the art of contrac - association of corporate...

TheArtofContrac.ngToolsandTipsforIden/fyingandAvoidingCommon

TrapsinCommercialContracts

April12,2017

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• Howarevariouseffortsstandardsinterpreted?Efforts

• Whatismaterial?Materiality

• Whatclaimsarecovered?AretherelimitaPons?

IndemnificaPonandLimitaPonofLiability

OverviewofToday’sWorkshop

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STANDARDSOFEFFORT

Phrase #ofContractsUsing

#ofContractsDefining

bestefforts 627 1

commerciallyreasonableefforts 425 1

reasonablebestefforts 345 0

reasonableefforts 307 0

good-faithefforts 58 0

commerciallyreasonablebestefforts 46 0

diligentefforts 23 0

good-faithbestefforts 8 0

everyeffort 5 0

commerciallyreasonableanddiligentefforts 3 1

WhatStandardsofEffortAreUsed

“Understanding ‘Best Efforts’ And Its Variants,” Kenneth A. Adams, The Practical Lawyer, 2004 4

OpeningThoughts

•  Languagemaydriveconductevenifitsenforceabilityisques.onable.

•  Nego.a.nghistorymaymaMer.•  Striveforconsistencyandclarity.

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»  Heavilynego.ated–  ContractlawyersoYenusemorethanonestandardinanygivencontract.

–  AvoidsnakedobligaPonsandisespeciallyusefulwhenperformanceoftheobligaPonisnotenPrelywithintheperformingparty’scontrol.

»  Frequentlyli.gated…

»  …tounpredictableresults.

WhytheFocusonEffortsClauses?

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» Obligatesperformingpartytousesomelevelofdiligencetoaccomplishacontractuallyassignedduty.

•  Example:Contractobligatesdistributortouse“bestefforts”topromoteandsellmanufacturer’sproducts.

WhatDoesBestEffortsMean?

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»  Delaware:Promisormust“undertakeitscontractualobligaPonsdiligentlyandwithreasonableeffort.”

»  California:“Besteffortsdoesnotmeaneveryconceivableeffort.Itdoesnotrequirethepromisortoignoreitsowninterests,spenditselfintobankruptcy,orincursubstanPallossestoperformitscontractualobligaPons.”

SeeCal.PinesProp.OwnersAss’nv.Pedo5,206Cal.App.4th384,387(2012);Crum&CrumEnters.,Inc.v.NDCofCal.,L.P.,2010WL4668456,*5(D.Del.Nov.3,2010)

Interpre.ngBestEffortsClauses

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“I can’t agree to use best efforts! That would

require me to bankrupt my company!”

DebunkingtheNewYorkMyth

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Levelofeffortrequiredis“murky”:»  “duediligence”

–  VanValkenburgh,Nooger&Nevillev.HaydenPubl.Co.,30N.Y.2d34,45(N.Y.1972)

»  “allreasonablemethods”–  TownofRoxburyv.Rodrigues,716N.Y.S.2d814,815(N.Y.App.Div.2000)

»  “reasonableefforts”–  TimberlineDev.LLCv.Kronman,702N.Y.S.2d237,239(N.Y.App.Div.2000)

»  “genuineeffort”–  FosterWheelerBroomeCnty.,Inc.v.CountyofBroome,713N.Y.S.2d92,94(N.Y.App.Div.2000)

SeealsoAshokanWaterServs.,Inc.v.NewStart,LLC,807N.Y.S.2d550,553(N.Y.Civ.Ct.2006)(summarizingpriorinterpretaPonsof“bestefforts”standards)

So,WhatDoesNYCaseLawActuallySay?

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» NocaseidenPfiedrequiringaperformingpartyto“spenditselfintobankruptcy.”

»  TheSecondCircuithasheldthatNewYorklawdoesnotrequireapartyperformingundera“bestefforts”standardto“spenditselfintobankruptcy.”

