Trust the
Winter 2016
INTE THE RNAT IS IONAL a publication of smith, gambrell & russell, llp
SGRLAW.com
SUE
Hello, Havana? The reality of U.S.-Cuba business opportunities
Trust the Winter 2016
3 Editor’s Letter 4 Legal Briefs The latest news and views from the offices of Smith, Gambrell & Russell.
Smith,Gambrell
&Russell, llp Attorneys at Law
8 Opening the Door to Business Between the U.S. and Cuba How the loosening of longstanding travel and trade restrictions could herald a new era of business.
13 “Cape Town” Comes to the UK
1230 Peachtree Street, N.E. Promenade, Suite 3100 Atlanta, GA 30309-3592 editor@sgrlaw.com
editor-in-chief
Dana Richens
What the UK’s recent adoption of this key aviation treaty means for the industry.
16 Intracompany Transfers The legal process of moving key personnel in and out of the United States.
18 Israel and Innovation How such a tiny nation has become a technological and entrepreneurial powerhouse.
22 Foreign Manufacturers We explore the legal challenges facing foreign companies that sell, install and repair industrial machinery in the United States.
26 Finish Line
editorial advisory board
Peter Goodman Joyce Klemmer Brett Lockwood Jim Monacell sgr marketing team
Lee Watts Ashley Berry Sabina Farman Claire Lawther Hank Sforzini Mollie Werner Trust the Leaders is published on behalf of Smith, Gambrell & Russell, LLP by Fourth Element Creative. The information contained herein has been obtained from sources believed to be reliable.
SGR’s partnership with Cristo Rey Atlanta Jesuit High School.
The content and information in this publication do not constitute legal advice, do not in all cases reflect the opinions of SGR or its attorneys and are not in all cases complete or current as of the publication date. This publication is not intended to and does not create an attorneyclient relationship or provide legal advice or legal opinion. Legal advice should be obtained from one’s legal counsel. Permission is granted to use and reproduce this publication in whole or in part for internal and personal reference, provided that proper
This issue’s cover Jamie Maciuszek is an Atlanta-based fine art photographer whose works have been displayed at a wide variety of venues and in private collections, including the Hartsfield-Jackson Atlanta International Airport and the TULA gallery. His travels to Cuba, and the spirit of the Cuban people, have provided some of his greatest artistic inspiration, and many of his most powerful images.
02
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
attribution of authorship is given. Except for material in the public domain, this publication may not be further copied, modified, used or distributed, in whole or in part, in any form or by any means without the written permission of Smith, Gambrell & Russell, LLP. All other rights expressly reserved. © 2016 Smith, Gambrell & Russell, LLP. Leaders used with permission of Leaders Magazine, Inc.
Editor’s Letter
Editor’s Letter
IN THIS ISSUE
Happy New Year! And welcome to this special “International” issue of Trust the Leaders. SGR’s International Practice principally involves “inbound” U.S.
John Spillman p.8
work – that is, the representation of foreign-based companies
John examines the prospect of a renewed business relationship between the United States and Cuba.
looking to establish and maintain manufacturing, sales and related operations in the United States. We also represent U.S. clients who want to expand their business abroad. As you might imagine, a foreign-based company’s expansion into the U.S. brings with it a host of complex business and legal issues on which we counsel our clients: • Government incentives and site selection
Marc Latman & Rob Fuessler p.13 The authors assess what the UK’s adoption of the “Cape Town” treaty means for the international aviation industry.
• Financing, real estate and construction matters • Operational structure • Immigration and employment matters • Export/import issues • Federal and state taxation • U.S. patent, trademark and copyright protection We also frequently serve as general counsel to the U.S. entity once it is up and running. Our
Romy Kapoor p.16 Romy highlights the immigration options available to companies moving key personnel in and out of the United States.
clients range from small family-owned German Mittelstand companies to multi-national corporations in the automotive, infrastructure, renewable energy, steel and building materials, food and medical equipment, and software and computer technology industries, among others. Our attorneys include a number of native Germans who are licensed both in Germany and the U.S. Our international language and other capabilities have enabled us to represent clients from Germany, Israel, Finland, Korea, the United Kingdom and other nations around the world.
Jonathan Minnen & Greg Kirsch p.18 Jonathan and Greg describe how Israel has become a world leader in the fields of research and development, and technology.
We hope that the articles in this issue give you a feel for the wide range of services our firm offers to our clients looking to expand internationally. Enjoy!
Michael Kraus & Vickie Chung p.22
Dana Richens
Michael and Vickie explain the legal complexities facing foreign companies selling industrial machinery in the U.S.
Editor-In-Chief editor@sgrlaw.com
FOLLOW
ONLINE
BLOGS: sgrlaw.com/blog TWITTER: twitter.com/sgrlaw LINKEDIN: linkedin.com/companies/27889
03
LEGAL BRIEFS
THE LATEST NEWS AND UPDATES FROM THE SGR OFFICES
ATTORNEYS IN THE NEWS
MAJESTIC PURCHASE
Talkin’ ‘Bout My Generation SGR’s Nick Rueter provided the millennials’ viewpoint during a panel on intergenerational issues cosponsored by SGR and the Emory Black Law Students Association. Also pictured (from left to right) are panelists DeKalb County Magistrate Judge Nora Polk, Beckysteinphotography.com
CNN Legal Analyst Joey Jackson and Atlanta Municipal Court Judge Terrinee Gundy, and Georgia State University law professor Tanya Washington, the moderator. This is the eighth year of the SGR/Emory BLSA Lecture Series.
Jim Monacell has been
Dana Bradford was
Marcie Ernst was
named vice president of
inducted as a Fellow in
recently appointed by the
the Association County
the American College of
National President of Phi
Commissioners of
Trial Lawyers at its annual
Mu Fraternity to serve as
Georgia Civic Affairs Foundation,
meeting on October 3 in Chicago. A
a member of the Phi Mu National
which fosters understanding and
partner in SGR’s Jacksonville office,
Harm Reduction & Prevention
involvement with county government
Dana handles commercial litigation
Committee, which is part of Phi Mu’s
through student internship and
of all types, including class actions,
National Leadership and Curriculum
youth civic awareness programs, as
insurance matters and accident and
Development Department. Phi Mu
well as a grade-school “U R Y We’re
products liability defense, including
was founded in 1852 at Wesleyan
Here” civic education program.
toxic exposure claims.
College in Macon, Georgia.
SGR SUSTAINABILITY FOCUS Led by Steve O’Day, SGR’s Sustainability Practice provides legal assistance to Cox Enterprises, Inc. in implementing its award-winning Cox Conserves sustainability initiative nationwide. SGR assisted
04
with the implementation of Cox’s scrap tire minimization program, acquisition of waste minimization technology, a waste-to-energy project, implementation of electricity demand response programs, solar energy procurement, marketing of
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
solar renewable energy credits, and development and construction of three solar energy projects. Legal services were provided by attorneys in SGR’s Environmental, Corporate, Construction and Intellectual Property sections.
SGR recently assisted Atlanta-based Majestic Realty Co. with the acquisition of 155 acres of undeveloped land in Polk County, Florida. Our client’s acquisition consisted of assembling eight different parcels of land from eight separate sellers and included negotiating multiple easements for offsite rights to facilitate the development. The project entails construction of two separate warehouses, each of approximately 1.2 million square feet for Walmart. Financing is provided by Northwestern Mutual Life Insurance Company. Mac Young, a partner in SGR’s Commercial Real Estate Practice, represented Majestic in the acquisition, assisted by paralegal Julie Bryant.
IP INSIGHTS Scott Woldow, a partner in SGR’s
Resolution (ADR) Committee. The ADR
Trademark Practice in the Washington,
Committee is responsible for promoting and
DC office, presented at a mini-seminar
raising awareness of the benefits of ADR,
on Hot Topics in Trademark
including overseeing a global panel of trademark
Prosecution hosted by the International
mediators. The Committee also works closely
Trademark Association (INTA) and the United
with INTA’s In-House Practitioners Committee to
States Patent & Trademark Office (USPTO).
offer programs for in-house needs.
The audience included senior officials of the USPTO.
Jim Bikoff has been reappointed to
Scott has also been appointed to INTA’s
INTA’s Internet Committee and will
Government Officials Education and Training
chair the Whois and Privacy Issues
Committee. This Committee develops
Subcommittee during the 2016-17
educational programs specifically designed
term. Jim also has been appointed chair of the
for government officials and intellectual
ABA Committee on Trademark Litigation for the
property office employees. The Committee’s
2016-17 term.
responsibilities include content development, identification of speakers and moderators,
Darlene Klinksieck has been
course material development and review, and
appointed to INTA’s Non-Traditional
program implementation.
Marks Committee. The mission of this Committee is to evaluate treaties,
Marsha Ajhar, counsel in the Firm’s
laws, regulations and procedures relating to
Intellectual Property Practice, recently
the protection of non-traditional trademarks
began her second term as president
(NTMs), such as sound, color and trade dress,
of the International Intellectual
and to develop and advocate policies to advance
Property Society (IIPS).
balanced protection for NTMs.
Three SGR IP partners – Jim Bikoff,
Rich Rivera has been appointed to
Ed Pennington and Greg Kirsch –
the INTA Bulletin Committee. The
presented on various IP topics at a
Bulletin Committee generates and
seminar organized by the Bavarian
coordinates relevant articles and
Industry Association (Vereinigung der
news reports, with global coverage, for each
Bayerischen Wirtschaft, or VBW) in
newsletter. The Bulletin is circulated to over
Munich. The VBW is a Bavarian trade
30,000 trademark professionals in over 190
group that represents the interests of
countries.
