Document:

Exhibit 10.3

      

       

        EXECUTION VERSION

      

       

        

      

      

      
        EMPLOYEE MATTERS AGREEMENT

         

        BY AND AMONG

         

        UNITED TECHNOLOGIES CORPORATION,

         

        CARRIER GLOBAL CORPORATION

         

        AND

         

        OTIS WORLDWIDE CORPORATION

         

        DATED AS OF APRIL 2, 2020

         

        
          
            

        

        TABLE OF CONTENTS

         

        	
                ARTICLE I DEFINITIONS

              	
                2

              
	 	 	 
	 	
                Section 1.01.

              	
                Definitions

              	
                2

              
	 	
                Section 1.02.

              	
                Interpretation

              	
                11

              
	 	 
	
                ARTICLE II GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES

              	
                11

              
	 	 
	 	
                Section 2.01.

              	
                General Principles

              	
                11

              
	 	
                Section 2.02.

              	
                Service Credit

              	
                13

              
	 	
                Section 2.03.

              	
                Adoption and Transfer and Assumption of Benefit Plans

              	
                14

              
	 	 
	
                ARTICLE III ASSIGNMENT OF EMPLOYEES

              	
                16

              
	 	 
	 	
                Section 3.01.

              	
                Active Employees

              	
                16

              
	 	
                Section 3.02.

              	
                Individual Agreements

              	
                17

              
	 	
                Section 3.03.

              	
                Consultation with Labor Representatives; Labor Agreements

              	
                18

              
	 	
                Section 3.04.

              	
                Non-Solicitation

              	
                19

              
	 	 
	
                ARTICLE IV EQUITY, INCENTIVE AND EXECUTIVE COMPENSATION

              	
                19

              
	 	 
	 	
                Section 4.01.

              	
                General Rules and Adoption of Equity Plans

              	
                19

              
	 	
                Section 4.02.

              	
                Equity Incentive Awards

              	
                20

              
	 	
                Section 4.03.

              	
                Cash Payment for Fractional Shares

              	
                31

              
	 	
                Section 4.04.

              	
                Non-Equity Incentive Plans

              	
                31

              
	 	
                Section 4.05.

              	
                Director Compensation

              	
                31

              
	 	 
	
                ARTICLE V U.S. QUALIFIED RETIREMENT PLANS

              	
                32

              
	 	 
	 	
                Section 5.01.

              	
                UTC Employee Retirement Plan

              	
                32

              
	 	
                Section 5.02.

              	
                UTC Savings Plans

              	
                32

              
	 	 
	
                ARTICLE VI NONQUALIFIED DEFERRED COMPENSATION PLANS

              	
                34

              
	 	 
	 	
                Section 6.01.

              	
                UTC Retained Nonqualified Deferred Compensation Plans

              	
                34

              
	 	
                Section 6.02.

              	
                UTC Bifurcated Nonqualified Deferred Compensation Plans

              	
                35

              
	 	 
	
                ARTICLE VII NON-U.S. RETIREMENT PLANS

              	
                37

              
	 	 
	 	
                Section 7.01.

              	
                Retention of UK Pension Scheme

              	
                37

              
	 	 
	
                ARTICLE VIII WELFARE BENEFIT PLANS

              	
                37

              
	 	 
	 	
                Section 8.01.

              	
                Welfare Plans

              	
                37

              
	 	
                Section 8.02.

              	
                COBRA

              	
                38

              
	 	
                Section 8.03.

              	
                Flexible Benefit Plans

              	
                39

              
	 	
                Section 8.04.

              	
                Vacation, Holidays and Leaves of Absence

              	
                39

              
	 	
                Section 8.05.

              	
                Disability Plans

              	
                40

              

        

        

        
          -i-

          
            

        

        	 	
                Section 8.06.

              	
                Life Insurance

              	
                40

              
	 	
                Section 8.07.

              	
                Retiree Medical

              	
                40

              
	 	
                Section 8.08.

              	
                Severance, Retention and Unemployment Compensation

              	
                40

              
	 	
                Section 8.09.

              	
                Workers’ Compensation

              	
                41

              
	 	
                Section 8.10.

              	
                Insurance Contracts

              	
                41

              
	 	
                Section 8.11.

              	
                Third-Party Vendors

              	
                41

              
	 	 
	
                
                  ARTICLE IX MISCELLANEOUS

                

              	
                41

              
	 	 
	 	
                Section 9.01.

              	
                Information Sharing and Access

              	
                41

              
	 	
                Section 9.02.

              	
                Preservation of Rights to Amend

              	
                42

              
	 	
                Section 9.03.

              	
                Fiduciary Matters

              	
                42

              
	 	
                Section 9.04.

              	
                Reimbursement of Costs and Expenses

              	
                43

              
	 	
                Section 9.05.

              	
                Dispute Resolution

              	
                43

              
	 	
                Section 9.06.

              	
                No Third-Party Beneficiaries

              	
                43

              
	 	
                Section 9.07.

              	
                Incorporation of Separation Agreement Provisions

              	
                43

              

        

        

        
          -ii-

          
            

        

        EMPLOYEE MATTERS AGREEMENT

         

        This EMPLOYEE MATTERS AGREEMENT, dated as of April 2, 2020 (this “Agreement”), is by and among United Technologies Corporation, a Delaware corporation (“UTC”), Carrier Global
          Corporation, a Delaware corporation (“Carrier”), and Otis Worldwide Corporation, a Delaware corporation (“Otis”).  UTC, Otis and Carrier are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

         

        R E C I T A L S:

         

        WHEREAS, the board of directors of UTC (the “UTC Board”) has determined that it is in the best interests of UTC and its shareowners to separate UTC into three independent, publicly traded
          companies:  one that shall operate the UTC Business, one that shall operate the Carrier Business and one that shall operate the Otis Business;

         

        WHEREAS, in furtherance of the foregoing, the UTC Board has determined that it is appropriate and desirable to (a) separate the Carrier Business from the UTC Business and the Otis Business (the “Carrier

            Separation”) and, following the Carrier Separation, make a distribution, on a pro rata basis, to holders of UTC Shares on the Carrier Record Date of all of the outstanding Carrier Shares owned by
          UTC (the “Carrier Distribution”) and (b) separate the Otis Business from the UTC Business and the Carrier Business (the “Otis Separation,” and the Carrier Separation, together or as applicable, the “Separation”) and,
          following the Otis Separation, make a distribution, on a pro rata basis, to holders of UTC Shares on the Otis Record Date (which may be the same date as the Carrier Record Date) of all of the outstanding
          Otis Shares owned by UTC (the “Otis Distribution,” and together with the Carrier Distribution, the “Distributions”);

         

        WHEREAS, to effectuate the Separation and Distributions, UTC, Carrier and Otis have entered into a Separation and Distribution Agreement, dated as of April 2, 2020 (the “Separation Agreement”);

         

        WHEREAS, in addition to the matters addressed by the Separation Agreement, the Parties desire to enter into this Agreement that is an Ancillary Agreement to set forth the terms and conditions of
          certain employment, compensation and benefit matters; and

         

        WHEREAS, the Parties acknowledge that this Agreement, the Separation Agreement and the other Ancillary Agreements represent the integrated agreement of UTC, Carrier and Otis relating to the
          Separation and Distributions, are being entered into together and would not have been entered into independently.

         

        NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of
          which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

         

        
          
            

        

        ARTICLE I

        DEFINITIONS

         

        Section 1.01.       Definitions.  Capitalized terms used herein and not otherwise defined shall have the respective meanings assigned to them in
          the Separation Agreement.  For purposes of this Agreement, the following terms shall have the meanings set forth below.

         

        “Agreement” has the meaning set forth in the Preamble to this Agreement and shall include all amendments, modifications and changes hereto entered into pursuant to Section 9.07.

         

        “Applicable Exchange” means, as of any applicable time, the securities exchange that is the principal market for UTC, Carrier or Otis Shares, as applicable.

         

        “Benefit Plan” means any contract, agreement, policy, practice, program, plan, trust, commitment or arrangement providing for benefits, perquisites or compensation of any nature from an
          employer to any Employee or Former Employee, or to any family member, dependent, or beneficiary of any such Employee or Former Employee including cash or deferred arrangement plans, profit sharing plans, post-employment programs, pension plans,
          thrift plans, supplemental pension plans, welfare plans, stock option, stock purchase, stock appreciation rights, restricted stock units, performance stock units, other equity-based compensation and contracts, agreements, policies, practices,
          programs, plans, trusts, commitments and arrangements providing for terms of employment, fringe benefits, severance benefits, change in control protections or benefits, travel and accident, life, accidental death and dismemberment, disability and
          accident insurance, tuition reimbursement, adoption assistance, travel reimbursement, vacation, sick, personal or bereavement days, leaves of absences and holidays; provided, however, that the term “Benefit Plan” does not include
          any government-sponsored benefits.

         

        “Carrier” has the meaning set forth in the Preamble.

         

        “Carrier Adjusted Stock Value” means the product of (a) the Carrier Stock Value and (b) the Carrier Distribution Ratio.

         

        “Carrier Adjustment Ratio” means the quotient, obtained by dividing (a) the UTC Pre-Separation Stock Value by (b) the Carrier Stock Value.

         

        “Carrier Awards” means Carrier DSU Awards, Carrier Option Awards, Carrier PSU Awards, Carrier RSU Awards, Carrier SAR Awards, cash-settled Otis DSU Awards, and cash-settled Post-Separation
          UTC DSU Awards held by Carrier Transferred Directors, collectively.

         

        “Carrier Benefit Plan” means any Benefit Plan established, sponsored, maintained or contributed to by a member of the Carrier Group as of or after the Effective Time, including any Benefit
          Plans retained or adopted by Carrier pursuant to Sections 2.03(a) and 2.03(c).

         

        “Carrier Board” means the Board of Directors of Carrier.

         

        “Carrier Deferred Compensation Plans” means the Carrier Deferred Compensation Plans established pursuant to Sections 2.03(a) and 6.02.

         

        
          -2-

          
            

        

        “Carrier Distribution Ratio” means a number equal to one (1).

         

        “Carrier DSU Award” means an award of deferred stock units settled in cash or in stock relating to Carrier Shares that is assumed by the relevant Party in accordance with Section
            4.02(g).

         

        “Carrier DSU Plan” means the Carrier Board of Directors Deferred Stock Unit Plan established by Carrier as of the Effective Time pursuant to Sections 2.03(a) and 4.01(a).

         

        “Carrier Flexible Benefit Plans” means the Carrier Welfare Plans that provide dependent care and medical benefits under Section 125 of the Code.

         

        “Carrier Group Employees” has the meaning set forth in Section 3.01(a)(i).

         

        “Carrier Individual Agreement” means any individual (a) employment contract or offer letter, (b) retention, severance or change in control agreement, (c) expatriate (including any
          international assignee) contract or agreement (including agreements and obligations regarding repatriation, relocation or equalization of Taxes and living standards in the host country) or (d) other agreement containing restrictive covenants
          (including confidentiality, non-competition and non-solicitation provisions) between a member of a Group, on the one hand, and (i) a Carrier Group Employee or (ii) a Former Carrier Group Employee, on the other hand, in each case, as in effect
          immediately prior to the Carrier Distribution Date.

         

        “Carrier LTIP” means the Carrier 2020 Long-Term Incentive Plan established by Carrier as of the Effective Time pursuant to Sections 2.03(a) and 4.01(a).

         

        “Carrier Option Award” means an award of options to purchase Carrier Shares assumed by Carrier pursuant to the Carrier LTIP in accordance with Sections 4.02(a) and 4.02(b).

         

        “Carrier PSU Award” means an award of performance-based stock units relating to Carrier Shares assumed by Carrier pursuant to the Carrier LTIP in accordance with Section 4.02(f) or

          pursuant to the Carrier PSU Deferral Plan in accordance with Section 6.02.

         

        “Carrier Pension Preservation Plan (Post-2005)” means the Carrier Pension Preservation Plan which is a Carrier Deferred Compensation Plan established pursuant to Sections 2.03(a)
          and 6.02.

         

        “Carrier PSU Deferral Plan” means the Carrier LTIP Performance Share Unit Deferral Plan which is a Carrier Deferred Compensation Plan established pursuant to Sections 2.03(a) and 6.02.

         

        “Carrier RSU Award” means an award of time-based restricted stock units relating to Carrier Shares assumed by Carrier pursuant to the Carrier LTIP in accordance with Section 4.02(e).

         

        

        
          “Carrier SAR Award” means an award of stock appreciation rights relating to Carrier Shares assumed by Carrier pursuant to the Carrier LTIP in accordance with Sections 4.02(c) and 4.02(d).

        

         

        
          -3-

          
            

        

        “Carrier Savings Plan” means the Carrier Employee Savings Plan established pursuant to Sections 2.03(a) and 5.02(b).

         

        “Carrier Savings Restoration Plan” means the Carrier Savings Restoration Plan which is a Carrier Deferred Compensation Plan established pursuant to Sections 2.03(a) and 6.02.

         

        “Carrier Separation” has the meaning set forth in the Recitals.

         

        “Carrier Distribution” has the meaning set forth in the Recitals.

         

        “Carrier Share” means a share of the common stock, par value $0.01 per share, of Carrier.

         

        “Carrier Stock Value” means the simple average of the volume-weighted average per share price of Carrier Shares trading on the Applicable Exchange during each of the two (2) consecutive
          full Trading Sessions occurring immediately after the third full Trading Session after the Effective Time.

         

        “Carrier Transferred Director” means each Carrier director as of the Effective Time who served on the UTC Board immediately prior to the Effective Time.

         

        “Carrier Value Factor” means the quotient, rounded to four decimal places, obtained by dividing (a) the product of (i) the Carrier Distribution Ratio and (ii) the UTC Pre-Separation Stock
          Value, by (b) the sum of (i) the Carrier Adjusted Stock Value, (ii) the Otis Adjusted Stock Value, and (iii) the UTC Post-Separation Stock Value.

         

        “Carrier Welfare Plan” means a Welfare Plan established, sponsored, maintained or contributed to by any member of the Carrier Group for the benefit of Carrier Group Employees and Former
          Carrier Group Employees, including any Welfare Plan retained or adopted by Carrier pursuant to Sections 2.03(a), 2.03(c) and 8.01.

         

        “COBRA” means the U.S. Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Section 601 et seq. of ERISA and at Section 4980B of
          the Code and any similar foreign, state or local laws.

         

        “Distributions” has the meaning set forth in the Recitals.

         

        “Employee” means any UTC Group Employee, Carrier Group Employee or Otis Group Employee.

         

        “ERISA” means the U.S. Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

         

        “Former Carrier Group Employee” means any individual (a) who, as of the Effective Time, is a former employee of UTC or any of its Subsidiaries or former Subsidiaries, and (b) whose most
          recent employment with UTC or any of its Subsidiaries or former Subsidiaries was with a member of the Carrier Group or the Carrier Business (and for the avoidance of doubt, without regard to any recordkeeping conventions).

         

        
          -4-

          
            

        

        “Former Employees” means Former UTC Group Employees, Former Carrier Group Employees and Former Otis Group Employees.

         

        “Former Otis Group Employee” means any individual (a) who, as of the Effective Time, is a former employee of UTC or any of its Subsidiaries or former Subsidiaries, and (b) whose most
          recent employment with UTC or any of its Subsidiaries or former Subsidiaries was with a member of the Otis Group or the Otis Business (and for the avoidance of doubt, without regard to any recordkeeping conventions).

         

        “Former UTC Group Employee” means any individual who (a) as of the Effective Time, is a former employee of UTC or any of its Subsidiaries or former Subsidiaries and (b) is not a Former
          Carrier Group Employee or a Former Otis Group Employee (and for the avoidance of doubt, without regard to any recordkeeping conventions).

         

        “Labor Agreement” has the meaning set forth in Section 2.01.

         

        “Otis” has the meaning set forth in the Preamble.

         

        “Otis Adjusted Stock Value” means the product of (a) the Otis Stock Value and (b) the Otis Distribution Ratio.

         

        “Otis Adjustment Ratio” means the quotient, obtained by dividing (a) the UTC Pre-Separation Stock Value by (b) the Otis Stock Value.

         

        “Otis Awards” means Otis DSU Awards, Otis Option Awards, Otis PSU Awards, Otis RSU Awards, Otis SAR Awards, cash-settled Carrier DSU Awards and cash-settled Post-Separation UTC DSU Awards
          held by Otis Transferred Directors, collectively.

         

        “Otis Benefit Plan” means any Benefit Plan established, sponsored, maintained or contributed to by a member of the Otis Group as of or after the Effective Time, including any Benefit Plans
          retained or adopted by Otis pursuant to Sections 2.03(b) and 2.03(d).

         

        “Otis Board” means the Board of Directors of Otis.

         

        “Otis Deferred Compensation Plans” means the Otis Deferred Compensation Plans established pursuant to Sections 2.03(b) and 6.02.

         

        “Otis Distribution” has the meaning set forth in the Recitals.

         

        “Otis Distribution Ratio” means a number equal to one-half (0.5).

         

        “Otis DSU Award” means an award of deferred stock units settled in cash or in stock relating to Otis Shares that is assumed by the relevant Party in accordance with Section 4.02(g).

         

        “Otis DSU Plan” means the Otis Board of Directors Deferred Stock Unit Plan established by Otis as of the Effective Time pursuant to Sections 2.03(b) and 4.01.

         

        
          -5-

          
            

        

        “Otis Flexible Benefit Plans” means the Otis Welfare Benefit Plans that provide dependent care and medical benefits under Section 125 of the Code.

         

        “Otis Group Employees” has the meaning set forth in Section 3.01(a)(ii).

         

        “Otis Individual Agreement” means any individual (a) employment contract or offer letter, (b) retention, severance or change in control agreement, (c) expatriate (including any
          international assignee) contract or agreement (including agreements and obligations regarding repatriation, relocation or equalization of Taxes and living standards in the host country) or (d) other agreement containing restrictive covenants
          (including confidentiality, non-competition and non-solicitation provisions) between a member of a Group, on the one hand, and (i) an Otis Group Employee or (ii) a Former Otis Group Employee, on the other hand, as in effect immediately prior to
          the Otis Distribution Date.

         

        “Otis LTIP” means the Otis Long-Term Incentive Plan established by Otis as of the Effective Time pursuant to Sections 2.03(b) and 4.01.

         

        “Otis Option Award” means an award of options to purchase Otis Shares assumed by Otis pursuant to the Otis LTIP in accordance with Sections 4.02(a) and 4.02(b).

         

        “Otis Pension Preservation Plan (Post-2005)” means the Otis Pension Preservation Plan which is an Otis Deferred Compensation Plan established pursuant to Sections 2.03(b) and 6.02.

         

        “Otis PSU Award” means an award of performance-based stock units relating to Otis Shares assumed by Otis pursuant to the Otis LTIP in accordance with Section 4.02(f) or pursuant to
          the Otis PSU Deferral Plan in accordance with Section 6.02.

         

        “Otis PSU Deferral Plan” means the Otis LTIP Performance Share Unit Deferral Plan which is an Otis Deferred Compensation Plan established pursuant to Sections 2.03(b) and 6.02.

         

        “Otis Puerto Rico Savings Plan” means the Otis Elevator Puerto Rico Retirement Savings Plan established by Otis pursuant to Sections 2.03(b) and 5.02(c).

         

        “Otis RSU Award” means an award of time-based restricted stock units relating to Otis Shares assumed by Otis pursuant to the Otis LTIP in accordance with Section 4.02(e).

         

        “Otis SAR Award” means an award of stock appreciation rights relating to Otis Shares assumed by Otis pursuant to the Otis LTIP in accordance with Sections 4.02(c) and 4.02(d).

         

        “Otis Savings Plan” means the Otis Savings Plan established pursuant to Sections 2.03(b) and 5.02(c).

         

        “Otis Savings Plans” has the meaning set forth in Section 5.02(c).

         

        “Otis Savings Restoration Plan” means the Otis Savings Restoration Plan which is an Otis Deferred Compensation Plan established pursuant to Sections 2.03(b) and 6.02.

         

        
          -6-

          
            

        

        “Otis Separation” has the meaning set forth in the Recitals.

         

        “Otis Share” means a share of the common stock, par value $0.01 per share, of Otis.

         

        “Otis Stock Value” means the simple average of the volume-weighted average per share price of Otis Shares trading on the Applicable Exchange during each of the two (2) consecutive full
          Trading Sessions occurring immediately after the third full Trading Session after the Effective Time.

         

        “Otis Transferred Director” means each Otis director as of the Effective Time who served on the UTC Board immediately prior to the Effective Time.

         

        “Otis Value Factor” means the quotient, rounded to four decimal places, obtained by dividing (a) the product of (i) the Otis Distribution Ratio and (ii) the UTC Pre-Separation Stock Value,
          by (b) the sum of (i) the Otis Adjusted Stock Value, (ii) the Carrier Adjusted Stock Value, and (iii) the UTC Post-Separation Stock Value.

         

        “Otis Welfare Plan” means a Welfare Plan established, sponsored, maintained or contributed to by any member of the Otis Group for the benefit of Otis Group Employees and Former Otis Group
          Employees, including any Welfare Plan retained or adopted by Otis pursuant to Sections 2.03(b), 2.03(d) and 8.01.

         

        “Party” or “Parties” has the meaning set forth in the Preamble.

