Document:

Document

Exhibit 10.2

 

						
	

ARBEIDSOVEREENKOMST

	

EMPLOYMENT CONTRACT

	Tussen:

Otis Elevator Worldwide SRL, met maatschappelijke zetel te Stationsstraat 34 1702 Dilbeek, ingeschreven in de Kruispuntbank der Ondernemingen onder het nummer 0652.780.207;

Vertegenwoordigd door Laurie Havanec in haar hoedanigheid van EVP Chief People Officer van Otis Worldwide Corporation;

Hierna de « Werkgever » genoemd;

En:

De heer Bernardo Calleja Fernández, gedomicilieerd te ****.

Hierna « de Werknemer » genoem

Hierna gezamelijk « de Partijen » genoemd.

	Between:

Otis Elevator Worldwide SRL, whose registered office is at Stationsstraat 34 1702 Dilbeek and with company number 0652.780.207

Here represented by Laurie Havanec in her capacity as EVP Chief People Officer of Otis Worldwide Corporation;

Hereinafter referred to as “the Employer” or “the Company”

 And:

Mr. Bernardo Calleja Fernández, residing at ****.

Hereinafter referred to as “the Employee”.

Hereinafter collectively referred to as “the Parties”.

	PREAMBULE :

	WHEREAS:

	Zardoya Otis S.A is een Spaanse entiteit van de Otis Groep (Otis Worldwide Corporation en zijn filialen).

Op 6 september 1989 werd de Werknemer aangeworven door Zardoya Otis S.A.

Op 28 februari 2012 werd de Werknemer benoemd tot lid van de raad van bestuur van Zardoya Otis S.A. en, vervolgens, tot Algemeen Directeur van Zardoya Otis S.A.

Op 20 maart 2019 werd de Werknemer benoemd tot Voorzitter van de raad van bestuur van Zardoya Otis S.A.

Sinds 26 januari 2021 oefent de Werknemer niet langer de functie van Algemeen Directeur van Zardoya Otis S.A. uit. Hij bleef echter wel zijn functie van uitvoerend Voorzitter van de raad van bestuur van Zardoya Otis S.A. uitoefenen. Deze laatste functie was het voorwerp van een Spaans overeenkomst (hierna het "Spaanse Dienstverleningsovereenkomst").

	Zardoya Otis S.A is a Spanish entity of the Otis Group (i.e., Otis Worldwide Corporation and its subsidiaries and affiliates).

Since 6 September 1989, the Employee has been employed by Zardoya Otis S.A.

On 28 February 2012, the Employee was appointed as a member to the board of directors of Zardoya Otis S.A. and, subsequently, as Managing Director of Zardoya Otis S.A.

On 20 March 2019, the Employee was appointed as Chairman of the board of Zardoya Otis S.A.

Effective January 26, 2021, the Employee ceased to be the Managing Director of Zardoya Otis S.A. but continued his position as Chairman of the Board of Zardoya Otis SA., which executive director relationship was memorialized in a Spanish agreement (the “Spanish Services Contract”).

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	Op 3 november 2020 werd de Werknemer benoemd tot Voorzitter van Otis EMEA en lid van de Executive Leadership Group (hierna "ELG") van Otis Worldwide Corporation, met een E5-niveau. Zijn benoeming als Voorzitter van Otis SEMA wordt verdergezet.

Door middel van huidige arbeidsovereenkomst (hierna de "Overeenkomst") wensen de Partijen de details en voorwaarden van de nieuwe functie van de Werknemer als Voorzitter Otis EMEA vast te leggen.
	As from 3 November 2020, the Employee was appointed as the President of Otis EMEA, and a member of Otis Worldwide Corporation’s Executive Leadership Group (“ELG”), with an E5 level. His appointment as President of Otis SEMA shall continue.

Hereby, the Parties wish to conclude an employment contract (the “Employment Contract”) in order to enumerate the details and conditions of the new function as President of Otis EMEA to be performed by the Employee.

	WERD OVEREENGEKOMEN HETGEEN VOLGT:
	IT HAS BEEN AGREED AS FOLLOWS:

	ARTIKEL 1: Aanwerving en duur van de Overeenkomst

De Overeenkomst treedt in werking op 1 februari 2021. De benoeming van de Werknemer tot Voorzitter EMEA en lid van de ELG is effectief sinds 3 november 2020. De Overeenkomst wordt gesloten voor onbepaalde tijd. Het kan beëindigd worden door een van de Partijen overeenkomstig de bepalingen van deze Overeenkomst.

	ARTICLE 1: Start and duration of the Employment Contract

This Employment Contract is effective as of February 1, 2021. The Employee’s appointment as President EMEA and ELG member was effective as of November 3, 2020. The duration of this employment is for an indefinite duration unless terminated earlier by either Party in accordance with this Employment Contract.

	ARTIKEL 2 : Functie

De Werkgever werft de Werknemer aan in de hoedanigheid van Voorzitter van Otis EMEA. De Werknemer zal rapporteren aan Judy Marks, CEO van Otis Worldwide Corpora tion, of een opvolger van deze laatste.

De Partijen erkennen en aanvaarden dat het, gezien de aard van de activiteiten van de Werknemer, onmogelijk is een uitputtende lijst te geven van alle taken die onder de verantwoordelijkheid van de Werknemer vallen.

Bijgevolg maken alle taken die rechtstreeks of onrechtstreeks noodzakelijk of nuttig zijn voor de uitoefening van zijn functie deel uit van de activiteiten van de Werknemer.

De Werkgever erkent dat de Werknemer functies bekleedt (en in de toekomst kan bekleden) als voorzitter, directeur, of andere functies in andere entiteiten van de Otis Groep.

	ARTICLE 2: Function

The Employer engages the Employee in the capacity of President of Otis EMEA. The Employee will report to Judy Marks, CEO of Otis Worldwide Corporation, or any of her successors.

Both Parties acknowledge and accept that, due to the nature of the Employee’s activities, it is impossible to give an exhaustive enumeration of all the tasks which are the Employee’s responsibility.

Consequently, all tasks which are directly or indirectly necessary, or useful for the execution of his function, are part of the activities of the Employee.

The Employer acknowledges that the Employee serves (and may serve in the future) as president, director, or other position in any other Otis Group entities.

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	ARTIKEL 3 : Werkplaats

De Werknemer oefent zijn functies uit vanuit Madrid, Spanje, Brussel of Dilbeek, België, of een andere door de Partijen overeengekomen plaats.

Rekening houdend met de internationale reikwijdte van de activiteiten van de Werkgever en de taken van de Werknemer, erkent de Werknemer dat zakenreizen frequent noodzakelijk zullen zijn.

	ARTICLE 3: Place of employment

The Employee shall exercise his functions from Madrid, Spain, Brussels or Dilbeek, Belgium, or from any other places and countries as mutually agreed by the Parties.

In view of the international scope of the activities of the Employer and the functions of the Employee, the Employee acknowledges that frequent travel will be required.

	ARTIKEL 4 : Sociale Zekerheid

Het toepasselijke socialezekerheidsstelsel zal worden vastgesteld overeenkomstig de Europese Verordening 883/2004, zoals die van tijd tot tijd wordt gewijzigd.

De toepasselijke sociale zekerheidsbijdragen zullen worden ingehouden op het brutoloon van de Werknemer.

	ARTICLE 4: Social Security

The applicable social security scheme will be determined in accordance with the European Regulation 883/2004, as amended from time to time.

The applicable social security contributions will be deducted from the Employee’s gross remuneration.

	ARTIKEL 5 : Temps de travail

De Werknemer wordt voltijds tewerkgesteld.

De Werknemer bekleedt een leidinggevende functie binnen de entiteiten van de Otis Groep, en meer in het bijzonder in de EMEA-regio.

