PromegaCorporatePresentation-LawInAction.pptVIP

* ?2008, Promega Corporation. All rights reserved. ?2007, Promega Corporation. All rights reserved. Global Financial Crisis -- Practical Implications for addressing legal issues Sara Jensen Deputy General Counsel, Promega Corporation March 2009, Madison, Wisconsin Promega Private biotechnology company Biological reagents used for life science research and human identity testing Over 2,000 tangible products Key assets include intangible intellectual property Promega Worldwide Headquarters Madison, Wisconsin Background 920 employees worldwide ISO 13485 certified Manufacturing in U.S., Korea and Shanghai 14 international subsidiaries Sales by Region of the World Implications of reduced cash flow What does it mean for an in house Legal Department? Cash is tight…So what? Vendors/Suppliers and customers might fail Your business might fail Mergers and Acquisitions will decrease Export compliance issues may increase in importance Cost cutting pressures Your Code of Conduct matters Vendors and customers may fail… Litigation is costly Look for practical solutions Require or hold safety stock for key supplies Require key suppliers to transfer manufacturing rights in event of failure. Consider escrow of manufacturing know how Obtain letters of credit or advancement payment from customers Secure your interests Put arbitration language in international contracts You may fail Plan for exit strategies Link price increases to a reasonable index Force Majeure clauses matter Limit your damages Look for indemnities Insure Weigh risk Is it better to ask for forgiveness or permission? MA will decrease Look for alternatives to acquisitions Joint Ventures Collaborations Licenses Milestone Payments Escrow for unknown liabilities Consider assignment clauses in all key contracts What if your partner is sold to your competitor? Export compliance may matter more Looking for new markets Cuba? Understand new markets What your Distributor Agreement says and what local law require