         

        “Post-Separation UTC Awards” means (a) Post-Separation UTC DSU Awards, (b) Post-Separation UTC Option Awards, (c) Post-Separation UTC PSU Awards, (d) Post-Separation UTC RSU Awards, (e)
          Post-Separation SAR Awards, and (f) cash-settled Carrier DSU Awards and cash-settled Otis DSU Awards held by UTC Non-Employee Directors who will continue to serve on the UTC Board immediately following the Effective Time (regardless of whether
          such individuals are Otis Transferred Directors or Carrier Transferred Directors immediately following the Effective Time), collectively.

         

        “Post-Separation UTC DSU Awards” means a UTC DSU Award settled in cash or in stock relating to UTC Shares that is assumed by the relevant Party as adjusted as of the Effective Time in
          accordance with Section 4.02(g).

         

        “Post-Separation UTC Option Award” means a UTC Option Award adjusted as of the Effective Time in accordance with Sections 4.02(a) and 4.02(b).

         

        “Post-Separation UTC PSU Award” means a UTC PSU Award adjusted as of the Effective Time in accordance with Section 4.02(f).

         

        “Post-Separation UTC RSU Award” means a UTC RSU Award adjusted as of the Effective Time in accordance with Section 4.02(e).

         

        “Post-Separation UTC SAR Award” means a UTC SAR Award adjusted as of the Effective Time in accordance with Sections 4.02(c) and 4.02(d).

         

        
          -7-

          
            

        

        “Requesting Party” has the meaning set forth in Section 9.04.

         

        “Restricted Employees” has the meaning set forth in Section 3.04(a).

         

        “Securities Act” means the U.S. Securities Act of 1933, as amended, together with the rules and regulations promulgated thereunder.

         

        “Separation” has the meaning set forth in the Recitals.

         

        “Separation Agreement” has the meaning set forth in the Recitals.

         

        “Trading Session” means the period of time during any given calendar day, commencing with the determination of the opening price on the Applicable Exchange and ending on the determination
          of the closing price on the Applicable Exchange during the regular trading session, in which trading in UTC Shares, Carrier Shares or Otis Shares (as applicable) is permitted on the Applicable Exchange.

         

        “Transferred Account Balances” has the meaning set forth in Section 8.03.

         

        “UTC” has the meaning set forth in the Preamble.

         

        “UTC Adjustment Ratio” means the quotient, obtained by dividing (a) the UTC Pre-Separation Stock Value by (b) the UTC Post-Separation Stock Value.

         

        “UTC Award” means each UTC DSU Award, UTC Option Award, UTC PSU Award, UTC RSU Award and UTC SAR Award..

         

        “UTC Benefit Plan” means any Benefit Plan established, sponsored or maintained by UTC or any of its Subsidiaries immediately prior to the Effective Time, but excluding any (i) Carrier
          Benefit Plan, including any plan transferred to and assumed by Carrier pursuant to Sections 2.03(a) and 2.03(c), and (ii) any Otis Benefit Plan, including any plan transferred to and assumed by Otis pursuant to Sections
            2.03(b) and 2.03(d).

         

        “UTC Bifurcated Deferred Compensation Plan” means each of the UTC Savings Restoration Plan, the UTC Pension Preservation Plan (Post-2005), the UTC Deferred Compensation Plan, the UTC
          Company Automatic Contribution Excess Plan, the UTC LTIP PSU Deferral Plan, the Retirement Plan for Third Country National Employees, and the Internationally Mobile
          Employee Retirement Plan.

         

        “UTC Board” has the meaning set forth in the Recitals.

         

        “UTC Compensation Committee” means the Compensation Committee of the UTC Board.

         

        “UTC DSU Award” means an award representing a contractual right to receive UTC Shares or the cash value thereof granted pursuant to the UTC DSU Plan that is outstanding immediately prior
          to the Effective Time.

         

        
          -8-

          
            

        

        “UTC DSU Plan” means the UTC Board of Directors Deferred Stock Unit Plan.

         

        “UTC Flexible Benefit Plans” means the UTC Welfare Plans that provide dependent care and medical benefits under Section 125 of the Code.

         

        “UTC Group Employees” has the meaning set forth in Section 3.01(a)(iii).

         

        “UTC Individual Agreement” means any individual (a) employment contract or offer letter, (b) retention, severance or change in control agreement, (c) expatriate (including any
          international assignee) contract or agreement (including agreements and obligations regarding repatriation, relocation or equalization of Taxes and living standards in the host country) or (d) other agreement containing restrictive covenants
          (including confidentiality, non-competition and non-solicitation provisions) between a member of a Group, on the one hand, and (i) a UTC Group Employee or (ii) a Former UTC Group Employee, on the other hand, as in effect immediately prior to the
          Distribution Date.

         

        “UTC LTIP” means each of the United Technologies Corporation 2018 Long-Term Incentive Plan, the United Technologies Corporation Long-Term Incentive Plan, and the Rockwell Collins, Inc.
          2015 Long-Term Incentives Plan, as assumed by UTC.

         

        “UTC Non-Employee Director” means an individual who serves or served as a non-employee director of the UTC Board.

         

        “UTC Option Award” means an award of options to purchase UTC Shares granted pursuant to a UTC LTIP that is outstanding as of immediately prior to the Effective Time.

         

        “UTC Pension Preservation Plan (Pre-2005)” means the UTC Pension Preservation Plan, as in effect on December 31, 2004.

         

        “UTC Pension Preservation Plan (Post-2005)” means the UTC Pension Preservation Plan, as in effect on January 1, 2005.

         

        “UTC Post-Separation Stock Value” means the simple average of the volume-weighted average per share price of UTC Shares trading on the Applicable Exchange during each of the two (2)
          consecutive full Trading Sessions occurring immediately after the third full Trading Session after the Effective Time.

         

        “UTC Pre-Separation Stock Value” means the closing price per share of UTC Shares trading “regular way with due bills” during the last full Trading Session immediately prior to the
          Effective Time.

         

        “UTC PSU Award” means an award of performance-based stock units relating to UTC Shares granted pursuant to a UTC LTIP that is outstanding immediately prior to the Effective Time.

         

        “UTC Puerto Rico Savings Plan” means the United Technologies Company Puerto Rico Savings Plan.

         

        
          -9-

          
            

        

        “UTC Represented Savings Plan” means the United Technologies Corporation Represented Employee Savings Plan.

         

        “UTC Retained Deferred Compensation Plan” means each of the Rockwell Collins 2005 Non-Qualified Retirement Savings Plan, the Rockwell Collins Pre-2005 Non-Qualified Retirement Savings
          Plan, the Rockwell Collins 2005 Deferred Compensation Plan, the Rockwell Collins 2005 Non-Qualified Pension Plan, the B/E Aerospace 2010 Deferred Compensation Plan, the Sundstrand Corporation Deferred Compensation Plan, the Goodrich Corp Savings
          Benefit Restoration Plan, the UTC Pension Preservation Plan, As Amended and Restated Effective January 1, 1996, the UTC Pension Preservation Plan (Pre-2005) and each other nonqualified deferred compensation plan sponsored by a member of the UTC
          Group prior to the Effective Time that is not a UTC Bifurcated Deferred Compensation Plan.

         

        “UTC Retirement Plan” means the United Technologies Corporation Retirement Plan.

         

        “UTC RSU Award” means an award of restricted stock units with respect to UTC Shares granted pursuant to a UTC LTIP that is outstanding as of immediately prior to the Effective Time.

         

        “UTC SAR Award” means an award of stock appreciation rights with respect to UTC Shares granted pursuant to a UTC LTIP that is outstanding as of immediately prior to the Effective Time.

         

        “UTC Savings Plan” means the United Technologies Corporation Employee Savings Plan.

         

        “UTC Shares” means the shares of common stock, par value $1.00 per share, of UTC.

         

        “UTC Value Factor” means the quotient, obtained by dividing (a) the UTC Pre-Separation Stock Value, by (b) the sum of (i) the Carrier Adjusted Stock Value, (ii) the Otis Adjusted Stock
          Value, and (iii) the UTC Post-Separation Stock Value.

         

        “UTC Welfare Plan” means any UTC Benefit Plan that is a Welfare Plan.

         

        “Welfare Plan” means any “welfare plan” (as defined in Section 3(1) of ERISA) or a “cafeteria plan” under Section 125 of the Code, and any benefits offered thereunder, and any other plan
          offering health benefits (including medical, prescription drug, dental, vision, mental health, substance abuse and retiree health), disability benefits, or life, accidental death and dismemberment, and business travel insurance, pre-Tax premium
          conversion benefits, dependent care assistance programs, employee assistance programs, paid time-off programs, contribution funding toward a health savings account, flexible spending accounts, supplemental unemployment benefits or severance.

         

        
          -10-

          
            

        

        Section 1.02.        Interpretation.  Section 10.15 (Interpretation) of the Separation Agreement is hereby incorporated by reference.

         

        ARTICLE II

        GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES

         

        Section 2.01.     General Principles.  All provisions herein shall be subject to the requirements of all applicable Law and any collective
          bargaining, works council or similar agreement or arrangement with any labor union, works council or other labor representative (each, a “Labor Agreement”).  Notwithstanding anything in this Agreement to the contrary, if the terms of a
          Labor Agreement or applicable Law require that any Assets or Liabilities be retained or assumed by, or transferred to, a Party in a manner that is different than what is set forth in this Agreement, such retention, assumption or transfer shall be
          made in accordance with the terms of such Labor Agreement and applicable Law and shall not be made as otherwise set forth in this Agreement; provided that, in such case, the Parties shall take all necessary action to preserve the economic
          terms of the allocation of Assets and Liabilities contemplated by this Agreement.  The provisions of this Agreement shall apply in respect of all jurisdictions.

         

        (a)         Acceptance and Assumption of Carrier Liabilities.  Except as otherwise provided by this Agreement, on or prior to the Effective Time, but in
          any case prior to the Carrier Distribution, Carrier and the applicable Carrier Designees shall accept, assume and agree to faithfully perform, discharge and fulfill all of the following Liabilities in accordance with their respective terms (each
          of which shall be considered a Carrier Liability), regardless of when or where such Liabilities arose or arise, or whether the facts on which they are based occurred prior to or subsequent to the Effective Time, regardless of where or against
          whom such Liabilities are asserted or determined (including any such Liabilities arising out of claims made by UTC’s, Carrier’s or Otis’s respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates against any
          member of the UTC Group, the Carrier Group or the Otis Group) or whether asserted or determined prior to the date hereof, and regardless of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud or
          misrepresentation by any member of the UTC Group, the Carrier Group or the Otis Group, or any of their respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates:  

         

        (i)         any and all wages, salaries, incentive compensation, equity compensation, commissions, bonuses and any other employee compensation or benefits payable to or on behalf of any Carrier
          Group Employees and Former Carrier Group Employees after the Effective Time, without regard to when such wages, salaries, incentive compensation, equity compensation, commissions, bonuses or other employee compensation or benefits are or may have
          been awarded or earned;

         

        (ii)         any and all Liabilities whatsoever with respect to claims under a Carrier Benefit Plan, taking into account the Carrier Benefit Plan’s assumption of Liabilities with respect to
          Carrier Group Employees and Former Carrier Group Employees, that were originally the Liabilities of the corresponding UTC Benefit Plan with respect to periods prior to the Effective Time;

         

        
          -11-

          
            

        

        (iii)       any and all Liabilities arising out of, relating to or resulting from the employment, or termination of employment of all Carrier Group Employees and Former Carrier Group Employees;
          and

         

        (iv)         any and all Liabilities expressly assumed or retained by any member of the Carrier Group pursuant to this Agreement.

         

        (b)         Acceptance and Assumption of Otis Liabilities.  Except as otherwise provided by this Agreement, on or prior to the Effective Time, but in any
          case prior to the Otis Distribution, Otis and the applicable Otis Designees shall accept, assume and agree to faithfully perform, discharge and fulfill all of the following Liabilities in accordance with their respective terms (each of which
          shall be considered an Otis Liability), regardless of when or where such Liabilities arose or arise, or whether the facts on which they are based occurred prior to or subsequent to the Effective Time, regardless of where or against whom such
          Liabilities are asserted or determined (including any such Liabilities arising out of claims made by UTC’s, Carrier’s or Otis’s respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates against any member of
          the UTC Group, the Carrier Group or the Otis Group) or whether asserted or determined prior to the date hereof, and regardless of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud or misrepresentation
          by any member of the UTC Group, the Carrier Group or the Otis Group, or any of their respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates:

         

        (i)         any and all wages, salaries, incentive compensation, equity compensation, commissions, bonuses and any other employee compensation or benefits payable to or on behalf of any Otis
          Group Employees and Former Otis Group Employees after the Effective Time, without regard to when such wages, salaries, incentive compensation, equity compensation, commissions, bonuses or other employee compensation or benefits are or may have
          been awarded or earned;

         

        (ii)        any and all Liabilities whatsoever with respect to claims under an Otis Benefit Plan, taking into account the Otis Benefit Plan’s assumption of Liabilities with respect to Otis Group
          Employees and Former Otis Group Employees, that were originally the Liabilities of the corresponding UTC Benefit Plan with respect to periods prior to the Effective Time;

         

        (iii)        any and all Liabilities arising out of, relating to or resulting from the employment, or termination of employment of all Otis Group Employees and Former Otis Group Employees; and

         

        (iv)        any and all Liabilities expressly assumed or retained by any member of the Otis Group pursuant to this Agreement.

         

        (c)         Acceptance and Assumption of UTC Liabilities.  Except as otherwise provided by this Agreement, on or prior to the Effective Time, but in any
          case prior to the Distribution, UTC and certain members of the UTC Group designated by UTC shall accept, assume and agree to faithfully perform, discharge and fulfill all of the following Liabilities in accordance with their respective terms
          (each of which shall be considered a UTC Liability), regardless of when or where such Liabilities arose or arise, or whether the facts on which they are

         

        
          -12-

          
            

        

        based occurred prior to or subsequent to the Effective Time, regardless of where or against whom such Liabilities are asserted or determined (including any such Liabilities arising out of claims made by UTC’s,
          Carrier’s or Otis’s respective directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates against any member of the UTC Group, the Carrier Group or the Otis Group) or whether asserted or determined prior to the date
          hereof, and regardless of whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud or misrepresentation by any member of the UTC Group, the Carrier Group or the Otis Group, or any of their respective
          directors, officers, Employees, Former Employees, agents, Subsidiaries or Affiliates:

         

        (i)         any and all wages, salaries, incentive compensation, equity compensation, commissions, bonuses and any other employee compensation or benefits payable to or on behalf of any UTC
          Group Employees and Former UTC Group Employees after the Effective Time, without regard to when such wages, salaries, incentive compensation, equity compensation, commissions, bonuses or other employee compensation or benefits are or may have
          been awarded or earned;

         

        (ii)        any and all Liabilities whatsoever with respect to claims under a UTC Benefit Plan, taking into account a corresponding assumption of Liabilities by the Carrier Benefit Plans and
          Otis Benefit Plans with respect to Carrier Group Employees, Otis Group Employees, Former Carrier Group Employees and Former Otis Group Employees, respectively, that were originally the Liabilities of such UTC Benefit Plan with respect to periods
          prior to the Effective Time;

         

        (iii)        any and all Liabilities arising out of, relating to or resulting from the employment, or termination of employment of all UTC Group Employees and Former UTC Group Employees; and

         

        (iv)        any and all Liabilities expressly assumed or retained by any member of the UTC Group pursuant to this Agreement.

         

        (d)        Unaddressed Liabilities.  To the extent that this Agreement does not address particular Liabilities under any Benefit Plan and the Parties
          later determine that they should be allocated in connection with the Distributions, the Parties shall agree in good faith on the allocation, taking into account the handling of comparable Liabilities under this Agreement.

         

        Section 2.02.        Service Credit.

         

        (a)         As of the Effective Time, the Carrier Benefit Plans shall, and Carrier shall cause each member of the Carrier Group to, recognize each Carrier Group Employee’s and each Former Carrier
          Group Employee’s full service with UTC or any of its Subsidiaries or predecessor entities at or before the Effective Time, to the same extent that such service was recognized by UTC for similar purposes prior to the Effective Time as if such full
          service had been performed for a member of the Carrier Group, for purposes of eligibility, vesting and determination of level of benefits under any Carrier Benefit Plans.

         

        In addition, for any Employee who commences employment after the Effective Time with a member of the Carrier Group, each Carrier Benefit Plan intended to be qualified under

         

        
          -13-

          
            

        

        Section 401(a) of the Code shall recognize for each such Employee service during the two (2)-year period immediately following the Effective Time with any member of the Otis Group or the UTC Group for purposes of
          vesting and participation (to the extent such employee is otherwise eligible under such plan and commences employment with a member of the Carrier Group during such two (2)-year period) but not for purposes of benefit accrual under any Carrier
          Benefit Plan.

         

        (b)        As of the Effective Time, the Otis Benefit Plans shall, and Otis shall cause each member of the Otis Group to, recognize each Otis Group Employee’s and each Former Otis Group
          Employee’s full service with UTC or any of its Subsidiaries or predecessor entities at or before the Effective Time, to the same extent that such service was recognized by UTC for similar purposes prior to the Effective Time as if such full
          service had been performed for a member of the Otis Group, for purposes of eligibility, vesting and determination of level of benefits under any such Otis Benefit Plan.

         

        In addition, for any Employee who commences employment after the Effective Time with a member of the Otis Group, each Otis Benefit Plan intended to be qualified under Section 401(a) of the Code
          shall recognize for each such Employee service during the two (2)-year period immediately following the Effective Time with any member of the Carrier Group or the UTC Group for purposes of vesting and participation (to the extent such employee is
          otherwise eligible under such plan and commences employment with a member of the Otis Group during such two (2)-year period) but not for purposes of benefit accrual under any Otis Benefit Plan.

         

        (c)          For any Employee who commences employment after the Effective Time with a member of the UTC Group, each UTC Benefit Plan intended to be qualified under Section 401(a) of the Code
          shall recognize for each such Employee service during the two (2)-year period immediately following the Effective Time with any member of the Carrier Group or the Otis Group for purposes of vesting and participation (to the extent such employee
          is otherwise eligible under such plan and commences employment with a member of the UTC Group during such two (2)-year period) but not for purposes of benefit accrual under any UTC Benefit Plan.

         

        Section 2.03.        Adoption and Transfer and Assumption of Benefit Plans.

         

        (a)         Adoption by Carrier of Benefit Plans.  As of no later than the Effective Time, Carrier shall adopt Benefit Plans (and related trusts, if
          applicable) as contemplated and in accordance with the terms of this Agreement.

         

        (b)       Adoption by Otis of Benefit Plans.  As of no later than the Effective Time, Otis shall adopt Benefit Plans (and related trusts, if applicable)
          as contemplated and in accordance with the terms of this Agreement.

         

        (c)        Retention by Carrier of Carrier Plans.  From and after the Effective Time, Carrier shall retain all of the Carrier Benefits Plans, including
          all related Liabilities and Assets, and any related trusts and other funding vehicles and insurance contracts of any of such plans other than as specifically provided in this Agreement; provided, however, that Carrier may make
          such changes, modifications or amendments to such Carrier Benefit Plans as may be required by applicable Law or to reflect the Separation Agreement, including limiting participation in any such Carrier Benefit Plan to Carrier Group Employees and
          Former Carrier Group Employees who

         

        
          -14-

          
            

        

        participated in the corresponding UTC Benefit Plan immediately prior to the Effective Time.  Nothing in this Agreement shall preclude Carrier, at any time after the Effective Time, from amending, merging,
          modifying, terminating, eliminating, reducing, or otherwise altering in any respect any Carrier Benefit Plan, any benefit under any Carrier Benefit Plan or any trust, insurance policy or funding vehicle related to any Carrier Benefit Plan, or any
          employment or other service arrangement with Carrier Group Employees, independent contractors or vendors (to the extent permitted by Law).

         

        (d)        Retention by Otis of Otis Plans.  From and after the Effective Time, Otis shall retain all of the Otis Benefits Plans, including all related
          Liabilities and Assets, and any related trusts and other funding vehicles and insurance contracts of any of such plans other than as specifically provided in this Agreement; provided, however, that Otis may make such changes,
          modifications or amendments to such Otis Benefit Plans as may be required by applicable Law or to reflect the Separation Agreement, including limiting participation in any such Otis Benefit Plan to Otis Group Employees and Former Otis Group
          Employees who participated in the corresponding UTC Benefit Plan immediately prior to the Effective Time.  Nothing in this Agreement shall preclude Otis, at any time after the Effective Time, from amending, merging, modifying, terminating,
          eliminating, reducing or otherwise altering in any respect any Otis Benefit Plan, any benefit under any Otis Benefit Plan or any trust, insurance policy or funding vehicle related to any Otis Benefit Plan, or any employment or other service
          arrangement with Otis Group Employees, independent contractors or vendors (to the extent permitted by Law).

         

        (e)          Plans Not Required to Be Adopted.  With respect to any Benefit Plan not addressed in this
          Agreement, the Parties shall agree in good faith on the treatment of such plan taking into account the handling of any comparable plan under this Agreement and, notwithstanding that neither Carrier nor Otis shall have an obligation to continue to
          maintain any such plan with respect to the provision of future benefits from and after the Effective Time, Carrier shall remain obligated to pay or provide any previously accrued or incurred benefits to the Carrier Group Employees and Former
          Carrier Group Employees consistent with Section 2.01(a) of this Agreement and Otis shall remain obligated to pay or provide any previously accrued or incurred benefits to the Otis Group Employees and Former Otis Group Employees consistent
          with Section 2.01(b) of this Agreement.

