Clarification of Reciprocal Waivers of Claims for Multiple-Customer Commercial Space Launch and Reentry, 8629-8637 [2011-3313]

Agencies

• Federal Aviation Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 76, Number 31 (Tuesday, February 15, 2011)]
[Rules and Regulations]
[Pages 8629-8637]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-3313]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 440

[Docket No. FAA-2010-1150; Amendment No. 440-2]
RIN 2120-AJ85


Clarification of Reciprocal Waivers of Claims for Multiple-
Customer Commercial Space Launch and Reentry

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Technical amendment.

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SUMMARY: This action clarifies a reciprocal waiver of claims 
requirement for an FAA authorized launch or reentry in which a licensee 
or permittee has multiple customers. There has been confusion about 
whether all customers must sign or whether one customer can sign such 
an agreement on behalf of all customers. This action eliminates any 
confusion by clarifying that a reciprocal waiver of claims requires 
each customer to enter into a waiver with the U.S. Government and the 
licensee or permittee. However, this action does not change the 
existing practice for government customers, which is that the FAA signs 
on their behalf.

DATES: This amendment becomes effective March 17, 2011.

FOR FURTHER INFORMATION CONTACT: Laura Montgomery, Senior Attorney for 
Commercial Space Transportation, Office of the Chief Counsel, 
Regulations Division, AGC-200, Federal Aviation Administration, 800 
Independence Avenue, SW., Washington, DC 20591; telephone (202) 267-
3150; facsimile (202) 267-7971; e-mail laura.montgomery@faa.gov.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The statute under which the Secretary of Transportation regulates 
commercial space transportation, 51 U.S.C. subtitle V, chapter 509, 
sections 50901-50923 (chapter 509), requires that, for each commercial 
space launch or reentry, the Department of Transportation (DOT) and, 
through delegation, the Federal Aviation Administration (FAA) enter 
into a reciprocal waiver of claims agreement with ``the licensee or 
transferee, contractors, subcontractors, crew, space flight 
participants, and customers of the licensee or transferee, and 
contractors and subcontractors of the customers * * *'' 51 U.S.C. 
50914(b)(2). This requirement also applies to permittees under 51 
U.S.C. 50906(i). This rule changes Title 14, Code of Federal 
Regulations (14 CFR) 440.17(c) to more clearly track Congress' 
requirement that the reciprocal waiver of claims include all 
``customers of the licensee or transferee * * *'' Id. (emphasis added).

Prior Rulemakings

    Enacted in 1998, Sec.  440.17(c) requires that the U.S. Government, 
commercial space launch and reentry licensees, and the licensees' 
customers enter into a reciprocal waiver of claims agreement with the 
government. See Financial Responsibility Requirements for Licensed 
Launch Activities, 63 FR 45592 (Aug. 26, 1998) (final rule); and 
Financial Responsibility Requirements for Licensed Launch Activities, 
61 FR 38992 (Jul. 25, 1996) (notice of proposed rulemaking) 
(``Financial Responsibility NPRM''). The regulation was amended to 
require a waiver between the U.S. Government, permittees, and the 
permittees' customers. See Human Space Flight Requirements for Crew and 
Space Flight Participants, 71 FR 75616 (Dec. 5, 2006) (final rule); and 
Experimental Permits for Reusable Suborbital Rockets, 70 FR 77262 (Dec. 
29, 2005) (notice of proposed rulemaking).

Background

    The FAA is required by 51 U.S.C. 50914(b)(2) and 50906(i) to enter 
into a reciprocal waiver of claims agreement with the customers of a 
licensee or permittee for commercial space flight. The pertinent part 
of the regulation for implementing this congressional requirement, 
Sec.  440.17(c), currently mandates that the licensee or permittee and 
its customer enter into a three-party reciprocal waiver of claims 
agreement when conducting a licensed or permitted activity in which the 
federal government, any agency, or its contractors and subcontractors 
is involved. This requirement also applies to activities where property 
insurance is required under Sec.  440.9(d).
    Unfortunately, the FAA has found that this language has created 
confusion. The term ``three-party reciprocal waiver,'' in particular, 
has prompted some customers of commercial space launches to believe 
that only three parties were necessary to complete the waiver, even if 
there were multiple customers; and so, under this interpretation, only 
one customer was considered necessary to sign the waiver. Further, 
Appendix B and Appendix C of part 440 define, ``Customer'' as the 
above-named Customer on behalf of the Customer and any person described 
in Sec.  440.3 of the regulations. Again, customers sometimes read this 
language to suggest that one customer could sign on behalf of the other 
customers.
    However, a plain language reading of the statute makes it clear 
that Congress intended the government to enter into a reciprocal waiver 
of claims with all customers. See 51 U.S.C. 50914(b)(2). Further, the 
notice of proposed rulemaking (NPRM) for Sec.  440.17 shows that the 
regulation actually captures all customers within the reciprocal waiver 
requirement. As noted in the Financial Responsibility NPRM:

    A question has been raised by a payload company as to the 
Office's requirements when multiple customers contract with a launch 
operator for launch services or there is more than one customer's 
payload on the launch manifest for a single launch. In those cases, 
executing a single waiver of claims agreement that includes each 
customer as a party to the agreement, or executing separate but 
appropriately modified agreements, would serve to ensure all parties 
have been included and protected as intended.

See Financial Responsibility NPRM, 61 FR at 39012. Also, in practice, 
the FAA has held the view that all customers must enter into the 
reciprocal waiver of claims and has ensured that each customer enter 
into the waiver of claims.

