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[Federal Register Volume 80, Number 8 (Tuesday, January 13, 2015)]
[Proposed Rules]
[Pages 1590-1608]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-00252]

========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 80, No. 8 / Tuesday, January 13, 2015 / 
Proposed Rules

[[Page 1590]]

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 440

[Docket No.: FAA-2014-1012; Notice No. 14-10]
RIN 2120-AK44

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

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to amend the reciprocal waivers of claims 
regulations so that customers would waive claims against all the 
customers involved in a launch or reentry, including those signing a 
different set of reciprocal waivers. Also, customers of any customer 
contracting directly with a licensee or permittee would not have to 
sign a waiver directly with the licensee or permittee, other customers, 
or the FAA. The FAA also proposes to add an appendix to provide 
permittees with an example of a Waiver of Claims and Assumption of 
Responsibility for Permitted Activities with No Customer. The proposed 
rule would incorporate the reciprocal waiver of claims requirements in 
the regulatory text, ensure that customers would waive claims against 
all other customers involved in a launch or reentry, including those 
signing different reciprocal waivers, reduce the need for licensees and 
permittees to request a partial waiver of the reciprocal waiver of 
claims requirements and for the FAA to process those requests, and 
provide a reciprocal waiver template for permittees with no customers, 
reducing the need for the FAA to assist such a permittee in drafting 
its cross waivers.

DATES: Send comments on or before March 16, 2015.

ADDRESSES: Send comments identified by docket number FAA-2014-1012 
using any of the following methods:
     Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for sending your 
comments electronically.
     Mail: Send comments to Docket Operations, M-30; U.S. 
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room 
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket 
Operations in Room W12-140 of the West Building Ground Floor at 1200 
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m., 
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at (202) 493-2251.
    Privacy: The FAA will post all comments it receives, without 
change, to http://www.regulations.gov, including any personal 
information the commenter provides. Using the search function of the 
docket Web site, anyone can find and read the electronic form of all 
comments received into any FAA dockets, including the name of the 
individual sending the comment (or signing the comment for an 
association, business, labor union, etc.). DOT's complete Privacy Act 
Statement can be found in the Federal Register published on April 11, 
2000 (65 FR 19477-19478), as well as at http://DocketsInfo.dot.gov.
    Docket: Background documents or comments received may be read at 
http://www.regulations.gov at any time. Follow the online instructions 
for accessing the docket or Docket Operations in Room W12-140 of the 
West Building Ground Floor at 1200 New Jersey Avenue SE., Washington, 
DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal 
holidays.

FOR FURTHER INFORMATION CONTACT: For technical questions concerning 
this proposed rule, contact Shirley McBride, Regulations Program Lead, 
Commercial Space Transportation, Federal Aviation Administration, 800 
Independence Avenue SW., Washington, DC 20591; telephone (202) 267-
7470; email Shirley.McBride@faa.gov.
    For legal questions concerning this proposed rule, contact Sabrina 
Jawed, Attorney, AGC-200, Office of the Chief Counsel, Federal Aviation 
Administration, 800 Independence Avenue SW., Washington, DC 20591; 
telephone (202) 267-8839; email Sabrina.Jawed@faa.gov.

SUPPLEMENTARY INFORMATION: See the ``Additional Information'' section 
for information on how to comment on this proposal and how the FAA will 
handle comments received. The ``Additional Information'' section also 
contains related information about the docket, privacy, the handling of 
proprietary or confidential business information. In addition, there is 
information on obtaining copies of related rulemaking documents.

Authority for This Rulemaking

    The Commercial Space Launch Act of 1984, as amended at 51 U.S.C. 
50901-50923 (the Act), 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.
    The statute under which the Secretary of Transportation regulates 
commercial space transportation, 51 U.S.C. subtitle V, chapter 509, 
sections 50901-50923 (chapter 509), requires that, for each commercial 
space launch or reentry, the Department of Transportation (DOT) and, 
through delegation, the Federal Aviation Administration (FAA) enter 
into a reciprocal waiver of claims agreement with ``the licensee or 
transferee, contractors, subcontractors, crew, space flight 
participants, and customers of the licensee or transferee, and 
contractors and subcontractors of the customers. . . .'' 51 U.S.C. 
50914(b)(2). This requirement also applies to permittees under 51 
U.S.C. 50906(i). This rule changes Title 14, Code of Federal 
Regulations (14 CFR) 440.3, 440.17 and appendices B and C

[[Page 1591]]

to address new scenarios involving hosted payloads.

I. Background

    The FAA first promulgated regulations regarding reciprocal waivers 
of claims agreements in 1998 \1\ at 14 CFR part 440, and included 
appendix B as an example of an Agreement of Waiver of Claims and 
Assumption of Responsibility for Licensed Activities. In 2000 and 2006, 
respectively, the FAA amended its regulations to include these same 
requirements for licensed reentries \2\ and permitted launches.\3\ The 
2006 final rule also added appendix C as an example of an Agreement for 
Waiver of Claims and Assumption of Responsibility for Permitted 
Activities. In the original requirements, the FAA referenced the 
reciprocal waiver of claims as a ``three-party agreement'' (i.e., 
between the licensee or permittee, its customer, and the FAA). The term 
``three-party'' created confusion and caused some customers of 
commercial space launches to believe that only three parties were 
necessary to complete a waiver, even if there were multiple customers 
associated with a single launch. In other words, according to some, one 
customer could sign the reciprocal waiver with the licensee or 
permittee and the U.S. Government and by so doing waive not only its 
own claims but also the claims of all other customers to the launch. 
Appendices B and C defined ``Customer'' as ``the above-named customer 
on behalf of the Customer and any person described in Sec.  440.3 of 
the Regulations.'' Again, some customers construed this language to 
mean one customer could sign on behalf of all other customers.
---------------------------------------------------------------------------

    \1\ See Financial Responsibility Requirements for Licensed 
Launch Activities, Final Rule, 63 FR 45592 (Aug. 26, 1998).
    \2\ See Financial Responsibility Requirements for Licensed 
Reentry Activities, Final Rule, 65 FR 56670 (Sept. 19, 2000).
    \3\ See Human Space Flight Requirements for Crew and Space 
Flight Participants, Final Rule, 71 FR 75616 (Dec. 5, 2006).
---------------------------------------------------------------------------

    In 2011, the FAA amended Sec.  440.17 and the appendices to part 
440 to clarify that each individual customer must enter into the 
reciprocal waiver of claims, and a customer does not sign on behalf of 
other customers. In doing so, the FAA removed the term ``three-party'' 
from Sec.  440.17(c) and from paragraph 5(d) of the appendices to 
dispel the notions that only three parties had to sign the reciprocal 
waivers and that one customer could sign on behalf of the remaining 
customers in a multi-customer launch.\4\
---------------------------------------------------------------------------

