ISRAEL PRACTICE NEWSLETTER
SUMMER 2020
TABLE OF CONTENTS Introduction..............................................................................................................................................................................2 Free Trade Agreement Between Colombia and Israel Comes into Force...................................................................................2 We’re Open for Business: Israeli Companies in the U.S............................................................................................................3 The Tripartite Relationship between Britain, Israel and United States: Effects of Brexit on the Israeli State.................................3 Negotiation and Drafting Issues Surrounding Force Majeure Provisions....................................................................................4 Navigating Pre-Negotiation and Forbearance Agreements in the New Economy: Considerations for Lenders...........................4 Rule Banning Chinese Telecommunications Equipment Is Released.........................................................................................5 COVID-19 Insights....................................................................................................................................................................6 Media Mentions and Speaking Engagements...........................................................................................................................6
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ISRAEL PRACTICE
NEWSLETTER Holland & Knight is a U.S.-based global law firm with a strong commitment to the state of Israel. We focus on providing guidance to Israeli investors and companies interested in doing business in the United States and Latin America. With more than 1,400 professionals in 27 offices, our lawyers and professionals are highly experienced in all the interdisciplinary areas necessary to guide entrepreneurs, investors, and startup or established companies through the opportunities and challenges that arise throughout the business or investment life cycles. Areas of legal guidance that are typically provided to our Israel Practice clients include real estate, mergers and acquisitions, private equity, international tax, cross border and customs, internet privacy and cybersecurity, intellectual property, government lobbying, regulations and compliance, U.S. Foreign Corrupt Practices Act (FCPA), U.S. Foreign Account Tax Compliance Act (FATCA), and litigation and dispute resolution. We invite you to read our Israel Practice newsletter, in which our authors discuss pertinent American-Israeli topics. As Israel has been a crossroads and a prolific source of new ideas for more than 3,000 years, a natural tradition of inventiveness finds its most recent expression in the creation of a technology startup ecosystem with global impact. This newsletter addresses, among other relevant topics, how the innovative technologies and ideas generated in Israel can be deployed in the United States and globally. We invite you to discuss your thoughts on this issue with our authors listed within the document. Please note: Holland & Knight has established a COVID-19 Response Team to help address business, regulatory and legal issues companies may face related to COVID-19.
Introduction Free Trade Agreement Between Colombia and Israel Comes into Force By JosĂŠ Vicente Zapata and Rafael Toledo Plata The Free Trade Agreement (FTA) executed between Colombia and Israel entered into force on Aug. 10, 2020. This FTA is considered one of the most innovative FTAs to date, to the extent that it includes, in addition to the tariff provisions that are typically part of these commercial agreements, the possibility of negotiating services, as well as regulation on investment and public procurement. Through this agreement, Israel becomes a strategic partner for Colombia in the Middle East, which will allow the consolidation of a solid commercial exchange that will meet the needs of both nations. Israel interests, in turn, will be of particular importance in Colombia. Read full article >>
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We’re Open for Business: Israeli Companies in the U.S. By Meital Stavinsky Notwithstanding the omnipresence of COVID-19, employers are looking to bring employees back to the office. Just as previous downturns and major catastrophes led to a flow of lawsuits, the current pandemic is no exception. In an attempt to limit such lawsuits, in May of this year, the Safe to Work Act was introduced by U.S. Sen. John Cornyn (R-Texas). Should it be enacted, the Act would shield businesses, schools, nonprofits, government agencies and other organizations from COVID-19-related lawsuits through Oct. 1, 2024, as long as they make “reasonable” efforts to follow public health guidelines and do not commit acts of “gross negligence” or “intentional misconduct.” State civil immunity laws vary widely across the U.S. Currently, nearly a dozen states have already enacted legislation limiting COVID-19-related civil liability for a broad range of businesses. Either way, Israeli companies with U.S. operations may wish to keep up-to-date and be well versed in the new business environment and expanded employers’ responsibilities as set by federal, state and local government workplace guidelines. Reprinted with permission from The Times of Israel Read full article >>
The Tripartite Relationship between Britain, Israel and United States: Effects of Brexit on the Israeli State By James Harvey Cottrell Jr. and Caroline D. Bisk What does Brexit mean for Israel? Certainly, it will have some effect on Israel’s economic and political relations with Britain and Europe, especially as much of Israel-U.K. trade – worth roughly 20 billion shekels (approximately US$5.9 billion) – is governed by Israel-European Union (EU) trade agreements. However, the effect on Israel will not be direct. If the U.K. eventually leaves with a deal, existing arrangements will be maintained. If it leaves without a deal, a new bilateral U.K.-Israel agreement, already agreed in February 2019, will replace Israel-EU trade agreements. Beyond economics, Brexit will impact internal dynamics shaping EU foreign policy, including toward Israel. Israeli politicians generally perceive EU diplomacy as biased toward the Palestinians. Britain has typically resisted French-led efforts to impose the EU into the peace process, and favored a balanced approach supporting U.S.-led diplomacy. Israel may therefore find cause to rue the weakening of Britain as mediator between the U.S. and Europe. Read full article >>
