Exhibit 10(b)

 

TIME SHARING AGREEMENT

 

This Time Sharing Agreement (“Agreement”), between Northrop Grumman Systems
Corporation (“NGSC”) and Kent Kresa (“Mr. Kresa”), is effective 16 April 2003
and shall terminate on April 1, 2008, unless terminated sooner by either party
pursuant to Article 1 below.

 

This Agreement sets forth the understanding of the Parties as to the terms under
which NGSC will provide Mr. Kresa with the use, on a periodic basis, of the
aircraft currently leased by Northrop Grumman Aviation, Inc. to NGSC. The
aircraft available for Mr. Kresa’s use are described in Exhibit A hereto.

 

The use of the aircraft will at all times be pursuant to and in full compliance
with the requirements of Federal Aviation Regulations (“FAR”) 91.501(b)(6),
91.501(c)(1), and 91.501(d);

 

1.   Term.

 

This Agreement shall remain in force until either party gives the other party
thirty (30) days written notice of its desire to terminate.

 

2.   Use of Aircraft.

 

(a) Mr. Kresa may use the aircraft from time to time, with the permission and
approval of NGSC’s Flight Operations, for any and all purposes allowed by FAR
91.501(b)(6).

 

(b) Mr. Kresa shall provide NGSC’s Flight Operations with notice of his desire
to use the Aircraft and shall provide all pertinent information relevant to the
flight.

 

(c) NGSC shall notify Mr. Kresa as to whether or not the requested use of the
aircraft can be accommodated and, if not, the Parties shall discuss
alternatives.

 

3.   Operation, Management and Control of Aircraft.

 

(a) The Aircraft will, at all times, be operated by and under the control of
pilots and crew provided by NGSC. The pilots will have complete authority and
discretion over the Aircraft, support facilities, and all matters concerning the
preparation and operation of the Aircraft and all factors affecting flight
safety. All persons on board the Aircraft shall comply with all requests and
orders of the flight crew.

 

(b) On Mr. Kresa’s behalf, NGSC will make all necessary take-off, flight, and
landing arrangements.

 

(c) NGSC shall maintain liability insurance for bodily injury and property
damage for the Aircraft in an amount not less than $1 billion combined single
limit liability coverage. Mr. Kresa agrees that the proceeds of such insurance
to which he is entitled shall be deemed to be accepted as Mr. Kresa’s sole
recourse against NGSC for any loss or damage to Mr. Kresa or his employees,
agents, representatives, guests, or invitees, including any loss occasioned by
or due to the gross negligence or willful misconduct of NGSC. Kresa’s sole
recourse against NGSC for any loss or damage to Mr. Kresa or his employees,
agents, representatives, guests, or invitees, including any loss occasioned by
or due to the gross negligence or willful misconduct of NGSC.

 

4.   Cost of Use of Aircraft.

 

(a) In exchange for use of the aircraft, Mr. Kresa shall pay the direct
operating costs of the aircraft. Pursuant to FAR 91.501(d), those costs shall be
limited to the following expenses for each use of the aircraft:

 

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  (i)   Cost of Fuel, Oil and Lubricants;

 

  (ii)   Overnight expenses, if required, for the flight crew;

 

  (iii)   Aircraft ramp and hanger fees;

 

  (iv)   Flight planning and weather contract services;

 

  (v)   landing fees;

 

  (vi)   international fees;

 

  (vii)   an additional charge equal to 100 percent of the expenses listed in
(i) above.

 

(b) NGSC will invoice, and Mr. Kresa will pay, for all appropriate charges.

 

5.   Limitation of Liability.

 

(a) Mr. Kresa agrees that when, in the reasonable view of NGSC’s Flight
Operations or the pilots of the Aircraft, safety may be compromised, NGSC or the
pilots may terminate a flight, refuse to commence a flight, or take other action
necessitated by such safety considerations without liability for loss, injury,
damage, or delay.

 

(b) In no event shall NGSC be liable to Mr. Kresa or his employees, agents,
representatives, guests, or invitees for any claims or liabilities, including
property damage or injury and death, and expenses, including attorney’s fees, in
excess of the amount paid by NGSC’s insurance carrier in the event of such loss.

