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MEMORANDUM

TO: Albert Meric \ "\ : )

FROM: . Kenneth ~e~

cc Donald Kunze
Robert Smith

DATE: January 10, 1994

RE: Meeting with Senator Bruno

Albany, NY

Bob Smith and, I had lunch with Senator Bruno, Timothy McGinn and David Smith of
McGinn, Smith & Co..

The purpose of this meeting was two-fold: 1) to go over the relationship with brokerage
business and the culinary account and 2) business in general that the Senator might be able
to help us with in the Albany area

I explained to the Senator that we would prefer that business be directed in a formal way
in writing from the trustees and/or the broker be the custodian on the account. A third
option would be if the broker was a consultant on the account and was being paid through
soft dollar. Failing all those options, I explained that if the trustees on an account verbally
express a desire that" we try to give them the business at the best execution, we will make
an effort In this case I made it very clear (based on your approval of this) that we would
put the equity business through them via the clearing house of Bear Stearns and Co.. I think
that they were satisfied with that because in initial conversations that I bad with the Senator,
I had not brought this option up. I talked to you after I had my initial conversation with the
Senator. I made it very clear that' the bond business would not go through them and they
understood.

We then discussed the relationship between their finn and our's. The Senator really just
wanted to know if he brings us into the situation and we get the business and it is because
of his efforts, would we be reciprocal in tenus of trying to get the business to the brokers.
I told him that in the past, we have been reciprocal when someone helps us get the business.
I made it clear that the client comes first and that the best execution is the key. I also made
it clear that we prefer that it be directed formally, but if not, we would still make every
effort as we have with oilier brokers in the past to make sure the business goes their way.

Bob made it clear that equities would not be a problem, but bonds could be a problem and
they understood.

CON FlDEN TIAl

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 I think it was a very direct and upfront conversation on both parts. I think. everyone knew
where they stood I do not think there were any problems. Bob and the Senator talked
about 4 or 5 counts on the Nurses, New York State Teachers, etc. where they can be
helpful

The Senator asked if there was any help he could give us on #19Q, He has a close
. relationship with Sam Fresina and he knows we are ~Qilll~ to lose some money there. I told
him that the:mone,y presently is directed through a rapfee to a broker.

If you disagree on this, please discuss this with Bob or me as soon as possible because I
could give the Senator a call. In addition, the Senator said he is going to try to help us with
the Teamsters. He has a velY close relationship with Whitey Bennett. I told him wbat the
situation with the Teamsters was. They are ready to bring in managers and I do not think
we are going to be included in the search. I am following up with the Senator tomorrow or
the next day to see how his conversation with Whitey turns out.

It was a positive meaning and I will follow-up and send a memo to you specifically with the
. names of employees from this firm so that you know who the stock trades should be directed
to.

Thank you. .

KHS/kge.

CONFIDENTIAL
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