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Negotiation and Drafting Issues Surrounding Force Majeure Provisions By Charles A. Weiss Force majeure provisions are often included in commercial contracts spanning a wide variety of businesses. The COVID-19 pandemic has spawned an epidemic of articles and alerts directed to using — or avoiding the use of — such provisions, as well as litigation developments and trends surrounding them. By nature, those writings are reactive. This article, by contrast, seeks to be proactive. Too often, force majeure provisions are included in the boilerplate section of contract without sufficient consideration of whether they are necessary or desirable in the first instance, possible conflicts with specific terms of the agreement that address a party’s failure or inability to perform, and tailoring them to avoid unintended and undesirable consequences for one of the contracting parties. Accordingly, our goal is to step back from the current press of claims and defenses arising from force majeure provisions in favor of helping those who are negotiating and drafting new agreements rethink assumptions about the need for, and desirability of, such provisions. Read full article >>
Navigating Pre-Negotiation and Forbearance Agreements in the New Economy: Considerations for Lenders By Herman R. Lipkis and Judith E. Kreitzer As a result of the COVID-19 pandemic, many businesses are struggling with paying back their loans. Lenders are facing difficult conversations and decisions regarding their borrowers. While foreclosure and litigation is a possibility, there are other options such as forbearance agreements that lenders should consider first. This article discusses tips for lenders on what to include in their forbearance agreements and pre-negotiation agreements. Israeli clients – both lenders and borrowers – can benefit from understanding how forbearance agreements and pre-negotiation agreements work in the United States and the rights of liabilities that they entail. Reprinted with permission from The Mortgage Banker Magazine Read full article >>
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Rule Banning Chinese Telecommunications Equipment Is Released By Eric S. Crusius and Mary Beth Bosco A new interim final rule took effect on Aug. 13, 2020, that will bar contractors from receiving federal contract awards if they use certain Chinese telecommunications and video surveillance equipment or services (absent a waiver). The ban will impact new contracts and contract renewals and will cover all contractors no matter their location; including those in Israel. Further, multiple-award contracts, such as orders under the General Services Administration’s (GSA) Schedule contracts, are included. In that case, GSA Schedule contract holders will have to accept the modification in order to receive awards after Aug. 13, 2020. Read full article >>
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COVID-19 Insights Holland & Knight in partnership with the Israel-America Chamber of Commerce keeps you updated on pertinent American-Israeli topics relating to legal considerations and federal funding opportunities in connection with the coronavirus (COVID-19). Please see COVID-19 Focus on Israel on our website for the latest updates.
Media Mentions and Speaking Engagements Cannabis Regulation Around the World, Cannabis Forum Meeting of the Manufacturers Association of Israel, Meital Stavinsky, September 7, 2020 Open to Business in the US: What Should Israeli Companies Know?, Calcalist, Meital Stavinsky, August 25, 2020 Israeli Businesses with COVID-19 Solutions: How to Get Federal Funding and Sell to U.S. Government, Webinar co-sponsored with EY, Meital Stavinsky and Ronald Klein, June 3, 2020 The Coronavirus Pandemic and the Future of the ESG for Companies and Investors, The Times of Israel, Meital Stavinsky, June 1, 2020 COVID-19 – Challenges and Opportunities for the AgTech and FoodTech Industries, The Times of Israel, Meital Stavinsky, May 27, 2020 Corona Leadership – Why Female Management Style Is Better in Crisis, Calcalist, Meital Stavinsky, May 15, 2020
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A Strong Commitment to the State of Israel Holland & Knight is a U.S.-based global law firm with a strong commitment to the state of Israel. We focus on providing guidance to Israeli investors and companies interested in doing business in the United States and Latin America. With more than 1,400 professionals in 27 offices, the lawyers and professionals in our Israel Practice are highly experienced in all of the interdisciplinary areas necessary to guide an entrepreneurial or an established company through the opportunities and challenges that arise throughout the company’s life cycle. Areas of legal guidance that are typically provided to our Israel Practice clients include real estate, mergers and acquisitions, private equity, international tax, cross border and customs, internet privacy and cybersecurity, intellectual property, government lobbying, regulations and compliance, reimbursement, U.S. Foreign Corrupt Practices Act (FCPA), U.S. Foreign Account Tax Compliance Act (FATCA), and litigation and dispute resolution. Among our Israeli clients are leading innovative technology companies in a wide range of industries, including information technology, advanced transportation, agtech, cleantech, healthcare and life sciences, medical devices and cybersecurity. Our Israeli real estate clients are leading commercial and residential developers and investors, and Holland & Knight’s venture capital and private equity attorneys advise both Israeli funds and U.S. funds investing in Israeli companies. A core value of Holland & Knight is our dedication to delivering the highest quality of legal services and providing responsive and cost-effective counsel to every client. This core value of the firm – coupled with our business acumen, legal experience and solid commitment to the Israeli marketplace – enables us to successfully assist our Israeli clients operating in the United States, as well as companies and investors doing business in Israel. The members of our team have client and business meetings in Israel on a regular basis and would be delighted to arrange for a meeting in person. Please do not hesitate to reach out to us with any questions, as we look forward to helping you excel and achieve your business goals in the U.S. and Latin America.