    \4\ See Clarification of Reciprocal Waivers of Claims for 
Multiple-Customer Commercial Space Launch and Reentry, Technical 
Amendment, 76 FR 8629 (Feb. 15, 2011).
---------------------------------------------------------------------------

    In 2012, the FAA became aware of a new scenario where the U.S. 
Government is a customer of a licensee, and the Government provides its 
customers' payloads to the licensee. This scenario makes compliance 
with part 440 challenging for the licensee because the licensee is not 
contracting directly with all its customers, and there are a large 
number of total customers. Since 2012, the FAA has licensed additional 
launches that raised similar issues, and it expects to continue to see 
increasingly complex scenarios. The FAA briefly describes the first of 
these launches below to provide a better understanding of the issues it 
would address with this proposed rule.
    On October 7, 2012, SpaceX launched a Falcon 9 rocket carrying its 
Dragon spacecraft as part of NASA's first contracted cargo delivery 
flight to the International Space Station (ISS). In addition to 
providing supplies to the ISS, Dragon carried a number of student 
experiments as part of NASA's Student Spaceflight Experiments Program 
(SSEP). NASA described SSEP as a national science, technology, 
engineering, and mathematics education initiative.\5\ NanoRacks, LLC 
(``NanoRacks''), contracted with NASA and arranged to carry the student 
experiments on a locker insert to put into an experimental locker 
onboard the ISS. Under the FAA's definitions, NanoRacks and each 
student who placed a payload onboard the NanoRacks insert qualified as 
a ``customer''. Section 440.3 defines a customer, in relevant part, as 
any person with rights in the payload or any part of the payload, or 
any person who has placed property onboard the payload for launch, 
reentry, or payload services.\6\ Accordingly, because NanoRacks and the 
students were persons who had rights in their respective payloads, the 
locker insert and the experiments, due to their ownership of those 
objects, and because they placed property onboard the Dragon, they were 
customers. Therefore, Sec.  440.17 required their signatures as 
customers on the reciprocal waivers of claims along with the licensee 
(SpaceX), and the FAA.
---------------------------------------------------------------------------

    \5\ Space Station--Here we Come! NASA Press Release: http://www.nasa.gov/audience/foreducators/station-here-we-come.html (last 
visited February 2, 2014).
    \6\  A person is an individual or an entity organized or 
existing under the laws of a State or country. 51 U.S.C. 50901(12), 
14 CFR 401.5. The students and NanoRacks were persons because the 
students are individuals and NanoRacks is an entity, a limited 
liability corporation.
---------------------------------------------------------------------------

    SpaceX had a contract with NASA, but was not in a contractual 
relationship with NanoRacks or any of the students placing experiments 
onboard Dragon. On September 20, 2012, SpaceX submitted a petition to 
the FAA requesting a partial waiver of Sec.  440.17, which requires a 
licensee to enter into a reciprocal waiver of claims with each of its 
customers.\7\ To be in compliance with Sec.  440.17, SpaceX would have 
first had to determine who its customers were, and then obtain each of 
their signatures. To avoid this burdensome process, SpaceX instead 
requested a partial waiver from the FAA of Sec.  440.17.
---------------------------------------------------------------------------

    \7\ Waiver of Requirement to Enter Into a Reciprocal Waiver of 
Claims Agreement With All Customers, Notice of Waiver, 77 FR 63221 
(Oct. 16, 2012).
---------------------------------------------------------------------------

    Thereafter, both SpaceX and Orbital Sciences, Corp. have requested 
partial waivers for missions in which NASA was a customer.\8\ Since 
October 2012, the FAA has published three partial waivers to part 440 
requirements in the Federal Register, and has issued three letters of 
waiver. Issuing a waiver is costly and time-consuming to the FAA, while 
requesting a waiver is costly and time-consuming for industry.
---------------------------------------------------------------------------

    \8\ Waiver of Requirement to Enter Into a Reciprocal Waiver of 
Claims Agreement With All Customers for Orbital Sciences 
Corporation, Notice of Waiver, 78 FR 70392 (Nov. 25, 2013); Waiver 
of Requirement to Enter Into a Reciprocal Waiver of Claims Agreement 
With All Customers for Orbital Sciences Corporation, Notice of 
Waiver, 78 FR 57215 (Sept. 17, 2013). The FAA has also granted 
waivers that it did not publish in the Federal Register because they 
did not present any novel issues.
---------------------------------------------------------------------------

II. Overview of Proposed Rule

    This NRPM proposes to revise part 440 in the following ways: (1) 
Amend Sec.  440.17 to state the reciprocal waiver of claims 
requirements; (2) amend Sec.  440.17 and appendices B and C so that 
customers of any customer contracting directly with a licensee or 
permittee would not have to sign a waiver directly with the licensee or 
permittee, other customers, or the FAA; (3) amend appendices B and C of 
part 440 so that customers would 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) amend Sec.  
440.3 to add a definition of ``first-tier customer'' and ``part 440 
customer''; and (5) add 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 would 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

[[Page 1592]]

permittee if it has customers to the launch.

III. Discussion of the Proposal

A. Amend Sec.  440.17 To State the Reciprocal Waiver of Claims 
Requirements

    The FAA proposes to amend Sec.  440.17 to describe the requirements 
for the reciprocal waiver of claims agreement. Currently, those 
requirements are detailed in part 440 appendices, but are not all 
reflected in Sec.  440.17. This proposed change would locate the cross-
waiver requirements in the regulatory text rather than just the 
appendices. Section 440.17(c) would describe the requirements for each 
party to the reciprocal waiver of claims, to the extent provided in 
appendices B and C, to (i) waive and release claims for its property 
damage and its employees' bodily injury or property damage; (ii) assume 
responsibility for its property damage and its employees' bodily injury 
or property damage; (iii) extend its assumption of responsibility and 
waiver and release of claims to its contractors and subcontractors, and 
customers in the case of a first-tier customer; \9\ and (iv) hold 
harmless and indemnify each other party from bodily injury or property 
damage sustained by its employees. Sections 440.17(d) and (e) would 
require each party to the reciprocal waiver of claims, to the extent 
described in appendices D and E, to (i) waive and release claims for 
bodily injury or property damage; (ii) assume responsibility for bodily 
injury or property damage; and (iii) hold harmless and indemnify the 
United States and its agencies, servants, agents, subsidiaries, 
employees and assignees against claims for property damage or bodily 
injury.
---------------------------------------------------------------------------