Bloorv.FalstaffBrewingCorp.,601F.2d609,614(2ndCir.1979)

Bankrup.ngtheCompany

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»  “PracPPoners...tendtoviewalltheotherphrases,whileperhapsnotbeingtoodifferentfromeachother,asbeingdefinitelydifferentfrom“bestefforts.”

LouR.Kling&EileenT.Simon,NegoPatedAcquisiPonsofCompanies,SubsidiariesandDivisions,§13.06n.3.2(2003)

BestEffortsvsTheRest

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Becauserecentcaselawsuggeststhatbesteffortsincorporatestheconceptofreasonableness,

unlessacontractdefiniPonprovidesotherwise,“reasonablebestefforts,”“reasonableefforts”and“commerciallyreasonableefforts”arelikelytobeinterpretedtomeanthesameas“best

efforts.”

Interpre.ngtheVariants

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“Thestandardimposedbya‘reasonableefforts’clausesuchasthatcontainedinsecPon7.01oftheAgreementisindisputablylessstringent

thanthatimposedbythe‘bestefforts’clausescontainedelsewhereintheAgreement.”

InreChateaugayCorp.,198B.R.848,854(S.D.N.Y.1996),aff’d108F.3d1369(2dCir.1997)

Inconsistency

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»  Fact-specificinquirywithunpredictableresults–otherthanexpensiveliPgaPon

»  CourtswilllooktopromisesorprojecPonsmadeinnegoPaPon,industrystandards,priorconduct,etc.

TheAXermath–Li.ga.ngDisputes

SeeSamicaEnters.,LLCv.MailBoxesEtc.,637F.Supp.2d712,717(C.D.Cal.2008):“whetheradefendantusedbesteffortsunderthecircumstancesisa

factualquesPonusuallyreservedforthejury.”

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ü  AtleastoneNYcourtrefusedtoenforceanundefined“bestefforts”standard. SeeTimberlineDev.LLCv.Kronman,702N.Y.S.2d237,239(N.Y.App.Div.2000)

ü  Consideryouraudience:–  AformerD.A.,nowjudge,mayhavenoideawhat“commerciallyreasonablebestefforts”are.

ü  Describetheapplicablestandardofconduct:–  “levelofeffortcustomarilyemployedbyareasonableventurecapitalist”–  “levelofeffortusedtosellyourownproducts”–  setminimumthresholds

ü  ProvideillustraPveexamples.

DraXingConsidera.ons

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WHATDOES“MATERIAL”REALLYMEAN?

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“obtain all material consents” “Assigned Assets include

all material assets used in the business”

“terminated only in the event of material

breach”

“Vendor may use subcontractors only to perform non-material

obligations.” “in the event of a material delay”

Howis“material”reallyused?

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“Isofsuchanaturethatknowledgeoftheitemwouldaffectaperson’sdecision-makingprocess”(Delaware;BlacksLawDicPonary)

“GoestotherootoftheagreementbetweentheparPes” (NewYork)

“Affectsaparty’sdecisionastowhetherornottoenterintothecontract”(California)

CommonDefini.ons

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»  ManyjurisdicPonsusethe“deal-breaker”definiPon:

– QuesPon:Wouldtheinnocentpartyhaveagreedtoenterthecontractwithouttheinclusionofthedisputedclause?

MostCommonDefini.on

“Material”=sosubstan.alastodefeatthepurposeoftheen.retransac.on.

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–  (a)theextenttowhichtheinjuredpartywillbedeprivedofthebenefitwhichhereasonablyexpected;

–  (b)theextenttowhichtheinjuredpartycanbeadequatelycompensatedforthepartofthatbenefitofwhichhewillbedeprived;

–  (c)theextenttowhichthepartyfailingtoperformortooffertoperformwillsufferforfeiture;

–  (d)thelikelihoodthatthepartyfailingtoperformortooffertoperformwillcurehisfailure,takingaccountofallthecircumstancesincludinganyreasonableassurances;

–  (e)theextenttowhichthebehaviorofthepartyfailingtoperformortooffertoperformcomportswithstandardsofgoodfaithandfairdealing.