Bavarian industry and provides support through its programs and services.
Joyce Klemmer is a member of the
SGR corporate partner Jim Black
INTA Panel of Trademark Mediators.
helped organize the seminar.
The Panel is an important resource that INTA makes available to those seeking a neutral to assist in resolving trademark
SGR attorneys continue to serve in leadership roles of INTA: Elizabeth Borland has been appointed to INTA’s Alternative Dispute
and related intellectual property disputes. The Panel consists of INTA members with substantial substantive knowledge of and experience with trademark, as well as training and experience in the skills necessary to mediate disputes.
SGR IN THE COMMUNITY Lewis expands her special needs outreach Kristen Lewis is the new chairman of the board of Georgia Community Support & Solutions (GCSS), which serves persons with disabilities and their families. As a board member of All About Developmental Disabilities (AADD), Kristen also facilitated court approval of the newly branded Georgia Community Trust of AADD, the only Georgia-based “pooled” special needs trust. Kristen continues her monthly special needs planning workshops for the families served by AADD and GCSS, and started a similar workshop series for Cumberland Academy of Georgia, a private school for children with autism. Kristen also continues to educate allied professionals about special needs planning. She recently presented at the annual meeting of the Georgia Society of CPAs at Reynolds Plantation, and lectured on special needs trust administration at the American Bankers Association Advanced Graduate Trust School for trust officers at Emory University. Kristen created and participated in a new program for the Atlanta Estate Planning Council on “Dealing With the Family Dysfunction Dynamic.” She also presented on elder financial abuse at the American College of Trust and Estate Counsel annual regional meeting at The Greenbrier, followed by similar presentations at the October meeting of the Financial Planning Association of Georgia, and for the Georgia Institute of Continuing Legal Education program in November.
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
05
LEGAL BRIEFS THE LATEST NEWS FROM THE SGR OFFICES
ATTORNEYS IN THE NEWS Joyce Klemmer was
Roy Kozupsky, head
SGR labor and
the moderator for the
of SGR’s NYC Private
employment law partner
Atlanta Bar IP Section’s
Client Services Group,
Matt Clarke’s article entitled, “If It Walks Like
has spearheaded an
Nov. 17 CLE luncheon entitled “IP Litigation Management
initiative to start a separate practice
a Duck, and Quacks Like a Duck –
from the Inside: In-House Counsel
group that will focus on serving
Are Your Independent Contractors
Best Practices and Insight.”
families whose financial and human
Really Your Employees?” appeared
capital is closely linked to a family
in the December 2015 edition of
Senior Counsel, The Coca-Cola
enterprise. Trusts & Estates magazine
The Consultant magazine, published
Company; Komal Patel, Assistant
published in its September 2015
by the Association of Consulting
General Counsel, The Home Depot;
issue an article that Roy co-authored,
Foresters.
and Brian Decker, Senior Legal
entitled “Inside-Out Succession:
Counsel, Newell Rubbermaid.
Rethinking Estate Planning for Family
conducted a seminar on employee
Businesses.” Roy recently spoke
handbooks for the Northeast Georgia
Intellectual Property Practice, where
at the Certified Financial Advisor
Chapter of the Society of Human
she focuses on IP litigation. In
Society of Philadelphia High Net
Resources Management (SHRM).
addition, she presently serves on the
Worth Family Wealth Conference.
The seminar covered recent changes
board of the Atlanta Bar Intellectual
Roy also lectures at the Graziadio
to FMLA regulations, NLRB rulings
Property Section and is a past chair
School of Business and Management
and other suggestions for updating
of the Georgia Bar’s IP Section.
at Pepperdine University.
employee handbooks.
On the panel were Allen Yee,
Joyce is a partner in SGR’s
Regan educates in New York City Michael Regan, a litigation partner in SGR’s New York office, spoke at a continuing legal education program at the New York City Bar Association, entitled “The Art of Pleading: Tactics, Techniques and Strategies.” Michael was joined by The Honorable Jeffrey K. Oing of the Commercial Division of the New York Supreme Court, and The Honorable Vera M. Scanlon, United States Magistrate Judge presiding in the United States District Court, Eastern District of New York. Michael’s presentation focused on the preparation of effective pleadings in litigation matters, pitfalls lawyers should avoid, new rule changes affecting litigants in the Commercial Division of New York Supreme Court, and contrasts between state and federal court practice.
06
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
In addition, Matt recently
NEW PARTNER PROFILE Joe Mandarino is a new partner in SGR’s Tax Practice. He is a frequent speaker on a variety of topics. Joe’s most recent seminars include: O Partnership Tax: Allocations and Capital Accounts, CPA Academy. O Pass-Through Entities, Self-Employment Taxes, and the Net Investment Income Tax, CPA Academy. O Correcting Capital Account Errors on Partnership Returns, Strafford. O Selling Your Interest in a Partnership or LLC, CPA Academy. O Handling the Sale of a Business: Tax Saving Structures and Strategies for Attorneys, NBI. O Mastering Tax Issues in the Sale of Partnership and LLC Interests, Strafford. Joe works with attorneys, accountants, advisors and business owners to maximize tax efficiencies. For more information, contact: jmandarino@ sgrlaw.com.
ATTORNEY INTERVIEW
SGR IN THE COMMUNITY
10 minutes with…
Legal Aid Society Relocation
Melissa Dearing
SGR is proud to have played a part in Atlanta Legal Aid Society’s relocation to its new headquarters in downtown
Partner in SGR’s Immigration Practice, Jacksonville Melissa’s practice encompasses all areas of labor and employment law. She also assists employers in seeking non-immigrant and immigrant status. She has extensive experience with H-1Bs and the PERM-based green card process, particularly with respect to information technology professionals, engineers and pharmacists, among other professionals. Melissa earned her B.A. degree, with honors, from the University of Florida. She earned her J.D. degree, with honors, from the University of Florida Levin College of Law. Are you originally from Florida? Yes, I was born and raised in Tampa. I love Florida. I can’t imagine living anywhere else. How did you know you wanted to go to law school? In college, I had a dual major of Political Science and Criminal Justice. My father was in law enforcement, so the criminal aspect of it was always fascinating. That was my initial introduction to wanting to practice law. I wanted to be a criminal defense attorney. I clerked at the public defender’s office and figured out quickly that it didn’t attract me. I took some employment law courses and that really captivated me. How did you transition into immigration law? I enjoyed employment defense work – the different fact patterns were always very intriguing. Then a partner at my previous law firm moved to an in-house role at one of his clients and suggested I take over his immigration practice. Initially, I didn’t think I would be interested; it seemed too forms-based. But I quickly came to realize how complex it is and how satisfying it is to make dreams come true for our foreign-national clients.
Atlanta in 2015. SGR’s name partner E. Smythe Gambrell founded Atlanta Legal Aid in 1924 and served as its
What is the most rewarding case that you have handled? It was for the family of a Haitian man who was working in the U.S. at McDonald’s. The children were in Haiti and the parents had come here to earn money to send back to Haiti. The father’s ultimate dream was to have his children come here, too. Tragically, the father was later shot and killed. We assisted his entire family in coming to the United States. They all now have legal permanent status. The oldest son is currently in college. While the father never got to enjoy seeing them here, making a family’s dream come true was amazing.
president for almost two decades. Building on Mr. Gambrell’s legacy, SGR partner David Burge provided commercial real estate services for the renovation/relocation project on a pro bono basis, and SGR’s Managing Partner Steve Forte and partner Parker Sanders served on the Capital Campaign Committee. The Gambrell Conference Room at the new headquarters recognizes Mr. Gambrell’s special contributions and the firm’s financial and other support of Atlanta Legal Aid.
What is the best career advice you have received? To always be extraordinarily responsive to your clients. I think that is one my best attributes and sets me apart from lawyers at other firms. I try to make myself available to my clients regardless of the circumstance, whether it’s late in the evenings, on the weekend or otherwise. What do you like to do outside of work? I’m a recreational runner. I also love spending time with my family. I have a husband and three kids. I do all I can to spend time with them. Are there any special causes or organizations that are important to you? My son is autistic, so Autism Speaks and similar organizations are important to us. They do a lot to further the cause for autistic children. I would like to become even more involved in the future. What do you enjoy most about working at SGR? We have a very collegial atmosphere. A number of colleagues moved from my prior law firm to SGR, so, it’s nice having that familiarity while also getting to know some of the other lawyers who have been at SGR for a longer time.
