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Japan-Ukraine Antonov Contract
Topic Started: Apr 18 2014, 05:07 PM (184 Views)
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A. Purchase of Stocks & Revenue Distribution
1. Japan agrees to pay the Ukrainian government 2 billion USD for the purchase of a 50% stake in Antonov State Company, henceforth called simply 'Antonov'.
2. Antonov will become a subsidiary of Mitsubishi Heavy Industries (MHI).
3. Profits of Antonov will be split based on controlling shares, so that a 50/50 split in stock will be a 50/50 split in profits.

B. Manufacturing, R&D and Employment
1. All manufacturing of Antonov produced commodities shall stay within Ukraine for the duration of this contract, unless otherwise agreed upon by the signatories.
2. The above shall not apply to Research and Development facilities, which shall primarily be based in Japan at existing MHI facilities.
3. Japan agrees to provide Ukrainian R&D employee's work permits to stay and train in Japan at MHI/Antonov R&D facilities there.
4. Employment at Antonov shall not fall below the levels they were at the signing of this contract, unless otherwise agreed upon by the signatories.

C. Marketing & The Future of Antonov
1. With a strong commitment to the current and future success of Antonov, Japan agrees to support Antonov in all possible capacities.
2. Japan will agree to subsidize future Antonov aircraft for purchase by Japanese carriers, said subsidies are to be agreed upon by both signatories.

D. Management & Operating Budget
1. The CEO and CFO positions shall be filled by a Ukrainian and Japanese national respectively on a rotating basis; at no point shall both positions be filled by the nationals of only one signatory.
2. Japan agrees to a 70/30 Japan/Ukraine split in the operating budget of Antonov for the first 5 years, after which it shall revert to a 40/60 Japan/Ukraine split.

E. Yearly Analysis & Cancellation
1. Both signatories shall meet for an annual review of progress made the prior year to discuss avenues of fiscal improvement, revenue consolidation, and set a sales goal and plan of action for the coming year, etc.
2. This contract may not be cancelled without the agreement of both signatories
3. Should a breach of this contract occur, the offending party per international arbitration shall be required to pay the offended party 2.5 billion USD in compensation.
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Signed for Ukraine:

Vitali Klitschko
President of Ukraine

Mykola Dmytrovych Katerynchuk
Prime Minister of Ukraine

Leonid Chernovetskyi
Minister of Economy of Ukraine
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Signed,

Shinzo Abe
Prime Minister of Japan

Toshimitsu Motegi
Minister for Economy, Trade and Industry

Hideaki Ohmiya
Chairman of Mitsubishi Heavy Industries
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Approved and Ratified by the Ukrainian and Japanese legislature.
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