         

        (f)        Information and Operation.  Each Party shall use its commercially reasonable efforts to provide the other Party with information describing
          each Benefit Plan election made by an Employee or Former Employee that may have application to such Party’s Benefit Plans from and after the Effective Time, and each Party shall use its commercially reasonable efforts to administer its Benefit
          Plans using those elections.  Each Party shall, upon reasonable request, use its commercially reasonable efforts to provide the other Party and the other Party’s respective Affiliates, agents, and vendors all information reasonably necessary to
          the other Party’s operation or administration of its Benefit Plans.

         

        (g)         No Duplication or Acceleration of Benefits.  Notwithstanding anything to the contrary in this Agreement, the Separation Agreement or any
          Ancillary Agreement, no participant in any Benefit Plan shall receive service credit or benefits to the extent that receipt of such service credit or benefits would result in duplication of benefits provided to such participant by the
          corresponding Benefit Plan or any other plan, program or arrangement sponsored or

         

        
          -15-

          
            

        

        maintained by a member of the Group that sponsors the corresponding Benefit Plan.  Furthermore, unless expressly provided for in this Agreement, the Separation Agreement, or any Ancillary Agreement, or required by
          applicable Law, no provision in this Agreement shall be construed to create any right to accelerate vesting, distributions, or entitlements under any Benefit Plan sponsored or maintained by a member of the Carrier Group, a member of the Otis
          Group or a member of the UTC Group on the part of any Employee or Former Employee.

         

        (h)        Beneficiaries; Dependents.  References in this Agreement to Carrier Group Employees, Former Carrier Group Employees, Otis Group Employees,
          Former Otis Group Employees, UTC Group Employees, Former UTC Group Employees, Carrier Transferred Directors, Otis Transferred Directors, and UTC Non-Employee Directors shall be deemed to refer to their beneficiaries, dependents, survivors and
          alternate payees, as applicable.

         

        ARTICLE III

        ASSIGNMENT OF EMPLOYEES

         

        Section 3.01.       Active Employees.

         

        (a)         Assignment and Transfer of Employees.  Effective as of no later than the Effective Time and except as otherwise agreed by the Parties, (i)
          UTC shall have taken, or caused the applicable member of the UTC Group to take, such actions as are necessary to ensure that each individual who is intended to be an employee of the Carrier Group as of immediately after the Effective Time
          (including any such individual who is not actively working as of the Effective Time as a result of an illness, injury or leave of absence approved by the UTC Human Resources department or otherwise taken in accordance with applicable Law)
          (collectively, the “Carrier Group Employees”) is employed by a member of the Carrier Group as of immediately after the Effective Time, (ii) UTC shall have taken, or caused the applicable member of the UTC Group to take, such actions as are
          necessary to ensure that each individual who is intended to be an employee of the Otis Group as of immediately after the Effective Time (including any such individual who is not actively working as of the Effective Time as a result of an illness,
          injury or an approved leave of absence or otherwise taken in accordance with applicable Law) (collectively, the “Otis Group Employees”) is employed by a member of the Otis Group as of immediately after the Effective Time, and (iii) UTC
          shall have taken, or caused the applicable member of the UTC Group to take, such actions as are necessary to ensure that (A) each individual who is intended to be an employee of the UTC Group as of immediately after the Effective Time (including
          any such individual who is not actively working as of the Effective Time as a result of an illness, injury or leave of absence approved by the UTC Human Resources department or otherwise taken in accordance with applicable Law) and (B) any other
          individual employed by the UTC Group as of the Effective Time who is not a Carrier Group Employee or Otis Group Employee (collectively, the “UTC Group Employees”) is employed by a member of the UTC Group as of immediately after the
          Effective Time.  Each of the Parties agrees to execute, and to seek to have the applicable Employees execute, such documentation, if any, as may be necessary to reflect such assignment and/or transfer.

         

        (b)         At-Will Status.  Nothing in this Agreement shall create any obligation on the part of any member of the Carrier Group, any member of the Otis
          Group or any member of the UTC Group to (i) continue the employment of any Employee or permit the return from a leave of

         

        
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        absence for any period after the date of this Agreement (except as required by applicable Law) or (ii) change the employment status of any Employee from “at-will,” to the extent that such Employee is an “at-will”
          employee under applicable Law.

         

        (c)         Severance.  The Parties acknowledge and agree that the Separation, the Distributions and the assignment, transfer or continuation of the
          employment of Employees as contemplated by this Section 3.01 shall not be deemed an involuntary termination of employment entitling any Employee to severance payments or severance benefits.

         

        (d)         Not a Change in Control.  The Parties acknowledge and agree that neither the consummation of the
          Separation, the Distributions nor any transaction contemplated by this Agreement, the Separation Agreement or any other Ancillary Agreement shall be deemed a “change in control,” “change of control” or term of similar import for purposes of any
          Benefit Plan sponsored or maintained by any member of the UTC Group, the Carrier Group or the Otis Group.

         

        (e)         Payroll and Related Taxes.  Carrier shall (i) be responsible for all payroll obligations, Tax withholding and reporting obligations, and
          associated government audit assessments; and (ii) furnish a Form W-2 or similar earnings statement, in each case, for all Employees employed by a member of the Carrier Group with respect to the period during which they were employed by a member
          of the Carrier Group before the Distribution Date and for all Carrier Group Employees following the Distribution Date. Otis shall (A) be responsible for all payroll obligations, Tax withholding and reporting obligations, and associated government
          audit assessments; and (B) furnish a Form W-2 or similar earnings statement, in each case, for all Employees employed by a member of the Otis Group with respect to the period during which they were employed by a member of the Otis Group before
          Distribution Date and for all Otis Group Employees following the Distribution Date. UTC shall (i) be responsible for all payroll obligations, Tax withholding and reporting obligations, and associated government audit assessments; and (ii) furnish
          a Form W-2 or similar earnings statement, in each case, for all Employees employed by a member of the UTC Group with respect to the period during which they were employed by a member of the UTC Group before Distribution Date and for all UTC Group
          Employees following the Distribution Date.

         

        Section 3.02.      Individual Agreements.  Effective as of no later than the Distribution Date, Carrier, Otis and UTC, as applicable, shall
          assign, or cause an applicable member of the respective UTC Group, Carrier Group or Otis Group to assign (i) the Carrier Individual Agreements to a member of the Carrier Group and Carrier shall agree or cause an applicable member of the Carrier
          Group to agree to accept and be bound by the provisions of the Carrier Individual Agreements, (ii) the Otis Individual Agreements to a member of the Otis Group and Otis shall agree or cause an applicable member of the Otis Group to agree to
          accept and be bound by the provisions of the Otis Individual Agreements, and (iii) the UTC Individual Agreements to a member of the UTC Group and UTC shall agree or cause an applicable member of the UTC Group to accept and be bound by the
          provisions of the UTC Individual Agreements; provided, however, that to the extent that assignment of any such agreement is not permitted by the terms of such agreement or by applicable Law, effective as of the Distribution Date,
          each member of the Carrier Group (in the case of each Carrier Individual Agreement), Otis Group (in the case of each Otis Individual Agreement) or the UTC Group (in the case of each UTC Individual Agreement) shall be considered to be a successor
          to each member of the Carrier Group, Otis Group or UTC

         

        
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        Group, as applicable, for purposes of, and a third-party beneficiary with respect to, such agreement, such that each member of the Carrier Group, Otis Group or UTC Group, as applicable, shall enjoy all of the
          rights and benefits under such agreement (including rights and benefits as a third-party beneficiary) as well as assume the potential associated liabilities, with respect to the business operations of the Carrier Group, Otis Group or UTC Group,
          as applicable; provided, further, that in no event shall any Party be permitted to enforce (A) any Carrier Individual Agreement (including any agreement containing non-competition or non-solicitation covenants) against a Carrier
          Group Employee for action taken in such individual’s capacity as a Carrier Group Employee other than on behalf of the Carrier Group as requested by the Carrier Group in its capacity as a third-party beneficiary, (B) any Otis Individual Agreement
          (including any agreement containing non-competition or non-solicitation covenants) against an Otis Group Employee for action taken in such individual’s capacity as an Otis Group Employee other than on behalf of the Otis Group as requested by the
          Otis Group in its capacity as a third-party beneficiary and (C) any UTC Individual Agreement (including any agreement containing non-competition or non-solicitation covenants) against a UTC Employee for action taken in such individual’s capacity
          as a UTC Group Employee other than on behalf of the UTC Group as requested by the UTC Group in its capacity as a third-party beneficiary; provided, further, that with respect to any Carrier Group Employee, Former Carrier Group
          Employee, Otis Group Employee or Former Otis Group Employee who was employed by a member of the UTC Group within twelve (12) months prior to the Effective Time, UTC shall retain the right to enforce, and shall be a third-party beneficiary with
          respect to, any non-competition covenant as applied to the business of the UTC Group contained in any Carrier Individual Agreement or Otis Individual Agreement against such Carrier Group Employee or Otis Group Employee for a period of twelve (12)
          months after the Effective Time.

         

        Section 3.03.      Consultation with Labor Representatives; Labor Agreements.  The Parties shall cooperate to notify, inform and/or consult with any
          labor union, works council or other labor representative regarding the Separation and Distributions to the extent required by Law or a Labor Agreement.  No later than as of immediately before the Effective Time, Carrier shall have taken, or
          caused another member of the Carrier Group to take, all actions that are necessary (if any) for Carrier or another member of the Carrier Group to (a) assume any Labor Agreements in effect with respect to Carrier Group Employees and Former Carrier
          Group Employees (excluding obligations thereunder with respect to any Otis Group Employees, Former Otis Group Employees, UTC Group Employees or Former UTC Group Employees, to the extent applicable) and (b) unless otherwise provided in this
          Agreement, assume and honor any obligations of the UTC Group or Otis Group under any Labor Agreements as such obligations relate to Carrier Group Employees and Former Carrier Group Employees.  No later than as of immediately before the Effective
          Time, Otis shall have taken, or caused another member of the Otis Group to take, all actions that are necessary (if any) for Otis or another member of the Otis Group to (a) assume any Labor Agreements in effect with respect to Otis Group
          Employees and Former Otis Group Employees (excluding obligations thereunder with respect to any Carrier Group Employees, Former Carrier Group Employees, UTC Group Employees or Former UTC Group Employees, to the extent applicable) and (b) unless
          otherwise provided in this Agreement, assume and honor any obligations of the UTC Group or Carrier Group under any Labor Agreements as such obligations relate to Otis Group Employees and Former Otis Group Employees.  No later than as of
          immediately before the Effective Time, UTC shall have taken, or caused another member of the UTC Group to take, all actions that are necessary (if any) for UTC or another member of the UTC

         

        
          -18-

          
            

        

        Group to (a) assume any Labor Agreements in effect with respect to UTC Employees and Former UTC Employees (excluding obligations thereunder with respect to any Carrier Group Employees, Former Carrier Group
          Employees, Otis Group Employees or Former Otis Group Employees, to the extent applicable) and (b) assume and honor any obligations of the Carrier Group or Otis Group under any Labor Agreements as such obligations relate to UTC Group Employees and
          Former UTC Group Employees.

         

        Section 3.04.        Non-Solicitation.

         

        (a)         Non-Solicitation.  Each Party agrees that, for a period of eighteen (18) months from the Effective Time, such Party shall, and shall cause
          each member in its Group, to not solicit for employment any individual who is an employee of a member of the other Groups at the level of P6/M6, P7/M7, E1, E2, E3, E4, or E5 as of immediately prior to the Effective Time (“Restricted Employees”);

          provided that the foregoing restrictions shall not apply to:  (i) any Restricted Employee who responds to general solicitations not targeted at the Restricted Employees, (ii) any Restricted Employee who terminates employment at least six
          (6) months prior to the applicable solicitation, (iii) the solicitation of a Restricted Employee whose employment was involuntarily terminated by the employing Party in a severance qualifying termination before the employment discussions with the
          soliciting Party commenced, and (iv) any Restricted Employee whose prospective employment is agreed to in writing by the soliciting Party and the employing Party, or in the case of a Restricted Employee who is not currently employed, the Party
          who last employed Restricted Employee.

         

        (b)         Remedies; Enforcement.  Each Party acknowledges and agrees that (i) injury to the employing Party from any breach by another Party of the
          obligations set forth in this Section 3.04 would be irreparable and impossible to measure and (ii) the remedies at Law for any breach or threatened breach of this Section 3.04, including monetary damages, would therefore be
          inadequate compensation for any loss and the employing Party shall have the right to specific performance and injunctive or other equitable relief in accordance with this Section 3.04, in addition to any and all other rights and remedies
          at Law or in equity, and all such rights and remedies shall be cumulative.  Each Party understands and acknowledges that the restrictive covenants and other agreements contained in this Section 3.04 are an essential part of this Agreement
          and the transactions contemplated hereby.  It is the intent of the Parties that the provisions of this Section 3.04 shall be enforced to the fullest extent permissible under applicable Law applied in each jurisdiction in which enforcement
          is sought.  If any particular provision or portion of this Section 3.04 shall be adjudicated to be invalid or unenforceable, such provision or portion thereof shall be deemed amended to the minimum extent necessary to render such
          provision or portion valid and enforceable, such amendment to apply only with respect to the operation of such provision or portion thereof in the particular jurisdiction in which such adjudication is made.

         

        ARTICLE IV

        EQUITY, INCENTIVE AND EXECUTIVE COMPENSATION

         

        Section 4.01.        General Rules and Adoption of Equity Plans.

         

        (a)         Treatment of Equity Awards.  Each UTC Award that is outstanding as of immediately prior to the Effective Time shall be treated as
          described below in this Article IV;

         

        
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        provided, however, that, prior to the Effective Time, the UTC Compensation Committee (i) may provide for different treatment with respect to some or all of the UTC Awards held by Employees located
          outside of the United States to the extent that the UTC Compensation Committee deems such treatment necessary or appropriate, including to avoid adverse tax consequences to such Employees, and (ii) shall, if the Carrier Distribution and the Otis
          Distribution do not occur on the same day, appropriately modify the adjustment methodology described below in a manner that is intended to achieve the same adjustment results taking into account the timing of the Carrier Distribution and the Otis
          Distribution.  Any such adjustments made by the UTC Compensation Committee pursuant to the foregoing sentence shall be deemed incorporated by reference herein as if fully set forth below and shall be binding on the Parties and their respective
          Affiliates.  Effective as of no later than immediately prior to the Effective Time, Carrier shall establish the Carrier LTIP and Carrier DSU Plan and Otis shall establish the Otis LTIP and the Otis DSU Plan, which plans shall have substantially
          the same terms as those of the UTC LTIP and the UTC DSU Plan, respectively, as of immediately prior to the Effective Time.  Carrier may make such changes, modifications or amendments to the Carrier LTIP and the Carrier DSU Plan and Otis may make
          such changes, modifications or amendments to the Otis LTIP and the Otis DSU Plan, in each case, as may be required by applicable Law or as are necessary and appropriate to reflect the Separation or to permit the implementation of the provisions
          of Article IV or Section 6.02.

         

        (b)          Assumption of DSU Plan Liabilities.  As of the Effective Time, Carrier shall, and shall cause the Carrier DSU Plan, and Otis shall, and shall
          cause the Otis DSU Plan, to assume all Liabilities under the UTC DSU Plan for the benefits of Carrier Transferred Directors and Otis Transferred Directors who are not otherwise UTC Non-Employee Directors, respectively, determined as of
          immediately prior to the Effective Time, and the UTC Group and the UTC DSU Plan shall be relieved of all Liabilities for those benefits.  UTC shall, or shall cause a member of the UTC Group to, assume and retain all Liabilities under the UTC DSU
          Plan for the benefits of UTC Non-Employee Directors but not with respect to the benefits of any director who ceases as of the Effective Time to be a director of UTC and becomes a Carrier Transferred Director or Otis Transferred Director.  On and
          after the Effective Time, Carrier Transferred Directors and Otis Transferred Directors who are not otherwise UTC Non-Employee Directors shall cease to be participants in the UTC DSU Plan.

         

        Section 4.02.        Equity Incentive Awards.

         

        (a)          Vested Option Awards.  Each UTC Option Award that is outstanding and vested as of immediately prior to the Effective Time shall be converted,
          as of the Effective Time, into a Post-Separation UTC Option Award, a Carrier Option Award and an Otis Option Award and shall, except as otherwise provided in this Section 4.02(a), be subject to the same terms and conditions after the
          Effective Time as were applicable to such UTC Option Award immediately prior to the Effective Time; provided, however, that from and after the Effective Time:

         

        (i)          the number of UTC Shares subject to such Post-Separation UTC Option Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying
          (A) the number of UTC Shares subject to the corresponding UTC Option Award immediately prior to the Effective Time by (B) the UTC Value Factor;

         

        
          -20-

          
            

        

        (ii)        the number of Carrier Shares subject to such Carrier Option Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (A) the
          number of UTC Shares subject to the corresponding UTC Option Award immediately prior to the Effective Time by (B) the Carrier Value Factor;

         

        (iii)       the number of Otis Shares subject to such Otis Option Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (A) the number
          of UTC Shares subject to the corresponding UTC Option Award immediately prior to the Effective Time by (B) the Otis Value Factor;

         

        (iv)       the per share exercise price of such Post-Separation UTC Option Award shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (A) the per share
          exercise price of the corresponding UTC Option Award immediately prior to the Effective Time by (B) the UTC Adjustment Ratio;

         

        (v)        the per share exercise price of such Carrier Option Award shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (A) the per share exercise price
          of the corresponding UTC Option Award immediately prior to the Effective Time by (B) the Carrier Adjustment Ratio; and

         

        (vi)        the per share exercise price of such Otis Option Award shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (A) the per share exercise price of
          the corresponding UTC Option Award immediately prior to the Effective Time by (B) the Otis Adjustment Ratio.

         

        Following the Effective Time, (A) the exercise period for a Post-Separation UTC Option held by an Carrier Group Employee or Otis Group Employee shall be the ten (10)-year period commencing on the
          original grant date, regardless of termination from post-separation employer, (B) the exercise period for an Carrier Option held by a UTC Group Employee or Otis Group Employee, shall be the ten (10)-year period commencing on the original grant
          date, regardless of termination from post-separation employer and (C) the exercise period for a Carrier Option held by an Otis Group Employee or UTC Group Employee shall be the ten (10)-year period commencing on the original grant date,
          regardless of termination from post-separation employer.

         

        Notwithstanding anything to the contrary in this Section 4.02(a), the exercise price of, and the number of UTC Shares, Carrier Shares, and Otis Shares subject to, each Post-Separation UTC
          Option Award, Carrier Option Award, and Otis Option Award, respectively, and the terms and conditions of exercise of such options shall be determined in a manner consistent with the requirements of Section 409A of the Code, as applicable.

         

        (b)        Unvested Option Awards.  Each UTC Option Award that is outstanding and unvested as of immediately prior to the Effective Time (including any
          UTC Option Award that vests on or after the Distribution Date) shall be treated as follows:

         

        (i)        if the holder of such award is a UTC Group Employee, such award shall be converted, as of the Effective Time, into a Post-Separation UTC Option Award and shall, except as otherwise
          provided in this Section 4.02(b), be subject to the same terms and conditions after the Effective Time as were applicable to such UTC Option Award prior to the Effective Time;

         

        
          -21-

          
            

        

        provided, however, that (A) the number of UTC Shares underlying such Post-Separation UTC Option Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by
          multiplying (1) the number of UTC Shares subject to the corresponding UTC Option Award immediately prior to the Effective Time by (2) the UTC Adjustment Ratio, and (B) the per share exercise price of such Post-Separation UTC Option Award shall be
          equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (1) the per share exercise price of the corresponding UTC Option Award immediately prior to the Effective Time by (2) the UTC Adjustment Ratio;

         

        (ii)        if the holder of such award is a Carrier Group Employee, such award shall be converted, as of the Effective Time, into a Carrier Option Award and shall, except as otherwise provided
          in this Section 4.02(b), be subject to the same terms and conditions after the Effective Time as were applicable to such UTC Option Award prior to the Effective Time; provided, however, that (A) the number of Carrier
          Shares underlying such Carrier Option Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (1) the number of UTC Shares subject to the corresponding UTC Option Award immediately prior to
          the Effective Time by (2) the Carrier Adjustment Ratio, and (B) the per share exercise price of such Carrier Option Award shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (1) the per share exercise price
          of the corresponding UTC Option Award immediately prior to the Effective Time by (2) the Carrier Adjustment Ratio; and

         

        (iii)        if the holder of such award is an Otis Group Employee, such award shall be converted, as of the Effective Time, into an Otis Option Award and shall, except as otherwise provided in
          this Section 4.02(b), be subject to the same terms and conditions after the Effective Time as were applicable to such UTC Option Award prior to the Effective Time; provided, however, that (A) the number of Otis Shares
          underlying such Otis Option Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (1) the number of UTC Shares subject to the corresponding UTC Option Award immediately prior to the
          Effective Time by (2) the Otis Adjustment Ratio, and (B) the per share exercise price of such Otis Option Award shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (1) the per share exercise price of the
          corresponding UTC Option Award immediately prior to the Effective Time by (2) the Otis Adjustment Ratio.