    The changes to Appendix B and Appendix C of part 440 provide 
examples of waiver agreements for multiple-customer launches and 
reentries. These examples are included for the convenience of parties 
involved in commercial space activities. The FAA's intent with these 
examples is to clarify that each customer must waive claims against all 
other customers, the U.S. Government, and the licensee or permittee. 
Each customer is also required to indemnify these other parties against 
claims by the customer's own contractors and subcontractors.
    Further, each customer must extend the reciprocal waiver of claims 
to its own contractors and subcontractors. However, in no case is any 
one customer required to indemnify against claims brought by another 
customer, or to extend the reciprocal waiver of claims to other 
customers or the contractors and subcontractors of any other customer. 
Thus, the definition of ``customer'' in the appendices has been 
clarified to ensure that one customer cannot sign on behalf of other

[[Page 8630]]

customers. Again, these changes are consistent with the Financial 
Responsibility NPRM and FAA policy.
    To maintain consistency, the FAA is also amending paragraph 5(b) of 
the reciprocal waiver of claims in the appendices. That paragraph 
addresses how a customer holds harmless and indemnifies the other 
parties to the waiver and their related entities against claims brought 
by the customer's contractors and subcontractors. The FAA is removing 
from 5(b) the statement that the customer indemnifies the other parties 
against claims brought by any person ``on whose behalf'' the customer 
entered into the waiver, namely, under the current but not the new 
appendix definition, another customer.
    The FAA is making this change because the language is unnecessary 
and incorrect. It is unnecessary because of the FAA's policy and 
practice of requiring all customers to sign the required waivers; thus, 
a customer should not be signing on behalf of another customer. It is 
the licensee who is responsible for obtaining waivers from all 
customers. Additionally, the regulations do not require a customer to 
indemnify the other parties for claims made by other customers. See 14 
CFR 440.17(d). Accordingly, in keeping with this rulemaking's 
clarification that all customers sign a reciprocal waiver, the FAA is 
removing the statement that a customer must provide indemnification on 
behalf of another customer.

List of Subjects in 14 CFR Part 440

    Armed forces, Claims; Federal building and facilities, Government 
property, Indemnity payments, Insurance, Reporting and recordkeeping 
requirements, Rockets, Space transportation and exploration.

 The Amendments

    In consideration of the foregoing, the Federal Aviation 
Administration amends chapter II of title 14, Code of Federal 
Regulations as follows:

PART 440--FINANCIAL RESPONSIBILITY

0
1. The authority citation for part 440 is revised to read as follows:

    Authority:  51 U.S.C. 50901-50923; 49 CFR 1.47.


0
2. Amend Sec.  440.17 by revising paragraph (c) to read as follows:


Sec.  440.17  Reciprocal waiver of claims requirement.

* * * * *
    (c) For each licensed or permitted activity in which the U.S. 
Government, any agency, or its contractors and subcontractors is 
involved or where property insurance is required under Sec.  440.9(d), 
the Federal Aviation Administration of the Department of 
Transportation, the licensee or permittee, and each customer shall 
enter into a reciprocal waiver of claims agreement. The reciprocal 
waiver of claims shall be in the form set forth in Appendix B of this 
part for licensed activity, in Appendix C of this part for permitted 
activity, or in a form that satisfies the requirements.
* * * * *

0
3. Revise Appendix B to part 440 to read as follows:

Appendix B to Part 440--Agreement for Waiver of Claims and Assumption 
of Responsibility for Licensed Activities

Part 1--Waiver of Claims and Assumption of Responsibility for Licensed 
Launch, Including Suborbital Launch

Subpart A--Waiver of Claims and Assumption of Responsibility for 
Licensed Launch, Including Suborbital Launch, With One Customer

    This agreement is entered into this ---- day of --------, by and 
among [Licensee] (the ``Licensee''), [Customer] (the ``Customer'') 
and the Federal Aviation Administration of the Department of 
Transportation, on behalf of the United States Government 
(collectively, the ``Parties''), to implement the provisions of 
section 440.17(c) of the Commercial Space Transportation Licensing 
Regulations, 14 CFR Ch. III (the ``Regulations''). This agreement 
applies to the launch of [Payload] payload on a [Launch Vehicle] 
vehicle at [Location of Launch Site]. In consideration of the mutual 
releases and promises contained herein, the Parties hereby agree as 
follows:

1. Definitions

    Contractors and Subcontractors means entities described in Sec.  
440.3 of the Regulations.
    Customer means the above-named Customer.
    License means License No. ------------ issued on --------------
----, by the Associate Administrator for Commercial Space 
Transportation, Federal Aviation Administration, Department of 
Transportation, to the Licensee, including all license orders issued 
in connection with the License.
    Licensee means the Licensee and any transferee of the Licensee 
under 51 U.S.C. Subtitle V, ch. 509.
    United States means the United States and its agencies involved 
in Licensed Activities. Except as otherwise defined herein, terms 
used in this Agreement and defined in 51 U.S.C. Subtitle V, ch. 
509--Commercial Space Launch Activities, or in the Regulations, 
shall have the same meaning as contained in 51 U.S.C. Subtitle V, 
ch. 509, or the Regulations, respectively.

2. Waiver and Release of Claims

    (a) Licensee hereby waives and releases claims it may have 
against Customer and the United States, and against their respective 
Contractors and Subcontractors, for Property Damage it sustains and 
for Bodily Injury or Property Damage sustained by its own employees, 
resulting from Licensed Activities, regardless of fault.
    (b) Customer hereby waives and releases claims it may have 
against Licensee and the United States, and against their respective 
Contractors and Subcontractors, for Property Damage it sustains and 
for Bodily Injury or Property Damage sustained by its own employees, 
resulting from Licensed Activities, regardless of fault.
    (c) The United States hereby waives and releases claims it may 
have against Licensee and Customer, and against their respective 
Contractors and Subcontractors, for Property Damage it sustains, and 
for Bodily Injury or Property Damage sustained by its own employees, 
resulting from Licensed Activities, regardless of fault, to the 
extent that claims it would otherwise have for such damage or injury 
exceed the amount of insurance or demonstration of financial 
responsibility required under sections 440.9(c) and (e), 
respectively, of the Regulations.

3. Assumption of Responsibility

    (a) Licensee and Customer shall each be responsible for Property 
Damage it sustains and for Bodily Injury or Property Damage 
sustained by its own employees, resulting from Licensed Activities, 
regardless of fault. Licensee and Customer shall each hold harmless 
and indemnify each other, the United States, and the Contractors and 
Subcontractors of each Party, for Bodily Injury or Property Damage 
sustained by its own employees, resulting from Licensed Activities, 
regardless of fault.
    (b) The United States shall be responsible for Property Damage 
it sustains, and for Bodily Injury or Property Damage sustained by 
its own employees, resulting from Licensed Activities, regardless of 
fault, to the extent that claims it would otherwise have for such 
damage or injury exceed the amount of insurance or demonstration of 
financial responsibility required under sections 440.9(c) and (e), 
respectively, of the Regulations.

4. Extension of Assumption of Responsibility and Waiver and Release of 
Claims

    (a) Licensee shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(a) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
Customer and the United States, and against the respective 
Contractors and Subcontractors of each, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify Customer and the United States, and the 
respective Contractors and Subcontractors of each, for Bodily Injury 
or Property Damage sustained by their own employees, resulting from 
Licensed Activities, regardless of fault.

