<SEC-DOCUMENT>0001214659-21-003437.txt : 20210325
<SEC-HEADER>0001214659-21-003437.hdr.sgml : 20210325
<ACCEPTANCE-DATETIME>20210325160228
ACCESSION NUMBER:		0001214659-21-003437
CONFORMED SUBMISSION TYPE:	PX14A6G
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20210325
DATE AS OF CHANGE:		20210325
EFFECTIVENESS DATE:		20210325

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ELI LILLY & Co
		CENTRAL INDEX KEY:			0000059478
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				350470950
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PX14A6G
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-06351
		FILM NUMBER:		21772294

	BUSINESS ADDRESS:	
		STREET 1:		LILLY CORPORATE CTR
		STREET 2:		DROP CODE 1094
		CITY:			INDIANAPOLIS
		STATE:			IN
		ZIP:			46285
		BUSINESS PHONE:		3172762000

	MAIL ADDRESS:	
		STREET 1:		LILLY CORPORATE CENTER
		STREET 2:		DROP CODE 1094
		CITY:			INDIANAPOLIS
		STATE:			IN
		ZIP:			46285

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	LILLY ELI & CO
		DATE OF NAME CHANGE:	19941024

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UAW Retiree Medical Benefits Trust
		CENTRAL INDEX KEY:			0001480561
		IRS NUMBER:				900424876
		STATE OF INCORPORATION:			XX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PX14A6G

	BUSINESS ADDRESS:	
		STREET 1:		200 WALKER STREET
		CITY:			DETROIT
		STATE:			MI
		ZIP:			48207
		BUSINESS PHONE:		313-324-5928