         

        Notwithstanding anything to the contrary in this Section 4.02(b), the exercise price of, and the number of UTC Shares, Carrier Shares, and Otis Shares subject to, each Post-Separation UTC
          Option Award, Carrier Option Award, and Otis Option Award, respectively, and the terms and conditions of exercise of such options shall be determined in a manner consistent with the requirements of Section 409A of the Code, as applicable.

         

        (c)        Vested SAR Awards.  Each UTC SAR Award that is outstanding and vested as of immediately prior to the Effective Time shall be converted, as of
          the Effective Time, into a Post-Separation UTC SAR Award, a Carrier SAR Award and an Otis SAR Award and shall, except as otherwise provided in this Section 4.02(c), be subject to the same terms and conditions after the Effective Time as
          were applicable to such UTC SAR Award immediately prior to the Effective Time; provided, however, that from and after the Effective Time:

         

        
          -22-

          
            

        

        (i)          the number of UTC Shares subject to such Post-Separation UTC SAR Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (A)
          the number of UTC Shares subject to the corresponding UTC SAR Award immediately prior to the Effective Time by (B) the UTC Value Factor;

         

        (ii)         the number of Carrier Shares subject to such Carrier SAR Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (A) the
          number of UTC Shares subject to the corresponding UTC SAR Award immediately prior to the Effective Time by (B) the Carrier Value Factor;

         

        (iii)        the number of Otis Shares subject to such Otis SAR Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (A) the number of
          UTC Shares subject to the corresponding UTC SAR Award immediately prior to the Effective Time by (B) the Otis Value Factor;

         

        (iv)       the per share exercise price of such Post-Separation UTC SAR Award shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (A) the per share
          exercise price of the corresponding UTC SAR Award immediately prior to the Effective Time by (B) the UTC Adjustment Ratio;

         

        (v)         the per share exercise price of such Carrier SAR Award shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (A) the per share exercise price of
          the corresponding UTC SAR Award immediately prior to the Effective Time by (B) the Carrier Adjustment Ratio; and

         

        (vi)       the per share exercise price of such Otis SAR Award shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (A) the per share exercise price of the
          corresponding UTC SAR Award immediately prior to the Effective Time by (B) the Otis Adjustment Ratio.

         

        Following the Effective Time, (A) the exercise period for a Post-Separation UTC SAR held by an Otis Group Employee, or Carrier Group Employee shall be the ten (10)-year period commencing on the
          original grant date, regardless of termination from post-separation employer, (B) the exercise period for an Otis SAR held by a UTC Group Employee, or Carrier Group Employee shall be the ten (10)-year period commencing on the original grant date,
          regardless of termination from post-separation employer, and (C) the exercise period for a Carrier SAR held by an Otis Group Employee, or UTC Group Employee shall be the ten (10)-year period commencing on the original grant date, regardless of
          termination from post-separation employer.

         

        Notwithstanding anything to the contrary in this Section 4.02(c), the exercise price of, and the number of UTC Shares, Carrier Shares, and Otis Shares subject to, each Post-Separation UTC
          SAR Award, Carrier SAR Award, and Otis SAR Award, respectively, and the terms and conditions of exercise of such SARs shall be determined in a manner consistent with the requirements of Section 409A of the Code, as applicable.

         

        (d)       Unvested SAR Awards.  Each UTC SAR Award that is outstanding and unvested as of immediately prior to the Effective Time (including any UTC SAR
          Award that vests on or after the Distribution Date) shall be treated as follows:

         

        
          -23-

          
            

        

        (i)        if the holder of such award is a UTC Group Employee, such award shall be converted, as of the Effective Time, into a Post-Separation UTC SAR Award and shall, except as otherwise
          provided in this Section 4.02(d), be subject to the same terms and conditions after the Effective Time as were applicable to such UTC SAR Award prior to the Effective Time; provided, however, that (A) the number of UTC
          Shares underlying such Post-Separation UTC SAR Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (1) the number of UTC Shares subject to the corresponding UTC SAR Award immediately
          prior to the Effective Time by (2) the UTC Adjustment Ratio, and (B) the per share exercise price of such Post-Separation UTC SAR Award shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (1) the per share
          exercise price of the corresponding UTC SAR Award immediately prior to the Effective Time by (2) the UTC Adjustment Ratio;

         

        (ii)        if the holder of such award is a Carrier Group Employee, such award shall be converted, as of the Effective Time, into a Carrier SAR Award and shall, except as otherwise provided in
          this Section 4.02(d), be subject to the same terms and conditions after the Effective Time as were applicable to such UTC SAR Award prior to the Effective Time; provided, however, that (A) the number of Carrier Shares
          underlying such Carrier SAR Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (1) the number of UTC Shares subject to the corresponding UTC SAR Award immediately prior to the
          Effective Time by (2) the Carrier Adjustment Ratio, and (B) the per share exercise price of such Carrier SAR Award shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (1) the per share exercise price of the
          corresponding UTC SAR Award immediately prior to the Effective Time by (2) the Carrier Adjustment Ratio; and

         

        (iii)        if the holder of such award is an Otis Group Employee, such award shall be converted, as of the Effective Time, into an Otis SAR Award and shall, except as otherwise provided in
          this Section 4.02(d), be subject to the same terms and conditions after the Effective Time as were applicable to such UTC SAR Award prior to the Effective Time; provided, however, that (A) the number of Otis Shares
          underlying such Otis SAR Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (1) the number of UTC Shares subject to the corresponding UTC SAR Award immediately prior to the Effective
          Time by (2) the Otis Adjustment Ratio, and (B) the per share exercise price of such Otis SAR Award shall be equal to the quotient, rounded up to the nearest whole cent, obtained by dividing (1) the per share exercise price of the corresponding
          UTC SAR Award immediately prior to the Effective Time by (2) the Otis Adjustment Ratio.

         

        Notwithstanding anything to the contrary in this Section 4.02(d), the exercise price of, and the number of UTC Shares, Carrier Shares, and Otis Shares subject to, each Post-Separation UTC
          SAR Award, Carrier SAR Award, and Otis SAR Award, respectively, and the terms and conditions of exercise of such SARs shall be determined in a manner consistent with the requirements of Section 409A of the Code, as applicable.

         

        (e)         RSU Awards.  Each UTC RSU Award that is outstanding and unvested as of immediately prior to the Effective Time (including any UTC RSU Awards
          that vest on or after the Distribution Date) shall be treated as follows:

         

        
          -24-

          
            

        

        (i)          if the holder of such award is a UTC Group Employee or a Former UTC Group Employee, such award shall be converted, as of the Effective Time, into a Post-Separation UTC RSU Award and
          shall, except as otherwise provided in this Section 4.02(e), be subject to the same terms and conditions after the Effective Time as were applicable to such UTC RSU Award prior to the Effective Time; provided, however,
          that the number of UTC Shares underlying such Post-Separation UTC RSU Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (A) the number of UTC Shares subject to the corresponding UTC
          RSU Award immediately prior to the Effective Time by (B) the UTC Adjustment Ratio;

         

        (ii)       if the holder of such award is a Carrier Group Employee or a Former Carrier Group Employee, such award shall be converted, as of the Effective Time, into a Carrier RSU Award and
          shall, except as otherwise provided in this Section 4.02(e), be subject to the same terms and conditions after the Effective Time as were applicable to such UTC RSU Award prior to the Effective Time; provided, however,
          that the number of Carrier Shares underlying such Carrier RSU Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (A) the number of UTC Shares subject to the corresponding UTC RSU Award
          immediately prior to the Effective Time by (B) the Carrier Adjustment Ratio; and

         

        (iii)        if the holder of such award is an Otis Group Employee or a Former Otis Group Employee, such award shall be converted, as of the Effective Time, into an Otis RSU Award and shall,
          except as otherwise provided in this Section 4.02(e), be subject to the same terms and conditions after the Effective Time as were applicable to such UTC RSU Award prior to the Effective Time; provided, however, that the
          number of Otis Shares underlying such Otis RSU Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (A) the number of UTC Shares subject to the corresponding UTC RSU Award immediately
          prior to the Effective Time by (B) the Otis Adjustment Ratio.

         

        (f)        PSU Awards.  Each UTC PSU Award that is outstanding and deferred under the PSU Deferral Plan as of immediately prior to the Effective Time
          shall be treated as described in Section 6.02.  Each other UTC PSU Award that is outstanding as of immediately prior to the Effective Time shall be treated as follows:

         

        (i)          if the holder of such award is a UTC Group Employee or a Former UTC Group Employee, such award shall be converted, as of the Effective Time, into a Post-Separation UTC PSU Award and
          shall, except as otherwise provided in this Section 4.02(f), be subject to the same terms and conditions after the Effective Time as were applicable to such UTC PSU Award prior to the Effective Time; provided, however,
          that (A) prior to the Effective Time, the UTC Compensation Committee shall determine the number of UTC Shares earned under such award based on its determination as to the level of achievement of performance objectives and (B) as of the Effective
          Time, the number of UTC Shares underlying such UTC PSU Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (1) the number of UTC Shares subject to the corresponding UTC PSU Award
          immediately prior to the Effective Time (as determined by the UTC Compensation Committee pursuant to clause (A) hereof) and (2) the UTC Adjustment Ratio;

         

        
          -25-

          
            

        

        (ii)        if the holder of such award is a Carrier Group Employee or a Former Carrier Group Employee, such award shall be converted, as of the Effective Time, into a Carrier PSU Award and
          shall, except as otherwise provided in this Section 4.02(f), be subject to the same terms and conditions after the Effective Time as were applicable to such UTC PSU Award prior to the Effective Time; provided, however,
          that (A) if the performance goals applicable to such UTC PSU Award relate to the performance of UTC, prior to the Effective Time, the UTC Compensation Committee shall determine the number UTC Shares earned under such award based on its
          determination as to the level of achievement of performance objectives and (B) the number of Carrier Shares underlying such Carrier PSU Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by
          multiplying (1) the number of UTC Shares subject to the corresponding UTC PSU Award immediately prior to the Effective Time (as determined by the UTC Compensation Committee pursuant to clause (A) hereof, if applicable) by (2) the Carrier
          Adjustment Ratio; and

         

        (iii)        if the holder of such award is an Otis Group Employee or a Former Otis Group Employee, such award shall be converted, as of the Effective Time, into an Otis PSU Award and shall,
          except as otherwise provided in this Section 4.02(f), be subject to the same terms and conditions after the Effective Time as were applicable to such UTC PSU Award prior to the Effective Time; provided, however, that (A)
          if the performance goals applicable to such UTC PSU Award relate to the performance of UTC, prior to the Effective Time, the UTC Compensation Committee shall determine the number UTC Shares earned under such award based on its determination as to
          the level of achievement of performance objectives and (B) the number of Otis Shares underlying such Otis PSU Award shall be equal to the product, rounded down to the nearest whole number of shares, obtained by multiplying (1) the number of UTC
          Shares subject to the corresponding UTC PSU Award immediately prior to the Effective Time (as determined by the UTC Compensation Committee pursuant to clause (A) hereof, if applicable) by (2) the Otis Adjustment Ratio.

         

        Following the Effective Time, the Post-Separation UTC PSU Awards, the Carrier PSU Awards for which the applicable performance goals related to UTC performance prior to the Effective Time, and the
          Otis PSU Awards for which the applicable performance goals related to UTC performance prior to the Effective Time, shall be time-vesting awards for the number of shares determined under Section 4.02(f)(i), Section 4.02(f)(ii), or
          Section 4.02(f)(iii), as applicable, that vest based on the otherwise applicable vesting schedule without regard to the achievement of the performance objectives at the end of the otherwise applicable performance measurement period.

         

        (g)          DSU Awards.

         

        (i)          Vested DSU Awards (Basket).  Each UTC DSU Award that is outstanding and vested as of immediately prior to the Effective Time shall be
          converted, as of the Effective Time, into a Post-Separation UTC DSU Award, a Carrier DSU Award and an Otis DSU Award and each award shall, except as otherwise provided in this Section 4.02(g), be subject to the same terms and conditions
          after the Effective Time as were applicable to such UTC DSU Award prior to the Effective Time; provided, however, that from and after the Effective Time (i) the number of UTC Shares subject to the Post-Separation UTC DSU Award
          shall be equal to the number of UTC Shares subject to the corresponding UTC DSU Award immediately prior to the

         

        
          -26-

          
            

        

        Effective Time, (ii) the number of Carrier Shares subject to the Carrier DSU Award shall be equal to the product, rounded to three decimal places, obtained by multiplying (A) the number of UTC Shares subject to the
          UTC DSU Award immediately prior to the Effective Time by (B) the Carrier Distribution Ratio, and (iii) the number of Otis Shares subject to the Otis DSU Award shall be equal to the product, rounded to three decimal places, obtained by multiplying
          (A) the number of UTC Shares subject to the UTC DSU Award immediately prior to the Effective Time by (B) the Otis Distribution Ratio.

         

        (ii)        Unvested DSU Awards (Concentrated).  Each UTC DSU Award that is outstanding and unvested as of immediately prior to the Effective Time shall
          be treated as follows:

         

        (A)        if the holder of such award is a UTC Non-Employee Director who will continue to serve on the UTC Board immediately following the Effective Time (regardless of whether such individual
          is an Otis Transferred Director or Carrier Transferred Director immediately following the Effective Time) or is a former UTC Non-Employee Director who immediately following the Effective Time does not become an Otis Transferred Director or
          Carrier Transferred Director, such award shall be converted, as of the Effective Time, into a Post-Separation UTC DSU Award and shall, except as otherwise provided in this Section 4.02(g), be subject to the same terms and conditions after
          the Effective Time as were applicable to such UTC DSU Award prior to the Effective Time; provided, however, that the number of UTC Shares underlying such Post-Separation UTC DSU Award shall be equal to the product, rounded to
          three decimal places, obtained by multiplying (A) the number of UTC Shares subject to the corresponding UTC DSU Award immediately prior to the Effective Time by (B) the UTC Adjustment Ratio;

         

        (B)          if the holder of such award is a UTC Non-Employee Director who will become a Carrier Transferred Director (and not continue as a UTC Non-Employee Director) immediately following the
          Effective Time, such award shall be converted, as of the Effective Time, into a Carrier DSU Award and shall, except as otherwise provided in this Section 4.02(g), be subject to the same terms and conditions after the Effective Time as
          were applicable to such UTC DSU Award prior to the Effective Time; provided, however, that the number of Carrier Shares underlying such Carrier DSU Award shall be equal to the product, rounded to three decimal places, obtained by
          multiplying (A) the number of UTC Shares subject to the corresponding UTC DSU Award immediately prior to the Effective Time by (B) the Carrier Adjustment Ratio; and

         

        (C)          if the holder of such award is a UTC Non-Employee Director who will become an Otis Transferred Director (and not continue as a UTC Non-Employee Director) immediately following the
          Effective Time, such award shall be converted, as of the Effective Time, into an Otis DSU Award and shall, except as otherwise provided in this Section 4.02(g), be subject to the same terms and conditions after the Effective Time as were
          applicable to such UTC DSU Award prior to the Effective Time; provided, however, that the number of Otis Shares underlying such Otis DSU Award shall be equal to the product, rounded to three decimal places, obtained by multiplying
          (A) the number of UTC Shares subject to the corresponding UTC DSU Award immediately prior to the Effective Time by (B) the Otis Adjustment Ratio.

         

        
          -27-

          
            

        

        Following the Effective Time, (1) the UTC DSU Plan shall provide that each UTC Non-Employee Director who continues to serve on the UTC Board immediately following the Effective Time (regardless
          of whether such individual is also an Otis Transferred Director or a Carrier Transferred Director) and each former UTC Non-Employee Director who does not become an Otis Transferred Director or Carrier Transferred Director immediately following
          the Effective Time shall remain a participant in the UTC DSU Plan with respect to such individual’s UTC Post-Separation DSU Awards, Carrier DSU Awards and Otis DSU Awards; provided that, upon settlement of the Carrier DSU Awards and Otis
          DSU Awards, such awards shall be paid in cash by UTC, (2) the Carrier DSU Plan shall provide that each UTC Non-Employee Director who will become a Carrier Transferred Director (and not also a UTC Non-Employee Director) immediately following the
          Effective Time shall become a participant in the Carrier DSU Plan with respect to such individual’s UTC Post-Separation DSU Awards, Carrier DSU Awards and Otis DSU Awards; provided that, upon settlement of the Post-Separation UTC DSU
          Awards and Otis DSU Awards, such awards shall be paid in cash by Carrier, and (3) the Otis DSU Plan shall provide that each UTC Non-Employee Director who will become an Otis Transferred Director (and not also a UTC Non-Employee Director)
          immediately following the Effective Time shall become a participant in the Otis DSU Plan with respect to such individual’s UTC Post-Separation DSU Awards, Carrier DSU Awards and Otis DSU Awards; provided that, upon settlement of the
          Post-Separation UTC DSU Awards and Carrier DSU Awards, such awards shall be paid in cash by Otis.

         

        (iii)        Separation of Service.  For the avoidance of doubt, the adjustments made to UTC DSU Awards, including the adjustment of such awards into
          Carrier DSU Awards or Otis DSU Awards shall not result in a separation of service entitling a participant under the UTC DSU Plan, Carrier DSU Plan or Otis DSU Plan to a distribution.

         

        (h)          Miscellaneous Award Terms.  None of the Separation, the Distributions or any employment transfer described in Section 3.01(a) shall
          constitute a termination of employment for any Employee or non-employee director for purposes of any Post-Separation UTC Award, Carrier Award, or any Otis Award.  Further, a non-employee director transfer, as detailed in Section 4.02(g),
          shall not constitute a separation from service for any non-employee director for purposes of any DSU Awards.

         

        (i)          Settlement; Tax Withholding and Reporting.

         

        (i)       Settlement.  Except as otherwise provided in Section 4.02(g), after the Effective Time, Post-Separation UTC Awards, regardless of
          by whom held, shall be settled by UTC; Carrier Awards, regardless of by whom held, shall be settled by Carrier; and Otis Awards, regardless of by whom held, shall be settled by Otis.

         

        (ii)         Withholding.

         

        (A)         Upon the vesting, payment or settlement, as applicable, of Carrier Awards, Carrier shall be solely responsible for ensuring the satisfaction of
          all applicable Tax withholding requirements on behalf of each Carrier Group Employee or Former Carrier Group Employee and for ensuring the collection and transfer of applicable employee withholding Taxes by the Carrier stock plan administrator
          (1) to UTC or a member of the UTC Group designated by UTC with respect to each UTC Group Employee or Former UTC Group Employee (with UTC or

         

        
          -28-

          
            

        

        the designated member of the UTC Group being responsible for remittance of the applicable employee Taxes and payment and remittance of the applicable employer Taxes relating to UTC Group Employees and Former UTC
          Group Employees to the applicable Governmental Authority) and (2) to Otis or a member of the Otis Group designated by Otis with respect to each Otis Group Employee or Former Otis Group Employee (with Otis or the designated member of the Otis
          Group being responsible for remittance of the applicable employee Taxes and payment and remittance of the applicable employer Taxes relating to Otis Group Employees and Former Otis Group Employees to the applicable Governmental Authority).

         

        (B)        Upon the vesting, payment or settlement, as applicable, of Otis Awards, Otis shall be solely responsible for ensuring the satisfaction of all
          applicable Tax withholding requirements on behalf of each Otis Group Employee or Former Otis Group Employee and for ensuring the collection and transfer of applicable employee withholding Taxes by the Otis stock plan administrator (1) to UTC or a
          member of the UTC Group designated by UTC with respect to each UTC Group Employee or Former UTC Group Employee (with UTC or the designated member of the UTC Group being responsible for remittance of the applicable employee Taxes and payment and
          remittance of the applicable employer Taxes relating to UTC Group Employees and Former UTC Group Employees to the applicable Governmental Authority) and (2) to Carrier or a member of the Carrier Group designated by Carrier with respect to each
          Carrier Group Employee or Former Carrier Group Employee (with Carrier or the designated member of the Carrier Group being responsible for remittance of the applicable employee Taxes and payment and remittance of the applicable employer Taxes
          relating to Carrier Group Employees and Former Carrier Group Employees to the applicable Governmental Authority).

         

        (C)        Upon the vesting, payment or settlement, as applicable, of Post-Separation UTC Awards, UTC shall be solely responsible for ensuring the
          satisfaction of all applicable Tax withholding requirements on behalf of each UTC Group Employee or Former UTC Group Employee and for ensuring the collection and transfer of applicable employee withholding Taxes by the UTC stock plan
          administrator (1) to Carrier or a member of the Carrier Group designated by Carrier with respect to each Carrier Group Employee or Former Carrier Group Employee (with Carrier or the designated member of the Carrier Group being responsible for
          remittance of the applicable employee Taxes and payment and remittance of the applicable employer Taxes relating to Carrier Group Employees and Former Carrier Group Employees to the applicable Governmental Authority) and (2) to Otis or a member
          of the Otis Group designated by Otis with respect to each Otis Group Employee or Former Otis Group Employee (with Otis or the designated member of the Otis Group being responsible for remittance of the applicable employee Taxes and payment and
          remittance of the applicable employer Taxes relating to Otis Group Employees and Former Otis Group Employees to the applicable Governmental Authority).

