SECOND CIS LOCAL COUNSEL FORUM David Franklin, June 20-22, 2007 Baku, Azerbaijan International Commercial Debt Collection Franklin & Franklin Lawyers 4141 Sherbrooke St. West #545 Montreal, Quebec, Canada H3Z 1B8 Tel Fax website:

1.Three Way Chess The law of: the creditor the debtor International law and custom Federal State law — multi - jurisdictional countries 2. Third Party Collection Collection agencies Lawyers 3. Fee structures Contingent Hourly /handling

4. Problematic Areas Name verification Personal guarantees Contractual interest Collection of legal fees, penalties, administration/service charges Protection of security interest—ROT Recognition of Foreign Judgments Recognition of Arbitration Awards

5. Legal Obstacles to Plaintiff Suing Abroad Foreign law Uncertainty of foreign courts and procedure Unfamiliarity with local counsel and fee requirements Foreign language Expenses of travel, translation and authentication of documents

5. Legal Obstacles to Plaintiff Suing Abroad (cont’d) Competency/availability of witnesses Powers of Attorney Security for costs Statute of limitations Proper service and notification Registration of foreign companies Arbitration Clause Choice of law clause Choice of jurisdiction clause