	MAIL ADDRESS:	
		STREET 1:		200 WALKER STREET
		CITY:			DETROIT
		STATE:			MI
		ZIP:			48207
</SEC-HEADER>
<DOCUMENT>
<TYPE>PX14A6G
<SEQUENCE>1
<FILENAME>p325212px14a6g.htm
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTICE OF EXEMPT SOLICITATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NAME OF REGISTRANT: </B>Eli Lilly and Company</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NAME OF PERSON RELYING ON EXEMPTION: </B>Trinity Health</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ADDRESS OF PERSON RELYING ON EXEMPTION: </B>Trinity Health c/o 766
Brady Ave., Apt 635, Bronx, NY 10462</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NAME OF PERSON RELYING ON EXEMPTION: </B>Shareholder Association
for Research &amp; Education</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ADDRESS OF PERSON RELYING ON EXEMPTION:</B> Suite 257, 401 Richmond
Street West, Toronto, ON MSV 3A8</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NAME OF PERSON RELYING ON EXEMPTION: </B>UAW Retiree Medical Benefits
Trust</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ADDRESS OF PERSON RELYING ON EXEMPTION: </B>P.O. Box 14309, Detroit,
MI 48214-0309</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Written materials are submitted pursuant to Rule 14a-6(g)(1) promulgated
under the Securities Exchange Act of 1934. Submission is not required of this filer under the terms of the Rule but is made voluntarily
in the interest of public disclosure and consideration of this important issues. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">March 25, 2021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Eli Lilly and Company</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Shareholder Proposals for Independent Chair,
Clawback Disclosure, and Bonus Deferral</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear Fellow Eli Lilly Shareholders:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Please vote at the May 3, 2021 annual meeting of Eli Lilly and Company
(NYSE: LLY, &ldquo;Eli Lilly&rdquo;) FOR the following three shareholder resolutions designed to promote accountability and robust oversight:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>The Independent Chair Proposal (Item 7) </B>submitted by the Shareholder Association for Research and Education</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>The Bonus Deferral Proposal (Item 8) </B>submitted by the UAW Retiree Medical Benefits Trust</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><B>The Clawback Disclosure Proposal (Item 9) </B>submitted by Trinity Health</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Eli Lilly stands at a critical juncture, given the business risks
created by the rising prices of the company&rsquo;s insulin products and allegations of anti-competitive pricing behavior in the insulin
market. We urge shareholders to clearly signal to the Eli Lilly board that the long-term financial and reputational risks of its current
strategy outweigh any short-term financial benefits, by voting FOR Proposals 7, 8 and 9 to require an independent chair, implement a
bonus deferral arrangement, and adopt a clawback disclosure policy.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">These reforms were originally recommended to Eli Lilly by the Investors
for Opioid Accountability (&ldquo;IOPA&rdquo;), a diverse investor coalition that includes 64 state treasurers, publicly elected comptrollers,
asset managers, and faith-based, public, and labor funds with collective AUM of $4.4 T. The coalition was established in response to concerns
about the risks created by pharmaceutical company conduct and the three sponsors of these proposals are members of the IOPA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ELI LILLY FACES FINANCIAL, LEGAL AND REPUTATIONAL RISKS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As one of the three primary insulin makers worldwide, Eli Lilly faces
substantial financial, legal and reputational risks stemming from allegations that it has engaged in anti-competitive pricing and related
behavior in the insulin market. According to Eli Lilly&rsquo;s most recent 10-K, these include lawsuits in both state and federal court,
which allege that the company (along with the other insulin makers) violated various state consumer protection laws and the federal Racketeer
Influenced and Corrupt Organizations (RICO) Act, as well as engaged in common law fraud, and unjust enrichment.<SUP>1</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Specifically, a purported class action has been filed in the U.S. District
Court for the District of New Jersey against Eli Lilly, Sanofi, Novo Nordisk, CVS, Express Scripts, and Optum, for alleged violations
of anti-trust law.<SUP>2</SUP> Additionally, the Kentucky Attorney General&rsquo;s Office has filed a complaint against Eli Lilly, Sanofi,
and Novo Nordisk in Kentucky state court, alleging violations of the Kentucky consumer protection law, false advertising, and unjust enrichment.<SUP>3</SUP>
Further, Harris County, Texas, initiated litigation in federal court in the Southern District of Texas against Eli Lilly, Sanofi, Novo
Nordisk, Express Scripts, CVS, Optum alleging violations of the federal RICO Act, federal and state anti-trust law, the Texas deceptive
trade practices-consumer protection act, and common law claims such as fraud, unjust enrichment, and civil conspiracy related to the company&rsquo;s
insulin products and Trulicity.<SUP>4</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Along with these litigation-associated risks, Eli Lilly has also received
subpoenas from the New York and Vermont Attorney General Offices and civil investigative demands from the Washington, New Mexico, and
