[Code of Federal Regulations]
[Title 14, Volume 4]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR440.19]

[Page 878-891]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
     CHAPTER III--COMMERCIAL SPACE TRANSPORTATION, FEDERAL AVIATION 
              ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 440_FINANCIAL RESPONSIBILITY--Table of Contents
 
Subpart A_Financial Responsibility for Licensed and Permitted Activities
 
Sec. 440.19  United States payment of excess third-party liability claims.

    (a) The United States pays successful covered claims (including 
reasonable expenses of litigation or settlement) of a third party 
against a licensee, a customer, and the contractors and subcontractors 
of the licensee and the customer, and the employees of each involved in 
licensed activities, and the contractors and subcontractors of the 
United States and its agencies, and their employees, involved in 
licensed activities to the extent provided in an appropriation law or 
other legislative authority providing for payment of claims in 
accordance with 49 U.S.C. 70113, and to the extent the total amount of 
such covered claims arising out of any particular launch or reentry:
    (1) Exceeds the amount of insurance required under Sec. 440.9(b); 
and
    (2) Is not more than $1,500,000,000 (as adjusted for inflation 
occurring after January 1, 1989) above that amount.
    (b) Payment by the United States under paragraph (a) of this section 
shall not be made for any part of such

[[Page 879]]

claims for which bodily injury or property damage results from willful 
misconduct by the party seeking payment.
    (c) The United States shall provide for payment of claims by third 
parties for bodily injury or property damage that are payable under 49 
U.S.C. 70113 and not covered by required insurance under Sec. 440.9(b), 
without regard to the limitation under paragraph (a)(1) of this section, 
because of an insurance policy exclusion that is usual. A policy 
exclusion is considered usual only if insurance covering the excluded 
risk is not commercially available at reasonable rates. The licensee 
must submit a certification in accordance with Sec. 440.15(c)(1)(iii) 
of this part for the United States to cover the claims.
    (d) Upon the expiration of the policy period prescribed in 
accordance with Sec. 440.11(a), the United States shall provide for 
payment of claims that are payable under 49 U.S.C. 70113 from the first 
dollar of loss up to $1,500,000,000 (as adjusted for inflation occurring 
after January 1, 1989).
    (e) Payment by the United States of excess third-party claims under 
49 U.S.C. 70113 shall be subject to:
    (1) Prompt notice by the licensee to the FAA that the total amount 
of claims arising out of licensed activities exceeds, or is likely to 
exceed, the required amount of financial responsibility. For each claim, 
the notice must specify the nature, cause, and amount of the claim or 
lawsuit associated with the claim, and the party or parties who may 
otherwise be liable for payment of the claim;
    (2) Participation or assistance in the defense of the claim or 
lawsuit by the United States, at its election;
    (3) Approval by the FAA of any settlement, or part of a settlement, 
to be paid by the United States; and
    (4) Approval by Congress of a compensation plan prepared by the FAA 
and submitted by the President.
    (f) The FAA will:
    (1) Prepare a compensation plan outlining the total amount of claims 
and meeting the requirements set forth in 49 U.S.C. 70113;
    (2) Recommend sources of funds to pay the claims; and
    (3) Propose legislation as required to implement the plan.
    (g) The FAA may withhold payment of a claim if it finds that the 
amount is unreasonable, unless it is the final order of a court that has 
jurisdiction over the matter.

Appendix A to Part 440--Information Requirements for Obtaining a Maximum 
    Probable Loss Determination for Licensed or Permitted Activities

    Any person requesting a maximum probable loss determination shall 
submit the following information to the FAA, unless the FAA has waived a 
particular information requirement under 14 CFR 440.7(c):

    Part 1: Information Requirements for Licensed Launch, Including 
                            Suborbital Launch

                         I. General Information

    A. Mission description.
    1. A description of mission parameters, including:
    a. Launch trajectory;
    b. Orbital inclination; and
    c. Orbit altitudes (apogee and perigee).
    2. Flight sequence.
    3. Staging events and the time for each event.
    4. Impact locations.
    5. Identification of the launch site facility, including the launch 
complex on the site, planned date of launch, and launch windows.
    6. If the applicant has previously been issued a license or permit 
to conduct activities using the same vehicle from the same launch site, 
a description of any differences planned in the conduct of proposed 
activities.
    B. Launch vehicle description.
    1. General description of the launch vehicle and its stages, 
including dimensions.
    2. Description of major systems, including safety systems.
    3. Description of rocket motors and type of fuel used.
    4. Identification of all propellants to be used and their hazard 
classification under the Hazardous Materials Table, 49 CFR 172.101.
    5. Description of hazardous components.
    C. Payload.
    1. General description of the payload, including type (e.g., 
telecommunications, remote sensing), propellants, and hazardous 
components or materials, such as toxic or radioactive substances.
    D. Flight safety system.
    1. Identification of any flight safety system on the vehicle, 
including a description of operations and component location on the 
vehicle.