[[Page 8631]]

    (b) Customer shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(b) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
Licensee and the United States, and against the respective 
Contractors and Subcontractors of each, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify Licensee and the United States, and the 
respective Contractors and Subcontractors of each, for Bodily Injury 
or Property Damage sustained by their own employees, resulting from 
Licensed Activities, regardless of fault.
    (c) The United States shall extend the requirements of the 
waiver and release of claims, and the assumption of responsibility 
as set forth in paragraphs 2(c) and 3(b), respectively, to its 
Contractors and Subcontractors by requiring them to waive and 
release all claims they may have against Licensee and Customer, and 
against the respective Contractors and Subcontractors of each, and 
to agree to be responsible, for any Property Damage they sustain and 
for any Bodily Injury or Property Damage sustained by their own 
employees, resulting from Licensed Activities, regardless of fault, 
to the extent that claims they would otherwise have for such damage 
or injury exceed the amount of insurance or demonstration of 
financial responsibility required under sections 440.9(c) and (e), 
respectively, of the Regulations.

5. Indemnification

    (a) Licensee shall hold harmless and indemnify Customer and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them, and the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them, from and against liability, loss or damage arising out of 
claims that Licensee's Contractors and Subcontractors may have for 
Property Damage sustained by them and for Bodily Injury or Property 
Damage sustained by their employees, resulting from Licensed 
Activities.
    (b) Customer shall hold harmless and indemnify Licensee and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them, and the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them, from and against liability, loss or damage arising out of 
claims that Customer's Contractors and Subcontractors may have for 
Property Damage sustained by them and for Bodily Injury or Property 
Damage sustained by their employees, resulting from Licensed 
Activities.
    (c) To the extent provided in advance in an appropriations law 
or to the extent there is enacted additional legislative authority 
providing for the payment of claims, the United States shall hold 
harmless and indemnify Licensee and Customer and their respective 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them, from and against liability, loss or 
damage arising out of claims that Contractors and Subcontractors of 
the United States may have for Property Damage sustained by them, 
and for Bodily Injury or Property Damage sustained by their 
employees, resulting from Licensed Activities, to the extent that 
claims they would otherwise have for such damage or injury exceed 
the amount of insurance or demonstration of financial responsibility 
required under sections 440.9(c) and (e), respectively, of the 
Regulations.

6. Assurances Under 51 U.S.C. 50914(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Licensee shall hold harmless and indemnify the United States and its 
agencies, servants, agents, employees and assignees, or any of them, 
from and against liability, loss or damage arising out of claims for 
Bodily Injury or Property Damage, resulting from Licensed 
Activities, regardless of fault, except to the extent that: (i) As 
provided in section 7(b) of this Agreement, claims result from 
willful misconduct of the United States or its agents; (ii) claims 
for Property Damage sustained by the United States or its 
Contractors and Subcontractors exceed the amount of insurance or 
demonstration of financial responsibility required under section 
440.9(e) of the Regulations; (iii) claims by a Third Party for 
Bodily Injury or Property Damage exceed the amount of insurance or 
demonstration of financial responsibility required under section 
440.9(c) of the Regulations, and do not exceed $1,500,000,000 (as 
adjusted for inflation after January 1, 1989) above such amount, and 
are payable pursuant to the provisions of 51 U.S.C. 50915 and 
section 440.19 of the Regulations; or (iv) Licensee has no liability 
for claims exceeding $1,500,000,000 (as adjusted for inflation after 
January 1, 1989) above the amount of insurance or demonstration of 
financial responsibility required under section 440.9(c) of the 
Regulations.

7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by Licensee, Customer or the United States of any claim by 
an employee of the Licensee, Customer or the United States, 
respectively, including a member of the Armed Forces of the United 
States, for Bodily Injury or Property Damage, resulting from 
Licensed Activities.
    (b) Notwithstanding any provision of this Agreement to the 
contrary, any waiver, release, assumption of responsibility or 
agreement to hold harmless and indemnify herein shall not apply to 
claims for Bodily Injury or Property Damage resulting from willful 
misconduct of any of the Parties, the Contractors and Subcontractors 
of any of the Parties, and in the case of Licensee and Customer and 
the Contractors and Subcontractors of each of them, the directors, 
officers, agents and employees of any of the foregoing, and in the 
case of the United States, its agents.
    (c) This Agreement shall be governed by and construed in 
accordance with United States Federal law.
    In witness whereof, the Parties to this Agreement have caused 
the Agreement to be duly executed by their respective duly 
authorized representatives as of the date written above.

Licensee
By:--------------------------------------------------------------------
Its:-------------------------------------------------------------------

Customer
By:--------------------------------------------------------------------
Its:-------------------------------------------------------------------

Federal Aviation Administration of the Department of Transportation 
on Behalf of the United States Government
By:--------------------------------------------------------------------
Its:-------------------------------------------------------------------

Associate Administrator for Commercial Space Transportation

Subpart B--Waiver of Claims and Assumption of Responsibility for 
Licensed Launch, Including Suborbital Launch, With More Than One 
Customer

    This agreement is entered into this ---- day of --------, by and 
among [Licensee] (the ``Licensee''); [List of Customers]; (with 
[List of Customers] hereinafter referred to in their individual 
capacity as ``Customer''); and the Federal Aviation Administration 
of the Department of Transportation, on behalf of the United States 
Government (collectively, the ``Parties''), to implement the 
provisions of section 440.17(c) of the Commercial Space 
Transportation Licensing Regulations, 14 CFR Ch. III (the 
``Regulations''). This agreement applies to the launch of [Payload] 
payload on a [Launch Vehicle] vehicle at [Location of Launch Site].
    In consideration of the mutual releases and promises contained 
herein, the Parties hereby agree as follows:

1. Definitions

    Contractors and Subcontractors means entities described in Sec.  
440.3 of the Regulations.
    Customer means each above-named Customer.
    License means License No. -------- issued on ----------------, 
by the Associate Administrator for Commercial Space Transportation, 
Federal Aviation Administration, Department of Transportation, to 
the Licensee, including all license orders issued in connection with 
the License.
    Licensee means the Licensee and any transferee of the Licensee 
under 51 U.S.C. Subtitle V, ch. 509.
    United States means the United States and its agencies involved 
in Licensed Activities. Except as otherwise defined herein, terms 
used in this Agreement and defined in 51 U.S.C. Subtitle V, ch. 
509--Commercial Space Launch Activities, or in the Regulations, 
shall have the same meaning as contained in 51 U.S.C. Subtitle V, 
ch. 509, or the Regulations, respectively.