Colorado Attorney General Offices relating to the pricing and sale of its insulin products.<SUP>5</SUP> Additionally, the Offices of the
Attorney General in California, Mississippi, Washington D.C., California, Florida, Hawaii, and Nevada have sent the company information
requests related to insulin sales and pricing.<SUP>6</SUP> At the federal level, Eli Lilly has received two information requests from
the House of Representatives&rsquo; Committee on Energy and Commerce and another request from the Senate&rsquo;s Committee on Health,
Education, Labor, and Pensions related to the pricing of insulin products. <SUP>7</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">These legal challenges and investigations have generated substantial
media attention, which raise concerns about reputational and financial harm to the company and its shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">_____________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>1</SUP> <I>See</I> Eli Lilly&rsquo;s 2020 Annual Report on Form
10-K, at 107. (https://www.sec.gov/ix?doc=/Archives/edgar/data/59478/000005947821000083/lly-20201231.htm).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>2</SUP> <I>See FWK Holdings, LLC v. Novo Nordisk Inc..</I>; <I>Rochester
Drug Co-Operative Inc. v. Eli Lilly &amp; Co.</I>; and <I>Value Drug Co. v. Eli Lilly &amp; Co.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>3</SUP> <I>See Commonwealth of Kentucky v. Novo Nordisk, Inc.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>4</SUP> <I>See County of Harris Texas v. Eli Lilly &amp; Co.,
et al.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>5</SUP> <I>See </I>2020 Form 10-K, at 107.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>6</SUP> <I>Id</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>7</SUP> <I>Id</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>We urge you to Vote FOR an INDEPENDENT BOARD CHAIR (Item 7)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We believe that an independent board chair will improve accountability
and oversight of material risks at Eli Lilly. A structure where the CEO runs the business and is accountable to a board led by an independent
chair is in the best interests of the company&rsquo;s shareholders for the following reasons:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><U>Eliminates Structural Conflicts of Interest in Dual Role</U>. The CEO of the company should not be his or her own boss. An independent
board chair eliminates this structural conflict of interest and clarifies where the authority of the CEO ends and responsibility of the
independent board members begins. Further, management of a complex global pharmaceutical company is a full-time job. It is unrealistic
&ndash; and needlessly complicated -- to expect one person to perform well as CEO on top of his or her responsibilities for leading the
board.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><U>Board Failure to Oversee Material Risks</U>. In light of significant legal, regulatory, financial and reputational risks, we are
concerned that the board is not providing sufficiently robust oversight of the company&rsquo;s culture, strategy, and risk management.
Although management notes the involvement of independent directors in recent efforts related to drug pricing and access, it is not clear
from board committee roles that this oversight is performed solely by independent directors.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><U>Absence of Important Governance Provisions</U>. An independent board chair would be especially useful at Eli Lilly, as its shareholders
do not have common &ndash; yet critical &ndash; investor rights that provide additional accountability: the right to elect all directors
on an annual basis and the right to amend the company&rsquo;s articles of incorporation with the vote of a majority of the outstanding
shares. Under Eli Lilly&rsquo;s articles of incorporation, approval of 80 percent of its outstanding shares is required to adopt these
provisions. The company has put management proposals to adopt these provisions up for a shareholder vote several times (including at this
year&rsquo;s annual meeting). To date, those proposals have garnered strong majority support but have fallen short of the requisite threshold
of 80 percent of outstanding shares.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Management at Eli Lilly suggests that the proposal to require an independent
board chair imposes a &ldquo;one-size-fits-all&rdquo; approach to leadership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Shareholders, however, are being asked to vote on the appropriate leadership structure at Eli Lilly specifically. Investors may disagree
about whether an independent board chair is considered the best governance practice at all companies. However, independent board leadership
is clearly important when a company is in the midst of the kind of legal scrutiny and pressure facing Eli Lilly.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Further, the board points to a self-selected peer group of companies as evidence that a combined Chair/CEO role is common in its industry,
in effect simultaneously arguing that there should be &ldquo;no &lsquo;one-size-fits-all&rsquo; approach to board leadership&rdquo; and
that its &ldquo;leadership structure is consistent with market practice&rdquo; adopted by other companies.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Eli Lilly management suggests that the non-binding proposal to require
an independent board chair limits the board&rsquo;s &ldquo;flexibility&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>