[[Page 880]]

                  II. Pre-Flight Processing Operations

    A. General description of pre-flight operations including vehicle 
processing consisting of an operational flow diagram showing the overall 
sequence and location of operations, commencing with arrival of vehicle 
components at the launch site facility through final safety checks and 
countdown sequence, and designation of hazardous operations, as defined 
in 14 CFR 440.3. For purposes of these information requirements, payload 
processing, as opposed to integration, is not a hazardous operation.
    B. For each hazardous operation, including but not limited to 
fueling, solid rocket motor build-up, ordnance installation, ordnance 
checkout, movement of hazardous materials, and payload integration:
    1. Identification of location where each operation will be 
performed, including each building or facility identified by name or 
number.
    2. Identification of facilities adjacent to the location where each 
operation will be performed and therefore exposed to risk, identified by 
name or number.
    3. Maximum number of Government personnel and individuals not 
involved in licensed activities who may be exposed to risk during each 
operation. For Government personnel, identification of his or her 
employer.
    4. Identification of launch site policies or requirements applicable 
to the conduct of operations.

                         III. Flight Operations

    A. Identification of launch site facilities exposed to risk during 
licensed flight.
    B. Identification of accident failure scenarios, probability 
assessments for each, and estimation of risks to Government personnel, 
individuals not involved in licensed activities, and Government 
property, due to property damage or bodily injury. The estimation of 
risks for each scenario shall take into account the number of such 
individuals at risk as a result of lift-off and flight of a launch 
vehicle (on-range, off-range, and down-range) and specific, unique 
facilities exposed to risk. Scenarios shall cover the range of launch 
trajectories, inclinations and orbits for which authorization is sought 
in the license application.
    C. On-orbit risk analysis assessing risks posed by a launch vehicle 
to operational satellites.
    D. Reentry risk analysis assessing risks to Government personnel and 
individuals not involved in licensed activities as a result of 
reentering debris or reentry of the launch vehicle or its components.
    E. Trajectory data as follows: Nominal and 3-sigma lateral 
trajectory data in x, y, z and x (dot), y (dot), z (dot) coordinates in 
one-second intervals, data to be pad-centered with x being along the 
initial launch azimuth and continuing through impact for suborbital 
flights, and continuing through orbital insertion or the end of powered 
flight for orbital flights.
    F. Tumble-turn data for guided vehicles only, as follows: For 
vehicles with gimbaled nozzles, tumble turn data with zeta angles and 
velocity magnitudes stated. A separate table is required for each 
combination of fail times (every two to four seconds), and significant 
nozzle angles (two or more small angles, generally between one and five 
degrees).
    G. Identification of debris lethal areas and the projected number 
and ballistic coefficient of fragments expected to result from flight 
termination, initiated either by command or self-destruct mechanism, for 
lift-off, land overflight, and reentry.

                  IV. Post-Flight Processing Operations

    A. General description of post-flight ground operations including 
overall sequence and location of operations for removal of vehicle 
components and processing equipment from the launch site facility and 
for handling of hazardous materials, and designation of hazardous 
operations.
    B. Identification of all facilities used in conducting post-flight 
processing operations.
    C. For each hazardous operation:
    1. Identification of location where each operation is performed, 
including each building or facility identified by name or number.
    2. Identification of facilities adjacent to location where each 
operation is performed and exposed to risk, identified by name or 
number.
    3. Maximum number of Government personnel and individuals not 
involved in licensed launch activities that may be exposed to risk 
during each operation. For Government personnel, identification of his 
or her employer.
    4. Identification of launch site facility policies or requirements 
applicable to the conduct of operations.

          Part 2: Information Requirements for Licensed Reentry

                         I. General Information

    A. Reentry mission description.
    1. A description of mission parameters, including:
    a. Orbital inclination; and
    b. Orbit altitudes (apogee and perigee).
    c. Reentry trajectories.
    2. Reentry flight sequences.
    3. Reentry initiation events and the time for each event.
    4. Nominal landing location, alternative landing sites and 
contingency abort sites.
    5. Identification of landing facilities, (planned date of reentry), 
and reentry windows.