De Werknemer erkent dat de goede uitvoering van zijn taken en verantwoordelijkheden kan vereisen dat hij extra prestaties levert boven de wekelijkse arbeidsduur die van toepassing is op de werknemers van de Onderneming die onderworpen zijn aan de afdelingen 2, 4 tot 7 van Hoofdstuk 3 van de Wet van 16 maart 1971. De Werknemer erkent en aanvaardt dat zijn maandelijkse bezoldiging, zoals omschreven in de Overeenkomst, een adequate vergoeding vormt voor deze aanvullende en/of bijkomende prestaties. Hij heeft derhalve geen recht op betaling noch op terugvordering ervan.

	ARTICLE 5: Working time

The Employee is employed full-time.

The Employee has a leading position among the Otis Group entities and more particularly the EMEA region.

The Employee acknowledges that, in order to duly perform his duties, he may be required to work more hours than the weekly work time applicable to the Company’s employees that are subject to sections 2, 4 and 7 of chapter 3 of the law of 16 March 1971. The Employee acknowledges and accepts that his monthly salary, as defined in the Employment Contract constitutes an adequate compensation for these complementary and/or additional services. He will therefore be unable to claim additional payment or recovery for such services.

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	ARTIKEL 6 : Loon

Gedurende de arbeidsverhouding zullen het loon en de voordelen van de Werknemer worden beheerst door het loonprogramma voor de kaderleden van Otis. Dit omvat de hieronder vermelde elementen:

1.Basisloon

Het jaarlijkse loon van de Werknemer is vastgesteld op 332.500 EUR bruto met inbegrip van een eindejaarspremie en het vakantiegeld, overeenkomstig de Belgische wetgeving in die materie. 

Naast de opslagen en wijzigingen die wettelijk verplicht zijn ten gevolge van een verandering van functie en/of promotie, kan het loon worden verhoogd overeenkomstig de prestaties van de Werknemer. De Werknemer erkent dat deze opslagen in geen geval een verworven recht voor de toekomst vormen en dat zij steeds op discretionaire wijze door de Werkgever bepaald worden. De totstandkoming van een gewoonte is derhalve uitdrukkelijk uitgesloten.

In geval van beëindiging van de Spaanse Dienstverleningsovereenkomst, zoals beschreven in de preambule van de Overeenkomst, zal het loon van de Werknemer worden verhoogd met een bedrag dat overeenkomt met het loon die aan de Werknemer is betaald uit hoofde van de Spaanse Dienstverleningsovereenkomst.  

2.KorteTermijn Incentive Compensatie

De Werknemer komt in aanmerking voor een jaarlijkse bonus krachtens het Otis Worldwide Corporation Executive Annual Bonus Plan, en dit, voor een streefbedrag gelijk aan 80% van de som van zijn basisloon betaalbaar voor het betreffende jaar en zijn basisloon betaalbaar voor hetzelfde jaar krachtens de Spaanse Dienstverleningsovereenkomst.

De jaarlijkse bonus die krachtens dit artikel moet worden betaald, kan echter worden verminderd met een bonus die door een andere entiteit van de Otis Groep voor dezelfde prestatieperiode wordt betaald.

	ARTICLE 6: Remuneration

During the employment, the Employee’s compensation and benefits will be governed by the Otis executive compensation programs and includes the below mentioned elements:

1.Base Salary

The remuneration of the Employee is fixed at €332.500 gross on an annual basis, including a year-end premium and holiday pay, according to the Belgian legislation in this respect.

Besides the increases and modification which are legally required as a consequence of a modification of the function and/or promotion, the remuneration can be increased in relation to the functioning of the Employee.  The Employee acknowledges that this does not create any rights for the future which respect to such increases, about which the Employer decides at his discretion.  The establishment of a custom is explicitly excluded.

In case of termination of the Spanish Services Contract described in the Whereas clause herein, the Employee’s remuneration will be increased by an amount equal to the base salary payable to the Employee under the Spanish Services Contract prior to such termination.

2.Short Term Incentive Compensation

The Employee will be eligible for an annual bonus under the Otis Worldwide Corporation Executive Annual Bonus Plan, with a target bonus amount equal to 80% of the sum of his base salary payable for the year hereunder and his base salary payable for the same year under the Spanish Services Contract.

 The annual bonus payable hereunder may be reduced by any incentive bonuses paid by any other Otis Group entities for that same performance period.

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	3.Lange Termijn Incentive Compensatie

De Werknemer zal in aanmerking komen voor de toekenning van aandelen zoals op discretionaire wijze bepaald door het Verloningscomité van Otis Worldwide Corporation krachtens het Otis Worldwide Corporation 2020 Lang Termijn Incentive Plan. Voor zover nodig wordt gespecificeerd dat dit Plan een wereldwijd plan is. De rechten en verplichtingen vervat in het Plan en de aan de Werknemer toegekende aandelen of opties maken geen deel uit van de Overeenkomst. De Werkgever is op geen enkele wijze schuldenaar van de verplichtingen die voorzien zouden zijn in dit Plan (behalve voor verplichte inhoudingen).

4.Pensioenen, ziekte- en levensverzekeringen

De Werknemer komt in aanmerking voor de bij de Werkgever geldende pensioenplannen, ziekte- en levensverzekering, onder de uitdrukkelijke voorwaarde dat hij zou voldoen aan de door het pensioenplan, het ziekteverzekeringsplan en het levensverzekeringsplan gestelde voorwaarden om hier in aanmerking voor te komen.

5.Bedrijfswagen

De Werknemer heeft recht op een bedrijfswagen en een tankkaart, in overeenstemming met de Policy van Otis Groep voor ELG-leden.

6.Reiskosten

In geval van zakenreizen zullen de redelijke kosten die door de werknemer gemaakt werden, worden vergoed in overeenstemming met de Policy van de Otis Groep terzake.   

7.Verhuisvergoedingen

Indien de Werknemer voor de uitoefening van zijn functie naar een andere plaats moet verhuizen, heeft hij recht op verhuisvergoedingen in overeenstemming met de Policy van de Otis Groep ter zake.

8.Uitzonderlijke éénmalige premie

De Werkgever zal aan de Werknemer een éénmalige uitzonderlijke premie van 39.571,43 EUR bruto storten.

	3.Long-Term Incentive Compensation

The Employee will be eligible to receive grants of equity awards, as determined annually in the sole discretion of Otis Worldwide Corporation’s Compensation Committee under the Otis Worldwide Corporation 2020 Long-Term Incentive Plan. This Plan is a global plan. Obligations and rights described in this Plan and the Employee’s award agreements are not part of this Employment Contract. The Employer is in no way liable for any obligations set under this Plan (except for certain withholding obligations).

4.Pension benefits, Health Insurance and Life and AD&D Insurance Policies

The Employee will benefit from pension benefit programs, health insurance plans and life and accidental insurances policies applicable within the Employer; provided that the Employee meets the eligibility conditions set by the pension plan, the health insurance plan and the life insurance plan.

5.Company car

The Employee will be entitled to a company car and fuel card allowances in accordance with the applicable Otis Group policy for ELG members. 

6.Travel expenses

The Employee shall be reimbursed for the reasonable costs of his business travels in accordance with Otis Group travel policy. 

7.Relocation allowance

In the event the Employee is required to relocate to perform his duties hereunder, the Employee will be entitled to receive relocation benefits in accordance with the Otis Group policy. 

8.Exceptional one-off bonus

The Employer will pay the Employee an exceptional one-off bonus of €39,571.43 gross.

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	9.Administratie

Het loon van de Werknemer en alle andere loonelementen zullen maandelijks via de Belgische Payroll worden verwerkt. De maandelijkse bezoldiging zal, na aftrek van alle wettelijke en contractuele inhoudingen (waaronder de personenbelasting en de sociale zekerheidsbijdragen), op de bankrekening van de Werknemer worden gestort.