Congratulations to the following SGR lawyers recently elected to the partnership: Eugene Bryant (Atlanta) James Cummings (Jacksonville) Michael Regan (New York) Julie Sebastian (Atlanta) John Weeks (Atlanta)
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
07
OPENING THE DOOR TO BUSINESS
BETWEEN THE U.S. AND CUBA While the prospect of a renewed trading relationship between the two nations appears promising, the future is far from certain
BY JOHN SPILLMAN
18
TRUST THE LEADERS | Winter 2014 | SGRLAW.com
U.S. and Cuba
I
n December 2014, President Obama and Cuba’s president, Raul Castro, made surprise and simultaneous announcements that, after a half-century of mutual hostility,
the two countries would move toward reestablishing normal relations. The United States also announced the loosening of some of the longstanding Cuban trade and travel restrictions. These developments have generated excitement and media buzz about opportunities in Cuba for U.S. business. While the changes are real and future prospects are interesting, the U.S. trade embargo remains in place and prohibits most business dealings with Cuba, and the Cuban government’s willingness to accommodate large-scale U.S. investment is still uncertain. A full opening of trade and business relations between the U.S. and Cuba will take time. In
severe problems on many fronts. The state-
the meantime, there are niche opportunities
controlled economy is stagnant and lacks
for some U.S. businesses and a much-improved
foreign exchange to pay for critical imports.
climate for visiting the island, investigating the
Cuba’s infrastructure is crumbling. The economy
market and developing relationships.
offers few opportunities for its well-educated young people. Cuba’s most important ally
Background
and benefactor, Venezuela, is facing its own
Cuba is an island nation with 11 million people
economic crisis and cannot sustain the subsidies
located 90 miles off Florida’s coast. It has a rich
it has provided since the late 1990s. Cuba
history as a cosmopolitan trading capital of the
needs more tourism and foreign investment to
Spanish empire in the Americas. After Cuba’s
reinvigorate its economy and generate growth.
independence following the Spanish-American
Despite the Cuban government’s denunciation
War in 1898, the U.S. strongly influenced Cuba’s
of the U.S. for the last half-century as a
economy, politics and culture. In 1959, Fidel
malignant imperialist, it understands that U.S.
Castro led a revolution overthrowing the corrupt
trade and investment can play an important role
Batista dictatorship. One of Castro’s goals was
in revitalizing the Cuban economy.
to limit U.S. influence over Cuban affairs. In
There have also been changes in the U.S.
1961, Castro embraced communism, aligned
political climate with respect to its Cuba policy.
Cuba with the Soviet Union and expropriated
President Obama is in his second term and
U.S.-owned assets. In response, the U.S. broke
can afford to be less concerned with political
diplomatic relations, sponsored the failed Bay
repercussions from improving relations.
of Pigs invasion to oust Castro, and imposed
Opposition to an opening by the politically
severe trade and travel restrictions that have
influential Cuban-American community has
remained in effect for 54 years. The long
weakened due to generational and demographic
break in diplomatic relations finally ended this
changes. Major U.S. business interests are
summer when the two countries reopened their
lobbying more aggressively to open trade with
respective embassies.
Cuba. Policy experts and interest groups have become more vocal in arguing that the existing
Why are relations improving?
policy has accomplished little to weaken the
Developments in both countries set the stage
Cuban government or change its policies while
for improved relations. Cuba’s leaders face
placing a heavy burden on the Cuban people.
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
09
U.S. and Cuba
What business activities are allowed? For years, the embargo statute has permitted limited categories of U.S. exports to Cuba under special license, mainly food and medicine (most of Cuba’s chicken comes from Georgia, for example), which is usually sold to various arms of the Cuban government. There are strings attached to these licensed sales that put U.S. companies at a competitive disadvantage, including a prohibition on extending credit and restrictions on marketing activities. U.S. agricultural sales to Cuba have
Photos by John Spillman
been declining in recent years as other countries have gained market share. U.S. agricultural interests have been active in lobbying for a repeal of the embargo. In January 2015, shortly after the announcement of the U.S.-Cuba opening, the Obama administration issued new administrative
Why the interest in doing business with Cuba? U.S. businesses are interested in Cuba for several reasons, including Cuba’s proximity to the U.S.; its history as a sophisticated trade hub for Latin America and the Caribbean; a well-educated, traditionally entrepreneurial population; infrastructure in need of major overhauls;
Cuba has been walled off from U.S. travel, trade and investment for so long that it has piqued an interest in the U.S. that may exceed its realistic market potential.
regulations for enforcement of the Cuba embargo by the Office of Foreign Asset Control and the Department of Commerce. An additional set of regulatory changes was announced in September 2015. Together, these changes significantly expand opportunities for travel, commerce and investment between the U.S. and Cuba within
relationships with a thriving Cuban expatriate
the tight constraints of the embargo. The
network; miles of undeveloped beaches,
stated purpose of the regulatory changes is to
pleasant climate, beautiful architecture and
individuals from doing meaningful business in
“empower and engage the Cuban people.” As
other tourist attractions; and pent-up consumer
Cuba. The embargo, which Cubans refer to as
a practical matter, the changes are also intended
demand in its internal market. Businesses see
the “blockade,” is enshrined in a law passed by
to further support for repeal of the embargo
obvious opportunities in tourism, manufacturing
Congress and will remain in force until Congress
and put pressure on the Cuban government to
and agriculture, and in less-obvious sectors such
repeals it.
liberalize its internal policies.
as call centers, distribution and logistics, health,
Despite strong lobbying from U.S. business
Under the revised regulations, U.S. businesses are permitted to engage in the following activities:
IT and outsourced research and development.
and polls showing public support for lifting
Finally, there is the “forbidden fruit” factor:
the embargo, repeal is unlikely until after the
Cuba is so close, and has been walled off from
2016 U.S. presidential election. It will remain
U.S. travel, trade and investment for so long,
a contentious political issue even after the
that it has piqued an interest in the U.S. that
election. President Obama’s loosening of
equipment, and related hardware, software
may exceed its realistic market potential.
certain embargo regulations was intended
and services. Unlike most of the other
• Sales of certain telecommunications
to create political momentum for repeal by
permitted activities, this exemption specifically
Despite the hype, the U.S. trade embargo on Cuba remains in place
encouraging more travel and business activity
authorizes sales to, and joint ventures with,
within existing statutory exemptions. However,
Cuban government-controlled enterprises.
Despite President Obama’s easing of some
no one can predict how long the embargo will
Roaming agreements between U.S. mobile
Cuban trade and travel restrictions, the U.S.
remain in place. Until the embargo is repealed,
networks and the Cuban national carrier are
trade embargo on Cuba remains firmly in
business opportunities in Cuba for most U.S.
expressly permitted. Verizon recently announced
place and prohibits most U.S. companies and
companies and individuals will be limited.
expensive but available voice and data roaming
10
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
in Cuba for its U.S. customers, and other U.S. carriers are sure to follow. • Sales of certain Internet-based services, including software design, business consulting, IT management and related services, including services relating to instant messaging, chat, email and social networking. Airbnb and Netflix have begun offering services in Cuba under these exemptions. The importation of mobile applications developed in Cuba is also permitted in some cases. • Exports of items for use by the small but rapidly growing Cuban private sector, including building materials, tools and supplies and certain microfinance activities. • Certain activities related to commercial aviation, passenger ferries and other travelrelated services. • Renting Cuban facilities, hiring Cuban employees, registering local subsidiaries and engaging in a variety of other activities, but only when they are incidental to some of the primary business activities permitted under the regulations.
The new regulations made significant changes in the following areas: Travel. Prior to 2015, travelers to Cuba had to apply for a license before the trip. Applications were approved only if travel was for one of the limited purposes permitted under the embargo, including family visits, professional research and meetings, support for the Cuban people and travel in connection with authorized export activities. Under the new regulations, licensing for permitted travel was effectively converted to an honor system – advance permission is not required. U.S. businesspeople who want to visit Cuba to evaluate the market and meet potential business contacts can generally do so within the permitted travel categories and without having to apply for a license. the two countries announced an agreement to resume direct commercial flights from the U.S. to Cuba, which should make travel to the island easier and less expensive than the current charter services.
Photos by Jamie Maciuszek
Editor’s note: As this article went to press,
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
11
U.S. and Cuba
Banking, credit cards and remittances. The new regulations permit U.S. banks to set up correspondent relationships with Cuban banks to facilitate authorized transactions and allow U.S. credit card issuers to process payments made by U.S. travelers in Cuba. U.S. persons may open bank accounts in Cuba to facilitate also allow U.S. banks and money transmitters to facilitate permitted remittances from the U.S. to Cuba. Remittances from relatives in the U.S. are an important source of shadow finance for the growing Cuban private sector
Photo by John Spillman
certain permitted activities there. The regulations
and private real estate markets. The most recent changes eliminated the $2,000 quarterly limit on remittances to most Cuban nationals. Intellectual Property. Under current law, U.S. companies can register intellectual property in Cuba and pay the registration and professional
New regulations leave questions unanswered and create gray areas that will need to be clarified.
through joint ventures in the tourism and natural resource sectors. Potential investors will nevertheless have concerns about the implementation of the new foreign investment laws, including the efficiency of government permitting and regulation, the practical ability
fees relating to the registrations. Cuba is a “first
to enforce contracts, repatriation of profits,
to file” trademark jurisdiction, so businesses with an interest in the market should consider
experimenting with larger-scale privatizations
requirements that all employees must be hired
registering their marks to prevent squatters or
through cooperative ownership. Cubans are
through the government, and transferability of
others from appropriating them in Cuba.
now allowed to travel freely and to buy and sell
investments. Investors will also be mindful that
homes and cars. While Internet access is still
the government could reverse course on reform
and laws relating to U.S.-Cuba business
limited, the government tolerates widespread
if internal politics change.
remains complicated. The new regulations leave
black-market distribution of news, television,
questions unanswered and create gray areas
sports and films from the U.S. and Latin
Takeaways
that will need to be clarified. Some changes will
American countries via portable media.