NewYorkCourts–RestatementofContracts§241Factors

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ü Usematerialityconsistentlythroughoutthecontract.

ü Evaluatethepurposeofusingmateriality.ü Usedollarthresholdsinsteadofmateriality.ü SpecificallyidenPfywhichprovisionsorobligaPonsarematerial.

ü Usetermsotherthanmaterialitywhereothertermsmightprovideamoreclearmeaning.

Prac.ceTips

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RISKALLOCATION

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Reps/WarranPes

Indemnity

LimitaPonofLiability

SPpulatedDamages

ElementsofRiskAlloca.on

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LIMITATIONOFLIABILITY

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»  LimitaPonofliabilityprovisionslimitaparty’sexposureintheeventofadispute.

»  ParPesmaylimit:

»  Totalamountofdamages

»  Typesofdamages(e.g.,consequenPalorpuniPvedamages)

»  Nonmonetaryrelief

Preven.ngExcessiveExposure

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LimitaPonofLiability.

Eachparty’sliability,whetherincontract,tort,otherwise,arisingoutoforinconnecPonwiththisAgreement…shallnotexceedtheamountoftheLicenseFee.

INNOEVENTSHALLEITHERPARTYBELIABLEFORANYSPECIAL,INCIDENTAL,PUNITIVE,CONSEQUENTIAL(INCLUDINGLOSTPROFITS)ORTORTDAMAGESARISINGOUTOFORINCONNECTIONWITHTHISAGREEMENT...

Example

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»  CourtsgenerallyenforceliabilitylimitaPonsinclaimsforbreachofcontractandnegligence.

–  MaynotbeenforcedforintenPonaltorts–  LimitaPonsfor“grossnegligence”subjecttochallengeCompareCityofSantaBarbarav.SuperiorCourt,41Cal.4th747,758(2007)andABRYPartnersV,L.P.v.F&WAcquisiPonLLC,891A.2d1032(Del.Ch.2006).

–  NYcourtsdefinegrossnegligencemorelikeintenPonalmisconduct.

»  ThelanguageofthelimitaPonis“strictlyconstrued.”

»  LiPgaPonoYenresultsoverthelanguageused.

Enforceability

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» ThereareessenPallyfourtypesofdamages:– Direct– ConsequenPal/Special– Incidental– PuniPve

» Allfourtypescanbelimited.

PrimaryTypesofDamages

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»  Directdamages“followfromthetypeofwrongcomplainedof.”

–  Black’sLawDicPonary446(9thed.2009).

»  Courtsgenerallyupholdcapsondirectdamagestotheamountpaidunderthecontract.

–  Markboroughv.SuperiorCourt,227Cal.App.3d705(1991)(limiPngrecoverytotheamountoftheconsulPngfeepaidtothedefendant).

»  Capsoflessthantheamountpaidunderthecontractmayalsobeupheld.

–  See,e.g.,Sch.Dist.oftheCityofNiagaraFallsv.CrossPointe,LLC,2011U.S.Dist.LEXIS143739(W.D.N.Y.2011)(limitaPonondamagestoannualservicefeepresumedvalid);Rob-Win,Inc.v.LydiaSec.Monitoring,Inc.,2007Del.Super.LEXIS421,*20-21(Del.Super.Ct.2007)(upholdingcapof$250forsecurityalarmmonitoring).

Limi.ngDirectDamages

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»  LimitaPonondirectdamagesupheldforintenPonalbreachofcontract.–  Example:inaservicesagreement,thelimitaPonofliabilityis$100,000.The

costtoperformincreasesbymorethan$100,000.Thevendorstopsperforming.

–  Result:Customer’sdirectdamageslimitedto$100,000.

–  CauPon:Thecontractmayalsoincludeaspecificperformanceclause,whichcouldalsobeinvoked.

Inten.onalBreach

An“economicallymoPvateddecisioncannot,asamaweroflaw,risetothelevelofmaliceorintenPonalwrongdoingnecessarytoinvalidate”alimitaPonofliabilityprovision.SeeNet2GlobeInt’l,Inc.v.TimeWarnerTelecom,273F.Supp.2d436,451(S.D.N.Y.2003).

