1. ARIANESPACE PROPRIETARY / PRIVILEGED PROJECT 2 00 1 PLUS WORKSHOP 29/30 January 2004 Towards a harmonised approach for National Space laws in Europe CdP - Project 2001 Plus Workshop - Berlin 29/30 January 2004

2. ARIANESPACE PROPRIETARY / PRIVILEGED PROJECT 2 00 1 PLUS WORKSHOP 29/30 January 2004 Allocation of Potential Liabilities and risks in Launch Services Agreements Claude-Alain du Parquet Arianespace Legal Department CdP - Project 2001 Plus Workshop - Berlin 29/30 January 20042

3. CdP - Project 2001 Plus Workshop - Berlin 29/30 January 2004 3 ARIANESPACE PROPRIETARY / PRIVILEGED Launch Services Agreements Third Party Liability First Party Liability Introduction

4. CdP - Project 2001 Plus Workshop - Berlin 29/30 January 2004 4 ARIANESPACE PROPRIETARY / PRIVILEGED Main features of launch activities Very high level of investments: Launch vehicles development and manufacturing  Launch facilities Inherently risky and random activity Many public and private entities involved Launch vehicles development and manufacturing  Launch facilities

5. CdP - Project 2001 Plus Workshop - Berlin 29/30 January 2004 5 ARIANESPACE PROPRIETARY / PRIVILEGED CONSEQUENCES Space activities imply very high cost for all parties. Space activities are risky activities where any and all participants may cause to each other or suffer from each other direct or indirect important property (or bodily) damages So that redundant demand for insurance is likely to happen, with the result that Finding sufficient insurance capacity may prove difficult.

6. CdP - Project 2001 Plus Workshop - Berlin 29/30 January 2004 6 ARIANESPACE PROPRIETARY / PRIVILEGED Translation into Launch Services Agreement (I) Launch definition Contractual obligation fulfilled at Launch defined as the moment when launch operation have become irreversible For ARIANE 5 this is the instant of the order of ignition of solid propellant booster(s) provided such order follows ignition of the Vulcain engine

7. CdP - Project 2001 Plus Workshop - Berlin 29/30 January 2004 7 ARIANESPACE PROPRIETARY / PRIVILEGED Translation into Launch Services Agreement (II) Allocation of liabilities and risks Inter Party waiver of Liabilities between: Arianespace and its customer and their Associates The manufacturers of L/V and Satellite and their contractors and subcontractors National or international public authorities directly or indirectly involved in connection with Arianespace or customer’s activities  Insurers, bankers involved in the launch Hold Harmless Clause Each party guarantees the other against actions from its Associates

8. CdP - Project 2001 Plus Workshop - Berlin 29/30 January 2004 8 ARIANESPACE PROPRIETARY / PRIVILEGED Advantages of this system Allowed the development of launch activities as it limited the liabilities of the parties involved in launch activities to a reasonable level. Allows a clear distinction between launch phase and ground insurance (launch abort) Allows an optimized and watertight coverage of all risks as each party exactly knows which insurance it has to take out. Avoids redundant demand for insurance Safeguards insurance market capacity

9. CdP - Project 2001 Plus Workshop - Berlin 29/30 January 2004 9 ARIANESPACE PROPRIETARY / PRIVILEGED Need for domestic space laws The clauses above described have been adopted by the community of space actors and are compatible with French Law. In that respect a French Space Law endorsing the principles above is not an absolute need. However, as many other countries have adopted space laws dealing with those matters, in particular the USA with the Commercial Space Activities law, enacting such a law in France would allow Arianespace to be in an equal position when competing with US companies. legislative action in Europe in that domain should be coordinated at ESA level.