2. Waiver and Release of Claims

    (a) Licensee hereby waives and releases claims it may have 
against each Customer and the United States, and against their 
respective Contractors and Subcontractors, for Property Damage it 
sustains and for Bodily Injury or Property Damage sustained by its 
own employees, resulting from Licensed Activities, regardless of 
fault.
    (b) Each Customer hereby waives and releases claims it may have 
against each other Customer, the Licensee and the United

[[Page 8632]]

States, and against their respective Contractors and Subcontractors, 
for Property Damage it sustains and for Bodily Injury or Property 
Damage sustained by its own employees, resulting from Licensed 
Activities, regardless of fault.
    (c) The United States hereby waives and releases claims it may 
have against Licensee and each Customer, and against their 
respective Contractors and Subcontractors, for Property Damage it 
sustains, and for Bodily Injury or Property Damage sustained by its 
own employees, resulting from Licensed Activities, regardless of 
fault, to the extent that claims it would otherwise have for such 
damage or injury exceed the amount of insurance or demonstration of 
financial responsibility required under sections 440.9(c) and (e), 
respectively, of the Regulations.

3. Assumption of Responsibility

    (a) Licensee and each Customer shall each be responsible for 
Property Damage it sustains and for Bodily Injury or Property Damage 
sustained by its own employees, resulting from Licensed Activities, 
regardless of fault. Licensee and each Customer shall each hold 
harmless and indemnify each other, the United States, and the 
Contractors and Subcontractors of each Party, for Bodily Injury or 
Property Damage sustained by its own employees, resulting from 
Licensed Activities, regardless of fault.
    (b) The United States shall be responsible for Property Damage 
it sustains, and for Bodily Injury or Property Damage sustained by 
its own employees, resulting from Licensed Activities, regardless of 
fault, to the extent that claims it would otherwise have for such 
damage or injury exceed the amount of insurance or demonstration of 
financial responsibility required under sections 440.9(c) and (e), 
respectively, of the Regulations.

4. Extension of Assumption of Responsibility and Waiver and Release of 
Claims

    (a) Licensee shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(a) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
each Customer and the United States, and against the respective 
Contractors and Subcontractors of each, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify each Customer and the United States, and 
the respective Contractors and Subcontractors of each, for Bodily 
Injury or Property Damage sustained by their own employees, 
resulting from Licensed Activities, regardless of fault.
    (b) Each Customer shall extend the requirements of the waiver 
and release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(b) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
Licensee, each other Customer and the United States, and against the 
respective Contractors and Subcontractors of each, and to agree to 
be responsible, for Property Damage they sustain and to be 
responsible, hold harmless and indemnify Licensee, each other 
Customer and the United States, and the respective Contractors and 
Subcontractors of each, for Bodily Injury or Property Damage 
sustained by their own employees, resulting from Licensed 
Activities, regardless of fault.
    (c) The United States shall extend the requirements of the 
waiver and release of claims, and the assumption of responsibility 
as set forth in paragraphs 2(c) and 3(b), respectively, to its 
Contractors and Subcontractors by requiring them to waive and 
release all claims they may have against Licensee and each Customer, 
and against the respective Contractors and Subcontractors of each, 
and to agree to be responsible, for any Property Damage they sustain 
and for any Bodily Injury or Property Damage sustained by their own 
employees, resulting from Licensed Activities, regardless of fault, 
to the extent that claims they would otherwise have for such damage 
or injury exceed the amount of insurance or demonstration of 
financial responsibility required under sections 440.9(c) and (e), 
respectively, of the Regulations.

5. Indemnification

    (a) Licensee shall hold harmless and indemnify each Customer and 
its directors, officers, servants, agents, subsidiaries, employees 
and assignees, or any of them, and the United States and its 
agencies, servants, agents, subsidiaries, employees and assignees, 
or any of them, from and against liability, loss or damage arising 
out of claims that Licensee's Contractors and Subcontractors may 
have for Property Damage sustained by them and for Bodily Injury or 
Property Damage sustained by their employees, resulting from 
Licensed Activities.
    (b) Each Customer shall hold harmless and indemnify each other 
Customer and its directors, officers, servants, agents, 
subsidiaries, employees and assignees, or any of them, and the 
Licensee and its directors, officers, servants, agents, 
subsidiaries, employees and assignees, or any of them, and the 
United States and its agencies, servants, agents, subsidiaries, 
employees and assignees, or any of them, from and against liability, 
loss or damage arising out of claims that the first-named Customer's 
Contractors and Subcontractors may have for Property Damage 
sustained by them and for Bodily Injury or Property Damage sustained 
by their employees, resulting from Licensed Activities.
    (c) To the extent provided in advance in an appropriations law 
or to the extent there is enacted additional legislative authority 
providing for the payment of claims, the United States shall hold 
harmless and indemnify Licensee and each Customer and their 
respective directors, officers, servants, agents, subsidiaries, 
employees and assignees, or any of them, from and against liability, 
loss or damage arising out of claims that Contractors and 
Subcontractors of the United States may have for Property Damage 
sustained by them, and for Bodily Injury or Property Damage 
sustained by their employees, resulting from Licensed Activities, to 
the extent that claims they would otherwise have for such damage or 
injury exceed the amount of insurance or demonstration of financial 
responsibility required under sections 440.9(c) and (e), 
respectively, of the Regulations.

6. Assurances Under 51 U.S.C. 50914(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Licensee shall hold harmless and indemnify the United States and its 
agencies, servants, agents, employees and assignees, or any of them, 
from and against liability, loss or damage arising out of claims for 
Bodily Injury or Property Damage, resulting from Licensed 
Activities, regardless of fault, except to the extent that: (i) As 
provided in section 7(b) of this Agreement, claims result from 
willful misconduct of the United States or its agents; (ii) claims 
for Property Damage sustained by the United States or its 
Contractors and Subcontractors exceed the amount of insurance or 
demonstration of financial responsibility required under section 
440.9(e) of the Regulations; (iii) claims by a Third Party for 
Bodily Injury or Property Damage exceed the amount of insurance or 
demonstration of financial responsibility required under section 
440.9(c) of the Regulations, and do not exceed $1,500,000,000 (as 
adjusted for inflation after January 1, 1989) above such amount, and 
are payable pursuant to the provisions of 51 U.S.C. 50915 and 
section 440.19 of the Regulations; or (iv) Licensee has no liability 
for claims exceeding $1,500,000,000 (as adjusted for inflation after 
January 1, 1989) above the amount of insurance or demonstration of 
financial responsibility required under section 440.9(c) of the 
Regulations.