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»  ConsequenPaldamagesare“[l]ossesthatdonotflowdirectlyandimmediatelyfromaninjuriousactbutthatresultindirectlyfromtheact.”

–  Black’sLawDicPonary446(9thed.2009).

»  CourtsgenerallyupholdlimitaPonsonconsequenPaldamages.

»  ConsiderwhethertodefinedirectorconsequenPaldamages.

Consequen.alDamages

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»  ThelinebetweenwhatisadirectdamageandwhatisaconsequenPaldamageisblurry,atbest.

»  Onewaytoavoidambiguityistoclearlydefinedirectdamages:

–  Fortheavoidanceofdoubt,thefollowingshallbeconsidereddirectdamagesandVendorshallnotassertthattheyareindirect,incidental,consequenPalorspecialdamagestotheextenttheyresultfromVendor’sfailuretoperforminaccordancewiththisAgreement:(a)commerciallyreasonablecostsandexpensesofrestoringorreloadinganyClientDatathatislost,stolenordamagedduetoVendor’sfailuretosafeguardtheClientDataand(b)reasonableexpensesincurredbyClient,includingoverheadallocaPonsforemployees,wagesandsalariesofemployees,travelexpenses,overPmeexpensesandsimilarcharges,duetoafailureofVendortoprovidealloraporPonoftheServices.

AvoidingAmbiguity

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Are“lostprofits”consequenPalordirectdamages?

KeyQues.on

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»  LostprofitsmaybecategorizedaseitherconsequenPaldamagesordirectdamages,orboth.

»  AcontractthatdoesnotcapdirectdamagesbutexcludesconsequenPaldamagesinvitesliPgaPonovertheavailabilityoflostprofitdamages.

–  SeeCoremetrics,Inc.v.AtomicPark.com,LLC,2005U.S.Dist.LEXIS40484,*8(N.D.Cal.2005)(lostprofitsrecoverabledespiteexclusionofconsequenPaldamages).

LostProfits

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LimitaPonofLiability.Vendor’sliabilityforalldamages,whetherincontract,tortorotherwisearisingoutoforinconnecPonwiththisAgreement,includingfromanyandallclaimsrelatedtothebreachofthisAgreementornonperformancebyVendor...shallnotexceedtheamountoftheLicenseFee.WithoutlimiPngtheforegoing,innoeventwillVendorbeliableforanylostorprospecPveprofits,indirect,incidental,consequenPal,special,exemplaryorpuniPvedamages,arisingoutoforinconnecPonwiththisAgreement...

RevisedContractLanguage

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ü Considerwhethertoincludeadirectdamagecap.ü Chooseareasonableamountforthecap.ü DefinelostprofitsaseitherdirectorconsequenPaldamages.

ü EnsurethatthelimitaPonofliabilitycoversallavailableformsofpotenPalliability.

ü Considerwhetherthereareanyclaims(suchasindemnifiablethirdpartyclaimsorbreachesofconfidenPality)thatshouldbeoutsidethelimitaPonofliability.

DraXingConsidera.ons

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INDEMNIFICATION

38

Apromisebytheindemnitortosafeguardorholdtheindemniteeharmlessagainstexis.ngor

futurelossorliability,orboth.

Defini.on

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Isonepartylikelytocreateriskorliabilityfortheotherparty?

Whatwouldbetheresultintheabsenceofanindemnity?

Ifnot,theriskshouldbeshiYedtotheliability-creaPngparty.

Isthatthe“fair”result?

DecisionPath

40

»  Thirdpartyclaimsonlyoralllosses?» Whatlossesarecovered?»  Indemnifyv.defend»  IndemnificaPonprocedures»  EffectofindemnificaPononotherprovisions»  Isindemnityanexclusiveremedy?»  LiabilitycapsandotherlimitaPons

CommonNego.a.onPoints

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»  Indemnify––  toreimbursesomeoneforalosssufferedandpaidbythatperson–  acer-the-fact

»  Defend––  totakeacPonstoprotectsomeoneagainstaloss–  ongoingobligaPon

»  HoldHarmless––  Acourtmayconstruea“holdharmless”obligaPontobemore

broadlydefinedthanintended.

