tag:blogger.com,1999:blog-53618382112568098392024-03-16T00:07:48.717-07:00Law Firm CFO4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.comBlogger45125tag:blogger.com,1999:blog-5361838211256809839.post-80399872394380562492013-03-04T06:26:00.001-08:002013-03-04T06:26:16.000-08:00K&L Gates' Full Frontal Financial Disclosure<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century Gothic","sans-serif"; font-size: 12pt;">Parsley Sage Rosemary & Ginsburg LLP<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Century Gothic","sans-serif";">“Always
a reasonable result for a reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century Gothic","sans-serif"; font-size: 12pt;">MEMORANDUM</span></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 12pt;"><o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century Gothic","sans-serif"; font-size: 12pt;">To:<o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Partners<o:p></o:p></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century Gothic","sans-serif"; font-size: 12pt;">From:<o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century Gothic","sans-serif"; font-size: 12pt;">Date: <o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">March
4, 2013<o:p></o:p></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century Gothic","sans-serif"; font-size: 12pt;">Re:<o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">K&L Gates’
Full Frontal Financial Disclosure<o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-tab-count: 1;"> </span><a href="http://www.klgates.com/files/News/d54f458f-1526-4f7a-8d4f-9c4ee4947365/Presentation/NewsAttachment/44d486f9-2fcd-4a0c-b279-0de1d4f1aa59/2012_Firm_Financials.pdf">A week ago, a major law firm – K&LGates (1,700+ lawyers) – chose to disclose its key financial information to thepublic via its website</a>.<span style="mso-spacerun: yes;"> </span>Since law firms
are not required to publish financial statements, this move was surprising on
at least two levels:<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">The
firm chose to disclose significantly more financial information than is
typically published in connection with <i style="mso-bidi-font-style: normal;">The
American Lawyer</i> magazine’s annual survey of the top 200 Legal Industrial
Complex firms.<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[i]</span></span></span></span></span></a><span style="mso-spacerun: yes;"> </span>K&L Gates provided 2 pages of financial
data – the typical revenue, PPP<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn2" name="_ednref2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[ii]</span></span></span></span></span></a>
and RPL<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn3" name="_ednref3" style="mso-endnote-id: edn3;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[iii]</span></span></span></span></span></a>
numbers, plus other statistics like cash, debt and capital balances as of
year-end, high/low debt balances during the year, and a good deal of narrative
akin to the management discussion section found in a corporate annual report.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">What
could be the firm’s motivation for taking this step at this time?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">K&L Gates
Motivation<o:p></o:p></span></b></div>
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-tab-count: 1;"> </span><a href="http://dealbook.nytimes.com/2013/02/27/court-approves-dewey-bankruptcy-plan-officially-dissolving-firm/">Chairman Peter Kalis said the firm wasmotivated to improve the public image of the profession in light of the “Dewey debacle”</a> – where management at Dewy & LeBoeuf misled partners, bankers and
clients (via the AmLaw rankings)<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn4" name="_ednref4" style="mso-endnote-id: edn4;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[iv]</span></span></span></span></span></a>
about the firm’s financial stability before filing for bankruptcy.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-tab-count: 1;"> </span>Notwithstanding this noble and
altruistic motive, K&L Gates has also positioned themselves very nicely
vis-à-vis other firms in the never-ending quest to always pick up the best and
brightest laterals to continually improve their franchise.<span style="mso-spacerun: yes;"> </span>In one bold step, K&L Gates sent the following message:<o:p></o:p></span></div>
<ul>
<li><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Our
internal financial disclosures and external communications (e.g., to <i style="mso-bidi-font-style: normal;">The American Lawyer</i>) are the same; we
don’t manipulate our revenue figure or our equity partner headcount.<span style="mso-spacerun: yes;"> </span></span></li>
<li><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Not only do we have no debt at year-end, we didn't borrow as much as a penny against the line of credit during 2012 and 2011.<span style="mso-spacerun: yes;"> </span></span></li>
<li><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">We’re
"transparent" with our partners and our clients about the firm's financial stability.</span></li>
<li><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Can
your current firm or other potential lateral firm say the same thing?</span></li>
</ul>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Reality Check/Lateral
Partners<o:p></o:p></span></b></div>
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-tab-count: 1;"> </span>Can every firm be trusted to refrain
from manipulating the numbers in the press release the same way they did for
the AmLaw rankings?<span style="mso-spacerun: yes;"> </span>There will
undoubtedly be temptations, but the more statistics disclosed the less likely
it becomes to alter the important numbers without leaving an obvious audit
trail.<span style="mso-spacerun: yes;"> </span>Moreover, if other firms do not
reconcile their internal and external reporting, they can count on their
rank-and-file partners to call them out about it.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-tab-count: 1;"> </span>Nevertheless, laterals must always be
weary of whatever financial data is provided by prospective new firms.<span style="mso-spacerun: yes;"> </span>As a financial person, I would like K&L
Gates’ disclosure to be expanded to include, among other things, information
like the quality of the firm’s inventory (i.e., accounts receivable and unbilled
fees) and the number of highly compensated partners with long-term guaranteed
contracts (another problem at Dewey).<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-tab-count: 1;"> </span>If you are a major rainmaker
contemplating a move, use your clout to examine more financial data before
taking the plunge to join a new firm.<span style="mso-spacerun: yes;">
</span>For the sake of the capital you will invest in the new firm, for the
sake of continuity of service to your clients, and for your own mental health,
perform significant due diligence before committing to a new firm.<span style="mso-spacerun: yes;"> </span>There are <b style="mso-bidi-font-weight: normal;">other financial reports</b> you should request and review:<o:p></o:p></span></div>
<ul>
<li><div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo3; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Citibank
and Wells Fargo<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn5" name="_ednref5" style="mso-endnote-id: edn5;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[v]</span></span></span></span></span></a>
provide participating law firms with detailed financial analysis – comparing the firm with
peer firms – as part of their quarterly industry financial reviews.<span style="mso-spacerun: yes;"> </span>Request copies going back 2 years, read them
and have a sit-down with the firm’s CFO to discuss.</span></div>
</li>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo3; text-indent: -0.25in;">
</div>
<li><div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo3; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">P</span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">ricewaterhouseCoopers
publishes a similar report which compares firms by geographic area, size and
other demographics.</span></div>
</li>
</ul>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">These
reports provide significantly more data than that disclosed by K&L
Gates last week.<span style="mso-spacerun: yes;"> </span>Should any prospective
new firm not wish to share this data with you, I would be afraid -- very afraid.<o:p></o:p></span></div>
<hr align="left" size="1" width="33%" />
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref1" name="_edn1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[i]</span></span></span></span></span></a><span style="font-family: "Verdana","sans-serif"; font-size: 11pt;"> Don’t get me
started about the financial fallacy which is the AmLaw rankings.<span style="mso-spacerun: yes;"> </span>Simply put – firms lie.<span style="mso-spacerun: yes;"> </span>Not all of them, but enough to call into
question the entire process.<span style="mso-spacerun: yes;"> </span><a href="http://amlawdaily.typepad.com/amlawdaily/2012/04/dewey-2010-2011-financials-revised.html">Exhibit 1is Dewey & LeBoeuf who overstated their revenue by more than $150 millionfor each of calendar year 2010 and 2011</a>.<span style="mso-spacerun: yes;">
</span>The magazine took a credibility hit on that one, but has never
adequately addressed the systemic problem illustrated by Howrey, Thacher Proffitt,
Thelen, Heller Ehrman and others who kept posting good numbers right up until
the time they ceased to exist.<span style="mso-spacerun: yes;"> </span></span><br />
<div style="mso-element: endnote-list;">
<div id="edn2" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref2" name="_edn2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[ii]</span></span></span></span></span></a><span style="font-family: "Verdana","sans-serif"; font-size: 11pt;"> PPP is profits per
equity partner.</span></div>
</div>
<div id="edn3" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref3" name="_edn3" style="mso-endnote-id: edn3;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[iii]</span></span></span></span></span></a><span style="font-family: "Verdana","sans-serif"; font-size: 11pt;"> RPL is revenue per
lawyer.</span></div>
</div>
<div id="edn4" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref4" name="_edn4" style="mso-endnote-id: edn4;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[iv]</span></span></span></span></span></a><span style="font-family: "Verdana","sans-serif"; font-size: 11pt;"> See Endnote i.</span></div>
</div>
<div id="edn5" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref5" name="_edn5" style="mso-endnote-id: edn5;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-bidi;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[v]</span></span></span></span></span></a><span style="font-family: "Verdana","sans-serif"; font-size: 11pt;"> Buy a banker from
the Legal Industry Groups at either Citibank or Wells Fargo a cocktail and he/she
will tell you the numbers they receive in connection with their “privately
published” surveys differ significantly from the very public numbers appearing
in the AmLaw rankings.</span></div>
</div>
</div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com45tag:blogger.com,1999:blog-5361838211256809839.post-59014364805888132682013-03-04T06:20:00.000-08:002013-03-04T06:20:59.308-08:00Top 10 Reasons to Elect Me the Next Pope<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century Gothic","sans-serif"; font-size: 12pt;">Parsley Sage Rosemary & Ginsburg LLP<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Century Gothic","sans-serif";">“Always
a reasonable result for a reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century Gothic","sans-serif"; font-size: 12pt;">MEMORANDUM</span></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 12pt;"><o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century Gothic","sans-serif"; font-size: 12pt;">To:<o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Top
10 File<o:p></o:p></span></div>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century Gothic","sans-serif"; font-size: 12pt;">From:<o:p></o:p></span></b></div>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century Gothic","sans-serif"; font-size: 12pt;">Date: <o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">March
3, 2013<o:p></o:p></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Century Gothic","sans-serif"; font-size: 12pt;">Re:<o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><strong>Top
10 Reasons to Elect Me the Next Pope<o:p></o:p></strong></span></div>
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<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">10.
Both Bill Maher and Karl Rove have contributed to my Sistine-or-Bust Super Pope
PAC.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>9.<span style="mso-spacerun: yes;"> </span>I
was once a Cardinal – Little League Keokuk County Bank Cardinals.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>8.<span style="mso-spacerun: yes;"> </span>If
elected, I will use my powers to bring peace between Kris Humphries and Kim
Kardasian.<span style="mso-spacerun: yes;"> </span></span><br />
<span style="font-family: Verdana;"><span style="font-family: Times New Roman;">
</span></span><br />
<span style="font-family: Verdana;"></span><br />
<span style="font-family: Verdana;"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>7.<span style="mso-spacerun: yes;"> </span>My
new diet and exercise regime will count as a first step toward eventual
beatification.</span><br />
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><o:p></o:p></span> </div>
<span style="font-family: Times New Roman;">
</span>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>6.<span style="mso-spacerun: yes;"> </span>I’m
seldom wrong, which is modern day version of infallibility.</span><br />
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><o:p></o:p></span> </div>
<span style="font-family: Times New Roman;">
</span>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>5.<span style="mso-spacerun: yes;"> </span>I’ve
never violated the 5<sup>th</sup> Commandment.</span><br />
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><o:p></o:p></span> </div>
<span style="font-family: Times New Roman;">
</span>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>4.<span style="mso-spacerun: yes;"> </span>I
will replace all the Cardinals with Ravens – because purple is a better color
and, heck, they won the Super Bowl.</span><br />
</div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>3.<span style="mso-spacerun: yes;"> </span>I’ll
write really cool encyclicals like <i style="mso-bidi-font-style: normal;">“Quomodosancta
trinitas similis est baseball geminus-fabula compositum.”</i></span><a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><i style="mso-bidi-font-style: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><span style="color: teal;">[i]</span></span></b></span></span></span></i></span></a></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"></span></span><br />
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"> 2.<span style="mso-spacerun: yes;"> </span>As
an homage to traditionalists, I’ll take the name Pope John Paul John-Paul
John-Paul Benedict I.</span><a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn2" name="_ednref2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><span style="color: teal;">[ii]</span></span></span></span></span></span></a><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span></span></div>
<div style="mso-element: endnote-list;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgx1h1coZa_6G7wLktdgoPJMUYHib_jUnA6lJjrrKBRaa4tjABdgh6rHOe1ahp7iTzuzdqG0jN-M4FHGwujn3rwx0BNYlMR71WfCbS_A-pDHTcJLmX0mdstdB-UeI1fcl6RASs2A6eMQOE/s1600/mitre-mike.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgx1h1coZa_6G7wLktdgoPJMUYHib_jUnA6lJjrrKBRaa4tjABdgh6rHOe1ahp7iTzuzdqG0jN-M4FHGwujn3rwx0BNYlMR71WfCbS_A-pDHTcJLmX0mdstdB-UeI1fcl6RASs2A6eMQOE/s200/mitre-mike.jpg" width="89" /></a><span style="font-family: Times New Roman;">
</span><br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 22.5pt; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>I look good wearing a miter ------------------------></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: Times New Roman;"></span><br />
<span style="font-family: Times New Roman;"></span><br />
<span style="font-family: Times New Roman;"></span><br />
<span style="font-family: Times New Roman;"></span><br />
<span style="font-family: Times New Roman;"><hr align="left" size="1" width="33%" />
</span><br />
<div id="edn1" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref1" name="_edn1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"><span style="color: teal;">[i]</span></span></span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Verdana","sans-serif"; font-size: 11pt;">Roughly
translated: “How the Holy Trinity works together like a really good double-play combination
in baseball” (e.g., Tinker-to-Evers-to-Chance).<span style="mso-spacerun: yes;">
</span></span></div>
<span style="font-family: Times New Roman;">
</span><a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref2" name="_edn2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"><span style="color: teal;">[ii]</span></span></span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Verdana","sans-serif"; font-size: 11pt;">Stupid joke:<span style="mso-spacerun: yes;"> </span>Waiter:<span style="mso-spacerun: yes;">
</span>“What would the Pope Emeritus like for breakfast today?”<span style="mso-spacerun: yes;"> </span>Pope Emeritus: <span style="mso-spacerun: yes;"> </span>“Ex-Benedict will have Eggs Benedict.”<o:p></o:p></span></div>
<span style="font-family: Times New Roman;"></span><br /></div>
</span><br />
<div style="mso-element: endnote-list;">
</div>
</div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com182tag:blogger.com,1999:blog-5361838211256809839.post-90694823258802338252013-02-22T13:09:00.000-08:002013-02-22T13:09:41.751-08:00Financial Data with Destiny<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Dotum","sans-serif";">Parsley
Sage Rosemary & Ginsburg LLP<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Dotum","sans-serif";">“Always
a reasonable result for a reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Dotum","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Dotum","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Managing Partners and
Administrators<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Dotum","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Mike Marget<o:p></o:p></span></div>
</td>
</tr>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Dotum","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">February 22, 2013<o:p></o:p></span></div>
</td>
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<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Dotum","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Financial Data with Destiny<o:p></o:p></span></b></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-tab-count: 1;"> </span>Managing a law practice has never been
tougher.<span style="mso-spacerun: yes;"> </span>Everybody is looking for that
silver bullet to restore profitability despite waning demand for legal
services.<span style="mso-spacerun: yes;"> </span>Whatever measures your firm
adopts to improve the bottom line, continuous access to actionable financial
data has never been more important.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-indent: 0.5in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Since the onset of the Great Recession,
large law firms have been relying upon their internal accounting systems as a
strategic resource to make better daily business decisions.<span style="mso-spacerun: yes;"> </span>Real-time access to firm financial data has
become <i style="mso-bidi-font-style: normal;">de rigueur</i>, enabling both
leadership and individual lawyers to identify trends at a macro level, and then
drill down through the data to understand cause and effect by client, matter,
fee-earner, practice group, area of law and other relevant metrics.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-tab-count: 1;"> </span>The sophisticated accounting software
utilized by the largest firms is designed with a single purpose in mind – to
make every lawyer a smarter financial manager.<span style="mso-spacerun: yes;">
</span>Data is easily accessible online and provides a clear and accurate view into
every important financial driver of profit and cash flow.<span style="mso-spacerun: yes;"> </span>Depending upon the “access rights” granted
specific individuals:<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Billing attorneys
query the status of individual clients and matters – e.g., last invoice date
and amount; total AR currently outstanding; date of last payment; and balance
held as unapplied retainer or in trust accounts.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Timekeepers may
consult a calendar representation of hours reported with the ability to edit
and spell-check the narrative language.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">3.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Billing attorneys
review aged accounts receivable and unbilled work-in-process reports on demand.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">4.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Firm leaders
analyze a myriad of information regarding clients, individual lawyers, practice
groups and the firm as a whole.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">5.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Key performance
indicators – billable hours; billable hour value; fee billing; fee collections;
effective hourly rates by timekeeper and group classification; utilization and
realization; new clients and new maters opened – as compared to budget or targets
– may be “sliced-and-diced” in various was to both to analyze current
performance and project future results.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-indent: 0.5in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Financially-savvy firms use their
accounting systems to recognize problems and monitor progress toward
improvement.<span style="mso-spacerun: yes;"> </span>For example, assume a
“commodity” practice area where billing realization is below firm average or
budgeted amount.<span style="mso-spacerun: yes;"> </span>The low realization
might be the result of staffing errors – too many hours worked by timekeepers
with higher billing rates necessitating fee reductions in the billing
process.<span style="mso-spacerun: yes;"> </span>A possible solution might be to
reallocate workloads so timekeepers with lower rates work on these commodity
matters, while higher-rate individuals are assigned to other client work where
they can realize their full rates.<span style="mso-spacerun: yes;"> </span>Every
law firm requires an accounting system capable of providing this type of
insight into their financial operations.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-indent: 0.5in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Unfortunately, not all law firm accounting
software is created equal.<span style="mso-spacerun: yes;"> </span>Many smaller
firms are constrained by systems incapable of transcending rudimentary
time-and-billing transaction processing.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-indent: 0.5in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Fortunately, there are options for small
and midsize firms to obtain sophisticated law firm accounting systems which
need not involve an expensive capital outlay for the software and associated
hardware purchases and maintenance costs.<span style="mso-spacerun: yes;">
</span>One possibility is Software-as-a-Service (SaaS) where the software
resides in a hosted, Cloud-based environment and “rented” by the law firm
rather than purchasing it outright.<span style="mso-spacerun: yes;">
</span>Another route involves outsourcing some, or all, of the firm’s
bookkeeping and billing procedures to a competent third-party provider who will
supply the sophisticated software as part of an overall services package.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-indent: 0.5in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Whether it is acquired by
purchase/installation in-house, via SaaS, or through outsourcing, sophisticated
accounting software can be transformative for the firm by providing greater
awareness of the financial drivers of profitability and enabling better
financial decision making.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com25tag:blogger.com,1999:blog-5361838211256809839.post-49672877028667101932013-02-22T13:08:00.000-08:002013-02-22T13:08:45.220-08:00My Top 10 Reactions to the White House Petition Seeking to Ban My Top 10 Lists<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Dotum","sans-serif";">Parsley
Sage Rosemary & Ginsburg LLP<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Dotum","sans-serif";">“Always
a reasonable result for a reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Dotum","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Dotum","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Top 10 List File<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Dotum","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Mike Marget<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Dotum","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">February 22, 2013<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Dotum","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">My Top 10 Reactions to the White House Petition Seeking to
Ban My Top 10 Lists</span></b><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">10.<span style="mso-tab-count: 1;"> </span>This is so not going to look good on my
Linkedin profile.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>9.<span style="mso-tab-count: 1;"> </span>Some
people get Oscar nominations; I get a lousy petition.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>8.<span style="mso-tab-count: 1;"> </span>How
can people be so hateful at a time when Kim Kardashian is so happy?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>7.<span style="mso-tab-count: 1;"> </span>Could
it have anything to do with all the Star Trek references?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>6.<span style="mso-tab-count: 1;"> </span>I
bet Leno’s behind this.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>5. <span style="mso-tab-count: 1;"> </span>It
was just a matter of time.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>4.<span style="mso-tab-count: 1;"> </span>People
actually read this junk?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>3.<span style="mso-tab-count: 1;"> </span>Et
tu, Mom?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>2.<span style="mso-tab-count: 1;"> </span>What
would Piers Morgan do?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>1.<span style="mso-tab-count: 1;"> </span>Payback
– from now on Top 20 Lists!</span></div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com4tag:blogger.com,1999:blog-5361838211256809839.post-51716970994554566422013-01-09T06:10:00.000-08:002013-01-09T06:10:23.171-08:00Lower Realization -- Sometimes an Acceptable Tradeoff<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Parsley Sage Rosemary & Ginsburg LLP<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Georgia","serif"; font-size: 10pt;">“Always a reasonable result for a reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">MEMORANDUM</span></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";"><o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Managing Partners; Practice Group
Leaders<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Mike Marget<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">January 9, 2013<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Lower Realization – Sometimes an Acceptable