7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by Licensee, any Customer or the United States of any claim 
by an employee of the Licensee, any Customer or the United States, 
respectively, including a member of the Armed Forces of the United 
States, for Bodily Injury or Property Damage, resulting from 
Licensed Activities.
    (b) Notwithstanding any provision of this Agreement to the 
contrary, any waiver, release, assumption of responsibility or 
agreement to hold harmless and indemnify herein shall not apply to 
claims for Bodily Injury or Property Damage resulting from willful 
misconduct of any of the Parties, the Contractors and Subcontractors 
of any of the Parties, and in the case of Licensee and each Customer 
and the Contractors and Subcontractors of each of them, the 
directors, officers, agents and employees of any of the foregoing, 
and in the case of the United States, its agents.
    (c) References herein to Customer shall apply to, and be deemed 
to include, each such customer severally and not jointly.
    (d) This Agreement shall be governed by and construed in 
accordance with United States Federal law.
    In witness whereof, the Parties to this Agreement have caused 
the Agreement to be duly executed by their respective duly 
authorized representatives as of the date written above.


[[Page 8633]]


Licensee
By:--------------------------------------------------------------------
Its:-------------------------------------------------------------------

Customer 1
By:--------------------------------------------------------------------
Its:-------------------------------------------------------------------

[Signature lines for each additional customer]

Federal Aviation Administration of the Department of Transportation 
on Behalf of the United States Government
By:--------------------------------------------------------------------
Its:-------------------------------------------------------------------

Associate Administrator for Commercial Space Transportation

Part 2--Waiver of Claims and Assumption of Responsibility for Licensed 
Reentry

Subpart A--Waiver of Claims and Assumption of Responsibility for 
Licensed Reentry With One Customer

    This Agreement is entered into this ---- day of --------, by and 
among [Licensee] (the ``Licensee''), [Customer] (the ``Customer''), 
and the Federal Aviation Administration of the Department of 
Transportation, on behalf of the United States Government 
(collectively, the ``Parties''), to implement the provisions of 
Sec.  440.17(c) of the Commercial Space Transportation Licensing 
Regulations, 14 CFR Ch. III (the ``Regulations''). This agreement 
applies to the reentry of the [Payload] payload on a [Reentry 
Vehicle] vehicle.
    In consideration of the mutual releases and promises contained 
herein, the Parties hereby agree as follows:

1. Definitions

    Contractors and Subcontractors means entities described in Sec.  
440.3 of the Regulations.
    Customer means the above-named Customer.
    License means License No. ---- issued on --------, by the 
Associate Administrator for Commercial Space Transportation, Federal 
Aviation Administration, Department of Transportation, to the 
Licensee, including all license orders issued in connection with the 
License.
    Licensee means the Licensee and any transferee of the Licensee 
under 51 U.S.C. Subtitle V, ch. 509.
    United States means the United States and its agencies involved 
in Licensed Activities. Except as otherwise defined herein, terms 
used in this Agreement and defined in 51 U.S.C. Subtitle V, ch. 
509--Commercial Space Launch Activities, or in the Regulations, 
shall have the same meaning as contained in 51 U.S.C. Subtitle V, 
ch. 509, or the Regulations, respectively.

2. Waiver and Release of Claims

    (a) Licensee hereby waives and releases claims it may have 
against Customer and the United States, and against their respective 
Contractors and Subcontractors, for Property Damage it sustains and 
for Bodily Injury or Property Damage sustained by its own employees, 
resulting from Licensed Activities, regardless of fault.
    (b) Customer hereby waives and releases claims it may have 
against Licensee and the United States, and against their respective 
Contractors and Subcontractors, for Property Damage it sustains and 
for Bodily Injury or Property Damage sustained by its own employees, 
resulting from Licensed Activities, regardless of fault.
    (c) The United States hereby waives and releases claims it may 
have against Licensee and Customer, and against their respective 
Contractors and Subcontractors, for Property Damage it sustains, and 
for Bodily Injury or Property Damage sustained by its own employees, 
resulting from Licensed Activities, regardless of fault, to the 
extent that claims it would otherwise have for such damage or injury 
exceed the amount of insurance or demonstration of financial 
responsibility required under sections 440.9(c) and (e) of the 
Regulations.

3. Assumption of Responsibility

    (a) Licensee and Customer shall each be responsible for Property 
Damage it sustains and for Bodily Injury or Property Damage 
sustained by its own employees, resulting from Licensed Activities, 
regardless of fault. Licensee and Customer shall each hold harmless 
and indemnify each other, the United States, and the Contractors and 
Subcontractors of each Party, for Bodily Injury or Property Damage 
sustained by its own employees, resulting from Licensed Activities, 
regardless of fault.
    (b) The United States shall be responsible for Property Damage 
it sustains, and for Bodily Injury or Property Damage sustained by 
its own employees, resulting from Licensed Activities, regardless of 
fault, to the extent that claims it would otherwise have for such 
damage or injury exceed the amount of insurance or demonstration of 
financial responsibility required under Sec. Sec.  440.9(c) and (e) 
of the Regulations.

4. Extension of Assumption of Responsibility and Waiver and Release of 
Claims

    (a) Licensee shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(a) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
Customer and the United States, and against the respective 
Contractors and Subcontractors of each, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify Customer and the United States, and the 
respective Contractors and Subcontractors of each, for Bodily Injury 
or Property Damage sustained by their own employees, resulting from 
Licensed Activities, regardless of fault.
    (b) Customer shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(b) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
Licensee and the United States, and against the respective 
Contractors and Subcontractors of each, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify Licensee and the United States, and the 
respective Contractors and Subcontractors of each, for Bodily Injury 
or Property Damage sustained by their own employees, resulting from 
Licensed Activities, regardless of fault.
    (c) The United States shall extend the requirements of the 
waiver and release of claims, and the assumption of responsibility 
as set forth in paragraphs 2(c) and 3(b), respectively, to its 
Contractors and Subcontractors by requiring them to waive and 
release all claims they may have against Licensee and Customer, and 
against the respective Contractors and Subcontractors of each, and 
to agree to be responsible, for any Property Damage they sustain and 
for any Bodily Injury or Property Damage sustained by their own 
employees, resulting from Licensed Activities, regardless of fault, 
to the extent that claims they would otherwise have for such damage 
or injury exceed the amount of insurance or demonstration of 
financial responsibility required under Sec. Sec.  440.9(c) and (e) 
of the Regulations.