 

(c) NGSC SHALL IN NO EVENT BE LIABLE TO MR. KRESA OR HIS EMPLOYEES, AGENTS,
REPRESENTATIVES, GUESTS, OR INVITEES FOR ANY INDIRECT, SPECIAL, OR CONSEQUENTIAL
DAMAGES AND/OR PUNITIVE DAMAGES OF ANY KIND OR NATURE UNDER ANY CIRCUMSTANCES OR
FOR ANY REASON INCLUDING ANY DELAY OR FAILURE TO FURNISH THE AIRCRAFT OR CAUSED
OR OCCASIONED BY THE PERFORMANCE OR NON-PERFORMANCE OF ANY SERVICES COVERED BY
THIS AGREEMENT.

 

6.   Entire Agreement.

 

This Time Sharing Agreement constitutes the entire understanding among the
Parties with respect to its subject matter, and there are no representations,
warranties, rights, obligations, liabilities, conditions, covenants, or
agreements other than as expressly set forth herein.

 

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7.   Governing Law.

 

This Time Sharing Agreement shall be interpreted and governed by the laws of the
State of California, excluding California’s conflict of laws rules. The Parties
waive any right to a jury trial.

 

8.   Counterparts.

 

This Time Sharing Agreement may be executed in one or more counterparts, each of
which shall be deemed an original.

 

9.   Severability.

 

In the event that any one or more of the provisions of the Agreement shall for
any reason be held to be invalid, illegal, or unenforceable, those provisions
shall be replaced by provisions acceptable to both Parties to this Agreement

 

TRUTH-IN-LEASING. THE PARTIES CERTIFY THAT TO THE BEST OF THEIR KNOWLEDGE, THE
AIRCRAFT HAS BEEN MAINTAINED AND INSPECTED DURING THE TWELVE MONTHS PRECEDING
THE EXECUTION OF THIS AGREEMENT IN ACCORDANCE WITH PART 91 OF THE FEDERAL
AVIATION REGULATIONS, AND CONTINUES TO BE MAINTAINED AND INSPECTED AS REQUIRED
FOR THE OPERATIONS TO BE CONDUCTED UNDER THIS AGREEMENT. NGSC HEREBY CERTIFIES
THAT IT IS RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT DURING THE TIME
THE AIRCRAFT IS OPERATED PURSUANT TO THIS AGREEMENT AND NGSC IS FAMILIAR WITH
ITS RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION
REGULATIONS, AND THAT AN EXPLANATION OF FACTORS BEARING ON OPERATIONAL CONTROL
AND PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA
FLIGHT STANDARDS DISTRICT OFFICE, GENERAL AVIATION DISTRICT OFFICE OR AIR
CARRIER DISTRICT OFFICE.

 

The Parties, intending that this Agreement be legally binding, have executed
this Agreement by their duly authorized representatives:

 

Northrop Grumman Systems Corporation

     

Kent Kresa

By:  

/s/    J. MICHAEL HATELEY        

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      By:  

/s/    KENT KRESA        

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Name:  

J. Michael Hateley

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      Name:  

Kent Kresa

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Title:  

Corp. VP, HR&A

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      Title:  

Chairman, NOC

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Date:  

16 April 03

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      Date:  

16 April 03

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EXHIBIT A

 

Aircrafts Subject to Time Sharing Agreement

 

Each of the undersigned is a party to the Time Sharing Agreement dated April 1,
2003, by and between Northrop Grumman Systems Corporation (“NGSC”) and Kent
Kresa (collectively the “Parties”), and agrees that from and after the date
below, until this Exhibit A shall be superseded and replaced through agreement
of the Parties or the Time Sharing Agreement shall be terminated pursuant to its
terms, the Aircrafts described below shall constitute the “Aircraft” described
in and subject to the terms of the Time Sharing Agreement.

 

Model

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Manufacturer’s Serial No.

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FAA Registration No.

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Jets

       

GIV-SP

  1485   N5NG

Citation X

  204   N22NG

Citation X

  39   N32NG

Citation Excel

  5133   N23NG

Citation Excel

  5124   N24NG

Citation Excel

  5250   N25NG

Falcon 50

  247   N740R

Falcon 50

  243   N742R

Learjet 35A

  343   N21NG

Turboprops

       

King Air 200

  BB581   N12NG

King Air 200

  BB666   N15NG

King Air 200

  UC2   N19NG

 

Date: 16 April, 2003

 

Northrop Grumman Systems Corporation

     

Kent Kresa

By:  

/s/    J. MICHAEL HATELEY        

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      By:  

/s/    KENT KRESA        

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Name:  

J. Michael Hateley

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

      Name:  

Kent Kresa

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

Title:  

Corp. VP, HR&A

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

      Title:  

Chairman, NOC

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