Proceedings of the Workshop - United Nations Office for Outer ...

142 THE ROLE OF INTERNATIONAL ORGANIZATIONS IN PRIVATIZATIONAND COMMERCIAL USE OF OUTER SPACEfiled two orbital slots for INTERSPUTNIK's purposes(Agreement on Cooperation in the Field of InternationalLegal Protection of the LATAMSAT Planned SatelliteNetworks of November 10, 1998), the Republic ofBelarus provided 13 orbital slots (Agreement onCooperation in the Field of International LegalProtection of the INTERBELAR and INTERSPUTNIKPlanned Satellite Networks of June 2, 1996).INTERSPUTNIK also received two Mongolian slots(Agreement on Cooperation in the Field of InternationalLegal Protection of the Planned Orbital-frequencyAssignments to the Broadcasting and Fixed SatelliteService of September 29, 1998) and three Ukrainianslots (Agreement between the Cabinet of the Ukraineand the INTERSPUTNIK International Organization ofSpace Communications on Cooperation in the Filed ofthe Utilization of the Satellite CommunicationsNetworks of September 24, 1998).In the framework of the INTERSPUTNIK Boarddecisions regarding the Organization’s own spacesegment a strategic alliance with Lockheed Martin Corp.was struck. On April 18, 1997, a Joint VentureAgreement between the INTERSPUTNIK InternationalOrganization of Space Communications and LockheedMartin was signed (Agreement). The document becamea unique one as it was the first experience of formalizingsuch an alliance between an intergovernmentalorganization and a transnational corporation. Thespecific feature of the Agreement resulted in a numberof non-standard provisions stipulated in it.The following main conditions of the Joint VentureAgreement were set forth in the resolutions of the Boardand Committee of Plenipotentiaries:up;Mutually acceptable percentage of interest was set- INTERSPUTNIK's contribution is its satelliteoperator experience, orbital slots and marketingof transponder capacity- For operating the first satellite,INTERSPUTNIK will get a fixed percentage ofthe total satellite revenue.- LM's contribution is satellites and relevantinvestments (launch, insurance etc.).- Joint Venture's name will be changed toLockheed Martin INTERSPUTNIK (LMI)- Joint Venture's Board of Directors will consistof nine directors: 7 LM directors and 2INTERSPUTNIK directors. The directors arenot entitled to any compensation from the LMI.- Principal issues will be decided by asupermajority affirmative vote of 80% of theBoard of Directors' votes.Thus, INTERSPUTNIK does not invest in LMI, itsshare being the experience in the field of satellite systemoperation, marketing and coordinated orbital slots forthe new satellites.The XXVIth Session of the Board resolved toappoint INTERSPUTNIK's Director General and hisDeputy to the LMI Board of Directors. TheINTERSPUTNIK Board also decided thatINTERSPUTNIK's representatives on the LMI Boardof Directors should have a consolidated vote whichcannot be split without a relevant resolution of theBoard (Committee) of the Organization.In July 1998, in Vienna, the LMI BoD decided toimplement the participation for Khrunichev StateResearch and Production Space Center (Russia) as aclass B shareholder which does not provide for votingat the Shareholder’s Meetings and does not give anyrights to dividends. The Board of Directors wasextended to 10 persons and one director fromKhrunichev State Research and Production SpaceCenter was nominated with the right to vote at theBoard of Directors. Accordingly, it was decided that allthe resolutions which require a supermajority of thevotes should be adopted by a majority of 81% of theBoard of Directors votes.The fourth LMI Board of Directors meeting held inMay 1999 took an important decision that the Companyshould implement the goals and purposes it wasestablished for. Therefore, the potential and resourcesof its shareholders should be used to the maximumextent to ensure management, administrative andoperational services of the Company. In the light of thesigned Memorandum on itemizing the interactionprinciples between INTERSPUTNIK and LMGT, the