	9.Pay Administration

The Employee’s salary and all other remuneration elements will be processed via the Belgium Payroll on a monthly basis.  The monthly remuneration will, after deduction of all legal and contractual withholdings (including personal income tax and social security contributions), be paid into the Employee’s bank account.

	ARTIKEL 7: Financieel Plan

De Werknemer zal recht hebben op de voordelen inzake financiële planning die aan de leden van de ELG worden toegekend.
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	ARTICLE 7: Financial Planning

The Employee will be entitled to receive ELG member financial planning benefits.

	ARTIKEL 8: Medisch onderzoek

De Werkgever vergoedt de Werknemer voor een volledig jaarlijks gezondheidsonderzoek, met inbegrip van labotests en eventuele gespecialiseerde diagnostische procedures, in overeenstemming met de Policy van Otis Group dat van toepassing is op ELG-leden.

	ARTICLE 8: Health exam

The Employer will reimburse the Employee an annual health exam, including laboratory tests and any specialized diagnostic procedures in accordance with the Otis Group’s applicable policy for ELG members.

	ARTIKEL 9: Jaarlijkse vakantie en feestdagen

1. De Werknemer heeft recht op jaarlijkse vakantie en vakantiegeld overeenkomstig de ter zake geldende wettelijke bepalingen.

De Werknemer heeft recht op de wettelijke feestdagen waarin de Belgische wetgeving voorziet.

2. De data van de jaarlijkse vakantie worden in onderling overleg met de Werkgever vastgesteld, rekening houdend met de wettelijke bepalingen en het bij de Werkgever geldende arbeidsreglement en met de operationele en/of organisatorische behoeften van de Werkgever.

	ARTICLE 9: Annual vacation

1. The Employee is entitled to annual holidays and holiday bonuses in accordance with applicable legal provisions.

The Employee is entitled to public holidays provided for by Belgian legislation.

2. The dates of the annual holidays will be determined in agreement with the Employer, taking into account legal provisions and the Employer's work regulations, as well as the Employer’s operational and/or organizational requirements.

	ARTIKEL 10: Confidentialiteit en teruggave
1. Onverminderd artikel 309 van het Wetboek van Strafrecht en de op het niveau van de Otis Groep

	ARTICLE 10: Confidentiality and restitution
1. Without prejudice to article 309 of the Criminal Code and the policies applicable at the Otis Group level, the

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	geldende Policies, verbindt de Werknemer zich ertoe zowel tijdens zijn arbeidsverhouding met de Otis Groep als na beëindiging ervan, geen bedrijfsgeheim in de zin van artikel I.17/1, 1° van het Wetboek van Economisch Recht op ongeoorloofde wijze te zullen verkrijgen, te gebruiken of openbaar maken in de zin van artikel XI.332/4 van hetzelfde wetboek, waarvan hij tijdens de uitoefening van zijn professionele activiteiten bij de Otis Groep kennis zou kunnen krijgen, alsmede het geheim te bewaren van alle persoonlijke of vertrouwelijke zaken waarvan hij bij de uitoefening van zijn professionele activiteiten bij de Otis Groep kennis zou kunnen krijgen.

Deze geheimhoudingsplicht omvat, maar is niet beperkt tot, informatie over klanten, commerciële strategie, know-how en producten of processen van de Werkgever of van een andere entiteit van de Otis Groep.

2. Tenzij hij verplicht is vertrouwelijke informatie te bewaren voor de uitoefening van zijn functie in het kader van een overeenkomst met een andere entiteit van de Otis Groep, zal de Werknemer onmiddellijk alle originelen, kopieën en/of samenvattingen van documenten, rapporten, bestanden, computerprogramma's, digitale media, notities, lijsten, briefpapier, correspondentie, stalen en alle andere soortgelijke informatie en/of elke gelijkwaardige informatiedrager, die rechtstreeks of onrechtstreeks verband houden met de Otis Groep of haar activiteiten, onmiddellijk overhandigen, ongeacht of deze van de Otis Groep zijn ontvangen of door de Werknemer zelf zijn gecreëerd, alsmede elk ander voorwerp dat hij voor de uitvoering van zijn taken zou gekregen hebben van de Otis Groep.

	Employee commits, during his employment as well as after its termination of employment with the Otis Group, not to obtain, use or disclose unlawfully, within the meaning of article XI.332/4 of the Economic Code, any trade secret within the meaning of Article I.17/1, 1°, of the same Code, of which he may have had knowledge in the exercise of his professional activity with the Otis Group, as well as not to make public any trade secret of a personal or confidential nature of which he might have had knowledge in the exercise of his professional activity with the Otis Group.

This obligation of confidentiality includes, but is not limited to client information, commercial strategy, know-how and the products or processes of the Employer or of any other entity of the Otis Group.

2. Unless required to keep this confidential information for the performance of his duties under a contract with another entity of the Otis Group, the Employee will immediately return all originals, copies and/or summaries of documents, reports, files, IT programs, digital carriers, notes, lists, letters, correspondence, samples and all other similar information and/or equivalent information carrier directly or indirectly related to the Otis Group or its business, that he would have received from the Otis Group or that he would have produced himself as well as every other item he would have received in performing his work.

	ARTIKEL 11: Niet-concurrentie

1. Gezien het feit dat de Werkgever een internationale activiteit heeft en aanzienlijke economische, technische of financiële belangen heeft op internationale markten en dat de Werknemer in het kader van de uitoefening van zijn functie toegang zal hebben tot strategische informatie van technische, wetenschappelijke, economische en commerciële aard over de vervaardiging van producten voor personenvervoer, zoals liften, roltrappen en

	ARTICLE 11: Non-competition clause

1. Given that the Employer has an international activity field, and important economic, technical or financial interests in the international markets, and that in the context of his function the Employee will have access to strategic information of a technical, scientific, economic or commercial nature, in the manufacture of people-moving products, such as elevators, escalators and moving walkways, the Employee commits to not performing similar activities on the European market (France, Spain, Russia, Italy, United Kingdom, Turkey,

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	transportbanden, verbindt de Werknemer zich ertoe tijdens de duur van de Overeenkomst, alsook gedurende een periode van 24 maanden na de beëindiging van de Overeenkomst, niet in Europa (Frankrijk, Spanje, Rusland, Italië, Verenigd Koninkrijk, Turkije, Tsjechië, Zwitserland, Portugal, Oostenrijk, Polen, Nederland, Duitsland, Oekraïne, België, Denemarken, Griekenland, Noorwegen, Finland, Hongarije, Zweden, Luxemburg, Ierland, Kroatië, Roemenië, Estland, Cyprus, Kazachstan, Bulgarije, Slovenië, Slowakije), alsmede in het Midden-Oosten (Verenigde Arabische Emiraten, Saudi-Arabië, Koeweit, Bahrein, Qatar) en Afrika (Zuid-Afrika, Egypte, Marokko, Kenia, Mozambique, Malawi) soortgelijke activiteiten te zullen uitoefenen, hetzij in het kader van een eigen onderneming, hetzij door in dienst te treden bij een concurrerende werkgever, waardoor hij de Werkgever die hij heeft verlaten, mogelijks schade kan berokkenen door de kennis van de praktijken die eigen zijn aan de Werkgever en die hij bij deze laatste heeft verworven, voor zichzelf of ten gunste van een concurrent te gebruiken.

Voor zover dat dit concurrentiebeding geacht wordt geldig te zijn en van kracht wordt op de datum van beëindiging van de Overeenkomst in toepassing van de artikelen 65/86 § 1 van de wet van 3 juli 1978 betreffende de arbeidsovereenkomsten en tenzij de Werkgever afstand doet van zijn rechten die voortvloeien uit de toepassing van het concurrentiebeding op het ogenblik van de kennisgeving van de opzegging, in voorkomend geval en binnen vijftien dagen na de daadwerkelijke beëindiging van de Overeenkomst, betaalt de Werkgever de Werknemer een forfaitaire vergoeding die overeenkomt met de helft van het brutoloon dat de Werknemer zou ontvangen gedurende de periode waarin de het beding daadwerkelijk van toepassing is.

