Beverly G. Baughman Assistant General Counsel Pfizer Inc June 7, 2007 “Budget Management in Global Mass Tort Litigation”

The 5 Step Budgeting Process: Step 1: S et the Budget Step 2: T rack Fees and Expenses Step 3: A nalyze Data Step 4: R espond to Challenges Step 5: R esults: Predictability and Savings 7

Setting the Budget: A 3-Step Process Assumptions Resources Cost What work needs to be done? Who will do the work? How much will it cost to pay for resources? 8

Tracking Litigation Fees and Expenses What to Track : Projected Costs Actual Costs Both Outside Counsel and Vendors Methods : Electronic Systems Inquiries to Counsel Monthly monitoring is key 9

Mass Tort: Litigation Tracking Tool 10

Mass Tort Budgeting: Analyze Data Identify variances Identify reasons of variances Collaboration between OC, house counsel and Legal Finance 11

Respond to Challenges Readjust Priorities/Strategy Readjust Timing of Work Readjust Workload Improved Management/Coordination Renegotiate Fee Arrangements Seek Alternative Counsel/Vendors 12

Predictability Year end budget goals and/or savings Early identification of problems (no surprises) Budgeting Results 13

Requires in-house and outside counsel commitment to: Adequate staffing / resources devoted to budget Budget tracking and analysis Monthly monitoring regime Results (cont’d) 14

The End