Document:

Exhibit
10.31

 

TIME
SHARING AGREEMENT

 

This Time Sharing Agreement (this “Agreement”)
is dated as of                              ,
2005 by and between Abbott Laboratories, Inc. (“Company”), and                              
(“Executive”).

 

RECITALS

 

WHEREAS, Company owns or rightfully possesses and
operates one (1) Raytheon Aircraft Company Hawker 800XP aircraft bearing United
States Registration Number N700MG and manufacturer’s serial number 258540, one
(1) Raytheon Aircraft Company Beechcraft King Air 300 aircraft bearing United
States Registration Number N400AL and manufacturer’s serial number FL-428 and
two (2) Gulfstream Aerospace G-IV aircraft bearing United States
Registration Numbers N800AL and N900AL and manufacturer’s serial numbers 1340
and 1097, respectively (individually and collectively, as the context requires,
the “Aircraft”);

 

WHEREAS, Company employs a fully qualified flight
crew to operate the Aircraft; and

 

WHEREAS, Executive is                              
of Abbott Laboratories, an Illinois Corporation (“Abbott”) and the parent
corporation of Company; and

 

WHEREAS, in order to protect the safety and security
of Executive and maximize his/her availability to carry out his/her
responsibilities, Abbott’s Board of Directors has adopted a policy that
generally requires Executive to travel on the Aircraft for all his/her air
travel, whether on Abbott business or personal travel; and

 

WHEREAS, Executive desires to lease the Aircraft from
time to time on a time sharing basis as defined in Sections 91.501(b)(6)
and (c)(1) of the Federal Aviation Regulations (“FARs”) when he/she 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(b)(6) and (c)(1) and to
provide a fully qualified flight crew for all operations conducted under this
Agreement. This Agreement shall remain in effect until terminated by either
party upon ten (10) days prior written notice to the other.

 

2. (a) Except as further limited by
subparagraph 2(b) of this Agreement, 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)
except as such amount may be further limited by subparagraph 2(b) below. Such
actual expenses shall include:

 

(i) Fuel, oil, lubricants,
and other additives;

 

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

 

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

 

 

(iv) Insurance obtained for
the specific flight;

 

(v) Landing fees, airport
taxes and similar assessments;

 

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

 

(vii) In-flight food and
beverages;

 

(viii) Passenger ground
transportation; and

 

(ix) Flight planning and
weather contract services.

 

(b) Notwithstanding the amount of the
actual expenses set forth in subparagraph 2(a) of this Agreement, 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 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
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 the dates traveled multiplied by
the number of persons in Executive’s party for the flight; and

 

(y) equals the amount of
income that would be imputed to Executive for the flight under the applicable
Standard Industry Fare Levels as set forth in 26 C.F.R. §1.61-21(g) assuming
that Executive did not pay the Lease Fee.

 

For purposes of the foregoing computation, if
a city is not served by regularly scheduled commercial airline service, the
foregoing provisions shall be applied utilizing a city selected by Company as
close as reasonably practicable to the city without such service. Company’s
determination of the Lease Fee shall be conclusive. Prior to any proposed
flight, Company shall provide Executive with an estimate of the Lease Fee for
the particular flight. If Executive proceeds with the proposed flight, he/she
shall be obligated to pay the Lease Fee. Executive shall also be responsible to
pay, together with any Lease Fee, applicable state and federal taxes
(including, without limitation, federal excise taxes). If Executive declines
the proposed flight, neither Executive nor Company shall have any further
obligation with respect to the proposed flight.

 

3. Company will pay all expenses related to
the operation of the Aircraft when incurred, and will provide an invoice to
Executive for the Lease Fee determined in accordance with paragraph 2 above after
any flight or flights for the account of Executive. Executive shall pay Company
the Lease Fee, together with applicable taxes.

 

2

 

4. Executive will provide Company with
requests for flight time and proposed flight schedules as far in advance of any
given flight as possible, and in any case, at least two (2) business days
in advance of Executive’s planned departure (unless Company agrees to a shorter
notice in a particular case in its discretion). Requests for flight time shall
be in a form, whether written or oral, mutually convenient to, and agreed upon
by the parties. In addition to the proposed schedules and flight times,
Executive shall provide at least the following information for each proposed flight
prior to scheduled departure as required by the Company or Company’s flight
crew:

 

(a) proposed departure
point;

 

(b) destination;

 

(c) date and time of flight;

 

(d) the number, name, and
relationship to the Executive of anticipated passengers;

 

(e) the nature and extent of
luggage and/or cargo to be carried;

 

(f) the date and time of
return flight, if any; and

 

(g) any other information
concerning the proposed flight that may be pertinent or required by Company or
Company’s flight crew.

