Contracts, Visas, incorporation for French High Tech Companies ; Contrats;

1. 1
US HIGH TECH MARKET ACCESS
Aider les entreprises francaises à gérer
leurs questions juridiques
Williams Mullen
1666 K St. N.W. Suite 1200
Washington, D.C. 20006
En appel direct : 001.804.420.6482
Eliot Norman and Robert (“Rob”) Van Arnam
enorman@williamsmullen.com
rvanarnam@williamsmullen.com 919 981 4055
http://www.linkedin.com/in/businessimmigrationlawyer

2. INTRODUCTION
2

3. Introduction: L’espirt
Américain
3

4. 4

5. The New Southeast U.S. Aerospace Cluster
Eliot Norman
enorman@williamsmullen.com
Bill Benos
bbenos@williamsmullen.com
• Mobile, AL (Airbus)
• Savannah, GA (Gulfstream-General Dynamics)
• Charleston, SC (Boeing)
• Greensboro, NC (Hondajet)
• Durham, NC (GE Aviation)
• Richmond/Petersburg, VA (Rolls-Royce)
• Melbourne, Fla (Embraer 5

6. American Business Culture:
• Optimistic: The Frontier Spirit « le pays des start-ups »
• Entreprenurial spirit is in the DNA
• Par contre: Law and contracts must be respected;
everything is in the contract once it is signed
• No link between contract and personal relationship:
« its just business, it’s not personal » « business is
business »
• Dans les négociations, a la fin , tout doit être
documenté.
• Les Etats-Unis: un pays mais 50 états pour les contrats
6

7. Attention!
• Pour réussir il faut maitriser ces contrats.
• Il faut limiter le Régime de Responsabilité dans
une façon qui est consistante avec vos risques:
• Eviter les pièges:
– « miscellaneous »
– « définitions »
– « flow-through » ou
« incorporation par référence »
• RTBC! RTBC!
7

8. 8
Final Points: Management of Contracts
• « Americanize » your agreements !
• Examine with care your commercial contracts: ask for legal advice
to interpret and apply under the law of the state that will govern
any dispute:
• Pay close attention to liability provisions, including responsibility
for defective products, liquidated and consequential damages,
and the obligation to indemnify Buyer for damages…
• Review for time deadlines on giving notice; flow down issues
• Government contracts present special problems and all provisions
must be understood and respected;
• Don’t get caught:
• Consider dispute resolution solutions:
Mediation
Arbitration
• It is often far less expensive and must faster to resolve
disputes before the Federal U.S. District Courts.

9. Le Défi Juridique Américain
9

10. "Règles du jeu équitables??”
créer un « level
playing field »
Partir sur un pied
d ’egalite
avec vos
concurrents
américains
11/01/14 10

11. Solution: The FAQ
(Frequently Asked
Questions)
11
An introduction

12. THE FIRST SIX MONTHS: LEGAL CHECKLIST
How to Help Your Company Compete for Business in the USA
12
Starting up Operations: The First 6 months
- Legal Strategies that you should consider.
- Legal strategies to help accelerate your growth
in the U.S. market

13. The First Six Months: “Start-up” Legal
Services For Your U.S. Company
1. Form U.S. company: corporation or limited liability company; set up of holding
company? Incorporate in Delaware or another state? Review tax consequences
in setting up the right corporate structure for your business.
2. Qualify your company to do business in multiple states.
3. File for “New Office L-1 Visa” for your managers or technical personnel; or
use
E-2 Visa for company making substantial investment;
4. Advise on using B-1 Visas for short-term transfers to support contracts or
specific projects;
5. Advise on application of local/state taxes
6. Conduct trademark search and file trademark application; advise on patent
issues or ownership of intellectual property.
7. Obtain Internal Revenue Service Employer Identification Number (EIN); Social
Security Numbers, business licenses, any other state and local registrations
8. Review of office or warehouse lease.
9. Draft Employee Handbook, provide briefing/training for managers and
expatriates on federal and state employment laws.