    \9\ This requirement would be new to both the regulatory text 
and the appendices and is discussed in detail in Section B of this 
preamble.
---------------------------------------------------------------------------

    Section 440.17 does not currently detail the reciprocal waiver of 
claims requirements in full. Rather, the section currently uses 
appendices, as incorporated through sub-sections, to detail the scope 
of the reciprocal waiver of claims. At the same time, subsection (c) 
currently qualifies the use of appendices with the additional clause 
``or in a form that satisfies the requirements.'' The FAA believes that 
this qualification could lead to uncertain expectations for launch 
participants because the appendices are more comprehensive than what 
Sec.  440.17 contains. Section 440.17 only includes general references 
to requirements such as assumption of responsibility, hold harmless, 
and indemnification clauses.
    To address this deficiency, the FAA proposes that Sec.  440.17 list 
the specific requirements that should be included in the reciprocal 
waiver of claims agreement. This proposed change would serve to locate 
the requirements in one place within the regulation for clarity and 
ease of use.

B. Amend Sec.  440.17 and Appendices B and C so That Only First-Tier 
Customers Sign the Statutorily Mandated Waiver of Claims, and Amend 
Sec.  440.3 To Define ``First-Tier Customer'' and ``Part 440 Customer''

    This rulemaking would amend the part 440 requirement describing 
which entities are required to sign the statutorily-mandated waiver of 
claims. Specifically, this rulemaking would no longer require a first-
tier customer's customer to sign reciprocal waivers with the licensee 
and the Government, and would require that a first-tier customer obtain 
its customers' agreement but indemnify the other parties for any 
failure to properly apply the requirements of the waiver to its 
customers. The FAA proposes defining first-tier customer as a customer 
as defined in Sec.  440.3 who has a contractual relationship with the 
licensee or permittee to obtain launch or reentry services. In other 
words, a first-tier customer would be one who met the FAA's regulatory 
definition of a customer, and was in a contractual relationship with 
the licensee. The FAA proposes defining part 440 customer as a customer 
defined by Sec.  440.3 of the Regulations, other than a first-tier 
customer. The FAA would add these definitions because they are a 
concise way to differentiate between a customer who is a direct 
contractual relationship with the licensee or permittee, and a customer 
who is not. The FAA would also revise the wording in the definition of 
contractors and subcontractors throughout the appendices, for greater 
specificity.
    The FAA will discuss the proposed requirements in the following 
order: (1) First-tier customers would flow down the reciprocal waiver 
requirements to their customers; and (2) first-tier customers would 
indemnify other parties against claims brought by their customers.
    The FAA would revise Sec.  440.17(c) to require each first-tier 
customer to apply the requirements of Sec.  440.17 to each of its 
customers, and would amend appendices B and C to reflect this 
requirement. Currently, part 440 requires all customers, as defined by 
Sec.  440.3, to sign reciprocal waivers with the licensee and the U.S. 
Government, even those not contracting directly with a licensee or 
permittee. This rulemaking would relieve licensees or permittees of 
having to obtain signatures of their part 440 customers, i.e., any 
customer who is not contracting directly with the licensee or 
permittee. The FAA proposes to use its current practice of requiring 
that launch participants extend reciprocal waiver requirements to their 
contractors and subcontractors as a model. A first-tier customer 
currently extends the reciprocal waiver provisions to its contractors 
and subcontractors. The FAA proposes similarly requiring a first-tier 
customer to extend the reciprocal waiver provisions to its customers, 
assuming its customers are not also first-tier customers. Consistent 
with current practice, the agency leaves implementation of these 
provisions to the licensee or permittee and does not intend to monitor 
compliance with the requirement to extend the reciprocal waiver 
provisions.\10\ The indemnification, discussed later in this section, 
provides its own incentives.
---------------------------------------------------------------------------

    \10\ See 63 FR at 45607.
---------------------------------------------------------------------------

    The result of requiring first-tier customers to extend the FAA 
reciprocal waiver requirements to their own customers, would be that 
the licensee or permittee would only be responsible for signing 
reciprocal waivers with customers with whom it is in a direct 
contractual relationship. The FAA notes that the Commercial Space 
Launch Act specifies that the reciprocal waivers of claims requirement 
applies only to customers involved in launch or reentry services. 51 
U.S.C. 50914(b). Thus, part 440 customers are limited to customers 
involved in launch or reentry services. As the FAA has stated 
previously, ``[t]he term ``customer'' does not include the ultimate 
beneficiary of the payload services, as opposed to launch services, 
because doing so could theoretically include any person who uses a 
television or makes a long-distance telephone call, and goes beyond the 
intended scope of the Act.'' \11\
---------------------------------------------------------------------------

    \11\ See 61 FR at 39012.
---------------------------------------------------------------------------

    The FAA offers three examples to illustrate the effects of this 
proposed change. First, this proposed change would not affect launches 
in which a licensee or permittee contracted directly with all its 
customers. For example, if Licensee Launcher was launching a payload 
owned by ToyCo, then Licensee Launcher, ToyCo and the FAA would sign 
the part 440 reciprocal waivers. This straightforward scenario is what 
the FAA contemplated when it originally drafted part 440.
    In the second example, involving a hosted payload situation, if 
Licensee

[[Page 1593]]

Launcher was launching a payload provided by LockerCo that included 
property owned by WatchCo and CologneCo, under the current rules, 
Licensee Launcher, LockerCo, WatchCo, and CologneCo would be required 
to sign the reciprocal waivers with the FAA. In this scenario, Licensee 
Launcher contracted with LockerCo for the launch, and LockerCo 
contracted with WatchCo and CologneCo. Even though Licensee Launcher 
had no contractual relationship with any of the customers other than 
LockerCo, he is still required to obtain signatures for all the 
customers of the launch to comply with part 440. This proposed rule 
would allow Licensee Launcher to sign a reciprocal waiver with only 
LockerCo and the FAA. LockerCo would then be required to flow down the 
reciprocal waiver requirements to its customers: WatchCo and CologneCo. 
LockerCo would be free to choose the method by which it extended these 
requirements down, so long as the end effect was that LockerCo's 
customers waived all claims they would have waived had they signed the 
original waiver with Licensee Launcher and the FAA.
    The third example involves a hosted payload with a U.S. Government 
customer. If Licensee Launcher were launching a payload provided by 
NASA that included cubesats owned by South University, North 
University, and Jane Doe, under the current rules Licensee Launcher, 
South University, North University, Jane Doe, and the FAA would be 
required to sign reciprocal waivers. In this scenario, Licensee 
Launcher contracted with NASA for the launch, and NASA contracted with 
South University, North University, and Jane Doe. Besides NASA, 
Licensee Launcher had no contractual relationship with any of the 
customers. However, as in the examples above, Licensee Launcher is 
currently required to obtain signatures from all the customers of the 
launch to comply with part 440. This proposed rule would allow Licensee 
Launcher to sign a reciprocal waiver with only the FAA. The FAA would 
sign on behalf of the U.S. Government,\12\ which would include NASA, 
even though NASA is also a customer. Under part 440, NASA, as a 
Government customer, currently already accepts responsibility for 
property damage to its payload.\13\ Under the proposed amendments, NASA 
would be required to extend the reciprocal waiver requirements to its 
customers: South University, North University, and Jane Doe. NASA would 
be free to choose the method by which it extended these requirements 
down, as long as the end effect was that NASA's customers waived all 
claims they would have waived had they signed the original waiver with 
Licensee Launcher and the FAA.
---------------------------------------------------------------------------