         

        (iii)     Reporting.  Following the Effective Time, (A) UTC shall be responsible for all income Tax reporting in respect of Post-Separation UTC
          Awards, Carrier Awards and Otis Awards held by UTC Group Employees, Former UTC Group Employees, UTC Non-Employee Directors who will continue to serve on the UTC Board immediately following the Effective Time (regardless of whether such
          individuals are Otis Transferred Directors or Carrier Transferred Directors immediately following the Effective Time), and each former UTC Non-Employee Director who does not become an Otis Transferred Director or Carrier Transferred Director
          immediately following the Effective Time, (B) Otis shall be responsible for all income

         

        
          -29-

          
            

        

        Tax reporting in respect of Post-Separation UTC Awards, Carrier Awards and Otis Awards held by Otis Group Employees, Former Otis Group Employees, and Transferred Otis Directors, and (C) Carrier shall be responsible
          for all income Tax reporting in respect of Post-Separation UTC Awards, Carrier Awards and Otis Awards held by Carrier Group Employees and Former Carrier Group Employees, and Transferred Carrier Directors.

         

        (iv)      Forfeitures.  Following the Effective Time, if any Post-Separation UTC Award shall fail to become vested or fail to be exercised prior to
          the applicable expiration date, such Post-Separation UTC Award shall be forfeited to UTC, if any Carrier Award shall fail to become vested or fail to be exercised prior to the applicable expiration date, such Carrier Award shall be forfeited to
          Carrier and if any Otis Award shall fail to become vested or fail to be exercised prior to the applicable expiration date, such Otis Award shall be forfeited to Otis.

         

        (j)         Cooperation.  Each of the Parties shall establish an appropriate administration system to
            administer, in an orderly manner, (i) exercises of Carrier Option Awards, Carrier SAR Awards, Otis Option Awards, Otis SAR Awards, Post-Separation UTC Option Awards, and Post-Separation UTC SAR Awards, in each case, that were vested immediately
            prior to the Effective Time, and (ii) the withholding and reporting requirements with respect to all awards.  Each of the Parties shall work together to unify and consolidate all indicative data and payroll and employment information on regular
            timetables and make certain that each applicable Person’s data and records in respect of such awards are correct and updated on a timely basis.  The foregoing shall include information required for Tax withholding and remittance, compliance
            with trading windows, and compliance with the requirements of the Exchange Act and other applicable Laws.  In order to facilitate the foregoing matters, each of the Parties shall maintain, at its own expense, UBS as its stock plan
          administrator (or such other party as may be agreed by Carrier, Otis and UTC) and maintain the payroll data aggregation process established by UTC in advance of the Separation, in each case, for the period commencing on the Distribution Date and
          ending no earlier than the earlier of (i) the seventh (7th) anniversary of the Effective Time and (ii) the date on which there no longer outstanding any Carrier Option Awards, Carrier SAR Awards, Otis Option Awards, Otis SAR Awards,
          Post-Separation UTC Option Awards, and Post-Separation UTC SAR Awards, in each case, that were vested immediately prior to the Effective Time.  In the event that any Party, after the Effective Time, chooses to use a different payroll data
          aggregation process, the “new” process must be mutually agreed upon by the UTC, Otis and Carrier Payroll/Tax organizations.

         

        (k)         Registration and Other Regulatory Requirements.  Carrier agrees to file a registration statement on Form S-8 (and, solely with respect to
          Carrier Awards for which the underlying Carrier Shares are not eligible for registration on Form S-8, a registration statement on Form S-3 or Form S-1) with respect to, and to cause to be registered pursuant to the Securities Act, the Carrier
          Shares authorized for issuance under the Carrier LTIP Plan, as required pursuant to the Securities Act, not later than the Effective Time and in any event before the date of issuance of any Carrier Shares pursuant to the Carrier LTIP Plan.  Otis
          agrees to file a registration statement on Form S-8 (and, solely with respect to Otis Awards for which the underlying Otis Shares are not eligible for registration on Form S-8, a registration statement on Form S-3 or Form S-1) with respect to,
          and to cause to be registered pursuant to the Securities Act, the Otis Shares authorized for issuance under the Otis LTIP Plan, as required pursuant to the Securities Act, not later than the Effective Time and in any event before the date of
          issuance of any Otis Shares pursuant to the Otis

         

        
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        LTIP Plan.  The Parties shall take such additional actions as are deemed necessary or advisable to effectuate the foregoing provisions of this Section 4.02(k).

         

        Section 4.03.        Cash Payment for Fractional Shares.

         

        (a)          Each Employee and Former Employee holding a UTC Award immediately prior to the Effective Time shall receive a cash payment (rounded down to the next whole dollar) with respect to
          such UTC Award equal the difference between (i) the value of such UTC Award calculated immediately prior to the Effective Time calculated based on the UTC Pre-Separation Stock Value and (ii) the value of the Post-Separation UTC Award, Otis Award,
          and/or Carrier Award actually received by such Employee or Former Employee pursuant to Section 4.02(a) through (f) in respect of such UTC Award calculated based on the Carrier Stock Value, the Otis Stock Value and/or the UTC
          Post-Separation Stock Value, as applicable.

         

        (b)          Such cash payment shall be made by UTC with respect to any UTC Group Employee or Former UTC Group Employee, by Carrier with respect to any Carrier Group Employee or Former Carrier
          Group Employer or by Otis, with respect to any Otis Group Employee or Former Otis Group Employee.

         

        (c)          Any cash payment made pursuant to this Section 4.03 shall be subject to applicable withholding and shall be made within ninety (90) days immediately following the Effective
          Time but in no event later than March 15 of the year following the Effective Time (or at such later date as is necessary to avoid the application of additional taxes and penalties under Section 409A of the Code).  Any payment made under this Section

            4.03 may be reduced so that such payment does not result in any award being deemed deferred compensation subject to, or noncompliant deferred compensation under, Section 409A of the Code.

         

        Section 4.04.        Non-Equity Incentive Plans.

         

        (a)          No later than immediately prior to the Effective Time, Carrier and Otis shall each adopt, or have in place, an executive annual bonus plan, covering Carrier Group Employees and Otis
          Group Employees, respectively.

         

        (b)         From and following the Effective Time, the Carrier Group shall retain pursuant to Section 2.03(b) any incentive plan for the exclusive benefit of Carrier Group Employees and
          Former Carrier Group Employees and as from January 1, 2020, shall be solely responsible for all Liabilities thereunder, including Liabilities arising before, on or after the Distribution Date, and the UTC Group shall have no responsibility for
          the Liabilities thereunder.

         

        (c)         From and following the Effective Time, the Otis Group shall retain pursuant to Section 2.03(c) any incentive plan for the exclusive benefit of Otis Group Employees and Former
          Otis Group Employees and as from January 1, 2020, shall be solely responsible for all Liabilities thereunder, including liabilities arising before, on or after the Distribution Date and the UTC Group shall have no responsibility for the
          Liabilities thereunder.

         

        Section 4.05.      Director Compensation.  UTC shall be responsible for the payment of any fees for service
            on the UTC Board that are payable before, at, or after the Effective Time, and Carrier and Otis shall not have any responsibility for any such payments, except as otherwise

         

        
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        provided in Section 4.02(g) or Article VI.  With respect to any Carrier non-employee director, Carrier shall be responsible for the payment of any fees for service on the Carrier Board that are payable at any time after the Effective Time and with respect to
            any Otis non-employee director, Otis shall be responsible for the payment of any fees for service on the Otis Board that are payable at any time after the Effective Time.  Notwithstanding the foregoing, Carrier and Otis shall commence paying
            annual retainers to Carrier Transferred Directors and Otis Transferred Directors, respectively, in respect of the annual board compensation period in which the Effective Time occurs; provided that (a) if UTC has already paid such annual retainers to UTC Non-Employee Directors prior to the Effective Time, then within thirty (30) days after the Distribution Date, Carrier and Otis shall each pay UTC an amount equal to the portion of such payment that is attributable to the service of Carrier Transferred Directors and Otis Transferred Director, respectively, after the Distribution Date (other than any amount
            that is subject to a deferral election and is credited or will be credited to any such director’s account under the Carrier DSU Plan or the Otis DSU Plan), and (b) if UTC has not yet paid such annual retainers prior to the Effective Time, then
            within thirty (30) days after the Distribution Date, UTC shall pay Carrier and Otis an amount equal to the portion of such payment that is attributable to service prior to the Distribution Date to UTC by
            Carrier Transferred Directors and Otis Transferred Directors, respectively.

         

          

        ARTICLE V

        U.S. QUALIFIED RETIREMENT PLANS

         

        Section 5.01.        UTC Employee Retirement Plan.

         

        (a)         Retention of the UTC Retirement Plan.  Except as set forth in this Article V, as of the day following the Effective Time, UTC shall
          assume and retain the UTC Employee Retirement Plan as of the Effective Time and no member of the Carrier Group or the Otis Group shall assume or retain any Liability with respect to the UTC Retirement Plan.  Following the Effective Time, no
          Carrier Group Employee or Otis Group Employee shall be credited with any additional service under the UTC Retirement Plan, except as contemplated by Section 5.01(b).

         

        (b)          Separation from Service; Grow-in.  UTC shall, or shall cause another member of the UTC Group to, amend the UTC Retirement Plan to provide
          that for the two (2)-year period commencing at the Effective Time, each Carrier Group Employee and Otis Group Employee who is a participant in the UTC Retirement Plan shall be given credit for service with members of the Carrier Group and the
          Otis Group for purposes of eligibility for early retirement, the “Rule of 65” benefits and “Rule of 100” benefits under the UTC Retirement Plan (but not for purposes of accruing additional benefits under the UTC Retirement Plan) and shall not be
          entitled to a distribution during such two (2)-year period until such participant is no longer employed by any member of the Otis Group, Carrier Group or UTC Group, subject to the terms of the UTC Retirement Plan.  In no case shall Former Carrier
          Group Employees or Former Otis Group Employees receive any additional credit for service pursuant to this section.

         

        Section 5.02.        UTC Savings Plans.

         

        (a)         UTC Savings Plans.  As of the Effective Time, UTC shall retain, and no member of the Carrier Group or Otis Group shall assume or retain
          sponsorship of, or any Assets or Liabilities with respect to, the UTC Employee Savings Plan, the UTC Represented Employees

         

        
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        Savings Plan, and the UTC Puerto Rico Savings Plan (the UTC Puerto Rico Savings Plan, together with the UTC Represented Savings Plan and UTC Savings Plan, the “UTC Savings Plans”), other than with respect to
          the rollover of account balances described in Section 5.02(c).  Prior to the Effective Time, UTC shall, or shall cause a member of the UTC Group to, (i) cause each Carrier Group Employee and Otis Group Employee to be fully vested in his
          or her accounts, if any, under the UTC Savings Plans as of the Effective Time and (ii) amend the UTC Savings Plan and UTC Represented Savings Plan to provide that any Otis Group Employee or Carrier Group Employee who becomes an employee of any
          member of the UTC Group after the Effective Time shall receive credit for participation and vesting under the UTC Savings Plans (other than the UTC Puerto Rico Savings Plan) with respect to such employee’s service with any member of the Carrier
          Group or the Otis Group during the two (2)-year period commencing on the Effective Time (to the extent such employee is otherwise eligible and commences employment with a member of the UTC Group within such two-year period).

         

        (b)        Carrier Savings Plans.  Carrier shall, or shall cause a member of the Carrier Group, to establish the Carrier Savings Plan, tax qualified
          defined contribution plans, no later than as of the Effective Time for Carrier Group Employees who participate in the UTC Savings Plan and UTC Represented Savings Plan, respectively, immediately prior to the Effective Time.  Carrier shall be
          responsible for taking all necessary, reasonable and appropriate action to establish, maintain and administer the Carrier Savings Plan so that it is qualified under Section 401(a) of the Code and that the related trust thereunder is exempt under
          Section 501(a) of the Code and as soon as reasonably practicable following the Effective Time, Carrier shall take all steps reasonably necessary to obtain a favorable determination from the IRS or obtain an opinion as to such qualification of
          such Carrier Savings Plan.  No later than immediately prior to the Effective Time, Carrier Group Employees shall cease active participation in the UTC Savings Plans, and no later than the Effective Time, Carrier Group Employees shall be eligible
          to commence participation in the Carrier Savings Plan.  Any minimum age or service requirements contained in the Carrier Savings Plan with respect to eligibility to participate generally or eligibility to share in any employer contributions under
          such plan shall be waived or deemed satisfied for Carrier Group Employees to the extent waived or satisfied under the UTC Savings Plans immediately prior to the Effective Time.  The Carrier Savings Plan shall provide that any UTC Group Employee
          or Otis Group Employee who becomes an employee of any member of the Carrier Group after the Effective Time shall receive credit for participation and vesting under the Carrier Savings Plan with respect to such employee’s service with any member
          of the UTC Group or the Otis Group during the two (2)-year period commencing on the Effective Time (to the extent such employee is otherwise eligible to participate and commences employment with a member of the Carrier Group during such two year
          period).

         

        (c)          Otis Savings Plans.  Otis shall, or shall cause a member of the Otis Group, to establish the Otis Savings Plan and the Otis Puerto Rico
          Savings Plan (the Otis Puerto Rico Savings Plan together with the Otis Savings Plan, the “Otis Savings Plans”), tax qualified defined contribution plans, no later than as of the Effective Time for Otis Group Employees who participate in
          the UTC Savings Plan and Otis Puerto Rico Savings Plan, respectively, immediately prior to the Effective Time.  Otis shall be responsible for taking all necessary, reasonable and appropriate action to establish, maintain and administer the Otis
          Savings Plans so that it is qualified under Section 401(a) of the Code and that the related trust thereunder is exempt under Section 501(a) of the Code (or Section 1081.01(a) of the Puerto Rico Internal Revenue Code of 2011, as applicable)

         

        
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        and, as soon as reasonably practicable following the Effective Time, Otis shall take all steps reasonably necessary to obtain a favorable determination or obtain an opinion from the IRS or the Puerto Rico Treasury
          Department as to such qualification of such Otis Savings Plans, as applicable.  No later than immediately prior to the Effective Time, Otis Group Employees shall cease active participation in the UTC Savings Plans, and no later than the Effective
          Time, Otis Group Employees shall be eligible to commence participation in the Otis Savings Plans.  Any minimum age or service requirements contained in the Otis Savings Plans with respect to eligibility to participate generally or eligibility to
          share in any employer contributions under such plan shall be waived or deemed satisfied for Otis Group Employees to the extent waived or satisfied under the UTC Savings Plans immediately prior to the Effective Time.  The Otis Savings Plans (other
          than the Otis Puerto Rico Savings Plan) shall provide that any UTC Group Employee or Carrier Group Employee who becomes an employee of any member of the Otis Group after the Effective Time shall receive credit for participation and vesting under
          the Otis Savings Plans with respect to such employee’s employment with any member of the UTC Group or the Carrier Group during the two (2)-year period commencing on the Effective Time (to the extent such employee is otherwise eligible to
          participate and commences employment with a member of the Otis Group during such two year period).

         

        (d)         Rollover of Account Balances.  As soon as practicable after the Effective Time, UTC, Carrier and Otis shall take any and all actions as may
          be required to permit each Carrier Group Employee and Otis Group Employee to elect to make rollover contributions of “eligible rollover distributions” (within the meaning of Section 402(c)(4) of the Code if applicable) in cash in an amount equal
          to the entire eligible rollover distribution distributable to such Carrier Group Employee and Otis Group Employee from the UTC Savings Plans to Carrier Savings Plan and Otis Savings Plans, respectively.

         

        (e)         Plan Fiduciaries.  For all periods on and after the Effective Time, the Parties agree that the applicable fiduciaries of each of the UTC
          Savings Plans, Carrier Savings Plan and the Otis Savings Plans, respectively, shall have the authority with respect to the UTC Savings Plans, Carrier Savings Plan and Otis Savings Plans, respectively, to determine the investment alternatives, the
          terms and conditions with respect to those investment alternatives and such other matters as are within the scope of their duties under ERISA and the terms of the applicable plan documents.

         

        ARTICLE VI

        NONQUALIFIED DEFERRED COMPENSATION PLANS

         

        Section 6.01.      UTC Retained Nonqualified Deferred Compensation Plans.  As of no later than the Effective Time, except as set forth in Sections

            4.02(g) and 6.02, the UTC Group shall assume and retain, and no member of the Carrier Group or the Otis Group shall assume or retain, sponsorship of all UTC Retained Deferred Compensation Plans, and from and after the Effective
          Time, all Assets and Liabilities thereunder shall be Assets and Liabilities of the UTC Group.  All UTC Shares notionally credited to participants’ accounts under any of the UTC Retained Deferred Compensation Plans immediately prior to the
          Effective Time shall be adjusted from and after the Effective Time so that the number of UTC Shares notionally credited as of the Effective Time to each participant’s account shall be equal to the product, rounded to three decimal places,
          obtained by multiplying (a) the number of UTC Shares notionally credited under such UTC

         

        
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        Retained Deferred Compensation Plan to such participant immediately prior to the Effective Time by (b) the UTC Adjustment Ratio.  Prior to the Effective Time, UTC shall provide Carrier with a list of Carrier Group
          Employees and Otis with a list of Otis Group Employees, in each case, who are participants in the UTC Retained Deferred Compensation Plans.  If an Otis Group Employee on such list terminates employment with the Otis Group, Otis shall, or shall
          cause a member of the Otis Group to, provide written notice to UTC of such employee’s termination of employment within twenty (20) days of such employee’s termination of employment.  If a Carrier Group Employee on such list terminates employment
          with the Carrier Group, Carrier shall, or shall cause a member of the Carrier Group to, provide written notice to UTC of such employee’s termination of employment within twenty (20) days of such employee’s termination of employment. 
          Notwithstanding the foregoing, (i) Carrier shall be liable, and shall reimburse UTC, for any Liabilities of UTC arising with respect to the UTC Retained Deferred Compensation Plans as a result of any failure by a member of the Carrier Group to
          provide proper notice of an employment termination that directly results in the inability of UTC to administer the UTC Retained Deferred Compensation Plans in compliance with Section 409A of the Code with respect to any Carrier Group Employee who
          participated thereunder, and (ii) Otis shall be liable, and shall reimburse UTC, for any Liabilities of UTC arising with respect to the UTC Retained Deferred Compensation Plans as a result of any failure by a member of the Otis Group to provide
          proper notice of an employment termination that directly results in the inability of UTC to administer the UTC Retained Deferred Compensation Plans in compliance with Section 409A of the Code with respect to any Otis Group Employee who
          participated thereunder.

         

        Section 6.02.       UTC Bifurcated Nonqualified Deferred Compensation Plans.  As of no later than the Effective Time, Carrier shall establish the
          Carrier Deferred Compensation Plans and Otis shall establish the Otis Deferred Compensation Plans, which plans shall have substantially the same terms as of immediately prior to the Effective Time as the UTC Bifurcated Nonqualified Deferred
          Compensation Plans.  Carrier and Otis may make such changes, modifications or amendments to the Carrier Deferred Compensation Plans and the Otis Deferred Compensation Plans, respectively, as may be required by applicable Law or as are necessary
          and appropriate to reflect the Separation, it being understood that any such changes, modifications or amendments shall not result in benefits that are less favorable than those provided under the UTC Bifurcated Deferred Compensation Plans to
          participants in the UTC Bifurcated Deferred Compensation Plans immediately prior to the Effective Time.

         

        (a)         Assumption of Liabilities in General.  As of the Effective Time, except as otherwise provided in Section 6.02(b), Carrier shall, and
          shall cause the Carrier Deferred Compensation Plans, and Otis shall, and shall cause the Otis Deferred Compensation Plans, to assume all Liabilities under the UTC Bifurcated Deferred Compensation Plans for the benefits of Carrier Group Employees
          and Former Carrier Group Employees and Otis Group Employees and Former Otis Group Employees, respectively, determined as of immediately prior to the Effective Time, and the UTC Group and the UTC Bifurcated Deferred Compensation Plans shall be
          relieved of all Liabilities for those benefits.  UTC shall, or shall cause a member of the UTC Group to, assume and retain all Liabilities under the UTC Bifurcated Compensation Plans for the benefits of UTC Group Employees and Former UTC Group
          Employees.  On and after the Effective Time, Carrier Group Employees, Former Carrier Group Employees, Otis Group Employees, and Former Otis Group Employees shall cease to be participants in the UTC Bifurcated Deferred Compensation Plans.

         

        
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        (b)          Assumption of Liabilities under UTC Pension Preservation Plan (Post-2005).  As of the Effective Time, Carrier shall, and shall cause the
          applicable Carrier Pension Preservation Plan (Post-2005), and Otis shall, and shall cause the applicable Otis Pension Preservation Plan (Post-2005), to assume all Liabilities under the UTC Pension Preservation Plan (Post-2005) for the benefits of
          Carrier Group Employees and Otis Group Employees, respectively, determined as of immediately prior to the Effective Time, and the UTC Group and the UTC Pension Preservation Plan (Post-2005) shall be relieved of all Liabilities for those
          benefits.  UTC shall, or shall cause a member of the UTC Group to, assume and retain all Liabilities under the UTC Pension Preservation Plan (Post-2005) for the benefits of UTC Group Employees and Former Employees, including, for the avoidance of
          doubt, any benefits in pay status to Former Employees.  On and after the Effective Time, Carrier Group Employees and Otis Group Employees shall cease to be participants in the UTC Pension Preservation Plan (Post-2005).

