Mr. Frank Daly:

-----activities in Northern Ireland. I do not think Brown Rudnick's experience in Northern Ireland was confined to PIMCO.

This is important in terms of investigations that have been mentioned. Cerberus is subject to the United States Foreign Corrupt Practices Act as well as the UK's Bribery Act which clearly outline inappropriate practices in dealing with foreign governments and their agencies. We take FCPA and UKBA with the utmost seriousness. As part of the agreement with Brown Rudnick, they signed FCPA and UKBA conforming declarations. That, combined with them being a reputable international law firm, gave us complete comfort to retain them under the success fee based arrangement.

Later that day - this relates to Brown Rudnick - we got an e-mail to say that their general counsel, who would presumably be their head of legal compliance, had been travelling internationally the previous night and was only able to review the earlier e-mail after I sent it. He negotiated the Brown Rudnick agreement and suggested that in the spirit of completeness of disclosure that "we inform you that we are aware that Brown Rudnick has sub-contracted part of their work to the Belfast law firm Tughans and that Brown Rudnick would share 50% of its success fee with Tughans".

Prior to retaining Brown Rudnick, we also did a background check on Tughans. In addition, the agreement with Brown Rudnick had as a prior condition to the payment of the success fee that Brown Rudnick shall obtain and provide to Cerberus a written certification from Tughans regarding their conforming to requirements of the FCPA and the UKBA. We are unaware of any other material success fee arrangements which should be disclosed in the spirit of completeness. All of that led to Cerberus, and I have already put it on the record at other Committee of Public Account meetings, giving us an unequivocal declaration in relation to success fees.