The door has cracked open to business
have limited practical effect without changes in
Despite the reforms, Cuba remains a
The interplay among the various regulations
between the U.S. and Cuba. There appears
Cuban government policy. Until the embargo
communist country with a centrally planned
to be strong momentum toward an eventual
is repealed, U.S. businesses will need to read
economy, an ideological hostility to market
repeal of the longstanding embargo. Until
the regulations carefully and check with their
capitalism and a deep suspicion of foreign
that happens, opportunities will be limited
legal advisors before engaging in any business
economic influence. Ninety percent of Cubans
to the permitted niche areas. Some of these
activities relating to Cuba.
with jobs work for the state or state-owned
are potentially significant, especially in sectors
enterprises. While the government recognizes
related to telecom, Internet and ecommerce,
Is Cuba ready for U.S. business?
the need to liberalize parts of the economy and
and transportation. For businesses interested
The Cuban government has made significant
open it to foreign investment, it has limited
in current or future opportunities in the Cuban
moves in recent years to encourage foreign
practical experience with market economics.
market, it has become much easier to travel to
investment, including an overhaul of its foreign
The government appears determined to
Cuba, arrange meetings, investigate the market
investment laws and an ambitious free trade
remain firmly in control as the reform process
and protect IP for future use. Q
zone development at the port of Mariel, with
unfolds. Even if the encouragement of foreign
the ability to handle the giant cargo ships that
investment is sincere, the opaque, top-down
will be passing through the newly widened
Cuban bureaucracy is likely to make practical
Panama Canal beginning next year. Many areas
implementation of some reforms difficult.
of the economy have been opened to smallscale private enterprise and the government is
12
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
Non-U.S. foreign companies have operated in Cuba on a limited basis for years, mainly
John Spillman is a partner in SGR’s Corporate Practice. He counsels on corporate and transactional matters, including mergers and acquisitions, joint ventures, emerging company issues and international transactions. jspillman@sgrlaw.com.
Aviation Law
“CAPE TOWN” COMES TO THE UNITED KINGDOM The treaty on recognition of rights in aviation assets assumes a greater level of significance with the UK’s recent ratification
I
nitially implemented in eight countries
understanding of some of its more complicated
nine years ago, the international treaty on
and country-specific features remains critical
recognition of rights in airframes, aircraft
for all parties involved in the structuring,
engines and helicopters, informally known
documentation and negotiation of aviation-
as “Cape Town,” has now been implemented
BY MARC LATMAN
BY ROB FUESSLER
related transactions.
in almost 70 countries. The treaty is set to take on even greater significance in the world’s
What is Cape Town?
aviation market as the United Kingdom of Great
Cape Town is comprised of two components:
Britain and Northern Ireland (“GBNI”) ratified
the Convention on International Interests in
Cape Town as of July 27, 2015. Such ratification
Mobile Equipment (the “Convention”), and
was extended to the territories of the Cayman
the Protocol on Matters Specific to Aircraft
Islands, Guernsey (one of the Channel Islands)
Equipment (the “Aircraft Protocol”). The
and Gibraltar (along with the United Kingdom
Convention governs transactions involving three
of Great Britain and Northern Ireland, the “UK”).
types of movable assets: aviation-related assets,
With Cape Town having become effective
rail assets and space assets. The Aircraft Protocol
across the UK on November 1, 2015, knowledge
is, as its name suggests, the provision that
of Cape Town’s basic principles and an
applies specifically to aviation-related assets.
Cape Town also allows contracting parties the freedom to agree upon the applicability of many Cape Town rights and remedies on a transaction-by-transaction basis. In some instances, contracting parties may exclude from their contracts certain rights and remedies that the relevant Contracting State chose to include in its jurisdiction by a specific Declaration.
United Kingdom Declarations When a country ratifies or accedes to Cape Town, it is required to make certain mandatory Declarations but may choose to make other optional Declarations as well. Some of the more significant Declarations made by the UK include The Convention was developed to address
earlier, non-registered Cape Town Interest in
the following:
concerns that many parties were hesitant to
the same asset. This “first to file” priority rule
offer financing for aviation, rail and space assets,
may be disregarded, however, if the relevant
Town will apply to the territories of the Cayman
which are easily and often moved from one
transaction parties register a subordination
Islands, Guernsey and Gibraltar. However, Cape
jurisdiction to another and therefore from one
agreement with the IR, pursuant to which the
Town will not be applied in the same manner
legal system to another, resulting in uncertainty
parties agree to alter their respective priorities.
across all UK jurisdictions.
Convention hoped to offer a uniform framework
Cape Town rights and remedies
and Guernsey are free to decide upon the
to eliminate or lessen such transaction risks.
In addition to setting up the framework to
governing law applicable to the terms of
register certain interests and determining the
their contract of sale, security agreement,
The International Registry
priority of those interests, Cape Town also
title reservation agreement and/or leasing
Cape Town serves two primary functions –
provides a set of negotiable rights and remedies
agreement, to which Cape Town is applicable (a
it establishes an International Registry for
relating to interests in Aircraft Objects. However,
“Cape Town Agreement”). This Declaration was
registering and prioritizing interests in aviation-
since the rights and remedies created by Cape
not made in respect of GBNI or Gibraltar.
related assets and it provides a set of negotiable
Town are negotiable, the rights and remedies
rights and remedies relating to interests in
available to contracting parties may vary widely
Town will not require leave of an appropriate
aviation-related assets.
from transaction to transaction, from country to
court unless such permission is expressly
• Contracting parties in the Cayman Islands
as to rights and remedies. The drafters of the
The International Registry (IR), a Web-based
• In addition to applying to GBNI, Cape
country and, depending on how a country
• Remedies available to a creditor under Cape
required by the terms of Cape Town – i.e., creditors are entitled to “self-help”
system, is the central location for registering
decides to adopt the Convention,
what Cape Town refers to as “Contracts of
across the various jurisdictions of
Sale” and “International Interests” (collectively,
a single country. For example,
• The courts of the Cayman
“Cape Town Interests”) in certain aviation-
Contracting States are given
Islands and Guernsey
related assets (airframes, aircraft engines (but
significant latitude to make
not propellers) and helicopters) referred to as
“Declarations” upon their
maximum cooperation
“Aircraft Objects.” Cape Town Interests include
ratification or accession
with foreign courts in
ownership interests, security interests, lease
to Cape Town. Such
matters of insolvency. This
interests and conditional sales interests.
Declarations determine
Declaration was not made
remedies.
are required to provide
which aspects of Cape
in respect of GBNI and
are straightforward. Generally, the first party
Town will be applicable
Gibraltar.
to register a Cape Town Interest in an Aircraft
in each of the Contracting
Object has priority with respect to that Aircraft
States and, as is the case
Object, regardless of whether the registering
with the UK, each of its
party has actual or constructive notice of an
territories.
Cape Town’s basic rules for registered interests
14
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
• “Alternative A” under the Aircraft Protocol shall apply only in the Cayman Islands and Guernsey with
Aviation Law
respect to repossession remedies available in
Wales, the Court of Session in Scotland, the
connection with insolvency proceedings of a
High Court of Justice in Northern Ireland, the
lessee or debtor, and the “waiting period” with
Supreme Court of Gibraltar, the Grand Court
respect thereto shall be 60 calendar days. Under
of the Cayman Islands and the Royal Court of
this Declaration, the insolvent lessee/debtor must
Guernsey.
either cure all contract defaults (other than the insolvency itself) within the designated waiting
Conclusion
period or provide the creditor with possession of
While GBNI already has an established history
the Aircraft Object. During the waiting period,
of certainty in the realm of aircraft leasing and
the debtor must preserve the value of the
finance, the promulgation of Cape Town across
Aircraft Object. Because this Declaration does
provide interim relief within 10 business days
the UK demonstrates the continued movement
not apply to GBNI or Gibraltar, the insolvency
of the application for such relief. The courts
of the global market toward a recognized set
laws in existence in those jurisdictions prior to
of Guernsey shall also provide interim relief
of rules, rights and protections intended to
ratification will remain in effect.
within 10 business days of application therefor,
reduce uncertainty and risk levels for aircraft
• Relief pending final determination by a
except where a creditor seeks to lease or sell the
lenders and lessors. Furthermore, the ratification
court of appropriate jurisdiction as to whether
Aircraft Object, in which case such relief shall be
of Cape Town in a manner that extends to the
a default under a Cape Town Agreement
provided within 30 business days.
