ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

ACC’s 2013 Annual Meeting October 27-30, Los Angeles, CA

Tuesday, October 29
4:30 PM - 6:00 PM

802: Time Is of the Essence: Essential Terms

and Common Errors
Jennifer Adamy
Vice President, Secretary & General Counsel
Clear Edge Power

Stephen P. Gennett
Partner
Meritas - Law Firms Worldwide

Karen Kovach
Secretary and General Counsel
PNG Telecommunications, Inc. d/b/a PowerNet Global Communications

Zachary Zaharek
VP, Senior Corporate Counsel
First American Financial Corporation

This material is protected by copyright. Copyright © 2013 various authors and the Association of Corporate Counsel (ACC).
Materials may not be reproduced without the consent of ACC or the copyright holder.
Reprint permission requests should be directed to ACC’s Legal Resources Department at [email protected]
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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

Faculty Biographies
Session 802

Jennifer Adamy
Jennifer L. Adamy is the vice president, secretary and general counsel of ClearEdge
Power, a leading manufacturer and global supplier of scalable fuel cell systems that
provide clean, critical and reliable distributed power for use in stationary applications. In
this role she provides legal counsel and guidance to executive leadership and manages all
aspects of the company's legal, compliance and IP functions. Ms. Adamy was appointed
ClearEdge Power's first general counsel after it acquired UTC Power from United
Technologies Corporation (NYSE:UTX) in February 2013. Prior to the acquisition, she
served as divisional general counsel for UTC Power where she led a 9-member legal/IP
team and was responsible for all legal issues related to the company's operations.

Ms. Adamy joined UTC Power after spending five years as senior attorney for UTC's
Carrier Corporation, where she held positions of increasing responsibility in supporting
global supply chain operations, North American commercial business activities, M&A,
and U.S. Customs compliance and supply chain security. Prior to moving in-house in
2006, Ms. Adamy spent 12 years in private practice with firms in Connecticut and New
York, where she practiced in the areas of commercial, contracts and franchise litigation,
bankruptcy and creditors' rights, and insurance coverage litigation.

Ms. Adamy received her BA in English from the State University of New York at
Binghamton and her JD from Hofstra University School of Law where she served as the
managing editor of articles for the Hofstra Property Law Journal.

Stephen P. Gennett
Steve Gennett is a partner with the Corporate & Nonprofit practice group at Johnston,
Allison & Hord. His practice focuses on the representation of for-profit and nonprofit
organizations. He advises clients regarding choice of entity, business structures, nonprofit
structures, joint ventures, mergers and acquisitions, sales, transactions, compliance and
governance matters. Mr. Gennett is an active member of Meritas, a global alliance of
lawyers and law firms including Johnston, Allison & Hord.

Karen Kovach
Karen Kovach is secretary and general counsel of PNG Telecommunications, Inc., a
telecommunications and technology company that is a global provider of
communications solutions located in Fairfield, Ohio, just outside of Cincinnati. As
general counsel, Ms. Kovach is a member of the executive management team and
manages all legal affairs for PNG. In addition, she provides legal services to PNG's
affiliate Abydos Innovations, LLC an electronics manufacturer requiring Ms. Kovach's
attention to legal matters in China as well as domestically.

Previously, Ms. Kovach served as associate general counsel to PNG where she handled a
wide variety of legal issues including the negotiation and drafting of complex commercial

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

contracts and IP licenses. As well, she managed the legal staff responsible for handling
the legal affairs of the various business units. Prior to her position as associate general
counsel, she held the position of Magistrate in the Hamilton County Court of Common
Pleas in Cincinnati, Ohio.

She is currently a member of the Cincinnati Bar Association Ms. Kovach received her
B.S. from the University of Cincinnati and is also a graduate of the University of
Cincinnati School of Law.

