
[Federal Register Volume 81, Number 160 (Thursday, August 18, 2016)]
[Rules and Regulations]
[Pages 55115-55133]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18765]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 440

[Docket No.: FAA-2014-1012; Amdt. No. 440-4]
RIN 2120-AK44


Reciprocal Waivers of Claims for Licensed or Permitted Launch and 
Reentry Activities

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The FAA is amending its commercial space regulations governing 
reciprocal waivers of claims to require that customers waive claims 
against all the customers involved in a launch or reentry, including 
those signing a different set of reciprocal waivers. Also, customers of 
a customer contracting directly with a licensee or permittee will not 
have to sign a waiver directly with the licensee or permittee, other 
customers, or the FAA. The FAA is also adding an appendix to provide 
permittees with an example of a Waiver of Claims and Assumption of 
Responsibility for Permitted Activities with No Customer.

[[Page 55116]]


DATES: Effective October 17, 2016.

ADDRESSES: For information on where to obtain copies of rulemaking 
documents and other information related to this final rule, see ``How 
To Obtain Additional Information'' in the SUPPLEMENTARY INFORMATION 
section of this document.

FOR FURTHER INFORMATION CONTACT: For questions concerning this rule, 
contact Shirley McBride, Regulations Program Lead, AST-300, Office of 
Commercial Space Transportation, Federal Aviation Administration, 800 
Independence Avenue SW., Washington, DC 20591; telephone (202) 267-
7470; email Shirley.McBride@faa.gov.

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking

    The Commercial Space Launch Act of 1984, as amended at 51 U.S.C. 
50901-50923 (Chapter 509), authorizes the Department of Transportation 
and thus the FAA, through delegations, to oversee, license, and 
regulate commercial launch and reentry activities, and the operation of 
launch and reentry sites as carried out by U.S. citizens or within the 
United States. 51 U.S.C. 50904, 50905. The Act directs the FAA to 
exercise this responsibility consistent with public health and safety, 
safety of property, and the national security and foreign policy 
interests of the United States. 51 U.S.C. 50905. Section 50901(a)(7) 
directs the FAA to regulate only to the extent necessary, in relevant 
part, to protect the public health and safety and safety of property. 
The FAA is also responsible for encouraging, facilitating, and 
promoting commercial space launches by the private sector. 51 U.S.C. 
50903.
    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).

I. Overview of Final Rule

    This rule revises part 440 in the following ways: (1) Amends Sec.  
440.17 to describe fully the reciprocal waiver of claims requirements 
applicable to the relevant appendices; (2) amends Sec.  440.17 and 
updates appendices B and C so that customers of any customer 
contracting directly with a licensee or permittee do not have to sign a 
waiver directly with the licensee or permittee, other customers, or the 
FAA; (3) amends Sec.  440.17 and updates appendices B and C of part 440 
so that customers waive claims, as required by statute, against all the 
customers involved in the launch or reentry, including those signing a 
different set of reciprocal waivers; (4) amends Sec.  440.3 to add a 
definition of ``first-tier customer'' and ``part 440 customer''; and 
(5) adds an appendix to provide licensees with an example of a Waiver 
of Claims and Assumption of Responsibility for Permitted Activities 
with No Customer.
    These changes will result in cost savings to the licensee, 
government and customers, and minimal cost to any customer in a direct 
contractual relationship with the licensee or permittee if it has 
customers to the launch. This rule does not address changes to the 
reciprocal waiver of claims created by the U.S. Commercial Space Launch 
Competitiveness Act, P.L. 114-90 (2015). Those changes will be 
addressed by a future rulemaking.

II. Background

    On January 13, 2015, the FAA published a notice of proposed 
rulemaking (NPRM), ``Reciprocal Waivers of Claims for Licensed or 
Permitted Launch and Reentry Activities,'' 80 FR 1590, proposing to 
amend the FAA's regulations regarding reciprocal waivers of claims 
agreements. The NPRM also discussed the potential burden the reciprocal 
waivers of claims requirements may impose on licensees and permittees 
launching hosted payloads. The comment period closed on March 16, 2015. 
On June 15, 2015, the FAA reopened the comment period for 30 days 
because the regulatory evaluation was not posted to the docket prior to 
the close of the NPRM's comment period. This second comment period was 
limited to comments on the regulatory evaluation only, and closed on 
July 15, 2015. The FAA received five comments on the NPRM and no 
comments on the regulatory evaluation.

III. Discussion of Final Rule and Public Comments

    The FAA received comments from five entities, including launch 
operators, service providers, and one individual. Launch operators who 
provided comments are Blue Origin, LLC (Blue Origin), Lockheed Martin 
Corporation (Lockheed), and Space Exploration Technologies Corporation 
(SpaceX). Harris Corporation (Harris) and an individual also commented.
    In general, the commenters supported the proposed requirements. A 
few commenters suggested changes to the proposed regulatory text in 
order to achieve the FAA's proposed outcome. After careful 
consideration of the comments, the FAA generally adopts the provisions 
as proposed, but makes the following changes. The FAA amends Sec.  
440.17(b) and (c) and part 440, appendices B and C, to include part 440 
customers and their contractors and subcontractors in the reciprocal 
waiver of claims scheme. The FAA adds Sec.  440.17(c)(1)(iii)(D) to 
preserve the statutory and regulatory requirements that all customers 
waive claims against all the other parties involved in the licensed 
permitted activity. Lastly, the FAA removes permittees from the 
indemnification scheme reserved by statute for licensees only, thereby 
maintaining the scope of the indemnification scheme as set out in 51 
U.S.C. 50915.

A. First-Tier and Part 440 Customers

    As originally proposed, Sec.  440.17(c) is amended to require the 
FAA, the licensee or permittee, and each first-tier customer to enter 
into a reciprocal waiver of claims agreement for each licensed or 
permitted activity in which the U.S. Government, any agency, or its 
contractors and subcontractors are involved, or where property 
insurance is required under Sec.  440.9(d). Additionally, as proposed, 
Sec.  440.3 is amended to define the terms ``first-tier customer'' and 
``part 440 customer.'' A first-tier customer is one who satisfies the 
definition of a customer and has a contractual relationship with a 
license or permit holder to obtain launch or reentry services. A part 
440 customer means one who satisfies the regulatory definition of a 
customer and who is not a first-tier customer. Blue Origin requested 
that the FAA clarify how a licensee or permittee should identify its 
customers under the proposed rule. The FAA adopts these provisions as 
proposed, and provides further clarification below.
    Blue Origin requested clarification on how the requirement to enter 
into a reciprocal waiver of claims agreement with each first-tier 
customer would apply to a situation in which a first-tier customer was 
a single entity representing a group of persons. Blue Origin stated 
that it ``interprets the proposal to require that only the single 
entity representing the group will be required to sign a reciprocal 
waiver with the licensee/permittee and FAA.'' \1\ Blue Origin also 
requested that the FAA

[[Page 55117]]

confirm that ``if a first-tier customer is a single entity representing 
a group of persons, the licensee/permittee is required to enter into a 
cross waiver of claims only with a representative of the group as the 
first-tier customer.'' \2\
---------------------------------------------------------------------------

    \1\ Blue Origin Comment at 2.
    \2\ Blue Origin Comment at 2.
---------------------------------------------------------------------------

    An entity's status as the representative of a group is not the 
determining factor as to whether or not that entity is required to sign 
a reciprocal waiver with the licensee or permittee and the FAA. Rather, 
a licensee or permittee is only required to enter into a reciprocal 
waiver with customers with whom it is in a contractual relationship.
    To determine the entities with which it must execute a reciprocal 
waiver, the licensee or permittee should determine what entities it has 
contracted with for the licensed or permitted activity who also qualify 
as customers under 14 CFR 440.3. Accordingly, if a licensee entered 
into a contract with a number of entities for launch or reentry 
services, it would enter into reciprocal waivers with each of them.
    Blue Origin provided a hypothetical scenario in which a school, 
university research lab, or other educational institution represented a 
group of students that contributed to the development of a payload. In 
this hypothetical situation, the single entity representing the group 
may be the only entity required to sign a reciprocal waiver with the 
licensee or permittee and the FAA. However, the hypothetical entity 
would be the only entity required to sign the reciprocal waiver only if 
it was the only entity in a contractual relationship with the licensee 
or permittee, and therefore the only entity who would qualify as a 
first-tier customer.\3\ In that case, the representative would be the 
only first-tier customer and, therefore, the only party required to 
sign the reciprocal waiver of claims with the licensee or permittee and 
the FAA. If, however, any other member of the group was also in a 
direct contractual relationship with the licensee or permittee and also 
met the FAA's definition of customer under Sec.  440.3, that member 
would also be a first-tier customer and would also be required to sign 
a reciprocal waiver of claims with the licensee or permittee and the 
FAA. It would not, however, have to sign with all other first-tier 
customers because this final rule ensures that customers waive claims 
against all other customers involved in a launch or reentry, including 
those signing different reciprocal waivers.
---------------------------------------------------------------------------