Tradeoff </span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Since
the onset of the recession, clients have gained the advantage in fee
negotiations.<span style="mso-spacerun: yes;"> </span>Yet Legal Industrial
Complex firms still managed to increase their hourly rates in 2012.<span style="mso-spacerun: yes;"> </span><a href="http://www.law.com/jsp/nlj/PubArticleNLJ.jsp?id=1202581351631&The_2012_Law_Firm_Billing_Survey">According to a survey</a> published last month by
<i style="mso-bidi-font-style: normal;">The National Law Journal</i>, median
partner rates jumped 4.5% to $517 an hour and median associate rates increased
3.5% to $323.<span style="mso-spacerun: yes;"> </span>The survey covered 55
firms ranging in size from 128 to 3,000+ lawyers.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">While
these rates may not resonate with your particular practice, it is a prudent
business exercise to review pricing issues from time-to-time.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Over
the years I’ve had “discussions” with partners and practice group leaders who
prided themselves on high realization.<span style="mso-spacerun: yes;">
</span>They seldom needed to write-down time, collecting 98%-99% as compared to
their standard hourly rates.<span style="mso-spacerun: yes;"> </span>High
realization percentages are wonderful when you are absolutely certain those
rates are at the ceiling as to what the market will bear.<span style="mso-spacerun: yes;"> </span>But such certainty, you should be bold and
sacrifice a few realization percentage points in a quest for higher aggregate
fees.<span style="mso-spacerun: yes;"> </span>Let me demonstrate how this is
important.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><u>Assume</u>
you work 1,800 billable hours a year; have a $250 standard hourly rate; and
enjoy 98% realization.<span style="mso-spacerun: yes;"> </span>You will collect
$441,000 on your work. [1,800 x $250 x 98% = $441,000]<span style="mso-spacerun: yes;"> </span>Digging into the details of your practice
reveals 900 of those hours are worked and collected at your standard $250
hourly rate, while the balance is for more rate-sensitive clients who are
charged $240.<span style="mso-spacerun: yes;"> </span>(This is illustrated in <b style="mso-bidi-font-weight: normal;">Example </b>1.)<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Then
<u>further assume</u>, you decide to test drive a 4% rate increase on your standard
rate, pushing it to $260 an hour.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">What is the worst
that could happen?</span></b><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>Your rate-sensitive clients balk at the
increase, so those hours remain at $240.<span style="mso-spacerun: yes;">
</span>Theoretically, you could lose the other 900 hours if the new $260 rate
is too high.<span style="mso-spacerun: yes;"> </span>But in the real world, you
are a lawyer and everything is negotiable.<span style="mso-spacerun: yes;">
</span>If necessary, you’ll discount the new $260 standard rate with the pitch,
“My standard rate is $260, but for you … $250.”<span style="mso-spacerun: yes;">
</span>As illustrated in <b style="mso-bidi-font-weight: normal;">Example 2</b>,
you will still generate $441,000 in revenue even though your realization has
dropped to 94.2%.<span style="mso-spacerun: yes;"> </span>In essence, you enjoy
the same revenue stream despite a lower realization statistic.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">On
the other hand, if you manage just 1 additional hour at a rate higher than
$250, you are ahead.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">What is the best
case scenario?</span></b><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>Assume you get the 4% increase on all your
time currently billed at $250 an hour.<span style="mso-spacerun: yes;">
</span>This is illustrated in <b style="mso-bidi-font-weight: normal;">Example 3</b>.<span style="mso-spacerun: yes;"> </span>The additional $10 an hour jumps your total
revenue up to $450,000.<span style="mso-spacerun: yes;"> </span>However, due to
the $20 an hour negative spread between your new standard rate of $260 and the
$240-an-hour cap on half your time, your realization drops to 96.2%.<span style="mso-spacerun: yes;"> </span>Again, you achieve higher revenue despite the
lower realization rate.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">There is also an
alternative almost-best case scenario.</span></b><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;">
</span>Assume you cannot replace all 900 hours at the new higher standard
rate?<span style="mso-spacerun: yes;"> </span>Instead of 900 billable hours at
$260 an hour, you produce only 865.<span style="mso-spacerun: yes;"> </span>No
worries, I’d still call this a win.<span style="mso-spacerun: yes;"> </span><b style="mso-bidi-font-weight: normal;">See Example 4.</b><span style="mso-spacerun: yes;"> </span>With these numbers you are still generating
the same $441,000 of revenue, but need to work only 1,765 billable hours in the
process.<span style="mso-spacerun: yes;"> </span>Sure, your realization drops to
96.1%, but the lower number of billable hours provides you 35 additional hours
without any revenue decline.<span style="mso-spacerun: yes;"> </span>That’s 35
free hours to devote to business development efforts which will eventually
generate new work and create incremental revenue.<o:p></o:p></span></div>
<br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
</td>
<td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Example 1<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Example 2<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Example 3<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"> Example 4<o:p></o:p></span></b></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Standard hourly rate<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$250<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$260<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$260<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$260<o:p></o:p></span></b></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$240/hr clients<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 3;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Billable hours<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">900<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">900<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">900<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">900<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 4;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Effective hourly rate<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$240<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$240<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$240<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$240<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 5;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Fee revenue generated<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$ 216,000<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$ 216,000<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$ 216,000<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$ 216,000<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 6;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Other clients<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 7;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Billable hours<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">900<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">900<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">900<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">865<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 8;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Effective hourly rate<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$250<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$250<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$260<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$260<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 9;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Fee revenue generated<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$ 225,000<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$ 225,000<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$ 234,000<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$ 225,000<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 10;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Result <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 11;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Billable hours<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">1800<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">1800<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">1800<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">1765<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 12;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Effective hourly rate<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$245<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$245<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$250<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$ 250<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 13;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Fee revenue generated<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$ 441,000<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$ 441,000<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$ 450,000<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">$ 441,000<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 14; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 171.9pt;" valign="top" width="229"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Realization rate<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">98.0%<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">94.2%<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">96.2%<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">96.1%<o:p></o:p></span></b></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Now,
I’m not about to paraphrase Dick Cheney and say “realization rates don’t
matter.”<span style="mso-spacerun: yes;"> </span>Rather, the point is
realization rates, like deficits, need to be evaluated in a larger economic
context.<span style="mso-spacerun: yes;"> </span>Higher rates may mean higher
write-offs and lower billable hours – but what is important is the bottom
line.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Maybe
a higher standard rate for new clients simply becomes a starting point for fee
discussion in 2013.<span style="mso-spacerun: yes;"> </span>After all, a 10%
discount from $260 an hour is preferable to discounting from $250.<span style="mso-spacerun: yes;"> </span>Like the aphorism says, “If you don’t ask,
you don’t get.”<span style="mso-spacerun: yes;"> </span>Sometimes you do
get!<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com4tag:blogger.com,1999:blog-5361838211256809839.post-44834695535422000992013-01-09T06:09:00.000-08:002013-01-09T06:09:26.216-08:00Time to Evaluate Billing Rates? <div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Parsley Sage Rosemary & Ginsburg LLP<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Georgia","serif"; font-size: 10pt;">“Always a reasonable result for a reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Managing
Partners; Practice Group Leaders<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">January
9, 2013<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Time
to Evaluate Billing Rates?<span style="mso-spacerun: yes;"> </span>What to
Consider</span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-tab-count: 1;"> </span>Although this may have no application to
your particular practice, Big Law raised their hourly rates in 2012 despite all
the chatter about clients having the upper-hand in fee negotiations.<span style="mso-spacerun: yes;"> </span>According to 55 Legal Industrial Complex
firms surveyed by <em><a href="http://www.law.com/jsp/nlj/PubArticleNLJ.jsp?id=1202581351631&The_2012_Law_Firm_Billing_Survey&slreturn=20130008180239">The National Law Journal</a></em>,
the median partner hourly rate increased by 4.5% to $517 and the median
associate rate jumped 3.5% to $323.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-tab-count: 1;"> </span>If your firm has been thinking about
tweaking billing rates – whether across-the-board, for specific individuals,
applicable to a specific practice area or just for new clients or new matters
opened from some date forward – here are a few things you might want to
consider:<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Can some of the partner rates be increased to narrow the
gap between them and the partner with the highest hourly rate?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Can
individual associate rates be increased to reflect increased seniority,
experience and efficiencies?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">3.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Is
the gap between the lowest partner rate and highest associate rate appropriate
for what each individual brings to the table?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">4.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Are
paralegal rates generating sufficient “profit” for the firm (e.g., there is an
old adage that paralegal productivity should be 1/3 comp and benefits; 1/3 to
cover overhead; and 1/3 contributed to partner profits)?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">5.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Will
“the market” permit increases for lesser-productive timekeepers to narrow the
pay-versus-performance gaps?<o:p></o:p></span></div>
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><o:p> </o:p></span><br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-indent: 0.5in;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Increasing rates is always a sensitive
matter, but remember:<span style="mso-spacerun: yes;"> </span><b style="mso-bidi-font-weight: normal;">You can always negotiate downward and a 10%
discount from $260 an hour is preferable to a 10% haircut from $250.<o:p></o:p></b></span></div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com2tag:blogger.com,1999:blog-5361838211256809839.post-40880094103157383342013-01-08T14:52:00.001-08:002013-01-08T14:52:20.814-08:001099 Reporting Decision Flowchart<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Parsley Sage Rosemary & Ginsburg LLP<o:p></o:p></span></b></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: "Georgia","serif"; font-size: 10pt;">Always a reasonable
result for a reasonable fee, always.<o:p></o:p></span></i></b></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">TO:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 401.4pt;" valign="top" width="535"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><o:p><strong> </strong>1099 Accountants Everywhere</o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">FROM:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 401.4pt;" valign="top" width="535"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><o:p><strong> </strong>Mike Marget</o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">DATE:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 401.4pt;" valign="top" width="535"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><o:p><strong> </strong>January 8, 2013</o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 77.4pt;" valign="top" width="103"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">SUBJECT:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 401.4pt;" valign="top" width="535"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><o:p><strong> </strong>1099 Decision Flowchart</o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Among
my annual New Year’s Resolutions is a pledge to keep current with
respect to 1099 reporting requirements to avoid extra work at year-end.<span style="mso-spacerun: yes;"> </span>Then, by the end of January I have both quit
the gym and stopped thinking about Forms W-9 and 1099, only to regret neglecting
both as January approaches.<span style="mso-spacerun: yes;"> </span>Someday I
will keep those resolutions.<span style="mso-spacerun: yes;"> </span>My physical
and mental health will be much the better for it.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Internal Revenue
Code Section 6041(a)<o:p></o:p></span></b></div>
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Pursuant
to I.R.C. §6041(a), each year:<o:p></o:p></span><br />
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">law
firms because they are engaged in a “trade or practice”<o:p></o:p></span><br />
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">must
report to the IRS<o:p></o:p></span><br />
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">payments
for rent, contractor services, interest and a whole lot more unless
specifically exempted pursuant to some other I.R.C. section<o:p></o:p></span><br />
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">made
in amounts of $600 or more ($10 or more in the case of interest or royalty
payments) made during the preceding calendar year<o:p></o:p></span><br />
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">setting
forth the amount paid and name, address and tax id number of the recipient.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">The
IRS provides Forms 1099-MISC and 1099-INT for these purposes.<span style="mso-spacerun: yes;"> </span>It also has created Form W-9 to formally
request the name, address and tax id information from people and entities we
pay.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">The
compliance deadlines are:<o:p></o:p></span></div>
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">January
31 to provide the Forms 1099 to payee/recipients; and<o:p></o:p></span><br />
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">February
28 to provide the Forms to the IRS or April 1 if such IRS filing is to be made
electronically.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">The
1099 reporting rules are many and nuanced.<span style="mso-spacerun: yes;">
</span>The best explanations of the rules as to which payees and payments must
be reported (and those which may be omitted) are found at <a href="http://www.irs.gov/"><span style="color: blue;">www.irs.gov</span></a>.<span style="mso-spacerun: yes;">
</span>The <a href="http://www.irs.gov/pub/irs-pdf/i1099msc.pdf">2013 Instructions for Form 1099-MISC</a> and <a href="http://www.irs.gov/pub/irs-pdf/i1099gi.pdf">General Instructions forCertain Information Returns</a> are particularly helpful.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">Stiff
penalties may apply for non-compliance with the 1099 reporting rules.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">To
help me remember the rules, a few years ago I developed a flowchart, supported
by some explanatory Notes.<span style="mso-spacerun: yes;"> </span>Maybe this
information will be useful to you.</span></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
</div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><strong>Chart I of II (the flowchart)</strong></span><br />
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGJY8VKKFM5pqLY5e_fJbHDuF0JZrdoOiS6PIJboxsPZAAfnrgIJZCi_HN_lKY_Y39r0OLqjT-6R03Tz4YsL7vEe_XvEla7Hzqa9SWgszF0x5YrJ0qQryB3z5a-PedW1O8nPuVvgM-qns/s1600/4l-flow-(1099-reporting)-blog-01-test.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGJY8VKKFM5pqLY5e_fJbHDuF0JZrdoOiS6PIJboxsPZAAfnrgIJZCi_HN_lKY_Y39r0OLqjT-6R03Tz4YsL7vEe_XvEla7Hzqa9SWgszF0x5YrJ0qQryB3z5a-PedW1O8nPuVvgM-qns/s1600/4l-flow-(1099-reporting)-blog-01-test.png" /></a><br />
<span class="Apple-style-span" style="font-family: Verdana, sans-serif;"><b><br /></b></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Note 1. </span></b><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">The reporting
requirements apply to all bank accounts – firm money and trust money. The fact
that a third party’s tax id number might be assigned to the bank account (e.g.,
an IOLTA-type trust account) has no bearing on the situation. If the bank
account is controlled by the law firm, include those transactions in the 1099
review.<o:p></o:p></span></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Note 2. </span></b><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Interest reporting
applies to amounts earned in trust accounts which are credited to the client’s
trust account balance. Interest earned on IOLTA-type accounts paid to the State
Bar or similar organization is not reportable. Interest payments to a W-2 employee
are reportable on Form 1099-INT. So-called “interest” earned by a K-1 partner
or member are reported on Schedule K-1.<o:p></o:p></span><br />
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Note 3. </span></b><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">For 1099 reporting
purposes, the term “rent” encompasses office lease payments (including real
estate tax and operating costs), rental equipment, meeting rooms, banquet halls
and booth space; but not space in a storage facility.<o:p></o:p></span><br />
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Note 4. </span></b><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">The term “services” includes both (A) payments for work
effort or labor and (B) products, materials and/or parts supplied in connection
with the work effort (unless such costs are separately substantiated <span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">substantiated by receipts).<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[i]</span></span></span></span></a><o:p></o:p></span></span><br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 6pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Times New Roman;">
</span></span><br />
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"></span><br />
<div style="mso-element: endnote-list;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><strong>Chart II of II -- Medical/Legal Service Providers</strong></span></div>
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">
</span><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgDJnMiqX9757z_Uk1J3jWpXm86RxxM1klrX4lRQXWPCzR-170xZ0QEeHfR5aN_csgrrmbMN5C2KSXkagOign9TRx0KVTj7jwWx4dPPyFNapQBtiAn_ASlOSq0pdh0kNfzFNZCo5b-DJA/s1600/4l-flow-(special-rules)-blog-test.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgDJnMiqX9757z_Uk1J3jWpXm86RxxM1klrX4lRQXWPCzR-170xZ0QEeHfR5aN_csgrrmbMN5C2KSXkagOign9TRx0KVTj7jwWx4dPPyFNapQBtiAn_ASlOSq0pdh0kNfzFNZCo5b-DJA/s1600/4l-flow-(special-rules)-blog-test.png" /></a></div>
</div>
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"></span><br />
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Times New Roman;">
</span></span><br />
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Times New Roman;"></span></span><br />
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"><span style="font-family: Times New Roman;"><hr align="left" size="1" width="33%" />
</span><div id="edn1" style="mso-element: endnote;">
<span style="font-family: Times New Roman;">
</span><a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref1" name="_edn1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Times New Roman","serif"; font-size: 12pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[i]</span></span></span></span></a><span style="font-family: Times New Roman;"> </span><span style="font-family: "Verdana","sans-serif";">The definition of “services” and the
aggregation of payments for products, materials and parts (if necessary) are
challenging in the 1099 reporting context. The term "services"
includes such things as:<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;"><tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0; mso-yfti-lastrow: yes;"><td style="background-color: transparent; border: 0px rgb(0, 0, 0); padding: 0in 5.4pt; width: 239.4pt;" valign="top" width="319"><span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";">Independent Contractors<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";">Broker’s fees (insurance;
real estate)<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";">Consulting
services/expert witness<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";">Food, meals, catering
performed on site or severed by payee staff<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";">Placement or recruiting
fees<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";">Professional services<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";">Repairs and maintenance<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";">Transportation costs<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";">Registration fees for
seminars, conferences, CLE<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span></td><td style="background-color: transparent; border: 0px rgb(0, 0, 0); padding: 0in 5.4pt; width: 239.4pt;" valign="top" width="319"><span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";">Advertising or marketing
materials when design services or other work is involved<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";">Honorarium of speaker’s
fee, but not transportation/lodging costs if original receipts provided<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";">Office supplies and related
where the fir’s logo or other customization occurs<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";">Retirement payments to
former partners or employees (not a QRP)<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span></td></tr>
</tbody></table>
<span style="font-family: Times New Roman;">
</span><span style="font-family: "Verdana","sans-serif";"><o:p><span style="font-family: Times New Roman;"> </span></o:p></span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Example 1. </span></b><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Firm purchases
generic office supplies from vendor not otherwise exempt from 1099 reporting
requirements – no 1099 reporting required since office supplies had no work or
labor component.<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Example 2. </span></b><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Firm purchases office
supplies from same vendor to which firm’s name or logo is affixed – since labor
is involved, purchases from vendor require 1099 reporting.<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Example 3. </span></b><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Firm’s outside IT
consultant provides services and parts/supplies. 1099 reporting is required for
the paid services and for the paid parts/supplies unless parts/supplies
separately substantiated by original receipts.<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Example 4.</span></b><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";"> A scholarship is provided by firm. No
1099 reporting required provided no labor or work is provided in exchange for
the scholarship.</span></div>
</span><br />
<div id="edn1" style="mso-element: endnote;">
<br /></div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com15tag:blogger.com,1999:blog-5361838211256809839.post-80537539103024654962013-01-08T14:52:00.000-08:002013-01-08T14:52:10.891-08:00Top 10 Non-theological Questions about the Afterlife<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Parsley Sage Rosemary & Ginsburg LLP<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Georgia","serif"; font-size: 10pt;">“Always a reasonable result for a reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">MEMORANDUM</span></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";"><o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Top 10 File<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Mike Marget<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">January 9, 2013<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Top 10 Non-theological Questions
about the Afterlife<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">10.