2. Indien de Werknemer dit concurrentiebeding schendt, dient hij de in lid 1 bedoelde vergoeding aan de Werkgever terug te betalen en een equivalent bedrag als forfaitaire schadevergoeding aan de Werkgever te betalen

3. De in dit artikel vervatte concurrentieverplichtingen worden niet van kracht wanneer de Overeenkomst door de Werknemer om dringende reden wordt opgezegd.

	Czech Republic, Switzerland, Portugal, Austria, Poland, Netherlands, Germany, Ukraine, Belgium, Denmark, Greece, Norway, Finland, Hungary, Sweden, Luxembourg, Ireland, Croatia, Romania, Estonia, Cyprus, Kazakhstan, Bulgaria, Slovenia, Slovak Republic), on the Middle East market (United Arab Emirates, Saudi Arabia, Kuwait, Bahrain, Qatar) and on the African market (South Africa, Egypt, Morocco, Kenya, Mozambique, Malawi) during the Employment Contract as well as for 24 months after termination of the Employment Contract, either by running his own business, or by working for a competing employer, thereby being able to harm the Employer by using, for himself or a competitor, the knowledge of practices specific to the Employer that he acquired there.

In as far as the present non-compete clause is deemed legally enforceable and has effect on the day of termination of the present Employment Contract in application of articles 65/86 § 1 of the Act of 3 July 1978 regarding employment contracts, and unless the Employer renounces to its rights arising from application of the non-compete clause at the moment of notice and, in that case, within 15 days after the effective termination of the Employment Contract, the Employer will pay the Employee a lump sum payment equal to half of the base salary the Employee would have received under this Employment Contract during the period of effective application of the clause.

2. If the Employee breaches the present non-compete clause, the Employee must reimburse the Employer the lump sum described in paragraph 1 of this Article and pay the Employer an additional sum in the same amount.

3. These non-compete obligations will not apply if the Employment Contract is voluntarily terminated by the Employee on serious grounds.

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	4. De in dit artikel vervatte niet-concurrentieverplichtingen (met inbegrip van deze in verband met de betalingen) zijn niet van toepassing indien de Overeenkomst met wederzijdse instemming van de Partijen wordt beëindigd.

5. Elke inbreuk op huidig artikel door de Werknemer tijdens de uitvoering van de Overeenkomst kan worden beschouwd als een dringende reden die een onmiddellijke beëindiging van de Overeenkomst, zonder opzeggingstermijn of -vergoeding rechtvaardigt.

	4. These non-compete obligations (including related payments) will not apply if the Parties terminate the Employment Contract by mutual agreement.

5. Any breach by the Employee of this Article during the performance of the Employment Contract shall be considered by the Employer serious grounds for immediate termination of the Employment Contract without notice or indemnity in lieu of notice.

	ARTIKEL 12: Niet-afwerving

De Werknemer verbindt zich ertoe gedurende de looptijd van de Overeenkomst, alsmede gedurende een periode van 24 maanden na beëindiging van de arbeidsverhouding met enige entiteit van de Otis Groep, werknemers van de Otis Groep er niet toe aan te zetten op enigerlei wijze, rechtstreeks of onrechtstreeks, hun tewerkstelling te beëindigen teneinde/met de bedoeling, rechtstreeks of onrechtstreeks, als werknemer of zelfstandige, een activiteit uit te oefenen die concurreert met die van de Otis Groep.

Elke inbreuk op dit artikel door de Werknemer tijdens de uitvoering van de Overeenkomst kan beschouwd worden als een dringende reden die de onmiddellijke beëindiging van de Overeenkomst, zonder opzeggingstermijn of -vergoeding, rechtvaardigt.

	ARTICLE 12: Non-solicitation

The Employee undertakes during the period of this Employment Contract, as well as during a period of 24 months following the termination of the Employee’s employment with any entities of the Otis Group, not to incite, in any way whatsoever, directly or indirectly, employees of the Otis Group to leave their employment in order to carry on, directly or indirectly, as an employee or self-employed person, an activity that competes with that of the Otis Group.

Any violation breach of this article by the Employee during the performance of this Employment Contract shall be considered as a serious ground for immediate termination without notice or compensation in lieu of notice.

	ARTIKEL 13 : Niet-denigratie

De Partijen verbinden zich er uitdrukkelijk toe zich zowel tijdens de uitvoering van de Overeenkomst als na de beëindiging ervan te onthouden van denigrerend of kritisch gedrag jegens elkaar, op welke wijze dan ook.

	ARTICLE 13: Non-disparagement

The Parties explicitly agree to refrain from disparaging or denigrating each other in any way, whether during the performance of this Employment Contract or after its termination.

	ARTICLE 14 : Eigendom van de Onderneming

De Werknemer verbindt zich ertoe geen bestanden en programma's te kopiëren, te installeren of te gebruiken die in strijd zijn met het auteursrecht of zonder licentie.

	ARTICLE 14: Company property

The Employee undertakes not to copy, install or use any files and programs with violation of the copyrights or without license.

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	In geval van beëindiging van de arbeidsverhouding met de Otis Groep, om welke reden dan ook, en op elk moment gedurende de arbeidsverhouding, zal de Werknemer op eerste verzoek van de Otis Groep alle aan de Otis Groep toebehorende documenten en eigendommen aan de Otis Groep teruggeven.

Indien de Werknemer echter na beëindiging van de Overeenkomst voor een entiteit van de Otis Groep blijft werken, zal huidig artikel 14 niet van toepassing, tenzij een bepaling van de Overeenkomst anders bepaald. Dit artikel zal namelijk pas van toepassing zijn wanneer de Werknemer alle functies binnen de Otis Groep heeft beëindigd.

	In case of termination of the employment contract his employment with the Otis Group, for any reason, and at any moment during the employment at the first request of the Otis Group, the Employee will return all documents and employer property to the Otis Group.

Notwithstanding anything herein to the contrary, this Article 14 will not apply if the Employee continues to remain employed at an Otis Group entity upon termination of this Employment Contract and will only apply once the Employee terminates all positions he holds with the Otis Group.

	ARTIKEL 15: Intellectuele Eigendom

De Werknemer draagt aan de Otis Groep definitief en voor de gehele wereld alle rechten en/of belangen over die verband houden met het resultaat van enige intellectuele activiteit, ongeacht of deze wordt uitgevoerd in het kader van de Overeenkomst of in het kader van enige andere arbeidsverhouding met de Otis Groep.

De Werknemer erkent een exemplaar te hebben ontvangen van de geldende Policy van de Otis Groep met betrekking tot intellectuele eigendom.

	ARTICLE 15: Intellectual property

The Employee transfers, definitively and for the entire world, to the Otis Group every right and/or interest related to the result of every intellectual activity performed under this Employment Contract or under other employment within the Otis Group in accordance with the Otis Group policy on intellectual property.

The Employee acknowledges to have received a copy of the intellectual property policy applicable within the Otis Group.

	ARTIKEL 16: Verwerking van persoonsgegevens

1. De Werkgever behandelt de persoonlijke gegevens van de Werknemer in overeenstemming met de "Otis Global Privacy Notice" die beschikbaar is op de volgende link https://www.otis.com/en/us/privacy-policy (het "Privacybeleid"). Door de Overeenkomst te ondertekenen, erkent de Werknemer de voorwaarden van het Privacybeleid te hebben gelezen en aanvaard.

2. Meer gedetailleerde informatie over het gebruik door de Otis Groep van de persoonsgegevens van de Werknemer en over alle rechten van de Werknemer op het vlak van het privéleven zijn opgenomen in het Privacybeleid.