Indemnifyv.Defend

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»  NoPceandremediesforunPmelynoPce»  Conflictsofinterest»  CooperaPonandassistance

–  Internalcosts/out-of-pocketcosts»  ReporPngto(andparPcipaPonof)theotherparty

–  ApprovalrightsornoPceonly?»  Approvalofsewlements

–  IndemnifiedPartyshouldhaverighttoapproveanysewlementthatinvolvesanythingotherthanapaymentofmoneybytheIndemnifyingParty.

Indemnifica.onProcedures

43

ControlofDefense

44

»  Firstpartyclaimsv.thirdpartyclaimsonly–  Doestheindemnitycoverlossesincurredbythecounterparty?

–  ConsiderlimiPngindemnificaPonobligaPonstothirdpartyclaimsonly.

–  CounterpartymaysPllbeabletosueforbreachofcontract–ifthereisarepresentaPonorcovenantbreached.»  PracPceTip:IncludebotharepresentaPonANDanindemnityobligaPon.

»  CauPon:BreachofrepresentaPonmaynotbeavailableifitisqualifiedbyknowledgeorifindemnityistheexclusiveremedy.

WhatisaClaim?

45

»  Whatlossesarecovered?–  CostsofinternalinvesPgaPons?–  Taxesorsimilarcharges,interestorpenalPes?–  Costsofaworneys’feesandexpertwitnesses?–  Lossesincurredbycustomersorendusers?–  ArbitraPonfees?Courtcosts?

»  PracPceTip:IndemnifyingPartymaywanttotrytolimitlossestofinallyadjudicatedorsewledamountspayabletothirdparPesonly:

–  indemnifytheIndemnifiedPartyagainstanyLossesfinallyawardedagainstsuchpartytoathirdpartymakingsuchClaim,byacourtofcompetentjurisdicPonoragreedtoinsewlementandactuallypaidtosuchthirdparty.

ScopeofLosses

46

»  TimeLimitaPons–  ConsiderincludingPmelimitaPonsfortheindemniteetobringaclaim.

»  Cap–  Considerincludinganoveralllimitofliability.–  Considerexcludingcertaintypesofdamages.

»  Considermakingindemnitythesoleandexclusiveremedy.

Limita.ons

47

ü TimelimitaPons(e.g.,duraPonofrepandwarrantysurvival)

ü DollarlimitaPons(caps,basketsandoffsets)ü Effectsonotherremediesü Shouldtheliabilitycapcoverindemnifiableclaims?ü Howlongshouldtheindemnityclaimssurvive?ü ControlandabilityofindemnifyingpartytoparPcipateindefenseofclaims