– Does eternity last longer if calculated in dog years?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>9. – How is it possible for my French-speaking
ancestors to communicate with me through an English language Ouija board?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>8. – If my home mortgage is underwater when I
die, will it affect my credit rating in the hereafter?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>7. – Does the existence of the U.S. Congress
suggest life continues even in the absence of higher level brain activity?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>6. – Have celestial real estate values
skyrocketed since people started storing everything in the clouds?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>5. – If my spouse and I die in an automobile
accident, can we travel toward the light using the 2+ HOV lane?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>4. – If I see dead relatives with their hands
out, is it a welcome or are they about to hit me up for money?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>3. – In the afterlife, how much importance
will attach to billable hours?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>2. – If you are an accountant in this
lifetime, must you be accountant in the next world, too?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>1. – Should we expect over-crowding once those
Obamacare death panels become operational?<o:p></o:p></span></div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com1tag:blogger.com,1999:blog-5361838211256809839.post-17146362109275920602013-01-08T14:51:00.001-08:002013-01-08T14:51:52.906-08:00Top 10 Intel Gain from Accountant at Gitmo<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Parsley Sage Rosemary & Ginsburg LLP<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Georgia","serif"; font-size: 10pt;">“Always a reasonable result for a reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">MEMORANDUM<o:p></o:p></span></b></div>
<br />
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">To:<o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Top 10 File<o:p></o:p></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">From:<o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Mike Marget<o:p></o:p></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Date: <o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">January 9, 2013<o:p></o:p></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";">Re:<o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-fareast-font-family: "Times New Roman";"><a href="http://www.miamiherald.com/2012/07/10/2890308/convicted-al-qaida-operative-released.html">Top 10 Intel Gain from the Terrorist-Accountant at Gitmo</a></span></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;">10.
– When traveling , terrorists are reimbursed 55.5 cents per mile if they use
their own camels.<o:p></o:p></span></div>
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<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>9. – He once declared a fatwa against H&R
Block.<o:p></o:p></span></div>
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<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>8. – Most common Taliban disguise -- wearing a
fake beard over their actual beard.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>7. – Detainees get mad whenever interrogators
make puns interchanging the words “moola” and “mullah.”<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>6. – Wife #3 stars in Real Housewives of
Kandahar.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
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<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>5. – Once considered entering his favorite
camel in the Olympics’ dressage competition.<o:p></o:p></span></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>4. – As an austerity measure, shoe bombers are
advised to shop at Payless.<o:p></o:p></span></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>3. – Mission statement includes jihad against
Pakistan, Afghanistan and Jenniferanistan.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
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<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>2. – For reasons too complicated to explain,
all al Qaeda equipment leases are booked as operating leases.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>1. – Even in a 14<sup>th</sup> century
cultural milieu, accountants are considered nerds.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com1tag:blogger.com,1999:blog-5361838211256809839.post-43729037642978927482012-12-11T12:48:00.001-08:002012-12-11T12:48:52.660-08:00CLIFF NOTES -- 2012 Year-end Tax Planning for the Firm<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif";">Partners</span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif";">Mike
Marget<o:p></o:p></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif";">December
11, 2012<o:p></o:p></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif";">Cliff Notes – 2012 Year-end
Tax Planning for the Firm<o:p></o:p></span></b></div>
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<span style="font-family: "Verdana","sans-serif";"><o:p> </o:p></span><span style="font-family: "Verdana","sans-serif";"><span style="mso-tab-count: 1;"> </span>Year-end tax planning is a
mindboggling concept in the best of times.<span style="mso-spacerun: yes;">
</span>As the end of 2012 approaches, “uncertainty” is the operative word due
to a combination of upcoming events, including the likely expiration of the 2001-era tax
rates and a new Medicare tax levied on the high income earners.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
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<span style="font-family: "Verdana","sans-serif";"><span style="mso-tab-count: 1;"> </span>I recently conducted a brief, informal
and very unscientific survey of tax accountant friends who advise high income
individuals, including a number of partners (shareholders) in law firms.<span style="mso-spacerun: yes;"> </span>Their advice:<span style="mso-spacerun: yes;">
</span>law firms should accelerate revenue and defer expenses this year in
anticipation of higher tax rates in 2013.<o:p></o:p></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif";">1.</span></b><span style="font-family: "Verdana","sans-serif";"><span style="mso-spacerun: yes;"> </span><b style="mso-bidi-font-weight: normal;">Why Accelerate Income and/or Defer
Expenses?<o:p></o:p></b></span></div>
<span style="font-family: "Verdana","sans-serif";"><span style="mso-tab-count: 1;"> </span>In most years, taxpayers prefer to
defer revenue and accelerate expenses in order to minimize taxable income.<span style="mso-spacerun: yes;"> </span>This year is different.<span style="mso-spacerun: yes;"> </span>Absent agreement in Washington to the
contrary, the highest marginal tax bracket automatically increases to 39.6% from
the current 35% on January 1, 2013.<span style="mso-spacerun: yes;"> </span>In
addition, a new 0.9% Medicare contribution tax on earned income takes effect
for 2013 for married taxpayers with modified adjusted gross income over $250,000
and over $200,000 for taxpayers filing single.<span style="mso-spacerun: yes;">
</span>Taken together, the tax rate applicable to most law firm partners will
increase by 5.5% on their law firm income earned next year.<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[i]</span></span></span></span></a><o:p></o:p></span><br />
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<span style="font-family: "Verdana","sans-serif";"><span style="mso-tab-count: 1;"> </span>With these likely 2013 rates,
partners will owe 5.5% more in federal income tax on every dollar earned next
year at the highest marginal rate as compared to the 2012 rates.<span style="mso-spacerun: yes;"> </span>Accordingly, the partners will save $5,500 on
every $100,000 of taxable income which can be “shifted” into 2012 from
2013.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
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<span style="font-family: "Verdana","sans-serif";"><span style="mso-tab-count: 1;"> </span>Generally speaking, the idea of
deferring income/accelerating expenses is a good idea when tax rates remain the
same or are likely to decline year-to-year.<span style="mso-spacerun: yes;">
Conversely</span>, if rates are likely to increase in the succeeding year (i.e.,
the likely 2012/2013 scenario), the opposite is true.<span style="mso-spacerun: yes;"> </span>However, there are some caveats:<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">A.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><u><span style="font-family: "Verdana","sans-serif";">Law
firm compensation percentages are not static</span></u><span style="font-family: "Verdana","sans-serif";">.<span style="mso-spacerun: yes;"> </span>Partner A may
be entitled to 30% of the profits for 2012.<span style="mso-spacerun: yes;">
</span>Shifting $100,000 of income from 2013 to 2012 to take advantage of lower
rates could result in a $5,000 windfall if Partner A’s profit percentage in
2013 falls from 30% to 25%.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">B.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><u><span style="font-family: "Verdana","sans-serif";">For
every action there is an opposite and equal income or not-income reaction for
someone else</span></u><span style="font-family: "Verdana","sans-serif";">.<span style="mso-spacerun: yes;"> </span>Assume you pay your tax accountant every
December for the advice and service provided during the year – including the suggestion
this year to defer expenses in 2013 to maximize taxable 2012 taxable income.<span style="mso-spacerun: yes;"> </span>If you decide to defer the accountant’s
payment to January 2013, your law firm wins, and your CPA loses.<span style="mso-spacerun: yes;"> </span>Because of your decision to defer the regular
December payment to January, you have shifted taxable income from the lower
rates of 2012 to the higher 2013 rates for your CPA.<span style="mso-spacerun: yes;"> </span>Talk about being hoisted on your own petard!<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">C.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><u><span style="font-family: "Verdana","sans-serif";">It
is often difficult to “go back” in time</span></u><span style="font-family: "Verdana","sans-serif";">.<span style="mso-spacerun: yes;"> </span>Should your
firm decide to defer associate and staff bonuses from December 2012 to January
2013, later reverting to a December bonus payday becomes problematic.<span style="mso-spacerun: yes;"> </span>Switching back will mean 2 bonus payments in
a single calendar year – one in January for the prior work year and a second in
December for the concurrent work year.<span style="mso-spacerun: yes;">
</span>Such moves should not be taken lightly since they impact issues raised
in both A and B above.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">D.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><u><span style="font-family: "Verdana","sans-serif";">Not
all partners are created equal from a tax perspective</span></u><span style="font-family: "Verdana","sans-serif";">.<span style="mso-spacerun: yes;">
</span>Whatever your firm decides to do – take your CPA’s advice and accelerate
income/defer expenses for 2012 or simply maintain business as usual – discuss
it with all the partners.<span style="mso-spacerun: yes;"> </span>Don’t assume every
partner has the same individual tax goals and will benefit from the same
strategies.<span style="mso-spacerun: yes;"> </span>Moreover, a dramatic income shift
may subject certain partners to penalties and interest for underpayment of
quarterly federal and state income tax estimates for 2012.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif";">2.<span style="mso-spacerun: yes;">
</span>Deferring 2012 Expenses to 2013</span></b><span style="font-family: "Verdana","sans-serif";"><o:p></o:p></span></div>
<span style="font-family: "Verdana","sans-serif";"><span style="mso-tab-count: 1;"> </span>The following is a partial list of
things to consider if your firm wants to defer 2012 expenses into 2013:<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">A.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><u><span style="font-family: "Verdana","sans-serif";">Vendor
Payments</span></u><span style="font-family: "Verdana","sans-serif";">.<span style="mso-spacerun: yes;"> </span>Most law firms pay their vendors on a 30-day
(possibly longer) payment schedule.<span style="mso-spacerun: yes;"> </span>In
prior years, your firm likely accelerated items scheduled for payment in early
January in order to take the tax deduction in the current year.<span style="mso-spacerun: yes;"> </span>If your firm decides to maximize 2012 taxable
income, you will want to defer as many expense payments as possible.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">B.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><u><span style="font-family: "Verdana","sans-serif";">Year-end
Bonuses</span></u><span style="font-family: "Verdana","sans-serif";">.<span style="mso-spacerun: yes;"> </span>If your firm typically pays bonuses to
associates, staff and non-equity partners in December, you may want to consider
postponing those payments to January 2013.<span style="mso-spacerun: yes;">
</span>Be mindful, however, that the deferral of bonus payments may subject the receipients to higher tax liabilities at 2013 rates.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">C.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><u><span style="font-family: "Verdana","sans-serif";">Delay
4<sup><span style="font-size: x-small;">th</span></sup> Quarter Nonresident State Composite Filing</span></u><span style="font-family: "Verdana","sans-serif";">.<span style="mso-spacerun: yes;">
</span>If your firm processes 4<sup><span style="font-size: x-small;">th</span></sup> quarter composite filings in
December (so partners can deduct the state income tax payments on their
personal returns), deferring those filings and payments to January will shift
the personal deduction from 2012 to 2013.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">D.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><u><span style="font-family: "Verdana","sans-serif";">Depreciation
Elections</span></u><span style="font-family: "Verdana","sans-serif";">.<span style="mso-spacerun: yes;"> </span>Consider electing out of 50% bonus
depreciation for qualifying assets placed in service in 2012 tax year.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">E.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><u><span style="font-family: "Verdana","sans-serif";">Qualified
Retirement Plan Contributions</span></u><span style="font-family: "Verdana","sans-serif";">.<span style="mso-spacerun: yes;"> </span>Generally, contributions to a qualified
retirement plan for 2012 are deductible in 2012 if contributed in 2013 before
the extended due date of the law firm’s tax return for 2012.<span style="mso-spacerun: yes;"> </span>Firms wishing to maximize partner income for
2012 may want to consider taking a 2013 tax deduction for the 2012 plan year
contributions, rather than electing to take the deduction for tax year 2012.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">3.<span style="mso-spacerun: yes;">
</span>Accelerating Income into 2012<o:p></o:p></span></b></div>
<span style="font-family: "Verdana","sans-serif";"><span style="mso-tab-count: 1;"> </span>Law firms seeking to accelerate
revenue can consider the following:<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l2 level1 lfo3; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">A.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif";">Accelerate
billable hours and progress bill clients for December time and soft costs and
collect before December 31, 2012.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l2 level1 lfo3; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">B.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif";">Collect
non-refundable retainer payments in December for work to be performed next
year.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l2 level1 lfo3; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">C.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif";">Collect
on outstanding accounts receivable, giving discounts were appropriate in order
to save on the tax differential.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l2 level1 lfo3; text-indent: -0.25in;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"><span style="mso-list: Ignore;">D.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Verdana","sans-serif";">Advise
partners that they may want to consider converting their 401(k) account
balances to Roth 401(k) balances before year-end – and pay the taxes this year
at current rates as opposed to the then-prevailing rate applicable to future
withdrawals.<span style="mso-spacerun: yes;"> </span>(One nice feature of the
Roth IRA conversion is it comes with a “reversal feature.”<span style="mso-spacerun: yes;"> </span>If a taxpayer converts a regular IRA to a
Roth IRA before year-end and it turns out to be a bad idea, the conversion
carries with it a “re-characterization” feature.<span style="mso-spacerun: yes;"> </span>Up until the due date of your tax return in
2013, you can reverse a Roth conversion.)<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif";">Conclusion<o:p></o:p></span></b></div>
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif";"><span style="mso-tab-count: 1;"> </span></span></b><span style="font-family: "Verdana","sans-serif";">Regardless of whether the President
and Congress reach a compromise on “the fiscal cliff,” it is a safe bet that
tax rates – for married taxpayers who earn over $250,000 ($200,000 if single)
are going to be higher in 2013.<span style="mso-spacerun: yes;"> </span>As a
result, law firm managers should work with their outside accountants to make a
plan and then involve the partners (and other stakeholders) in the 2012 year-end
tax planning effort.<span style="mso-spacerun: yes;"> </span>Doing nothing is a perfectly
viable option – but only after all other alternatives are thoroughly explored
and discussed.<span style="mso-spacerun: yes;"> </span>Effectively, it may come
down to something this simple – as to each thing which <u>can be</u> accelerated or
deferred – should the partners pay the tax now or later?<o:p></o:p></span><br />
<br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 6.65in;" valign="top" width="638"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Verdana","sans-serif"; font-size: 10pt;">OBLIGATORY
DISCLAIMER:<span style="mso-spacerun: yes;"> </span></span></b><span style="font-family: "Verdana","sans-serif"; font-size: 10pt;">This presentation
was prepared for general guidance and discussion purposes and does not
constitute professional advice.<span style="mso-spacerun: yes;">
</span>Readers should not act upon the information contained herein without
obtaining specific professional advice.<span style="mso-spacerun: yes;">
</span>No representation or warranty (express or implied) is made as to completeness
or accuracy of the matters discussed herein.<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<hr align="left" size="1" width="33%" />
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref1" name="_edn1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[i]</span></span></span></span></span></a><span style="font-family: "Verdana","sans-serif"; font-size: 11pt;"> For purposes of
this memo, I’m assuming all partners are in the highest marginal tax rate –
currently 35%.<o:p></o:p></span>4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com4tag:blogger.com,1999:blog-5361838211256809839.post-90871383522019210602012-12-04T14:50:00.002-08:002012-12-04T14:50:56.604-08:00Standard Mileage Rate Increases $0.01 in 2013<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: "Angsana New";">All Partners, Associates and Staff<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: "Angsana New";">Mike Marget<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: "Angsana New";">December 4, 2012<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: "Angsana New";">Standard Mileage Rate Increases $0.01 in
2013<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Vrinda;">The IRS standard mileage rate for use of a vehicle
in a business will increase by a penny per mile for miles driven in 2013.<span style="mso-spacerun: yes;"> </span>(<a href="http://www.irs.gov/uac/2013-Standard-Mileage-Rates-Up-1-Cent-per-Mile-for-Business,-Medical-and-Moving">IRS Notice 2012-72</a>)<span style="mso-spacerun: yes;"> </span>For business use of an automobile, the 2013
rate will be 56.5 cents per mile.<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Vrinda;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Vrinda; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[i]</span></span></span></span></span></a><span style="mso-spacerun: yes;"> </span>Driving for medical or moving purposes
similarly increases to 24 cents per mile.<span style="mso-spacerun: yes;">
</span>Both rates are one cent higher than for 2012.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Vrinda;">These rates are based on annual studies of the
costs of operating an automobile.<span style="mso-spacerun: yes;"> </span>The
business mileage rate factors in the increased fixed and variable costs of
operating an automobile, while the medical/moving rate is based solely on increased
variable costs.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Vrinda;">Since most law firms reimburse partners and
employees for business use of personal automobiles based on the IRS standard
rate and, where permitted, pass those amounts through as costs to clients, it
is important for firm managers to plan for this upcoming change.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Vrinda;">Beginning January 1, 2013, it will be important to
distinguish between whether the miles driven occurred in calendar year 2012 or
2013.<span style="mso-spacerun: yes;"> </span>The one cent increase applies only
to travel occurring after December 31, 2012, regardless of whether the
reimbursement or client billing occurs in 2013.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Verdana","sans-serif"; mso-bidi-font-family: Vrinda;">I’m fairly certain those outfits who audit legal
bills for insurance companies will modify their software to look for this
penny-per-mile difference by travel date.<span style="mso-spacerun: yes;">
</span>My advice is to get it right when you process the reimbursements.</span><span style="font-family: "Verdana","sans-serif"; font-size: 12pt; mso-bidi-font-family: Vrinda;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<hr align="left" size="1" width="33%" />
<br />
<div style="mso-element: endnote-list;">
<div id="edn1" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref1" name="_edn1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Verdana","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[i]</span></span></span></span></span></a><span style="font-family: "Verdana","sans-serif"; font-size: 11pt;"> Notwithstanding
IRS standard mileage rates, taxpayers always have the option of calculating the
actual cost of using their vehicle for tax purposes.<span style="mso-spacerun: yes;"> </span>However, extremely accurate records are
required to substantiate such deductions.<span style="mso-spacerun: yes;">
</span>Seek advice from your professional tax preparer before traveling this
route.</span><span style="font-size: 11pt;"><o:p></o:p></span></div>
</div>
</div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com2tag:blogger.com,1999:blog-5361838211256809839.post-63633438610899259712012-12-04T14:37:00.001-08:002012-12-04T14:37:26.905-08:00Top 10 Signs You Have a Lame Computer Virus<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg LLP<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Top
10 File<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">December
4, 2012<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Top 10 Signs You Have
a Lame Computer Virus<o:p></o:p></span></b></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">10.
