Beverly G. Baughman Assistant General Counsel Pfizer Inc June 7, 2007

1. “Budget Management in Global Mass Tort Litigation” Beverly G. BaughmanAssistant General CounselPfizer IncJune 7, 2007

2. The 5 Step Budgeting Process: • Step 1: Set the Budget • Step 2: Track Fees and Expenses • Step 3: Analyze Data • Step 4: Respond to Challenges • Step 5: Results: Predictability and Savings 7

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

4. 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

5. Mass Tort: Litigation Tracking Tool 10

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

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

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

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

10. The End