[[Page 881]]

    6. If the applicant has previously been issued a license or permit 
to conduct reentry activities using the same reentry vehicle to the same 
reentry site facility, a description of any differences planned in the 
conduct of proposed activities.
    B. Reentry vehicle description.
    1. General description of the reentry vehicle, including dimensions.
    2. Description of major systems, including safety systems.
    3. Description of propulsion system (reentry initiation system) and 
type of fuel used.
    4. Identification of all propellants to be used and their hazard 
classification under the Hazardous Materials Table, 49 CFR 172.101.
    5. Description of hazardous components.
    C. Payload.
    1. General description of any payload, including type (e.g., 
telecommunications, remote sensing), propellants, and hazardous 
components or materials, such as toxic or radioactive substances.
    D. Flight Safety System.
    1. Identification of any flight safety system on the reentry 
vehicle, including a description of operations and component location on 
the vehicle.

                          II. Flight Operations

    A. Identification of reentry site facilities exposed to risk during 
vehicle reentry and landing.
    B. Identification of accident failure scenarios, probability 
assessments for each, and estimation of risks to Government personnel, 
individuals not involved in licensed reentry, and Government property, 
due to property damage or bodily injury. The estimation of risks for 
each scenario shall take into account the number of such individuals at 
risk as a result of reentry (flight) and landing of a reentry vehicle 
(on-range, off-range, and down-range) and specific, unique facilities 
exposed to risk. Scenarios shall cover the range of reentry trajectories 
for which authorization is sought.
    C. On-orbit risk analysis assessing risks posed by a reentry vehicle 
to operational satellites during reentry.
    D. Reentry risk analysis assessing risks to Government personnel and 
individuals not involved in licensed activities as a result of 
inadvertent or random reentry of the launch vehicle or its components.
    E. Nominal and 3-sigma dispersed trajectories in one-second 
intervals, from reentry initiation through landing or impact. 
(Coordinate system will be specified on a case-by-case basis)
    F. Three-sigma landing or impact dispersion area in downrange 
() and crossrange
    () measured from the nominal and contingency 
landing or impact target. The applicant is responsible for including all 
significant landing or impact dispersion constituents in the 
computations of landing or impact dispersion areas. The dispersion 
constituents should include, but not be limited to: Variation in orbital 
position and velocity at the reentry initiation time; variation in re-
entry initiation time offsets, either early or late; variation in the 
bodies' ballistic coefficient; position and velocity variation due to 
winds; and variations in re-entry retro-maneuvers.
    G. Malfunction turn data (tumble, trim) for guided (controllable) 
vehicles. The malfunction turn data shall include the total angle turned 
by the velocity vector versus turn duration time at one second 
intervals; the magnitude of the velocity vector versus turn duration 
time at one second intervals; and an indication on the data where the 
re-entry body will impact the Earth, or breakup due to aerodynamic 
loads. A malfunction turn data set is required for each malfunction 
time. Malfunction turn start times shall not exceed four-second 
intervals along the trajectory.
    H. Identification of debris casualty areas and the projected number 
and ballistic coefficient of fragments expected to result from each 
failure mode during reentry, including random reentry.

                 III. Post-Flight Processing Operations

    A. General description of post-flight ground operations including 
overall sequence and location of operations for removal of vehicle and 
components and processing equipment from the reentry site facility and 
for handling of hazardous materials, and designation of hazardous 
operations.
    B. Identification of all facilities used in conducting post-flight 
processing operations.
    C. For each hazardous operation:
    1. Identification of location where each operation is performed, 
including each building or facility identified by name or number.
    2. Identification of facilities adjacent to location where each 
operation is performed and exposed to risk, identified by name or 
number.
    3. Maximum number of Government personnel and individuals not 
involved in licensed reentry activities who may be exposed to risk 
during each operation. For Government personnel, identification of his 
or her employer.
    4. Identify and provide reentry site facility policies or 
requirements applicable to the conduct of operations.

        Part 3: Information Requirements for Permitted Activities

    In addition to the information required in part 437 subpart B, an 
applicant for an experimental permit must provide, for each permitted 
pre-flight and post-flight operation, the following information to the 
FAA:

[[Page 882]]

    A. Identification of location where each operation will be 
performed, including any U.S. Government or third party facilities 
identified by name or number.
    B. Identification of any U.S. Government or third party facilities 
adjacent to the location where each operation will be performed and 
therefore exposed to risk, identified by name or number.
    C. Maximum number of Government personnel and individuals not 
involved in permitted activities that may be exposed to risk during each 
operation. For Government personnel, identification of his or her 
employer.