    \12\ The FAA, through delegation from the Department of 
Transportation, is required by 51 U.S.C. 50914(b)(2) to make 
reciprocal waiver of claims for the Government.
    \13\ Financial Responsibility Requirements for Licensed Launch 
Activities, Final Rule, 63 FR 45592, 45601 (Aug. 26, 1998).
---------------------------------------------------------------------------

    The proposal to require a first-tier customer to extend the 
reciprocal waiver requirements does not conflict with previous 
positions the FAA has taken on this issue. In its 2011 Technical 
Amendment, the FAA stated that ``a plain language reading of the 
[Commercial Space Launch Act] makes it clear that Congress intended the 
government to enter into a reciprocal waiver of claims with all 
customers.'' This proposal is consistent with what the FAA has stated 
before, even though the FAA would only require customers contracting 
directly with the licensee or permittee to sign with the Government and 
the licensee or permittee. The intent of the statute would be preserved 
because first-tier customers would extend the part 440 requirements to 
any customers they had that met the definition of customer in Sec.  
440.3. Thus, customers who did not sign with the Government and the 
licensee, but who still met the FAA's definition of customer, would 
waive claims against all the relevant parties, namely the Government, 
the licensee or permittee, all other part 440 customers, and the 
relevant parties' contractors. In this way, the protections Congress 
intended the statute to afford would be preserved even though the 
result would be that all customers would no longer have to sign 
directly with the Government and the licensee or permittee. As the FAA 
contemplated, in cases with more than one customer's payload on the 
manifest for a single launch, executing separate but appropriately 
modified agreements to ensure that all parties are protected would 
satisfy the statute's mandate. \14\ All customers would still have to 
enter into a waiver of claims agreement; however, the licensee or 
permittee would no longer be responsible for obtaining a part 440 
customer's signature on its reciprocal waiver with the FAA.
---------------------------------------------------------------------------

    \14\ See Financial Responsibility Requirement for Licensed 
Launch Activities Proposed Rule, 61 FR at 39012.
---------------------------------------------------------------------------

    The FAA also modeled its proposal regarding indemnification on the 
current practice for contractors and subcontractors. In the context of 
a party requiring its contractors and subcontractors to agree to abide 
by the requirements of part 440, the FAA has stated previously that 
indemnification provides a strong incentive for parties to correctly 
extend reciprocal waiver requirements. This incentive provides a remedy 
for parties who sustain loss due to another party's failure to extend 
the reciprocal waiver requirements.\15\ The FAA would apply the same 
reasoning to customers of a first-tier customer. Each customer would be 
required to indemnify the Government, the licensee or permittee, and 
any other customer not its own, against claims brought by its 
contractors, subcontractors, and customers that are not also in a 
direct contractual relationship with the licensee or permittee.
---------------------------------------------------------------------------

    \15\ Financial Responsibility Requirements for Licensed Launch 
Activities, Notice of Proposed Rulemaking, 61 FR 38992, 39012 (July 
25, 1996).
---------------------------------------------------------------------------

    This proposal similarly does not conflict with the 2011 Technical 
Amendment, where the FAA stated that in no case was any one customer 
required to indemnify against claims brought by another customer, or to 
extend the reciprocal waiver of claims to other customers. At that 
time, the FAA was not contemplating a scenario in which a customer's 
customer would have a payload on the launch manifest, but would not be 
in a direct contractual relationship with the licensee or permittee. 
Instead, in 2011 the FAA meant only to clarify that unrelated customers 
could not waive claims on behalf of each other. The FAA envisioned a 
scenario in which the licensee or permittee itself contracted with 
various customers. In such a scenario, each customer would sign the 
reciprocal waiver of claims and could not sign for any other customer, 
or indemnify other signatories to the waiver of claims against a non-
signing customers' claims.
    Although the FAA removed language stating that a customer must 
provide indemnification on behalf of another customer,\16\ the intent 
was to clarify that a customer could not sign on behalf of another 
customer and indemnify a signatory to the reciprocal waiver against 
that customer's claim in a scenario where the signing customer was not 
in a relationship with the non-signing customer. The effect of allowing 
a customer to sign on behalf of a different customer it has no 
relationship with and indemnify against that customer's claims is the 
non-signing customer effectively receives the benefits of the 
reciprocal waiver of claims without the obligations.
---------------------------------------------------------------------------

    \16\ See 76 FR 8629 at 8630.

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[[Page 1594]]

    In contrast, this proposal would require not only that a customer 
in a contractual relationship with the licensee or permittee extend the 
cross waiver requirements to its customers, but also that it indemnify 
the other parties against claims brought by its own customers. In this 
scenario, all customers would be aware of the claims they were waiving, 
and, if a customer failed to extend the reciprocal waiver requirements, 
it would be required to indemnify. Therefore, it would be in a 
customer's best interests to correctly extend the reciprocal waiver 
requirements so that its customers would not bring claims against the 
other parties. To accomplish this, the FAA would recommend using the 
forms provided in part 440 appendices B and C.