    \3\ The FAA assumes for purposes of this hypothetical that the 
entity representing the group meets the FAA's definition of customer 
in 14 CFR 440.3, by, for example, being the one who procures the 
launch.
---------------------------------------------------------------------------

    Blue Origin also expressed concern regarding how a licensee or 
permittee will determine who its customers are. Specifically, Blue 
Origin pointed out that determining whether each party has an interest 
in the payload is complicated by the fact that ``people have varying 
levels of involvement (e.g., a student works an entire semester on a 
project, vs. one who works a few hours), or have left the group (e.g., 
some students graduate prior to completion of a payload, and are 
replaced by other students).'' \4\
---------------------------------------------------------------------------

    \4\ Blue Origin Comment at 2.
---------------------------------------------------------------------------

    The FAA is not changing the definition of ``customer'' under Sec.  
440.3 in this rulemaking. However, the burden of identifying part 440 
customers does shift with this rule, not to the licensee or permittee 
as Blue Origin suggests, but to the appropriate first-tier customer. 
This is because under this rule a licensee or permittee is responsible 
for implementing a reciprocal waiver of claims only with those 
customers with whom it is in a direct contractual relationship. A 
first-tier customer, as a result of this rule, will be responsible for 
implementing a reciprocal waiver of claims with each of its customers.
    Although it is not changing the definition of customer under Sec.  
440.3, the FAA reiterates what it has said about the definition of 
customer in previous rulemakings. In its 1996 rulemaking, the FAA 
pointed out that it construes the term customer in proposed Sec.  440.3 
more broadly than just ``the party that actually contracts with the 
commercial launch services provider and prospective licensee.'' \5\ The 
1996 NPRM provided the example of a customer who had placed its 
property on board the payload in order to receive an on-orbit service, 
such as microgravity experiments, and stated that such an entity would 
be considered a customer to the launch even though it did not procure 
the launch.\6\ In the final rule that resulted from the 1996 NPRM, the 
FAA stated: ``The definition of `customer' is further modified in the 
final rule to include any person who places property on board a payload 
for the purpose of obtaining launch or payload services . . . .'' \7\
---------------------------------------------------------------------------

    \5\ Financial Responsibility Requirements for Licensed Launch 
Activities, NPRM, 61 FR 38992, 39002 (July 25, 1996).
    \6\ Financial Responsibility, 61 FR at 39002.
    \7\ Financial Responsibility Requirements for Licensed Launch 
Activities, Final Rule, 63 FR 45592, 45607 (August 26, 1998).
---------------------------------------------------------------------------

    The FAA's definition of customer, therefore, as applied to Blue 
Origin's hypothetical, would be based on ownership rights in the 
payload rather than the level of involvement in developing the payload. 
For example, a person may build a payload and sell it to a company. The 
company may then place that payload on board a rocket. The builder has 
no ownership rights in the payload, and therefore would not be a 
customer under Sec.  440.3. The company who purchased, and therefore 
owns the payload, would be a customer under Sec.  440.3. The person 
facing financial exposure for failing to properly identify these other 
non-signing customers would be the first-tier customer.

B. Government Customers

    A Government customer need not sign a reciprocal waiver of claims 
because the FAA signs the reciprocal waiver of claims on behalf of the 
Government. Although, the proposed rule did not mention Government 
customers, Harris Corporation requested clarification on the treatment 
of Government-hosted payload customers on commercial payloads launched 
pursuant to Chapter 509. The FAA makes no change based on this comment.
    Specifically, Harris asked whether the FAA would sign the waiver 
form on behalf of a Government customer, whether a Government customer 
could be considered a part 440 customer, and whether a Government 
customer's contractor would be considered a contractor of the United 
States for purposes of Sec.  440.14(c). As the agency has stated in 
previous rulemakings, ``[w]hen the licensee's customer is a U.S. 
Government agency, the agency is treated the same as any 
nongovernmental customer for purposes of determining the appropriate 
amount of property insurance required of the licensee and in terms of 
the U.S. Government's waiver of claims or property damage or less above 
the required amount of property insurance under [51 U.S.C. 
50914(b)(2)]. That is, a Government payload is not covered by the 
required Government property insurance and the United States Government 
agency-customer accepts responsibility for property damage to the 
payload.'' \8\
---------------------------------------------------------------------------

    \8\ Financial Responsibility, 61 FR at 39001.
---------------------------------------------------------------------------

    Because the FAA signs on behalf of the U.S. Government, any 
Government customer would not separately sign any reciprocal waiver of 
claims. The designation as a part 440 customer does not change a 
customer's responsibilities under the reciprocal waivers of claims, it 
only affects with whom the customer must sign a reciprocal waiver of 
claims. A Government customer's status as a first-tier or part 440 
customer does not

[[Page 55118]]

matter, because the FAA signs on behalf of the Government.
    As to Harris' last question concerning whether a contractor of a 
Government customer would be considered a contractor of the United 
States for purposes of Sec.  440.14(c), it is beyond the scope of the 
current rulemaking. Additionally, the FAA notes that Sec.  440.14(c) is 
not currently a regulatory provision.

C. Extension of the Reciprocal Waivers of Claims Requirements

    The FAA intended to amend only the method by which the obligations 
under the reciprocal waiver of claims were extended. Rather than 
requiring the licensee or permittee to implement the reciprocal waiver 
of claims with its contractors, subcontractors, customers, and 
customers' contractors and subcontractors, this rule requires that each 
customer extend the reciprocal waiver of claims to its contractors and 
subcontractors. Although it did not receive comment on the issue, the 
FAA adds the extension of the reciprocal waiver of claims requirements 
to Sec.  440.17(b) to require the licensee or permittee, each first-
tier customer, and each part 440 customer to extend the requirements to 
their respective contractors and subcontractors. Therefore, and as 
discussed below, a part 440 customer must waive and release claims, 
assume responsibility, hold harmless, and indemnify other parties 
identified in the waiver as a result of both the explicit requirement 
in Sec.  440.17(c)(1)(iii)(D) and the extension of the reciprocal 
waiver of claims requirements in Sec.  440.17(c)(2) and (c)(1)(iii).
    Additionally, the FAA adds language to Sec.  440.17(c)(2)(i), (ii), 
and (iii), and the associated part 440 appendices specifying that a 
party to a reciprocal waiver of claims must agree in that waiver to 
indemnify another party to the agreement from claims by the 
indemnifying party's contractors, subcontractors, and in the case of 
the customer, customers, arising out of the indemnifying party's 
failure to correctly extend the reciprocal waiver of claims 
requirement. This change was contemplated by the proposed rule, and 
preserves the requirements of this section prior to the amendments 
included in this final rule.
1. Extension of Reciprocal Waiver of Claims to Part 440 Customers' 
Contractors and Subcontractors
    SpaceX commented that the proposed rule did not effectively extend 
the reciprocal waiver of claims requirements to a part 440 customer's 
contractors and subcontractors such that those contractors and 
subcontractors waived claims against all other parties otherwise 
protected by the reciprocal waiver of claims. SpaceX also commented 
that the appendices should be adjusted to state that a first-tier 
customer indemnifies the appropriate parties from and against 
liability, loss, or damage arising out of any claim brought by its 
customer's contractors and subcontractors. Harris commented that Sec.  
440.17(b) should be revised to include part 440 customers and their 
contractors and subcontractors in the waiver scheme to ensure that the 
parties to the reciprocal waiver of claims waive claims against them. 
In this rule the FAA changes Sec.  440.17 to apply to part 440 
customers' contractors and subcontractors, but does not adopt SpaceX's 
proposed language for the appendices. This marks a change from the 
regulatory text that the FAA originally proposed, based on comments 
discussed below.
    SpaceX recommended additions to proposed Sec.  440.17 and the 
associated appendices ``to ensure that the regulations maintain the 
current obligations of all customers' contractors and subcontractors 
with respect to the licensee/permittee.'' \9\ SpaceX stated that 
although the proposed rule might streamline the reciprocal waiver of 
claims process, ``it does not expressly provide the same protections to 
the licensee or permittee contained in the current rule.'' \10\ 
Specifically, SpaceX argued that, under the proposed rule, the licensee 
or permittee would have been required to waive and release any claims 
it might have against a part 440 customer and its contractors and 
subcontractors, but a part 440 customer's contractors and 
subcontractors would not have been required to waive claims against all 
other parties to which the reciprocal waiver requirements extended. 
SpaceX also noted that the contractors and subcontractors of a part 440 
customer were not accounted for in proposed Sec.  440.17 or in proposed 
sections 4(b) and 5(b) of the part 440 appendices in the same way as 
under the current rules. SpaceX provided suggested language to address 
what it saw as inconsistencies.
---------------------------------------------------------------------------

