Holland & Knight - Israel Practice Newsletter: Summer 2021 by Holland & Knight

ISRAEL PRACTICE NEWSLETTER SUMMER 2021

TABLE OF CONTENTS Introduction..............................................................................................................................................................................2 Infrastructure Investment and Jobs Act: Summary of Bipartisan Infrastructure Legislation.........................................................2 Agreement on Global Tax Reform: What Happened and What’s Next.......................................................................................3 SEC Issues First-Ever Penalties for Deficient Cybersecurity Risk Controls.................................................................................3 We Cannot Afford To Be Insane................................................................................................................................................4 Drafting Choice of Law and Choice of Forum Provisions for U.S. Agreements..........................................................................4 ESG: Calculating Carbon Emissions for Financiers and Investor Assessment and Reporting Webinar.......................................5 Climate and Clean Energy Policy State of Play..........................................................................................................................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 1,600 professionals in 30 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.

Infrastructure Investment and Jobs Act: Summary of Bipartisan Infrastructure Legislation By Christopher J. Armstrong, Lauri A. Hettinger, Hannah M. Coulter, Nicole M. Elliott, Jenny Busby, Reese Goldsmith, Devin Barrett, Lisa Ann Barkovic, Leslie I. Pollner, Kathleen Nicholas, Jodi A. Richardson and Meaghan A. Colligan The U.S. Senate on Aug. 10, 2021, voted to pass the Infrastructure Investment and Jobs Act, bipartisan legislation to invest in the nation’s infrastructure, including funding for roads and bridges, rail, transit, ports, airports, electric grid, water systems, broadband, among other priorities. The legislation provides $944 billion in total spending over five years, totaling $550 billion in new spending. It represents a significant infusion of federal funding for U.S. public works across various industries. This Holland & Knight article provides a summary of key provisions in the Infrastructure Investment and Jobs Act that may be of interest to Israeli companies, particularly smart cities tech companies hoping to sell their solutions abroad. Read full article >>

Agreement on Global Tax Reform: What Happened and What’s Next By Alan Winston Granwell and Joshua David Odintz Addressing the tax challenges arising from the digitalization of the economy has been a top priority of the Base Erosion Profit Shifting (BEPS) project of the Organization for Economic Cooperation and Development (OECD)/G-20 Inclusive Framework since 2015. Attempts to reach consensus on how market countries should tax providers that did not have a physical presence in their country and on a minimum corporate tax had stalled because of its complexity and uncertainty and because of the position of the prior administration. All of that changed in 2021 under the Biden Administration. A combination of U.S. initiated actions had the effect of reinvigorating the project. Whether the proposed new international tax architecture ultimately will be approved and implemented by the constituent countries within the ambitious 2023 time frame remains to be seen. Israel is a member of the OECD/G-20 Inclusive Framework. This initiative to reform the international tax system will impact the tax policy of Israel. Among the issues that will need to be considered are how Israel’s investment incentive legislation may be impacted by the minimum tax initiative and how its overall tax policy will be shaped by the new proposals to deal with digitalization, particularly, when in the past Israel had considered a digital service tax. Read full article >>

SEC Issues First-Ever Penalties for Deficient Cybersecurity Risk Controls By Ira N. Rosner and Shardul Desai The U.S. Securities and Exchange Commission (SEC) has launched a stunning salvo across the bows of public companies with its announcement of civil monetary penalties and a cease-and-desist order against First American Financial Corporation (FAFC) for deficient disclosure controls and procedures related to cybersecurity risks. Combined with the New York State Department of Financial Services’ (NYSDFS) first-ever charges for violating the NYSDFS’ Cybersecurity Regulations, FAFC has been battling regulators on multiple fronts for the same cybersecurity risk management failure. Government regulators are using their enforcement powers to ensure that companies implement robust cybersecurity risk management systems. In particular, the SEC’s use of disclosure controls and internal accounting controls requirements as a way to compel public companies to adopt cybersecurity risk management controls is significant. The warning bells and grace periods are over for U.S. publicly traded companies – including those organized or operating in Israel – to develop and implement internal disclosure controls and procedures related to cybersecurity risks. Moreover, with the ceaseless cyberattacks on companies, securities regulators around the world are seeking ways to require companies to implement robust cybersecurity policies. The situation will be no different in Israel. Israeli companies are no strangers to cyberattacks nor to the harm that such attacks can have on publicly traded companies. As such, the Israel Securities Authority may also be looking for similar ways to enhance cybersecurity risk management and related corporate governance. Read full article >> 3