5. Indemnification

    (a) Licensee shall hold harmless and indemnify Customer and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them, and the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them, from and against liability, loss or damage arising out of 
claims that Licensee's Contractors and Subcontractors may have for 
Property Damage sustained by them and for Bodily Injury or Property 
Damage sustained by their employees, resulting from Licensed 
Activities.
    (b) Customer shall hold harmless and indemnify Licensee and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them, and the United States and its agencies, 
servants, agents, subsidiaries, employees or assignees, or any of 
them, from and against liability, loss or damage arising out of 
claims that Customer's Contractors and Subcontractors may have for 
Property Damage sustained by them and for Bodily Injury or Property 
Damage sustained by their employees, resulting from Licensed 
Activities.
    (c) To the extent provided in advance in an appropriations law 
or to the extent there is enacted additional legislative authority 
providing for the payment of claims, the United States shall hold 
harmless and indemnify Licensee and Customer and their respective 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them, from and against liability, loss or 
damage arising out of claims that Contractors and Subcontractors of 
the United States may have for Property Damage sustained by them, 
and for Bodily Injury or Property Damage sustained by their 
employees, resulting from Licensed Activities, to the extent that 
claims they would otherwise have for such damage or injury exceed 
the amount of insurance or demonstration of financial responsibility 
required under Sec. Sec.  440.9(c) and (e) of the Regulations.

6. Assurances Under 51 U.S.C. 50914(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Licensee shall hold harmless and indemnify the United States and its 
agencies, servants, agents,

[[Page 8634]]

employees and assignees, or any of them, from and against liability, 
loss or damage arising out of claims for Bodily Injury or Property 
Damage, resulting from Licensed Activities, regardless of fault, 
except to the extent that: (i) As provided in section 7(b) of this 
Agreement, claims result from willful misconduct of the United 
States or its agents; (ii) claims for Property Damage sustained by 
the United States or its Contractors and Subcontractors exceed the 
amount of insurance or demonstration of financial responsibility 
required under Sec.  440.9(e) of the Regulations; (iii) claims by a 
Third Party for Bodily Injury or Property Damage exceed the amount 
of insurance or demonstration of financial responsibility required 
under Sec.  440.9(c) of the Regulations, and do not exceed 
$1,500,000,000 (as adjusted for inflation after January 1, 1989) 
above such amount, and are payable pursuant to the provisions of 51 
U.S.C. 50915 and Sec.  440.19 of the Regulations; or (iv) Licensee 
has no liability for claims exceeding $1,500,000,000 (as adjusted 
for inflation after January 1, 1989) above the amount of insurance 
or demonstration of financial responsibility required under Sec.  
440.9(c) of the Regulations.

7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by Licensee, Customer or the United States of any claim by 
an employee of the Licensee, Customer or the United States, 
respectively, including a member of the Armed Forces of the United 
States, for Bodily Injury or Property Damage, resulting from 
Licensed Activities.
    (b) Notwithstanding any provision of this Agreement to the 
contrary, any waiver, release, assumption of responsibility or 
agreement to hold harmless and indemnify herein shall not apply to 
claims for Bodily Injury or Property Damage resulting from willful 
misconduct of any of the Parties, the Contractors and Subcontractors 
of any of the Parties, and in the case of Licensee and Customer and 
the Contractors and Subcontractors of each of them, the directors, 
officers, agents and employees of any of the foregoing, and in the 
case of the United States, its agents.
    (c) This Agreement shall be governed by and construed in 
accordance with United States Federal law.
    In Witness Whereof, the Parties to this Agreement have caused 
the Agreement to be duly executed by their respective duly 
authorized representatives as of the date written above.

Licensee
By:--------------------------------------------------------------------
Its:-------------------------------------------------------------------

Customer
By:--------------------------------------------------------------------
Its:-------------------------------------------------------------------

Federal Aviation Administration of the Department of Transportation 
on Behalf of the United States Government
By:--------------------------------------------------------------------
Its:-------------------------------------------------------------------


Associate Administrator for Commercial Space Transportation

Subpart B--Waiver of Claims and Assumption of Responsibility for 
Licensed Reentry With More Than One Customer

    This agreement is entered into this ---- day of --------, by and 
among [Licensee] (the ``Licensee''); [List of Customers] (with [List 
of Customers] hereinafter referred to in their individual capacity 
as ``Customer''); and the Federal Aviation Administration of the 
Department of Transportation, on behalf of the United States 
Government (collectively, the ``Parties''), to implement the 
provisions of section 440.17(c) of the Commercial Space 
Transportation Licensing Regulations, 14 CFR Ch. III (the 
``Regulations''). This agreement applies to the reentry of [Payload] 
payload on a [Reentry Vehicle] vehicle.
    In consideration of the mutual releases and promises contained 
herein, the Parties hereby agree as follows:

1. Definitions

    Contractors and Subcontractors means entities described in Sec.  
440.3 of the Regulations.
    Customer means each above-named Customer.
    License means License No. ---- issued on --------, by the 
Associate Administrator for Commercial Space Transportation, Federal 
Aviation Administration, Department of Transportation, to the 
Licensee, including all license orders issued in connection with the 
License.
    Licensee means the Licensee and any transferee of the Licensee 
under 51 U.S.C. Subtitle V, ch. 509.
    United States means the United States and its agencies involved 
in Licensed Activities. Except as otherwise defined herein, terms 
used in this Agreement and defined in 51 U.S.C. Subtitle V, ch. 
509--Commercial Space Launch Activities, or in the Regulations, 
shall have the same meaning as contained in 51 U.S.C. Subtitle V, 
ch. 509, or the Regulations, respectively.