C. Amend Appendices B and C of Part 440 so That Customers of Any 
Customer Contracting Directly With a Licensee or Permittee Would Not 
Have To Sign a Waiver Directly With the Licensee or Permittee, Other 
Customers, or the FAA

    The FAA proposes requiring that customers waive claims against all 
other customers involved in a launch or reentry. This change would 
obviate launch participants re-signing reciprocal waivers if a new 
customer was added close to the launch date.
    The FAA proposes amending the waivers of claims agreements in 
appendices B and C so that customers waive claims, as required by the 
statute, against all the customers involved in the launch or reentry, 
including those signing a different set of reciprocal waivers. In the 
2011 Technical Amendment, the FAA inadvertently removed from the 
definition of ``customer'' in appendices B and C the phrase ``and any 
person described in Sec.  440.3 of the Regulations.'' By removing this 
phrase, it became unclear that the customer signing the waiver with the 
licensee or permittee and the FAA was waiving any claims it had against 
all other customers.
    Correcting this omission is important in order to ease the 
administrative burden on the FAA, customers, licensees, and permittees 
in instances where a new customer is added to a launch only a short 
time before the scheduled launch date. As the rule currently stands, 
all of the parties involved would need to re-sign the original waiver 
of claims because the protection only extends to those customers who 
have signed the specific waiver. This could be an onerous process were 
there to be many entities as customers for a single launch. The 
proposed amendment would clarify that a signing customer waived any 
claims against all other customers currently or to be involved in a 
launch, and would allow a customer who was added at the last minute to 
sign a new and separate waiver of claims with the FAA and the licensee 
or permittee, while still waiving claims against any other customers 
who have signed a separate waiver of claims. This correction should not 
be construed to allow a customer to sign an indemnification agreement 
on behalf of another customer. Each customer in a contractual 
relationship with the licensee or permittee would still sign a waiver 
of claims on its own behalf.
    Although it may look contradictory to include the clause ``and any 
other customer as defined by 14 CFR 440.3'' in the reciprocal waiver 
with one customer found in appendices B and C, the clause is necessary 
to meet the intent of allowing a last-minute customer to sign a new and 
separate waiver of claims with the FAA and the licensee or permittee, 
while also waiving claims against any customers on a launch who have 
signed a previous waiver of claims. Reciprocal waiver of claims with 
one customer found in appendices B and C would be used when one 
customer signed, and reciprocal waiver of claims with multiple 
customers found in appendices B and C would be used when multiple 
customers signed the same reciprocal waiver.
    For example, Licensee Launcher is conducting a launch, and has one 
customer (WatchCo). WatchCo signs the ``Waiver of Claims and Assumption 
of Responsibility for Licensed Launch, Including Suborbital Launch, 
With One Customer,'' located in appendix B to part 440, with the FAA 
and Licensee Launcher. Two months later, Licensee Launcher acquires 
customer CologneCo. CologneCo is not a customer of WatchCo. Licensee 
Launcher now has two customers for its launch. Under the proposed rule, 
CologneCo would sign reciprocal waivers with Licensee Launcher and the 
FAA, but it would not need to sign with WatchCo because WatchCo waived 
and released claims it may have against any other customers as defined 
by Sec.  440.3 and their contractors and subcontractors.
    Thus, a licensee with multiple customers for a launch or reentry 
may sign one cross-waiver with multiple customers, or may sign multiple 
cross-waivers with each individual customer. Under the proposed rule, 
the outcome would be the same.

D. Add an Appendix for Waiver of Claims and Assumption of 
Responsibility for Permitted Activities With No Customer

    Finally, this rulemaking would add a waiver of claims to appendix C 
that accounts for scenarios in which a permitted activity does not 
involve any customer. Permitted activities are launches or reentries of 
a reusable suborbital rocket for the purpose of research and 
development, demonstrating compliance with requirements in order to 
obtain a license, or crew training, and often do not involve a 
customer. Permittees may not receive compensation for carrying any 
property or human being. 51 U.S.C. 50906(h). Accordingly, although the 
FAA contemplated nonpaying customers, permittees may regularly conduct 
launches without any customer.
    Currently, when a permittee plans to conduct permitted activities 
without any customer, the FAA and permittee modify the existing waivers 
of claims forms in appendix C in order to create a two-party agreement 
between the U.S. Government and the permittee. The FAA permits No. EP 
07-003 issued to Armadillo Aerospace, L.P. in 2007, No. EP 12-007 
issued to Scaled Composites in 2012, and No. EP 12-008 issued to SpaceX 
in 2012 all involved such a modified waiver of claims. This process led 
to additional coordination between the FAA and the permittees, and the 
permittees typically sought confirmation from the FAA that the modified 
waiver of claims agreement complied with part 440. With the addition of 
a separate waiver of claims template in appendix C for permitted 
activities with no customer, the FAA would be able to provide a uniform 
and compliant waiver of claims that would make the permitting process 
more efficient.

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 (Pub. 
L. 96-354) requires agencies to analyze the economic impact of 
regulatory changes on small entities. Third, the Trade Agreements Act 
(Pub. L. 96-39) prohibits agencies from setting standards that create 
unnecessary obstacles to the foreign

[[Page 1595]]

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 (Pub. L. 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 proposed 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 proposed 
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) would not have a 
significant economic impact on a substantial number of small entities; 
(5) would not create unnecessary obstacles to the foreign commerce of 
the United States; and (6) would 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.
Total Benefits and Costs of This Rule
    These changes would result in cost savings to the licensee, 
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 are discussed 
in more detail in the paragraphs that follow.
[GRAPHIC] [TIFF OMITTED] TP13JA15.003

Minor Rounding Occurs in Summation
    The proposal might result in minimal costs to first-tier customers 
who would be responsible for implementing cross-waivers 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 FAA would issue 4 partial waivers to the 
reciprocal cross waiver requirement per year
 Without the rule the licensee would have to obtain some 
signatures from sub-tier customers on launches unless waivers have been 
issued.
Benefits of This Rule
    The proposal would result in cost savings because licensees would 
no longer have to obtain signatures of sub-tier customers on the cross-
waiver. Cost savings may result because licensees would not have to 
incur expenses to obtain sub-tier signatures or licensees would not 
seek waivers from the FAA to the requirement that sub-tier customers 
sign the cross-waiver. The estimated cost savings to the licensee and 
the Federal Government that would result were indicated in the table 
above.
    Also, the FAA estimated a small cost savings due to the proposal to 
allow 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 proposed 
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. sub-tier customers) with the 
licensee would shift under the proposal, from the licensee to the 
appropriate first-tier customer. The FAA expects the costs the first-
tier customer would incur under the rule to implement the cross-waiver 
would 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. In addition, customers are 
currently required to extend the FAA cross-waiver obligations to their 
respective contractors and subcontractors. The FAA thinks that this 
would be a one-time cost that could be accomplished in a short period 
of time by the company's in-house lawyers.

