1. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 1 1 FINNISH PARTNERS CO-FUNDERS SPONSORS LIASON PROGRAMS Pirkanmaa Keski-Suomi Pohjois-Pohjanmaa Uusimaa MANAGING PARTNER

2. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 2 2 LESSONS LEARNED TWENTY YEARS OF FINNISH-AMERICAN BUSINESS Presented by: John D. Saunders, Smith, Gambrell & Russell, LLP 1230 Peachtree Street, NE Suite 3100 Atlanta, Georgia 30309 (404) 815-3682 jsaunders@sgrlaw.com

3. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 3 3 Greenfield Start-Up Common mistakes: 1. Market approach not sufficiently Americanized – excessive reliance on Finnish (European) success parameters

4. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 4 4 2. Lack of attention to customer service 3.Lacking control on management performance and costs 4.Conflicts between local management and parent company technical personnel

5. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 5 5 5. Choice of partners or local management and key staff without adequate “background check” 6.Overly aggressive target market area - the U.S. is large

6. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 6 6 Joint Venture/Partnership Common mistakes: 1.Insufficient knowledge of the market and competitors 2.Belief that a partner will automatically shield you from product liability risk

7. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 7 7 3. Lack of patent and intellectual property protection 4.Partner’s own products can command too much attention 5.Partner’s commitment inadequate (staffing, resources)

8. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 8 8 6. Sole reliance on partner – inadequate support from Europe 7.Inadequate contracts and agreements (getting “engaged” without getting “married”) 8.Lack of exit strategy from partnership agreement

9. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 9 9 9.European Summer shutdowns and lack of a plan to stay in communication with your partner 10.Failure to link U.S. partners compensation / payments to performance

10. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 10 Legal Challenges Common mistakes: 1.Irreversible business decision before legal review of available options

11. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 11 2.Execution of unfavorable agreements prepared by the “other side” without review by counsel – casual letter agreements 3.Unnecessary exposure of Finnish parent company to U.S. liabilities and taxes

12. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 12 4. Lack of attention to agreements and contracts and their complexity:

13. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 13 (a)incomplete terms and conditions of business (warranty; payment terms; liability limits) (b)failure to provide flexibility in agreements to modify or cancel distributor or representative agreements due to inadequate performance

14. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 14 5.Failure to implement comprehensive employment policies (“employee handbook”), etc. 6.Adopting a policy of always settling disputes invites unfair and unfounded claims

15. Global Software II Introduction Paving the Way to the US Market For Finnish Software Companies Copyright Global Software II 2002 15 THANK YOU