– You type today’s date; PC converts it to Stardate 54868.49.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">9.
– Only music you can download: William Shatner’s Greatest Hits.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>8. – Tech support tells you to simply give your
PC rest and plenty of fluids.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>7. – Google Maps will only give you directions
to the nearest Starbucks.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>6. – Hit the F7 key, you get an ad for
Sham-Wow.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>5. – PC signs itself on to EBay and places
bids on Commodore 64 software.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>4. – When you start up your computer, instead
of the Intel jingle, you hear the opening notes to <i style="mso-bidi-font-style: normal;">Row, Row, Row Your Boat</i>.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>3. – PC randomly inserts semicolons into text;
where; no rational; person would ever insert a semi;colon.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">2.
–;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">1.
– Your PC replaces hilarious Top 10 entries on this website with unfunny ones.<o:p></o:p></span></div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com1tag:blogger.com,1999:blog-5361838211256809839.post-23607073958071897542012-10-31T13:57:00.000-07:002012-10-31T13:57:07.523-07:00Outsourcing -- How it Works in Practice<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">All
Partners and Senior Admin Staff<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">October
31, 2012<o:p></o:p></span></div>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Outsourcing
– How it Works in Practice<o:p></o:p></span></div>
</td>
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</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">“Who wants to manage the accounts payable clerks, and the
billings?”</span></i></b><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>Thus spoke practice management consultant
Peter Zeughauser as he predicted that large law firms eventually will outsource
most of their back office functions.<span style="mso-spacerun: yes;"> </span>The
quote appeared in a Wall Street Journal article discussing the many ways large
firms are trying to reduce their back office costs.<span style="mso-spacerun: yes;"> </span>I think Peter is correct.<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[i]</span></span></span></span></a><span style="mso-spacerun: yes;"> </span>Outsourcing makes business sense – it reduces
costs, increases efficiency and frees up management time for more important
things.<span style="mso-spacerun: yes;"> </span>Not just for large firms, it
makes sense for small and midsize firms, too.<span style="mso-spacerun: yes;">
</span>Let me explain.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
purpose of this memo is to make the business case for small/midsize firms
outsourcing their accounting and billing functions to an experienced, qualified
outsourcing service provider (“OSP”) – someone like 4L Law Firm Services LLC
(“4L”).<o:p></o:p></span></div>
<br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
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<i style="mso-bidi-font-style: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">This is the third of
three memos inspired an article appearing in the <span style="mso-spacerun: yes;"> </span><a href="http://online.wsj.com/article/SB10000872396390443294904578042592833016774.html">Wall Street Journal article</a> on October 7.<span style="mso-spacerun: yes;"> </span>The others:<span style="mso-spacerun: yes;">
</span><a href="http://www.lawfirmcfo.com/2012/10/wsj-big-firms-outsource-back-office.html">WSJ—Big Firms Wring Costs from Back Office Tasks</a> and<a href="http://www.lawfirmcfo.com/2012/10/outsourcing-how-it-works-in-theory.html"> Outsourcing—How it Works in Theory</a>.<o:p></o:p></span></i></div>
</td>
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</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Is it even Possible to
Outsource a Law Firm’s Accounting & Billing?<o:p></o:p></span></b></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Before
making the business case, let’s first discuss whether outsourcing is even
possible?<span style="mso-spacerun: yes;"> </span>The answer is “yes.” <span style="mso-spacerun: yes;"> </span>Advances in Internet connectivity and desktop
virtualization make outsourcing not only possible, but practical for small and
midsize firms.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">With
today’s technology, a law firm’s back office no longer needs to be located in
the same building or even same city as the firm’s lawyers.<span style="mso-spacerun: yes;"> </span>Big firms discovered this long ago and
resisted duplicating accounting staff in every office.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
same technology which permits big firms to centralize their accounting enables small
and midsize firms to outsource.<span style="mso-spacerun: yes;">
</span>Regardless of where the software resides, back office and front office
personnel in different locations can utilize the same applications.<span style="mso-spacerun: yes;"> </span>This allows billing and general ledger
accounting tasks to be assigned to individuals in one city and for lawyers in another
to enter time, initiate disbursements (with the checks printing to any
designated printer in the lawyers’ office) and have real-time online access to
a myriad of actionable financial data to manage their practice, their client
work and the firm.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Outsourcing Lowers Costs
for the Law Firm<o:p></o:p></span></b></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
primary promise of outsourcing is quality back office services at a lower cost
than the law firm can provide with internal resources.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Quality
service and lower cost are made possible through a combination of economies of
scale and process improvement.<span style="mso-spacerun: yes;"> </span>Because
it services multiple firms, 4L handles a higher volume of accounting and
billing transactions each month.<span style="mso-spacerun: yes;"> </span>With this
greater volume, 4L is able to leverage its accounting workforce more
efficiently than any single law firm with lower volume could hope to accomplish
on its own.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">In
addition, because the accounting and billing operations constitute <u>4L’s
front office</u>, 4L has invested in superior accounting software – from <a href="http://orionlaw.com/">OrionLaw Management Systems, Inc.</a> – and assembled an experienced law firm accounting
staff capable of handling the workflow more efficiently and productively than any
single firm could duplicate with internal resources.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Through
a combination of higher volume, improved technology, experienced talent and
process improvement, 4L provides the accounting and billing services to law
firms at lower cost and passes along significant savings to its client law
firms.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
following chart illustrates the potential cost difference to law firms using
internal resources versus outsourcing its accounting and billing tasks:<o:p></o:p></span></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpeUIXgacfIDFcdV9Knpb-nGql9dZzEfAEUKIQjOHBYWz2JtmWuaaHP_O4X77gHEK95Pyhbj3XMbhnLxW1yMKPlWXlofUlVjW-Dq8K6hScvHMC2jpCRzMAQM3D8XgVlVBAZWJdZJ2Llds/s1600/4L-bar-graph-graphic.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="219" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpeUIXgacfIDFcdV9Knpb-nGql9dZzEfAEUKIQjOHBYWz2JtmWuaaHP_O4X77gHEK95Pyhbj3XMbhnLxW1yMKPlWXlofUlVjW-Dq8K6hScvHMC2jpCRzMAQM3D8XgVlVBAZWJdZJ2Llds/s320/4L-bar-graph-graphic.jpg" width="320" /></a></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Law
firms with 11-to-20 lawyers spend on average <b style="mso-bidi-font-weight: normal;">$7,005 per lawyer annually</b> on accounting and billing staff salaries
and benefits.<span style="mso-spacerun: yes;"> </span>This data is from the 2011
Small Law Firm Economic Survey.<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn2" name="_ednref2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[ii]</span></span></span></span></a><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Using
the Survey census data, I applied 4L’s service fee pricing model to the
participating firms.<span style="mso-spacerun: yes;"> </span>The outsourcing
option would cost those firms an average of <b style="mso-bidi-font-weight: normal;">$4,614 per lawyer annually</b><a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn3" name="_ednref3" style="mso-endnote-id: edn3;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[iii]</span></span></span></span></a>
– as compared to $7,005.<span style="mso-spacerun: yes;"> </span>The savings is <b style="mso-bidi-font-weight: normal;">$2,391 per-lawyer or 34% annually.</b><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">The Collateral Benefits
of Outsourcing<o:p></o:p></span></b></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">If
lowering accounting and billing support costs by 30%-to-40% is not enough,
outsourcing provides other collateral benefits.<span style="mso-spacerun: yes;">
</span>Outsourcing:<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">eliminates
future capital expenditures;</span></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">fosters
greater efficiency and productivity for the front office; </span></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">introduces
best practices and stronger internal controls; and</span></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.5in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">frees
up firm leadership time to focus on other practice management challenges.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Law
firms who work with 4L never have to worry about capital expenditures for
software upgrades or hardware purchases or maintenance.<span style="mso-spacerun: yes;"> </span>4L provides the Orion accounting software via
the Cloud where each firm’s data resides on a separate private virtual
server.<span style="mso-spacerun: yes;"> </span>The software and hardware is
provided and maintained by 4L without cost to the law firm.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Use
of the Orion accounting software also makes the law firm’s front office more
efficient.<span style="mso-spacerun: yes;"> </span>There are numerous ways to
enter billable time, to lookup client-matter numbers and task codes, and make
online inquiries of key financial data such as bank balances, aging of accounts
receivable and client status as to last billing, last payment and other
information required to manage the firm.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Working
with 4L provides a higher degree of internal accounting controls than smaller
firms generally implement.<span style="mso-spacerun: yes;"> </span>The 4L staff
performs monthly bank reconciliations on all firm and trust accounts and
balances the detailed monthly accounting summaries to the general ledger
accounts to ensure accuracy of the numbers.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Outsourcing
also improves existing internal procedures.<span style="mso-spacerun: yes;">
</span>4L works with its law firm clients to implement the best practices to
streamline billing and collection processing.<span style="mso-spacerun: yes;">
</span>We recommended changes to billing procedures at one firm which increased
their cash flow by nearly $140,000 this year.<span style="mso-spacerun: yes;">
</span>With another firm, we identified and corrected flaws in produces used to
collect documentation needed to bill client advances which increased billing
and reduced expenses by more than $150,000.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">But
perhaps the most significant collateral benefit of outsourcing is it makes firm
management more effective.<span style="mso-spacerun: yes;"> </span>The Peter Zeughauser
quote at the top of this memo sums it up nicely.<span style="mso-spacerun: yes;"> </span>Is the law firm best served when senior
management is spending time on accounting and billing processes?<span style="mso-spacerun: yes;"> </span>I think not.<span style="mso-spacerun: yes;">
</span>Freed from the day-to-day oversight of these back office tasks, firm
management can devote increased attention to the things which matter most:<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Representing
current clients;</span></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Supervising,
training and developing junior lawyers;</span></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Seeking
ways to become more profitable by reducing the direct costs of providing client
service; and</span></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.5in; mso-list: l1 level1 lfo2; text-indent: -0.25in;">
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Engaging
in activities needed to attract future clients to the firm.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Outsourcing Makes
Business Sense<o:p></o:p></span></b></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">A
central precept of business management is to purchase goods and services from responsible
suppliers who can provide the requisite quality at the lowest reasonable
price.<span style="mso-spacerun: yes;"> </span>A make-versus-buy decision should
be a “no-brainer” when purchasing produces equal or better quality and is less
expensive than doing it yourself.<span style="mso-spacerun: yes;"> </span>In
this way, outsourcing has become a $500 billion-a-year business.<span style="mso-spacerun: yes;"> </span>Big business has embraced it in a big way and
big law firms are turning to outsourcing with greater frequency – even though
they already enjoy significant economies of scale<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Outsourcing
makes sense because it reduces costs, improves efficiency and lets management
focus on core business issues.<span style="mso-spacerun: yes;"> </span>It just
makes good business sense to outsource – regardless of the size of your law
firm.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<hr align="left" size="1" width="33%" />
<br />
<div style="mso-element: endnote-list;">
<div id="edn1" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref1" name="_edn1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[i]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;"> I decided to go with
the first name reference here because it lets me tell the following story.<span style="mso-spacerun: yes;"> </span>I’ve met Peter on a couple occasions.<span style="mso-spacerun: yes;"> </span>The first time was about 10 years ago in
Chicago.<span style="mso-spacerun: yes;"> </span>We were both presenting at the
same conference and all the speakers had dinner together the night before.<span style="mso-spacerun: yes;"> </span>All I recall about that dinner is there was
good wine (French, naturally) and good conversation with Peter regaling stories about his service as a hockey goal judge for Anaheim Ducks’ home games.<o:p></o:p></span></div>
</div>
<div id="edn2" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref2" name="_edn2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[ii]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;"> Small Firm Economic
Survey, 2011 edition, published by ALM and The National Law Journal.<o:p></o:p></span></div>
</div>
<div id="edn3" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref3" name="_edn3" style="mso-endnote-id: edn3;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">[iii]</span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Georgia","serif"; font-size: 12pt;">It is important to
note the projected annual fee per-lawyer includes the cost of the Orion
accounting software which 4L provides, without fee to its client law firms.<o:p></o:p></span></div>
</div>
</div>
</div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com26tag:blogger.com,1999:blog-5361838211256809839.post-87161761985556797822012-10-29T10:04:00.001-07:002012-10-29T10:04:51.554-07:00Outsourcing -- How it Works in Theory<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">All
Partners and Senior Admin Staff<o:p></o:p></span></div>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
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<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">October
28, 2012<o:p></o:p></span></div>
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<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Outsourcing
– How it Works in Theory<o:p></o:p></span></div>
</td>
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<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Outsourcing
is a <a href="http://www.xerox.com/annual-report-2010/pdfs/2010_Managements_Analysis.pdf">$500 billion-a-year business</a>.<span style="mso-spacerun: yes;"> </span>Big
business embraces outsourcing in a big way to reduce cost, foster greater efficiency
and free management time to focus on core competencies.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Outsourcing
initiatives tend to target back office tasks – HR, payroll, call centers, help
desk and accounting/billing activities.<span style="mso-spacerun: yes;">
</span>Xerox – who in recent years has become a big outsourcing service
provider (“OSP”) – runs a number of TV commercials<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[i]</span></span></span></span></a>
touting how they perform accounting tasks for Michelin and Marriott and call
center management for Virgin Airline.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
purpose of this memo is to discuss how outsourcing works from the perspective
of the OSP and the benefits to the OSP’s business customer.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">How Outsourcing Works
for the OSP<o:p></o:p></span></b></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
OSP’s goal is simple.<span style="mso-spacerun: yes;"> </span>Deliver quality
services better, cheaper and faster than the business customer can accomplish
with internal resources, and do so profitably over the course of an enduring
relationship.<span style="mso-spacerun: yes;"> </span>In order to grow its
business, an OSP works hard to provide excellent service to each business
customer in order to secure quality references essential to attracting
additional customers.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
outsourcing business model is significantly more complex than simply moving
jobs from high cost metropolitan areas to places where salaries are lower.<span style="mso-spacerun: yes;"> </span>While wage differentials may be part of the
equation, an OSP’s success is primarily dependent upon two other factors:<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;"> 1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Economies of scale; and<o:p></o:p></span><br />
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;"> 2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Technology, talent and
process improvement.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<u><span style="font-family: "Georgia","serif"; font-size: 12pt;">Economies
of Scale/Leverage<o:p></o:p></span></u></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Volume
matters.<span style="mso-spacerun: yes;"> </span>An OSP with multiple business customers
enjoys a higher volume of work.<span style="mso-spacerun: yes;"> </span>Higher
volume results in more consistent capacity utilization with fewer peaks and
valleys in the workflow.<span style="mso-spacerun: yes;"> </span>Fewer peaks and
valleys permit the OSP to leverage its workforce for higher productivity – and
consequently lower operating costs – as compared to a single organization with
lower volume.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">In
Microeconomics 101, we learned that higher volume generally results in greater
productivity.<span style="mso-spacerun: yes;"> </span>The higher volume/greater
productivity thesis is confirmed in the context of a law firm’s back office with
data from a national survey of law firm economies focusing on firms with 20 or
fewer lawyers.<span style="mso-spacerun: yes;"> </span>According to the survey, firms
with 11-to-15 lawyers average 0.12 FTE accounting personnel per lawyer versus a
0.11 FTE per-lawyer ratio among firms with 16-to-20 lawyers.<span class="MsoEndnoteReference"> <a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn2" name="_ednref2" style="mso-endnote-id: edn2;" title=""><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[ii]</span></span></span></a></span><span style="mso-spacerun: yes;"> </span>So, what does this mean?<span style="mso-spacerun: yes;"> </span>Take for example a firm with 13.33 FTE
lawyers and 1.6 FTE accounting personnel; then assume the firm increases 50% in
size to 20 FTE lawyers.<span style="mso-spacerun: yes;"> </span>Will this now-bigger
law firm require a corresponding 50% increase in support staff to 2.4 FTE to
handle the increased number of accounting and billing transactions?<span style="mso-spacerun: yes;"> </span>Not according to the survey.<span style="mso-spacerun: yes;"> </span>The now-bigger law firm should require just a
37.5% staff increase (not 50%) – to 2.2 FTE – since the typical 20-lawyer firm is
able to manage its accounting and billing operations with 2.2 FTE, rather than
2.4.<span style="mso-spacerun: yes;"> </span>The 0.2 FTE difference illustrates
the workforce economies of scale available in a higher volume environment.<span style="mso-spacerun: yes;"> </span>A high volume OSP is able to further maximize
the economies of scale when leveraging the work effort supporting dozens or
even hundreds of lawyers.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<u><span style="font-family: "Georgia","serif"; font-size: 12pt;">Investment
