Linklaters/Model Answer

To be used for training only

Dear Kwun,
By way of background, I am working with Chris at Linklaters as part of the Linklaters Project Pearl
team.
I understand you would like an update on the fees incurred for this matter. I have set out in the
table below a breakdown of fees for each phase of the project to date. This includes the work
done by our specialist teams.

Phase Estimated Actual fees Comments

fees (HKD) incurred
(HKD)

Due diligence 500,000 600,000  Due diligence phase is now

complete.
 The fees exceed our
estimate due to client
instructions to review
employment agreements
(which was initially
considered out of scope).

Transaction 1,000,000 1,007,500  The Corporate team is

documents completing the preparation
and negotiation of the
transaction documents. We
intend to circulate the final
SPA tomorrow.
 Our original estimate was
based on the Seller’s
lawyers preparing the first
draft of the SPA. As
instructed, we have instead
prepared the first draft of
the SPA.

Competition 100,000 80,000  Work for this phase is now

complete.

Total 1,600,000 1,687,500

Please don’t hesitate to call me if you have any questions. We will continue to keep you updated
on the status of fees as the matter progresses.
Kind regards,
Trainee