Cayman Islands should help to ensure that the
occurred, commonly referred to as “interim
• A debtor may issue and have filed with the
Cayman Islands remains an important player in
relief,” shall be available across the UK.
appropriate aircraft registry within the UK an
However, the additional rights of a creditor to
irrevocable deregistration and export request
lease or sell an Aircraft Object prior to any such
authorization (IDERA), making the “person”
and newsworthy. However, it is worth noting
final determination are limited to the Cayman
in whose favor such IDERA has been issued,
that the ratification documents deposited by
Islands and Guernsey only.
or its certified designee, the sole person that
the UK, including its specific “Declarations,”
may, upon a default, procure the deregistration
particularly with respect to the entry point
from the UK of an airframe and procure the
for the IR, will need to be digested fully by
export and physical transfer of an Aircraft Object
airlines, lessors and lenders and become part
out of the UK. The applicable administrative
of the negotiation, documentation and closing
authorities within the UK are also obligated to
procedures of their transactions for them to take
“expeditiously” cooperate with and assist in
advantage of the protections and benefits of
the exercise of the deregistration and export
Cape Town as effective in the UK. Q
• The courts of the Cayman Islands shall
CAPE TOWN – THE PARTICIPATING COUNTRIES Presently, 68 countries and the European Community have ratified or acceded to the Convention and the Aircraft Protocol (referred to as “Contracting States”): Afghanistan, Albania, Angola, Australia, Bahrain, Bangladesh, Belarus, Bhutan, Brazil, Burkina Faso, Cameroon, Canada, Cape Verde, China, Colombia, Congo, Costa Rica, Côte d’Ivoire, Cuba, Egypt, Ethiopia, Fiji, Gabon, India, Indonesia, Ireland, Jordan, Kazakhstan, Kenya, Kuwait, Latvia, Luxembourg, Madagascar, Malawi, Malaysia, Malta, Mexico, Moldova, Mongolia, Mozambique, Myanmar, Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Panama, Russian Federation, Rwanda, San Marino, Saudi Arabia, Senegal, Seychelles, Singapore, South Africa, Spain, Syrian Arab Republic, Tajikistan, Tanzania, Togo, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States, Vietnam and Zimbabwe.
the global aviation market. The UK’s ratification of Cape Town is exciting
remedies. • Certain stated categories of nonconsensual
SGR’s Air Transport Industry Group represents
rights or interests shall have priority over a duly
a wide variety of clients in connection with
registered International Interest, whether inside
a broad spectrum of financing structures,
or outside of an insolvency proceeding. For
including sale and leasebacks, operating
example, an aircraft repairer with a possessory
leases, traditional and tax-driven leveraged
lien for services performed by it on, and value
leases, straight debt financings, pre-delivery
added by it to, the aircraft in its possession will
payment (PDP) financings, enhanced
have priority over a duly registered International
equipment trust financings and export
Interest. Lessors and lenders, take note that this
credit financings.
Declaration by the UK makes clear the rights of an intergovernmental organization or a private provider of public services, e.g., Eurocontrol, to arrest and detain an Aircraft Object for payment of services remain paramount. • The following are the relevant UK courts where Cape Town related issues are to be heard: the High Court of Justice in England and
Marc Latman is a partner in SGR’s Corporate Practice and a member of the Firm’s Air Transportation Industry Group. mlatman@sgrlaw.com. Robert Fuessler is an associate in SGR’s Corporate Practice. He focuses on the purchase, sale, leasing and financing of aircraft and aircraft engines. rfuessler@sgrlaw.com.
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
15
INTRACOMPANY TRANSFEREES HOW TO MOVE KEY PERSONNEL INTO AND OUT OF THE U.S.
BY ROMY KAPOOR
O
Multinational companies often need to move key personnel from one international office to another for short-term assignments. Here, we highlight the immigration issues involved with such global mobility needs verheard at an international
inspection process at the port of entry or
to enter the U.S. temporarily to continue to
manufacturing company’s
through site visits to multinational companies.
render his services to the same employer in its
Where time to be spent in a country is fairly
U.S. branch office, or with the U.S. subsidiary
management team meeting:
lengthy or where the duties to be performed
or affiliate of the foreign entity, also as an
our presence in the U.S. In addition to the
cross into that of productive work on behalf of
executive, manager or specialized knowledge
sales function there, we will add a limited
an entity in the host country, an employment
employee.
manufacturing function to perform final
visa or work permit may be required. The first
assembly of the components that have been
option to consider may be to send the employee
a period of three years, unless the U.S. entity is
manufactured at our parent facility in Germany.
as an intracompany transferee.
a “new office” that has been operating for less
“We’ve decided to expand
The L-1 petition can initially be approved for
than one year, in which case the L-1 will initially
We’ll need to send a team from Austria to install the assembly equipment and train the local work
Worldwide employment/visa options
be approved for one year. Extensions can be
force. It would also be a good idea to bring
The following is a summary of visa and work
granted in increments of two years. Managers
some of the more experienced local hires in the
permit options for employees being transferred
and executives (L-1A) are limited to seven
U.S. with supervisory and management potential
to the U.S. to work for a U.S. entity that is
years in the U.S., while specialized knowledge
to Austria for training and indoctrination.”
related to their employer abroad, as well as such
employees (L-1B) are limited to five years.
Companies in the U.S. and around the
options for U.S.-based employees who need
The U.S. entity may also seek to sponsor L-1
world traditionally have been able to send their
to be transferred to a related entity abroad.
individuals for U.S. permanent residence. For
employees abroad fairly easily and without much
Like the U.S., many countries throughout the
managers and executives, this can be quite
interaction with foreign immigration and labor
Americas, Europe and Asia offer employment
a quick process under the first-preference
departments by utilizing the business visitor
options for intracompany transferees with
immigrant visa category, with no labor
processes of a particular country. However,
attractive features that other employment visas
certification process required.
the potential exists for misuse of the business
in those countries don’t offer.
One key advantage of the L-1 category over other work visa categories is that spouses of L-1
visitor category in terms of how often and for how long the company is sending an employee
United States
principals, who are entitled to L-2 status, are
to a foreign country, and the duties to be
In the U.S., the L-1 visa classification
also able to obtain employment authorization
performed. Many countries, including the U.S.,
is designed for individuals who have been
in the U.S. Additionally, the L-1 category does
are more clearly defining permissible business
employed continuously for one year by an entity
not require the employer to show that the wage
visitor activities of foreign nationals and strictly
abroad as an executive, manager or specialized
offered to the beneficiary satisfies some arbitrary
enforcing them either in the immigration
knowledge employee. The individual now seeks
prevailing wage standard.
16
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
Immigration Law
United Kingdom
Canada
The United Kingdom offers Tier 2
Canada provides work permits to
status for intracompany transferees who have
Japan Japan provides for intracompany
intracompany transferees coming to work for
transferee “status of residence” for engineers
worked for the foreign entity for at least the
a related company in Canada if the foreign
or specialists in humanities or international
preceding 12 months and are now coming
national has worked for at least one year (within
services who have been working for at least
the preceding three years) for the foreign
the preceding one year overseas and are now
position as long-term staff (up to 60 months),
entity in an executive, senior management or
being transferred to a related Japanese entity.
short-term staff (up to 12 months), graduate
specialized knowledge position. The program is
The intracompany transferee must be paid a
to work for a related UK entity in a skilled
trainee or to participate in a skills transfer
similar to the U.S. L-1 visa. The wage offered to
salary that equals or exceeds the prevailing
program. The general Tier 2 category
the foreign worker must be consistent with his
wage for Japanese nationals performing
for temporary professional and skilled
level of expertise, and must meet or exceed the
comparable work. There is a separate business
prevailing wage for the occupation. However,
manager “status of residence.” Senior and
normally requires a showing that the offered
intracompany transferees entering Canada
mid-level executives and managers will fall under
salary meets or exceeds the prevailing wage for
pursuant to the North American Free Trade
this category rather than as an intracompany
the position. Additionally, the employer must
Agreement or some other free trade agreement
transferee, such that the work and salary
normally carry out a labor-market test for the
are not subject to this wage requirement. All
requirements do not apply.
position to determine whether there are any
intracompany transferees are exempt from the
qualified UK resident workers. This is typically
normally required labor-market testing.
workers includes a cap on admissions, and
an expensive and time-consuming process. However, Tier 2 intracompany transferees are exempt from both the cap and labor-market
South Korea South Korea offers an intracompany
Mexico
transferee visa to “indispensable” professional
Intracompany transferees traveling to
workers who have worked for the company
testing, although there are some minimum
Mexico to work for a foreign company’s related
abroad for at least one year and are now
salary requirements.
entity for 180 days or less do not require work
sending the employee to a related company
authorization, even if placed on the payroll of
that is registered with the Korean government.
Germany
the Mexican company. If the transferee will
Indispensable professionals include executives,
Like the UK, Germany normally requires
remain on the sending company’s payroll, the
senior managers and specialists who possess
labor-market testing for its foreign national
employee may enter Mexico as a business visitor.
advance level proprietary experience and
temporary work force prior to the issuance
Intracompany transferees staying more than 180
knowledge essential to the company’s service.
of the necessary work and residence permits,
days require both a work permit and residence
but exempts intracompany transferees from
permit, unless they will remain on the sending
Work permit and visa options differ dramatically
this requirement, provided the German entity
company’s payroll, in which case only the
from country to country, as do the processing
periodically sends skilled employees to its foreign
residence permit is required.
requirements and timelines. It is advisable to contact an immigration professional well in
related entities.
France France offers a combined work and
China
advance of moving personnel internationally.
China has one of the most complex,
Careful immigration and visa compliance
multi-stage, multi-agency employment
planning can minimize problems and delays. Q
residence permit for “workers on assignment”
authorization processes in the world, involving
in two scenarios. The first is temporary assignees
local labor authorities, trade commissions,
With our knowledge and our contacts with
who will be sent to France to work at a branch
health authorities and public security authorities,
immigration professionals throughout
office, or at a French entity that is related to the
as well as the Chinese diplomatic post in the
the world, SGR’s Global Immigration and
overseas employer, but continue to be employed
foreign national’s home country, to apply for
Mobility Practice can provide the best
by the overseas employer. The second is those
the Z visa. Intracompany transferees go through
outcome for all parties.
temporary assignees who will be transferred
the same employment authorization and visa
from the overseas employer to work directly
processes. Senior executives may enter China on
for the related French entity. In either case, the
an M business visitor visa or an L tourist visa and
foreign worker must be paid at least one and a
convert their visa to an alien employment permit
half times the statutory minimum wage.
and residence permit after entry.
