The Party would be required to certify, in advance, that it possesses the necessary supervisory powers and that it will exercise these powers (through the relevant Ministry or regulatory body of the government responsible for controlling the licensing and operation of earth stations within its territory) upon reasonable request by INTELSAT. However, INTELSAT will request assistance from the Party, through the relevant Ministry or regulatory body, only if INTELSAT has been unsuccessful in attempting to obtain compliance by the earth station operator through INTELSAT's own means. The liability of the Party under such an arrangement would be limited to the assumption of responsibility for the authorized entity's operation of the earth station; the Party would not be financially liable to INTELSAT in the event INTELSAT is damaged as a result of the entity's mis- operation of the earth station.

12. Consistent with the proposed practice governing Signatory liability for unpaid bills, the entity operating the earth station which caused any damage would be held directly responsible to INTELSAT. Moreover, although the technical risk may be low, it may be desirable to cover the remaining risk by insurance. An umbrella policy by INTELSAT could be established, with the premium paid either by the earth station entity or perhaps by INTELSAT itself. INTELSAT Management is exploring this matter, including súch questions as what to insure: revenues, the satellite, replacement cost, third party liability, etc.

CONCLUSION

total

13. It is concluded that, with the above measures properly implemented, any residual additional risk falling on INTELSAT as a whole will be within acceptable limits. To the degree that any such risk may remain, it will be offset by the benefit to the membership as a whole arising from the increased use of the system that should result.

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