    \9\ SpaceX comment p. 1
    \10\ SpaceX comment at p. 2
---------------------------------------------------------------------------

    After considering the comments, the FAA has decided to make changes 
to the regulatory text to preserve the intent of this rulemaking and 
Chapter 509. Accordingly, Sec.  440.17(b) and (c) require that each 
customer extends the reciprocal waiver of claims requirements to the 
customer's contractors and subcontractors. The reciprocal waiver of 
claims requires that the contractors and subcontractors of each 
customer waive and release claims, assume responsibility, hold 
harmless, and indemnify other parties identified in the waiver, 
including the licensee or permittee. This rule explicitly requires the 
licensee or permittee, each first-tier customer, and each part 440 
customer to extend the reciprocal waiver of claims requirements to 
their contractors, subcontractors and customers.
    The FAA notes, however, that SpaceX recommended changing the text 
in each of the appendices to part 440 at section 4(b) to read: 
``Customer shall extend the requirements of the waiver . . . 
respectively, to its Contractors, Subcontractors, customers, and such 
customers' contractors and subcontractors . . . .'' The FAA is not 
adopting this suggested change for two reasons. First, this suggested 
language misappropriates the responsibility to extend the reciprocal 
waiver of claims requirements. Under SpaceX's proposed language, each 
first-tier customer would be required to extend the reciprocal waiver 
of claims requirements to its customers' contractors and 
subcontractors. Instead, this rule requires each customer to extend the 
reciprocal waiver of claims requirements to its contractors and 
subcontractors, but not to its customers' contractors and 
subcontractors. This is consistent with the previous version of the 
part 440 appendices. Second, this language is unnecessary because the 
extension of responsibilities in Sec.  440.17(b)(2) and (3) and 
(c)(1)(iii) created by this rulemaking ensure that a part 440 customer 
extends to the customer's contractors and subcontractors the 
requirements of the reciprocal waiver of claims, which include waiving 
and releasing claims, assuming responsibility, and holding harmless and 
indemnifying other parties identified in the waiver,\11\ because a 
first-tier customer must extend the waiver requirements to its 
customer. In other words, the requirements work as follows:
---------------------------------------------------------------------------

    \11\ See, e.g., 80 FR 1590, 1600 (extending the assumption of 
responsibility and waiver and release of claims for a licensed 
launch with one customer).
---------------------------------------------------------------------------

    (1) Under Sec.  440.17 and the part 440 appendices, a first-tier 
customer must waive and release claims, assume responsibility, hold 
harmless, and indemnify other parties identified in the waiver, as set 
forth in paragraphs 2(b) and 3(a) of the appendices. Additionally, a 
first-tier customer must extend each of these requirements to its

[[Page 55119]]

contractors, subcontractors, and customers.
    (2) Because a first-tier customer must extend the requirements of 
the waiver, including the requirement to extend the waiver, to its 
customers, it follows that its customers will have the same obligation 
as a first-tier customer under the waiver.
    (3) Therefore, because of the extension of responsibilities, a 
first-tier customer's customers will be required, in turn, to extend 
the waiver requirements to their contractors, subcontractors and 
customers. Additionally, Sec.  440.17(b)(3) and (c)(1)(iii) explicitly 
require that each part 440 customer extends the reciprocal waiver of 
claims requirements to its contractors and subcontractors.

Therefore, the FAA does not need to amend section 4(b) of the 
appendices to ensure that part 440 customers extend the waiver 
requirements to their contractors and subcontractors. Section 
440.17(b)(2) and (3) and (c)(1)(iii) and section 4(b) of the appendices 
already require this. The FAA also disagrees with SpaceX's suggestion 
to amend section 5(b) of the appendices to require that a first-tier 
customer indemnify the appropriate parties from and against liability, 
loss, or damage arising out of any claim brought by its customer's 
contractors and subcontractors. Adopting SpaceX's suggestion would 
place an additional burden of indemnification on a first-tier customer 
that did not previously exist in part 440. Previous part 440 appendices 
required only that a first-tier customer indemnify the appropriate 
parties from and against liability, loss, or damage arising out of 
certain claims brought by its contractors, subcontractors, and 
employees. SpaceX's proposed language would additionally require a 
first-tier customer to indemnify from claims brought by its customer's 
contractors, subcontractors, and employees. As explained above, a 
first-tier customer is required to extend the reciprocal waiver of 
claims requirements to its customers. As a result of this extension, a 
first-tier customer's customer, rather than the first-tier customer 
himself, is required to indemnify against certain claims brought by its 
contractors, subcontractors, and employees.
    Lastly, Harris pointed out that the absence of part 440 customers 
and their contractors and subcontractors in proposed Sec.  440.17(b) 
exposes these parties to liability that represents a departure from 
Chapter 509. The FAA agrees, and this rule requires parties to the 
reciprocal waiver of claims described in Sec.  440.17(b) to waive 
claims against part 440 customers and their contractors and 
subcontractors.
2. Extension of Reciprocal Waiver of Claims to Part 440 Customers
    In its comment, Harris also noted that the FAA overlooked 
explicitly requiring each part 440 customer to comply with the 
reciprocal waiver of claims requirements. Therefore, the FAA now adds 
an explicit requirement in addition to the extension of requirements 
provisions in order to clarify that each part 440 customer must enter 
into a reciprocal waiver of claims agreement. This marks a change from 
the regulatory text that the FAA originally proposed.
    Harris commented that proposed Sec.  440.17(b) and (c) would not 
have ensured that part 440 customers waive claims against the other 
parties included in the waiver scheme. Harris further asserted that the 
purpose behind the waiver scheme is ``(1) [t]o limit the total universe 
of claims that might arise as a result of a launch; and (2) to 
eliminate the necessity for all of these parties to obtain property and 
casualty insurance to protect against these claims.'' \12\
---------------------------------------------------------------------------

    \12\ Commercial Space Launch Act Amendments of 1988, Report of 
the Senate Committee on Commerce, Science, and Transportation on 
H.R. 4399, S. Rep. No. 100-593 at 14 (Oct. 7, 1988).
---------------------------------------------------------------------------

    The FAA agrees. Under Chapter 509 and the FAA's current rules, the 
licensee or permittee is required to enter into a reciprocal waiver of 
claims with all customers and their respective contractors and 
subcontractors involved in launch or reentry services. In other words, 
each customer must waive and release claims, assume responsibility, 
hold harmless, and indemnify other parties identified in the waiver. In 
the NPRM, the FAA proposed to require only first-tier customers to sign 
a reciprocal waiver of claims with the FAA and the licensee or 
permittee. By separating first-tier customers from part 440 customers, 
the proposed rule did not explicitly require part 440 customers to 
waive and release claims, assume responsibility, hold harmless, and 
indemnify other parties identified in the waiver. Instead, these 
requirements were implied by the extension of requirements in which a 
first-tier customer is required to extend the reciprocal waiver of 
claims requirements to its customers, contractors, and subcontractors. 
Because commenters expressed some confusion about the requirements, the 
FAA amends Sec.  440.17(b) and adds Sec.  440.17(c)(1)(iii)(D) to 
explicitly require that part 440 customers waive claims against all the 
other parties involved in the licensed activity.
    As stated previously, these requirements levied on part 440 
customers also exist as a result of the extension of the reciprocal 
waiver of claims that is required by Sec.  440.17(b)(2), (b)(3), and 
(c)(1)(iii). By shifting the responsibility to extend the reciprocal 
waiver of claims from the licensee or permittee to the appropriate 
customer, the burden to indemnify also shifts. Therefore, should a 
customer fail to extend the reciprocal waiver of claims requirements to 
its customer, and its customer bring a claim against a party involved 
in the launch, the customer who failed to extend would be required to 
indemnify that party against its customer's claim. This represents a 
shift from the old scheme in which all customers signed the reciprocal 
waiver of claims, and therefore no one would be required to indemnify 
against a customer's claim unless the licensee failed to identify a 
customer and ensure that that customer signed the reciprocal waiver of 
claims.