14. Start-up Legal Services
10. Review commercial contracts, master supply agreements, advice on
limiting liability for indemnification, consequential damages, warranty
claims, etc.
11. Review applicability of Export Controls regulations, advice on how to
set up a Compliance Program
12. Advice on structuring Teaming and Joint Venture Agreements under
U.S. contract laws
13. Advice on U.S. customs regulations, valuations and classification of
products exported to the USA
14. Review distribution/agency/licensing agreements for selling products
in U.S.
15. Economic Incentives: review of Performance Agreements and
incentive packages offered by competing State or Regional Economic
Development Agencies; advise and assist with economic development
location issues and decisions.
16.Provide initial briefing on obtaining government grants, contracts and
subcontracts;
17. Other general business legal advice
14

15. Donc, ayez confiance: Voici le
petit déjeuner de vos avocats
américains
11/01/14 15

16. SI nous étions des avocats, nous pourrions facturer nos
honoraires a l’heure
IF WE WERE LAWYERS, THIS WOULD BE BILLABLE TIME
16

17. THE FIRST SIX MONTHS
• A realistic legal budget
• Solution: « un forfait » (Fixed Fee) or « un
plafond » CAP on hourly fees for First 6 Months
for Start-up Legal Services (veuillez voir la
plaquette)
• Les FAQ et Reponses pour votre entreprise : toute
la gamme, ONE STOP SHOPPING, from A-Z.
• This is what you really need.
17

18. 18
II Les 4 sujets juridiques
Rob Van Arnam

19. La competitivite
Pour rester compétitives, les sociétés
françaises devraient: assembler ou fabriquer ou
fournir des services dans la zone « dollar »,
les points clés:
1. reconnaitre l’importance du bon choix de visas pour les transferts du
personnel clé
2. choisir la structure juridique pour votre entreprise américaine qui
correspond a ses activités
3. Protéger et exploiter leur propriété intellectuelle
–« américaniser » (localiser) leur entreprises et leurs contrats
ET comprendre le système juridique américain et travailler avec un
avocat qui peut établir un « level playing field » pour son client
19

20. It all starts here
11/01/14 20

21. 21
Attention!
Homeland Security is in charge of
immigration to the USA

22. 22
Visas: Practical Solutions for Visitors
• Reforms in use of « Shengen » type visas
– Visa Waivers (ESTA);
– Can work under B-1 in support of international
supply agreement ( example)
– B-1 in lieu of H-1B (design engineers)
• This is important to help you get started.
– If you can show your U.S. buyer you can send
the key technical staff, you can win the work and
the contracts to support your first office
• Nouveau Problème: Présence physique fiscale;
et vous perdez d’autres opportunités
Sans un carte de visite américaine.

23. 23
LA PYRAMIDE DE VISAS AMÉRICAINS
G R E E N CARDS
L-1A/L-1B,
E1/E2 Investors/
Treaty Traders
TN, H-1B/O-1
B-1/ F-1/J-1/H-3, H-2B
90 Day
ESTA Visa
Waivers
B-1 Business
Visitors
(B/2) (tourists)
EB-1 Multinational Managers/Executives & EB-1
Extraordinary Ability and Outstanding Researchers;
EB2/3 PERM Labor Certifications for professionals, skilled
workers leading to Green Cards;
EB2 Green Cards for National Interest Waivers,
FAMILY SPONSORSHIP (marriage to U.S. Citizen or, Green
Card Holder; Diversity Lottery. EB-5: $500,000 Investors
EXECUTIVES, MANAGERS, Specialists and Essential-
Skills Employees for U.S. Offices of International
Companies
PROFESSIONALS; Extraordinary Ability
Scholars & Scientists
TRAINEES & FOREIGN STUDENTS
Research Scholars & Specialists;
Temporary workers , VIE , Interns.
BUSINESS VISITORS:
Negotiate Contracts, Consult;
Trainees, Install Equipment
if Purchased Overseas; Visa Waiver
B-1 au lieu de H-1B: 6 month project
requiring professional services.
6693462

24. Case Illustration: L-1 ou E-2 Intra-
Company New Office Transfers
Toulouse Composites SAS
Managers, Executives
Engineers
Technicians
100%
Super Composites USA,Inc.
Mobile, Alabama USA
Project Managers
and
Specialists
Composites
Engineers
100%
Composites GmbH.
Munich, Germany
11/01/14 24