Romy Kapoor heads the Firm’s Global Immigration & Mobility Practice. He assists companies in the legal and efficient movement of their global talent across international borders. rkapoor@sgrlaw.com.
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
17
ISRAEL SMALL COUNTRY, INNOVATIVE GIANT
Israel may be a tiny country, but it is a major force in technology, and research and development
BY JONATHAN MINNEN
18
BY GREG KIRSCH
TRUST THE LEADERS | Winter 2014 | SGRLAW.com
Israel and Innovation
THE STORY BEHIND SGR’S ISRAEL PRACTICE
I
srael has become a global technological and
The majority of the land area of this tiny country is
entrepreneurial powerhouse. The recent Bloomberg
desert. In the center of the country, where most of the
Innovation Index, an annual ranking of countries
population lives, is an area where the width of Israel is,
that measures performance in research and
according to one former governor and U.S. president,
development, technology education, patents and
smaller than the length of the driveways of many Texas
other marks of technological prowess, listed Israel at
ranches.
#5 in the world. South Korea, Germany and Finland
There are plenty of countries that are small, located
(which are also home to companies represented by
in stressful geographic areas, lack substantial natural
SGR) ranked first, third and fourth, respectively. The
resources or have other challenges. So what has made
U.S. ranked sixth. Digging into the details, Israel ranks
Israel so successful? It was not always this way. From
second in research and development, and fourth in
1979 to 1985, Israel had triple-digit annual inflation,
post-secondary education and research personnel. For
peaking at 444.8 percent in 1984. In that year, per
a number of years, Israel has ranked at or near the
capita GDP was under $12,000 annually. Even today,
top of foreign countries in terms of the number of
wages remain very modest, with the June 2015 data
companies listed on the Nasdaq.
showing the equivalent of $2,620 per month in gross
So, how did this little State of Israel, with its
income. Even so, housing prices in many parts of Israel
population of eight million people (by comparison,
rival Manhattan, and automobiles generally cost about
the population of the Atlanta metropolitan area is 6.1
twice the price of the same model in the U.S.
million), generate enough business to be of interest not only to SGR, but also to many of the world’s premier global companies? Understanding the business success of Israel requires
Israel’s technological prowess – some say its “economic miracle” (in the view of Dan Senor and Saul Singer, authors of Start-up Nation) – came precisely because Israel and its citizens had no choice
a suspension of the traditional way of looking at
but to confront its challenges head-on. Learning to
things. Successful countries often have valuable natural
confront adversity was a matter of survival, and led
resources, substantial size, a strategic geographic
to a combination of attributes that are collectively
location, or some combination of these attributes. Until
unique. In Israel, one must achieve success with the
the discovery of natural gas deposits off of Israel’s coast
resources at one’s disposal, not the resources one
several years ago, which are still in the early stages of
would wish to have.
development, Israel had few valuable natural resources.
Trying and failing is not a source of embarrassment
Your authors – Jonathan Minnen, chair of SGR’s Corporate Practice, and Greg Kirsch, chair of the Firm’s Intellectual Property Practice – are both lateral partners, having moved our practices to SGR in 1999 and 2012, respectively. Among the factors that attracted us to SGR was the Firm’s willingness to think creatively and seek opportunities that would not be the norm for a law firm of its size and headquartered in the southeastern United States. When Jonathan approached Firm management in 2000 about the idea of developing a practice area serving the U.S. legal needs of Israeli companies, there were concerns about its viability. Israel is really tiny and located in a turbulent part of the world. The Firm provided its unqualified support nonetheless. Fast-forward 16 years and, enhanced by the addition of Greg’s patent practice for Israeli companies, SGR’s work in the U.S. for Israeli companies has grown into a substantial part of the firm’s International Practice. Our work touches nearly every practice area and our lawyers interface with our Israeli clients nearly every working day. We count a number of marquis Israeli companies among our clients, as well as a host of highly innovative earlystage companies and leading research universities.
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
19
INTELLECTUAL PROPERTY & ISRAEL BY GREG KIRSCH
Given Israel’s reputation as “the Start-up Nation,” it’s not surprising that Israeli companies and universities generate a significant amount of intellectual property (IP) – patents, trademarks, copyrights and trade secrets. Israel has the second highest number of startups of any country of the world, behind only the United States. Most are technology focused, and Israeli inventors consistently rank among the most patented in the world, both in numbers and per capita. Given the impressive innovation being developed within Israel, companies worldwide routinely seek out Israeli companies to acquire. Many significant acquisitions have taken place in recent years. However, would-be acquirers of Israeli companies need to be mindful of the legal environment both in Israel and the U.S. when the acquisition of IP is involved. For example, the Israeli government provides a significant amount of funding to technology startups in Israel, through the government’s Office of the Chief Scientist (OCS). This type of funding comes with terms that are initially quite attractive for the startups – no grant of equity to the government, and a need to pay back the grant (with interest) only if the venture is successful. Of course, these generous terms come with restrictions, including with respect to any IP that is generated as a result of the funding. In exchange for a grant, the government wants to encourage companies to keep the IP and any know-how within Israel, and to keep any associated manufacturing activity within Israel, if possible. If an Israeli company that received a grant from the OCS wishes to transfer the resulting IP and/or know-how to a company outside of Israel, such as through an acquisition by a non-Israeli company, it must obtain permission from the OCS. This process typically involves repayment of the grant, and the payment of a penalty. While the specific grounds for obtaining permission from OCS can be complex, there are usually ways to mitigate the risks so as not to endanger the feasibility of an acquisition.
When the neighbors aren’t friendly, your country is only nine miles wide in some places and your back is against the sea, you learn several key things, which have become culturally ingrained for Israelis.
in Israel. Rather, it is looked upon as a learning opportunity, with the experience gained leading to a higher probability of future success. Thus, taking risks in order to achieve success is culturally accepted. When the neighbors aren’t friendly, your country is only nine miles wide in some places and your back is against the sea, you learn several key things, which have become culturally ingrained for Israelis. Goals must be accomplished quickly. Innovation, including challenging the accepted norm, is essential. The ability to collaborate with one’s colleagues to accomplish a needed outcome can, quite literally, mean the difference between life and death. In Israel, most adults, both men and women, serve a period of compulsory military service immediately after high school. After military service, Israelis take these experiences with them to the private sector – first in their university studies, and then in business. Many highly successful start-up companies were founded by those who served together in the Israeli military, including elite combat units and Unit 8200, which is Israel’s corollary to America’s National Security Agency.
20
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
Israel and Innovation
cellular telephone and many medical devices all have significant research roots in Israel. Credit for developing the ubiquitous USB drive that we know today is generally given to innovators at the Israeli company M-Systems, which was purchased by Sandisk. Development of capsule endoscopy – the Fantastic Voyage-like swallowable pill that takes and transmits high-resolution images of the digestive tract – was developed by Given Imaging, now owned by Medtronic. Robotic parking garages, to resolve the parking issues in high-density/high-property-value areas, are being built in U.S. cities by Unitronics. High-end manufactured quartz countertops are now being manufactured in the U.S. by Caesarstone. High-performance fabric created by Tefron is found in our clothing. And a much-needed alternative to the dreaded preparation for the highly important colonoscopy examination will soon be available from the Israel/U.S. company HyGIeaCare. (SGR has been pleased to count Given Imaging, Unitronics, Caesarstone, Tefron and HyGIeaCare among its clients.) In addition, many Israeli innovations are present in upgrades to U.S. Air Force fighters and Army equipment. For example, the Israeli company Elbit
U.S.–Israeli Economic Ties The benefits of the U.S.-Israel relationship have been very much a two-way street. A drive along a main highway leading north from Tel Aviv could easily confuse an American driver into thinking they were driving in Silicon Valley. In fact, the area has a nickname: “Silicon Wadi.” On building after building are the signs of major U.S. companies. Intel is Israel’s largest private sector employer, with close to 10,000 employees, and Israel is reputed to be the location of its largest R&D center outside of the United States. Apple recently opened its first non-U.S. R&D center in Herziliya, and now has nearly 1,000 employees in the country. Multiple times a year, acquisitions of Israeli companies and/or the establishment of technology development centers or incubators are announced by the likes of not only Intel and Apple, but also Microsoft,
The development of Microsoft Windows, Intel computer chips, instant messaging, the cellular telephone and many medical devices all have significant research roots in Israel.
developed the helmet-mounted display system for the new F-35 Joint Strike Fighter, and Israel’s Plasan will be one of Oshkosh Corporation’s major subcontractors in the manufacture of the new light multi-purpose military vehicle, which will replace the famous Humvee for U.S. military forces. Famed investor Warren Buffett has only invested in one country outside of the United States, and that is Israel. He had this to say when announcing that his firm, Berkshire Hathaway, had paid $2 billion for 20 percent of the stock of Israeli toolmaker Iscar (Berkshire Hathaway had previously purchased the other 80 percent): “Israel reminds me of the United States after its birth. … The determination, motivation, intelligence and initiative of its people are remarkable and extraordinary.” Q
Medtronic, Phillips, IBM, Cisco, Google, HP, Oracle, GE,
SGR looks forward to continuing to be of service to
Qualcomm, Motorola – and the list goes on.