in Technology, Talent and Supervision</span></u><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p></o:p></span></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Whether
you work in a law firm or a Fortune 500 company, it is infinitely easier to
justify capital spending on front office activities – the things which attract
clients, generate higher revenue or reduce direct costs – than on measures
aimed at improving back office functions or reducing indirect costs.<span style="mso-spacerun: yes;"> </span>Granted, if a particular back office system
is broken or on its last legs, you have a shot; short of that, back office capital
spending is a tough sell.<span style="mso-spacerun: yes;"> </span>An OSP views
capital investment on matters related to the business customers’ back office
activities through a different lens.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">With
outsourcing, the business customer’s back office is the OSP’s front
office.<span style="mso-spacerun: yes;"> </span>As such, OSPs invest heavily in
technology, talent and process improvement in order to bring down the OSP’s
operating costs.<span style="mso-spacerun: yes;"> </span>The OSP requires lower
operating costs in order to (a) pass a portion of those savings on to the
business customer, (b) recoup marketing and capital investments and (c) make a
reasonable profit.<span style="mso-spacerun: yes;"> </span>It is standard
practice for OSPs to upgrade the business customer’s (former) back office
technology and implement “best practices” in order to streamline and standardize
operations.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">From
a staffing perspective, OSPs generally engage better talent than the business
customer is able to attract and retain in a on its own.<span style="mso-spacerun: yes;"> </span>Recruiting and retention is easier for a
larger, focused OSP who can provide a career path and greater responsibilities
and opportunities than can the business customer on its own.<span style="mso-spacerun: yes;"> </span>This is particularly true when the OSP’s
business customer operates in an environment where mobility from the back
office to the front office is limited, if not impossible, due to training,
experience or licensure, as it is with law firms.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Finally,
a high volume OSP has greater flexibility and management depth to utilize
part-time workers and provide 24/7 services than a single organization trying
to operate hard-to-supervise second and graveyard shifts.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">How Outsourcing Works
for the Customer Firm</span></b><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p></o:p></span></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">From
the business customer’s perspective, the primary motivation to outsource is to
save money.<span style="mso-spacerun: yes;"> </span>Outsourcing permits
businesses to reduce their indirect costs and either realize higher profit or
pass the savings on to their customers in the form of lower prices.<span style="mso-spacerun: yes;"> </span>However, cost is only one of three motivating
factors when businesses evaluate outsourcing.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<u><span style="font-family: "Georgia","serif"; font-size: 12pt;">Cost
Savings</span></u><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p></o:p></span></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Obviously,
each situation is different, but proponents of outsourcing trumpet 30%-to-40%
cost savings when businesses outsource.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">In
addition, outsourcing generally relieves business customers from ever again
having to make capital expenditures to support the outsourced tasks.<span style="mso-spacerun: yes;"> </span>From the business customer’s perspective this
conserves capital for expanding front office activities and converts back
office fixed costs into variable costs.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<u><span style="font-family: "Georgia","serif"; font-size: 12pt;">Improved
Internal Services</span></u><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p></o:p></span></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">As
a result of its ongoing investments in technology, talent and supervision, OSPs
support business customers as change agents.<span style="mso-spacerun: yes;">
</span>They tend to document and clarify back office procedures leading to continuous
process improvement and error reduction associated with back office activities.<span style="mso-spacerun: yes;"> </span>Time-saving technologies are introduced and
the OSP staff brings new ideas and perspective to back office tasks.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
back office procedural improvements collaterally enhance front office
operations as well.<span style="mso-spacerun: yes;"> </span>For example, reducing
the back office time needed to process invoices can lead to saving time and
resources in the front office.<span style="mso-spacerun: yes;">
</span>Similarly, the new technology implemented to reduce the billing process
may provide more meaningful financial data to improve management supervision
over sales, billing and collection efforts.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<u><span style="font-family: "Georgia","serif"; font-size: 12pt;">Reduced
Management Distraction on Non-Core Activities<o:p></o:p></span></u></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Perhaps
the most important collateral benefit derived from outsourcing involves
liberating management time to focus on core competencies.<span style="mso-spacerun: yes;"> </span>Outsourcing avoids management headaches such
as finding, recruiting and evaluating back office staff, supervisory oversight
and problem-solving.<span style="mso-spacerun: yes;"> </span>It permits management
personnel to focus on their “highest and best use” – those things directly
associated with revenue generation – customers, delivery of goods and services,
attracting new customers and increasing profit margins by reducing direct
costs.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Conclusion</span></b><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p></o:p></span></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">A
$500 billion-a-year industry isn’t going away anytime soon.<span style="mso-spacerun: yes;"> </span>I believe it is here to stay because a big part
of management involves managing the costs of running the business.<span style="mso-spacerun: yes;"> </span>Goods and services are generally purchased
from the supplier who offers the requisite quality for the lowest reasonable price.<span style="mso-spacerun: yes;"> </span>If an OSP can provide back office services of
comparable (if not better) quality for a lower price, shouldn’t such offers be
entertained?<span style="mso-spacerun: yes;"> </span>If not, isn’t management
letting down the business’ shareholder owners?<span style="mso-spacerun: yes;">
</span>Moreover, what happens when the business’ direct competitors make the
move to outsourcing and thereby obtain a competitive advantage?<span style="mso-spacerun: yes;"> </span><o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Today
most OSPs focus on big business – where there are bigger contracts and bigger
profits to be made.<span style="mso-spacerun: yes;"> </span>Eventually, outsourcing
will expand further among middle market companies and make inroads into small
business as well.<span style="mso-spacerun: yes;"> </span>It’s inevitable.<span style="mso-spacerun: yes;"> </span>It just makes business sense.<o:p></o:p></span></div>
<hr align="left" size="1" width="33%" />
<br />
<div style="mso-element: endnote-list;">
<div id="edn1" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref1" name="_edn1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[i]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;"> <a href="http://www.realbusiness.com/">Xerox has a really coolwebsite devoted to their outsourcing prowess</a>.<span style="mso-spacerun: yes;">
</span>The TV commercials tend to run during Notre Dame football games on NBC.<span style="mso-spacerun: yes;"> </span>GO IRISH!<o:p></o:p></span></div>
</div>
<div id="edn2" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref2" name="_edn2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[ii]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;"> Small Law Firm Economic
Survey, 2011 Edition, p. 179.<span style="mso-spacerun: yes;"> </span>This
survey is published annually by ALM and The National Law Journal.<o:p></o:p></span></div>
</div>
</div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com3tag:blogger.com,1999:blog-5361838211256809839.post-82053117627407437902012-10-24T08:19:00.001-07:002012-10-24T08:19:43.167-07:00WSJ: Big Firm's Outsource Back Office Work to Reduce Costs<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">All
Partners<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">October
24, 2012<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">WSJ:
"Law Firms Wring Costs from Back Office Tasks"<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><a href="http://www.lawfirmcfo.com/2012_09_01_archive.html">Amonth ago, I commented</a> on two articles from Law.com reporting declining profits among Legal
Industrial Complex law firms due to rising operating costs.<span style="mso-spacerun: yes;"> </span>The website cited a couple surveys published
by big banks who lend to the largest US firms.<span style="mso-spacerun: yes;">
</span><a href="http://online.wsj.com/article/SB10000872396390443294904578042592833016774.html">The Wall Street Journal</a> jumped on the story on Oct. 7, publishing its
own piece describing strategies<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[i]</span></span></span></span></a>
adopted by 5 big firms to stem the tide of rising operating costs and bolster PPP.<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn2" name="_ednref2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[ii]</span></span></span></span></a><span style="mso-spacerun: yes;"> </span>The two strategies:<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Relocating
back office jobs to less expensive cities; and/or<o:p></o:p></span></div>
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Outsourcing
administrative tasks to third party providers capable of performing the tasks
just as well (if not better), faster and cheaper. <o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">I’m
usually critical of the Journal for its eponymous, laser-like focus on Wall Street – and
consequently Wall Street law firms – while feigning interest in Main Street,
the middle class and the small/midsize firms who serve them.<span style="mso-spacerun: yes;"> </span>However, Rupert gets a pass this time.<span style="mso-spacerun: yes;"> </span>Admittedly, a 15-lawyer firm in Atlanta is
unlikely to reap any significant savings by moving its 1.8 FTE accounting and
billing staff<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn3" name="_ednref3" style="mso-endnote-id: edn3;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[iii]</span></span></span></span></a>
to Tampa.<span style="mso-spacerun: yes;"> </span>However, [BSP alert]<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn4" name="_ednref4" style="mso-endnote-id: edn4;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[iv]</span></span></span></span></a>
the same 15-lawyer firm will be able to reduce its operating costs and realize
other benefits by <b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">outsourcing </i></b>those <span style="mso-spacerun: yes;"> </span>accounting and billing tasks to an experienced
service provider like Tampa-based 4L Law Firm Services LLC.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">My
next two memos/postings will deal with how outsourcing works in theory and in
practice.<o:p></o:p></span></div>
<hr align="left" size="1" width="33%" />
<br />
<div style="mso-element: endnote-list;">
<div id="edn1" style="mso-element: endnote;">
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref1" name="_edn1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 11pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">[i]</span></span></span></span></a><span style="font-family: Calibri;"> </span><span style="font-family: "Georgia","serif"; font-size: 12pt;">I haven’t really been
tracking these developments, but here is a partial list of firms who have made
significant changes to their back office operations:<o:p></o:p></span></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p> </o:p></span></div>
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 119.7pt;" valign="top" width="160"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif";">Firm<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 52.2pt;" valign="top" width="70"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif";">#
attys<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 49.5pt;" valign="top" width="66"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif";">date<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 257.4pt;" valign="top" width="343"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif";">action<o:p></o:p></span></b></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 119.7pt;" valign="top" width="160"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Akin Gump<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 52.2pt;" valign="top" width="70"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif";">791<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 49.5pt;" valign="top" width="66"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: "Georgia","serif";">1999<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 257.4pt;" valign="top" width="343"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Outsourced
most accounting tasks to Deloitte<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 119.7pt;" valign="top" width="160"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Baker &
McKenzie<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 52.2pt;" valign="top" width="70"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif";">3,805<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 49.5pt;" valign="top" width="66"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: "Georgia","serif";">2001<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 257.4pt;" valign="top" width="343"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Established
back office center in Manila, PI<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 3;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 119.7pt;" valign="top" width="160"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Orrick
Herrington<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 52.2pt;" valign="top" width="70"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif";">1,049<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 49.5pt;" valign="top" width="66"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: "Georgia","serif";">2002<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 257.4pt;" valign="top" width="343"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Set up back
office center in Wheeling, WV; 350 employed there, some outsourced to
Williams Lea<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 4;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 119.7pt;" valign="top" width="160"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">CMS Cameron
McKenna (London)<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 52.2pt;" valign="top" width="70"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif";">2,800<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 49.5pt;" valign="top" width="66"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: "Georgia","serif";">2010<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 257.4pt;" valign="top" width="343"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Outsourced
all back office jobs to Integreon; 10-year contract valued at $933 million <o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 5;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 119.7pt;" valign="top" width="160"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Wilmer Hale<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 52.2pt;" valign="top" width="70"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif";">884<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 49.5pt;" valign="top" width="66"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: "Georgia","serif";">2011<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 257.4pt;" valign="top" width="343"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Moved 187
accounting, HR jobs to Dayton, OH<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 6;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 119.7pt;" valign="top" width="160"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">O’Melveny
& Myers<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 52.2pt;" valign="top" width="70"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif";">766<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 49.5pt;" valign="top" width="66"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: "Georgia","serif";">2011<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 257.4pt;" valign="top" width="343"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Outsourced
75 admin jobs to Williams Lea<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 7;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 119.7pt;" valign="top" width="160"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Pillsbury
Winthrop<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 52.2pt;" valign="top" width="70"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif";">700<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 49.5pt;" valign="top" width="66"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: "Georgia","serif";">2012<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 257.4pt;" valign="top" width="343"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Moving 160
accounting and other jobs to Nashville, TN<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 8;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 119.7pt;" valign="top" width="160"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Bingham
McCutchen<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 52.2pt;" valign="top" width="70"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif";">855<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 49.5pt;" valign="top" width="66"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: "Georgia","serif";">2012<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 257.4pt;" valign="top" width="343"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Budgeting
$22.5 million to relocate 250 jobs to Lexington, KY<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 9; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 119.7pt;" valign="top" width="160"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Foley
Lardner<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 52.2pt;" valign="top" width="70"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif";">874<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 49.5pt;" valign="top" width="66"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: "Georgia","serif";">2012<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 257.4pt;" valign="top" width="343"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Outsourced
37 records mgmt. jobs to Williams Lea<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<o:p><span style="font-family: Calibri; font-size: x-small;"> </span></o:p></div>
</div>
<div id="edn2" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref2" name="_edn2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[ii]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;"> PPP is short for “Profits
per Partner.”<o:p></o:p></span></div>
</div>
<div id="edn3" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref3" name="_edn3" style="mso-endnote-id: edn3;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[iii]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;">According to the Small
Law Firm Economic Survey, 2011 Edition (ALM Intelligence and The National Law
Journal), p. 179, a firm with 11-15 lawyers will employ .12 “finance/accounting”
staffers per lawyer: 15 lawyers x .12 = 1.8 FTE. <o:p></o:p></span></div>
</div>
<div id="edn4" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref4" name="_edn4" style="mso-endnote-id: edn4;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[iv]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;"> BPS is short for
“Blatant Self Promotion.”<o:p></o:p></span></div>
</div>
</div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com8tag:blogger.com,1999:blog-5361838211256809839.post-9498349567678590652012-10-24T08:16:00.000-07:002012-10-24T08:16:38.431-07:00Top 10 Questions to Ask Yourself Before Contributing $5 Million to a Super PAC<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Top
10 File<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">October
24, 2012<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Top 10 Questions to Ask
Yourself Before Contributing $5 Million to a Super PAC<o:p></o:p></span></b></div>
</td>
</tr>
</tbody></table>
<br />
<span style="font-family: "Georgia","serif"; font-size: 12pt;">A
while ago I read something online from <a href="http://www.npr.org/2012/02/13/146836082/the-superpac-super-donors">NPR</a> which included a list of big
dollar donors to various so-called “Super PACs.”<span style="mso-spacerun: yes;"> For those of you so inclined, here's my advice:</span></span><br />
<br />
<div style="text-align: center;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">T<b style="mso-bidi-font-weight: normal;">op 10 Questions to Ask Yourself</b></span></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Before Contributing $5 Million to a Super PAC<o:p></o:p></span></b></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">10.