         

        (c)         Adjustment of UTC Shares.  All UTC Shares notionally credited to a participant’s accounts under any of the UTC Bifurcated Deferred
          Compensation Plans immediately prior to the Effective Time (including as a UTC PSU Award deferred under the UTC PSU LTIP Deferral Plan or a UTC deferred stock unit credited under the UTC Savings Restoration Plan or UTC Deferred Compensation Plan)
          shall be adjusted from and after the Effective Time so that with respect to a participant in the UTC Bifurcated Deferred Compensation Plans immediately following the Effective Time, the number of UTC Shares notionally credited as of the Effective
          Time under a UTC Bifurcated Deferred Compensation Plan shall be equal to the product, rounded  to three decimal places, obtained by multiplying (A) the number of UTC Shares notionally credited under such UTC Bifurcated Deferred Compensation Plan
          immediately prior to the Effective Time by (B) the UTC Adjustment Ratio, (i) with respect to a participant in the Carrier Deferred Compensation Plans immediately following the Effective Time, the number of Carrier Shares notionally credited as of
          the Effective Time under a Carrier Deferred Compensation Plan shall be equal to the product, rounded to three decimal places, obtained by multiplying (A) the number of UTC Shares notionally credited under such UTC Bifurcated Deferred Compensation
          Plan immediately prior to the Effective Time by (B) the Carrier Adjustment Ratio and (ii) with respect to a participant in the Otis Deferred Compensation Plans immediately following the Effective Time, the number of Otis Shares notionally
          credited as of the Effective Time under an Otis Deferred Compensation Plan shall be equal to the product, rounded to three decimal places, obtained by multiplying (A) the number of UTC Shares notionally
          credited under such UTC Deferred Compensation Plan immediately prior to the Effective Time by (B) the Otis Adjustment Ratio.

         

        (d)       Investment Alternatives.  As of no later than the Effective Time, the Carrier Savings Restoration Plan shall provide that (i) distributions
          from the Carrier stock fund shall be in cash and not in kind and (ii) an amount equal to the value of notional Carrier Shares held in a participant’s Carrier stock fund account may, at the election of the applicable participant, be notionally
          invested in any other investment alternative available under the Carrier Savings Restoration Plan.  As of no later than the Effective Time, the Otis Savings Restoration Plan shall provide that (i) distributions from the Otis stock fund shall be
          in cash and not in kind and (ii) an amount equal to the value of notional Otis Shares held in a participant’s Otis stock fund account may, at the election of the applicable participant, be notionally invested in any other investment alternative
          available under the Otis Savings Restoration Plan.

         

        
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        (e)          Deferred PSU Awards.  Deferred UTC PSU Awards that have been adjusted pursuant to Section 6.02(b) into (i) deferred Carrier UTC PSU
          Awards for Carrier Group Employees and Former Carrier Group Employees shall be subject to the terms of the Carrier PSU Deferral Plan and (ii) deferred Otis UTC PSU Awards for Otis Group Employees and Former Otis Group Employees shall be subject
          to the terms of the Otis PSU Deferral Plan.

         

        ARTICLE VII

        NON-U.S. RETIREMENT PLANS

         

        Section 7.01.       Retention of UK Pension Scheme.  UTC shall assume and retain the UTC (UK) Pension Scheme as of the Effective Time, and no
          member of the Carrier Group or the Otis Group shall assume or retain any Assets or Liabilities with respect to the UTC (UK) Pension Scheme.  Following the Effective Time, no Carrier Group Employees or Otis Group Employees shall be credited with
          any additional service under the UTC (UK) Pension Scheme.  Carrier Group Employees and Otis Group Employees who actively participated in the UTC Pension Scheme immediately prior to the Effective Time shall participate in defined contribution
          pension plans made available by members of the Carrier Group or Otis Group, respectively, after the Effective Time.

         

        ARTICLE VIII

        WELFARE BENEFIT PLANS

         

        Section 8.01.        Welfare Plans.

         

        (a)          Establishment of Carrier Welfare Plans and Otis Welfare Plans.  Except as otherwise provided in this Article VIII, as of no later
          than the Effective Time, Carrier shall establish the Carrier Welfare Plans and Otis shall establish the Otis Welfare Plans, in each case, with terms substantially similar to the UTC Welfare Plans, and in all cases, with such changes,
          modifications or amendments as may be required by applicable Law or as are necessary and appropriate to reflect the Separation.  In addition, the Carrier Group and Otis Group shall retain the right to modify, amend, alter or terminate the terms
          of any Carrier Welfare Plans and Otis Welfare Plans, respectively, to the same extent that the UTC Group had such rights under the corresponding UTC Welfare Plan.

         

        (b)         Allocation of Welfare Plan Assets and Liabilities.  Effective as of the Effective Time (i) UTC shall, or shall cause a member of the UTC
          Group to, retain or assume, as applicable, and be responsible for all Liabilities relating to, arising out of or resulting from health and welfare coverage or claims incurred by or on behalf of UTC Group Employees or Former UTC Group Employees
          under the UTC Welfare Plans before, at or after the Effective Time; (ii) Carrier shall, or shall cause a member of the Carrier Group to, retain or assume, as applicable, and be responsible for all Liabilities relating to, arising out of or
          resulting from health and welfare coverage or claims incurred by or on behalf of Carrier Group Employees or Former Carrier Group Employees under the UTC Welfare Plans and Carrier Welfare Plans before, at or after the Effective Time; and (iii) the
          Otis Group shall retain or assume, as applicable, and be responsible for all Liabilities relating to, arising out of or resulting from health and welfare coverage or claims incurred by or on behalf of Otis Group Employees or Former Otis Group
          Employees under UTC Welfare Plans and Otis Welfare Plans before, at or after the Effective Time.  Any Liabilities

         

        
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        incurred or paid by the UTC Group under the UTC Welfare Plans with respect to Carrier Group Employees or Former Carrier Group Employees shall be subject to reimbursement, if applicable, by the Carrier Group in
          accordance with Section 9.04.  Any Liabilities incurred or paid by the UTC Group after the Effective Time under the UTC Welfare Plans with respect to Otis Group Employees or Former Otis Group Employees shall be subject to reimbursement,
          if applicable, by the Otis Group in accordance with Section 9.04.  Except as provided in this Article VIII, no UTC Welfare Plan shall provide coverage to any Carrier Group Employee, Former Carrier Group Employee, Otis Group
          Employee or Former Otis Group Employee after the Effective Time.

         

        (c)         Waiver of Conditions; Benefit Maximums.  Carrier shall, or shall cause a member of the Carrier Group to, and Otis shall or shall cause a
          member of the Otis Group to, use commercially reasonable efforts to cause the Carrier Welfare Plans and Otis Welfare Plans, respectively, to:

         

        (i)         with respect to initial enrollment as of the Effective Time, waive (x) all limitations as to preexisting conditions, exclusions and service conditions with respect to participation
          and coverage requirements for any Carrier Group Employee, Former Carrier Group Employee, Otis Group Employee or Former Otis Group Employee, as applicable, other than limitations that were in effect with respect to such employees or former
          employees under the applicable UTC Welfare Plan as of immediately prior to the Effective Time; and (y) any waiting period limitation or evidence of insurability requirement other than limitations or requirements that were in effect with respect
          to such employees or former employees under the applicable UTC Welfare Plans as of immediately prior to the Effective Time; and

         

        (ii)       take into account (x) with respect to aggregate annual, lifetime or similar maximum benefits available under the Carrier Welfare Plans or Otis Welfare Plans, respectively, a Carrier
          Group Employee’s, Former Carrier Group Employee’s, Otis Group Employee’s and Former Otis Group Employee’s, as applicable, prior claim experience under the UTC Welfare Plans; and (y) any eligible expenses incurred by a Carrier Group Employee,
          Former Carrier Group Employee, Otis Group Employee or Former Otis Group Employee, as applicable, during the portion of the plan year of the applicable UTC Welfare Plan ending as of the Effective Time under such Carrier Welfare Plan or Otis
          Welfare Plan for purposes of satisfying all deductible, coinsurance and maximum out-of-pocket requirements applicable to such employees or former employees for the applicable plan year to the same extent as such expenses were taken into account
          by UTC for similar purposes prior to the Effective Time as if such amounts had been paid in accordance with such Carrier Welfare Plan or Otis Welfare Plan, as applicable.

         

        Section 8.02.     COBRA.  The UTC Group shall assume and retain Liability for and be responsible for complying with, and providing coverage
          pursuant to, the health care continuation requirements of COBRA, and the corresponding provisions of the UTC Welfare Plans with respect to any UTC Group Employees and any Former UTC Group Employees who incur a qualifying event under COBRA before,
          as of, or after the Effective Time.  Effective as of the Effective Time, the Carrier Group shall assume and retain Liabilities and be responsible for complying with, and providing coverage pursuant to, the health care continuation requirements of
          COBRA, and the corresponding provisions of the Carrier Welfare Plans with respect to any Carrier Group Employees or Former Carrier Group Employees who incur a qualifying event or loss of coverage under the Carrier Welfare Plans and/or the UTC
          Welfare Plans before, as of, or after the

         

        
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        Effective Time.  Effective as of the Effective Time, the Otis Group shall assume and retain Liability and be responsible for complying with, and providing coverage pursuant to, the health care continuation
          requirements of COBRA, and the corresponding provisions of the Otis Welfare Plans with respect to any Otis Group Employees or Former Otis Group Employees who incur a qualifying event or loss of coverage under the Otis Welfare Plans and/or the UTC
          Welfare Plans before, as of, or after the Effective Time.  The Parties agree that the consummation of the transactions contemplated by the Separation Agreement shall not constitute a COBRA qualifying event for any purpose of COBRA.

         

        Section 8.03.      Flexible Benefit Plans.  The Parties shall take all steps necessary or appropriate so that the account balances (whether
          positive or negative) (the “Transferred Account Balances”) under the UTC Flexible Benefit Plans of each Carrier Group Employee, Former Carrier Group Employee, Otis Group Employee or Former Otis Group Employee who has elected to participate
          therein in the year in which the Effective Time occurs shall be transferred, as soon as practicable after the Effective Time, from the UTC Flexible Benefit Plans to the corresponding Carrier Flexible Benefit Plans and Otis Flexible Benefit Plans,
          as applicable.  Carrier shall, and shall cause the Carrier Flexible Benefit Plans to, assume and retain responsibility, and the UTC Group shall be relieved of all responsibility, as of the Effective Time for all outstanding dependent care and
          medical care claims under the UTC Flexible Benefit Plans of each Carrier Group Employee or Former Carrier Group Employee for the year in which the Effective Time occurs and shall assume and agree to perform the obligations of the analogous UTC
          Flexible Benefit Plans from and after the Effective Time.  Otis shall, and shall cause the Otis Flexible Benefit Plans to, assume and retain responsibility, and the UTC Group shall be relieved of all responsibility, as of the Effective Time for
          all outstanding dependent care and medical care claims under the Otis Flexible Benefit Plans of each Otis Group Employee or Former Otis Group Employee for the year in which the Effective Time occurs and shall assume and agree to perform the
          obligations of the analogous UTC Flexible Benefit Plans from and after the Effective Time.  As soon as practicable after the Effective Time, and in any event within thirty (30) days after the amount of the Transferred Account Balances is
          determined or such later date as mutually agreed upon by the Parties, (i) UTC shall pay Carrier the net aggregate amount of the Transferred Account Balances for Carrier Group Employees and Former Carrier Group Employees if such amount is
          positive, and Carrier shall pay UTC the net aggregate amount of the Transferred Account Balances for Carrier Group Employees and Former Carrier Group Employees if such amount is negative and (ii) UTC shall pay Otis the net aggregate amount of the
          Transferred Account Balances for Otis Group Employees and Former Otis Group Employees if such amount is positive, and Otis shall pay UTC the net aggregate amount of the Transferred Account Balances for Otis Group Employees and Former Otis Group
          Employees if such amount is negative.

         

        Section 8.04.       Vacation, Holidays and Leaves of Absence.  From and following the Effective Time: (a) the Carrier Group shall assume and
          retain all Liabilities with respect to vacation, holiday, annual leave or other leave of absence, and required payments related thereto, for each Carrier Group Employee and Former Carrier Group Employees, unless otherwise required by applicable
          Law; (b) the Otis Group shall assume and retain all Liabilities with respect to vacation, holiday, annual leave or other leave of absence, and required payments related thereto, for each Otis Group Employee and Former Carrier Group Employee,
          unless otherwise required by applicable Law; and (c) the UTC Group shall assume and retain all Liabilities with respect to

         

        
          -39-

          
            

        

        vacation, holiday, annual leave or other leave of absence, and required payments related thereto, for each UTC Group Employee and Former Carrier Group Employee.

         

        

        Section 8.05.       Disability Plans.  UTC shall retain all Liabilities for long-term disability benefits with respect to any Employee or Former
          Employee who is receiving or who subsequently becomes eligible to receive long-term disability benefits under the UTC Welfare Plan that provides long-term disability benefits but only with respect to benefits (including any group health benefits
          that UTC may provide to participants receiving long-term disability benefits) arising from long-term disability claims incurred by any Carrier Group Employee, Former Carrier Group Employee, Otis Group Employee or Former Otis Group Employee prior
          to the Effective Time (other than, in the case of Liabilities for long-term disability benefits (including any group health benefits that may be provided to participants receiving long-term disability benefits) with respect to claims incurred
          under a Carrier Welfare Plan or Otis Welfare Plan, that provides long-term disability benefits, which will be retained by Carrier or Otis respectively).  For this purpose, a disability claim shall be considered incurred on the date of the
          occurrence of the event or condition giving rise to disability.

         

        Section 8.06.       Life Insurance.  UTC shall retain all Liabilities under the UTC Welfare Benefit Plan that provides life insurance benefits
          for covered life insurance claims incurred prior to the Effective Time by Employees and Former Employees, other than any Liabilities with respect to claims incurred by a Carrier Group Employee or Former Carrier Group Employee under a life
          insurance plan of Carrier or incurred by an Otis Group Employee or Former Otis Group Employee under a life insurance plan of Otis, which Liabilities will be retained by Carrier or Otis, respectively.  The applicable Carrier Welfare Benefit Plan
          and Otis Welfare Benefit Plan shall be responsible for all Liabilities with respect to life insurance claims incurred after the Effective Time by Carrier Employees and Otis Employees, respectively.  For these purposes, a claim shall be deemed to
          be incurred on the date of the death of the insured person.

         

        Section 8.07.       Retiree Medical.  UTC shall, or shall cause a member of the UTC Group to, assume and retain, and no member of the Carrier
          Group or Otis Group shall assume or retain any Liabilities with respect to (i) the UTC subsidized retiree medical coverage with respect to each Employee and Former Employee who qualifies for coverage as of December 31, 2019, and (ii) access only
          retiree medical coverage with respect to Former Group Employees.

         

        Section 8.08.      Severance, Retention and Unemployment Compensation.  From and following the Effective Time, (a) the Carrier Group shall assume
          and retain any and all Liabilities to, or relating to, Carrier Group Employees and Former Carrier Group Employees in respect of severance, retention and unemployment compensation, regardless of whether the event giving rise to the Liability
          occurred before, at or after the Effective Time, (b) the Otis Group shall assume and retain any and all Liabilities to, or relating to, Otis Group Employees and Former Otis Group Employees in respect of severance, retention and unemployment
          compensation, regardless of whether the event giving rise to the Liability occurred before, at or after the Effective Time, and (c) the UTC Group shall assume and retain any and all Liabilities to, or relating to, UTC Group Employees and Former
          UTC Group Employees in respect of severance, retention and unemployment compensation, regardless of whether the event giving rise to the Liability occurred before, at or after the Effective Time.

         

        
          -40-

          
            

        

        Section 8.09.       Workers’ Compensation.  The treatment of workers’ compensation claims shall be governed by Section 5.1 of the Separation
          Agreement.

         

        Section 8.10.      Insurance Contracts.  To the extent that any Welfare Plan is funded through the purchase of an insurance contract or is
          subject to any stop loss contract, the Parties shall cooperate and use their commercially reasonable efforts to replicate such insurance contracts for Carrier or Otis, as applicable (except to the extent that changes are required under applicable
          Law or filings by the respective insurers), and to maintain any pricing discounts or other preferential terms for both Carrier or Otis for a reasonable term.  None of the Parties shall be liable for failure to obtain such insurance contracts,
          pricing discounts, or other preferential terms for any other Party.  Each Party shall be responsible for any additional premiums, charges or administrative fees that such Party may incur pursuant to this Section 8.10.

         

        Section 8.11.       Third-Party Vendors.  Except as provided below, to the extent that any Welfare Plan is administered by a third-party vendor,
          the Parties shall cooperate and use their commercially reasonable efforts to replicate any contract with such third-party vendor for UTC, Carrier or Otis, as applicable, and to maintain any pricing discounts or other preferential terms for UTC,
          Carrier and Otis, collectively, for a reasonable term.  None of the Parties shall be liable for failure to obtain such pricing discounts or other preferential terms for any other Party.  Each Party shall be responsible for any additional
          premiums, charges or administrative fees that such Party may incur pursuant to this Section 8.11.

         

        ARTICLE IX

        MISCELLANEOUS

         

        Section 9.01.        Information Sharing and Access.

         

        (a)        Sharing of Information.  Subject to any limitations imposed by applicable Law, each of UTC, Carrier and Otis (acting directly or through
          members of the UTC Group, Carrier Group or the Otis Group, respectively) shall provide to the other Party and its authorized agents and vendors all information necessary (including information for purposes of determining benefit eligibility,
          participation, vesting, calculation of benefits) on a timely basis under the circumstances for the Party to perform its duties under this Agreement.  Such information shall include information relating to equity awards under stock plans.  To the
          extent that such information is maintained by a third-party vendor, each Party shall use its commercially reasonable efforts to require the third-party vendor to provide the necessary information and assist in resolving discrepancies or obtaining
          missing data.

         

        (b)         Transfer of Personnel Records and Authorization.  Subject to any limitation imposed by applicable Law and to the extent that it has not done
          so before the Effective Time, UTC shall transfer to Carrier and Otis any and all employment records (including any Form I-9, Form W-2, Form W-4 or other IRS or state forms) with respect to Carrier Group Employees, Former Carrier Group Employees,
          Otis Group Employees and Former Otis Group Employees, as applicable, and other records reasonably required by Carrier or Otis, as applicable, to enable Carrier or Otis, as applicable, to properly to carry out its obligations under this
          Agreement.  Such transfer of records generally shall occur as soon as administratively practicable at or after the

         

        
          -41-

          
            

        

        Effective Time.  Each Party shall permit the other Party reasonable access to its Employee records, to the extent reasonably necessary for such accessing Party to carry out its obligations hereunder.

         

        (c)         Access to Records.  To the extent not inconsistent with this Agreement, the Separation Agreement or any applicable privacy protection Laws or
          regulations, reasonable access to Employee-related and benefit plan related records after the Effective Time shall be provided to members of the UTC Group, members of the Carrier Group and members of the Otis Group pursuant to the terms and
          conditions of Article VI of the Separation Agreement.

         

        (d)         Maintenance of Records.  With respect to retaining, destroying, transferring, sharing, copying and permitting access to all Employee-related
          information, UTC, Carrier and Otis shall comply with all applicable Laws, regulations and internal policies, and shall indemnify and hold harmless each other from and against any and all Liability, Actions, and damages that arise from a failure
          (by the indemnifying Party or its Subsidiaries or their respective agents) to so comply with all applicable Laws, regulations and internal policies applicable to such information.

         

        (e)          Cooperation.  Each Party shall use commercially reasonable efforts to cooperate and work together to unify, consolidate and share (to the
          extent permissible under applicable privacy/data protection Laws) all relevant documents, resolutions, government filings, data, payroll, employment and benefit plan information on regular timetables and cooperate as needed with respect to (i)
          any claims under or audit of or litigation with respect to any employee benefit plan, policy or arrangement contemplated by this Agreement, (ii) efforts to seek a determination letter, private letter ruling or advisory opinion from the IRS or
          U.S. Department of Labor on behalf of any employee benefit plan, policy or arrangement contemplated by this Agreement, (iii) any filings that are required to be made or supplemented to the IRS, U.S. Pension Benefit Guaranty Corporation, U.S.
          Department of Labor or any other Governmental Authority, and (iv) any audits by a Governmental Authority or corrective actions, relating to any Benefit Plan, labor or payroll practices; provided, however, that requests for
          cooperation must be reasonable and not interfere with daily business operations.

         

        (f)          Confidentiality.  Notwithstanding anything in this Agreement to the contrary, all confidential records and data relating to Employees to be
          shared or transferred pursuant to this Agreement shall be subject to Section 6.9 of the Separation Agreement and the requirements of applicable Law.

         

        Section 9.02.       Preservation of Rights to Amend.  Except as set forth in this Agreement, the rights of each member of the UTC Group, each
          member of the Carrier Group and each member of the Otis Group to amend, waive, or terminate any plan, arrangement, agreement, program, or policy referred to herein shall not be limited in any way by this Agreement.

