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TIME SHARING AGREEMENT

Equipment Lease Agreement

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This Equipment Lease Agreement involves

Eli Lilly and Company,

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Title: TIME SHARING AGREEMENT
Governing Law: Indiana     Date: 3/8/2005
Industry: MAJRRX    

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exv10w16
 

EXHIBIT 10.16

TIME SHARING AGREEMENT

This Time Sharing Agreement (this “Agreement”) is made effective as of March 4, 2005 by and between Eli Lilly and Company, an Indiana corporation (“Company”), and Sidney Taurel (“Executive”).

RECITALS

WHEREAS, Company owns or rightfully possesses and operates three (3) Gulfstream Aerospace model G-IV civil aircraft bearing United States Registration Numbers N310EL (S/N 1021), N311EL (S/N 1095) and N312EL (S/N 1105) (individually and collectively, as the context requires, “the Aircraft” or “Aircraft”); and
WHEREAS, Company employs a fully qualified flight crew to operate the Aircraft; and
WHEREAS, Executive is Chairman of the Board and Chief Executive Officer of Company; and
WHEREAS, in order to protect the safety and security of Executive and maximize his availability to carry out his responsibilities, Company’s Board of Directors has adopted a policy that generally requires Executive to travel on the Aircraft for all his air travel, whether on Company business or personal travel; and
WHEREAS, Executive desires to lease the Aircraft from time to time on a time-sharing basis as defined in Section 91.501(c) (1) of the Federal Aviation Regulations (“FARs”) when he is required under the Board’s policy to fly on the Aircraft for personal travel.

NOW, THEREFORE, in consideration of the foregoing, and the other promises contained herein, the parties, intending to be legally bound hereby, agree as follows:

1. Company agrees to lease the Aircraft to Executive on a non-exclusive basis from time to time as mutually agreed between the parties pursuant to the provisions of FAR 91.501(c)(1) and to provide a fully qualified flight crew for all operations conducted under this Agreement. This Agreement shall be effective on the date set forth above and shall remain in effect until terminated by either party upon ten (10) days prior written notice to the other.

 


 

2. (a) Executive shall pay to Company for each flight conducted under this Agreement a lease fee (“Lease Fee”) equal to the actual expenses of each specific flight as authorized by FAR Part 91.501(d) subject to the limitations set forth in subparagraph 2(b) below. Such actual expenses shall include:

 

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Fuel, oil, lubricants, and other additives;

 

 

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Travel expenses of the crew, including food, lodging and ground transportation;

 

 

 

 

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Hangar and tie-down costs away from the Aircraft’s base of operation;

 

 

 

 

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Insurance obtained for the specific flight;

 

 

 

 

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Landing fees, airport taxes and similar assessments;

 

 

 

 

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Customs, foreign permits, and similar fees directly related to the flight;

 

 

 

 

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In-flight food and beverages;

 

 

 

 

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Passenger ground transportation; and

 

 

 

 

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Flight planning and weather contract services.

 

 

(b) Notwithstanding the foregoing, in no event shall Executive be obligated to pay Company a Lease Fee in excess of the greater of (x) or (y) below, where:

 

(x)  

equals the applicable subsection (i) or (ii) below:

 

 

(i)  

For travel between cities served by regularly scheduled first class commercial airline service, an amount equal to the published cost of the lowest first class airfare available to the general public, which will be solicited within one business day of the date the Executive requests the specific flight, for the dates traveled multiplied by the number of persons in Executive’s party for the flight; or

 

 

(ii)  

For travel between cities served by regularly scheduled coach or business class, but not first class commercial airline service, an amount equal to the published cost of the lowest unrestricted coach (or, if available, business class) airfare available to the general public, which will be solicited within one business day of the date the Executive requests the specific flight, for

 

 

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