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-

[[Page 1596]]

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 proposed rule would not have a 
significant impact on a substantial number of entities because the rule 
would result in cost savings and some minimal costs as described below.
    Cost savings are expected because the licensee would no longer have 
to request waivers or obtain sub-tier signatures, nor have 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., sub-tier customers) with the 
licensee would shift under the proposal, from the licensee to the 
appropriate first-tier customer. This would be a new requirement on the 
first-tier customer.
    Under the proposal, the first-tier customer would be responsible, 
as described above, to implement the cross-waiver with their customers. 
These costs would 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 would 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 would impact a 
substantial number of small entities. To date, the only entities that 
the FAA is aware of currently that fly hosted payloads are NASA and the 
Air Force. We do not know whether in the future there might be small 
entities which would have to implement a cross-waiver with their 
customers, but even if there were a substantial number of small 
entities, the proposal would 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.
    The FAA solicits comments regarding this determination.

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 proposed rule and determined that 
it would 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 $151.0 million in lieu of $100 
million. This proposed 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 proposed 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 1050.1E 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 312f and involves no extraordinary 
circumstances.

V. Executive Order Determinations

A. Executive Order 12866

    See the ``Regulatory Evaluation'' discussion in the ``Regulatory 
Notices and Analyses'' section elsewhere in this preamble.

B. Executive Order 13132, Federalism

    The FAA has analyzed this proposed rule under the principles and 
criteria of Executive Order 13132, Federalism. The agency has 
determined that this action would 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 levels of government, and, therefore, would not have 
Federalism implications.

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

    The FAA analyzed this proposed 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 
would not be a ``significant energy action'' under the executive order 
and would not be likely to have a significant adverse effect on the 
supply, distribution, or use of energy.

VI. Additional Information

A. Comments Invited

    The FAA invites interested persons to participate in this 
rulemaking by

[[Page 1597]]

submitting written comments, data, or views. The agency also invites 
comments relating to the economic, environmental, energy, or federalism 
impacts that might result from adopting the proposals in this document. 
The most helpful comments reference a specific portion of the proposal, 
explain the reason for any recommended change, and include supporting 
data. To ensure the docket does not contain duplicate comments, 
commenters should send only one copy of written comments, or if 
comments are filed electronically, commenters should submit only one 
time.
    The FAA will file in the docket all comments it receives, as well 
as a report summarizing each substantive public contact with FAA 
personnel concerning this proposed rulemaking. Before acting on this 
proposal, the FAA will consider all comments it receives on or before 
the closing date for comments. The FAA will consider comments filed 
after the comment period has closed if it is possible to do so without 
incurring expense or delay. The agency may change this proposal in 
light of the comments it receives.

B. Availability of Rulemaking Documents

    An electronic copy of rulemaking documents may be obtained from the 
Internet by--
    1. Searching the Federal eRulemaking Portal (http://www.regulations.gov);
    2. Visiting the FAA's Regulations and Policies Web page at http://www.faa.gov/regulations_policies or
    3. Accessing the Government Printing Office's Web page at http://www.gpo.gov/fdsys/.
    Copies may also be obtained by sending a request to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue SW., Washington, DC 20591, or by calling (202) 267-9680. 
Commenters must identify the docket or notice number of this 
rulemaking.
    All documents the FAA considered in developing this proposed rule, 
including economic analyses and technical reports, may be accessed from 
the Internet through the Federal eRulemaking Portal referenced in item 
(1) above.

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 proposes to amend 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 to add the definition 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. Revise Sec.  440.17 to read as follows:

Sec.  440.17  Reciprocal waiver of claims requirements.

    (a) As a condition of each license or permit, the licensee or 
permittee must comply with the reciprocal waiver of claims requirements 
of this section.
    (b) The licensee or permittee must implement a reciprocal waiver of 
claims with each of its contractors and subcontractors, each first-tier 
customer and each of the first-tier customer's contractors and 
subcontractors, 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.
    (c) For each licensed or permitted activity in which the U.S. 
Government, any agency, or its contractors and subcontractors is 
involved or where property insurance is required under section 
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 licensed activity, in Appendix C of this part for 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, including the United States but only to the extent 
provided in legislation:
    (i) Waives and releases claims it may have against each other 
party, 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 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 activities, regardless of fault. Licensee and 
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 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 and, for first-
tier customer its customers, by requiring them to waive and release all 
claims they may have against:
    (A) For the contractors and subcontractors 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 the contractors and subcontractors of first-tier 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 the contractors and subcontractors of the United States, 
all

[[Page 1598]]

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 sections 440.9(c) and (e) of 
this part; 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 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 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. The requirement of 
(c)(2)(i) of this section to hold harmless and indemnify the United 
States and its agencies, 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 section 
440.9(e) of this part;
    (C) Claims by a third party for bodily injury or property damage 
exceed the amount of insurance or demonstration of financial 
responsibility required under section 440.9(c) of this part, and do not 
exceed $1,500,000,000 (as adjusted for inflation after January 1, 1989) 
above such amount, and are payable pursuant to the provisions of 51 
U.S.C. 50915 and section 440.19 of this part; or
    (D) Licensee or permittee has no liability for claims exceeding 
$1,500,000,000 (as adjusted for inflation after January 1, 1989) above 
the amount of insurance or demonstration of financial responsibility 
required under section 440.9(c) of this part.
    (ii) Each first-tier customer must hold harmless and indemnify the 
licensee or permitee 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 any of first-tier 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 or permitted activities.
    (iii) The Federal Aviation Administration of the Department of 
Transportation on behalf of the United States and its agencies, but 
only to the extent provided in legislation, must hold harmless and 
indemnify the licensee or permitee, 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 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 section 
440.9(c) and (e) of this part.
    (d) For each licensed or permitted activity in which the U.S. 
Government, any of its agencies, 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, 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, including death, or property damage sustained by space 
flight participant, resulting from licensed or permitted activities, 
regardless of fault;
    (ii) Assume responsibility for bodily injury, including death, or 
property damage, sustained by 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, including death, or property damage, 
sustained by space flight participant, resulting from licensed or 
permitted activities, regardless of fault;
    (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, 
including death, sustained by space flight participant, resulting from 
licensed or permitted activities; and
    (v) Hold harmless the United States and its agencies, servants, 
agents, employees and assignees, or any of them, from and against 
liability, loss or damage arising out of claims for bodily injury, 
including death, or property damage, sustained by space flight 
participant, resulting from licensed or permitted activities, 
regardless of fault, except to the extent that claims result from 
willful misconduct of the United States or its agents.
    (2) The reciprocal waiver of claims must provide that the United 
States:
    (i) Waive and release claims it may have against space flight 
participant for property damage it sustains, and for bodily injury, 
including death, or property damage sustained by its own employees, 
resulting from licensed or permitted activities, regardless of fault;
    (ii) Assume responsibility for property damage it sustains, and for 
bodily injury, including death, or property damage sustained by its own 
employees, resulting from licensed activities, regardless of fault, to 
the extent that claims it would otherwise have for such damage or 
injury exceed the amount of insurance or demonstration of financial 
responsibility required under sections 440.9(c) and (e), respectively, 
of this part;
    (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

