SETTLEMENTAGREEMENT
ARRANGEMENTAMIABLE SETTLEMENT AGREEHENT OH
THE CASE CONCERNING THE ACRIALINCIDENT OF
3 ;NLY 1988 BEFORETHE INTERNATIONAL
COURT OF JUSTICE
The Govermant cf the United States of America ("United States")
and the Goverment of the IalamicRepublic of Iran ("Iran"),
Having considered the settlemenm: of the Case Concerningthe
&rial Incident of 3 July 1988 currentlypendiflg beforethe
International Court of Justice ("Courtt')a,nd noting that the
United States recognized the ae:rialincident of 3 July 1988 as a
terrible human tragedy and sxprdçseddeep regret over the Loss of
lives caused bg the incident,
Agree as follows:
1. In fulland final. settle-nt of al1 disputes, differences,
claims, counterclairns and matters dirsctlyor indirectly raistd
by or capable of arising betueen them out of or related to the
Cese Concerningthe Aerial Incidentof 3 July 1988 currently
pendFng bofore the Court I"I.C.,3. Case"), and dlrectly or
indirectlyraised by or capable of arfsing out of or related to
certain cases pending before the Iran-U.S. Clafms Tribunal
deaignsted as "Tribunal Cases+t :.nthe SettlementAgreementon
Certain Clairns Before the Iran-U.S. Claims Tribunal,the United
Sthtes shall pay the SettlementArnount of US $131,800,000 (One
HundtedThirtyOne Millionand lsiqhtHundredThousand U.S.
Dollars) as provfdedin the General ~~réernenton the Settlement
of Certain I.C.3. and Tribunal Cases, nhfch shall ineludeUS
$61,800,000 (SixtyOne Million and Eight Huridred Thousand U.S.
Dollars) for the heirs and legabees of the 248 Iranian victims of
the aerial incident llsted in Annex 1 leHeira"). Compensation to
the Heirs shall bc distributed in accordance wlth the terms and
conditionsset forth inRnnex 2.
2. Upon payment of the Settlemcnt Amount and issuanceof the
Orderof Discontinuanc bey the Court, Iranand its affiliates,
sübsidiarias, agents, agencies,instnrmentalitiesp,redecessors,650 AERIAL INCIUES~I
successorsand assigns shallrelease,quitclaim and forever
discharge the United States and its affiliates, subsidiaries,
agents,agencies, instrumentalities, predecessor sauccessorsand
assigns fcom and against any and al1 clafmswith respect to,
arlsing out of, in connectionwith or related to the I.C.J. Case.
3. Upon paymcnt of the Settlement Amount and issuance of the
Order of Discontinuance by the Court, Iran shall indemnify and
hold harmlesa the United States and its affiliates,subsidiaries,
agents, agencies, instrumentalities, predecessors, successors and
assigns against any clalm, ctrunterclaim, action or proceeding
that Iran, its affiliates,subsidlaries, agents, agencies,
instrumentalities, predecessora, successors and assigns may
raise, assert, initiateor take against the United Stateswith
respect to, arising ut of, in connecti~nwith or related to the
I.C.J. Case.
4. Upon payment of the SettlementAmount and issuance of the
Order of Discontinuance by the Court, Iran and the United States
shall waiveany and al1 claims for costs, includingattorneys'
fees,arisingout of or relatedin any nay to the prosecutionor
defence of any clairn before any forun, including the Court, with
respect to, arfsinq out of, in connection with or relating to Che
I.C.J. Case.
5. ThisSettlement Agreementshall not in any manner prejudice
the rights of the fnsured, their successors and assigns to pursue
their clairns against any insurance Company.
6. This Settlment Agreement ha3 been entered into for the sole
purpose of settling the disputes at issue in the I.C.J. Case.
This Settlement Agreement ahall not constitutea Legalprecedent
and shall not be used except for the purpose of giving effact to
its term.
7. The releases,indemifications and waivera contained in thia
settlementAgreement are self-executingupon the issuance by theCourt of an order dlscontinuinc the I.C.3. Case and recording the
terms cf thisSettlement Agreement.
0. For the purpose of construc-Lion or interpretation of this
Settlement Agreement, the entfre Agreement shall be readand
construed as a whole nithout givinq any speciffc effect to any
paraqraph separately.
9. The representativesof the UnitedStates and Iran hereby
expressly declarethat they are duly emponered to enter into and
execute thia Agreement.
10. This ScttlementAgreement has been written and signed in
both the English and Persian languages and each text shall have
the ssme and equal validlty.
Il. Thia Agreementshall Lake effect upon signature by both
Parties.
Date: . 2, IIPL Date:- 3. n.gk
fAnnexes rlureproduc~dj
Settlement Agreement