1. How is a Plexus transaction managed among the three firms? Does the client need to manage three separate law firms?

At the commencement of an engagement, the Plexus firms, together with the client, select a lead counsel from among the three firms as the lead transaction counsel. The lead transaction counsel, the client and representatives from each of the Plexus firms, identifies the project team utilizing the best available resources from among the three firms. Assignment of attorneys to the project team will be based on relevant factors including expertise, proximity to the client, level of experience, and availability. Although each firm retains responsibility for the quality of the work of its lawyers, the lead transaction counsel coordinates the work of the project team.
From the client’s perspective, management of the project and communication to the transaction team will be through the project team leader.

2. How is the work allocated among the three firms? Who decides which personnel will work on a particular transaction?

It is the responsibility of the transaction team leader and the client to assemble the transaction team. Proximity to the client, experience, and availability are the primary factors considered in staffing the project.

3. How are Plexus matters billed?

Plexus matters will be billed through the Plexus firm whose attorney is acting as project team leader. All members of the transaction team will be reflected as timekeepers and all expenses will be billed on a single invoice.

4. Is there an inherent inefficiency in having three separate firms, spread across North America, working on one transaction?

No. Complex transactions are now almost exclusively conducted through the use of technology such as Internet, teleconferencing, extranets, and videoconferencing. Whether the project parties are across the street or across the country, modern business protocol requires that communications among parties and their advisors be conveyed electronically. To the extent that a project requires that certain personnel be within close proximity, particularly the transaction leader and the client, the structure of the transaction team will reflect that those members are put on the team.

5. Are there specific areas within the energy industry in which Plexus is most interested?

Yes. Plexus was formed to provide legal support for large development projects, mergers and acquisitions, and other engagements requiring either teams of experienced energy lawyers committed to a project over a long period of time or large teams of experienced lawyers committed to completing an assignment such as due diligence over a short period of time. Transactions involving multi-jurisdictional considerations and extensive due diligence are particularly well suited for a Plexus engagement. Transactions involving power plants, LNG terminals, and refineries often require the resources offered by the Plexus firms.

6. Why did the three firms decide to undertake this initiative, and how did they select each other?

Each of the Plexus firms independently has a mature, substantial energy practice group with varying levels of experience in different areas of the energy industry. For example, Ballard Spahr has a nationally recognized public finance practice involving energy transactions, Jackson Walker has one of the most sophisticated oil and gas practices in the United States, and McMillan is recognized as one of the leading energy focused firms in Canada. Vertically integrated energy companies require project teams which offer comprehensive knowledge within the industry. The Plexus firms together offer not only the comprehensive knowledge required, but the depth to staff projects with experienced lawyers in a way which no other firm in North America can do. The Plexus firms were brought together through their membership in Globalaw, a network of more than 300 law firms throughout the world. The combination of geographic coverage from New England through the mid-Atlantic, including New York, Washington, D.C., Texas, and the Mountain West including Canada, offered the type of continental presence which the Plexus firms felt would give them a competitive edge in attracting clients and staffing projects.

7. What are the advantages to a client of using Plexus over using one large national law firm?

The primary advantage is that the comprehensive experience and resources offered by Plexus and the resources offered by Plexus firms substantially exceed that of any one firm in the U.S. or Canada.  Together the Plexus firms have over 900 lawyers and more than 100 experienced energy attorneys in the practice group. Another advantage is that a conflict of one of the Plexus firms would not prohibit the other Plexus firms from working on the project. In addition, the Plexus firms have a broader geographic coverage than virtually any firm in the U.S. or Canada and can provide legal opinions under the laws of most states, including New York, Delaware, and Louisiana, as well as Canada.

8. What are the advantages to the Plexus firms of this arrangement?

By offering a comprehensive scope of legal service we are better able to serve not only our existing clients, but prospective clients within our respective markets.

9. How is a potential client selected as a “Plexus” target as opposed to a target of an individual firm?

Each of the Plexus firms has a substantial energy practice with firm clients who are not Plexus clients. However, the Plexus firms view the resources of the collective group as merely an extension of their own firms’ energy practice group. A typical Plexus client is an integrated energy company which either has projects requiring a diverse team of transaction attorneys or has projects outside of the jurisdiction or market of one of the Plexus firms. If the client will be better served, the Plexus firms recognize that assembling a team of Plexus lawyers works to the mutual benefit of the firm itself, the client, and the other Plexus members.

10. How are the Plexus rates determined?

Subject to an alternative rate structure which would be agreed upon among the client and the Plexus firms, the rates charged would be at standard hourly rates established by each of the Plexus firms.

11. How are Plexus revenues divided?

The fees are divided according to collections attributable to the respective billings of each of the firms whose attorneys serve on the transaction team. Plexus firms do not share fees.

12. Can a Plexus target select only one or two of the firms to do its work?

Plexus was designed to utilize the best available resources from the three firms. If one of the firms does not have the particular resources required for the transaction, then that firm would not participate in the engagement. If one of the firms has a conflict or the client requests that one of the firms not participate in the engagement, that firm would not participate in the transaction.

13. How is Plexus governed; i.e., how are decisions about the initiative made among the three firms?

Each of the three firms assigns a representative and discusses issues coming before the group. The firms expect to achieve a consensus before going forward on substantive matters.

14. How does Plexus deal with conflicts of interest? If one of the firms has a conflict, does that conflict out all three firms?

Conflicts are dealt with by each of the Plexus firms in the same way that conflicts are dealt with outside the context of Plexus and in accordance with the rules of professional responsibility in the relevant state or states or province. If one of the firms has a real or perceived conflict with a client on a given transaction, that firm would not participate in the transaction. However, the conflict of one of the Plexus firms would not have any bearing on the ability of the other two firms to go forward and represent the client on the transaction.

15. Why should a leading energy company use Plexus?

The experience and knowledge offered by the Plexus firms in all facets of the energy industry are unsurpassed. Plexus offers a truly continental energy practice and unlike many law firms, has the resources to staff transactions with experienced energy lawyers instead of inexperienced associates. We believe that experience makes the difference in closing deals and through Plexus, clients get experienced project leadership.