definiens: . Affiliate means any corporation, company, partnership, jOintventure and/or firm which controls, is controlled by, or is under common control with a specifiedperson or entity . For purposes of this Section 1.1, shall be presumed to exist if one ofthe following conditions is met : ( a ) in the case of corporate entities, direct or indirect ownershipof at least fifty percent ( 50 % ) of the stock or shares having the right to vote for the election ofdirectors, or ( b ) in the case of non - corporate entities, direct or indirect ownership of at least lillypercent ( 50 % ) of the equity interest with the power to direct the management and policies ofsuch non - corporate entities . The Parties acknowledge that in the case of certain entitiesorgani7.ed under the laws of certain countries outside of the United States, the maximumpercentage ownership permitted by law for a foreign investor may be less than fifty percent(50 % ), and that in such case such lower percentage shall be substituted in the precedingsentence, provided that such foreign investor has the power to direct the management andpolicies of such entity