 

5. Company shall have final authority over
the scheduling of the Aircraft, provided, however, that Company will use
reasonable efforts to accommodate Executive’s requests and to avoid conflicts
in scheduling. It is understood that Company shall not be obligated to retain
or contract for additional flight crew or maintenance personnel or equipment in
order to accommodate Executive’s schedule requests.

 

6. Company shall be solely responsible for
securing maintenance, preventive maintenance and required or otherwise necessary
inspections on the Aircraft, and shall take such requirements into account in
scheduling the Aircraft. No period of maintenance, preventative maintenance or
inspection shall be delayed or postponed for the purpose of scheduling the
Aircraft, unless said maintenance or inspection can be safely conducted at a
later time in compliance with all applicable laws and regulations, and within
the sound discretion of the pilot in command. The pilot in command shall have
final and complete authority to cancel any flight for any reason or condition
that in his or her judgment would compromise the safety of the flight.

 

7. Company shall ensure that for each flight
conducted under this Agreement, the Aircraft will be under the command of a
qualified flight crew. All flight operations by or on behalf of Executive under
this Agreement shall be conducted under Part 91 of the FAR. The Company
shall have and exercise exclusive operational control of the Aircraft during
all phases of all flights under this Agreement, including, without limitation,
all flights during which Executive, and/or his/her guests, designees, or
property are on-board the Aircraft.

 

8. In accordance with applicable FARs, the
qualified flight crew provided by Company will exercise all of its duties and
responsibilities in regard to the safety of each flight conducted hereunder.
Executive specifically agrees that the flight crew, in its sole discretion, may
terminate any flight, 

 

3

 

refuse to commence any flight, or take other
action that in the considered judgment of the pilot in command is necessitated
by considerations of safety. No such action of the pilot in command shall
create or support any liability for loss, injury, damage or delay to Executive or
any other person. The parties further agree that Company shall not be liable
for delay or failure to furnish the Aircraft and crew pursuant to this
Agreement for any reason whatsoever.

 

9. Company will maintain or cause to be maintained in full force and effect
throughout the term of this Agreement aircraft liability insurance in respect
of the Aircraft.  Such insurance shall
(i) name Executive as an additional insured; (ii) contain a waiver of
subrogation against Executive; (iii) shall provide that if the insurers cancel
such insurance for any reason whatsoever, if the insurance is not renewed due
to non-payment of premium or if there is any material change in policy terms
and conditions, such cancellation, change or lapse shall not be effective as to
Executive unless Executive has been provided with at least thirty (30) days
prior written notice.  Company will
provide such additional insurance coverage as Executive shall request or
require, provided, however, that the cost of such additional insurance shall be
borne by Executive as set forth in paragraph 2.

 

10. Executive warrants that:

 

(a)  He/she will use the Aircraft for and on
account of his/her own business or personal use only, and will not use the
Aircraft for the purpose of providing transportation of passengers or cargo in
air commerce for compensation or hire;

 

(b) He/she will refrain from
incurring any mechanics or other lien in connection with inspection,
preventative maintenance, maintenance or storage of the Aircraft, whether
permissible or impermissible under this Agreement, nor shall there be any
attempt by Executive to convey, mortgage, assign, lease or any way alienate the
Aircraft or create any kind of lien or security interest involving the Aircraft
or do anything or take any action that might mature into such a lien; and

 

(c) During the term of this
Agreement, he/she will, and will cause any passengers in his/her party to,
abide by and conform to all such laws, governmental and airport orders, rules
and regulations, as shall from time to time be in effect relating in any way to
the operation and use of the Aircraft by a time sharing lessee.

 

11. The Company assumes and shall bear the
entire risk of loss, theft, confiscation, damage to, or destruction of the
Aircraft. The Company shall release, indemnify, defend and hold harmless the
Executive and his/her heirs, executors and personal representatives from and
against any and all losses, liabilities, claims, judgments, damages, fines,
penalties, deficiencies and expenses (including, without limitation, reasonable
attorneys fees and expenses) incurred or suffered by Executive on account of a
claim or action made or instituted by a third person arising out of or
resulting from operations of the Aircraft hereunder and/or any services
provided by the Company to Executive hereunder, except to the extent
attributable to the gross negligence or willful misconduct of Executive or
his/her guests on the Aircraft.

