UNIVERSITY OF PITTSBURGH POLICY 07-06-06

CATEGORY:       PERSONNEL
SECTION:        Employee Support
SUBJECT:        Faculty and Staff Indemnification
EFFECTIVE DATE: May 1, 2002 Revised
PAGE(S):        2

I.   SCOPE

     This policy establishes the conditions under which the University
     will provide indemnification and legal defense to faculty and
     staff.

II.  POLICY

     A.   Except as prohibited by law, the University of Pittsburgh
          shall furnish each current and former employee of the
          University with legal defense and payment of judgments,
          fines, penalties, settlements and any other expenses
          actually and reasonably incurred in connection with an
          actual or threatened action, suit or proceeding, whether
          civil, criminal, administrative or investigative (such
          action, suit or proceeding hereinafter being referred to as
          "Action"), brought against such employee by reason of being
          or having been an employee of the University, or by reason
          of serving or having served the University as a member of or
          representative to a committee, board or other entity outside
          the University.  Any rights that accrue under this policy
          shall inure to the benefit of the employee's estate in the
          event of the employee's death.

     B.   Defense and/or indemnification under Paragraph A shall be
          available only if all of the following conditions are met:

          - Such employee's actions or omissions were within the
            scope of his or her University duties and authority in
            teaching, research and administrative activities for
            which an employee is paid by the University.

          - Such employee's actions or omissions were in good faith,
            and in a manner reasonably believed to be lawful and in
            the best interests of the University.

          - The acts or omissions did not constitute willful
            misconduct, gross negligence or recklessness.

     C.   Subject to all of the limitations contained in this policy
          and associated procedure, protection in this policy may, at
          the University's sole discretion, also be extended to:

          - Writing or publishing that has been or will be a basis
            for appraisal of the employee's job performance, that
            adds to the employee's professional knowledge and
            experience and that contributes to the employee's
            professional or academic field.

          - Professional activities, including public service, that
            are unambiguously related to the employee's function as a
            representative of the University, that add to the
            employee's professional knowledge and experience and that
            contribute to the general society, even though not
            carried out at the University's direction or under its
            control, provided such activities are not compensated by
            any other person or entity (other than for reasonable
            expenses or by honoraria no higher than the level paid by
            the federal government), e.g., service on accrediting
            commissions and on governmental advisory boards, and
            attendance at professional conferences.  The University
            reserves the right to decide in each case, based on the
            facts and circumstances, whether or to what extent to
            extend protection for the activities described in this
            paragraph C.

     D.   The protection in this policy shall not, among other things,
          extend to consulting or other outside professional or
          business activities for which the employee or an entity with
          which he or she is affiliated is entitled to receive
          compensation exceeding reasonable expenses.

     E.   The protection in this policy shall extend only to Actions
          in which an employee is a defendant or proposed defendant,
          and shall not extend to Actions that an employee may
          affirmatively initiate or propose initiating against any
          other persons or entities.

     F.   The protection in this indemnification policy shall not
          extend to defense and/or indemnification of an employee in
          an internal University proceeding.  Internal proceedings are
          those that are conducted by the University under University
          rules and guidelines.  There shall be two exceptions to this
          provision:

          1.An employee shall be eligible for defense and/or
            indemnification in an internal proceeding that arises
            from allegations made by an outside individual, agency,
            organization or interest group, if the outside party is
            already represented by legal counsel in the proceeding.
            An employee is eligible for defense and/or
            indemnification in such an internal proceeding once it
            reaches a formal stage (e.g., the investigation stage of
            a research integrity proceeding) and in an amount not to
            exceed $30,000.

          2.An employee who has been accused of research misconduct
            under the University's Research Integrity Policy and who
            has been fully exonerated of all charges of research
            misconduct in a Research Integrity Proceeding mandated by
            the federal government shall be eligible for
            indemnification in connection with his/her reasonable
            legal costs incurred in responding to the charges under
            the Research Integrity Policy.  If, however, an employee
            has been exonerated from charges of research misconduct
            but has been found to have committed research impropriety
            under the University's Research Integrity Policy in a
            Research Integrity Proceeding mandated by the federal
            government, the Committee on Indemnification shall decide
            whether or not to award the indemnification.  An employee
            is eligible for indemnification in such internal Research
            Integrity Proceedings for the reimbursement of reasonable
            legal costs necessary for the defense in an amount not to
            exceed $30,000.

     G.   The protection in this policy shall not extend to actions or
          omissions while an employee is on an unpaid leave of absence
          from the University.

          - Exceptions may be made at the University's sole
            discretion where an employee on leave is engaged in
            activities that are an extension of his or her University
            activities.

     H.   The protection in this policy shall not extend to medical or
          other professional liability with respect to which employees
          are protected under the University Health Center of
          Pittsburgh professional liability insurance program.

III. REFERENCE

     Procedure 07-06-06, Faculty and Staff Indemnification