3. Het Privacybeleid kan van tijd tot tijd worden gewijzigd. De Werknemer zal op de hoogte worden gebracht van elke wijziging in het Privacybeleid, die op de Otis-website zal meegedeeld worden.

	ARTICLE 16 : Processing of personal data

1. The Employer processes the Employee’s personal data in accordance with the Otis Global Privacy Notice available at https://www.otis.com/en/us/privacy-policy (the “Privacy Policy”). By signing the Employment Contract, the Employee acknowledges that he has read and agrees to the terms of the Privacy Policy.

2. More detailed information on the Otis Group’s use of the Employee’s personal data and the Employee’s privacy rights is set out in the Privacy Policy.

3. The Privacy Policy may be amended from time to time. The Employee will be notified of any changes to the Privacy Policy, which will be posted on the company’s global website.

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	ARTIKEL 17: Einde van de Overeenkomst

Elke Partij kan deze Overeenkomst beëindigen overeenkomstig de bepalingen van de wet van 3 juli 1978 betreffende de arbeidsovereenkomsten, zoals die van tijd tot tijd wordt gewijzigd.

De Partijen kunnen de Overeenkomst beëindigen zonder opzeggingstermijn of opzeggingsvergoeding in geval van dringende reden.

	ARTICLE 17: Termination of the Employment Contract

Either Party may terminate this Employment Contract in accordance with the provisions as determined in the Law of 3 July 1978 concerning employment agreements, as amended from time to time.

The Parties can terminate this Employment Contract without notice period or indemnity in lieu, in case of serious cause by either Party.

	ARTIKEL 18 : Ontslagvergoedingen – ELG-Vertrekplan

Als lid van de ELG heeft de Werknemer in bepaalde gevallen bij de beëindiging recht op ontslagvergoedingen overeenkomstig het ELG-Vertrekplan (dit plan kan te allen tijde door Otis Worldwide Corporation worden gewijzigd). Elke bruto ontslag- of beëindigingsvergoeding die door een entiteit van de Otis Groep aan de Werknemer wordt betaald in geval van een dergelijke beëindiging zal in mindering worden gebracht op het bedrag van de ontslagvergoeding waarin het ELG-Vertrekplan voorziet.

	ARTICLE 18 :Severance pay – ELG Severance Plan

As an ELG member, the Employee will be eligible to receive severance payments upon certain termination events, in accordance with the ELG Severance Plan (which plan can be amended at any time by the Otis Worldwide Corporation). Any other gross termination indemnity or severance payment paid by any Otis Group entities to the Employee upon such termination shall reduce his ELG severance amount.

	ARTIKEL 19 : Policies en Procedures

De Werknemer moet zich houden aan alle, op het niveau van de Otis Groep, geldende Policies, die van tijd tot tijd kunnen worden gewijzigd.

De Werkgever hecht veel belang aan de strikte naleving van de Policies en Procedures van de onderneming. De Werknemer verklaart een exemplaar van de Policies en Procedures te hebben ontvangen en verbindt zich ertoe deze na te leven

De Werknemer erkent een kopie te hebben ontvangen van het toepasselijke arbeidsreglement van de Werkgever.

	ARTICLE 19: Policies and Procedures

The Employee must comply with any applicable policies and procedures of the Otis Group, which may be modified from time to time.

The Employer attaches great importance to strict respect to the Absolutes and Corporate Policies and Procedures. The Employee acknowledges receipt of a copy of these policies and procedures and agrees to abide by them.

The Employee acknowledges to have received a copy of the work regulations applicable to the Employer.

	ARTIKEL 20: Varia

1. Indien één of meerdere (delen van) artikelen van de Overeenkomst geheel of gedeeltelijk nietig of in strijd

	ARTICLE 20: Miscellaneous

1. If one (or more) (part(s) of) article(s) of the Employment Contract are declared partially or totally

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	met enige toepasselijke wettelijke of reglementaire bepaling worden verklaard, zullen de overige (delen van) artikelen door deze nietigheid niet worden aangetast en derhalve van kracht blijven.

2. Onverminderd de specifieke bepalingen terzake in de Overeenkomst, komen de partijen uitdrukkelijk overeen dat alles wat niet schriftelijk is overeengekomen, als een “accessoire” arbeidsvoorwaarde wordt beschouwd. De Werkgever heeft derhalve het recht deze “accessoire” voorwaarden eenzijdig te wijzigen of aan te passen.

3. Voor zover nodig annuleert en vervangt de Overeenkomst elk(e), schriftelijk of mondeling, overeenkomst of eenzijdig aanbod, met hetzelfde onderwerp, dat eerder tussen de Werknemer en de Werkgever bestond.

In geen geval annuleert of vervangt deze Overeenkomst (i) het Spaanse Dienstenverleningsovereenkomst zoals beschreven in de Preambule van de Overeenkomst, en (ii) enige andere overeenkomst die de Werknemer met Zardoya Otis S.A. is aangegaan in verband met de beëindiging van zijn arbeidsverhouding met Zardoya Otis S.A. ter gelegenheid van zijn benoeming tot Voorzitter van Otis EMEA.

4. De Overeenkomst is opgesteld en ondertekend in het Nederlands. De Werkgever bevestigt dat de Engelse vertaling louter ter informatie is gemaakt, daar de Nederlandse versie de officiële versie is. In geval van tegenstrijdigheden tussen de oorspronkelijke Nederlandse versie en de vrije Engelse vertaling, prevaleert de Nederlandse versie.

5. De Overeenkomst wordt beheerst door Belgisch recht.

6. De Overeenkomst kan alleen worden gewijzigd of herzien met de schriftelijke en ondertekende instemming van beide Partijen bij de Overeenkomst.

7. De Overeenkomst kan ondertekend zijn door een onbeperkt aantal tegenpartijen en elke tegenpartij moet een volledig uitgevoerde origineel vertegenwoordigen alsof het door beide Partijen ondertekend was. De afgifte van een ondertekende tegenhanger van een ondertekeningspagina van deze Overeenkomst per fax of in elektronisch formaat (bijv. ".pdf" of ".tif") geldt als de afgifte van een met de hand uitgevoerde tegenhanger van de Overeenkomst.

	null or in breach of an applicable law or regulation, the other (parts of the) articles will not be affected by this nullity and will remain valid.

2. Without prejudice to the specific provisions relating to this matter in the Employment Contract, the Parties expressly agree that anything not agreed in writing is to be considered an accessory work condition. The Employer therefore has the right to modify or adapt these accessory conditions unilaterally.

3. Insofar as necessary, the Employment Contract annuls and replaces any agreement or unilateral offer, whether oral or in writing, on the same matter that existed previously between the Employee and the Employer.

This Employment Contract shall in no event annul or replace (i) the Spanish Services Contract described in the Whereas Clause of this Employment Contract, and (ii) any other agreements entered into by the Employee with Zardoya Otis S.A. in connection with the termination of his employment relationship with Zardoya Otis S.A. upon his appointment as President of Otis EMEA.

4. The present Contract has been drafted and signed in Dutch. The Employer confirms that the English translation has been made solely for information purposes, whereas the Dutch version constitutes the official version. If there is any conflict between the original Dutch version and the free English translation, the Dutch version will prevail.

5. The Employment Contract is governed by Belgian law.

6. The Employment Contract may be amended or modified only by a writing signed by the Parties to the Employment Contract.

7. This Employment Contract may be signed in any number of counterparts and each counterpart shall represent a fully executed original as if signed by both Parties. Delivery of an executed counterpart of a signature page to this Employment Contract by facsimile or in electronic format (e.g., ".pdf" or ".tif") shall be effective as delivery of a manually executed counterpart of this Employment Contract.

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Opgemaakt op 29 januari, 2021 in twee originele exemplaren, waarvan elke Partij verklaart een exemplaar te hebben ontvangen.

Made in two counterparts, on January 29, 2021, each party acknowledging having received one.