Israeli companies and universities.
Similarly, very few Americans go through their day without benefiting from technology developed or enhanced in Israel. The development of Microsoft Windows, Intel computer chips, instant messaging, the
Jonathan Minnen is head of SGR’s Corporate Practice. jminnen@sgrlaw.com. Greg Kirsch is head of SGR’s Intellectual Property Practice. gkirsch@sgrlaw.com.
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
21
FOREIGN MANUFACTURERS
TRAPS FOR THE UNWARY
The legal complexities of selling and servicing machinery in the U.S.
F BY MICHAEL KRAUS
BY VICKIE CHUNG
oreign manufacturers
installation (or repair service under warranty) at
States provides for two distinct levels of income
who sell industrial
the customer site.
taxation. First, gainful activities are subject to
machinery and
The installation cannot include construction
federal income taxation. In addition, each of
work, except for supervision or training of
the 50 states maintains its own tax regime, with
the U.S., if they provide
U.S. workers to perform construction. If the
most states levying income tax on a state-by-
installation and repair services
technician sent to the United States is not
state basis with often diverging tax laws and
to their U.S. customers, face
eligible under the Visa Waiver Program, a visitor’s
regulations. Furthermore, a few cities and
potentially unforeseen legal
visa (B visa) would be required. If the 90-day
municipalities (most notably, New York City) levy
consequences with regard to
time limit (or 180-day time limit plus possible
an additional, third level of income taxation.
visas, federal and state taxes,
extension under a B visa) is exceeded, or if any
and local licensing laws.
of the other criteria of the program are not met,
double-taxation treaties with the U.S., the
We discuss the steps foreign
work authorization has to be secured, typically
definition of maintaining a fixed place of
manufacturers should take to
in the form of an E visa, L visa or H visa. The
business, or “permanent establishment,” is
protect themselves and their
application process for those types of visa is more
provided under those treaties. Article V of the
employees.
complex, and assistance from an experienced
U.S.-German Income Tax Treaty provides that
immigration attorney is recommended.
maintaining a construction site in excess
equipment in
1
Do I need a visa?
of 12 months constitutes a “permanent
most European citizens, may travel as tourists or
2
on business under the U.S. Visa Waiver Program
particularly at the state level, of installation of
without any formal visa application, and only
equipment by a foreign manufacturer are not
registration under the Electronic System for
appreciated. Prevailing tax law in the United
Citizens of many foreign countries, including
Since most industrialized countries have
Tax issues
establishment,” which subjects the foreign
Frequently, the income tax consequences,
manufacturer to U.S. federal income taxation because it is deemed to maintain a branch. However, even if the installation is performed in less than 12 months, many U.S. states
Travel Authorization (ESTA) is required. Under
mandate far narrower definitions of what
the program, a European executive may visit
constitutes “nexus,” i.e., maintaining sufficient
a corporate subsidiary or attend a trade fair.
business contacts, resulting in state income
Similarly, when specifically required by the
taxation. Under those provisions, even very short
purchase contract, technical experts who have
installation services, storing or using personal
to travel to the United States to install, service or
property such as tools and other items, or
repair equipment or machinery sold by a foreign
engaging in maintenance work may constitute
company to a U.S. buyer can travel under the
nexus and thus subject the unwary foreign
Visa Waiver Program.
manufacturer to state income taxation. Thus,
Travel for technicians and engineers installing foreign-made equipment in the United States is limited to a maximum of 90 days per stay and
state tax rules should be carefully reviewed prior to engaging in business activities. Failure to file income tax returns when
has to be in performance of a contract of sale of
required can result in severe civil and even
foreign equipment to the United States requiring
criminal penalties.
22
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
Foreign Manufacturers Israel and Innovation
3
Who needs a contractor’s license?
licensing is a prerequisite to bringing a lawsuit.
Most states require a contractor’s license for
Some states, such as Virginia, consider a
commercial, industrial or residential construction
contract with an unlicensed contractor to be
projects. Some states only require licenses where
void and unenforceable. Additionally, in the
projects exceed a specified dollar amount.
event the contractor is sued for unlicensed work, legal defenses such as waiver, estoppel or
The requirement for a contractor’s license
quantum meruit may be unavailable.
applies to both individual and entity contractors.
Second, an unlicensed contractor may
For foreign manufacturers with U.S. subsidiaries, it is important that the proper entity is licensed.
be forced to return all payments received
For example, if the foreign parent company is
for completed work. This is true even if the
the party to the manufacturing contract, the
contractor fully disclosed that it was not licensed
foreign parent company must be licensed at the
and the quality of the work completed was
time the contract is entered into and the legal
perfect.
obligation is created. The foreign manufacturer should also ensure that two or more of its employees performing the work carry a contractor’s license, if the state licensing board so allows.
There can be very serious consequences for the failure to obtain a contractor’s license.
Finally, an unlicensed contractor may be liable for monetary fines and/or jail time. For example, in California, those who are found to be contracting without a license must appear before a Superior Court judge to answer misdemeanor charges that carry a potential
How to obtain a contractor’s license
sentence of up to six months in jail and/or a
Generally, contractors may obtain licenses
which seeks to protect consumers who may be
$5,000 fine in addition to an administrative fine
through a state licensing board. Nearly all of the
damaged as a result of defective construction or
of $200 to $15,000. If unlicensed contracting
states require applicants to be at least 18 years
other license-law violations. The bond does not
continues, the penalties become more severe: a
of age with a high school diploma or equivalent;
protect contractors from liability in the case
second offense results in a mandatory 90-day
provide proof of U.S. citizenship, legal residency
of an accident on the job. Therefore, contractors
jail sentence and fine of 20 percent of the
or lawful presence in the U.S.; provide
must carry liability and worker’s compensation
contract price or $5,000.
documentation of any other occupational license
coverage in each state where they do business.
Because of the serious nature of these
• In addition to these state requirements,
consequences, foreign manufacturers should
any citations, violations or liens resulting from
many counties and cities will require their own
ensure they are properly licensed in each state
previous construction work. If the applicant is a
business or occupation licenses. For example, in
and municipality in which they do business.
corporation, it must register with the Secretary
New York, except for asbestos abatement work,
of State to do business in the state.
all construction work is regulated at a local level.
the applicant holds in the state; and explain
• Most states also require license applicants
Holding a license in one state usually does
Conclusion The sale of industrial machinery and equipment
to take a written examination on construction
not grant a contractor the right to perform
into the U.S. raises a host of issues pertaining
law, business organization and the skills of their
construction in another state. Because licensing
to visas, taxation, and state and local licensure.
occupation. These exams may be difficult for
requirements vary from state to state, foreign
Foreign manufacturers wishing to sell such
foreign applicants, as they generally require a
manufacturers should consult the rules of the
products in the United States should consult
good command of the English language and ask
licensing board in the state in which they wish to
with competent legal counsel to ensure
technical and legal questions.
do business. In addition, foreign manufacturers
compliance with all laws applicable to the
should also be aware of any county or city
provision of installation and repair services. Q
• Applicants may also have to prove financial ability to operate a construction business. Most
licensing requirements that apply.
states will also require proof of on-the-job experience, and may request letters of reference from previous employers and customers.
The consequences of failing to obtain a contractor’s license
• The taxing authority in each state has the
There are very serious consequences for the
right to set any conditions for doing business in
failure to obtain a contractor’s license. First,
that state, and many states will require licensed
an unlicensed contractor will be unable to sue
contractors to post a “state license bond,”
for payment in many states because proof of
Michael Kraus is a partner and the head of SGR’s International Practice. He works almost exclusively in the field of international business transactions. mkraus@sgrlaw.com. Vickie Chung is an associate in SGR’s Litigation and Zoning, Planning and Land Use practices. vchung@sgrlaw.com.
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
23
illness and keeps the family unit together in
SGR CLIENT PROFILE
HOME LOAN GUARANTEE COMPANY NPC
formal housing. As an indirect benefit of early detection and of appropriate treatment, and by virtue of parents surviving longer and living in formal housing, children in affected families have the opportunity to complete their education, thus breaking the potential spiral of poverty.
BY PREF RAMIREZ
The South African insurance firm, created to provide loans for low-income borrowers, has helped fuel economic growth
H
Housing for HIV Foundation Providing HIV and AIDS treatment is a long-term commitment that simply cannot be left to the vagaries of hand-outs and donations. It was, therefore, necessary to find a way to ensure a sustainable source of income to enable the HIV/AIDS testing, counseling and treatment
ome Loan Guarantee Company NPC
appropriate treatment for affected borrowers. In
program managed by H4H (the “HIV Program”)
(HLGC) was established in 1989 in a
the event of default due to AIDS incapacitation,
to operate for the lifetime of the borrower, and
South Africa plagued by civil unrest,
the borrower commits to a treatment program,
to facilitate and pay for treatment where it is not
mayhem and destruction. Born in a
and HLGC’s cover to the lender enables the
otherwise available from government clinics or
time of chaos and upheaval, the company was
borrower to remain in his or her home without
medical insurance.
formed specifically to take risk on home loans to
risk of eviction and without incurring additional
ensure that lenders made financing available to
interest or costs on the loan.
lower-income, but creditworthy, borrowers.