– Do my kids really need to go to college?<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>9. – Before making the contribution, can I
possibly save $750,000 (15%) by spending 15 minutes on the phone with Geico?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>8. – Have I recently divorced Tom Cruise or
Kobe Bryant?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>7. – Would it make more sense simply to watch
the campaign on cable and eat $5 million worth of snacks?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>6. – No #6.<span style="mso-spacerun: yes;">
</span>I’m still trying to wrap my brain around the concept of actually having
$5 million in the bank.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>5. – Will I be known forever as “the jerk who gave
$5 million to a Super PAC?”<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>4. – Can I really afford this and still buy
Yankee tickets?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>3. – Couldn’t I inflict almost as much damage
on a democratic society with just a $4 million contribution?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>2. – If I’ve got $5 million in the bank, shouldn’t
I instead invest in something sensible like one of those dancing Olympics
horses?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>1. – What am I, nuts?<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com0tag:blogger.com,1999:blog-5361838211256809839.post-77351994279253911492012-10-11T06:56:00.000-07:002012-10-11T06:56:20.528-07:00Key Behavioral Traits for the Successful Law Fim Manager<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-7B6mqAgGr6l3vshzGOo4GbYgxsIwo8Ki89AfSy0xtGkFazfAUaBvl8I4sk4oLQkUgDiZ5mIBSTcNC_0KPBMHIe4aGSWoKiXjggrrTNrKtScKNe3UuS-CPBGgEFWlgySCXlepyZnCu6U/s1600/Key-Traits-Graphic.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-7B6mqAgGr6l3vshzGOo4GbYgxsIwo8Ki89AfSy0xtGkFazfAUaBvl8I4sk4oLQkUgDiZ5mIBSTcNC_0KPBMHIe4aGSWoKiXjggrrTNrKtScKNe3UuS-CPBGgEFWlgySCXlepyZnCu6U/s400/Key-Traits-Graphic.jpg" width="395" /></a></div>
<br />4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com2tag:blogger.com,1999:blog-5361838211256809839.post-12234606861286545702012-10-10T06:55:00.000-07:002012-10-11T11:00:32.544-07:00Top 10 Ways to Make Chess More Popular<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Top
10 File<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
</td>
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<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p>October 11, 2012</o:p></span></div>
</td>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Top
10 Ways to Make Chess More Popular</span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">In a video-game world, this was inevitable. <a href="http://www.chessvibes.com/reports/how-to-make-chess-more-popular/">Accordingto reliable sources</a>, the World Chess Federation is secretly studying ways to
alter the 1,500 year-old rules of the game of chess to make the sport more
appealing to the general public.<span style="mso-spacerun: yes;"> </span>I can't simply stand on the sidelines while this is happening, so here are my contributions:</span></div>
<br />
<div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Top 10 Ways to Make Chess More Popular</span></b></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">10.
– Free vuvuzela horns for the first 1,000 ticketholders admitted to watch each match.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>9. – Lose a piece, down a shot of single malt.</span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>8. – Permit viewers to repeat the accounts and
descriptions of play without the written permission of Major League Chess.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>7. – Suspend for one season any coach or player who offers a cash bounty for injuring an opposing team's Bishop.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>6. – Frequent TV timeouts so viewers can run
to the kitchen to replenish their beer and chips without missing any of the
action.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>5. – More bench-clearing brawls.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>4. – Schedule matches opposite hockey games.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>3. – Replace the knight pieces with carvings
of those adorable dancing horses from the Olympics.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>2. – Settle draws with penalty kicks.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>1. – Rename Pawns the “47-percenters.” <o:p></o:p></span></div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com1tag:blogger.com,1999:blog-5361838211256809839.post-66468876766670021172012-09-25T06:45:00.001-07:002012-10-02T05:34:22.801-07:00Legal Industrial Complex Still Struggling with Rising Costs<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Management Committee</span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">September
25, 2012<o:p></o:p></span></div>
</td>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Legal
Industrial Complex Still Struggling with Rising Costs<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Two
big financial institutions, who bank many of the largest US law firms, recently
released surveys concerning the financial condition of the Legal Industrial
Complex.<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[i]</span></span></span></span></a><span style="mso-spacerun: yes;"> </span>While these surveys attract less attention
than pronouncements from the Federal Reserve, <i style="mso-bidi-font-style: normal;">The American Lawyer </i>magazine makes a big deal out of them, as do
most big firm managing partners.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
elite law firm lending units at <a href="http://www.americanlawyer.com/PubArticleTAL.jsp?id=1202571667870">Wells Fargo</a> and <a href="http://www.americanlawyer.com/PubArticleTAL.jsp?id=1202567706544">Citi Private Bank</a> surveyed 115
and 176 law firms, respectively.<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn2" name="_ednref2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[ii]</span></span></span></span></a><span style="mso-spacerun: yes;"> </span>Since some firms participate in both
surveys, it is not surprising that both banks reached the same conclusion about
big firm financial results for the fist six months of 2012:<o:p></o:p></span></div>
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Revenues
up<o:p></o:p></span><br />
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Expenses
up more than revenues<o:p></o:p></span><br />
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Profits
down.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
magazine’s takeaway:<span style="mso-spacerun: yes;"> </span>After 4+ years of
lawyer headcount reduction, staff layoffs and overhead cost reductions,
managers at the Legal Industrial Complex firms are running out of ideas for
aligning slow revenue increases with faster escalating expenses.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">What’s
a law firm manager to do?<span style="mso-spacerun: yes;"> </span>Plenty
actually, but it will require some out-of-the-box thinking and nimble
execution.<span style="mso-spacerun: yes;"> </span>I’m indebted to Hal M.
Stewart (who I’ve never met), the COO at the mega-firm Chadbourne & Parke
LLC, for suggesting a list <a href="http://www.law.com/jsp/article.jsp?id=1202536840859">of technology-centric initiatives in an articlepublished last December</a>.<span style="mso-spacerun: yes;"> </span>I’ve tweaked
Stewart’s list a bit to emphasize operating efficiency and lawyer productivity
improvement opportunities.<span style="mso-spacerun: yes;"> </span><u>Most of
these initiatives will improve the bottom line for small and midsize firms, too.</u><o:p></o:p></span></div>
<br />
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<span style="font-family: Calibri;"> </span></div>
</td>
<td style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: "Georgia","serif"; font-size: 10pt;">applicable to<o:p></o:p></span></div>
<div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: "Georgia","serif"; font-size: 10pt;">smaller firms, too?<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 21.2pt;" valign="top" width="28"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">1.<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 362.2pt;" valign="top" width="483"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Back office functions:</span></b><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>outsource or relocate them to lower-cost
locations.<span style="mso-spacerun: yes;"> </span>(Selective big firms are
doing this and the trend is sure to continue.)<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">√ Absolutely, especially outsourcing<o:p></o:p></span></b></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 21.2pt;" valign="top" width="28"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">2.<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 362.2pt;" valign="top" width="483"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Digitize all incoming mail/Document
Management Systems</span></b><span style="font-family: "Georgia","serif"; font-size: 12pt;">:<span style="mso-spacerun: yes;"> </span>improvements in scanning technology and
integration with document management systems bring efficiencies to mail
distribution and storage-and-retrieval of correspondence; enhanced use of
client-matter databases to keep track of all relevant documents, emails,
voicemails, PDFs and filings.<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p> </o:p></span></b></div>
<div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">√ Absolutely,<span style="mso-spacerun: yes;">
</span>document management is a big deal<o:p></o:p></span></b></div>
</td>
</tr>
<tr style="mso-yfti-irow: 3;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 21.2pt;" valign="top" width="28"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">3.<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 362.2pt;" valign="top" width="483"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Reduce office rent </span></b><span style="font-family: "Georgia","serif"; font-size: 12pt;">– “hoteling” and other
efforts to reduce office space<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Probably Not<o:p></o:p></span></b></div>
<div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p> </o:p></span></b></div>
</td>
</tr>
<tr style="mso-yfti-irow: 4;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 21.2pt;" valign="top" width="28"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">4.<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 362.2pt;" valign="top" width="483"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Workflow automation to
streamline client billing process: </span></b><span style="font-family: "Georgia","serif"; font-size: 12pt;">faster processing of client charges;
electronic distribution of pre-bills; email invoice delivery (no mailing of
paper invoices); faster processing equals faster collection cycle<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">√ Absolutely, available through outsourcing<o:p></o:p></span></b></div>
</td>
</tr>
<tr style="mso-yfti-irow: 5;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 21.2pt;" valign="top" width="28"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">5.<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 362.2pt;" valign="top" width="483"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Actionable financial
data:<span style="mso-spacerun: yes;"> </span></span></b><span style="font-family: "Georgia","serif"; font-size: 12pt;">faster, more
informative financial reports; client budgeting, especially for fixed fee and
contingency matters to gauge profitability<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p> </o:p></span></b></div>
<div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">√ Absolutely <o:p></o:p></span></b></div>
<div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p> </o:p></span></b></div>
</td>
</tr>
<tr style="mso-yfti-irow: 6;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 21.2pt;" valign="top" width="28"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">6.<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 362.2pt;" valign="top" width="483"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Unified messaging for
email/voicemail and lower telecommunications costs:<span style="mso-spacerun: yes;"> </span></span></b><span style="font-family: "Georgia","serif"; font-size: 12pt;">VOIP (voice-over-Internet protocol) telephone
systems; ability to forward voicemail messages and save them (long-term) for
retrieval via case-matter database<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p> </o:p></span></b></div>
<div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">√ Can be accomplished <o:p></o:p></span></b></div>
<div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">inexpensively<o:p></o:p></span></b></div>
</td>
</tr>
<tr style="mso-yfti-irow: 7;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 21.2pt;" valign="top" width="28"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">7.<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 362.2pt;" valign="top" width="483"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Social media to
recruit associates:<span style="mso-spacerun: yes;"> </span></span></b><span style="font-family: "Georgia","serif"; font-size: 12pt;">Facebook as a
recruiting communications tool.<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Probably makes sense<o:p></o:p></span></b></div>
</td>
</tr>
<tr style="mso-yfti-irow: 8; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 21.2pt;" valign="top" width="28"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">8.<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 362.2pt;" valign="top" width="483"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Precedent
retrieval/Document assembly: </span></b><span style="font-family: "Georgia","serif"; font-size: 12pt;">utilize document management systems to store
prior work product for prompt retrieval to avoid duplicating prior research
or drafting; and utilize form documents integrated with specific case
management databases to draft recurring forms (e.g., pleadings;
interrogatories; motions).<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 95.4pt;" valign="top" width="127"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">√ Absolutely, available through <span style="mso-spacerun: yes;"> </span>managed<o:p></o:p></span></b></div>
<div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>IT services<o:p></o:p></span></b></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Let’s
be real.<span style="mso-spacerun: yes;"> </span>There is still a lot of work to
be done to realize the potential of law firm workplace technology – both in big
firms and small/midsize firms.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Value
billing, alternative fee arrangements, contingency fee windfalls and busts
aside – at the end of the day there are only 24 hours for lawyers to do what
they do – represent current clients, prospect for future clients, and all the
other things.<span style="mso-spacerun: yes;"> </span>Lawyers (and
administrators) need more time for all three.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span></div>
<br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 6.65in;" valign="top" width="638"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Full Disclosure Note:</span></b><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>4L Law Firm Services manages – for small
and midsize law firms – all those things given the <b style="mso-bidi-font-weight: normal;">√ Absolutely</b> references.<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<hr align="left" size="1" width="33%" />
<br />
<div style="mso-element: endnote-list;">
<div id="edn1" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref1" name="_edn1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">[i]</span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Georgia","serif"; font-size: 12pt;">“Legal Industrial
Complex” is a term applied to the 200 largest US firms identified each year by
name in <i style="mso-bidi-font-style: normal;">The American Lawyer </i>magazine
as having the highest gross revenue.<span style="mso-spacerun: yes;"> </span>The
published numbers there are mostly about bragging rights – to impress corporate
clients and potential lateral candidates (i.e., the richest clients use the
richest lawyers).<span style="mso-spacerun: yes;"> </span>Although the magazine
claims to do extensive due diligence on the numbers, <a href="http://www.americanlawyer.com/PubArticleTAL.jsp?id=1202549688893">the “real numbers” sometimes get massaged multiple times</a> by managing partners, management committees and image
consultants before being given up for publication.<span style="mso-spacerun: yes;"> </span>The Wells Fargo and Citi Private Bank
surveys, as well as a private one conducted by PricewaterhouseCoopers, provide
comprehensive, reliable financial data, useful for peer group comparison
purposes because the data for each participating firm is kept
confidential.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
</div>
<div id="edn2" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref2" name="_edn2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">[ii]</span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Georgia","serif"; font-size: 12pt;">What, you might
ask, do these 2 banks get for all the time, expense and trouble of compiling
these surveys 4-times a year?<span style="mso-spacerun: yes;"> </span>They get a
“sit down” with the managing partner of each participating law firm; an
excellent time to solidify relationships with their law firm customers and to
market themselves to firms who bank elsewhere.<o:p></o:p></span></div>
</div>
</div>
</div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com6tag:blogger.com,1999:blog-5361838211256809839.post-45815989448864019762012-09-21T05:07:00.000-07:002012-09-21T05:07:39.316-07:00No 4th Quarter Lateral Hiring! (Subject to Exceptions)<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“Always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Management
Committee<o:p></o:p></span></div>
</td>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
</td>
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<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">September
21, 2012<o:p></o:p></span></div>
</td>
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<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">No
4<sup>th</sup> Quarter Lateral Hiring! (Subject to Exceptions)<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">There
is never a bad time to add a lateral partner; especially someone with a big book
of business, whose practice fits the firm’s culture, and who will be accretive
to the financial bottom line. <span style="mso-spacerun: yes;"> </span>However,
certain times are better than others – early (in the fiscal year) is much, much
better than later.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">At
a prior firm, we had a rule – <b style="mso-bidi-font-weight: normal;">no lateral
hiring in the 4<sup>th</sup> quarter</b>.<span style="mso-spacerun: yes;">
</span>Being a law firm, there were many exceptions to this rule.<span style="mso-spacerun: yes;"> </span>One permitted filling vacancies when
short-handed or when special expertise was needed for an active matter.<span style="mso-spacerun: yes;"> </span>Another was crafted for the proverbial “lateral
too good to” turndown; somebody certain to be snatched up by another firm if we
don’t act immediately; the “let’s thank our lucky stars and ignore the calendar”
candidate (“L2G2” for <i style="mso-bidi-font-style: normal;">too good to…</i>).<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
rationale for the 4<sup>th</sup> quarter lateral hiring freeze is simple arithmetic.<span style="mso-spacerun: yes;"> </span>Assume the following:<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">a)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">L2G2
joins New Law Firm (“NLF”) effective October 1, 2012, agreeing to the same 2012
compensation package as at Old Law Firm (“OLF”) – $300,000 annually: monthly
draws of $15,000, plus deferred comp of $120,000 payable as a <u>year-end
distribution</u>.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">b)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">L2G2’s
October production at NLF is subpar due to transition issues – delays in transferring
files, obtaining conflict waivers and the like.</span><a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[i]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">c)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">The
headhunter’s invoice (15%-to-20% of one year’s compensation) is paid before
year-end.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">d)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Invoices
for October time are issued by mid-November, and then scheduled for payment on
a 45-to-60-day cycle by L2G2’s clients.<span style="mso-spacerun: yes;"> </span>November
time is billed in December.<span style="mso-spacerun: yes;"> </span>Little or no
revenue is received in 2012 from L2G2’s clients or L2G2’s work on other firm
clients.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l0 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">e)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">In
addition to making three monthly draw payments of $15,000, <a href="http://www.lawfirmcfo.com/2012/09/making-lateral-partner-whole-for.html">NLF must foot-the-bill for the entire $120,000 deferred comp for 2012 even though L2G2worked only three months at NLF</a>.</span><a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn2" name="_ednref2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[ii]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p> </o:p></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">The
negative financial impact to NLF’s legacy partners is fairly easy to calculate.<span style="mso-spacerun: yes;"> </span>NLF will generate virtually no incremental
cash-basis revenue to cover L2G2’s 2012 compensation and the recruitment
fee.<span style="mso-spacerun: yes;"> </span>As a result, NLF will have roughly $210,000
less net income available to distribute to legacy partners when it comes time
to make the year-end distributions.</span><a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn3" name="_ednref3" style="mso-endnote-id: edn3;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[iii]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>The $210,000 “loss” represents the investment
NLF is making in L2G2.<o:p></o:p></span></div>
<br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; border: currentColor; margin: auto auto auto 4.65pt; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184; width: 577px;">
<tbody>
<tr style="height: 32.25pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td nowrap="" style="background-color: transparent; border: 1pt solid windowtext; height: 32.25pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 175pt;" valign="bottom" width="233"></td>
<td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 32.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 86.75pt;" valign="bottom" width="116"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">cost to NLF<o:p></o:p></span></b></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 32.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">paid by OLF<o:p></o:p></span></div>
</td>
<td style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 32.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" valign="bottom" width="120"><div align="center" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">L2G2 total 2012 comp<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15pt; mso-yfti-irow: 1;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 175pt;" valign="bottom" width="233"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>NLF revenue from L2G2 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 86.75pt;" valign="bottom" width="116"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<b><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>--0--<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></b></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"></td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" valign="bottom" width="120"><div align="right">
</div>
</td>
</tr>
<tr style="height: 15pt; mso-yfti-irow: 2;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 175pt;" valign="bottom" width="233"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>3 monthly draws <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 86.75pt;" valign="bottom" width="116"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>45,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"></td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" valign="bottom" width="120"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>45,000 <o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15pt; mso-yfti-irow: 3;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 175pt;" valign="bottom" width="233"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>9 months draws <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 86.75pt;" valign="bottom" width="116"></td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>135,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" valign="bottom" width="120"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>135,000 <o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15pt; mso-yfti-irow: 4;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 175pt;" valign="bottom" width="233"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>year-end distribution <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 86.75pt;" valign="bottom" width="116"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>120,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"></td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" valign="bottom" width="120"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>120,000 <o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15pt; mso-yfti-irow: 5;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 175pt;" valign="bottom" width="233"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>recruitment fee (15%) <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 86.75pt;" valign="bottom" width="116"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>45,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"></td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" valign="bottom" width="120"></td>
</tr>
<tr style="height: 15pt; mso-yfti-irow: 6;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 175pt;" valign="bottom" width="233"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>L2G2 2013 Compensation <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 86.75pt;" valign="bottom" width="116"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p> </o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p> </o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" valign="bottom" width="120"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<b><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>300,000 <o:p></o:p></span></b></div>
</td>
</tr>
<tr style="height: 15pt; mso-yfti-irow: 7;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 175pt;" valign="bottom" width="233"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>total expenses <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 86.75pt;" valign="bottom" width="116"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<b><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>210,000
<o:p></o:p></span></b></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<b><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>135,000
<o:p></o:p></span></b></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" valign="bottom" width="120"></td>
</tr>
<tr style="height: 15pt; mso-yfti-irow: 8; mso-yfti-lastrow: yes;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 175pt;" valign="bottom" width="233"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>NLF Net Income (Loss)<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 86.75pt;" valign="bottom" width="116"><div align="right" class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: right;">
<b><span style="font-family: "Georgia","serif"; font-size: 12pt;">$ (210,000)<o:p></o:p></span></b></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"></td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1.25in;" valign="bottom" width="120"></td>
</tr>
</tbody></table>