Zachary Zaharek
Zachary Zaharek is employed by First American Financial Corp. He is division vice
president, senior corporate counsel of First  American’s  Specialized  Groups  which  include  
real estate databases, home warranty, natural hazard disclosures and accounting software
units. He also created and is Division vice president and senior corporate counsel to First
American India Legal Department which currently employs seven attorneys in India. Mr.
Zaharek also co-founded  and  was  the  first  chairperson  of  First  American’s  Diversity  
Advisory Council which promotes work place diversity.

Mr.  Zaharek  teaches  at  the  UC  Irvine’s  Paralegal  extension program. He teaches
Intellectual Property and Business Law. In 2006, he was awarded Distinguished
Instructor of the Year. He speaks regularly before the Orange County Paralegal
Association.  Since  2005,  Mr.  Zaharek  has  sat  on  the  UC  Irvine’s  Curriculum  Advisory
Council.

Since 2004, Mr. Zaharek has also been an adjunct professor at Western State University,
School of Law. He teaches Contracts Drafting.

Mr. Zaharek is past president of the Southern CA Chapter of the Association of

Corporate Counsel (ACC). Before this Mr. Zaharek served on the Los Angeles County
Bar Corporate Counsel Section, Executive Committee. He is also a member of the Public
Records Industry Association, the American Land Title Association, and the California
Land Title Association.

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

REVIEW"A"CONTRACT""
IN"

Se/ng"Expecta7on"to"
Business"Representa7ve"
! Turnaround"Time:"
• Contract"should"have"3""
"days"turnaround"7me"
! Checklist/Term"Sheet:"
• Need"background."Edi7ng"in"vacuum"is"
problema7c"
• Key"Terms/Provision"
• Key"Goals"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

COMMERCIAL"REAL"ESTATE"LEASE"
CHECKLIST"
" "Stephen"P."GenneQ"
" " "Partner"
Johnston"Allison"&"Hord"AQorneys"

KEY$PROVISIONS$ $ $ $ $ $Commercial"Real"Estate"Lease"

! Par.es$
! Dates/Terms$
! Premises$

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

KEY$PROVISIONS$ $ $ $ $ $Commercial"Real"Estate"Lease"

! Security$Deposit$$
! Base$Rent$$$
! Addi.onal$Rent$$$
"

KEY$PROVISIONS$ $ $ $ $ $Commercial"Real"Estate"Lease"

! Landlord’s$Services$
! Assignment$and$Subleasing$$
$$
"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

KEY$PROVISIONS$ $ $ $ $ $Commercial"Real"Estate"Lease"

! Altera.ons$
! Repairs$and$Maintenance$
! Signage$

KEY$PROVISIONS$ $ $ $ $ $Commercial"Real"Estate"Lease"

! Compliance$with$Laws$
! Indemnifica.on$
! Subordina.on$
$
$
$

4"
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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

KEY$PROVISIONS$ $ $ $ $ $Commercial"Real"Estate"Lease"

! Termina.on$Rights$$
! Casualty$
! Condemna.on$
! Insurance$

KEY$PROVISIONS$ $ $ $ $ $Commercial"Real"Estate"Lease"

$
! Holdover$and$Surrender$
! Events$of$Default$
! Remedies$

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

KEY$PROVISIONS$ $ $ $ $ $Commercial"Real"Estate"Lease"

! Arbitra.on$
! Estoppel$Cer.ficate$
! No.ces"
$

KEY$PROVISIONS$ $ $ $ $ $Commercial"Real"Estate"Lease"

! Time$is$of$the$Essence$
! Memorandum$of$Lease$
! Brokerage$
! Governing$Law$

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

KEY$PROVISIONS$ $ $ $ $ $Commercial"Real"Estate"Lease"

! Purchase$Op.on$
! Addi.onal$Space$Op.on$
! List$of$Exhibits$and$APachments$
$
END$

$
$

Time"is"of"the"Essence:"Essen7al"
Terms"and"Common"Errors"
Technology"Agreements""
"
"
"Karen"S."Kovach"
" "General"Counsel"
"""PowerNet"Global"Communica7ons"

7"
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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

Technology$Agreements"
Indemnifica*on,,

! Infringement"Issue"
! Liability""
! Exclusion""
! Nego7a7on"