D. Removal of Permittees From Indemnification Scheme

    This rule does not change the indemnification scheme created by 51 
U.S.C. 50915. Chapter 509 provides that the United States Government 
shall pay for a successful third party claim to the extent the claim 
exceeds the insurance coverage required by statute but does not exceed 
the statutory limit for such coverage, provided Congress appropriates 
the funds.\13\ Chapter 509 also lists the persons against whom the 
claim may be brought in order to qualify for this coverage.\14\ This 
list includes licensees, but does not include permittees. Therefore, 
Congress will not appropriate funds for a third party claim against a 
permittee that exceeds the insurance requirements in Chapter 509.
---------------------------------------------------------------------------

    \13\ 51 U.S.C. 50915(a)(1).
    \14\ 51 U.S.C. 50915(a)(3)(A).
---------------------------------------------------------------------------

    Although it received no comments on the issue, the FAA has 
identified an error in the proposed rule that it corrects with the 
final rule. In the proposed rule, the FAA would have included 
permittees in the indemnification scheme reserved by statute for 
licensees only. Because this error would create a conflict with the 
FAA's statutory authority, which the FAA did not intend, the FAA has 
amended the regulatory text in this final rule to comply with Chapter 
509 by removing permittees from the section 50915 indemnification 
scheme.

[[Page 55120]]

E. Miscellaneous

    This rule includes a new Sec.  440.17(f) to include all provisions 
related to willful misconduct. The NPRM did not propose changing the 
willful misconduct provisions, and this rule also does not change those 
provisions but located them in Sec.  440.17(f) for clarity.

IV. Regulatory Notices and Analyses

A. Regulatory Evaluation

    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order 12866 and Executive Order 13563 direct 
that each Federal agency shall propose or adopt a regulation only upon 
a reasoned determination that the benefits of the intended regulation 
justify its costs. Second, the Regulatory Flexibility Act of 1980 
(Public Law 96-354) requires agencies to analyze the economic impact of 
regulatory changes on small entities. Third, the Trade Agreements Act 
(Public Law 96-39) prohibits agencies from setting standards that 
create unnecessary obstacles to the foreign commerce of the United 
States. In developing U.S. standards, this Trade Act requires agencies 
to consider international standards and, where appropriate, that they 
be the basis of U.S. standards. Fourth, the Unfunded Mandates Reform 
Act of 1995 (Public Law 104-4) requires agencies to prepare a written 
assessment of the costs, benefits, and other effects of proposed or 
final rules that include a Federal mandate likely to result in the 
expenditure by State, local, or tribal governments, in the aggregate, 
or by the private sector, of $100 million or more annually (adjusted 
for inflation with base year of 1995). This portion of the preamble 
summarizes the FAA's analysis of the economic impacts of this final 
rule. We suggest readers seeking greater detail read the full 
regulatory evaluation, a copy of which we have placed in the docket for 
this rulemaking.
    In conducting these analyses, FAA has determined that this final 
rule: (1) Has benefits that justify its costs, (2) is not an 
economically ``significant regulatory action'' as defined in section 
3(f) of Executive Order 12866, (3) is not ``significant'' as defined in 
DOT's Regulatory Policies and Procedures; (4) will not have a 
significant economic impact on a substantial number of small entities; 
(5) will not create unnecessary obstacles to the foreign commerce of 
the United States; and (6) will not impose an unfunded mandate on 
State, local, or tribal governments, or on the private sector by 
exceeding the threshold identified above. These analyses are summarized 
below. As we received no comments on the benefit cost methodology, we 
used the same methodology here.
Total Benefits and Costs of This Rule
    These changes will result in cost savings to the licensee or 
permittee, Government and customers and minimal cost to the first-tier 
customer if it has customers to the launch.
    Cost savings are presented in the table below, which is discussed 
in more detail in the paragraphs that follow.

                                        Cost Savings from the Final Rule
----------------------------------------------------------------------------------------------------------------
                                                                                    7% Present      3% Present
                                                                      Average       value cost      value cost
                                                                                      savings         savings
----------------------------------------------------------------------------------------------------------------
Government Cost Savings.........................................        $138,440         $97,232        $118,092
Licensee and Permittee Cost Savings:
    No Longer Requesting Waivers................................         136,282          95,716         116,251
No Longer Obtaining Part 440 Customer Signatures................          17,035          11,965          14,531
Cost Savings from Allowing Signatures on Different Set of                    365             256             311
 Reciprocal Waiver of Claims....................................
                                                                 -----------------------------------------------
        Total estimated cost savings............................         292,121         205,169         249,185
----------------------------------------------------------------------------------------------------------------
Minor rounding occurs in summation.

    The final rule might result in minimal costs to first-tier 
customers who will be responsible for implementing reciprocal waivers 
of claims with their customers.
Who Is Potentially Affected by This Rule?
Launch Licensees and Permittees
Federal Government
Customers of the Launch Licensees and Permittees
Assumptions
    The following assumptions apply to the analysis:

 Ten year time horizon
 2013 dollars
 Without the rule, the FAA will issue 4 partial waivers to the 
reciprocal cross waiver requirement per year
 Without the rule, a licensee or permittee will have to obtain 
some signatures from part 440 customers on launches unless waivers have 
been issued
Benefits of This Rule
    The final rule will result in cost savings because licensees and 
permittees will no longer have to obtain signatures of part 440 
customers on the reciprocal waiver of claims. Cost savings may result 
because licensees and permittees will not have to incur expenses to 
obtain part 440 signatures or licensees and permittees will not seek 
waivers from the FAA to the requirement that part 440 customers sign 
the reciprocal waiver of claims. The estimated cost savings to the 
licensee, permittee, and the Federal Government that will result were 
indicated in the table above.
    Also, the FAA estimated a small cost savings due to the final rule 
allowing a customer added at the last minute to sign a new and separate 
waiver of claims agreement.
    Finally, the FAA expects minimal cost savings with the addition of 
a template for permitted activities with no customer.
Costs of This Rule
    The responsibility to obtain signatures of customers who are not in 
a direct contractual relationship (i.e., part 440 customers) with the 
licensee or permittee will shift under the final rule, from the 
licensee or permittee to the appropriate first-tier customer. The FAA 
expects the costs the first-tier customer will incur under the rule to 
implement the reciprocal waiver of claims to be minimal because the 
first-tier customer could modify the templates provided in appendices B 
and C to part 440 and add them to the contract that it has with its 
customers. The FAA thinks that this will be a one-time cost that could 
be accomplished in a short period of time by the company's in-house 
lawyers. In addition, customers are currently required to extend the 
FAA reciprocal waiver of claims obligations to their

[[Page 55121]]

respective contractors and subcontractors, so the FAA does not expect 
the changes to the NPRM to result in additional costs.

B. Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA) 
establishes ``as a principle of regulatory issuance that agencies shall 
endeavor, consistent with the objectives of the rule and of applicable 
statutes, to fit regulatory and informational requirements to the scale 
of the businesses, organizations, and governmental jurisdictions 
subject to regulation. To achieve this principle, agencies are required 
to solicit and consider flexible regulatory proposals and to explain 
the rationale for their actions to assure that such proposals are given 
serious consideration.'' The RFA covers a wide-range of small entities, 
including small businesses, not-for-profit organizations, and small 
governmental jurisdictions.
    Agencies must perform a review to determine whether a rule will 
have a significant economic impact on a substantial number of small 
entities. If the agency determines that it will, the agency must 
prepare a regulatory flexibility analysis as described in the RFA.
    However, if an agency determines that a rule is not expected to 
have a significant economic impact on a substantial number of small 
entities, section 605(b) of the RFA provides that the head of the 
agency may so certify and a regulatory flexibility analysis is not 
required. The certification must include a statement providing the 
factual basis for this determination, and the reasoning should be 
clear.
    The FAA believes that this final rule will not have a significant 
impact on a substantial number of entities because the rule will result 
in cost savings and some minimal costs as described below. The FAA 
solicited comments in the NPRM regarding the initial regulatory 
flexibility analysis minimal cost determination, and received none. As 
we made the same determination for the initial regulatory flexibility 
analysis, we accept this determination for the final regulatory 
flexibility analysis. The reasons for the minimal cost determination 
are provided below.
    Cost savings are expected because the licensee or permittee will no 
longer have to request waivers or obtain part 440 customers' 
signatures, nor have to reopen the original waivers to obtain 
signatures if a party is added to the launch at the last minute. 
However, there might be minimal costs to first-tier customers. The 
responsibility to obtain signatures of customers who are not in a 
direct contractual relationship (i.e., part 440 customers) with the 
licensee or permittee will shift under the final rule, from the 
licensee or permittee to the appropriate first-tier customer. This will 
be a new requirement on the first-tier customer.
    Under the final rule, the first-tier customers will be responsible, 
as described above, for implementing a reciprocal waiver of claims with 
their customers. These costs will be minimal because the first-tier 
customer could modify the templates provided in appendices B and C to 
part 440 and add it to the contract that it has with its customers. The 
FAA thinks that this will be a one-time cost that could be accomplished 
in a short period of time by the company's in-house lawyers at an 
estimated cost of $185.
    It is not clear whether this minimal cost will impact a substantial 
number of small entities. To date, the FAA is unaware of any small 
entities who would be affected. The agency does not know whether in the 
future there might be small entities, that will have to implement a 
reciprocal waiver of claims with their customers, but even if there 
were a substantial number of small entities, the final rule will not 
have a significant impact on these entities.
    Therefore, as provided in section 605(b), the head of the FAA 
certifies that this rulemaking will not result in a significant 
economic impact on a substantial number of small entities.

C. International Trade Impact Assessment

    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the 
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal 
agencies from establishing standards or engaging in related activities 
that create unnecessary obstacles to the foreign commerce of the United 
States. Pursuant to these Acts, the establishment of standards is not 
considered an unnecessary obstacle to the foreign commerce of the 
United States, so long as the standard has a legitimate domestic 
objective, such as the protection of safety, and does not operate in a 
manner that excludes imports that meet this objective. The statute also 
requires consideration of international standards and, where 
appropriate, that they be the basis for U.S. standards. The FAA has 
assessed the potential effect of this final rule and determined that it 
will impose the same costs on domestic and international entities and 
thus has a neutral trade impact.

D. Unfunded Mandates Assessment

    Title II of the Unfunded Mandates Reform Act of 1995 (Pub.L. 104-4) 
requires each Federal agency to prepare a written statement assessing 
the effects of any Federal mandate in a proposed or final agency rule 
that may result in an expenditure of $100 million or more (in 1995 
dollars) in any one year by State, local, and tribal governments, in 
the aggregate, or by the private sector; such a mandate is deemed to be 
a ``significant regulatory action.'' The FAA currently uses an 
inflation-adjusted value of $155.0 million in lieu of $100 million. 
This final rule does not contain such a mandate; therefore, the 
requirements of Title II of the Act do not apply.

E. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that the FAA consider the impact of paperwork and other information 
collection burdens imposed on the public. The FAA has determined that 
there would be no new requirement for information collection associated 
with this rule.

F. International Compatibility and Cooperation

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, it is FAA policy to conform to 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. The FAA has 
determined that there are no ICAO Standards and Recommended Practices 
that correspond to these proposed regulations.

G. Environmental Analysis

    FAA Order 1050.1F identifies FAA actions that are categorically 
excluded from preparation of an environmental assessment or 
environmental impact statement under the National Environmental Policy 
Act in the absence of extraordinary circumstances. The FAA has 
determined this rulemaking action qualifies for the categorical 
exclusion identified in paragraph 5-6.6 and involves no extraordinary 
circumstances.

V. Executive Order Determinations

A. Executive Order 13132, Federalism

    The FAA has analyzed this final rule under the principles and 
criteria of Executive Order 13132, Federalism. The agency determined 
that this action will not have a substantial direct effect on the 
States, or the relationship between the Federal Government and the 
States, or on the distribution of power and responsibilities among the 
various

[[Page 55122]]

levels of government, and, therefore, does not have Federalism 
implications.

B. Executive Order 13211, Regulations That Significantly Affect Energy 
Supply, Distribution, or Use

    The FAA analyzed this final rule under Executive Order 13211, 
Actions Concerning Regulations that Significantly Affect Energy Supply, 
Distribution, or Use (May 18, 2001). The agency has determined that it 
is not a ``significant energy action'' under the executive order and it 
is not likely to have a significant adverse effect on the supply, 
distribution, or use of energy.

VI. How To Obtain Additional Information

A. Rulemaking Documents

    An electronic copy of a rulemaking document may be obtained by 
using the Internet--
    1. Search the Federal eRulemaking Portal (http://www.regulations.gov);
    2. Visit the FAA's Regulations and Policies Web page at http://www.faa.gov/regulations_policies/ or
    3. Access the Government Printing Office's Web page at http://www.gpo.gov/fdsys/.
    Copies may also be obtained by sending a request (identified by 
notice, amendment, or docket number of this rulemaking) to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue SW., Washington, DC 20591, or by calling (202) 267-9680.

B. Comments Submitted to the Docket

    Comments received may be viewed by going to http://www.regulations.gov and following the online instructions to search the 
docket number for this action. Anyone is able to search the electronic 
form of all comments received into any of the FAA's dockets by the name 
of the individual submitting the comment (or signing the comment, if 
submitted on behalf of an association, business, labor union, etc.).

C. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires the FAA to comply with small entity requests for 
information or advice about compliance with statutes and regulations 
within its jurisdiction. A small entity with questions regarding this 
document, may contact its local FAA official, or the person listed 
under the FOR FURTHER INFORMATION CONTACT heading at the beginning of 
the preamble. To find out more about SBREFA on the Internet, visit 
http://www.faa.gov/regulations_policies/rulemaking/sbre_act/.

List of Subjects in 14 CFR Part 440

    Indemnity payments, Insurance, Reporting and recordkeeping 
requirements, Space transportation and exploration.

The Amendments

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

PART 440--FINANCIAL RESPONSIBILITY

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

    Authority:  51 U.S.C. 50901-50923.


0
2. Amend Sec.  440.3 by adding the definitions of first-tier customer 
and part 440 customer in alphabetical order to read as follows:


Sec.  440.3  Definitions.

* * * * *
    First-tier customer means a customer as defined in this section, 
and who has a contractual relationship with a license or permit holder 
to obtain launch or reentry services.
* * * * *
    Part 440 customer means a customer as defined in this section, 
other than a first-tier customer.
* * * * *
0
3. Amend Sec.  440.17 by revising paragraphs (b) through (f) to read as 
follows:


Sec.  440.17  Reciprocal waiver of claims requirements.

* * * * *
    (b) The licensee or permittee and each of its contractors and 
subcontractors, each customer, and each customer's contractors and 
subcontractors, must enter into a reciprocal waiver of claims agreement 
under which each party waives and releases claims against all the other 
parties to the waiver and against any other customer, and agrees to 
assume financial responsibility for property damage it sustains and for 
bodily injury or property damage sustained by its own employees, and to 
hold harmless and indemnify each other from bodily injury or property 
damage sustained by its employees, resulting from a licensed or 
permitted activity, regardless of fault.
    (1) The licensee or permittee must extend the reciprocal waiver of 
claims requirements to each of its contractors and subcontractors 
involved in launch or reentry services, and each of its first-tier 
customers.
    (2) Any first-tier customer must extend the reciprocal waiver of 
claims requirements to each of its contractors and subcontractors 
involved in launch or reentry services, and each of its customers.
    (3) Any part 440 customer must extend the reciprocal waiver of 
claims requirements to each of its contractors and subcontractors 
involved in launch or reentry services, and each of its customers.
    (c) For each licensed or permitted activity in which the United 
States, 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 first-tier customer must enter into a 
reciprocal waiver of claims agreement. The reciprocal waiver of claims 
must be in the form set forth in appendix B of this part for a licensed 
activity, in appendix C of this part for a permitted activity, or in a 
form that otherwise provides all the same obligations and benefits. The 
reciprocal waiver of claims must provide that:
    (1) Each party to the reciprocal waiver of claims, including the 
United States but only to the extent provided in legislation:
    (i) Waives and releases claims it may have against each other party 
to the reciprocal waiver of claims, any 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 or permitted activities, regardless 
of fault;
    (ii) Assumes responsibility for property damage it sustains and for 
bodily injury or property damage sustained by its own employees, 
resulting from licensed or permitted activities, regardless of fault. A 
licensee or permittee and each first-tier customer shall each hold 
harmless and indemnify each other, the United States, any other 
customer, and the contractors and subcontractors of each for bodily 
injury or property damage sustained by its own employees, resulting 
from licensed or permitted activities, regardless of fault; and
    (iii) Extends the requirements of the waiver and release of claims, 
and the assumption of responsibility, hold harmless, and 
indemnification, to its contractors and subcontractors involved in 
launch and reentry services, and, for each customer, to its contractors 
and subcontractors involved in launch and reentry services, and 
customers, by