ü Choiceoflaw/forum

DraXingConsidera.ons

48

EdBaumPartner-Li.ga.onCrowell&MoringLLP

PaulPollockPartner-CorporateCrowell&MoringLLP

AlanHowardPartner-Li.ga.onCrowell&MoringLLP

IlanaLubinCounsel-CorporateCrowell&MoringLLP

49

ebaum@crowell.com+1212.803.4033

ppollock@crowell.com+1212.895.4216

ahoward@crowell.com+1212.803.4021

ilubin@crowell.com+1212.895.4224

50

EdBaumPartner-LiPgaPonCrowell&MoringLLP+1212.803.4033ebaum@crowell.com

EdBaumisapartnerinCrowell&Moring'sNewYorkofficeandamemberofthefirm'sLiPgaPonGroup(includingleadingtheliPgaPonpracPcesintheNewYorkoffice).Ed'spracPceisconcentratedonrepresenPngpublicandprivately-heldenPPesandtheirprincipalsinmulP-facetedbusiness-relatedliPgaPons.Edrepresentspreeminentmembersofthefinancialservices,entertainment,informaPontechnology,pharmaceuPcal,automoPve,legal,andinsuranceindustries.Heoffersclientsthecombinedbenefitsofextensiveexperienceintheartsoftrialandappellateadvocacy,aswellasin-depthpracPcalknowledgeofmulPplesubstanPvedisciplinesthatareoYeninvolvedintoday'scomplexbusinessdisputes.HiscasesfrequentlyinvolvetheinterplaybetweenthecompePngandatPmesinconsistentlawsgoverningfinancialservices,securiPes,anPtrust,bankruptcy,productandconsumerliability,andthediscriminaPon,compensaPon-related,andunfaircompePPon/tradesecretslawsthatshaperelaPonsbetweenbusinessenPPesandtheirseniorpersonnel.EdregularlyservesasnaPonalorcoordinaPngcounselforclientsfacingclassacPons,governmentalinvesPgaPonsandliPgaPons,orotherpotenPallysignificantmawersrequiringexperienceinmulPpledisciplines.HealsofrequentlycounselsclientsintransacPonalmawersandbusinessplanning,onassessingpotenPalliabiliPes,andindevelopingacPonplanstopreventorminimizeliPgaPonrisks.OtherlawyersandlawfirmsfrequentlyretainEdtocounselandrepresenttheminissuesinvolvingprofessionalresponsibilityandethics,aswellastorepresentthelawfirms—orthechiefexecuPvesandotherseniorofficersofthoseotherlawfirms'clients—inemploymentanddisciplinarymawers.InaddiPon,drawingonhisextensiveformaltrainingandexperienceindisputeresoluPon,EdoYenserves,bothasadvocateandasaneutral,inmediaPons,arbitraPons,andotheralternaPvedisputeresoluPonproceedings.Educa.on•  CornellUniversity,B.S.industrial&laborrelaPons,withhonors•  ColumbiaLawSchool,J.D.;HarlanFiskeStoneScholar

51

PaulPollockisapartnerintheNewYorkofficeofCrowell&MoringandconcentrateshispracPceonmergersandacquisiPonsandcorporatefinance.Heservesasamemberonthefirm'sCorporateGroupSteeringCommiwee.PaulalsoprovidesongoingrepresentaPontomiddlemarketprivateequitysponsorsandtheirpor�oliocompanies,aswellaspublicandprivatecompaniesthatarenotprivateequitybacked.Paul'sindustryexperienceincludesrepresenPngclientsinfinancialservices,manufacturing,telecommunicaPons,soYwareproducts,publishingandentertainment.

Paulrepresentsprivateequitysponsorsandgrowth-orientedcompaniesinexecuPngtheiracquisiPonobjecPves.Heworksonboththebuyandsell-sideofmiddle-marketbusinessesseekingtorealizevaluethroughthesaleoftheirbusinesses,andwithnon-U.S.basedcompanieswhoareseekingtoentertheU.S.marketplace,accesstheU.S.securiPesmarketsortoengageintransacPonswithU.S.companies.

InaddiPon,PaulhasextensivedistresseddebtexperienceincludingworkrepresenPnglenders,buyersandsellersinacquisiPonsbothinandoutsideofbankruptcy,aswellasworkoutsandrefinancingsoftroubledcompanies.ThesetransacPonsincludeassetsales,363sales,andleveragedandnon-leveragedrecapitalizaPons.

PaulworkswithcompaniesthroughtheirenPrelifecycleincludingadvisingontheformaPonandchoiceofbusinessenPty;preparingandnegoPaPngshareholderandlimitedliabilitycompanyagreements,employmentagreementsandothercriPcalcorporatecontracts;advisingonmulPpleroundsofprivateequityfinancinganddebtfinancing;andrepresenPngcompaniesintheiniPalpublicofferingsandinconnecPonwithongoingsecuriPescompliancefilingswork.

InaddiPontorepresenPngissuersinacquisiPonsanddivesPtures,privateandpublicofferingsanddebtfinancings,hehasalsorepresentedunderwritersinpublicofferingsandplacementagentsinprivateplacementsaswellasforeignissuersinconnecPonwithofferingsunderSECRegulaPons.