Technology$Agreements"

Liability/Damages""

! Damages"language"works"in"tandem"
with"the"Indemnifica7on"language"
! Consequen7al"Damages""
! Caps"on"liability"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

Technology$Agreements"
Warran*es/SLAs,,

! Warran7es"
• Standards"of"Performance"
! Service"Level"Agreements"

Technology$Agreements"
Maintenance"""

!Maintenance,,
• Fees"
• Enhancements,"updates,"new"releases"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

Technology$Agreements"
Termina*on""

! Termina*on,,
• Transi7on"7me"needed"
• Breach"
"

"

Technology$Agreements"
Confiden*ality,,

!Protec7on"of"confiden7al"informa7on"
!Privacy"concerns"
"

10"
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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

Technology$Agreements"
Ownership,of,IP,Rights,

! Ownership"of"the"work"b"improvements"
and"developments"
! Works"Made"for"Hire"
! Royalty"free"improvements"

Technology$Agreements"
Escrow,of,Source,Code,

! Vital"to"have"
! Fees"for"escrow"can"be"paid"by"either"
party"
! Triggers"for"release"of"source"code"
"

11"
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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

Insurance, Technology$Agreements"

! Types"and"Acceptable"limits"
! Professional"Liability/generally"E"&"O"
! Electronic"Data"Processors"E"&"O"

Technology$Agreements"
Payment,Terms,

! Payment"up"front"vs."annually"
! Payment"terms"for"maintenance"
! Term"of"agreement"and/or"maintenance""
and/or"license"the"same"or"different"
END"
"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

NONDISCLOSURE"AGREEMENT"

Jennifer"Adamy"
Vice"President,"Secretary"&"General"Counsel"
ClearEdge"Power"""
"" ""

NONDISCLOSURE"AGREEMENT"

! Familiarity"with"T&C’s"of"an""""""""""""""""""""""""""""""
Non"Disclosure"Agreement"(“NDA”)"
! What"is"proprietary"informa7on"(“PI”)?"

"

13"
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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

NONDISCLOSURE"AGREEMENT"

! How"to"secure"PI"exchanged"under"a"NDA?"
! Delega7on"of"Responsibility"
! Tracking"the"term"of"NDA"
! Types"of"NDA"
"

NONDISCLOSURE"AGREEMENT"

! Par7es"to"NDA"
! Important"dates"in"NDA"
! Purpose"of"NDA"
! Defini7ons"provided"under"NDA"
"
"
"

14"
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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

NONDISCLOSURE"AGREEMENT"

! Designa7on/marking"of"confiden7al"or"
proprietary"informa7on""
! Restric7on"on"use"and"disclosure"of"PI"
! Protec7ng"PI"b"obliga7ons"of"receiving"party"
"
"
"

"
"
"
"

NONDISCLOSURE"AGREEMENT"

! Excep7ons"to"protec7on"
! NDA’s"general"clauses"
! Miscellaneous"
"
END"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

Separa7on/Severance"Agreement"
Zachary"Zaharek"
Vice"President,"Division"Counsel"
First"American"

Severance"Agreement"

! Statement"of"Agreement"
! Purchase,"License"or"Performance"
! Considera7on;"Mechanics"of"Exchange"
• Defini7ons"
• Compensa7on"
• Severance"Termina7on"benefit"

"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

Severance"Agreement"

! Representa7ons"&"Warran7es"
! Covenants"
• Release"&"Waiver"and"Covenant""""""""""""
Not"to"Sue"

Severance"Agreement"

! Confiden7ality"
! Term"
! Indemnifica7on"
! Remedies"
! General"Provisions"
• Governing"Law"
• Severability"
• Assignment"
END"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

NONQCOMPETE$AGREEMENT"
" "Stephen"P."GenneQ"
" " "Partner"
Johnston"Allison"&"Hord"AQorneys"

NONbCOMPETE"AGREEMENT"

