Outside Counsel Policy

Several of you have inquired whether the recent memorandum to employees regarding cost savings opportunities is intended to affect the policies regarding the selection of outside counsel. The answer is no. Outside counsel and their fee arrangements will continue to be selected and negotiated only by the legal department, and I will continue to approve (or disapprove) each proposed counsel engagement that you recommend to me. George Wasaff of GSS and I will work together to ascertain whether there are cost savings opportunities that should be applied to our outside legal counsel, but GSS will not be involved in the retention of outside counsel or in any negotiatons with outside counsel. The goal is, as it has been, to be cost effective and intelligent in our selection and compensation of outside counsel. Please call me if you have any questions. Jim