         

        Section 9.03.      Fiduciary Matters.  UTC, Carrier and Otis each acknowledge that actions required to be taken pursuant to this Agreement may be
          subject to fiduciary duties or standards of conduct under ERISA or other applicable Law, and no Party shall be deemed to be in violation of this Agreement if it fails to comply with any provisions hereof based upon its good-faith determination
          (as supported by advice from counsel experienced in such matters) that to do so would violate such a fiduciary duty or standard.  Each Party shall be responsible for taking such

         

        
          -42-

          
            

        

        actions as are deemed necessary and appropriate to comply with its own fiduciary responsibilities and shall fully release and indemnify the other Party for any Liabilities caused by the failure to satisfy any such
          responsibility.

         

        Section 9.04.      Reimbursement of Costs and Expenses.  The Parties shall promptly reimburse one another, upon reasonable request of the Party
          requesting reimbursement (the “Requesting Party”) as soon as practicable, but in any event within thirty (30) days of receipt of an invoice detailing all costs, expenses and other Liabilities paid or incurred by the Requesting Party (or
          any of its Affiliates), and any other substantiating documentation as the other Party shall reasonably request, that are, or have been made pursuant to this Agreement, the responsibility of the other Party (or any of its Affiliates) including
          those Liabilities, if any, under Section 8.01(b).

         

        Section 9.05.       Dispute Resolution.  The dispute resolution procedures set forth in Article VII of the Separation Agreement shall apply to
          any dispute, controversy or claim arising out of or relating to this Agreement.

         

        Section 9.06.       No Third-Party Beneficiaries.  The provisions of this Agreement are solely for the benefit of the Parties and are not
          intended to confer upon any other Person except the Parties any rights or remedies hereunder.  There are no third-party beneficiaries of this Agreement, and this Agreement shall not provide any third person with any remedy, claim, Liability,
          reimbursement, claim of action or other right in excess of those existing without reference to this Agreement.  Nothing in this Agreement is intended to amend any employee benefit plan or affect the applicable plan sponsor’s right to amend or
          terminate any employee benefit plan pursuant to the terms of such plan.  The provisions of this Agreement are solely for the benefit of the Parties, and no current or former Employee, officer, director, or independent contractor or any other
          individual associated therewith shall be regarded for any purpose as a third-party beneficiary of this Agreement.

         

        Section 9.07.    Incorporation of Separation Agreement Provisions.  Article X of the Separation Agreement (other than Section 10.19 (Ancillary
          Agreements)) is incorporated herein by reference and shall apply to this Agreement as if set forth herein mutatis mutandis.

         

        [Remainder of page intentionally left blank]

          

        

        
          -43-

          
            

        

        IN WITNESS WHEREOF, the Parties have caused this Employee Matters Agreement to be executed by their duly authorized representatives as of the date first written above.

         

        	 	
                UNITED TECHNOLOGIES CORPORATION

              
	 	 
	 	
                By:

              	
                /s/ Michael R. Dumais

              
	 	 	
                Name:

              	
                Michael R. Dumais

              
	 	 	
                Title:

              	
                Executive Vice President, 

                  Operations & Strategy

                

              
	 	 	 	 
	 	
                OTIS WORLDWIDE CORPORATION

              
	 	 
	 	
                By:

              	
                /s/ Michael P. Ryan

              
	 	 	
                Name:

              	
                Michael P. Ryan

              
	 	 	
                Title:

              	
                Vice President, Controller

              
	 	 	 	 
	 	
                CARRIER GLOBAL CORPORATION

              
	 	 
	 	
                By:

              	
                /s/ Kyle Crockett

              
	 	 	
                Name:

              	
                Kyle Crockett

              
	 	 	
                Title:

              	
                Vice President, Controller

              

         

        [Signature Page to Employee Matters Agreement]

         

        

        

         -44-Exhibit 10.4

      

       

        

      
        
          EXECUTION VERSION

           

            

        

        INTELLECTUAL PROPERTY AGREEMENT

        

        

        by and among

        

        

        UNITED TECHNOLOGIES CORPORATION,

        

        

        OTIS WORLDWIDE CORPORATION

        

        

        and

        

        

        CARRIER GLOBAL CORPORATION

        

        

        Dated as of April 2, 2020

        

        

        
          
            

        

        TABLE OF CONTENTS

         

        	
                ARTICLE I DEFINITIONS

              	
                2

                

              
	 	 
	 	
                1.1

              	
                Defined Terms

              	
                2

                

              
	 	 
	
                ARTICLE II ASSIGNMENT OF SOLELY OWNED INTELLECTUAL PROPERTY RIGHTS

              	
                7

                

              
	 	 
	 	
                2.1

              	
                Assigned Intellectual Property Rights

              	
                7

                

              
	 	 
	
                ARTICLE III LICENSING OF INTELLECTUAL PROPERTY RIGHTS

              	
                8

                

              
	 	 
	 	
                3.1

              	
                Licensed Intellectual Property Rights

              	
                8

                

              
	 	
                3.2

              	
                Reserved Intellectual Property Rights

              	
                10

                

              
	 	
                3.3

              	
                No Rescission

              	
                10

              
	 	 
	
                ARTICLE IV TRADEMARKS

              	
                10

              
	 	 
	 	
                4.1

              	
                Ownership of United Technologies Trademarks

              	
                10

              
	 	
                4.2

              	
                Use of United Technologies Trademarks

              	
                11

              
	 	
                4.3

              	
                Special Trademark Provisions.

              	
                12

                

              
	 	 
	
                ARTICLE V EXCLUDED AGREEMENTS

              	
                12

              
	 	 
	 	
                5.1

              	
                No Change to Excluded Agreements

              	
                12

              
	 	 
	
                ARTICLE VI CONFIDENTIALITY

              	
                12

                

              
	 	 
	 	
                6.1

              	
                Received Information and Materials

              	
                12

              
	 	
                6.2

              	
                Confidential Information

              	
                12

              
	 	
                6.3

              	
                Obligations

              	
                13

              
	 	
                6.4

              	
                Termination of UTC NDA

              	
                13

              
	 	 
	
                ARTICLE VII LIMITATIONS AND DISCLAIMERS

              	
                13

              
	 	 
	 	
                7.1

              	
                Subsequent Delivery of Intellectual Property Rights

              	
                13

              
	 	
                7.2

              	
                No Additional Obligations

              	
                14

              
	 	
                7.3

              	
                DISCLAIMER

              	
                14

              
	 	
                7.4

              	
                Limitations of Liability

              	
                14

              
	 	 
	
                ARTICLE VIII GOVERNING LAW AND DISPUTE RESOLUTION

              	
                15

              
	 	 
	 	
                8.1

              	
                Governing Law

              	
                15

              
	 	
                8.2

              	
                Alternative Dispute Resolution

              	
                15

              
	 	
                8.3

              	
                Confidentiality

              	
                13

              
	 	
                8.4

              	
                Equitable Relief

              	
                13

              

        

        

        
          i

          
            

        

        	
                ARTICLE IX GENERAL PROVISIONS

              	
                16

              
	 	 
	 	
                9.1

              	
                Entire Agreement; Conflict Among Agreements

              	
                16

              
	 	
                9.2

              	
                Assignment and Change of Control; Successor and Assigns

              	
                16

              
	 	
                9.3

              	
                Bankruptcy

              	
                17

                

              
	 	
                9.4

              	
                Amendments and Waivers

              	
                17

              
	 	
                9.5

              	
                Notice

              	
                18

              
	 	
                9.6

              	
                Severability

              	
                18

              
	 	
                9.7

              	
                Counterparts

              	
                18

              
	 	
                9.8

              	
                Further Assurances

              	
                18

              
	 	
                9.9

              	
                Interpretation

              	
                19

              

        

        

        
          ii

          
            

        

        INTELLECTUAL PROPERTY AGREEMENT

         

        This INTELLECTUAL PROPERTY AGREEMENT (this “Agreement”), dated as of April 2, 2020, is by and among United Technologies Corporation, a Delaware corporation (“UTC”), Otis Worldwide Corporation, a
          Delaware corporation (“Otis”), and Carrier Global Corporation, a Delaware corporation (“Carrier”) (each, a “Party” and together, the “Parties”).

         

        RECITALS

         

        WHEREAS, UTC, Otis and Carrier have entered into that certain Separation and Distribution Agreement, of even date herewith (the “SDA”), pursuant to which UTC and its subsidiaries will undertake a series of
          transactions following which UTC will separate into three independent, publicly traded companies:  (i) UTC, comprising Collins Aerospace and Pratt & Whitney, a systems supplier to the commercial aerospace and defense industry, (ii) Otis, a
          manufacturer of people-moving products, such as elevators, escalators and moving walkways, and (iii) Carrier, a provider of HVAC, refrigeration, fire, security and building automation technologies;

         

        WHEREAS, pursuant to Section 2.10 of the SDA, UTC, Otis and Carrier agreed to enter into this Agreement;

         

        WHEREAS, each of the Parties and their respective affiliates are currently owners of, and in possession of, certain Intellectual Property Rights (as defined herein), which Intellectual Property Rights may have been
          developed or acquired by such Party independently, or jointly with either or both the other Parties, or assigned to it by either or both of the other Parties prior to the date hereof;

         

        WHEREAS, a result of the corporate relationship between each of the Parties, and not necessarily pursuant to a written agreement, prior to the date hereof, each Party has had access to, and the right to use certain
          Intellectual Property Rights of one or both of the other Parties as required for its business;

         

        WHEREAS, in connection with the transactions contemplated by the SDA, the Parties wish to confirm their respective ownership of certain Intellectual Property Rights (as defined herein), and with respect to certain
          other Intellectual Property Rights transfer ownership thereof from an Assignor Party (as defined herein) to an Assignee Party (as defined herein), and each Assignee Party wishes to receive ownership of such Intellectual Property Rights; and

         

        WHEREAS, in connection with the transactions contemplated by the SDA, the Parties wish to either grant, or confirm the prior grants of, certain rights and licenses with respect to certain Intellectual Property Rights
          from each Licensor Party (as defined herein) to a Licensee Party (as defined herein), and each Licensee Party wishes to receive such license grants on the terms set forth herein.

         

        NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth and in the SDA (and other agreements entered into in connection with the SDA), and other good and valuable consideration, the receipt and
          adequacy of which are hereby acknowledged, and intending to be legally bound, the Parties hereby agree as follows:

         

        
          
            

        

        ARTICLE I

         

        

        DEFINITIONS

          

        

        1.1         Defined Terms.  For the purposes of this Agreement, the following terms shall have the following meanings.  Capitalized
          terms used but not otherwise defined in this Article I or elsewhere in this Agreement shall have the meaning ascribed to such terms in the SDA.  For the avoidance of doubt, for purposes of Section 2.1, Section 3.1, and Section
            4.1, respectively, (a) any reference to an Assignor Party, a Licensor Party, or a Party, respectively, shall be deemed to refer to other relevant members of such Assignor Group, such Licensor Group, or such Party’s Group, respectively and
          (b) any obligation of an Assignor Party, a Licensor Party, or a Party, respectively, shall include an obligation to cause such relevant members of such Assignor Group, such Licensor Group, or such Party’s Group, respectively, to satisfy such
          obligation; in each case, as the context requires.

         

        “AAA Rules” shall have the meaning defined in Section 8.2.2.

         

        “Affiliate” shall mean, for the purpose of this Agreement and notwithstanding its meaning in the SDA, with respect to a Party, another member of the Party Group to which the Party belongs.

         

        “Agreement” shall have the meaning defined in the preamble.

         

        “Assigned Intellectual Property Rights” shall have the meaning defined in Section 2.1.1.

         

        “Assignee Group” shall mean one of the UTC Group, the Otis Group, or the Carrier Group of which an Assignee Party is a member.

         

        “Assignee Party” shall mean the Party, as the context requires, other than the Assignor Party, to whom Intellectual Property Rights are assigned from the Assignor Party pursuant to the terms hereof.

         

        “Assignor Group” shall mean one of the UTC Group, the Otis Group, or the Carrier Group of which the Assignor Party is a member.

         

        “Assignor Party” shall mean one of the Parties, as the context requires, in its capacity as an assignor of Intellectual Property Rights to another Party pursuant to the terms hereof.

         

        “Carrier” shall have the meaning defined in the preamble.

         

        “Confidential Information” shall have the meaning defined in Section 6.2.

         

        “Contemplated to be Used” shall mean that there are contemporaneous books or records, whether in hard copy or electronic or digital format (including emails, databases and other file formats) evidencing a
          specific, good faith intention of future use, created in the ordinary course of business consistent with past practice.

         

        
          2

          
            

        

        “Copyrights” shall mean copyrights and other equivalent rights in copyrightable subject matter in works of authorship (including software), and including all registrations and applications therefor, and all
          renewals, extensions, restorations and reversions thereof.

         

        “Dispute” shall have the meaning defined in Section 8.2.

         

        “Excluded Agreement” shall mean (a) each Negotiated Agreement and (b) each Third Party Agreement; provided that, notwithstanding the foregoing, and without
          limitation, for the purposes of this Agreement, an Excluded Agreement shall not include any IWA or any work performed, without an express written agreement, by a member of an Assignor Group or a Licensor Group as Performer for a member of an
          Assignee Group or a Licensee Group as Requester, respectively, or vice versa.  A non-inclusive (and not necessarily representative) listing of Excluded Agreements is provided in Schedule 5.0.

         

        “Exploit” shall mean, with respect to a particular item of Intellectual Property Rights, to do all things with such Intellectual Property Rights (subject to Article VI),
          including (a) to make, have made, use (including for development), import, offer for sale, and sell any product or service under any Patents within such Intellectual Property Rights; (b) to copy, display, perform, create derivative works based
          upon, and distribute any works under, any Copyrights within such Intellectual Property Rights; and (c) to use Trade Secrets and other confidential or proprietary information within such Intellectual Property Rights.  For the avoidance of doubt, a
          right to Exploit in any manner a particular item of Intellectual Property Rights does not include the right to Exploit in any manner any other Intellectual Property Rights, including any separate background Intellectual Property Rights from or
          with which the item was created or derived, or which is necessary or desirable for a particular use of the item.

         

        “Funded” or “Funding” by an entity shall mean paid for by that entity through one or more cash contributions.  For the purposes of this definition, U.S. Government funds or the funds of any other third
          party or entity shall not be considered.

         

        “Future Affiliate Provision” shall mean a term or provision of any agreement governing Intellectual Property Rights as between or among the Parties that was negotiated and entered into on arm’s-length terms at
          any time prior to the Effective Time between or among members of different Party Groups (a) pursuant to which a licensor Party grants or purports to grant to the Party or Parties licensed under such agreement a license to the Intellectual
          Property Rights of any future Affiliate (including in the case of UTC, Raytheon Company) of the licensor Party, (b) imposing or purporting to impose any non-compete or other similar limitation on the business of any future Affiliate (including in
          the case of UTC, the business of Raytheon Company) of a Party, in favor of another Party or Parties, or (c) requiring or purporting to require the payment to a licensor Party of any incremental royalty or other charge on the business or products
          of any future Affiliate (including in the case of UTC, Raytheon Company) of the Party that is the licensee under such agreement, except to the extent that such future Affiliate avails itself of the license to which such royalty pertains.  Each
          Party agrees that to the extent such Party is the beneficiary of a Future Affiliate Provision, such Party hereby waives and disclaims, and will not seek to enforce or claim the benefit of, such Future Affiliate Provision, such waiver, disclaimer
          and covenant being for the sole benefit of the other Parties, their Party Groups, and their future Affiliates.

         

        
          3

          
            

        

        “Intellectual Property Rights” shall mean any and all intellectual property and industrial property rights throughout the world, whether registered or unregistered,
          including intellectual property and industrial property rights protected or represented by, arising under, or associated with (a) Patents; (b) Copyrights; (c) Trade Secrets; and (d) any other similar or equivalent intellectual property or
          proprietary rights anywhere in the world; provided, however, that Trademarks are expressly excluded from the definition of Intellectual Property Rights.

         

        “Invention Disclosure” shall mean a written description of an invention, or potential invention, submitted to any member of a Party Group for review for patenting.

         

        “IWA” shall mean, as of a relevant date, the contractual terms and conditions prescribed for inter-entity work authorizations by Section 43 of the United Technologies Corporate Policy Manual or a predecessor
          thereof as of the relevant date, including the terms and conditions governing Intellectual Property Rights therein.

         

        “Licensed Intellectual Property Rights” shall have the meaning defined in Section 3.1.1.

         

        “Licensed Patents” shall mean with respect to a particular Licensor Group and Licensee Group, the Patents owned or freely licensable by the Licensor Group, that absent a license of the scope granted to the
          Licensee Group pursuant to Section 3.1 hereof, would be infringed by the operation of the business of the Licensee Group (including the making, selling, offering for sale, using or importing of the products or services of the Licensee
          Group).  In addition, for the purpose of the forgoing determination as to whether a Patent is infringed as of the Effective Time, a Patent that issues after the Effective Time to the extent based upon a Patent Application or Invention Disclosure
          in existence before the Effective Time, shall be deemed to have been in existence from the date immediately prior to the Effective Time.

         

        “Licensee Group” shall mean one of the UTC Group, the Otis Group, or the Carrier Group of which the Licensee Party is a member.

         

        “Licensee Group Field” shall mean the field of the business of the applicable Licensee Group, including the manufacture, sale, support and service of products, and the provision of services, of one or more
          members of the applicable Licensee Group, as of the Effective Time and the natural extension thereof.

         

        “Licensee Party” shall mean one of the Parties, as the context requires, other than the Licensor Party, to whom Licensed Intellectual Property Rights are granted from the Licensor Party pursuant to the terms
          hereof.

         

        “Licensor Group” shall mean one of the UTC Group, the Otis Group, or the Carrier Group of which the Licensor Party is a member.

         

        “Licensor Party” shall mean one of the Parties, as the context requires, in its capacity as a grantor of Licensed Intellectual Property Rights to another Party pursuant to the terms hereof.

         

        “Negotiated Agreement” shall mean any agreement governing Intellectual Property Rights as between or among the Parties that was negotiated and entered into on arm’s-length terms at any time prior to the
          Effective Time between or among members of different Party

         

        
          4

          
            

        

        Groups, including any and all such agreements identified in Schedule 5.0; provided that, notwithstanding the foregoing, and without limitation, for the purposes of this Agreement, a Negotiated Agreement shall not include any
          (i) IWA, (ii) work performed, without an express written agreement, by any member of a Party Group as Performer for another member or members of a Party Group as Requester or (iii) agreement between or among members of different Party Groups to
          the extent including a Future Affiliate Provision.

         

        “Otis” shall have the meaning defined in the preamble.

         

        “Party” and “Parties” shall have the meaning defined in the preamble to this Agreement.

         

        “Party Group” shall mean each of the UTC Group, the Otis Group, and the Carrier Group.

         

        “Patent” shall means any issued patent, including any utility patent, design patent, utility model, and inventor’s certificate, or any like governmental grant or registration for the protection of inventions,
          including any patent granted by the United States Patent and Trademark Office (the “USPTO”), the European Patent Office (the “EPO”) or any foreign equivalent thereof, including any issued patent that is continuation, divisional,
          continuation-in-part, extension, confirmation, reissue, reexamination, renewal, correction or substitution of an issued patent.  In addition, unless the context otherwise requires, the term Patent shall include any Patent Application.

         

        “Patent Application” means any application for a Patent, including any provisional or PCT or similar application, before an applicable governmental office anywhere in the world, including the USPTO and the
          EPO.

         

        “Performer” shall mean, with respect to services, an entity meeting at least one of the following two conditions:  (a) the entity is a “Performer,” as defined in an IWA issued to the entity by the “Requester”
          defined in the IWA, with respect to the services, and/or (b) the entity performed the services at the request of a Requester as part of a joint project with the Requester, with respect to which no IWA was expressly issued nor any Negotiated
          Agreement entered with the Requester, and the entity received Funding from the Requester for the services (which Funded the services in full, or in full jointly with the Performer but with no contribution from any other entity) and delivered
          results of the services to the Requester.

         

        “Performer Background IPR” shall mean, with respect to services performed by the Performer at the request of the Requester, all Intellectual Property Rights held by Performer at the time of such services,
          other than Performer Foreground-Delivered IPR and Performer Foreground-Undelivered IPR, that would be necessary to Exploit Performer Foreground-Delivered IPR.

         

        “Performer Foreground-Delivered IPR” shall mean, with respect to services performed by the Performer at the request of the Requester, all Intellectual Property Rights that were conceived or created by the
          Performer in the course of such performance, directly or by a Performer Service Provider, and delivered to the Requester.

         

        
          5

          
            

        

        “Performer Foreground-Undelivered IPR” shall mean, with respect to services performed by the Performer at the request of the Requester, all Intellectual Property Rights that were conceived or created by the
          Performer in the course of such performance, directly or by a Performer Service Provider, and not delivered to the Requester.

         

        “Performer Service Provider” shall mean, with respect to services performed by the Performer at the request of the Requester, any Affiliate (other than the Requester), supplier, service provider, or other
          Person performing any aspect of the services on behalf of the Performer.

         

        “Person” shall mean an individual, partnership, corporation, limited liability company, joint venture, association or other form of business organization (whether or not regarded as a legal entity under
          applicable law), trust or other entity or organization.

         

        “Received Information and Materials” shall have the meaning defined in Section 6.1.

         

        “Requester” shall mean, with respect to services, an entity meeting at least one of the following two conditions:  (a) the entity is a “Requester,” as defined in an IWA issued by the entity to the “Performer”
          defined in such IWA, with respect to the services, and/or (b) the entity requested the services from the Performer as part of a joint project with the Performer, with respect to which no IWA was expressly issued nor any Negotiated Agreement
          entered with the Performer, and the entity Funded the services (in full independently, or in full jointly with the Performer but with no contribution from any other entity) and received delivery of results of the services from the Performer.