2. Waiver and Release of Claims

    (a) Licensee hereby waives and releases claims it may have 
against each Customer and the United States, and against their 
respective Contractors and Subcontractors, for Property Damage it 
sustains and for Bodily Injury or Property Damage sustained by its 
own employees, resulting from Licensed Activities, regardless of 
fault.
    (b) Each Customer hereby waives and releases claims it may have 
against each other Customer, the Licensee and the United States, and 
against their respective Contractors and Subcontractors, for 
Property Damage it sustains and for Bodily Injury or Property Damage 
sustained by its own employees, resulting from Licensed Activities, 
regardless of fault.
    (c) The United States hereby waives and releases claims it may 
have against Licensee and each Customer, and against their 
respective Contractors and Subcontractors, for Property Damage it 
sustains, and for Bodily Injury or Property Damage sustained by its 
own employees, resulting from Licensed Activities, regardless of 
fault, to the extent that claims it would otherwise have for such 
damage or injury exceed the amount of insurance or demonstration of 
financial responsibility required under sections 440.9(c) and (e), 
respectively, of the Regulations.

3. Assumption of Responsibility

    (a) Licensee and each Customer shall each be responsible for 
Property Damage it sustains and for Bodily Injury or Property Damage 
sustained by its own employees, resulting from Licensed Activities, 
regardless of fault. Licensee and each Customer shall each hold 
harmless and indemnify each other, the United States, and the 
Contractors and Subcontractors of each Party, for Bodily Injury or 
Property Damage sustained by its own employees, resulting from 
Licensed Activities, regardless of fault.
    (b) The United States shall be responsible for Property Damage 
it sustains, and for Bodily Injury or Property Damage sustained by 
its own employees, resulting from Licensed Activities, regardless of 
fault, to the extent that claims it would otherwise have for such 
damage or injury exceed the amount of insurance or demonstration of 
financial responsibility required under sections 440.9(c) and (e), 
respectively, of the Regulations.

4. Extension of Assumption of Responsibility and Waiver and Release of 
Claims

    (a) Licensee shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(a) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
each Customer and the United States, and against the respective 
Contractors and Subcontractors of each, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify each Customer and the United States, and 
the respective Contractors and Subcontractors of each, for Bodily 
Injury or Property Damage sustained by their own employees, 
resulting from Licensed Activities, regardless of fault.
    (b) Each Customer shall extend the requirements of the waiver 
and release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(b) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
Licensee, each other Customer and the United States, and against the 
respective Contractors and Subcontractors of each, and to agree to 
be responsible, for Property Damage they sustain and to be 
responsible, hold harmless and indemnify Licensee, each other 
Customer and the United States, and the respective Contractors and 
Subcontractors of each, for Bodily Injury or Property Damage 
sustained by their own employees, resulting from Licensed 
Activities, regardless of fault.
    (c) The United States shall extend the requirements of the 
waiver and release of claims, and the assumption of responsibility 
as set forth in paragraphs 2(c) and 3(b), respectively, to its 
Contractors and Subcontractors by requiring them to waive and 
release all claims they may have against Licensee and each Customer, 
and against the respective Contractors and Subcontractors of

[[Page 8635]]

each, and to agree to be responsible, for any Property Damage they 
sustain and for any Bodily Injury or Property Damage sustained by 
their own employees, resulting from Licensed Activities, regardless 
of fault, to the extent that claims they would otherwise have for 
such damage or injury exceed the amount of insurance or 
demonstration of financial responsibility required under sections 
440.9(c) and (e), respectively, of the Regulations.

5. Indemnification

    (a) Licensee shall hold harmless and indemnify each Customer and 
its directors, officers, servants, agents, subsidiaries, employees 
and assignees, or any of them, and the United States and its 
agencies, servants, agents, subsidiaries, employees and assignees, 
or any of them, from and against liability, loss or damage arising 
out of claims that Licensee's Contractors and Subcontractors may 
have for Property Damage sustained by them and for Bodily Injury or 
Property Damage sustained by their employees, resulting from 
Licensed Activities.
    (b) Each Customer shall hold harmless and indemnify each other 
Customer and its directors, officers, servants, agents, 
subsidiaries, employees and assignees, or any of them, and the 
Licensee and its directors, officers, servants, agents, 
subsidiaries, employees and assignees, or any of them, and the 
United States and its agencies, servants, agents, subsidiaries, 
employees and assignees, or any of them, from and against liability, 
loss or damage arising out of claims that the first-named Customer's 
Contractors and Subcontractors may have for Property Damage 
sustained by them and for Bodily Injury or Property Damage sustained 
by their employees, resulting from Licensed Activities.
    (c) To the extent provided in advance in an appropriations law 
or to the extent there is enacted additional legislative authority 
providing for the payment of claims, the United States shall hold 
harmless and indemnify Licensee and each Customer and their 
respective directors, officers, servants, agents, subsidiaries, 
employees and assignees, or any of them, from and against liability, 
loss or damage arising out of claims that Contractors and 
Subcontractors of the United States may have for Property Damage 
sustained by them, and for Bodily Injury or Property Damage 
sustained by their employees, resulting from Licensed Activities, to 
the extent that claims they would otherwise have for such damage or 
injury exceed the amount of insurance or demonstration of financial 
responsibility required under sections 440.9(c) and (e), 
respectively, of the Regulations.

6. Assurances Under 51 U.S.C. 50914(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Licensee shall hold harmless and indemnify the United States and its 
agencies, servants, agents, employees and assignees, or any of them, 
from and against liability, loss or damage arising out of claims for 
Bodily Injury or Property Damage, resulting from Licensed 
Activities, regardless of fault, except to the extent that: (i) As 
provided in section 7(b) of this Agreement, claims result from 
willful misconduct of the United States or its agents; (ii) claims 
for Property Damage sustained by the United States or its 
Contractors and Subcontractors exceed the amount of insurance or 
demonstration of financial responsibility required under section 
440.9(e) of the Regulations; (iii) claims by a Third Party for 
Bodily Injury or Property Damage exceed the amount of insurance or 
demonstration of financial responsibility required under section 
440.9(c) of the Regulations, and do not exceed $1,500,000,000 (as 
adjusted for inflation after January 1, 1989) above such amount, and 
are payable pursuant to the provisions of 51 U.S.C. 50915 and 
section 440.19 of the Regulations; or (iv) Licensee has no liability 
for claims exceeding $1,500,000,000 (as adjusted for inflation after 
January 1, 1989) above the amount of insurance or demonstration of 
financial responsibility required under section 440.9(c) of the 
Regulations.