[[Page 55123]]

requiring them to waive and release all claims as follows:
    (A) For each contractor and subcontractor of the licensee or 
permittee, all claims against any customer, the United States, and each 
of their respective contractors and subcontractors, and to agree to be 
responsible for property damage they sustain and to be responsible, 
hold harmless and indemnify any customer, the United States, and each 
of their respective contractors and subcontractors, for bodily injury 
or property damage sustained by their own employees, resulting from 
licensed activities, regardless of fault;
    (B) For each contractor and subcontractor of any customer, all 
claims against the licensee or permittee, any other customer, the 
United States, and each of their respective contractors and 
subcontractors, and to agree to be responsible for property damage they 
sustain and to be responsible, hold harmless and indemnify the licensee 
or permittee, any other customer, the United States, and each of their 
respective contractors and subcontractors, for bodily injury or 
property damage sustained by their own employees, resulting from 
licensed activities, regardless of fault;
    (C) For each contractor and subcontractor of the United States, all 
claims against the licensee or permittee, any customer, and each of 
their respective contractors and subcontractors, and to agree to be 
responsible for property damage they sustain and to be responsible, 
hold harmless and indemnify the licensee or permittee, any other 
customer, the United States, and each of their respective contractors 
and subcontractors, for 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.  440.9(c) and (e);
    (D) For each part 440 customer, all claims against the licensee or 
permittee, any other customer, the United States, and each of their 
respective contractors and subcontractors; and to agree to be 
responsible for property damage they sustain and to be responsible, 
hold harmless and indemnify the licensee or permittee, any other 
customer, the United States, and each of their respective contractors 
and subcontractors, for bodily injury or property damage sustained by 
their own employees, resulting from licensed activities, regardless of 
fault; and
    (2) For the following parties--
    (i) The licensee or permittee must hold harmless and indemnify each 
first-tier customer and its directors, officers, servants, agents, 
subsidiaries, employees and assignees, or any of them; the United 
States and its servants, agents, subsidiaries, employees and assignees, 
or any of them; and any part 440 customer and its directors, officers, 
servants, agents, subsidiaries, employees and assignees, or any of them 
from and against liability, loss or damage arising out of claims that 
any of licensee's or 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 licensed 
or permitted activities and arising out of the indemnifying party's 
failure to implement properly the waiver requirement. The requirement 
of paragraph (c)(2)(i) of this section to hold harmless and indemnify 
the United States and its servants, agents, subsidiaries, employees and 
assignees, or any of them, does not apply when:
    (A) Claims result from willful misconduct of the United States or 
its agents;
    (B) 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);
    (C) For licensed activity, 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), 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; or
    (D) The 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).
    (ii) Each first-tier customer must hold harmless and indemnify the 
licensee or permittee and its directors, officers, servants, agents, 
subsidiaries, employees and assignees, or any of them; the United 
States and its servants, agents, subsidiaries, employees and assignees, 
or any of them; and any part 440 customer and its directors, officers, 
servants, agents, subsidiaries, employees and assignees, or any of 
them, from and against liability, loss or damage arising out of claims 
that any of each first-tier customer's customers, contractors, or 
subcontractors, may have for property damage sustained by them and for 
bodily injury or property damage sustained by their employees, 
resulting from licensed or permitted activities and arising out of the 
indemnifying party's failure to implement properly the waiver 
requirement.
    (iii) The Federal Aviation Administration of the Department of 
Transportation on behalf of the United States, but only to the extent 
provided in legislation, must hold harmless and indemnify the licensee 
or permittee, each first-tier customer, any part 440 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 or permitted activities and 
arising out of the indemnifying party's failure to implement properly 
the waiver requirement 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.  440.9(c) 
and (e).
    (d) For each licensed or permitted activity in which the United 
States or its contractors and subcontractors are involved, the Federal 
Aviation Administration of the Department of Transportation and each 
space flight participant must enter into or have in place a reciprocal 
waiver of claims agreement. The reciprocal waiver of claims must be in 
the form set forth in appendix E of this part, or in a form that 
otherwise provides all the same obligations and benefits.
    (1) The reciprocal waiver of claims must provide that each space 
flight participant:
    (i) Waive and release claims he or she may have against the United 
States, and against each of its contractors and subcontractors, for 
bodily injury or property damage sustained by the space flight 
participant, resulting from licensed or permitted activities, 
regardless of fault;
    (ii) Assume responsibility for bodily injury or property damage, 
sustained by the space flight participant, resulting from licensed or 
permitted activities, regardless of fault;
    (iii) Hold harmless the United States, and its contractors and 
subcontractors, for bodily injury or property damage, sustained by the 
space flight participant,

[[Page 55124]]

resulting from licensed or permitted activities, regardless of fault; 
and
    (iv) Hold harmless and indemnify the United States and its 
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 sustained by the 
space flight participant, resulting from licensed or permitted 
activities.
    (2) The reciprocal waiver of claims must provide that the United 
States:
    (i) Waive and release claims it may have against the space flight 
participant for property damage it sustains, and for bodily injury or 
property damage sustained by its own employees, resulting from licensed 
or permitted activities, regardless of fault;
    (ii) Assume responsibility 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.  440.9(c) and (e), respectively;
    (iii) Assume responsibility 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 Sec.  440.9(e);
    (iv) Extend the requirements of the waiver and release of claims, 
and the assumption of responsibility to its contractors and 
subcontractors by requiring them to waive and release all claims they 
may have against the space flight participant, 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; and
    (v) Extend the requirements of the waiver and release of claims, 
and the assumption of responsibility to its contractors and 
subcontractors by requiring them to waive and release all claims they 
may have against the space flight participant, and to agree to be 
responsible, for any property damage they sustain, resulting from 
permitted activities, regardless of fault.
    (e) For each licensed or permitted activity in which the United 
States or its contractors and subcontractors is involved, the Federal 
Aviation Administration of the Department of Transportation and each 
crew member must enter into or have in place a reciprocal waiver of 
claims agreement. The reciprocal waiver of claims must be in the form 
set forth in appendix D of this part, or in a form that otherwise 
provides all the same obligations and benefits.
    (1) The reciprocal waiver of claims must provide that each crew 
member:
    (i) Waive and release claims he or she may have against the United 
States, and against each of its contractors and subcontractors, for 
bodily injury or property damage sustained by the crew member, 
resulting from licensed or permitted activities, regardless of fault;
    (ii) Assume responsibility for bodily injury or property damage, 
sustained by the crew member, resulting from licensed or permitted 
activities, regardless of fault;
    (iii) Hold harmless the United States, and its contractors and 
subcontractors, for bodily injury or property damage, sustained by the 
crew member, resulting from licensed or permitted activities, 
regardless of fault; and
    (iv) 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 sustained 
by the crew member, resulting from licensed or permitted activities.
    (2) The reciprocal waiver of claims must provide that the United 
States:
    (i) Waive and release 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 or permitted activities, regardless of fault;
    (ii) Assume responsibility 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.  440.9(c) and (e), respectively;
    (iii) Assume responsibility 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 Sec.  440.9(e);
    (iv) Extend the requirements of the waiver and release of claims, 
and the assumption of responsibility to its contractors and 
subcontractors by requiring them to waive and release all claims they 
may have against the crew member 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; and
    (v) Extend the requirements of the waiver and release of claims, 
and the assumption of responsibility to its contractors and 
subcontractors by requiring them to waive and release all claims they 
may have against the crew member and to agree to be responsible, for 
any property damage they sustain, resulting from permitted activities, 
regardless of fault.
    (f) Any waiver, release, assumption of responsibility or agreement 
to hold harmless and indemnify pursuant to this section does not apply 
to claims for bodily injury or property damage resulting from willful 
misconduct of any of the parties to the reciprocal waiver of claims, 
the contractors and subcontractors of any of the parties to the 
reciprocal waiver of claims, and in the case of licensee or permittee 
and customers 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.
0
4. 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 Sec.  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 defined by Sec.  
440.3 of the Regulations.
    Customer means the above-named Customer.
    Part 440 Customer means a customer defined by Sec.  440.3 of the 
Regulations, other than the above-named Customer.
    License means License No.__issued on____, by the Associate 
Administrator for Commercial Space Transportation, Federal Aviation 
Administration, Department