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

    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 on behalf of the Customer 
and any person described in Sec. 440.3 of the Regulations.
    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 
49 U.S.C. Subtitle IX, ch. 701.
    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 49 U.S.C. Subtitle IX, ch. 701--Commercial Space Launch 
Activities, or in the Regulations, shall have the same meaning as 
contained in 49 U.S.C. Subtitle IX, ch. 701, 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

[[Page 883]]

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 
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, or any person on whose behalf 
Customer enters into this Agreement, 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 49 U.S.C. 70112(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 49 U.S.C. 
70113 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

[[Page 884]]

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) In the event that more than one customer is involved in Licensed 
Activities, 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

 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

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

    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 on behalf of the Customer 
and any person described in Sec. 440.3 of the Regulations.
    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 
49 U.S.C. Subtitle IX, ch. 701.
    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 49 U.S.C. Subtitle IX, ch. 701--Commercial Space Launch 
Activities, or in the Regulations, shall have the same meaning as 
contained in 49 U.S.C. Subtitle IX, ch. 701, 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

[[Page 885]]

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 assignees, or any of them, 
from and against liability, loss or damage arising out of claims that 
Customer's Contractors and Subcontractors, or any person on whose behalf 
Customer enters into this Agreement, 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

[[Page 886]]

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 49 U.S.C. 70112(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 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 49 U.S.C. 
70113 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) In the event that more than one customer is involved in Licensed 
Activities, 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

 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

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

    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 on behalf of the Customer 
and any person described in Sec. 440.3 of the Regulations.
    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 49 U.S.C. 
Subtitle IX, ch. 701.
    United States means the United States and its agencies involved in 
Permitted Activities.

[[Page 887]]

    Except as otherwise defined herein, terms used in this Agreement and 
defined in 49 U.S.C. Subtitle IX, ch. 701--Commercial Space Launch 
Activities, or in the Regulations, shall have the same meaning as 
contained in 49 U.S.C. Subtitle IX, ch. 701, 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 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

[[Page 888]]

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, or any person on whose behalf 
Customer enters into this Agreement, may have for Property Damage 
sustained by them and for Bodily Injury or Property Damage sustained by 
their employees, resulting from Permitted Activities.

                 6. Assurances Under 49 U.S.C. 70112(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Permittee 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 Permitted Activities, 
regardless of fault, except to the extent that it is provided in section 
7(b) of this Agreement, except to the extent that claims (i) result from 
willful misconduct of the United States or its agents and (ii) 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.

                            7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by Permittee, Customer or the United States of any claim by an 
employee of the Permittee, 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 Permitted 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 Permittee 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) In the event that more than one customer is involved in 
Permitted Activities, 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.

                                Permittee

 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

Appendix D to Part 440--Agreement for Waiver of Claims and Assumption of 
                    Responsibility for a Crew Member

    THIS AGREEMENT is entered into this ---- day of --------, by and 
among [name of Crew Member] (the ``Crew Member'') 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(f) of the Commercial Space 
Transportation Licensing Regulations, 14 CFR Ch. III (the 
``Regulations''). This agreement applies to the Crew Member's 
participation in activities that the FAA has authorized by license or 
permit during the Crew Member's employment with [Name of licensee or 
permittee].
    In consideration of the mutual releases and promises contained 
herein, the Parties hereby agree as follows:

                             1. Definitions

    Crew Member means
    (a) The above-named Crew Member,
    (b) All the heirs, administrators, executors, assignees, next of 
kin, and estate of the above-named Crew Member, and
    (c) Anyone who attempts to bring a claim on behalf of the Crew 
Member or for damage or harm arising out of the Bodily Injury, including 
Death, of the Crew Member.
    License/Permit means License/Permit No. -------- issued on --------, 
by the Associate Administrator for Commercial Space Transportation, 
Federal Aviation Administration, Department of Transportation, to the 
Licensee/Permittee, including all license/permit orders issued in 
connection with the License/Permit.