Educa.on•  ColgateUniversity,B.A.,cumlaude•  FordhamUniversitySchoolofLaw,J.D.

PaulPollockPartner-CorporateCrowell&MoringLLP+1212.895.4216ppollock@crowell.com

52

AlanHowardPartner-LiPgaPonCrowell&MoringLLP+1212.803.4021ahoward@crowell.com

AlanHowardisapartnerinCrowell&Moring'sNewYorkoffice.AlanisanaccomplishedtrialaworneywhohasovertwodecadesofexperiencehandlingliPgaPonandarbitraPonmawersdomesPcallyandinternaPonally.HehastriedcasestojuriesandjudgesinfederalandstatecourtsthroughouttheU.S.andtoarbitratorsinproceedingsundertherulesoftheAmericanArbitraPonAssociaPon,JAMS,andtheInternaPonalChamberofCommerce.

Alanfocusesoncommercialcontractdisputes,oYeninvolvingmanufacturing,producPonand/ordistribuPonofgoods,technologyorsoYware,orjointventures.AlanalsorepresentsparPesengagedinmulPpleproceedingsinmulPplejurisdicPonsandhasparPcularexperiencerepresenPngforeigncompanies,andseniorofficersofforeignanddomesPccompaniesengagedinhighstakesdisputes.HehasextensiveexperiencerepresenPngfinancialinsPtuPons,andinparPcular,intheareaofAnP-MoneyLaunderingregulaPonsandcompliance.Alanalsohastriedanumberofintellectualpropertymawers,includingpatentcases,casesinvolvingtheYoftradesecretsanddisputesinvolvingsoYwareproviders.

Alanalsodoesextensiveprobonowork.HewasleadcounselforthenamedplainPffsinDavidv.SignalInternaPonal,LLC,anacPonbroughtonbehalfofhundredsofskilledworkersfromIndiawhowereluredbyfalsepromisesofgreencardsandforcedtoliveinlaborcampsandworkinmarinefabricaPonfaciliPesinMississippiandTexasin2006-2007.TheacPoninvolvedclaimsofforcedlabor,traffickinginforcedlabor,civilRICO,discriminaPon,andfraud.Alanledateamthathandledthefirsttrial,onbehalfoffiveworkers,thattookplaceinJanuaryandFebruary2015beforeafederaljuryinNewOrleans,Louisiana.ThattrialresultedinaverdictforplainPffsonallclaimsagainstalldefendantsandanawardofcompensatoryandpuniPvedamagestotalingover$14million.Thiswasoneofthelargestcasesofitskindeverbroughtandoneofthelargestverdictseverobtainedinthistypeofcase.

AlanisthechairoftheBoardofDirectorsoftheSouthernPovertyLawCenter.

Educa.on•  YaleUniversity,B.A.,magnacumlaude•  HarvardLawSchool,J.D.,cumlaude

53

IlanaLubinisacounselinCrowell&Moring'sNewYorkofficeandamemberofthefirm'sCorporateGroup.Ilanafrequentlyrepresentsclientsintheapparel,fashion,retail,luxury,andbeautysectorsregardingcross-borderanddomesPcmergersandacquisiPons,jointventures,andprivateequityinvestments.ShealsorouPnelydraYsandnegoPatesintellectualpropertylicensingandothergeneralcorporateandcommercialtransacPons,andshehasexperienceworkingin-houseacrossbusinessunits,includinginconnecPonwithglobalmergerandacquisiPonandlicensingacPvity.Ilana'sbackgroundincludestherepresentaPonofavarietyofcompaniesfromincepPon,includingadvisementwithrespecttomawersrelaPngtoformaPonandstructuring,equityanddebtfinancing,employment,andcommercialleasing.Educa.on•  CornellUniversity,B.S.,policyanalysisandmanagement•  BenjaminN.CardozoSchoolofLaw,J.D.

IlanaLubinCounsel-CorporateCrowell&MoringLLP+1212.895.4224ilubin@crowell.com