[[Page 1599]]

demonstration of financial responsibility required under section 
440.9(e) of this part;
    (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 space flight participant, and to agree to be 
responsible, for any property damage they sustain and for any bodily 
injury, including death, or property damage sustained by their own 
employees, resulting from licensed activities, regardless of fault; 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 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 U.S. 
Government, any of its agencies, 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, 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, including death, or property damage sustained by crew 
member, resulting from licensed or permitted activities, regardless of 
fault;
    (ii) Assume responsibility for bodily injury, including death, or 
property damage, sustained by 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, including death, or property damage, 
sustained by crew member, resulting from licensed or permitted 
activities, regardless of fault;
    (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, 
including death, sustained by crew member, resulting from licensed or 
permitted activities; and
    (v) Hold harmless the United States and its agencies, servants, 
agents, employees and assignees, or any of them, from and against 
liability, loss or damage arising out of claims for bodily injury, 
including death, or property damage, sustained by crew member, 
resulting from licensed or permitted activities, regardless of fault, 
except to the extent that claims result from willful misconduct of the 
United States or its agents.
    (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, including death, or property damage sustained by its own 
employees, resulting from licensed activities, regardless of fault, to 
the extent that claims it would otherwise have for such damage or 
injury exceed the amount of insurance or demonstration of financial 
responsibility required under sections 440.9(c) and (e), respectively, 
of this part;
    (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 section 440.9(e) of this part;
    (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 crew member and to agree to be responsible, for any 
property damage they sustain and for any bodily injury, including 
death, or property damage sustained by their own employees, resulting 
from licensed activities, regardless of fault; 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 crew member and to agree to be responsible, for any 
property damage they sustain, resulting from permitted activities, 
regardless of fault.
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 section 440.17(c) of 
the Commercial Space Transportation Licensing Regulations, 14 CFR 
Ch. III (the ``Regulations''). This agreement applies to the launch 
of [Payload] payload on a [Launch Vehicle] vehicle at [Location of 
Launch Site]. In consideration of the mutual releases and promises 
contained herein, the Parties hereby agree as follows:

1. Definitions

    Contractors and Subcontractors means entities 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 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.
    (c) The United States hereby waives and releases claims it may 
have against Licensee,

[[Page 1600]]

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 sections 440.9(c) and (e), 
respectively, of the Regulations.

3. Assumption of Responsibility

    (a) Licensee and Customer shall each be responsible for Property 
Damage it sustains and for Bodily Injury or Property Damage 
sustained by its own employees, resulting from Licensed Activities, 
regardless of fault. Licensee and Customer shall each hold harmless 
and indemnify each other, the United States, any part 440 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 sections 440.9(c) and (e), 
respectively, of the Regulations.

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

    (a) Licensee shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(a) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
Customer, 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 part 440 
customers, 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 part 440 customers, 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 sections 440.9(c) and (e), respectively, of the Regulations.

5. Indemnification

    (a) Licensee shall hold harmless and indemnify Customer and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them; 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.
    (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 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 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.
    (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, to the extent that claims they would otherwise have for 
such damage or injury exceed the amount of insurance or 
demonstration of financial responsibility required under sections 
440.9(c) and (e), respectively, of the Regulations.

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

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

7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by Licensee, Customer or the United States of any claim by 
an employee of the Licensee, Customer or the United States, 
respectively, including a member of the Armed Forces of the United 
States, for Bodily Injury or Property Damage, resulting from 
Licensed Activities.
    (b) Notwithstanding any provision of this Agreement to the 
contrary, any waiver, release, assumption of responsibility or 
agreement to hold harmless and indemnify herein shall not apply to 
claims for Bodily Injury or Property Damage resulting from willful 
misconduct of any of the Parties, the Contractors and Subcontractors 
of any of the Parties, 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:-------------------------------------------------------------------

[[Page 1601]]

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

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

Associate Administrator for Commercial Space Transportation

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

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

1. Definitions

    Contractors and Subcontractors means entities 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 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.
    (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 sections 440.9(c) and (e), respectively, of the Regulations.

3. Assumption of Responsibility

    (a) Licensee and each Customer shall each be responsible for 
Property Damage it sustains and for Bodily Injury or Property Damage 
sustained by its own employees, resulting from Licensed Activities, 
regardless of fault. Licensee and each Customer shall each hold 
harmless and indemnify each other, the United States, any part 440 
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 sections 440.9(c) and (e), 
respectively, of the Regulations.

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

    (a) Licensee shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(a) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
each Customer, 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 part 440 
customers, 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 part 440 customers, 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 sections 440.9(c) and (e), respectively, of the Regulations.

5. Indemnification

    (a) Licensee shall hold harmless and indemnify each Customer and 
its directors, officers, servants, agents, subsidiaries, employees 
and assignees, or any of them; 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.
    (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 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 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.
    (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

[[Page 1602]]

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

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

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

7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by Licensee, any Customer or the United States of any claim 
by an employee of the Licensee, any Customer or the United States, 
respectively, including a member of the Armed Forces of the United 
States, for Bodily Injury or Property Damage, resulting from 
Licensed Activities.
    (b) Notwithstanding any provision of this Agreement to the 
contrary, any waiver, release, assumption of responsibility or 
agreement to hold harmless and indemnify herein shall not apply to 
claims for Bodily Injury or Property Damage resulting from willful 
misconduct of any of the Parties, the Contractors and Subcontractors 
of any of the Parties, 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 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.
    (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 sections 440.9(c) and (e), 
respectively, of the Regulations.

3. Assumption of Responsibility

    (a) Licensee and Customer shall each be responsible for Property 
Damage it sustains and for Bodily Injury or Property Damage 
sustained by its own employees, resulting from Licensed Activities, 
regardless of fault. Licensee and Customer shall each hold harmless 
and indemnify each other, the United States, any part 440 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. 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

[[Page 1603]]

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 part 440 customers, 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 part 440 customers, 
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 sections 440.9(c) and (e), respectively, of the Regulations.