	

/s/ Laurie Havanec

_____________________________

Otis Elevator Worldwide SRL

Laurie Havanec

in her capacity as EVP Chief People Officer
Otis Worldwide Corporation

/s/ Bernardo Calleja Fernández

__________________________

Bernardo Calleja Fernández*

President EMEA

(*) Wordt voorafgegaan door de vermelding "gelezen en goedgekeurd".

(*) Preface the signature with the words "read and approved”.

13Document

Exhibit 10.3

Madrid, January 26th, 2021

THE PARTIES

I.On the one part, ZARDOYA OTIS, S.A., a company with registered office at calle Golfo de Salónica 73, 28033 Madrid, and tax identification number (NIF) A-28011153. It is registered with the Commercial Registry of Madrid, at tomo 251, Folio 70, Hoja 6896. This party is represented by Ms. Lorea García Jauregui, holding Spanish identity card number ****, who is authorised to enter into this contract. This party shall be hereinafter referred to as the “Company”.

II.On the other part, Mr. BERNARDO CALLEJA FERNÁNDEZ, of legal age, of Spanish nationality, with professional address at calle Golfo de Salónica 73, 28033 Madrid and with Spanish ID Card number ****. This party shall be hereinafter referred to as “Mr. Calleja”.

The Company and Mr. Calleja will be jointly referred to as the “Parties” and each of them individually and indistinctly as a “Party”.

WHEREAS

I.Mr. Calleja initiated an employment relationship with the Company on 6 September 1989 (the “Employment Relationship”);

II.On 28 February 2012, Mr. Calleja was appointed as a member to the board of directors of the Company (the "Board of Directors") and, subsequently, as Managing Director (Consejero Delegado).

III.On 3 June 2015 the Parties confirmed their agreement to suspend the Employment Relationship effective from 28 February 2012 for the tenure of Mr. Calleja as Managing Director (Consejero Delegado) of the Company, and entered into a contract to reflect these functions.

IV.On March 20th, 2019, Mr. Calleja was appointed as Chairman of the Board of Directors.

V.Effective as from 3 November 2020, Mr Calleja was appointed as President Otis EMEA and member of the Executive Leadership Group which employment relationship was memorialized in an employment agreement between Mr Calleja and Otis Elevator Worldwide, SPRL.

VI.On January 26th, 2021, Mr. Calleja resigned as Managing Director (Consejero Delegado) of the Company and the Parties terminated the Employment Relationship under a termination agreement dated January 26th, 2021 (the “Termination Agreement”).

VII.The Parties have agreed to enter into this service Contract (the “Contract”), pursuant to articles 249.3 and 529 octodecies of the Spanish Corporations Law, to set out the terms and conditions under which Mr. Calleja shall provide services to the Company as Chairman of the Board of Directors and replace any previous agreements between the Parties under the terms set out in clause 17, including the agreement entered between the Parties on 3 June 2015, but excluding the Termination Agreement.

VIII.This Contract and all its terms and conditions, including the remuneration payable to Mr. Calleja, have been approved by the Board of Directors on January 26th, 2021 pursuant to the proposal made by its Nominating and Compensation Commission. 

IX.In view of the foregoing, the Company and Mr. Calleja have agreed to enter into this Contract, in accordance with following

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CLAUSES

1.STATEMENT OF PRINCIPLES

This Contract is based on the mutual trust of the parties, who will exercise their rights and comply with their obligations in good faith. Mr. Calleja undertakes to perform his duties with the utmost interest, loyalty, dedication and professionalism.

2.    PURPOSE OF THE CONTRACT

The purpose of this Contract is the performance by Mr. Calleja of his duties as Chairman of the Board of Directors for the term and compensation, and subject to the other terms and conditions, provided in this Contract.

3.    TERM OF THE CONTRACT

Notwithstanding clause 10, this Contract will come into force on the date hereof and will be in force for as long as Mr. Calleja holds the office of Chairman of the Board of Directors. In the event Mr. Calleja continues to be appointed as a member of the Board of Directors but ceases to be the Chairman of the Board of Directors, then this Contract shall terminate, and the Parties may, but are not required to, enter into a new contract.

4.    RANK AND DUTIES OF MR. CALLEJA

4.1    Rank

In addition to (i) performing the duties pertaining to the office of Chairman of the Board of Directors in accordance with the law, the Articles of Association of the Company and the Regulations of the Shareholders’ Meeting and the Board of Directors of the Company; and (ii) ensuring the effective functioning of the Board of Directors and the Shareholders’ Meeting, Mr. Calleja, in his capacity of Chairman of the Board of Directors, shall perform the following executive functions: (a) undertake the highest institutional representation of ZOSA, (b) facilitate and coordinate the communication between the Company and any other entities of the OTIS Group (as defined below), looking after the Company’s interests, (c) seek and identify business opportunities for the Company and potential synergies with other entities of the OTIS Group, (d) keep himself informed and updated about the best practices in corporate governance, health and safety and corporate social responsibility and make any proposals he deems appropriate to the Board of Directors in relation to those matters, (e) put forward to the OTIS Group any items, questions or proposals raised by the Company’s board members, particularly the independent directors, (f) coordinate the Company’s strategy with OTIS Group global strategy and monitor and supervise its implementation as well as (g) discharge any other duties that the Board of Directors my confer on him as Chairman of the Board of Directors from time to time.

In this Contract, OTIS Group means Otis Worldwide Corporation (“OWC”) and any direct or indirect subsidiary or affiliate thereto, including the Company.

4.2    Exclusivity

During the term of this Contract, Mr. Calleja will provide services exclusively for the Company and any other OTIS Group companies and will not provide any services to entities outside of the OTIS Group. 

5.    WORKPLACE

Mr. Calleja will mainly render his services herunder at the headquarters of the Company currently located in Madrid. 

The Company reserves the right to change the place from where Mr. Calleja will mainly provide his services hereunder.

Mr. Calleja will travel to any domestic or foreign location when necessary or appropriate to carry out his duties as Chairman of the Board of Directors. The travel expenses incurred by Mr. Calleja in such travels shall be reimbursed in accordance with clause 9 of this Contract.

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6.    ANNUAL LEAVE

Mr. Calleja’s annual leave entitlement as Chairman of the Board of Directors will be 30 calendar days, which will be taken at such times that are convenient to both Mr. Calleja and the Company excluding any time when the Board of Directors meets, in accordance with the Company’s policy for members of the Board of Directors.
 
7.    RESOURCES

The Company will provide Mr. Calleja with any material and human resources necessary for the provision of his services as Chairman of the Board of Directors. 

8.    REMUNERATION and benefits 

8.1    General

Mr. Calleja will be entitled to the remuneration set out in the following provisions, which is consistent with the remuneration policy currently in force, approved at the General Shareholders’ Meeting of the Company held on June16th, 2020.

8.2    Fixed remuneration

From February 1st, 2021 Mr. Calleja will be entitled to a gross annual remuneration of EUR 124,000. This amount will be payable in 14 equal installments: 12 ordinary monthly installments, one extra payment in June and another extra payment in December. These installments will be paid at the end of each month by bank transfer to the current account indicated by Mr. Calleja. 

The gross annual remuneration will be reviewed annually by the Board of Directors, at the proposal of the Appointments and Remuneration Committee of the Company and in accordance with Law, the Company’s policy and directors’ remuneration policy in force from time to time.

8.3    Pension 

Effective for 2021 the Company will pay for the benefit of Mr. Calleja an annual contribution amounting to gross EUR 21,009, or such additional extraordinary contribution as approved by the Company’s Board of Directors, to the defined contribution pension insurance policy no. 53081. No contribution will be made to the Defined benefit pension insurance policy no. 7179, and such insurance policy shall become frozen effective as of 1st February 2021.

