As we see it, the sticking point is the league's insistence on "truthfulness" from Mr. Walsh. But truthfulness is in the eye of the beholder. As to Roger Clemens, Andy Pettitte technically isn't being "truthful" regarding Pettitte's Congressional testimony that Clemens admitted to using HGH. Though Clemens isn't inclined to call his good friend Pettitte a liar, Clemens could have taken that approach, if he had so elected.
In this case, a reasonable reading of the indemnity language exchanged by the parties could cause a reasonable person to believe that the NFL and/or the Patriots are prepared to label anything and everything Walsh says as untruthful, even if he genuinely and in good faith believes his statement. Indeed, the Pats already have denied flatly any cheating in conjunction with Super Bowl XXXVI. So if Walsh says that he videotaped the Rams' walk-through (and if he doesn't have the tape to back it up), his version would instantly be called "untruthful" by the entity whose interests would be most clearly affected if what Walsh says is true.
In our view, "good faith" is the key. Walsh is willing to sacrifice indemnity upon a finding that any alleged untruthfulness was the product of bad faith on his part. In other words, he can be sued -- successfully -- if there's a finding that his statements to Senator Specter are made in bad faith. It's not full indemnity, and it exposes Walsh to litigation based on a contention that he's a disgruntled employee who stole sensitive materials in the hopes of later selling them to other teams, blackmailing the Patriots, and/or simply causing trouble when the opportunity to do so ever might arise.
But he would be shielded from a pissing match over who's right and who's wrong, with the NFL and/or the Pats potentially taking the position that if Walsh is simply incorrect it necessarily means that he's lying, and thus exposed to liability for his words, or his past actions in retaining club property.