 

12. For purposes of this Agreement, the
permanent base of operation of the Aircraft shall be Waukegan, Illinois.

 

4

 

13. Neither this Agreement nor any party’s
interest herein shall be assignable to any other party whatsoever. This
Agreement shall inure to the benefit of and be binding upon the parties hereto,
and their respective heirs, representatives and successors.

 

14. This Agreement constitutes the entire
agreement of the parties with respect to the time-share of the Aircraft as set
forth herein. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Illinois.

 

[REMAINDER
OF PAGE INTENTIONALLY BLANK]

 

5

 

15. TRUTH IN LEASING STATEMENT

 

THE AIRCRAFT HAVE BEEN MAINTAINED AND
INSPECTED UNDER FAR PART 91.409(f)(3) DURING THE 12 MONTH PERIOD (OR SUCH
SHORTER PERIOD AS THE AIRCRAFT HAS BEEN OPERATED BY COMPANY) PRECEDING THE DATE
OF THIS LEASE.

 

THE AIRCRAFT WILL BE MAINTAINED AND INSPECTED
UNDER FAR PART 91.409(f)(3) FOR OPERATIONS TO BE CONDUCTED UNDER THIS LEASE.

 

ABBOTT LABORATORIES, INC., A DELAWARE
CORPORATION, IS CONSIDERED RESPONSIBLE FOR OPERATIONAL CONTROL OF ALL AIRCRAFT
IDENTIFIED AND TO BE OPERATED UNDER THIS LEASE. I, THE UNDERSIGNED,                                          ,
AS                                          
OF ABBOTT LABORATORIES, INC. CERTIFY THAT ABBOTT LABORATORIES, INC. IS
RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT FOR OPERATIONS TO BE
CONDUCTED UNDER THIS LEASE AND THAT IT UNDERSTANDS ITS RESPONSIBILITIES FOR
COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS.

 

AN EXPLANATION OF FACTORS BEARING ON
OPERATIONAL CONTROL AND PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED
FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE.

 

THE ADDRESS OF ABBOTT LABORATORIES, INC. IS:

 

2900 West Aviation Drive

Waukegan, IL 60087

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first above written.

 

	
  ABBOTT LABORATORIES, INC.

  	
   

  	
  EXECUTIVE:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  	
  of

  
	
   

  	
   

  	
   

  	
  Abbott Laboratories

  
												

 

6Exhibit 4.3

 

SECOND SUPPLEMENTAL INDENTURE

 

dated as of March 18,
2004

 

among

 

K. HOVNANIAN
ENTERPRISES, INC.

 

HOVNANIAN
ENTERPRISES, INC.

 

The Other
Guarantors Party Hereto

 

and

 

WACHOVIA BANK,
NATIONAL ASSOCIATION,

 

as Trustee

 

 

61⁄2% Senior
Notes due 2014

 

 

THIS SECOND SUPPLEMENTAL
INDENTURE (this “Second Supplemental Indenture”), entered into as of March 18,
2004, among K. Hovnanian Enterprises, Inc., a California corporation (the “Issuer”),
Hovnanian Enterprises, Inc. (the “Hovnanian”), each of the entities listed
on Schedule I hereto (each an “Undersigned”) and Wachovia Bank, National
Association (formerly known as First Union National Bank), as trustee (the “Trustee”).

 

RECITALS

 

WHEREAS,
the Issuer, the Company, the Guarantors party thereto and the Trustee entered
into the Indenture dated as of November 3, 2003, as supplemented by the
First Supplemental Indenture dated as of November 3, 2003 (as
supplemented, the “Indenture”), relating to the Issuer’s 61⁄2% Senior Notes due
2014 (the “Notes”);

 

WHEREAS,
as a condition to the purchase of the Notes by the Holders, Hovnanian agreed
pursuant to the Indenture to cause any newly acquired or created Restricted
Subsidiaries to provide Guarantees of the Notes, subject to certain
limitations.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants herein
contained and intending to be legally bound, the parties hereto hereby agree as
follows:

 

SECTION 1.                                Capitalized
terms used herein and not otherwise defined herein are used as defined in the
Indenture.

 

SECTION 2.                                Each
Undersigned, by its execution of this Second Supplemental Indenture, agrees to
be a Guarantor under the Indenture and to be bound by the terms of the
Indenture applicable to Guarantors, including, but not limited to, Article Thirteen
of the Base Indenture and Article 5 of the First Supplemental
Indenture.  Each Undersigned will also
execute a Guarantee Notation in respect of the Notes.

