pleaseindicate which they have used: (check all

that apply)

Work outsourced to a third party and

handled by non lawyers

Work outsourced to a third party and

handled by lawyers

Work handled by contract lawyers at the

firm and/or in the legal department


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None 67% 67%

Other 1% 1%

2010 2009The law department 51% 54%

Law firms 3% 3%

Some of both 20% 18%

Does not apply 26% 26%

2010 2009

More firms 61% 64%

Fewer firms 4% 3%About the same 21% 17%

Don't know 15% 16%

2010 2009 NEW QUESTION

Yes 26% N/A

No 74% N/A


Yes 13% N/A

No 87% N/A

2010 2009

Cut back their proposed hourly rates 38% 34%

Offer discounts on billable hours 61% 54%Offer alternative fee arrangements 39% 31%

None of the above 24% 31%


If applicable, who initiated the alternative

fee arrangements that you used in 2010?

Do you think that more or fewer firms are

willing to discuss changing their fee orservice structures to offer you alternative

arrangements?

Have you ever started working with a new

firm because they offer alternative services

or fee arrangements?

Have you ever stopped working with a firm

because they didn't offer alternativeservices or fee arrangements?

In 2010, did you require some of your

firms to: (check all that apply)

If you have not used alternative fee

arrangements in 2010, do you plan to try

to implement them in 2011?


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Yes 24% N/A

No 18% N/A

Not Applicable 58% N/A

2010

17%

5%

37%

7%

8%

20%

Alternative fee arrangements are too risky 2%

Other 4%

2010

Litigation 47%

Transactional 46%Compliance 20%

IP 24%

None 19%

Other 10%

In your judgment, what is the biggest

reason why there have not been more

alternative fee billing arrangements?Law firms are comfortable with the billable

hour

Clients are comfortable with the billable

hour

Many law firms and clients have insufficient

experience defining or managing work on

an alternative fee basis

Alternative arrangements are too difficult

to negotiate or stick to

Law firms are unwilling to participate in

alternative arrangementsAbsent better metrics and data, it is

difficult to detemine alternative values

In what practice areas have you used

alternative fee arrangements? (check allthat apply)


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ACC/ALM 2010 Demographics 11/17/2010

Your job title

GC/CLO/VP of Legal 91%

Deputy GC/Assistant GC/Associate GC 4%

Other 5%

0-5 69%

6-50 26%

51-200 5%

More than 200 1%

Law department budget:

0-500,000 29%501,000-1,000,000 19%

1,000,000-25,000,000 45%

More than 25,000,000 7%

$0-$50,000,000 24%

$50,000,001-$500,000,000 30%

$500,000,001-$1,000,000,000 15%

More than $1,000,000,000 31%

0 7%

1-10 68%

11-25 18%

26-50 5%

51-100 2%

More than 100 1%

The number of lawyers working in your

company's legal department

worldwide:

Annual gross revenue of your

company:

Number of law firms with which your

company will spend at least $50,000

during 2010:

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