5. Indemnification

    (a) Licensee shall hold harmless and indemnify Customer and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them; 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.
    (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 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 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.
    (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, to the extent that claims they would otherwise have for 
such damage or injury exceed the amount of insurance or 
demonstration of financial responsibility required under Sec. Sec.  
440.9(c) and (e) of the Regulations.

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

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

7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by Licensee, Customer or the United States of any claim by 
an employee of the Licensee, Customer or the United States, 
respectively, including a member of the Armed Forces of the United 
States, for Bodily Injury or Property Damage, resulting from 
Licensed Activities.
    (b) Notwithstanding any provision of this Agreement to the 
contrary, any waiver, release, assumption of responsibility or 
agreement to hold harmless and indemnify herein shall not apply to 
claims for Bodily Injury or Property Damage resulting from willful 
misconduct of any of the Parties, the Contractors and Subcontractors 
of any of the Parties, 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] (the ``Licensee''); [List of Customers] (with [List of 
Customers] hereinafter referred to in their individual capacity as 
``Customer''); and the Federal Aviation Administration of the 
Department of Transportation, on behalf of the United States 
Government (collectively, the ``Parties''), to implement the 
provisions of section 440.17(c) of the Commercial Space 
Transportation Licensing Regulations, 14 CFR Ch. III (the 
``Regulations''). This agreement applies to the reentry of [Payload] 
payload on a [Reentry Vehicle] vehicle.
    In consideration of the mutual releases and promises contained 
herein, the Parties hereby agree as follows:

1. Definitions

    Contractors and Subcontractors means entities described in Sec.  
440.3 of the Regulations.
    Customer means each above-named Customer.
    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,

[[Page 1604]]

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 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.
    (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 part 440 
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 sections 440.9(c) and (e), 
respectively, of the Regulations.

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

    (a) Licensee shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(a) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
each Customer, 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 part 440 
customers, 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 part 440 customers, 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 sections 440.9(c) and (e), respectively, of the Regulations.

5. Indemnification

    (a) Licensee shall hold harmless and indemnify each Customer and 
its directors, officers, servants, agents, subsidiaries, employees 
and assignees, or any of them; 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.
    (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 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 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.
    (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, to the extent that claims they would otherwise have for 
such damage or injury exceed the amount of insurance or 
demonstration of financial responsibility required under sections 
440.9(c) and (e), respectively, of the Regulations.

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

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

7. Miscellaneous

    (a) Nothing contained herein shall be construed as a waiver or 
release by Licensee, any Customer or the United States of any claim 
by an employee of the Licensee, any Customer or the United States, 
respectively, including a member of the Armed Forces of the United 
States, for Bodily Injury or Property Damage, resulting from 
Licensed Activities.
    (b) Notwithstanding any provision of this Agreement to the 
contrary, any waiver, release, assumption of responsibility or 
agreement to hold harmless and indemnify herein shall not apply to 
claims for Bodily Injury or Property Damage resulting from willful 
misconduct of any of the Parties, the

[[Page 1605]]

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 section 440.17(c) of the Commercial 
Space Transportation Licensing Regulations, 14 CFR Ch. III (the 
``Regulations''). This agreement applies to [describe permitted 
activity]. In consideration of the mutual releases and promises 
contained herein, the Parties hereby agree as follows:

1. Definitions

    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 section 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 section 440.9(e) of the Regulations.

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

    (a) Permittee shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(a) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
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 section 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.

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 section 7(b) of this Agreement, claims 
result from willful misconduct of the United States or its agents; 
(ii) claims for Property Damage sustained by the United States or 
its Contractors and Subcontractors exceed the amount of insurance or 
demonstration of financial responsibility required under section 
440.9(e) of the Regulations; (iii) claims by a Third Party for 
Bodily Injury or Property Damage exceed the amount of insurance or 
demonstration of financial responsibility required under 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 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

[[Page 1606]]

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 
section 440.17(c) of the Commercial Space Transportation Licensing 
Regulations, 14 CFR Ch. III (the ``Regulations''). This agreement 
applies to [describe permitted activity]. In consideration of the 
mutual releases and promises contained herein, the Parties hereby 
agree as follows:

1. Definitions

    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 part 440 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 sections 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 part 440 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 section 440.9(e) of the Regulations.

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

    (a) Permittee shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(a) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
Customer, 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, part 440 
customers, 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, part 440 customers, 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 sections 440.9(c) and (e), respectively, of the Regulations.

5. Indemnification

    (a) Permittee shall hold harmless and indemnify Customer and its 
directors, officers, servants, agents, subsidiaries, employees and 
assignees, or any of them; 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.
    (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 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 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 
Permitted Activities.

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

[[Page 1607]]

extent that: (i) As provided in section 7(b) of this Agreement, 
claims result from willful misconduct of the United States or its 
agents; (ii) claims for Property Damage sustained by the United 
States or its Contractors and Subcontractors exceed the amount of 
insurance or demonstration of financial responsibility required 
under section 440.9(e) of the Regulations; (iii) claims by a Third 
Party for Bodily Injury or Property Damage exceed the amount of 
insurance or demonstration of financial responsibility required 
under 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 section 440.17(c) of the Commercial Space 
Transportation Licensing Regulations, 14 CFR Ch. III (the 
``Regulations''). This agreement applies to [describe permitted 
activity].
    In consideration of the mutual releases and promises contained 
herein, the Parties hereby agree as follows:

1. Definitions

    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 part 440 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 sections 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 part 440 
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 section 440.9(e) of the 
Regulations.

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

    (a) Permittee shall extend the requirements of the waiver and 
release of claims, and the assumption of responsibility, hold 
harmless, and indemnification, as set forth in paragraphs 2(a) and 
3(a), respectively, to its Contractors and Subcontractors by 
requiring them to waive and release all claims they may have against 
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, part 440 
customers, 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, part 440 customers, 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

[[Page 1608]]

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 sections 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.
    (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 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 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 Permitted Activities.

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 section 7(b) of this Agreement, claims 
result from willful misconduct of the United States or its agents; 
(ii) claims for Property Damage sustained by the United States or 
its Contractors and Subcontractors exceed the amount of insurance or 
demonstration of financial responsibility required under section 
440.9(e) of the Regulations; (iii) claims by a Third Party for 
Bodily Injury or Property Damage exceed the amount of insurance or 
demonstration of financial responsibility required under 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) and 
44701(a) in Washington, DC, on January 2, 2015.
Shana Dale,
Deputy Associate Administrator, Commercial Space Transportation.

[FR Doc. 2015-00252 Filed 1-12-15; 8:45 am]
BILLING CODE 4910-13-P
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