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Teamsters, was th<strong>at</strong> a cost pl<strong>us</strong> contract, and do<br />

<strong>you</strong> know were the costs of litig<strong>at</strong>ion included directly<br />

in th<strong>at</strong> contract <strong>or</strong> was it a negoti<strong>at</strong>ed contract <strong>at</strong> a<br />

fixed per claim processed?<br />

MR. WILLIAMS: I am uncertain of th<strong>at</strong> inf<strong>or</strong>ma­<br />

tion. We <strong>have</strong> no -- we <strong>have</strong> no inf<strong>or</strong>m<strong>at</strong>ion th<strong>at</strong> would<br />

lead <strong>us</strong> to believe th<strong>at</strong> the defense costs were added to<br />

the amounts of money th<strong>at</strong> flowed from the Teamsters to<br />

the Amalgam<strong>at</strong>ed firm and the other firm.<br />

ACTING CHAIRMAN SKINNER: Now the $4.125 mil­<br />

lion -- $1.5 million was reimbursed by an insurance<br />

company who I assume takes certain rights th<strong>at</strong> the Fund<br />

has. Do <strong>you</strong> know if there are any of these defendants<br />

had any agreements with the vario<strong>us</strong> entities th<strong>at</strong> were<br />

paying the money th<strong>at</strong> they would indemnify the Funds if<br />

in fact they were convicted.<br />

MR. WILLIAMS: We know of no agreements and we<br />

believe th<strong>at</strong> there are no such agreements.<br />

ACTING CHAIRMAN SKINNER: So in the c<strong>or</strong>p<strong>or</strong><strong>at</strong>e<br />

w<strong>or</strong>ld where a policy is to advance legal fees f<strong>or</strong> c<strong>or</strong>­<br />

p<strong>or</strong><strong>at</strong>e officers subject to an indemnific<strong>at</strong>ion if they are<br />

convicted, <strong>you</strong> are unaware of any such provisions in any<br />

of these defendants' cases, and <strong>you</strong> are aware of no<br />

indemnific<strong>at</strong>ion payments by convicted defendants th<strong>at</strong><br />

322

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