8.4    Life and AD&D Insurance 

Based on Mr Calleja’s fixed remuneration pursuant to clause 8.2 of this Contract, the Company will pay for the premiums of the following insurance policies covering Mr. Calleja: (i) insurance policy with Aviva covering death, death due to accident, death due to traffic accident and permanent disability; (ii) life insurance (1654C) and (iii) accident insurance (548A).

8.5    Health insurance

As long as Mr. Calleja resides in Spain and is performing the services under this Contract, the Company will provide health insurance coverage for him and his family, with a maximum total value of EUR 4,000 gross, to be adjusted annually.

8.6    Director’s insurance

The Company will take an insurance covering any potential liability arising for Mr. Calleja from the discharge for his duties to the Company. 

8.7    Company car

Mr. Calleja will be entitled to a company car and fuel card allowances in accordance with the applicable Company’s policy. 

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8.8    Social security

Contributions to Spanish social security will be paid in accordance with Spanish law and applicable European Regulations, as amended from time to time. 

8.9    Withholdings

Withholdings on account of personal income tax and social security contributions payable by Mr. Calleja in accordance with applicable law, including those applicable to the remuneration in kind received by Mr. Calleja, will be deducted from the remuneration agreed in this Contract.

9.    TRAVEL EXPENSES

Mr. Calleja will follow the Company’s and OWC’s travel expenses claims procedures and policies as applicable based on the reasons for the travel. 

10.    TERMINATION OF THE CONTRACT

This Contract may be terminated by either Party at any time.
If the Contract is terminated by Mr. Calleja, he must provide at least 3 months’ prior written notice to the Company. Mr. Calleja fails to give such notice, he must compensate the Company with an amount equivalent to the fixed gross remuneration set out in clause 8.2 that Mr. Calleja is being paid on the date of the termination of this Contract for the defaulted notice period.

This Contract will automatically terminate in the event that Mr. Calleja (i) is not reappointed a member of the Board of the Board of Directors, (ii) is not reappointed the Chairman of the Board of Directors, (iii) dies, (iv) reaches the statutory minimum retirement age, (v) is classified as civilly disabled or disabled for social security purposes in a degree equal or higher than total, or (vi) for a reason that makes him incapable and unable to perform his duties for a period longer than nine months. 

The termination of this Contract will trigger the resignation by Mr. Calleja with immediate effect of his office as a Chairman and member of the Board of Directors of the Company, as well as of any directorship or office held in the interest of the Company. 

For the avoidance of any doubt, in the event of termination of the Contract, Mr. Calleja will not be entitled to any severance compensation or indemnification for his position as Chairman of the Board and under any prior agreements entered into with the Company.

11.    POST-CONTRACTUAL NON-COMPETE OBLIGATION

11.1    The Company’s interest

The Parties agree that after the termination of all legal relationships between Mr. Calleja and any entities of the OTIS Group for any reason whatsoever other than death, disability or inability to provide his services, during the period specified below, Mr. Calleja will refrain from performing any activities that compete with those of the OTIS Group. This applies to any activities performed on his own behalf or on behalf of any company that competes with the OTIS Group. In addition, he will not accept employment or engage in any form (including entering into consulting relationships or similar arrangements) with a business that competes with the businesses of the OTIS Group, unless he first obtains the written consent of the Company’s Board of Directors. Such consent will not be unreasonably withheld.

In particular, Mr. Calleja will refrain from performing any of the following actions or activities:

(a) directly or indirectly making offers or proposals to, seeking, approaching or inducing to contract on behalf of himself or of any third party, any individuals or corporate bodies to which, to the best of Mr. Calleja’s knowledge, the OTIS Group has provided goods or professional services at any time during the two-year period before the entry into force of the post-contractual non-compete obligation established in this clause 11, or that had been negotiating with the OTIS Group the performance of activities or services by the OTIS Group at the time of the entry into force of this post-contractual non-compete obligation; and

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(b) directly or indirectly making offers or proposals to, inducing or soliciting, on behalf of himself or any third party, any individual who on the date of the entry into force of the post-contractual non-compete obligation established in this clause 11 is employed by the OTIS Group so that such individual ceases to work for the OTIS Group; or engaging or employing such individual through any other person or arranging that such individual be engaged or employed by another natural or legal person conducting any business that competes with any of the activities of the OTIS Group.

11.2    Term of the non-compete obligation

Mr. Calleja will refrain from competing under the terms set out above for a period of two years from the termination of any and all employment or services relationships between Mr. Calleja and the Company or any company of the OTIS Group for any reason whatsoever other than death, disability or inability to provide his services. 

11.3    Compensation

As compensation for the non-compete obligation, Mr. Calleja will receive a gross amount equivalent to 12 months of the fixed remuneration established in clause 8.2 that Mr. Calleja is being paid on the date of the termination of this Contract. This compensation will be paid in twenty-four equal monthly installments during the term of the obligation.

11.4    Breach

Should Mr. Calleja breach the post-contractual non-compete obligation, Mr. Calleja must return to the Company all amounts received as compensation for the same. In addition, the Company will not be obligated to pay Mr. Calleja any of the remaining compensation pending payment for the non-compete obligation.

Likewise, should Mr. Calleja breach the post-contractual non-compete obligation, Mr. Calleja must pay the Company an amount equivalent to 12 months of the fixed remuneration established in clause 8.2 that Mr. Calleja is being paid on the date of the termination of this Contract. For the purposes of articles 1,152 and 1,153 of the Spanish Civil Code, this penalty does not exclude any other compensation for damages to which the Company may be entitled, nor will it release Mr. Calleja from his non-compete obligation.

11.5    Release from the obligation

The Company may release Mr. Calleja from his obligation not to compete under the terms set out in this clause 11 at any time (either during the term of his legal relationship with the Company or during the non-compete term) by informing him in writing at least three months in advance of the start date of the non-compete obligation. In that event, from the date of effect of the release, Mr. Calleja will no longer be bound by the non-compete obligation and the Company will no longer be obliged to pay any non-compete compensation.

12.    CONFIDENTIALITY

12.1    Purpose

For the purposes of this clause, “Information” is any economic, financial, technical, commercial, strategic, administrative or any other type of information that Mr. Calleja creates or has knowledge of at any time during the term of this Contract or any previous contract with the Company, as a consequence of the performance of his duties, preceding duties, and any other duties that are assigned to him by the Company, or that may be disclosed to Mr. Calleja verbally, in writing, or by any other means, as well as any analysis, compilation, study, summary, abstract or documentation. “Confidential Information” is all the Information that Mr. Calleja has access to or creates, as a consequence (in the broadest sense) of this Contract or any previous contract with the Company, and that is classified as exclusive or confidential property, or due to its nature or the circumstances in which the creation or disclosure occurs, must, in good faith, be deemed confidential.

12.2    Use

Mr. Calleja agrees to use the Information exclusively for the purpose of performing his duties under this Contract or any other contracts entered into with the Otis Group. Mr. Calleja must treat as and maintain confidential all the Confidential Information and, in particular, not disclose it to any third party or any other employee of the Company without the Company’s prior consent, except when carrying out the duties entrusted to him in this Contract, in any other contracts entered into with the Otis Group, or by law, and not reproduce, transform or, in general, use it in a manner other than that which is necessary for the performance of his duties. Unless required to keep this Confidential 
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Information for the performance of his duties under a contract with another entity of the Otis Group, Mr. Calleja must immediately return to the Company, at the Company’s request, during the term of this Contract or at any other time and automatically upon the termination of this Contract, any Confidential Information, held in any type of medium, disclosed to or created by Mr. Calleja.

