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GELRT =  Global External Legal Relations Team (GELRT’s) Mission: Dramatically change the paradigm by which GSK pays for legal services  Move away from hourly-rate system – System provides disincentive for cost efficiencies  Move towards win/win Value-Based Fee Arrangements (VBFs)

Results of VBF Initiative  Results – In 2008, less than 3% of GSK external spend was through VBFs – By close of 2015, 84% of GSK’s external spend was through VBFs – Number of VBFs in 2015 was 348, up 14Xs the total number in 2009 (25), the first year of the GSK Legal VBF initiative 4

Number of VBF Processed by GELRT Annually ( )

GSK’s Outside Counsel Selection Initiative or OCSI

OCSI: How It Works Selected outside counsel firms (at least three) complete and return mini-RFI GSK Outside Counsel In-house counsel  Prepares request template, selects at least three outside counsel firms Analyzes mini-RFI responses and recommends firm for Practice Group head approval In-house counsel  Prepares request template, selects at least three outside counsel firms Analyzes mini-RFI responses and recommends firm for Practice Group head approval Procurement Receives template and distributes it to selected outside counsel Receives mini-RFI and provides data to in- house counsel; ensures matter assumptions are uniform; runs online sourcing room event Procurement Receives template and distributes it to selected outside counsel Receives mini-RFI and provides data to in- house counsel; ensures matter assumptions are uniform; runs online sourcing room event VP & Assoc. GC (with Procurement) Review and approve recommendation; Prepare AFA Engagement Letter VP & Assoc. GC (with Procurement) Review and approve recommendation; Prepare AFA Engagement Letter E-Sourcing Room      Firm X Firm Y Firm Z Score Card- Grade Firm X5 Firm Y3 Firm Z4  Feedback provided to each firm Request Form – Litigation Matter Firm X Firm Y Firm Z Request Form – Acquisition Matter Firm X Firm Y Firm Z Request Form - Acquisition Number Firm X Firm Y Firm Z Request Form - Acquisition Number Firm X Firm Y Firm Z Price Proposals– Litigation Matter Description of Proposed Team Experience with Opposing Counsel Trial Experience of 1 st and 2 nd chairs, etc.

OCSI Results 119 OCSI events conducted to date 127 firms have been trained and submitted proposals to date Total Estimated Savings: $65.5 Million (Budget to Final Offer); $39 Million (Initial to Final Offer) OCSI Savings are a subset of overall savings 8

Revolutionize how outside counsel engagements are priced/valued... by standardizing task-based data analytics to better predict the cost/value of legal engagements. The idea is to find a way to aggregate/ analyze/ benchmark fee data across companies/ industries in a standardized way to produce data sets with high confidence levels and predictive value. 9

ACC’s membership includes a diverse mix of more than 35,000 in-house lawyers who represent more than 10,000 companies in 85 countries worldwide. 10

The Association of Corporate Counsel is pleased to introduce a home exclusively for corporate legal operations professionals – a member- driven organization delivering benchmarking and collaboration opportunities, resources, and a unified voice to advance and support this critical business function. 11

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Formed New Working Group for AFA Metrics and Analytics 13

What is Needed For Progress Starting Point Standardized, “Fit For Purpose” Coding Critical Mass of Clients Cooperation from Law Firms Systematic approach to Data Capture Time 14

GSK – Legal Project Management – Create/Update the Legal Matter Project - Tasks Create/Update Project Tasks Template 4 Select Project Task Template: Dropdown List of Templates ASCENT could auto-assign template based on matter type (or other field value). Factual Research and Assessment Witness Interviews Review of Key Documents Legal Research and Assessment Preparation of an ECA Report and Presentation to Client Task # Units Approved Fees Unit Cost Updated Actuals Status 4 $2,500 $10,000 0 Progress 4 $2,500 $10,000 4 $2,500 $10,000 4 $2,500 $10,000 4 $2,500 $10,000 Early Case Assessment Phase Post-ECA – Preliminary Motions Phase Fact/Legal Investigation Initial Pleadings / Discovery Removal Paper 4 $2,500 $10,000 4 $2,500 $10,000 4 $2,500 $10,000 Initial Disclosure 4 $2,500$10,000 If there are sub-tasks, the parent task becomes read- only and the sub-tasks are summarized in the parent. Law Firm updates Actuals units and unit cost, system calculates Estimate and Actuals Totals User selects the Green, Yellow, Red icon Total# UnitsUnit CostTotal $10,000 © 2016 Copyright - doeLegal, Inc.

GSK – Legal Project Management – Project Status Project Status – Sample Matter for Project Status Page Project Start: $2,550,500 Project End:April 1, 2016Life Of Matter Current Status: Original Agreed Fee Revised Fee ABA Total Invoices Approved / Await Approval (create two columns) Project Summary: Total Phases Total Tasks $3,200,000$2,550,500$175,000 $50, Task Statuses NS 0 37 Phase Summaries: Early Case Assessment Preliminary Motions Post-Preliminary Motions MSJ Phase Pre-Trial Phase Trial Phase Appeal Phase Ongoing Settlement Negotiations $ 637,625$ 800,0001 $ 637,625$ 800,0001 $ 637,625$ 800,0001 $ 637,625$ 800,0001 $ 637,625$ 800,0001 $ 637,625$ 800,0001 $ 637,625$ 800,0001 Vendor – Bunker & Bunker © 2016 Copyright - doeLegal, Inc. If invoice detail is linked to project tasks, ABA and Invoice figures will be available for each phase and task – above is not linked to invoice detail.

GSK – Law Firm Scorecards – GSK & Law Firm Attorneys Complete Scorecards Law Firm Scorecard KNOWLEDGE – Sample Matter for Project Status Page GSK Attorney:Law Firm Attorney:Jones, ArthurShaughnessy, Michael Scorecard Template:DR & P Understanding of GSK’s Strategic and/or Business Objectives Expertise in Subject Area Overall Quality of Team/Staffing Appropriate for Project EXPERTISE Overall Written Work Product, Briefing Quality Legal Advice Continued involvement of team proposed by Firm (eg, Lead Attorneys, Associates) Discovery Quality Continued… © 2016 Copyright - doeLegal, Inc.

GSK – Law Firm Scorecards – Law Firm Scorecard Reports / Analytics Group Number of Scorecards Total Matters Evaluated GSK Managing Attorney Assessments Law Firm Self- Assessments Firms DRP4824 Firm A, Firm B, Firm C, Firm D, Firm E, Firm F, Firm G, Firm H, Firm I, Firm J, Firm K, Firm L GP8435Firm A, Firm D, Firm L, Firm M BDTT Firm C, Firm D, Firm E, Firm F, Firm G, Firm H, Firm I, Firm J, Firm K Totals Firm A, Firm B, Firm C, Firm D, Firm E, Firm F, Firm G, Firm H, Firm I, Firm J, Firm K, Firm L, Firm N, Firm P © 2016 Copyright - doeLegal, Inc.

Analyzing the Data HIGH VALUE FIRMS High Low High COST COMPETITIVENESS PERFORMANCE Firm 1 Firm 2 Firm 3 Firm 4 Firm 5 Firm 6