! Primary"Considera7ons"
• Context"b"Employment,"Merger"&"
Acquisi7on"
• Nature"of"transac7on"
• Facts"and"circumstances"of"par7es"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

NONbCOMPETE"AGREEMENT"

! Iden7fica7on"of"…"
• Legi7mate"business"interest"
• What"is"to"be"protected"&"Why"
• Acknowledgment"of"protec7ng"business"
interest"
"

NONbCOMPETE"AGREEMENT"

! Employee"nonbcompete"agreement"
• Payment"of"addi7onal"considera7on""
• Acknowledgment"for"adequacy"of"
considera7on"

"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

NONbCOMPETE"AGREEMENT"

! Specifying"prohibited"ac7vity"
• Par7cular"ac7vi7es"for"ex."same"line"of"
work,"geographic"area,"contact"with"
compe7tors"
• Geographic"scope,"business"parameters"
• Dura7on""
• Excep7ons"
"
"

NONbCOMPETE"AGREEMENT"

! Language"
• Define"terms"
• Should"be"clear"&"express"""
• Avoid"ambiguity"&"broad"language"
"
"

20"
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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

NONbCOMPETE"AGREEMENT"

! Include"
• Nonbsolicita7on"provision"
• Tolling"provision"
• Interpreta7on"or"amendment""
"of"provision"if"restric7ons""
"are"found"unreasonable""
"by"court"
"
"

NONbCOMPETE"AGREEMENT"

! Include"(cont.)"
• Remedies"&"equitable"relief"
• Acknowledgment"that"monetary""
"damages"are"inadequate"remedy"
• Viola7on" of" any" agreement" by" protected"
party"shall"not"serve"as"defense"to"restricted"
party"
• Survival"clause"
END"
"
"
21"
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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

Time"is"of"the"Essence:"""Essen7al"
Terms"and"Common"Errors"
Licensing"Agreements""
"
"
"Karen"S."Kovach"
" "General"Counsel"
"""PowerNet"Global"Communica7ons"

Licensing"Agreements""

! Most" of" what" was" covered" in" the" Technology"

Agreements"will"be"applicable"here"""
! Informa7on"about"the"License"and"the"use"of"
it"
• What"sonware"is"being"licensed"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

Licensing"Agreements""

! Informa7on"about"the"License"and"the"use"of"
it"(cont.)"
• Will"the"sonware"need"to"be"modified"

Licensing"Agreements""

! Term"of"the"license"and"the"license"
agreement"
! Payment"terms"
! Maintenance"needed?""
"
END""

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

PURCHASING/SUPPLY"AGREEMENT"

Jennifer"Adamy"
Vice"President,"Secretary"&"General"Counsel"
ClearEdge"Power"""
"" ""

Purchase/Supply"Agreement"

! "Type"of"Agreement"
! "Descrip7on"of"Goods/Services"
! "Details"of"Supplier"
! "Budget/Contract"Value""
"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

Purchase/Supply"Agreement"

! Whose"Paper?"
! Key"Terms"&"Condi7ons"
! Devia7on"from"Standard"Terms"&"Condi7ons"
! Contract"Dura7on"

Purchase/Supply"Agreement"

! "Warranty"Terms"
! "Volume"Commitment"
! ""Miscellaneous"
! ""AQachments"
"
"
"
END"
"
"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

CONSULTING"AGREEMENT"
Zachary"Zaharek"
Vice"President,"Division"Counsel"
First"American"

Consul7ng"Agreement"

! Services"and"Scope"of"Work"
! Personnel"
! Background"Check"

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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

Consul7ng"Agreement"

! Project"Management"
! Acceptance"of"Service/s"
! Fees"
! Indemnifica7on"

Consul7ng"Agreement"

! Insurance"
! Confiden7ality"
! Intellectual"Property"
"

27"
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ACC's Annual Meeting 2013 October 27-30, Los Angeles, CA

Consul7ng"Agreement"

! Representa7on"&"Warranty"
! General"Clauses"
! Disclosure/s"
"
THANK"YOU"
"

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