13.PERSONAL DATA PROCESSING

13.1    Processing of Mr. Calleja’s personal data by the Company

Mr. Calleja is hereby informed that the Company, OWC and any other member of the OTIS Group that employs individuals who form part of Mr. Calleja’s reporting line within the OTIS Group or who participate, for any reason and at any time, in the adoption or implementation of OTIS Group-wide policies regarding business, IT, human resources and compliance that affect his duties, may process all the information in his CV and in this Contract, as well as the information generated as a consequence of the performance of his duties (including data concerning his identification, image, voice recordings, biometric features, performance-evaluation data, absences, holidays, training, salary information, benefits requested and, exceptionally and in any case, according to applicable regulations, health-related data), for the following purposes:

(i) to execute, manage and monitor this Contract (in particular, to verify compliance with the “Use of E-mail and Internet Access” clause and other OTIS Group policies, to protect the OTIS Group’s confidential information, property and the security of its IT systems, to coordinate and guarantee the continuity of the activity, to manage the whistleblowing programmes, etc.);

(ii) to ensure the OTIS Group’s compliance with its statutory (local and foreign) obligations and with judicial and administrative decisions (local and foreign); and

(iii) to manage certain voluntary processing activities that, during the course of the contractual relationship, could be offered to Mr. Calleja, such as obtaining voluntary benefits (when offered to Mr. Calleja) and voluntary health-related programmes. In those cases, Mr. Calleja’s freely given consent to participate in those programs will be understood as his express consent for the processing of his data in the framework of the management and control of those programs or opportunities. Mr. Calleja may withdraw his consent at any time following the instructions provided in section “Rights of Mr. Calleja”.

13.2    Legitimate grounds for the data processing 

The legitimate grounds for the data processing are: (i) the signing and execution of the Contract; (ii) the legitimate interests of the Company and the OTIS Group; (iii) compliance with the Company’s or any other OTIS Group company’s legal duties; and (iv) exceptionally, Mr. Calleja’s consent.

13.3    Data transfers

As Chairman of the Board of Directors of the Company, Mr. Calleja acknowledges that business, IT, human resources and compliance policies are and must be designed, analysed and applied on a global basis. This means that the Company and other OTIS Group’s companies must participate in the adoption of measures relating to these policies (e.g., in cases where the recipient participates in the adoption or implementation of group-wide policies). In that cases, it will be necessary that these OTIS Group companies may access to Mr. Calleja’s personal data. As part of his obligations under this Contract, Mr. Calleja must comply with all the OTIS Group policies.
Moreover, some or part of the personal data may be disclosed to (i) administrative, legal and regulatory authorities for the above-mentioned compliance purposes; (ii) potential purchasers of any of the Company’s (or other Otis Group’s entities’) shares/assets/businesses, for them to review the subject-matter of their potential purchase and subject to confidentiality duties; and (iii) professional advisors (e.g. accountants, auditors, lawyers, etc.) and third parties supplying products or services (e.g., insurers, HR services providers, technological services providers, etc.), only to the extent they enable the Company or other Otis Group companies to perform the purposes.
Mr. Calleja declares that he has been informed that some of the above-mentioned recipients may be located in countries outside of the Economic European Area (“EEA”) in countries which may not offer a level of protection of personal data that is equivalent to that offered by Spanish legislation. Necessary safeguards will be provided for carrying out such transfers in accordance with applicable data protection regulations.

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13.4    Third-party data

In the event that Mr. Calleja provides data about family members or persons related to him, Mr. Calleja is obligated to inform such third parties about the data protection policy set out in this clause.

13.5    Rights of Mr. Calleja

The rights to access, rectification, erasure, objection and data portability, the right to restrict the processing, to withdraw consent and he right to not be subject to automated individual decision-making with legal effects, can be exercised by sending a written communication to the human resources department of the Company or to the Privacy Committee  (privacidad@otis.com). Mr. Calleja is also informed that may also file a claim or request with the relevant data protection authority.

13.6    Processing by Mr. Calleja of third party personal data 
Mr. Calleja may have access to certain personal data (of clients, providers, contact persons, etc.) and that the Company puts at his disposal to carry out the services that have been contracted to him.  The following rules will apply to the processing of the personal data carried out by Mr. Calleja: (i) data must only be processed following the instructions of the Company and in the performance of his duties; (ii) any processing of personal data must comply with the user, technical and organisational safety measures implemented by the Company and communicated to Mr. Calleja from time to time; (iii) the data must remain confidential, even after the termination of this Contract for any reason, and must be returned to the Company upon the termination of this Contract together with any medium or document containing the data; (iv) Mr. Calleja must immediately notify to the human resources department of the Company or the Spanish Privacy Committee any security breach of which he might be aware; (v) Mr. Calleja must support the Company to ensure the fulfilment of the obligations set out in articles 32 to 36 of the General Data Protection Regulation (the “GDPR”); (vi) Mr. Calleja shall comply with the conditions set out in sections 2 and 4 of article 28 of the GDPR to subcontract a data processor and put at the Company’s disposal all necessary information to prove the fulfilment of the obligations established in article 28 of the GDPR; (vii) Mr. Calleja shall ensure that any authorised individuals to process personal data have committed themselves to respect the confidentiality or are subject to a confidentiality obligation of statutory nature; and (viii) Mr. Calleja shall assist the Company so it can fulfill its obligation to respond to data subjects’ requests regarding their data protection rights. Failure to comply with these obligations could amount to wrong-doing by the Company and/or Mr. Calleja, and a very serious breach of Mr. Calleja’s obligations that could entail the termination of this Contract.

14.COMPANY PROPERTY

14.1    Duty of care

Mr. Calleja must keep all documents, objects and materials that he receives from the Company and/or any OTIS Group Company safe and in good condition.

14.2    Returning property upon termination

Upon request by the Company, Mr. Calleja will deliver to the Company any documentation and records relating to the Company, its clients, suppliers and any persons or companies that have had any dealings with the Company. Mr. Calleja will not be entitled to retain any copies of such documentation. 

Mr. Calleja must also return to the Company any property that he has received from the Company, including but not limited to, the Company car, mobile telephone or any other electronic device, hardware and software, credit cards, keys or access cards, and any other items belonging to the Company that may be in Mr. Calleja’ possession or under his control.

15.USE OF EMAIL AND INTERNET ACCESS

Mr. Calleja will have Internet access and an e-mail account in order to carry out his duties. Mr. Calleja expressly agrees that such work tools belong to the Otis Group and will follow and be subject to the Otis Group’s policy in relation to use of e-mail and internet access.

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16.CHANGE OF DETAILS

Mr. Calleja must inform the Company of any change to his personal or professional details that might be relevant for the purposes of this Contract, or for the Company’s social security and tax obligations. Failure to provide this information will exonerate the Company from liability.

17.    PRIOR AGREEMENTS

Other than the employment agreement to be entered into between Otis Elevator Worldwide, SPRL and Mr. Calleja with estimated day on February 1st, 2021 and the Termination Agreement entered into by the Company and Mr. Calleja on January 26th, 2021, any prior contract or agreement, verbal or in writing, entered into by Mr. Calleja and the company or any OTIS Group company, including the services agreement between the Parties dated 3 June 2015, is expressly abrogated and replaced by this Contract. 

18.     GOVERNING LAW

In the absence of any express provision herein, this Contract will be governed by the Articles of Association of the Company, the Regulations of the Shareholders’ Meeting and Board of Directors, the Company’s Internal Code of Conduct, and any regulations that may be approved from time to time by the Board of Directors or any competent body of the Company or the OTIS Group, as well as by the Spanish corporate law and any other civil, commercial or administrative applicable common Spanish laws and regulations.

19.JURISDICTION

For the resolution of any and all disputes which may arise out of the interpretation, validity, enforceability, performance or termination of this Contract, the Parties hereby expressly submit to the Courts of the city of Madrid (villa de Madrid) waiving any other venue that it may correspond.

As witness, the parties initial each page and sign at the end of the two counterparts, in the place and on the date first indicated above.

									
	ZARDOYA OTIS, S.A.
P.p.

/s/ Lorea Garcia Jauregui
		

/s/ Bernardo Calleja Fernández

	Ms Lorea García Jauregui
		Mr. Bernardo Calleja Fernández

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