7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by Licensee, any Customer or the United States of any claim 
by an employee of the Licensee, any Customer or the United States, 
respectively, including a member of the Armed Forces of the United 
States, for Bodily Injury or Property Damage, resulting from 
Licensed Activities.
    (b) Notwithstanding any provision of this Agreement to the 
contrary, any waiver, release, assumption of responsibility or 
agreement to hold harmless and indemnify herein shall not apply to 
claims for Bodily Injury or Property Damage resulting from willful 
misconduct of any of the Parties, the Contractors and Subcontractors 
of any of the Parties, and in the case of Licensee and each Customer 
and the Contractors and Subcontractors of each of them, the 
directors, officers, agents and employees of any of the foregoing, 
and in the case of the United States, its agents.
    (c) References herein to Customer shall apply to, and be deemed 
to include, each such customer severally and not jointly.
    (d) This Agreement shall be governed by and construed in 
accordance with United States Federal law.
    In witness whereof, the Parties to this Agreement have caused 
the Agreement to be duly executed by their respective duly 
authorized representatives as of the date written above.

Licensee
By:--------------------------------------------------------------------
Its:-------------------------------------------------------------------

Customer 1
By:--------------------------------------------------------------------
Its:-------------------------------------------------------------------
[Signature lines for each additional customer]

Federal Aviation Administration of the Department of Transportation 
on Behalf of the United States Government
By:--------------------------------------------------------------------
Its:-------------------------------------------------------------------
Associate Administrator for Commercial Space Transportation


0
4. Revise Appendix C to part 440 to read as follows:

Appendix C to Part 440--Agreement for Waiver of Claims and Assumption 
of Responsibility for Permitted Activities

Part 1--Waiver of Claims and Assumption of Responsibility for Permitted 
Activities With One Customer

    This agreement is entered into this ---- day of --------, by and 
among [Permittee] (the ``Permittee''), [Customer] (the ``Customer'') 
and the Federal Aviation Administration of the Department of 
Transportation, on behalf of the United States Government 
(collectively, the ``Parties''), to implement the provisions of 
section 440.17(c) of the Commercial Space Transportation Licensing 
Regulations, 14 CFR Ch. III (the ``Regulations''). This agreement 
applies to [describe permitted activity]. In consideration of the 
mutual releases and promises contained herein, the Parties hereby 
agree as follows:

1. Definitions

    Customer means the above-named Customer.
    Permit means Permit No. ---- issued on --------, by the 
Associate Administrator for Commercial Space Transportation, Federal 
Aviation Administration, Department of Transportation, to the 
Permittee, including all permit orders issued in connection with the 
Permit.
    Permittee means the holder of the Permit issued under 51 U.S.C. 
Subtitle V, ch. 509.
    United States means the United States and its agencies involved 
in Permitted Activities.
    Except as otherwise defined herein, terms used in this Agreement 
and defined in 51 U.S.C. Subtitle V, ch. 509--Commercial Space 
Launch Activities, or in the Regulations, shall have the same 
meaning as contained in 51 U.S.C. Subtitle V, ch. 509, or the 
Regulations, respectively.

2. Waiver and Release of Claims

    (a) Permittee hereby waives and releases claims it may have 
against Customer and the United States, and against their respective 
Contractors and Subcontractors, for Property Damage it sustains and 
for Bodily Injury or Property Damage sustained by its own employees, 
resulting from Permitted Activities, regardless of fault.
    (b) Customer hereby waives and releases claims it may have 
against Permittee and the United States, and against their 
respective Contractors and Subcontractors, for Property Damage it 
sustains and for Bodily Injury or Property Damage sustained by its 
own employees, resulting from Permitted Activities, regardless of 
fault.
    (c) The United States hereby waives and releases claims it may 
have against Permittee and Customer, and against their respective 
Contractors and Subcontractors, for Property Damage it sustains 
resulting from Permitted Activities, regardless of fault, to the 
extent that claims it would otherwise have for such damage exceed 
the amount of insurance or demonstration of financial responsibility 
required under section 440.9(e) of the Regulations.

3. Assumption of Responsibility

    (a) Permittee and Customer shall each be responsible for 
Property Damage it sustains

[[Page 8636]]

and for Bodily Injury or Property Damage sustained by its own 
employees, resulting from Permitted Activities, regardless of fault. 
Permittee and Customer shall each hold harmless and indemnify each 
other, the United States, and the Contractors and Subcontractors of 
each Party, for Bodily Injury or Property Damage sustained by its 
own employees, resulting from Permitted Activities, regardless of 
fault.
    (b) The United States shall be responsible for Property Damage 
it sustains, resulting from Permitted Activities, regardless of 
fault, to the extent that claims it would otherwise have for such 
damage exceed the amount of insurance or demonstration of financial 
responsibility required under section 440.9(e) of the Regulations.

4. Extension of Assumption of Responsibility and Waiver and Release 
of Claims

    (a) Permittee shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(a) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
Customer and the United States, and against the respective 
Contractors and Subcontractors of each, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify Customer and the United States, and the 
respective Contractors and Subcontractors of each, for Bodily Injury 
or Property Damage sustained by their own employees, resulting from 
Permitted Activities, regardless of fault.
    (b) Customer shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(b) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
Permittee and the United States, and against the respective 
Contractors and Subcontractors of each, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify Permittee and the United States, and the 
respective Contractors and Subcontractors of each, for Bodily Injury 
or Property Damage sustained by their own employees, resulting from 
Permitted Activities, regardless of fault.
    (c) The United States shall extend the requirements of the 
waiver and release of claims, and the assumption of responsibility 
as set forth in paragraphs 2(c) and 3(b), respectively, to its 
Contractors and Subcontractors by requiring them to waive and 
release all claims they may have against Permittee and Customer, and 
against the respective Contractors and Subcontractors of each, and 
to agree to be responsible, for any Property Damage they sustain, 
resulting from Permitted Activities, regardless of fault, to the 
extent that claims they would otherwise have for such damage exceed 
the amount of insurance or demonstration of financial responsibility 
required under section 440.9(e) of the Regulations.

5. Indemnification

    (a) Permittee shall hold harmless and indemnify Customer and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them, and the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them, from and against liability, loss or damage arising out of 
claims that Permittee's Contractors and Subcontractors may have for 
Property Damage sustained by them and for Bodily Injury or Property 
Damage sustained by their employees, resulting from Permitted 
Activities.
    (b) Customer shall hold harmless and indemnify Permittee and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them, and the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them, from and against liability, loss or damage arising out of 
claims that Customer's Contractors and Subcontrac