We Cannot Afford To Be Insane By Meital Stavinsky I am writing this shortly after a truce was announced. This is not the typical column I write. I usually write about and promote opportunities for Israel and U.S. business to find ways to do business together and expand commerce between our two countries. As both an American and an Israeli living in the U.S. who cares tremendously about both countries and the close relationship between the people of those two great allies, I feel something else has to be said this time. It is the Middle East. We’ve been there, done that, and know how delicate and fragile is any truce. However, with the hope that this recent violent round has come to conclusion, the question is, what do we do now. As Einstein said, insanity is doing the same thing, over and over again, while expecting different results. If there is one thing I learned during this twoweek Guardian of the Walls defensive operation, following with great worry the nerve-wracking news from the safety of sunny Florida, is that we must encourage policies that change the cycle of threats and violence. Let me start by saying, it is truly a tragedy what happens to the Palestinians. At the same time, portraying Israel and Israelis as the villain in this story, by some U.S. media, ample U.S. influencers on social media, and sadly in recent years, a handful members of U.S. Congress, just has to stop. There is a big difference between Hamas, an internationally recognized terrorist organization and its goal of destroying Israel and the aspirations of the Palestinian people. Chanting falsified “facts” taken straight from a militant terrorist group’s propaganda is not what friends do. Read full article >> Reprinted with permission from The Times of Israel

Drafting Choice of Law and Choice of Forum Provisions for U.S. Agreements By Charles A. Weiss Cross-border commercial contracts almost always include provisions that specify both the choice of law and the choice of forum. These provisions are usually straightforward, but unappreciated nuances in their application by U.S. courts or arbitrators can lead to unexpected results or unnecessary disputes over their scope and construction. This article reviews some of the issues that are known to cause issues with these provisions when they are challenged or tested in litigation or arbitration. It also provides examples of terms that drafters of contracts may find helpful to anticipate and avoid such issues. Read full article >>

ESG: Calculating Carbon Emissions for Financiers and Investor Assessment and Reporting Webinar By Stephen J. Humes, Mark C. Kalpin, Lara M. Rios, Jovi Tenev, Beth A. Viola and Jeffrey Wool Environmental, Social and Corporate Governance (ESG) investing measures the sustainability and societal impact of an investment in a company or business. These types of investments in green financing – credit for projects promoting improved environmental outcomes and sustainability – are increasingly becoming central features of U.S. and international markets (including Israel), climate change mitigation, abatement of greenhouse gas emissions and public policy decisions. In this three-part series, our presenters will take an in-depth look at the core features of green financing, as well as provide analysis of its regulation and its far-reaching implications. In Part 1 of the series, our speakers discuss how various industries could benefit, examine opportunities and present scenarios that could affect you, your business or your clients. This discussion is beneficial for companies in the aviation, shipping, power generation and real estate sectors. Part 2 is scheduled for Thursday, Nov. 4, 2021, and will focus on ESG: Green Financing Criteria and Regulation. In this webinar, the presenters will take an in-depth look at two topics: 1) the rapidly changing environment for, and content of, legal disclosure requirements relating to environment reporting, and 2) the regulation of, and criteria for, green and sustainable financing. Part 3 – yet to be scheduled – will focus on ESG: Social Aspects of Green Financing. Visit www.hklaw.com periodically for more information and registration for both upcoming webinars. Watch full webinar >>

Climate and Clean Energy Policy State of Play By Beth A. Viola, Taite R. McDonald, Hannah M. Coulter, Isabel C. Lane and Reese Goldsmith This Holland & Knight article highlights the biggest clean energy updates and government-related developments from the past few months, and summarizes potential implications of these measures in the coming quarter and year. Clean energy initiatives and legislation continue to advance with unprecedented direction and momentum and clout in the federal government, as federal lawmakers remain committed to enacting policies to deploy technologies in order to drive emissions to net zero over the coming decades. These developments present compelling opportunities for Israeli companies and organizations focusing on all aspects of climate and clean technology. Increasing funding in the form of grants, cooperative agreements, loans and loan guarantees are expected to come online in the coming year as the federal government seeks to foster innovation across a broad range of technologies that are critical to U.S. energy and national security, long-term economic competitiveness and the protection of the environment. Read full article >>

COVID-19 Insights Holland & Knight in partnership with the Israel-America Chamber of Commerce keeps you updated on pertinent AmericanIsraeli 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 Rally Against Anti-Semitism Draws 3,000 at U.S. Capitol, Jewish News Syndicate, Ron Klein, July 12, 2021 A Rally Against Antisemitism’s Message on Israel Has Divided Jewish Groups, Pittsburgh Jewish Chronicle, Ron Klein, July 9, 2021 JDCA Endorses Shontel Brown in Contentious Ohio Special Election, Jewish Insider, Ron Klein, July 2, 2021 Women in AgriFoodTech Roundtable, The Robert H. Smith Faculty of Agriculture, Food and Environment, Meital Stavinsky, June 30, 2021 Jewish Women Who Mean Business, Jewish National Fund-USA and Women for Israel South Florida, Meital Stavinsky, June 17, 2021 The Future of U.S.-Israel Relations with Rep. Ted Deutch, Eyes on Washington Podcast with Meital Stavinsky, June 7, 2021 We Cannot Afford To Be Insane, The Times of Israel, Meital Stavinsky, May 24, 2021

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 1,600 professionals in 30 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 מקצוע‬1,600-‫ 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.‫ משרדים‬30-‫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