25. Case Illustration: E-2 Individual
Investors/Specialists/Executive Visas
Sophie et Pierre
Project Managers
100%
Composites
Engineers 50%
50%
Super Composites USA,Inc.
Mobile, Alabama USA
and
Specialists
11/01/14 25

26. Quelle structure
pour quel projet?
Formation de
L’Entreprise Americaine
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llaa ssttrruuccttuurree jjuurriiddiiqquuee::
IImmpplliiccaattiioonnss ffiissccaalleess,,
ccoonnttrraaccttuueelllleess,, eett ppoouurr lleess
vviissaass 26

27. C Corporation
Limited
Liability
Company
+ dividends to shareholders

28. Derniere Question?
Incorporer a Delaware?
• Delaware or other states
• Qualifying to do business in other states
• Veuillez voir Handbook FAQ # 3
• Other Tax Considerations among States?
– See FAQ Handbook # 4
11/01/14 28

29. Le Holding ?? Cas pratique #4
USA Holding Co.
US Factory US R&D Startup
Business
« C’est vraiment pour plus tard dans le développement
de l’entreprise »

30. Next Step: Joint Venture
30

31. Next Step: Joint Venture?
American : Luxury
Vehicle Parts, Inc.
USA
French: Super
Composites
USA , Inc.
50% 50%
U.S. Joint Venture LLC
SUV Composites, LLC

32. Joint Venture
Common development of a new Hatch in rear and
Sunroof cover for the BMW SUV :
Consider:
– Division of profits;
– Liability: one venture partner binds the other
– Resolution of disputes
– What acts can be undertaken independent of and
outside the JV
– Who owns the improvements? Cross-licensing
– Termination and grounds for withdrawal
– What structure for the JV?
11/01/14 32

33. Final Thoughts: Joint Venture
• Define well the scope of the joint venture
agreement and use an American contract
• Des Avantages: Notre exemple du JV
Canadien-Français Know how to end it before
you sign it
• ****Plan for the divorce before you get
married****
33

34. Alternative: Teaming
Agreements
• Teaming Agreement: Defined
• Major Elements and Protections
for French Company as Teaming Partner &
subcontractor: exclusivity, scope of work, data
exchange subject to NDA, pricing within prime
contractor’s target ranges, easy termination.
• Sample Teaming Agreement Checklist: PDF from
enorman@williamsmullen.com
• Substantial advantages over typical prime-sub
relationships and Joint Ventures:
• Tres “a la mode” dans le domaine des contrats
gouvernmentaux : vous donnera aussi la souplesse avec les
grands Tier 1.” pour les contrats commerciaux
11/01/14 34

35. Alternative to JV = M&A
• Benefits of M&A
– localize and « americanize » your French an
business
– add to your competitivity: 2 ways:
– create a level playing field with your american
competitiors
– Less complex, ultimately more profitable than a JV
– Gives your company the ability to raise capital from
private equity and commercial banks in the USA
35

36. IP: Rob Van Arnam
36

37. Conclusion
37

38. Conclusion : Votre réussite dépendra en
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fin de compte …
• du choix de la structure juridique pour votre entreprise
américaine qui correspond a ses activités
• des solutions de visa efficaces pour votre personnel clé
• de l’importance des règlements gouvernementaux,
• de l'attention portée à la gestion des contrats et à leur
américanisation [Model Supply Agreement]
• de l’adoption des stratégies qui vous permettent
d’accélérer votre croissances aux Etats-Unis
• de trouver des conseillers qui ont l’expérience pour
vous aider dans votre implantation aux Etats-Unis

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40. 40
Thank You
Eliot Norman, Esq.
enorman@williamsmullen.com
www.williamsmullen.com
001/804.420.6000
Washington, DC USA

41. 41
QUESTIONS ?
Eliot Norman
Williams Mullen
Washington, D.C.
Virginia
North Carolina
Direct Line: +1.804.420.6482
enorman@williamsmullen.com
http://www.linkedin.com/in/businessimmigrationlawyer