<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Eli Lilly shareholders are fully within their rights &ndash; as those who elect the directors &ndash; to endorse governance reforms
that they believe will best protect their interests.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Indeed, shareholders have voted across markets to institute many other reforms that limited the board&rsquo;s &ldquo;flexibility&rdquo;
yet improved governance at the companies that adopted them. Notably, the presence of a majority of independent directors, which is raised
by the Eli Lilly board as a positive attribute of its board, is a requirement imposed by outside regulation which limits the board&rsquo;s
ability to flexibly determine its own make-up, yet is widely considered to be a positive change in governance practices at US firms.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Company bylaws, by their nature, limit the board&rsquo;s flexibility in distinct areas, but those specific limits are necessary to
ensure that directors and managers are accountable and that risks are appropriately managed. This proposal seeks to amend company bylaws
to include one more measure of accountability: a prospective requirement that the chair of the Board of Directors, whenever possible,
be an independent member of the board.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The limits to &ldquo;flexibility&rdquo; here are not strategic, operational, or decision-making limits, but structural. The board
retains its strategic flexibility, within a structure that creates accountability.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Management suggests that &ldquo;having one individual serve as both
chairman and CEO provides the board with deep insights to drive long-term strategy and execution and allows consistent communication throughout
the company.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>There is no reason why the CEO&rsquo;s insights and communication cannot or should not be shared with an independently led board.
The difference, should the shareholder proposal be implemented, is that those insights will then be subjected to review and oversight
by a board led by an independent chair, rather than by a board led by the same person whose insights are being considered.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>As noted in the shareholder proposal, according to a 2019 survey of over 700 directors by PWC, 57% of directors surveyed who sit on
a board with a combined Chair/CEO say it is difficult to voice dissent&mdash;a 37% higher result than on boards with an independent chair.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>We urge you to Vote FOR a BONUS DEFERRAL POLICY (Item 8)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This proposal is intentionally limited in its scope. Not only is it
limited to the company&rsquo;s annual bonus program, but it provides wide discretion to the board&rsquo;s Compensation Committee to determine
the length of the deferral period, to make any appropriate adjustments in the deferred amount, and to avoid violating any existing obligations
or plan terms. We believe that adoption of a Bonus Deferral Policy is appropriate for the following reasons:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><U>Facilitates the Use of the Clawback and Allows Flexibility in Reducing Annual Payouts</U>. A Bonus Deferral Policy offers a straightforward
mechanism to recoup annual awards under the company&rsquo;s clawback policy, which could otherwise require legal action and the expenditure
of additional company time and resources. This policy also allows for adjustments in payouts based on late-arriving information related
to misconduct or risk-taking behavior. A Bonus Deferral Policy would enhance the company&rsquo;s ability to use its clawback and we believe
that it could help to retain the services of the executives whose annual bonuses are being deferred.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><U>Similar to Policies Widely Adopted in the Banking Industry and at Some Other Pharmaceutical Companies</U>. A Bonus Deferral Policy
like the one requested in the proposal is similar to arrangements that have been widely adopted in the banking industry, following the
last financial crisis. In 2009, the Financial Stability Board (FSB), which coordinates national financial authorities in developing strong
sector policies, adopted &ldquo;Principles for Sound Compensation Policies&rdquo; and related &ldquo;Implementation Standards&rdquo;,
which included bonus deferral policies. Deferral policies were considered &ldquo;particularly important&rdquo; because they allow for
&ldquo;late-arriving information about risk-taking and outcomes&rdquo; and reduces the need to recoup compensation already paid out, which
may &ldquo;fac[e] legal barriers&rdquo;. The sixth progress report on these FSB Principles noted in 2019 that banking supervisors in 16
FSB jurisdictions, including the U.S., now have requirements or expectations regarding bonus deferral.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Other pharmaceutical companies have begun adopting bonus deferral policies,
including Indivior, Novartis and GlaxoSmithKline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>We urge you to Vote FOR a CLAWBACK DISCLOSURE POLICY (Item 9)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Eli Lilly has a compensation clawback policy that applies to equity
and cash incentive payments and is triggered by specific types of misconduct. In our view, the effectiveness of a clawback policy is strengthened
if shareholders can monitor its implementation. Disclosure not only enhances existing executive pay disclosure, but reinforces a culture
of accountability, which is critical for a company facing Eli Lilly&rsquo;s challenges. Yet Eli Lilly has refused to implement this reform,
unlike the 13 pharmaceutical companies that have adopted similar clawback disclosure policies over the past two years, including Assertio
Therapeutics and Amgen Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The proposal&rsquo;s request for greater transparency does not limit
the board&rsquo;s discretion to decide whether to claw back pay due to misconduct or pursue other avenues to address misconduct, but merely
allows shareholders to be informed annually as to whether the board has used the clawback. Contrary to Eli Lilly&rsquo;s Statement in
Opposition, this proposal does not request &ldquo;broad&rdquo; disclosure and would not result in a &ldquo;misleading picture&rdquo; of
how the company addresses senior executive misconduct. Rather, this proposal requests disclosure of the &ldquo;general&rdquo; circumstances
of the clawback&rsquo;s use and explicitly carves out instances where disclosure would &ldquo;violate any law, regulation or agreement&rdquo;.
The policy would give Eli Lilly and its Compensation Committee the ability to decide how to describe the clawback&rsquo;s use in a way
that demonstrates the company&rsquo;s commitment to a culture of accountability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>We therefore urge shareholders to vote FOR Items 7,8, and 9. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For more information, please contact Meredith Miller, Chief Corporate
Governance Officer, UAW Retiree Medical Benefits Trust at mamiller@rhac.com</P>

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