<br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; margin: auto auto auto 0.5in; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 6.65in;" valign="top" width="638"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Note:<span style="mso-spacerun: yes;"> </span>The financial loss is greater if L2G2 joins
NLF with a supporting cast (staff and/or other timekeepers) or if NLF incurs
other incremental costs (e.g., higher insurance premiums).</span><a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn4" name="_ednref4" style="mso-endnote-id: edn4;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[iv]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">With
any lateral partner candidate – but especially those who must join the firm in
the 4<sup>th</sup> quarter – there are two questions to be answered after due
diligence is completed and financial terms and projections made:<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l2 level1 lfo3; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Are
the partners willing to relinquish current year compensation in exchange for projections
of higher earnings in future periods?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l2 level1 lfo3; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">2.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">If
the answer to the first question is “yes”, then how much current year
compensation for what magnitude of return?<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">These
two questions will be explored in future Management Committee Memos focused on:<o:p></o:p></span></div>
<ul>
<li>
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Creative
accounting</span><a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn5" name="_ednref5" style="mso-endnote-id: edn5;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[v]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;"> for lateral partner
investments, and</span><span style="font-family: "Georgia","serif"; font-size: 12pt;"> <o:p></o:p></span></li>
<li>
<span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">Financial due
diligence/financial projections for potential lateral partners.</span>
</li>
</ul>
<div style="mso-element: endnote-list;">
<hr align="left" size="1" width="33%" />
</div>
<div id="edn1" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref1" name="_edn1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">[i]</span></span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Lateral partners
invariably assure me they will “hit the ground running;” their initial month’s
billable hours will be exceptionally high; all client files will be transferred
on Day 1.<span style="mso-spacerun: yes;"> </span>It never happens that way.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
</div>
<div id="edn2" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref2" name="_edn2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">[ii]</span></span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Georgia","serif"; font-size: 12pt;">L2G2 worked 9
months of 2012 (January through September) at OLF, but forfeited the
accumulated deferred comp by joining NLF.<span style="mso-spacerun: yes;">
</span>In order to make up the difference to L2G2, NLF is on the hook for the
entire $120,000.<span style="mso-spacerun: yes;"> </span>The subject of <u>Making
a Lateral Partner “Whole” </u>is discussed at length in a previous Management
Committee Memo.<o:p></o:p></span></div>
</div>
<div id="edn3" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref3" name="_edn3" style="mso-endnote-id: edn3;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">[iii]</span></span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Georgia","serif"; font-size: 12pt;">In an effort to
reduce the 2012 “loss,” some law firms might structure L2G2’s compensation so
the $120,000 make-whole payment is paid in 2013 against the 2013 budget, rather
than as a 2012 payment.<span style="mso-spacerun: yes;"> </span>L2G2 might be
amenable to this structure – deferring taxable income on $120,000 for a year
has some merit assuming tax rates are unlikely to increase.<span style="mso-spacerun: yes;"> </span>However, I don’t think this is the best
approach.<span style="mso-spacerun: yes;"> </span>How to “cover” compensation
“hit” to legacy partners will be covered in the promised future “creative
accounting for investment in lateral partners” memo.<o:p></o:p></span></div>
</div>
<div id="edn4" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref4" name="_edn4" style="mso-endnote-id: edn4;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">[iv]</span></span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Despite the fact I really love footnotes, this is point is too
important to bury in one.<o:p></o:p></span></div>
</div>
<div id="edn5" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref5" name="_edn5" style="mso-endnote-id: edn5;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">[v]</span></span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Creative lawyering
is a good thing.<span style="mso-spacerun: yes;"> </span>Creative accounting is
a bad thing.<span style="mso-spacerun: yes;"> </span>I sometimes find this
troubling.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
</div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com3tag:blogger.com,1999:blog-5361838211256809839.post-70361531853308926492012-09-20T10:55:00.000-07:002012-09-20T10:55:18.808-07:00Making a Lateral Partner "Whole" for Deferred Comp<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“Always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Management
Committee<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
</td>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">September
20, 2012<o:p></o:p></span></div>
</td>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Making
a Lateral Partner “Whole” – Year-end Distributions<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Partners
leave “money on the table” when they move from one firm to another. The money
in question is deferred compensation – their share of profits for the year
over-and-above monthly draws received – which is forfeited when they change firms
before the year-end distributions are paid to partners by their Old Law Firm
(“OLF”).<span style="mso-spacerun: yes;"> </span>No worries though.<span style="mso-spacerun: yes;"> </span>When this happens, lateral partners
invariably look to New Law Firm (“NLF”) to “make them whole” with respect to
the compensation left behind.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
term “year-end distributions” references payments to partners in Year 2
relating to their respective share of the firm’s net income earned in Year
1.<span style="mso-spacerun: yes;"> </span>These payments are typically made several
weeks or even months after year-end.</span><a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[i]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">If
your law firm intends to hire lateral partners, the earlier in the year you can
accomplish this, the better.<span style="mso-spacerun: yes;"> </span>“Earlier”
means less expense in terms of NLF “make-whole” payments to lateral partners.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">If
your firm is going to lose partners to lateral hiring, “later” is better.<span style="mso-spacerun: yes;"> </span>The longer OLF can hold onto them means (a) more
billable hours generating more profits in the current year and (b) departing
partners will forfeit more deferred comp which can be used to additionally compensate
those who remain at OLF.<span style="mso-spacerun: yes;"> </span>Although this
incremental money is inconsequential in the long run, short-term it is better
than a poke-in-the-eye.<span style="mso-spacerun: yes;"> </span>Plus, if the
departures can be delayed from say February 28 to April 30, OLF enjoys the
knowledge that the poaching firm (NLF) is on the hook for larger make-whole
payments, as explained below.<o:p></o:p></span></div>
<br />
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: 1pt solid windowtext; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 6.65in;" valign="top" width="638"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Fact Pattern<o:p></o:p></span></b></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">1)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">“Partner”<b style="mso-bidi-font-weight: normal;"> </b>expects
to earn $300,000 from the profits of OLF.<o:p></o:p></span></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">2)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">The $300,000 will be paid in the form of 12 monthly draws
of $15,000 each ($180,000) and $120,000 in the form of a year-end
distribution.<o:p></o:p></span></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">3)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Accordingly, each month Partner is working and “earning”
$25,000, of which $15,000 is paid currently and $10,000 is deferred.<o:p></o:p></span></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">4)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">The deferred comp earned at OLF does not vest until actually
paid, meaning Partner will be reluctant to make a lateral move unless
indemnified for all the deferred comp.<o:p></o:p></span></div>
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 0.25in; mso-list: l1 level1 lfo1; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">5)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">OLF (like most firms) pays the year-end distributions
days/weeks/months after December 31 and has a partnership agreement provision
requiring 30-days notice of withdrawal.<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Most
law firm’s take their time before paying year-end distributions.<span style="mso-spacerun: yes;"> </span>Some time is needed to “close the books” and
calculate net income for the year.<span style="mso-spacerun: yes;">
</span>Additional time may be required at those firms where the amount of each
partner’s year-end distribution must be decided by a compensation review
process.<span style="mso-spacerun: yes;"> </span>Year-end compensation decisions
are time intensive.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Such
delays are inevitable, but there also are practical benefits to those law firms
who engineer a significant gap between December 31 (year-end) and the later payment
date of the year-end distributions.<span style="mso-spacerun: yes;"> </span>One
such benefit is reduced interest expense.<span style="mso-spacerun: yes;">
</span>During the gap period, the firm can utilize the accumulated cash for
working capital purposes, postponing the inevitable borrowing from bank
lines-of-credit once the year-end distributions are funded.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Another
collateral benefit accrues to those law firms who defer paying the year-end
distributions the longest.<span style="mso-spacerun: yes;"> </span>Each month of
delay means:<o:p></o:p></span></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">A.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;"><strong>For
OLF</strong> – more money left on the table which will be used to increase compensation
for everyone else; and<o:p></o:p></span><br />
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">B.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;"><strong>For
NLF</strong> – more money must be allocated from its budget to make-whole the lateral
partner with respect to the deferred comp left behind at OLF.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">A Tale of Two Laterals<o:p></o:p></span></b></div>
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;"><span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">There
are two law firms.<span style="mso-spacerun: yes;"> </span>Let’s call them
G&J and JLY.</span><a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn2" name="_ednref2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[ii]</span></span></span></span></span></a><span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p></o:p></span><br />
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">G&J
pays its year-end distributions by January 31.<span style="mso-spacerun: yes;">
</span><o:p></o:p></span><br />
<span style="font-family: Symbol; font-size: 12pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">JLY
delays the year-end distributions until the end of March.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">As
a result, at G&J partners who plan to leave make their intentions known
during the first week of February – as soon as the year-end distribution checks
clear the bank.<span style="mso-spacerun: yes;"> </span>That “whooshing” noise
you hear at midnight on February 28<sup>th</sup> – after the standard 30-day
notice period expires – is the revolving door as partners move out of firms
like G&J who pay their year-end distributions in January.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
timing is different at JLY.<span style="mso-spacerun: yes;"> </span>New partners
tend to join JLY laterally earlier in the year, but because JLY delays these distributions
until the end of March, JLY partner defections typically commence on April 30.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Assume
NLF makes offers to two lateral partners – one from G&J; the other from
JLY.<span style="mso-spacerun: yes;"> </span>Both earned $300,000 for 2012 (pursuant
to the terms set forth in the Fact Pattern box) and agree to accept the same
terms from NLF for 2013.<span style="mso-spacerun: yes;"> </span>Keeping these
lateral partners <i style="mso-bidi-font-style: normal;">pari passu</i> with
their 2012 compensation package obligates NLF to pay each of them the entire
deferred comp amount for the year.<span style="mso-spacerun: yes;">
</span>Without this deferred comp indemnity, partners would require some
significant other motivation to change firms.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">The
former G&J partner is able to join NLF on February 28, 2013, after
collecting $30,000 from 2 monthly draws from G&J and forfeiting 2 month’s
deferred comp ($20,000).<span style="mso-spacerun: yes;"> </span>In order to
“annualize” the former G&J’s 2013 compensation at $300,000, NLF will pay
$270,000 for 10-months’ work – 10 monthly draws of $15,000; plus $120,000 in
deferred comp for the year.<span style="mso-spacerun: yes;"> </span>($100,000 of
the deferred comp amount accrued while the former G&J partner worked at
NLF; $20,000 represents a “make whole” payment for the deferred comp earned but
forfeited at G&J.)<span style="mso-spacerun: yes;"> </span>In essence, the
former G&J partner is costing NLF $27,000 a month for the 10-months’ work
in 2013.<o:p></o:p></span></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin: auto auto auto 4.65pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184; width: 559px;">
<tbody>
<tr style="height: 15pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td nowrap="" style="background-color: transparent; border: 1pt solid windowtext; height: 15pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 113.25pt;" valign="bottom" width="151"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<b><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">lateral from G&J <o:p></o:p></span></b></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1in;" valign="bottom" width="96"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>monthly <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">2013 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>paid by G&J <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>paid by NLF <o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 17.25pt; mso-yfti-irow: 1;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 113.25pt;" valign="bottom" width="151"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span># months worked <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1in;" valign="bottom" width="96"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">1<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">12<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">2<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">10<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15pt; mso-yfti-irow: 2;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 113.25pt;" valign="bottom" width="151"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">monthly draws<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1in;" valign="bottom" width="96"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>15,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>180,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>30,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>150,000 <o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15pt; mso-yfti-irow: 3;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 113.25pt;" valign="bottom" width="151"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">deferred comp<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1in;" valign="bottom" width="96"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>10,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>120,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>-<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>100,000 <o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 17.25pt; mso-yfti-irow: 4;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 113.25pt;" valign="bottom" width="151"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">"make
whole" pymt<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1in;" valign="bottom" width="96"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>-<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>-<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>-<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>20,000 <o:p></o:p></span></u></div>
</td>
</tr>
<tr style="height: 17.25pt; mso-yfti-irow: 5;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 113.25pt;" valign="bottom" width="151"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">Total<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1in;" valign="bottom" width="96"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>25,000 <o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>300,000 <o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>30,000 <o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>270,000 <o:p></o:p></span></u></div>
</td>
</tr>
<tr style="height: 17.25pt; mso-yfti-irow: 6; mso-yfti-lastrow: yes;">
<td colspan="2" nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 185.25pt;" valign="bottom" width="247"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>compensation per month <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>25,000 <o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>15,000 <o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>27,000 <o:p></o:p></span></u></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Meanwhile,
the former JLY partner is not available to join NLF until May 1, 2013.<span style="mso-spacerun: yes;"> </span>The former JLY partner collected 4 monthly
draws totaling $60,000 at JLY and forfeited 4 months’ deferred compensation upon
joining NLF.<span style="mso-spacerun: yes;"> </span>As a result, to annualize
the former JLY partner at $300,000 for 2013, NLF will pay this lateral partner $240,000
for 8-months’ work – 8 monthly draws of $15,000 and the entire $120,000
deferred comp for the year.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin: auto auto auto 4.65pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184; width: 559px;">
<tbody>
<tr style="height: 15pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td nowrap="" style="background-color: transparent; border: 1pt solid windowtext; height: 15pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 113.25pt;" valign="bottom" width="151"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<b><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">lateral from JLY <o:p></o:p></span></b></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1in;" valign="bottom" width="96"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>monthly <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">2013 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">paid by JLY<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: windowtext windowtext windowtext rgb(0, 0, 0); border-style: solid solid solid none; border-width: 1pt 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">paid by NLF<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 17.25pt; mso-yfti-irow: 1;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 113.25pt;" valign="bottom" width="151"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span># months worked<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1in;" valign="bottom" width="96"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">1<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">12<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">4<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="center" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: center;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">8<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15pt; mso-yfti-irow: 2;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 113.25pt;" valign="bottom" width="151"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">monthly draws<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1in;" valign="bottom" width="96"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>15,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>180,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>60,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;"> </span>120,000 <o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15pt; mso-yfti-irow: 3;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 113.25pt;" valign="bottom" width="151"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">deferred comp<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1in;" valign="bottom" width="96"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>10,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>120,000 <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>-<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 15pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>80,000 <o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 17.25pt; mso-yfti-irow: 4;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 113.25pt;" valign="bottom" width="151"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">"make
whole" pymt<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1in;" valign="bottom" width="96"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>-<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>-<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>-<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>40,000 <o:p></o:p></span></u></div>
</td>
</tr>
<tr style="height: 17.25pt; mso-yfti-irow: 5;">
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 113.25pt;" valign="bottom" width="151"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";">total<o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 1in;" valign="bottom" width="96"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>25,000 <o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>300,000 <o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>60,000 <o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>240,000 <o:p></o:p></span></u></div>
</td>
</tr>
<tr style="height: 17.25pt; mso-yfti-irow: 6; mso-yfti-lastrow: yes;">
<td colspan="2" nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext; border-style: none solid solid; border-width: 0px 1pt 1pt; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 185.25pt;" valign="bottom" width="247"><div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>compensation per month <o:p></o:p></span></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>25,000 <o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 76.5pt;" valign="bottom" width="102"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>15,000 <o:p></o:p></span></u></div>
</td>
<td nowrap="" style="background-color: transparent; border-color: rgb(0, 0, 0) windowtext windowtext rgb(0, 0, 0); border-style: none solid solid none; border-width: 0px 1pt 1pt 0px; height: 17.25pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt; width: 81pt;" valign="bottom" width="108"><div align="right" class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; text-align: right;">
<u style="text-underline: double;"><span style="color: black; font-family: "Georgia","serif"; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman";"><span style="mso-spacerun: yes;"> </span>$<span style="mso-spacerun: yes;">
</span>30,000 <o:p></o:p></span></u></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Because
G&J pays its year-end distributions at the end of January, the make-whole
payment by NLF to the former G&J lateral partner is $20,000 and the average
monthly compensation for this lateral is $27,000 per month over 10 months.</span><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn3" name="_ednref3" style="mso-endnote-id: edn3;" title=""><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[iii]</span></span></span></a></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p> </o:p></span><br />
<span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">The former JLY requires a
make-whole payment of $40,000 simply due to how JLY manipulates its year-end
distribution funding which delays lateral movement 2 months longer than firms
like G&J.<span style="mso-spacerun: yes;"> </span>As a result, NLF pays the
former JLY lateral partner $30,000 a month over the 8 months of the transition year.</span>
<br />
<div style="mso-element: endnote-list;">
<hr align="left" size="1" width="33%" />
<div id="edn1" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref1" name="_edn1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">[i]</span></span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Granted there are
firms who pay year-end distribution on or about December 31 each year.<span style="mso-spacerun: yes;"> </span>Law firms taxed as corporations pay their
bonuses before year-end to avoid double taxation on profits.<span style="mso-spacerun: yes;"> </span>There are a few partnerships who similarly
like to make these payments between Christmas and New Year’s.<span style="mso-spacerun: yes;"> </span>Nevertheless, even in these situations
partners rarely announce their intentions to depart until after these payments
are made.<span style="mso-spacerun: yes;"> </span>So, considering partnership
“notice” provisions, delays due to notifying clients and simple good manners,
there is usually a 30-day transition period (if not more) between year-end and
a lateral move.<span style="mso-spacerun: yes;"> </span>That 30-day period
represents one month of deferred compensation for the current year which will
be “left on the table” when the partner leaves.</span><span style="font-family: "Georgia","serif"; font-size: 11pt;"><o:p></o:p></span></div>
</div>
<div id="edn2" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref2" name="_edn2" style="mso-endnote-id: edn2;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">[ii]</span></span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Georgia","serif"; font-size: 12pt;">These are real
firms and the year-end distribution dates are factual.<o:p></o:p></span></div>
</div>
<div id="edn3" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref3" name="_edn3" style="mso-endnote-id: edn3;" title=""><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-hansi-theme-font: minor-latin;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">[iii]</span></span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Georgia","serif"; font-size: 12pt;">This is $2,000
more monthly than what it cost G&J (<i style="mso-bidi-font-style: normal;">see,
</i>in the Fact Pattern narrative).<span style="mso-spacerun: yes;">
</span>Assuming the former G&L partner receives no increase the following
year, the monthly cost to NLF in 2014 reverts back to $25,000 a month.<span style="mso-spacerun: yes;"> </span>(Aren’t numbers fun?)<o:p></o:p></span></div>
</div>
</div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com0tag:blogger.com,1999:blog-5361838211256809839.post-50466673063132773002012-09-20T10:53:00.000-07:002012-09-20T10:53:44.271-07:00Top 10 Signs the New Paralegal is Obsessed with Star Trek<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Top
10 File<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
</td>
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<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p>September 20, 2012</o:p></span></div>
</td>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Top 10 Signs the New
Paralegal is Obsessed with Star Trek<o:p></o:p></span></b></div>
</td>
</tr>
</tbody></table>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;">10.