[[Page 55125]]

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, the United States, any Part 440 Customer, and each 
of 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, the United States, any other customer, and each of 
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, Customer, any Part 440 Customer, and each of 
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 Sec.  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, any other customer, and 
the Contractors and Subcontractors of each, 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.  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, the United States, any Part 440 Customer, and each of 
their respective Contractors and Subcontractors, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify Customer, the United States, any Part 
440 Customer, and each of their respective Contractors and 
Subcontractors, 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 customers, Contractors, and 
Subcontractors, by requiring them to waive and release all claims 
they may have against Licensee, the United States, and any other 
customer, and each of their respective Contractors and 
Subcontractors, and to agree to be responsible, for Property Damage 
they sustain and to be responsible, hold harmless and indemnify 
Licensee, the United States, and any other customer, and each of 
their respective Contractors and Subcontractors 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, Customer, any 
Part 440 Customer, and each of their respective Contractors and 
Subcontractors, 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.  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; the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them; and any Part 440 Customer and its directors, officers, 
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 and arising out of the indemnifying party's failure to 
implement properly the waiver requirement.
    (b) Customer shall hold harmless and indemnify Licensee and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them; the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them; and any other customer and its directors, officers, 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, Subcontractors, or customers, may have for 
Property Damage sustained by them and for Bodily Injury or Property 
Damage sustained by their employees, resulting from Licensed 
Activities and arising out of the indemnifying party's failure to 
implement properly the waiver requirement.
    (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, Customer, any Part 440 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 and arising out of the indemnifying party's failure to 
implement properly the waiver requirement, 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.  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 paragraph 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.

[[Page 55126]]

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, any Part 440 Customer, the Contractors and 
Subcontractors of any Part 440 Customer, and in the case of 
Licensee, Customer, any Part 440 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 Sec.  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 defined by Sec.  
440.3 of the Regulations.
    Customer means each above-named Customer.
    Part 440 Customer means a customer defined by Sec.  440.3 of the 
Regulations, other than 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 each Customer, the United States, any Part 440 Customer, and 
each of 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 Licensee, the United States, any other customer, and each of 
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, each Customer, any Part 440 Customer, and 
each of 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 Sec.  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, any other 
customer, and the Contractors and Subcontractors of each, 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.  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, the United States, any Part 440 Customer, and each of 
their respective Contractors and Subcontractors, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify each Customer, the United States, any 
Part 440 Customer, and each of their respective Contractors and 
Subcontractors, 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 customers, Contractors, and 
Subcontractors, by requiring them to waive and release all claims 
they may have against Licensee, the United States, and any other 
customer, and each of their respective Contractors and 
Subcontractors, and to agree to be responsible, for Property Damage 
they sustain and to be responsible, hold harmless and indemnify 
Licensee, the United States, and any other customer, and each of 
their respective Contractors and Subcontractors, 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, each Customer, 
any Part 440 Customer, and each of their respective Contractors and 
Subcontractors, 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.  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; the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them; and any part 440 customer and its directors, officers, 
servants, agents, subsidiaries, employees and assignees, or any of 
them, from and against

[[Page 55127]]

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 and arising 
out of the indemnifying party's failure to implement properly the 
waiver requirement.
    (b) Each Customer shall hold harmless and indemnify Licensee and 
its directors, officers, servants, agents, subsidiaries, employees 
and assignees, or any of them; the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them; and any other customer and its directors, officers, servants, 
agents, subsidiaries, employees and assignees, or any of them, from 
and against liability, loss or damage arising out of claims that 
each Customer's Contractors, Subcontractors, or customers, may have 
for Property Damage sustained by them and for Bodily Injury or 
Property Damage sustained by their employees, resulting from 
Licensed Activities and arising out of the indemnifying party's 
failure to implement properly the waiver requirement.
    (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, each Customer, any Part 440 
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 and arising out of the indemnifying party's failure to 
implement properly the waiver requirement, 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.  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 paragraph 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, 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, any Part 440 Customer, the Contractors and 
Subcontractors of any Part 440 Customer, and in the case of 
Licensee, each Customer, any Part 440 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

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 defined by Sec.  
440.3 of the Regulations.
    Customer means the above-named Customer.
    Part 440 Customer means a customer defined by Sec.  440.3 of the 
Regulations, other than 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, the United States, any Part 440 Customer, and each 
of 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, the United States, any other customer, and each of 
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, Customer, any Part 440 Customer, and each of 
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 Sec.  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.

[[Page 55128]]

Licensee and Customer shall each hold harmless and indemnify each 
other, the United States, any other customer, and the Contractors 
and Subcontractors of each, 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.  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, the United States, any Part 440 Customer, and each of 
their respective Contractors and Subcontractors, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify Customer, the United States, any Part 
440 Customer, and each of their respective Contractors and 
Subcontractors, 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 customers, Contractors, and 
Subcontractors, by requiring them to waive and release all claims 
they may have against Licensee, the United States, and any other 
customer, and each of their respective Contractors and 
Subcontractors, and to agree to be responsible, for Property Damage 
they sustain and to be responsible, hold harmless and indemnify 
Licensee, the United States, and any other customer, and each of 
their respective Contractors and Subcontractors, 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, Customer, any 
Part 440 Customer, and each of their respective Contractors and 
Subcontractors, 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.  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; the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them; and any Part 440 Customer and its directors, officers, 
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 and arising out of the indemnifying party's failure to 
implement properly the waiver requirement.
    (b) Customer shall hold harmless and indemnify Licensee and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them; the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them; and any other customer and its directors, officers, 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, Subcontractors, or customers may have for 
Property Damage sustained by them and for Bodily Injury or Property 
Damage sustained by their employees, resulting from Licensed 
Activities and arising out of the indemnifying party's failure to 
implement properly the waiver requirement.
    (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, Customer, any Part 440 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 and arising out of the indemnifying party's failure to 
implement properly the waiver requirement, 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.  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, 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 paragraph 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, any Part 440 Customer, the Contractors and 
Subcontractors of any Part 440 Customer, and in the case of 
Licensee, Customer, any Part 440 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]

[[Page 55129]]

(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 Sec.  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.
    Part 440 Customer means a customer defined by Sec.  440.3 of the 
Regulations, other than 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 each Customer, the United States, any Part 440 Customer, and 
each of 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 Licensee, the United States, any other customer, and each of 
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, each Customer, any Part 440 Customer, and 
each of 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 Sec.  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, any other 
customer, and the Contractors and Subcontractors of each, 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.  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, the United States, any Part 440 Customer, and each of 
their respective Contractors and Subcontractors, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify each Customer, the United States, any 
Part 440 Customer, and each of their respective Contractors and 
Subcontractors, 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 customers, Contractors, and 
Subcontractors, by requiring them to waive and release all claims 
they may have against Licensee, the United States, and any other 
customer, and each of their respective Contractors and 
Subcontractors, and to agree to be responsible, for Property Damage 
they sustain and to be responsible, hold harmless and indemnify 
Licensee, the United States, and any other customer, and each of 
their respective Contractors and Subcontractors, 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, each Customer, 
any Part 440 Customer, and each of their respective Contractors and 
Subcontractors, 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.  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; the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them; and any Part 440 Customer and its directors, officers, 
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 and arising out of the indemnifying party's failure to 
implement properly the waiver requirement.
    (b) Each 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 any other 
customer as defined by Sec.  440.3 its agencies, servants, agents, 
subsidiaries, employees and assignees, or any of them; and any other 
customer and its directors, officers, servants, agents, 
subsidiaries, employees and assignees, or any of them, from and 
against liability, loss or damage arising out of claims that each 
Customer's Contractors, Subcontractors, and customers, may have for 
Property Damage sustained by them and for Bodily Injury or Property 
Damage sustained by their employees, resulting from Licensed 
Activities and arising out of the indemnifying party's failure to 
implement properly the waiver requirement.
    (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, each Customer, any Part 440 
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 and arising out of the indemnifying party's failure to 
implement properly the waiver requirement, 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.  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

[[Page 55130]]

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 
paragraph 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, 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, any Part 440 Customers, the Contractors and 
Subcontractors of any Part 440 Customer, and in the case of 
Licensee, each Customer, any Part 440 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
5. 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 No Customer

    This agreement is entered into this __ day of ____, by and 
between [Permittee] (the ``Permittee'') 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 [describe permitted 
activity]. In consideration of the mutual releases and promises 
contained herein, the Parties hereby agree as follows:

1. Definitions

    Contractors and Subcontractors means entities defined by 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 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 the United States, and against its 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) The United States hereby waives and releases claims it may 
have against Permittee and against its 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 Sec.  440.9(e) of the Regulations.