 

SECTION 3.                                This
Second Supplemental Indenture shall be governed by and construed in accordance
with the laws of the State of New York.

 

SECTION 4.                                This
Second Supplemental Indenture may be signed in various counterparts which
together will constitute one and the same instrument.

 

SECTION 5.                                This
Second Supplemental Indenture is an amendment supplemental to the Indenture and
the Indenture and this Second Supplemental Indenture will henceforth be read
together.

 

[signature page follows]

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Second Supplemental
Indenture to be duly executed as of the date first above written.

 

 

	
   

  	
  K. HOVNANIAN
  ENTERPRISES, INC.,

  
	
   

  	
  as Issuer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PETER S.
  REINHART

  	
   

  
	
   

  	
   

  	
  Name: Peter S.
  Reinhart

  
	
   

  	
   

  	
  Title: Senior
  Vice President and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HOVNANIAN
  ENTERPRISES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PETER S. REINHART

  	
   

  
	
   

  	
   

  	
  Name: Peter S.
  Reinhart

  
	
   

  	
   

  	
  Title: Senior
  Vice President and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  On behalf of each
  of the entities listed on

  Schedule I hereto

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PETER S.
  REINHART

  	
   

  
	
   

  	
   

  	
  Name: Peter S.
  Reinhart

  
	
   

  	
   

  	
  Title: Senior
  Vice President and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WACHOVIA BANK,
  NATIONAL

  ASSOCIATION,

  
	
   

  	
  as Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ STEPHANIE
  ROCHE

  	
   

  
	
   

  	
   

  	
  Name: Stephanie
  Roche

  
	
   

  	
   

  	
  Title: Vice
  President

  
					

 

 

	
  GUARANTORS

  	
   

  	
  State of

  Incorporation or

  Formation

  
	
  K. HOVNANIAN AT OCEAN
  TOWNSHIP, INC.

  	
   

  	
  NJ

  
	
  K. HOVNANIAN
  CONSTRUCTION II, INC.

  	
   

  	
  NJ

  
	
  K. HOVNANIAN
  CONSTRUCTION III, INC.

  	
   

  	
  NJ

  
	
  K. HOVNANIAN AT ACQUA
  VISTA, L.L.C.

  	
   

  	
  CA

  
	
  K. HOVNANIAN AT
  EDGEWATER II, L.L.C.

  	
   

  	
  NJ

  
	
  K. HOVNANIAN AT
  HACKETTSTOWN II, L.L.C.

  	
   

  	
  NJ

  
	
  K. HOVNANIAN AT MONROE
  III, L.L.C.

  	
   

  	
  NJ

  
	
  K. HOVNANIAN AT NORTH
  CALDWELL, L.L.C.

  	
   

  	
  NJ

  
	
  K. HOVNANIAN AT
  PHILADELPHIA, L.L.C.

  	
   

  	
  PA

  
	
  K. HOVNANIAN
  INVESTMENTS, L.L.C.

  	
   

  	
  NJ

  
	
  K. HOVNANIAN SUMMIT
  HOMES OF PENNSYLVANIA, L.L.C.

  	
   

  	
  PA

  
	
  K. HOVNANIAN WINDWARD
  HOMES, L.L.C.

  	
   

  	
  FL

  
	
  K. HOVNANIAN’S FOUR
  SEASONS AT ASHBURN VILLAGE, L.L.C.

  	
   

  	
  VA

  
	
  HOVNANIAN LAND
  INVESTMENT GROUP, L.L.C.

  	
   

  	
  MD

  
	
  M & M AT
  ROBERT MORRIS, L.L.C.

  	
   

  	
  NJ

  
	
  M & M AT SOUTH
  BOUND BROOK, L.L.C.

  	
   

  	
  NJ

  
	
  PADDOCKS, L.L.C.

  	
   

  	
  MD

  
	
  WASHINGTON HOMES AT
  CAMP SPRINGS, L.L.C.

  	
   

  	
  MD

  
	
  WASHINGTON HOMES AT
  FOREST RUN, L.L.C.

  	
   

  	
  MD

  
	
  WASHINGTON HOMES AT
  LAUREL HIGHLANDS, L.L.C.

  	
   

  	
  VA

  
	
  WASHINGTON HOMES AT
  RENAISSANCE PLAZA, L.L.C.

  	
   

  	
  MD

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