FOX ROTHSCHILD LLP Yann Geron Nicole N.

Santucci (Of Counsel) 100 Park Avenue, Suite 1500 New York, New York 10017 (212) 878-7900 Attorneys for Yann Geron, Chapter 7 Trustee

Hearing Date: October 19, 2011 Hearing Time: 10:00 a.m. Objection Deadline: October 12, 2011

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ------------------------------------------------------x In re : : THELEN LLP, : : Debtor. : ------------------------------------------------------x

Chapter 7 Case No. 09-15631 (ALG)

NOTICE OF HEARING ON TRUSTEES MOTION, PURSUANT TO BANKRUPTCY RULE 9019, FOR AN ORDER APPROVING STIPULATIONS RESOLVING TRUSTEES CLAIMS ASSERTED AGAINST CERTAIN FORMER PARTNERS OF THE DEBTOR TO COUNSEL TO CITIBANK, COUNSEL TO THE SETTLING PARTNERS, ALL KNOWN CREDITORS AND PARTIES-IN-INTEREST, ALL PARTIES HAVING FILED NOTICES OF APPEARANCE AND THE OFFICE OF THE UNITED STATES TRUSTEE: PLEASE TAKE NOTICE that, upon the application, dated September 27, 2011 (the Application), of Yann Geron (the Trustee), as chapter 7 trustee of the estate of Thelen LLP (the Debtor), the above-captioned debtor, for an order, pursuant to Rule 9019 of the Federal Rules of Bankruptcy Procedure, approving stipulations of settlement between the Trustee and certain former partners of the Debtor, a hearing will be held on the 19th day of October, 2011, at 10:00 a.m., or as soon thereafter as counsel can be heard (the Hearing), before the Honorable Allan L. Gropper, United States Bankruptcy Judge, in his courtroom (#617) at the United States Bankruptcy Court, One Bowling Green, New York, New York 10004, to consider the relief sought by the Application. PLEASE TAKE FURTHER NOTICE that the Trustee has created an informational website concerning this case, where you may access the Application, as well as other relevant information concerning this case, including important dates and deadlines. This website may be accessed at http://omnimgt.com/SBLite/ThelenLLP . PLEASE TAKE FURTHER NOTICE that the Application has been filed electronically with the Clerk of the United States Bankruptcy Court for the Southern District of New York, and may be reviewed by all registered users of the Courts website at http://www.nysb.uscourts.gov. Copies of the Application may be obtained by telephonic or e-

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mail request to the undersigned counsel for the Trustee, Attn: Alexis Lucisano, Legal Assistant (Tel: (212) 878-7958; e-mail: alucisano@foxrothschild.com). PLEASE TAKE FURTHER NOTICE that the general terms of the settlements are as follows: Trustees Claims Asserted Against the Former Partners of the Debtor: The Trustee has asserted various theories of claims and causes of action against the Debtors former equity partners, including contract claims against most or all of the Debtors former equity partners arising primarily from compensation they received in 2007 and 2008 as well as their failure to meet capital requirements (collectively, all potential claims and causes of action against former partners are referred to hereinafter as the Claims). The Settling Partner Group: The Trustee has engaged in lengthy discussions with a group of approximately 100 of the Debtors dissolution partners who are collectively represented by one law firm (the Partner Group). The Trustee and virtually all of the former partners in the Partner Group have come to a consensual resolution of the Claims, which have been memorialized in individual settlement agreements.1 The Settlement Amount: As part of the overall settlement negotiations, the Trustee and the Partner Group exchanged relevant information regarding the facts and law underlying the Claims, as well as potential defenses which may be asserted in response to the Claims. The compromised amount to be paid by the settling members of the Partner Group totals approximately $4,980,000.2 This amount represents a discount on certain, but not all, aspects of each Settling Partners alleged indebtedness to the Debtor, and certain portions of the alleged claims are being repaid in full. Releases and Bar Order The Trustee and the settling members of the Partner Group will exchange releases which provide that (i) the settling partners will be released from any and all Claims held by the Trustee, the Debtor or its estate (including a bar from commencing or continuing related third-party claims), with the exception of any claims which arise from or under the unfinished business doctrine analyzed in Jewel v. Boxer3, and (ii) that the settling partners will release the Trustee, the Debtor and its estate, from corresponding claims, except
1

Due to a strict confidentiality provision in the individual settlement agreements, the Trustee filed a motion seeking authorization to file them under seal. Therefore, the contemplated settlements will be only be referenced in general terms for the purpose of allowing creditors and parties in interest to evaluate the reasonableness of the contemplated settlements under Bankruptcy Rule 9019.
2

To the extent the settlements are approved by the Bankruptcy Court, this amount is subject to a 5% early payment discount for those partners who pay their respective settlement amounts in full within two business days after an order approving the settlements becomes final and non-appealable.
3

The terms of the settlement significantly limit the Trustees recourse against the settling partners arising from the Jewel claims by virtue of covenants made under the same by the Trustee.

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that the parties reserve their rights with respect to proofs of claim previously filed for any amounts or obligations other than claims seeking a return of capital. Most Favored Terms: In order to assure all partners of egalitarian treatment on Trustee claims, the Trustee has agreed that he will not enter into any settlement with any other former partners of the Debtor on terms materially less favorable to the Debtors estate, viewed in the totality of the circumstances, than those contained in the settlement agreements at issue. PLEASE TAKE FURTHER NOTICE that the foregoing constitutes only a general summary of the salient settlement terms. All parties are encouraged to review the Application in its entirety before reaching a conclusion regarding the settlement. PLEASE TAKE FURTHER NOTICE that the Trustee has determined that the contemplated settlements are fair, reasonable, and in the best interests of the Debtor, its estate and creditors. PLEASE TAKE FURTHER NOTICE that objections, if any, to the relief sought in the Application shall be made in writing, filed with the Court electronically in accordance with General Order M-242 by registered users of the Courts electronic case filing system and, by all other parties in interest, mailed to the Clerk of the United States Bankruptcy Court, One Bowling Green, New York, New York 10004, on a 3.5 inch floppy disk, preferably in Portable Document Format (PDF), Microsoft Word, WordPerfect, or any other Windowsbased word processing format (with a hard copy delivered directly to the Chambers of the Honorable Allan L. Gropper, United States Bankruptcy Judge, United States Bankruptcy Court, One Bowling Green, New York, New York 10004), and served in accordance with General Order M-242 or other form upon (i) Fox Rothschild LLP, 100 Park Avenue, Suite 1500, New York, New York 10017, Attn: Yann Geron, Esq., (ii) Klestadt & Winters, LLP, 570 Seventh Avenue, 17th Floor, New York, New York 10018, Attn: Tracy L. Klestadt, Esq. and Sean C. Southard, Esq., and (iii) Office of the United States Trustee, 33 Whitehall Street, 21st Floor, New York, New York 10004, Attn: Susan D. Golden, Esq., so as to be actually received no later than seven days prior to the Hearing. Dated: New York, New York September 27, 2011 FOX ROTHSCHILD LLP Attorneys for Yann Geron, Chapter 7 Trustee By: /s/ Yann Geron Yann Geron Nicole N. Santucci (Of Counsel) 100 Park Avenue, Suite 1500 New York, New York 10017 (212) 878-7900

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