מחויבות עמוקה למדינת ישראל אנו מתמקדים במתן שירותי יעוץ למשקיעים וחברות ישראליות. הינה פירמת עורכי דין אמריקאית גלובלית בעלת מחויבות עמוקה לשוק הישראליHolland & Knight עורכי דין ואנשי מקצוע1,400- מעסיקה למעלה מHolland & Knight פירמת עורכי הדין.המעוניינים להרחיב פעילות או להשקיע בארצות הברית ובאמריקה הלטינית ומספקים מגוון, הפוליטיקה והסביבה החברתית בישראל, הינם בעלי הבנה עמוקה של הכלכלהHolland & Knight חברי הפרקטיקה הישראלית של. משרדים27-ב לחברי הפרקטיקה הישראלית שלנו ניסיון רב בכל תחומי המשפט.רחב של שירותים משפטיים ללקוחות ישראלים שפועלים בחו"ל ולחברות ומשקיעים הפועלים בישראל . חברות הזנק וחברות מבוססות בכל שלבי ותהליכי הצמיחה וההתפתחות של החברה, משקיעים,הנחוצים כדי להנחות יזמים פרטיות ואבטחת, מסחר בינלאומי ומכסים, מיסוי בינלאומי, קרנות השקעה, מיזוגים ורכישות, נדל"ן,התחומים בהם אנו מייעצים ללקוחותינו הישראלים כוללים בין היתר . סיוע ביישוב סכסוכים עסקיים וליטיגציה,FATCA - וFCPA לרבות, ייעוץ לוביסטי ורגולטורי, קניין רוחני,מידע , אנרגייה, מים, סביבה, חקלאות, תחבורה חכמה, לרבות בתחומי טכנולוגיות מידע ותקשורות,בין לקוחותינו הישראלים נמנות חברות מובילות בתחומי החדשנות הטכנולוגית עם. עם לקוחות הנדל"ן שלנו נמנים משקיעים וחברות מובילות העוסקים הן בנכסים לשימוש מסחרי והן בנכסי נדל"ן למגורים. ציוד רפואי ואבטחת מידע,מדעי החיים .לקוחותינו בתחומי ההון סיכון וקרנות השקעה נמנות קרנות ישראליות וקרנות זרות המשקיעות בישראל ערך מרכזי. הוא מחויבותנו להעניק שירותים משפטיים באיכות הגבוהה ביותר ולספק יעוץ אישי המותאם לצרכיו של כל לקוח ולקוחHolland & Knight ערך מרכזי של מאפשרים לנו לסייע בהצלחה ללקוחותינו הישראלים הפועלים בארצות הברית- הניסיון המשפטי ומחויבותנו האיתנה לשוק הישראלי,זה בשילוב האינטיליגציה העסקית נפגשים עם לקוחות בישראל באופן קבוע וישמחו, שחלקם דוברי עברית, חברי הפרקטיקה הישראלית שלנו. ולחברות ומשקיעים הפועלים בישראל,ובאמריקה הלטינית .לתאם פגישות עם חברות ויזמים המעוניינות ללמוד על הדרכים בהן נוכל לסייע להצלחת מיזמים עסקיים בארצות הברית ובאמריקה הלטינית
For inquiries regarding this newsletter, you may contact: Ronald J. Klein Co-Chair, Israel Practice Fort Lauderdale +1.954.468.7874
Meital Stavinsky Co-Chair, Israel Practice Miami +1.305.789.7710
Washington, D.C. +1.202.469.5152 ron.klein@hklaw.com
Washington, D.C. +1.202.828.5004 meital.stavinsky@hklaw.com 7
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