3. Assumption of Responsibility

    (a) Permittee shall 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 shall hold harmless and indemnify the United 
States, and the Contractors and Subcontractors of the United States, 
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 Sec.  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 
the United States, and against the Contractors and Subcontractors of 
the United States, and to agree to be responsible for Property 
Damage they sustain and to be responsible, hold harmless, and 
indemnify the United States, and the Contractors and Subcontractors 
of the United States, for Bodily Injury or Property Damage sustained 
by their own employees, resulting from Permitted 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(b), respectively, to its 
Contractors and Subcontractors by requiring them to waive and 
release all claims they may have against Permittee, and against the 
Contractors and Subcontractors of Permittee, 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 Sec.  440.9(e) of the Regulations.

5. Indemnification

    Permittee 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 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 and arising out of the 
indemnifying party's failure to implement properly the waiver 
requirement.

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

    (a) Permittee shall hold harmless and indemnify Customer and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them; the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them; and any Part 440

[[Page 55131]]

Customer and its directors, officers, 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; the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them; and any other customer and its directors, officers, 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, Subcontractors, and customers, may have for 
Property Damage sustained by them and for Bodily Injury or Property 
Damage sustained by their employees, resulting from Permitted 
Activities.

7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by Permittee or the United States of any claim by an 
employee of the Permittee 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 its 
Contractors and Subcontractors, 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.

Permittee

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 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 
Sec.  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

    Contractors and Subcontractors means entities defined by Sec.  
440.3 of the Regulations.
    Customer means the above-named Customer.
    Part 440 Customer means a customer defined by Sec.  440.3 of the 
Regulations, other than 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, the United States, any Part 440 Customer, and each 
of 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, the United States, any other customer, and each 
of their respective Contractors and Subcontractors, 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, Customer, any Part 440 Customer, and each of 
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, 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.  440.9(c) and (e), 
respectively, 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, any other customer, and 
the Contractors and Subcontractors of each, 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 Sec.  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, the United States, any Part 440 Customer, and each of 
their respective Contractors and Subcontractors, and to agree to be 
responsible, for Property Damage they sustain and to be responsible, 
hold harmless and indemnify Customer, the United States, any Part 
440 Customer, and each of their respective Contractors and 
Subcontractors, 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 customers, Contractors, and 
Subcontractors, by requiring them to waive and release all claims 
they may have against Permittee, the United States, any other 
customer, and each of their respective Contractors and 
Subcontractors, and to agree to be responsible, for Property Damage 
they sustain and to be responsible, hold harmless and indemnify 
Permittee, the United States, any other customer, and each of their 
respective Contractors and Subcontractors, 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, Customer, any 
Part 440 Customer, and each of their respective Contractors and 
Subcontractors, 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 Permitted 
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.  440.9(c) and (e), respectively, of the Regulations.

[[Page 55132]]

5. Indemnification

    (a) Permittee shall hold harmless and indemnify Customer and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them; the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them; and any Part 440 Customer and its directors, officers, 
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 and arising out of the indemnifying party's failure to 
implement properly the waiver requirement.
    (b) Customer shall hold harmless and indemnify Permittee and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them; the United States and its agencies, 
servants, agents, subsidiaries, employees and assignees, or any of 
them; and any other customer and its directors, officers, 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, Subcontractors, and customers, may have for 
Property Damage sustained by them and for Bodily Injury or Property 
Damage sustained by their employees, resulting from Permitted 
Activities and arising out of the indemnifying party's failure to 
implement properly the waiver requirement.

6. Assurances Under 51 U.S.C. 50914(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: (i) As provided in paragraph 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 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, any Part 440 Customer, the Contractors and 
Subcontractors of any Part 440 Customer, and in the case of 
Permittee, Customer, any Part 440 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.

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

Part 3--Waiver of Claims and Assumption of Responsibility for Permitted 
Activities With More Than One Customer

    This agreement is entered into this __ day of ____, by and among 
[Permittee] (the ``Permittee''); [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 Sec.  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

    Contractors and Subcontractors means entities defined by Sec.  
440.3 of the Regulations.
    Customer means each above-named Customer.
    Part 440 Customer means a customer defined by Sec.  440.3 of the 
Regulations, other than 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 each Customer, the United States, any Part 440 Customer, and 
each of 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) Each Customer hereby waives and releases claims it may have 
against Permittee, the United States, any other customer, and each 
of their 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, each Customer, any Part 440 Customer, and 
each of 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, 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.  440.9(c) and (e), respectively, of the Regulations.

3. Assumption of Responsibility

    (a) Permittee 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 Permitted Activities, 
regardless of fault. Permittee and each Customer shall each hold 
harmless and indemnify each other, the United States, any other 
customer, and the Contractors and Subcontractors of each, 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 or injury exceed the amount of insurance or demonstration of 
financial responsibility required under Sec.  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

[[Page 55133]]

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, the United 
States, any Part 440 Customer, and each of their respective 
Contractors and Subcontractors, and to agree to be responsible, for 
Property Damage they sustain and to be responsible, hold harmless 
and indemnify each Customer, the United States, any Part 440 
Customer, and each of their respective Contractors and 
Subcontractors, for Bodily Injury or Property Damage sustained by 
their own employees, resulting from Permitted 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 customers, Contractors, and 
Subcontractors, by requiring them to waive and release all claims 
they may have against Permittee, the United States, any other 
customer, and each of their respective Contractors and 
Subcontractors, and to agree to be responsible, for Property Damage 
they sustain and to be responsible, hold harmless and indemnify 
Permittee, the United States, any other customer, and each of their 
respective Contractors and Subcontractors, 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, each Customer, 
any Part 440 Customer, and each of their respective Contractors and 
Subcontractors, 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 Permitted 
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.  440.9(c) and (e), respectively, of the Regulations.

5. Indemnification

    (a) Permittee shall hold harmless and indemnify each Customer 
and its directors, officers, servants, agents, subsidiaries, 
employees and assignees, or any of them; the United States and its 
agencies, servants, agents, subsidiaries, employees and assignees, 
or any of them; and any Part 440 Customer and its directors, 
officers, 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 and arising out of the indemnifying party's 
failure to implement properly the waiver requirement.
    (b) Each Customer shall hold harmless and indemnify Permittee 
and its directors, officers, servants, agents, subsidiaries, 
employees and assignees, or any of them; the United States and its 
agencies, servants, agents, subsidiaries, employees and assignees, 
or any of them; and any other customer and its directors, officers, 
servants, agents, subsidiaries, employees and assignees, or any of 
them, from and against liability, loss or damage arising out of 
claims that each Customer's Contractors, Subcontractors, and 
customers, may have for Property Damage sustained by them and for 
Bodily Injury or Property Damage sustained by their employees, 
resulting from Permitted Activities and arising out of the 
indemnifying party's failure to implement properly the waiver 
requirement.

6. Assurances Under 51 U.S.C. 50914(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: (i) As provided in paragraph 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 Permittee, any Customer or the United States of any claim 
by an employee of the Permittee, 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 
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, any Part 440 Customer, the Contractors and 
Subcontractors of any Part 440 Customer, and in the case of 
Permittee, each Customer, any Part 440 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.

Permittee

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:-------------------------------------------------------------------

    Issued under authority provided by 49 U.S.C. 106(f), 44701(a), 
and 44703 in Washington, DC, on July 25, 2016.
Michael P. Huerta,
Administrator.
[FR Doc. 2016-18765 Filed 8-17-16; 8:45 am]
 BILLING CODE 4910-13-P