– Reprograms your Outlook calendar so all of today's appointments appear as Stardate 66186.8.<o:p></o:p></span><br />
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>9. – Framed photograph on desk is inscribed, <i style="mso-bidi-font-style: normal;">“With love, the red-uniformed security
officer who gets killed in the first five minutes of <u>The City on the Edge of
Forever</u>.”</i><b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>8. – Word “Romulan” appears in work product
more often than it should.<span style="mso-spacerun: yes;"> </span><b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>7. – Attempts to mind meld with prospective jurors
during voir dire.<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>6. – Constantly using the phrase “Set Phasers
to Litigious.”<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>5. – Describes new haircut as “the Spock.”<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>4. – Asks for FMLA time-off due to a Pon Farr
emergency.<b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>3. – Keyboard looks like this:</span><br />
</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGiy7H1Vtpcm1faUTdsFFCnfmgDzyVQcZhqZQbkwbU4cWP90W8eB9ubNIonDH0dKVo0yVOyVBKKdQCweY6kmbT0gmgDU52rXdiySeqjMGDqCwzNX8yaYAgg_0PIAleas6zyX0BuZHohHA/s1600/4L-keyboard-graphic.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="50" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGiy7H1Vtpcm1faUTdsFFCnfmgDzyVQcZhqZQbkwbU4cWP90W8eB9ubNIonDH0dKVo0yVOyVBKKdQCweY6kmbT0gmgDU52rXdiySeqjMGDqCwzNX8yaYAgg_0PIAleas6zyX0BuZHohHA/s400/4L-keyboard-graphic.jpg" width="400" /></a></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>2. – Comments that your Friday casual attire
is “highly illogical.”<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>1. – Whenever anything goes wrong, you hear "KHAAAAAAAN!!!!!"</span></div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com1tag:blogger.com,1999:blog-5361838211256809839.post-15552659043157857382012-09-20T10:50:00.000-07:002012-09-20T10:50:15.259-07:00Top 10 Signs It's Time for the Managing Partner to Step Down<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Top
10 File<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p>September 20, 2012</o:p></span></div>
</td>
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<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Top
10 Signs It’s Time for Your Firm's Managing Partner to Step Down</span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";"><span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;">10. – Last time he argued before the U.S. Supreme
Court, Clarence Thomas asked him a question.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>9. – Hasn’t brought in a new client since
Studebaker Motors.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>8. – Refuses to upgrade from his Commodore 64.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>7. – Every time he walks into a courtroom,
exclaims, “Why did I come in here?”<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>6. –<span style="mso-spacerun: yes;">
</span>After beginning a story about the Framers’ Original Intent, lapses into
bawdy tales about having gone bar hopping with Ben Franklin.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>5. – His idea of causal Friday is to dress
like former Chief Justice Oliver Ellsworth.<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[i]</span></span></span></span></a><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>4. – Keeps calling Dick Cheney to arrange
another hunting trip.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>3. – He hasn’t updated his blog in over 2
weeks.<span style="mso-spacerun: yes;"> </span>(Oops, sorry, that’s a sign I
should retire.)<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>2. – Spent all of the last partners’ meeting
talking to an empty chair.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt 21.75pt; mso-list: l0 level1 lfo1; text-indent: -18.75pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt; mso-bidi-font-family: Georgia; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">1.<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>You catch him reading one of these lame Top 10 Lists.</span><span style="font-family: "Georgia","serif";"><o:p></o:p></span></div>
<hr align="left" size="1" width="33%" />
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref1" name="_edn1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">[i]</span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Georgia","serif"; font-size: 12pt;">Oliver Ellsworth:</span><br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi54jQDrRiJ9wvH7LuPozirnoITBonX8D6QzUFAEVkdD8WRyFa37UHNQGSvdhUYY3BWh7SnYoksGixQygbHE6Irpn9lt4lqZBcUiXONpLn-4HJ91WludEhVmfXp-ZBYaIl0fHfRVhBTFs8/s1600/003_ellsworth%255B1%255D.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi54jQDrRiJ9wvH7LuPozirnoITBonX8D6QzUFAEVkdD8WRyFa37UHNQGSvdhUYY3BWh7SnYoksGixQygbHE6Irpn9lt4lqZBcUiXONpLn-4HJ91WludEhVmfXp-ZBYaIl0fHfRVhBTFs8/s200/003_ellsworth%255B1%255D.jpg" width="155" /></a></div>
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p></o:p></span><br />4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com0tag:blogger.com,1999:blog-5361838211256809839.post-87872544106759235282012-09-20T10:49:00.002-07:002012-09-20T10:49:16.954-07:00Top 10 Ways Baseball will be Different when Bears are allowed to Play<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Top
10 File<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Mike
Marget<o:p></o:p></span></div>
</td>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><o:p>September 20, 2012</o:p></span></div>
</td>
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<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">Top
10 Ways Baseball will be Different when Bears are allowed to Play<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">A
few weeks ago I visited the Bronx – both the Zoo at 2300 South Blvd. and the
Stadium at 161<sup>st</sup> and River Avenue.<span style="mso-spacerun: yes;">
</span>This got me thinking.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt; text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt;">Top 10 Ways Baseball will be Different when Bears are allowed
to Play<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Georgia","serif"; font-size: 12pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">[i]</span></b></span></span></span></a><o:p></o:p></span></b></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;">10.
– Instead of the “hidden ball” trick, runners will be lured off base by the
shortstop juggling live salmon.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>9. – Trash receptacles throughout the ballpark
always will be tipped over.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>8. – In the dugouts chewing sunflower seeds will
be replaced by grub-infested bark.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>7. – Flunk a drug test; continue your baseball
career in disguise wearing a bear suit.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>6. – For reasons too complicated to explain,
the Miami Marlins will cease to exist.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>5. – Term “southpaw” will take on a slightly
different meaning.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>4. – During 7<sup>th</sup> inning stretch, the
team might start hibernating.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>3. – Pitching changes will involve tranquiller
darts. <o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>2. – Concession stands will begin selling “too
hot,” “too cold” and “just-right” porridge.<o:p></o:p></span></div>
<br />
<div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif"; font-size: 12pt;"><span style="mso-spacerun: yes;"> </span>1. – Instead of a pregame Air Force flyover, <u>3
WORDS</u>: helicopter, Palin, rifle.<o:p></o:p></span></div>
<hr align="left" size="1" width="33%" />
<br />
<div style="mso-element: endnote-list;">
<div id="edn1" style="mso-element: endnote;">
<div class="MsoEndnoteText" style="margin: 0in 0in 0pt;">
<a href="http://www.blogger.com/blogger.g?blogID=5361838211256809839#_ednref1" name="_edn1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Calibri","sans-serif"; font-size: 10pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;">[i]</span></span></span></span></a><span style="font-family: Calibri; font-size: x-small;">
</span><span style="font-family: "Georgia","serif"; font-size: 11pt;">Also, the Yankees
will start signing all the best bears to long-term contracts; but that really isn't different.<o:p></o:p></span></div>
</div>
</div>
4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com0tag:blogger.com,1999:blog-5361838211256809839.post-64548671208833452682012-08-27T12:50:00.000-07:002012-08-30T12:56:00.136-07:00Large Firm/Small Firm Acct'g & IT Spending Gap<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Parsley
Sage Rosemary & Ginsburg llp<o:p></o:p></span></b></div>
<div style="text-align: center;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif"; font-size: 9pt;">“always a reasonable result for a
reasonable fee, always”<o:p></o:p></span></i></div>
<div style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">MEMORANDUM<o:p></o:p></span></b></div>
<br />
<table border="0" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: currentColor; mso-border-insideh: none; mso-border-insidev: none; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
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<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">To:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Management
Committee<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">From:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Mike Marget<o:p></o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 2;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Date: <o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";"><o:p> August 27, 2012</o:p></span></div>
</td>
</tr>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;">
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: "Copperplate Gothic Light","sans-serif";">Re:<o:p></o:p></span></b></div>
</td>
<td style="background-color: transparent; border: rgb(0, 0, 0); padding: 0in 5.4pt; width: 423.9pt;" valign="top" width="565"><div class="MsoNoSpacing" style="margin: 0in 0in 0pt;">
<span style="font-family: "Georgia","serif";">Large
Firm/Small Firm Accounting & IT Spending Gap<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<br />
<span style="font-family: "Georgia","serif";"><o:p><span style="font-family: Times New Roman;">
</span><span style="font-family: "Georgia","serif";">The largest U.S. law firms spend
<b style="mso-bidi-font-weight: normal;">$39,000 <i style="mso-bidi-font-style: normal;">per lawyer</i></b> each year to run their accounting and IT operations.
Small law firms make do with just <b style="mso-bidi-font-weight: normal;">$12,000
<i style="mso-bidi-font-style: normal;">per lawyer</i></b> to run the same two
back office tasks. Basic microeconomics suggest the numbers should be reversed
with the smaller firms spending more per capita; not the other way around.<o:p></o:p></span></o:p></span><br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjPH5ApB_okKkqLFRBFFX9GL9UmpjW7KJdNNxqJMp_kXDia1ztoPcCwPCr_KFgwozhoy4_YnA0nTtzKuoAIbwBBsDsPaCBad7demLaM1f9F2yJkJX_IWKTCCyD4k_HK1mW03z9dGWBXUo/s1600/Rethinking+the+Back+Office_final_p2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgjPH5ApB_okKkqLFRBFFX9GL9UmpjW7KJdNNxqJMp_kXDia1ztoPcCwPCr_KFgwozhoy4_YnA0nTtzKuoAIbwBBsDsPaCBad7demLaM1f9F2yJkJX_IWKTCCyD4k_HK1mW03z9dGWBXUo/s320/Rethinking+the+Back+Office_final_p2.jpg" width="320" /></a></div>
<span style="font-family: "Georgia","serif";"><span style="font-family: Times New Roman;">
</span>
<span style="font-family: "Georgia","serif";">This $27,000 <i style="mso-bidi-font-style: normal;">per lawyer</i> large firm/small firm
spending dichotomy was gleaned from two legal industry financial studies:<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif";">the
Small Firm Economic Survey from ALM Legal Intelligence and The National Law
Journal captured financial information from 58 law firms with 20 or fewer
lawyers; and<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";">
</span></span></span><span style="font-family: "Georgia","serif"; font-size: 7pt; mso-fareast-font-family: Symbol;"><span style="mso-spacerun: yes;"> </span></span><span style="font-family: "Georgia","serif";">a private study conducted by
PricewaterhouseCoopers’ Law Firm Statistical Survey of 31 large national law
firms with 450+ lawyers (average size 781).<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><br />
<span style="font-family: "Georgia","serif";">A spending difference of <b style="mso-bidi-font-weight: normal;">$39,000 versus $12,000<i style="mso-bidi-font-style: normal;">per lawyer</i></b> would be astounding for any budget item. Even more
remarkable is this $27,000 difference applies to two key back office functions:
(a) <b style="mso-bidi-font-weight: normal;">accounting</b>, where billing is
performed and actionable financial data is generated to help manage the
business and (b) <b style="mso-bidi-font-weight: normal;">IT</b>, which includes
the technology resources and support needed to execute daily legal work. <o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><br />
<span style="font-family: "Georgia","serif";">Regardless of a law firm’s size,
a $39,000 <i style="mso-bidi-font-style: normal;">per lawyer </i>budget is going
to provide significantly greater quantity and quality support services than
$12,000. Any 10 large firm lawyers can count on $390,000 worth of accounting
and IT support, while an entire 10-person law firm is strapped with a $120,000
annual budget cap. Yet despite the substantial <i style="mso-bidi-font-style: normal;">per lawyer</i> budget difference, small law firms require the same
robust resources (technology and personnel) to run their practices and their
business as their larger firm competitors. Think New York Yankees vs. Kansas
City Royals. The Yankees are going to field a much different type of team, have
a deeper bench of skilled players and related resources (e.g., training
facilities; farm system) than the Royals. Nevertheless, the Royals are expected
to compete despite the Yankee’s deeper pockets.<o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><br />
<span style="font-family: "Georgia","serif";">After stumbling upon the
information from the two law firm financial studies, two questions occur to me:
</span><br />
</span><br />
<span style="font-family: "Georgia","serif";"><div style="margin-left: 0.25in; mso-list: l0 level1 lfo2; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">1)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-family: "Georgia","serif";">What extras do large firms enjoy as a
result of the deeper pocket spending? </span></div>
<div style="margin-left: 0.25in; mso-list: l0 level1 lfo2; text-indent: -0.25in;">
<span style="font-family: "Georgia","serif"; mso-bidi-font-family: Georgia; mso-fareast-font-family: Georgia;"><span style="mso-list: Ignore;">2)<span style="font-size-adjust: none; font-stretch: normal; font: 7pt/normal "Times New Roman";"> </span></span></span><span style="font-family: "Georgia","serif";">What steps can smaller firms take to
level the playing field despite the spending difference?<o:p></o:p></span></div>
<span style="font-family: Times New Roman;">
</span><br />
<span style="font-family: "Georgia","serif";">In response to the first
question, large firms spend their additional money on more expensive support
staff and software. Large firms typically field big help desk and training
staffs and employ numerous individuals with MBAs, CPAs and other initialed
credentials at various levels throughout their accounting and IT operations.
They also tend to purchase more elaborate and sophisticated software (a) to
handle their financial back office and (b) to make their lawyers more efficient
and productive with case management, document management, version control and
document assembly tools. <o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><br />
<span style="font-family: "Georgia","serif";">Lacking a large firm’s deep
pockets, small firms turn to <i style="mso-bidi-font-style: normal;">small firm
centric </i>accounting and practice management systems, devoid of sophisticated
financial and front office tools which the larger firms rely upon in hopes of
obtaining better financial data and improved lawyer efficiency and
productivity. <o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><br />
<span style="font-family: "Georgia","serif";">As to what small law firms can
do to narrow the spending gap (the second question), advances in cloud computing
and desktop virtualization mean accounting and IT operations no longer need be
performed in the same building or even the same city as the law firm’s front
office. These technology advances make outsourcing a viable option for small
law firms. <o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><br />
<span style="font-family: "Georgia","serif";">Outsourcing permits small firms
to obtain large firm accounting and IT resources, without making large upfront
capital investments or adding large firm staff overhead. With outsourcing,
small firms can call upon experienced former large firm CFOs, Controllers and
IT Managers on a “time-share” basis; the type of staff commonplace in large
firms but beyond the budget of most small firms. <o:p></o:p></span><br />
<span style="font-family: Times New Roman;">
</span><br />
<span style="font-family: "Georgia","serif";">Usually more sophisticated
resources require higher costs. Outsourcing service providers are able to
reduce operating and capital costs, improve operational efficiency and free-up
firm management time to focus on more profitable pursuits. (More on how
outsourcing service providers manage to “do more for less” and remain in
business, in a later memo.)</span></span><br />4LLaw Serviceshttp://www.blogger.com/profile/14107185361728393690noreply@blogger.com4