H4H also introduced home-based testing,
In 2008, Housing for HIV Foundation (“H4H Foundation”) was created as a 501(c) (3) foundation in the United States specifically
where borrowers are tested in the privacy
to raise funds for the HIV Program. Through
Housing for HIV
of their own homes by H4H nurses. Taking
Overseas Private Investment Corporation (OPIC),
During the 1990’s, the risk of HIV/AIDS in South
testing into homes rather than having people
JPMorgan Chase London and Structured
Africa – the country with the highest prevalence
stand in line, often for a long time in a less
Solutions, a structured finance transaction
in the world – was a factor that impacted banks’
than welcoming environment, brings care and
was successfully concluded utilizing financial
willingness to lend for lower-income housing
compassion to what can be a difficult and
market instruments. The transaction netted
purposes. HLGC determined that risk on loans to
emotional process. On a more practical level,
seed funding of $33 million (US) to the
HIV/AIDS-affected individuals could be managed
borrowers know their status immediately, thus
H4H Foundation for the HIV Program while
in one of two ways: an increase in premiums,
eliminating unnecessary and detrimental waiting
simultaneously producing market-driven returns
or treatment. HLGC opted for treatment and
time between testing, results and care.
to the investors.
established Housing for HIV (“H4H”) to manage
Linking voluntary care and treatment with
The income received from the structure was
the HIV and AIDS risk for HLGC by facilitating
sustainable home ownership effectively
donated to H4H by H4H Foundation. The H4H
access to voluntary counseling, testing and
monetizes the benefits of treating AIDS-related
Foundation is a precedent for philanthropic
24
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
Client Profile
Linking voluntary care and treatment and sustainable home ownership monetizes the benefits of treating AIDS-related illness and keeps the family unit together in formal housing.
• funding to small projects where the
licensed in South Africa and is currently being
beneficiaries hardly have sufficient resources to
implemented by a nurses association, and a
maintain their programs, let alone raise funds
taxi association. For example, taxi owners are
• insurance-based program risk sharing
responsible for the upkeep of their vehicles, but
with lenders who make loans to creditworthy
money given to the taxi drivers for maintenance
borrowers in the lower-income micro-, small-
is often spent by the drivers on something else.
and medium-enterprises (MSME) sector.
The Yomane platform ends all that, as the owner
A challenge in implementing such programs
prefunds the card, which can only be utilized at
is ensuring that funds are properly managed.
merchants that have signed on to the network
Experience has shown that where lower-income
and only for the services agreed to. Ngena is also
individuals suddenly have access to a lump sum
in conversations with a governmental agency
institutions to utilize well-secured debt to
of money from, for instance, a grant to make
in Europe about a benefits card, to ensure that
acquire sophisticated financial products in
improvements to a house to make it disabled
funds can only be used within the jurisdiction
order to create a sustainable income stream
friendly, or a loan to buy a sewing machine to
and, where required, for specific purposes. It
for social benefit.
start a dress-making business, the challenge is
is also exploring the feasibility of establishing a
to overcome the risk that the funds may be used
Yomane network in Brazil.
Ngena Foundation
for other financial obligations. To this end, and
With all of its originally intended programs
as a first step, Yomane was created.
Future potential uses for the Yomane platform include a mechanism for agricultural loans in rural Africa, and the ability to send money
up and running, HLGC decided to expand the Foundation’s mandate and seek other areas
Yomane
“home” from the cities to areas where there is
where it might have a social impact. Hence,
Ngena established Access Gateway Technology
limited banking access. Potential lenders who
Housing for HIV Foundation became Ngena
Solutions Inc., which has acquired and
were uncomfortable with risk can now enter
Foundation (“n-geh-na”) – “ngena” being
developed a payments platform called Yomane
into the market with confidence. Q
the Sesotho word for “access.” Ngena is now
to facilitate access to basic banking services
looking at facilitating access to life-changing
for individuals who do not have access to
Pref Ramirez represented Housing for HIV
financial services, such as:
the banking system or are “underbanked.”
Foundation on the structured loan facility
Using “closed loop,” as opposed to Europay,
involving OPIC and JPMorgan Chase London
MasterCard and VISA (EMV) processing, the
described above, which resulted in funding
Yomane platform facilitates a personal online
for the HIV Program. He currently is assisting
account via a prefunded card and/or a mobile
Ngena to establish the Yomane payments
telephone application, with functionality similar
network in Brazil.
• financing for creditworthy, lower-income individuals to build their own homes • micro-enterprise financing to allow small businesses to develop and grow • financial guarantees to banks for the portion of the construction financing that would have
to the banking apps offered by banks – all at
been covered by the buyer deposit in the lower-
no charge to the individual. Yomane has a
income sector
controlled gateway, ensuring that all funds reach
• banking services to lower- and middleincome people in under-resourced communities
their intended destination. The Yomane network has been tested and
Pref Ramirez is a partner in SGR’s Corporate and International practices. He focuses on leveraged finance transactions, acquisitions and commercial transactions. pramirez@sgrlaw.com.
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
25
SGR PARTNERS WITH
CRISTO REY ATLANTA JESUIT HIGH SCHOOL
SGR attorneys help coach and mentor the next generation
H
igh school students walking the halls of
of 30 Catholic, college preparatory high schools
to realize that vision.Through this innovative
the Atlanta office of Smith, Gambrell &
for underrepresented urban youth. Their goal
program, students work five full days a month at
Russell have been a welcome addition
is to change the face of urban education in the
top local companies. In fact, some of the other
United States.
CWSP partners are clients of SGR.
to the Firm. SGR has partnered with Cristo Rey Atlanta Jesuit High School’s Corporate Work
The objective of the CWSP is to help students
“SGR is proud to be a job partner with Cristo
Study Program (CWSP) for the 2015/16 school
envision a future that includes a college degree
Rey,” said Steve Forte, SGR’s Managing Partner.
year. Cristo Rey High School is part of the
and a successful professional career, and to equip
“This program follows a nationally proven model
national Cristo Rey Network, which is comprised
them with the knowledge and skills needed
that helps young people in our community
26
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
Finish Line
Pictured left with SGR’s Cristo Rey students are (from left to right) Director of Marketing and Business Development Lee Watts, associate Harrison Anthony and legal assistant Cheryl Walker.
WHAT THE STUDENTS SAY ABOUT THE PROGRAM Mariana Rodriguez
achieve success during their high school years
“I enjoy working at SGR and meeting new people. I know that this experience will help me in the future.”
that will carry them through college and into their professional careers. Our lawyers and staff are excited to participate in the personal development of the Cristo Rey students.” The earnings from their work pays for a large percentage of each student’s tuition costs, giving them access to a rigorous, quality college preparatory education that otherwise would be too expensive. Cristo Rey students also gain valuable real-world job skills, contacts and experience through this program, and go on to college in record numbers, in large part because of their early exposure to the working world. As freshmen, student workers are introduced to the basic skills needed to participate in entry-level office jobs. Students then increase their understanding of general office culture,
The Cristo Rey students gain valuable real-world job skills, contacts and experience through this program, and go on to college in record numbers.
professional skills and daily responsibilities with their supervisor and colleagues as sophomore students. When students reach their junior and
Monday is the one day of the week in which
senior years, job placement begins to mirror a
students rotate their attendance at the Firm.
college-level internship.
Attorneys meet with each student over breakfast and discuss various topics, including work,
How the Program Works
school, extracurricular activities and sports. It has
Four students have been assigned to SGR. Each
been a great experience for both the students
workday, a different student arrives at the Firm
and the attorneys.
and reports to his or her assigned department.
The Firm also taught a Digital Citizenship
Assignments range from filing, organizing and
class for the Business Institute at Cristo Rey.
scanning documents, to assisting our information
“It was exciting speaking to 46 energetic and
technology department with programming
eager teenagers about social media,” says Lee
computers and phones, to creating electronic
Watts, SGR’s Director of Marketing and Business
surveys and designing invitations.
Development. “Although they wanted to talk
At SGR, the students are exposed to attorneys
about Instagram and Snapchat, I wanted to
as well as to the administrative side of a law
make sure they understood responsible uses
firm including marketing, recruiting, accounting,
of the Internet and social media. It was fun.”
information technology, records and the library.
In addition, SGR’s Kristen Lewis has committed
The students have also added to the Firm and given another glimpse of innovation and fresh ideas.“It has been a really fun experience so far,”
to mentoring a freshman at Cristo Rey for the student’s four years of high school. We are delighted to have our four Cristo Rey
says Zaire, a sophomore at Cristo Rey. “I love
students at SGR. It has been wonderful to get to
learning new things.”
know them, see them learn new skills and have
The Firm has also adopted Mentoring Monday.
Zaire Williamson “Smith, Gambrell, and Russell helps provide me a better opportunity to reach out into the real world and explore my options.” Julia Sanchez “This has been a great opportunity to learn more about a different field and how things work in a law firm.” Kondarius Lindsey “I like working at the law firm because I can learn from successful people and also am inspired to do the right thing.”
WHAT SGR SAYS ABOUT ITS NEW STUDENTS Lee Watts Director of Marketing and Business Development
“It is a pleasure and a privilege to host the four students from Cristo Rey Atlanta Jesuit High School. The program is mutually beneficial and we are delighted to continue to be involved.”
them offer interesting and helpful ideas. Q
TRUST THE LEADERS | Winter 2016 | SGRLAW.com
27
Trust the Leaders is printed on recycled paper