[[Page 889]]

    Licensee/Permittee means the Licensee/Permittee and any transferee 
of the Licensee under 49 U.S.C. Subtitle IX, ch. 701.
    United States means the United States and its agencies involved in 
Licensed/Permitted Activities.
    Except as otherwise defined herein, terms used in this Agreement and 
defined in 49 U.S.C. Subtitle IX, ch. 701--Commercial Space Launch 
Activities, or in the Regulations, shall have the same meaning as 
contained in 49 U.S.C. Subtitle IX, ch. 701, or the Regulations, 
respectively.

                     2. Waiver and Release of Claims

    (a) Crew Member hereby waives and releases claims it may have 
against the United States, and against its respective Contractors and 
Subcontractors, for Bodily Injury, including Death, or Property Damage 
sustained by Crew Member, resulting from Licensed/Permitted Activities, 
regardless of fault.
    (b) The United States hereby waives and releases claims it may have 
against the Crew Member for Property Damage it sustains, and for Bodily 
Injury, including Death, or Property Damage sustained by its own 
employees, resulting from Licensed/Permitted Activities, regardless of 
fault.

                     3. Assumption of Responsibility

    (a) The Crew Member shall be responsible for Bodily Injury, 
including Death, or Property Damage sustained by Crew Member, resulting 
from Licensed/Permitted Activities, regardless of fault. The Crew Member 
shall hold harmless the United States, and the Contractors and 
Subcontractors of each Party, for Bodily Injury, including Death, or 
Property Damage sustained by Crew Member, resulting from Licensed/
Permitted Activities, regardless of fault.
    (b) The United States shall be responsible for Property Damage it 
sustains, and for Bodily Injury, including Death, 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.
    (c) 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) 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(b) and 3(b), respectively, to its Contractors and 
Subcontractors by requiring them to waive and release all claims they 
may have against Crew Member and to agree to be responsible, for any 
Property Damage the Contractors and Subcontractors sustain and for any 
Bodily Injury, including Death, or Property Damage sustained by their 
own employees, resulting from Licensed Activities, regardless of fault.
    (b) 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(b) and 3(c), respectively, to its Contractors and 
Subcontractors by requiring them to waive and release all claims the 
Contractors and Subcontractors may have against Crew Member and to agree 
to be responsible, for any Property Damage they sustain, resulting from 
Permitted Activities, regardless of fault.

                           5. Indemnification

    Crew Member shall hold harmless and indemnify 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 brought by anyone for Property Damage or Bodily Injury, 
including Death, sustained by Crew Member, resulting from Licensed/
Permitted Activities.

                 6. Assurances Under 49 U.S.C. 70112(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Crew Member shall hold harmless 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, including Death, or Property Damage, sustained by Crew Member, 
resulting from Licensed/Permitted Activities, regardless of fault, 
except to the extent that, as provided in section 6(b) of this 
Agreement, claims result from willful misconduct of the United States or 
its agents.

                            7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by the United States of any claim by an employee of the United 
States, respectively, including a member of the Armed Forces of the 
United States, for Bodily Injury or Property Damage, resulting from 
Licensed/Permitted Activities.

[[Page 890]]

    (b) Notwithstanding any provision of this Agreement to the contrary, 
any waiver, release, assumption of responsibility or agreement to hold 
harmless herein shall not apply to claims for Bodily Injury, including 
Death, 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 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.
    I [name of Crew Member] have read and understand this agreement and 
agree that I am bound by it.

                               Crew Member

 Signature:_____________________________________________________________
 Printed Name:__________________________________________________________

 Federal Aviation Administration of the Department of Transportation on 
                 Behalf of the United States Government

 By:____________________________________________________________________
 Its:___________________________________________________________________

       Associate Administrator for Commercial Space Transportation

Appendix E to Part 440--Agreement for Waiver of Claims and Assumption of 
              Responsibility for a Space Flight Participant

    THIS AGREEMENT is entered into this ---- day of --------, by and 
among [name of Space Flight Participant] (the ``Space Flight 
Participant'') 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(e) of the Commercial Space Transportation Licensing Regulations, 
14 CFR Ch. III (the ``Regulations''). This agreement applies to Space 
Flight Participant's travel on [name of launch or reentry vehicle] of 
[name of Licensee or Permittee]. In consideration of the mutual releases 
and promises contained herein, the Parties hereby agree as follows:

                             1. Definitions

    Space Flight Participant means
    (a) The above-named Space Flight Participant,
    (b) All the heirs, administrators, executors, assignees, next of 
kin, and estate of the above-named Space Flight Participant , and
    (c) Anyone who attempts to bring a claim on behalf of the Space 
Flight Participant or for damage or harm arising out of the Bodily 
Injury, including Death, of the Space Flight Participant.
    License/Permit means License/Permit No.-------- issued on --------, 
by the Associate Administrator for Commercial Space Transportation, 
Federal Aviation Administration, Department of Transportation, to the 
Licensee/Permittee, including all license/permit orders issued in 
connection with the License/Permit.
    Licensee/Permittee means the Licensee/Permittee and any transferee 
of the Licensee under 49 U.S.C. Subtitle IX, ch. 701.
    United States means the United States and its agencies involved in 
Licensed/Permitted Activities.
    Except as otherwise defined herein, terms used in this Agreement and 
defined in 49 U.S.C. Subtitle IX, ch. 701--Commercial Space Launch 
Activities, or in the Regulations, shall have the same meaning as 
contained in 49 U.S.C. Subtitle IX, ch. 701, or the Regulations, 
respectively.

                     2. Waiver and Release of Claims

    (a) Space Flight Participant hereby waives and releases claims it 
may have against the United States, and against its respective 
Contractors and Subcontractors, for Bodily Injury, including Death, or 
Property Damage sustained by Space Flight Participant, resulting from 
Licensed/Permitted Activities, regardless of fault.
    (b) The United States hereby waives and releases claims it may have 
against Space Flight Participant for Property Damage it sustains, and 
for Bodily Injury, including Death, or Property Damage sustained by its 
own employees, resulting from Licensed/Permitted Activities, regardless 
of fault.

                     3. Assumption of Responsibility

    (a) Space Flight Participant shall be responsible for Bodily Injury, 
including Death, or Property Damage sustained by the Space Flight 
Participant resulting from Licensed/Permitted Activities, regardless of 
fault. Space Flight Participant shall hold harmless the United States, 
and its Contractors and Subcontractors, for Bodily Injury, including 
Death, or Property Damage sustained by Space Flight Participant from 
Licensed/Permitted Activities, regardless of fault.
    (b) The United States shall be responsible for Property Damage it 
sustains, and for Bodily Injury, including Death, 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.

[[Page 891]]

    (c) 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) 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(b) and 3(b), respectively, to its Contractors and 
Subcontractors by requiring them to waive and release all claims they 
may have against Space Flight Participant, and to agree to be 
responsible, for any Property Damage they sustain and for any Bodily 
Injury, including Death, or Property Damage sustained by their own 
employees, resulting from Licensed Activities, regardless of fault.
    (b) 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(b) and 3(c), respectively, to its Contractors and 
Subcontractors by requiring them to waive and release all claims they 
may have against Space Flight Participant, and to agree to be 
responsible, for any Property Damage the Contractors and Subcontractors 
sustain, resulting from Permitted Activities, regardless of fault.

                           5. Indemnification

    Space Flight Participant shall hold harmless and indemnify 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 brought by anyone for Property 
Damage or Bodily Injury, including Death, sustained by Space Flight 
Participant, resulting from Licensed/Permitted Activities.

                 6. Assurances Under 49 U.S.C. 70112(e)

    Notwithstanding any provision of this Agreement to the contrary, 
Space Flight Participant shall hold harmless 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, including Death, or Property Damage, sustained by Space 
Flight Participant, resulting from Licensed/Permitted Activities, 
regardless of fault, except to the extent that, as provided in section 
6(b) of this Agreement, claims result from willful misconduct of the 
United States or its agents.

                            7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by the United States of any claim by an employee the United 
States, respectively, including a member of the Armed Forces of the 
United States, for Bodily Injury or Property Damage, resulting from 
Licensed/Permitted Activities.
    (b) Notwithstanding any provision of this Agreement to the contrary, 
any waiver, release, assumption of responsibility or agreement to hold 
harmless herein shall not apply to claims for Bodily Injury, including 
Death, or Property Damage resulting from willful misconduct of any of 
the Parties, the Contractors, Subcontractors, and agents of the United 
States, and Space Flight Participant.
    (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.
    I [name of Space Flight Participant] have read and understand this 
agreement and agree that I am bound by it.

                        Space Flight Participant

 Signature:_____________________________________________________________
 Printed Name:__________________________________________________________

 Federal Aviation Administration of the Department of Transportation on 
                 Behalf of the United States Government

 By:____________________________________________________________________
 Its:___________________________________________________________________

       Associate Administrator for Commercial Space Transportation

                        PARTS 441-459 [RESERVED]