         

        “Requester Foreground IPR” shall mean, with respect to services requested by the Requester from the Performer, all Intellectual Property Rights conceived or created by the Requester, directly or by a Requester
          Service Provider, in connection with such services.

         

        “Requester Service Provider” shall mean, with respect to services performed by the Performer at the request of the Requester, any Affiliate (other than the Performer), supplier, service provider, or other
          Person performing any aspect of the Requester’s obligations in connection with such services.

         

        “SDA” shall have the meaning defined in the recitals.

         

        “Third Party Agreement” shall mean any Agreement, entered into at any time prior to the Effective Time, between or among (a) a third party, on the one hand, and (b) any member or members of the Party Groups,
          including any and all such agreements identified in Schedule 5.0; provided that, notwithstanding the foregoing, and without limitation, for the purposes of this Agreement, a Third Party Agreement shall not include any agreement
          between or among members of different Party Groups to the extent including a Future Affiliate Provision.

         

        “Trade Secrets” shall mean rights in information or know how, regardless of form, including ideas, inventions, designs, drawings, specifications, product configurations, prototypes, models, improvements,
          technical data and other data, databases, formulae, algorithms and mathematical embodiments, laboratory notebooks, pricing and cost information, plans, proposals, processes, procedures, schematics, manufacturing techniques, business methods,

         

        
          6

          
            

        

        customer lists and supplier lists, and Invention Disclosures, that (a) derives economic value, actual or potential, from not being, and is not, generally known or readily ascertainable by proper means and (b) is the subject of efforts that are
          reasonable under the circumstances to maintain the confidentiality or secrecy thereof.

         

        “Trademarks” shall mean trademark rights, whether registered or unregistered, including in trademarks, service marks, trade names, brand names, certification marks, collective marks, Internet domain names and
          registrations, logos, slogans, symbols, trade dress and designs, and including all registrations, renewals, and applications for registration of the foregoing.

         

        “United Technologies Trademarks” shall mean all Trademarks to the extent consisting of or containing “UTC,” “United Technologies Corporation,” “United Technologies,” “UTX,” the UTC Icon, “ACE,” “Achieving
          Competitive Excellence,” all ACE logos, “ESP,” “Employee Scholar Program,” all ESP logos, “ITC360,” all ITC360 logos, and any variations or derivatives of any of the foregoing, and any Trademarks that are confusingly similar thereto.

         

        “UTC” shall have the meaning defined in the preamble.

         

        “UTC Icon” shall mean the symbol, also known as the UTC gear logo, identified as the “UTC Icon” in the UTC “Corporate Identity Guidelines – Brand Basics” document attached as Schedule 4.1.1, regardless
          of color or size, and any variant thereof.

         

        “UTC NDA” shall have the meaning defined in Section 6.4.

         

        ARTICLE II

         

        

        ASSIGNMENT OF SOLELY OWNED INTELLECTUAL PROPERTY RIGHTS

         

        

        2.1          Assigned Intellectual Property Rights

        

        

        2.1.1       Assignments by an Assignor Party.  Subject to Section
              3.2, each Assignor Party, on behalf of itself and the other members of the Assignor Group, hereby irrevocably assigns to the applicable Assignee Party, and agrees to irrevocably assign to the
            applicable Assignee Party, all of its and the other members of the Assignor Group’s rights, title and interest in and to any and all Intellectual Property Rights owned by the Assignor Party or another member of the Assignor Group that meets one
            or more of the following descriptions:

         

        (a)          the Intellectual Property Rights are Requester Foreground IPR conceived or created in the course of services concerning which the
          Assignee Party or another member of the Assignee Group was the Requester, and the Assignor Party or another member of the Assignor Group was the Performer; or

         

        (b)          the Intellectual Property Rights are Performer Foreground-Delivered IPR conceived or created in the course of services concerning
          which the Assignee Party or another member of the Assignee Group was the Requester, and the Assignor Party or another member of the Assignor Group was the Performer; or

         

        
          7

          
            

        

        (c)          the Intellectual Property Rights are Performer Foreground-Undelivered IPR conceived or created in the course of services
          concerning which the Assignor Party or another member of the Assignor Group was the Requester, and the Assignee Party or another member of the Assignee Group was the Performer

         

         (collectively, “Assigned Intellectual Property Rights”).

         

        ARTICLE III

         

        

        LICENSING OF INTELLECTUAL PROPERTY RIGHTS

         

        

        3.1          Licensed Intellectual Property Rights

         

        3.1.1       License Grants by a Licensor Party.  Subject to Section
              3.2, a Licensor Party, on behalf of itself and the other members of the Licensor Group, and solely to the extent the Licensor Party or another member of the Licensor Group has the right to do so,
            hereby grants and agrees to grant to the applicable Licensee Party and the other members of the Licensee Group, subject to the field restriction of Section 3.1.2,
            a royalty-free, nonexclusive, perpetual, irrevocable, fully paid-up, worldwide right and license, with the right to sublicense as provided in Section 3.1.3, to
            Exploit Intellectual Property Rights that are owned by the Licensor Party or another member of the Licensor Group immediately following the assignments pursuant to Article II and meet one or more of the following descriptions with respect to the relevant Licensee Party:

         

        (a)          the Intellectual Property Rights are rights under Licensed Patents or other Intellectual Property Rights that, in each case, as of the
            Effective Time, are either (A) used in connection with, or necessary for the ongoing conduct of, the current business of the Licensee Party or another member of the Licensee Group, or (B) Contemplated to be Used in the business of the Licensee
            Party, or another member of the Licensee Group, in the Licensee Group Field; provided, however, that the license granted in this Section 3.1.1(a) does not apply to the Intellectual Property Rights received under or otherwise
            governed by an Excluded Agreement; and/or

         

        (b)          the Intellectual Property Rights are embodied in an invention, or proposed invention, that is both (i) described in a Patent or
            Invention Disclosure held by the Licensor Party or another member of the Licensor Group and (ii) conceived by at least one inventor who, at the time of conception, was employed by a member of the Licensee Group, a non-inclusive list of which
            inventions and proposed inventions are provided in Schedule 3.1.1(b), provided,
          however, that the license granted in this Section 3.1.1(b) does not apply to an
            invention conceived under or otherwise governed by an Excluded Agreement; and/or

         

        (c)          the Intellectual Property Rights are subject to an assignment to the Licensor Party in Section
              2.1.1(b) concerning Performer Foreground-Delivered IPR conceived or created in the course of services concerning which the Licensor Party or another member of the Licensor Group was the
          Requester and the Licensee Party or another member of the Licensee Group was the Performer; and/or

         

        
          8

          
            

        

        (d)          the Intellectual Property Rights are Performer Background IPR or Patent rights of the Licensor Party or another member of the Licensor
            Group and is necessary for the Licensee Party or another member of the Licensee Party to Exploit the Performer Foreground-Delivered IPR in the Licensee Group Field, provided, however, that the license granted in this Section
              3.1.1(d) applies only to the extent necessary for the Licensee Party or another member of the Licensee Group to Exploit the Performer Foreground-Delivered IPR in the Licensee Group Field.

         

        (collectively, “Licensed Intellectual Property Rights”).

         

        3.1.2       Field Restriction.  The licenses granted in Section
              3.1.1 are limited to, and a Licensee Party and the other members of the Licensee Group will have the right to Exploit, only the Licensed Intellectual Property Rights within the Licensee Group Field,
            except for the purposes of research and development at a stage encompassed within U.S. Department of Defense Technology Readiness Levels 1-6 or NASA Technology Readiness Levels 1-6; provided that (a) such research is not intended for use outside the Licensee Group Field, and (b) in the course of research conducted for a third party outside the Licensee Group Field, neither the Licensee Party nor any member
            of the Licensee Group (nor any of their respective officers, directors, employees, contractors, agents or sublicensees) shall disclose such Intellectual Property Rights to the third party.

         

        3.1.3       Sublicense of Licensed Intellectual Property Rights.  A Licensee Party or another member of
            the Licensee Group may sublicense its rights in Licensed Intellectual Property Rights hereunder, solely in support of its respective businesses (and not independent of its current or future products and related services).  In all cases in which
            the exercise of sublicense rights hereunder reasonably requires disclosure of Licensed Intellectual Property Rights to a third party, the applicable member of the Licensee Group will disclose such Licensed Intellectual Property Rights (a)
            solely on a “need to know” basis, (b) provided that the Person to receive Licensed Intellectual Property Rights first agrees in writing to terms of
            confidentiality and non-use at least as restrictive as those provided in this Agreement, and (c) provided that the Licensee Party ensures the performance of, and
            accepts joint and several responsibility for the performance by each of the sublicensees of, the obligations of the Licensee Party and the other members of the Licensee Group under this Agreement.

         

        3.1.4       Improvements.  Each of the licenses granted in Section
              3.1.1, subject to the restrictions of Section 3.1.2 and Section 3.1.3, includes the right of a Licensee Party and other members of the Licensee Group to make improvements to such Licensed Intellectual Property Rights.  Neither a Licensor Party nor any member of the Licensor Group will
            have any rights to any such improvements, and as between a Licensee Party and a Licensor Party, the Licensee Party or applicable member of the Licensee Group will own all such improvements made by the Licensee Party or such member of the
            Licensee Group to Licensed Intellectual Property Rights.

         

        3.1.5       No Implied Licenses.  To the extent Intellectual Property Rights of a Party or member of a
            Party Group are not expressly granted in this Agreement, they are hereby expressly reserved to the Party or member of the Party Group.  Without limiting the generality of the immediately preceding sentence, no express grant by a Licensor Party
            in this Agreement of

         

        
          9

          
            

        

        license rights in certain Intellectual Property Rights shall be construed as implying the grant of any rights by the Licensor Party or another member of the Licensor Group in any other Intellectual Property Rights held
          by the Licensor Party or another member of the Licensor Group.

         

        3.2          Reserved Intellectual Property Rights.  Specific reservations shall apply to certain Intellectual Property Rights as set
          forth in Schedule 3.2.

         

        3.3          No Rescission.  The provisions of this Agreement, including the license rights provided in this Article III, shall
          not be terminable or revocable for any reason.  In the event of any breach of this Agreement, the sole remedy of the non-breaching Party will be to seek monetary damages or equitable relief, including specific performance, as provided in Article
            VII, that does not involve a rescission or termination of any of the provisions of this Agreement (including the license rights provided in this Article III), and each Party irrevocably waives the right to seek any termination or
          rescission of any such provisions or rights.

         

        ARTICLE IV

         

        

        TRADEMARKS

         

        

        4.1         Ownership of United Technologies Trademarks.

         

        4.1.1       Notwithstanding any other provision of this Agreement to the contrary, as between UTC, on the one hand, and Otis, Carrier and other
            members of the Otis Group and the Carrier Group, on the other, all rights in and to the United Technologies Trademarks, including all goodwill appurtenant thereto, are owned and shall be owned solely and exclusively by UTC.  Without limiting
            the foregoing, and subject to Section 4.2, Otis and Carrier, on behalf of themselves and the other members of, respectively, the Otis Group and the Carrier Group,
            hereby irrevocably assign to UTC, and agree and promise to assign to UTC, (a) any and all rights, title and interest in and to the United Technologies Trademarks, including all goodwill appurtenant thereto held by them and the other members of
            the Otis Group and the Carrier Group, and (b) any and all registrations and applications for registration of Trademarks consisting of or containing any of the United Technologies Trademarks, anywhere in the world, to which Otis, Carrier or
            another member of the Otis Group or the Carrier Group holds a legal or equitable interest as of the Effective Time.  Without limitation, the foregoing assignment and promise of assignment includes the right to sue and recover damages for past
            and future infringements of the United Technologies Trademarks and to bring any proceeding in the United States Patent and Trademark Office or any equivalent agency or governing body in any other country for cancellation, opposition, or other
            proceeding in connection with the United Technologies Trademarks.  Except as expressly stated in Section 4.2, none of Otis, Carrier or any other member of the
            Otis Group or the Carrier Group shall have any right, title or interest in or to any of the United Technologies Trademarks, and any and all use of the United Technologies Trademarks, whether or not authorized pursuant to Section 4.2, shall inure solely and exclusively to UTC for all purposes.

         

        
          10

          
            

        

        4.1.2       Otis and Carrier, on behalf of themselves and the other members of, respectively, the Otis Group and the Carrier Group, agree and
            promise to assist UTC and the other members of the UTC Group, at UTC’s request, in UTC’s discretion and at UTC’s cost, in applying for, registering, maintaining, renewing, demonstrating use of, recording UTC’s and the other members of the UTC
            Group’s rights in, and otherwise perfecting, and defending and enforcing against third party infringers, the rights of UTC and the other members of the UTC Group in the United Technologies Trademarks and all goodwill associated therewith,
            including executing, verifying, acknowledging and delivering any and all documents, including any instruments of transfer and recordable assignments, and confirmations of use, and performing such other acts deemed necessary in the reasonable
            opinion of UTC.

         

        4.1.3       Otis and Carrier, on behalf of themselves and the other members of, respectively, the Otis Group and the Carrier Group, agree and
            promise not to (a) challenge in any jurisdiction or venue the right or title of UTC or any other members of the UTC Group in and to any United Technologies Trademark, or the validity or enforceability of any United Technologies Trademark or any
            registration thereof, or (b) register or renew, attempt to register or renew, or assist a Person other than UTC or a member of the UTC Group in registering or renewing, any United Technologies Trademark.

         

        4.2         Use of United Technologies Trademarks

         

        4.2.1       Except as expressly provided in this Section 4.2,
            after the Effective Time, none of Otis, Carrier or any other members of the Otis Group or the Carrier Group shall use, or have the right to use, any of the United Technologies Trademarks.

         

        4.2.2      Without limitation, Otis and Carrier as promptly as reasonably practicable (but in any case within six (6) months of the Effective Time)
            shall cause each member of, respectively, the Otis Group and the Carrier Group having a corporate name that includes any of the United Technologies Trademarks to apply to change its corporate name to a name that does not include any of the
            United Technologies Trademarks, including, within six (6) months of the Effective Time, by making any legal filings in each relevant jurisdiction necessary to effect such change worldwide.

         

        4.2.3      UTC, on behalf of itself and the other members of the UTC Group, hereby grants to Otis, Carrier and the other members of the Otis Group
            and the Carrier Group a limited, non-exclusive, non-transferable, personal and nonsublicensable right to continue temporarily to use, following the Effective Time, any United Technologies Trademark it is using immediately prior to the Effective
            Time, solely to the extent of such pre-Separation use and in accordance with product quality standards and programs in place at the respective member of the Otis Group or the Carrier Group immediately prior to the Effective Time, and strictly
            in accordance with this Section 4.2.3; provided that Otis and Carrier shall, and
            shall cause each of its respective Affiliates (including, after the Effective Time, the members of, respectively, the Otis Group and the Carrier Group) (a) not to hold itself out as having any affiliation with UTC or any member of the UTC Group
            (except to the extent a third party may infer such affiliation merely due to the limited use of the United Technologies Trademarks as contemplated herein), and (b) to use diligent efforts to eliminate use of the United Technologies Trademarks. 
            In any event, as soon as practicable after the Effective Time, and in any event within three (3) years thereafter, Otis and

         

        
          11

          
            

        

        Carrier shall, and shall cause each of its respective Affiliates (including, after the Effective Time, the members of, respectively, the Otis Group and the Carrier Group), and any of its licensees or its respective
          Affiliates’ licensees, to (a) cease and discontinue use of all United Technologies Trademarks, and (b) complete the removal of the United Technologies Trademarks from all of their respective products, signage, vehicles, properties, technical
          information, stationery and promotional or other marketing materials and other assets of Otis, Carrier and the other members of the Otis Group and the Carrier Group.  Except for the limited, temporary license granted in this Section 4.2.3,
          neither UTC nor any other member of the UTC Group grants any right or license hereunder, express or implied, to use any United Technologies Trademarks.

         

        4.3         Special Trademark Provisions. Special provisions concerning Trademarks are
            provided in Schedule 4.3.

         

        ARTICLE V

         

        

        EXCLUDED AGREEMENTS

         

        

        5.1         No Change to Excluded Agreements.  The Parties do not intend by this Agreement to amend or otherwise change the
          Intellectual Property Rights or other provisions of any Excluded Agreement.  Intellectual Property Rights provided, received or created pursuant to an Excluded Agreement will not constitute Licensed Intellectual Property Rights, and, with respect
          to the applicable parties thereto, will continue to be subject to any licenses, permissions or restrictions granted or imposed in the respective Excluded Agreement in accordance with its terms.

         

        ARTICLE VI

         

        

        CONFIDENTIALITY

         

        

        6.1          Received Information and Materials.  The Parties acknowledge that members of each Party Group currently are in possession
          of information and materials f members of the other two Party Groups, which may include designs, drawings, specifications, technical data and other data, databases, formulae, algorithms and mathematical embodiments, plans, software, proposals,
          processes, procedures, manufacturing techniques, and business methods, and some of which may be included in the Licensed Intellectual Property Rights.  With respect to a receiving Party, such information will be referred to individually or
          collectively as “Received Information and Materials,” provided that Received Information and Materials will not include information disclosed under any Excluded Agreement.

         

        6.2          Confidential Information.  All Received Information and Materials that are identified as or are of the type generally
          considered as confidential or proprietary or that have historically been subject to reasonable confidentiality and proprietary protections, and any communications or information provided after the Effective Time pursuant to this Agreement among
          members of the different Party Groups, will be deemed confidential and proprietary information of the Person that provided it, unless the information (a) is or becomes generally available to the public other than as a result of a disclosure in
          breach of this Agreement; (b) is rightfully available to or known by the receiving Party prior to receipt by the receiving Party

         

        
          12

          
            

        

        without any obligation of confidentiality; (c) is received by the receiving Party from a third party, provided that the third party is not known by the receiving Party, after reasonable inquiry, to be in breach of any obligation of
          confidentiality; or (d) was independently developed by the receiving Party, without violating any contractual or legal obligation (“Confidential Information”).

         

        6.3          Obligations.  With respect to Confidential Information in its possession, custody or control, a receiving member of a
          Party Group will:  (a) hold all Confidential Information in confidence, using the same degree of care such receiving member uses to protect its own confidential information of a similar nature, but in no event less than a reasonable degree of
          care, including sharing Confidential Information internally only on a “need to know” basis, (b) not disclose Confidential Information to any third party, other than as permitted with respect to Licensed Intellectual Property Rights pursuant to Section
            3.1.3, and (c) use Confidential Information only to the extent authorized.

         

        6.4         Termination of UTC NDA.  Upon the Effective Time, (a) the Amended and Restated Nondisclosure Agreement, by and between
          United Technologies Companies, dated July 26, 2012 (the “UTC NDA”), will terminate as among UTC and the other members of the UTC Group, Otis and the other members of the Otis Group, and Carrier and the other members of the Carrier Group,
          (b) the information disclosed under the UTC NDA (i) will be deemed Received Information and Materials and Confidential Information under this Agreement, and (ii) will be licensed hereunder for use by UTC and the other members of the UTC Group,
          Otis and the other members of the Otis Group, Carrier and the other members of the Carrier Group, solely to the extent it is Licensed Intellectual Property Rights granted to UTC and the other members of the UTC Group, Otis and the other members
          of the Otis Group or Carrier and the other members of the Carrier Group, respectively, and (c) notwithstanding paragraph 3 of the UTC NDA, such information disclosed thereunder will continue to be protected for as long as it remains Confidential
          Information.

         

        ARTICLE VII

         

        

        LIMITATIONS AND DISCLAIMERS

         

        

        7.1          Subsequent Delivery of Intellectual Property Rights.

         

        7.1.1       For a period of six (6) months after the Effective Time, upon written request by an Assignee Party or a Licensee Party, and solely to
            the extent the Assignor Party or another member of the Assignor Group or the Licensor Party or another member of the Licensor Group, respectively, has the right to do so, the Assignor Party or the Licensor Party, respectively, shall use
            commercially reasonable efforts to provide (and to cause other members of the Assignor Group or the Licensor Group, respectively, to provide) to the requesting Assignee Party or the Licensee Party, respectively, copies of tangible embodiments
            of the Assigned Intellectual Property Rights and the Licensed Intellectual Property Rights, respectively, in the possession of a member of the Assignor Group or the Licensor Group, respectively, and not in the possession of a member of the
            Assignee Group or the Licensee Group, respectively, upon the Effective Time, to the extent that both (a) such Assigned Intellectual Property Rights or such Licensed Intellectual Property Rights, respectively, are necessary for the ongoing
            conduct of the current

         

        
          13

          
            

        

        business of the requesting Assignee Party or another member of the Assignee Group or the requesting Licensee Party or another member of the Licensee Group, respectively, or was in use in such business as of the
          Effective Time, and (b) such tangible embodiments are reasonably necessary for the use of such Assigned Intellectual Property Rights or such Licensed Intellectual Property Rights, respectively, identified in Section 7.1.1(a).

         

        7.2         No Additional Obligations.  Except as expressly provided in this Agreement, this Agreement does not create any obligation
          on the part of any of the Parties to provide or create any of the following with respect to the Intellectual Property Rights owned, transferred, granted or licensed under this Agreement:  (a) explanations, corrections, revisions, improvements,
          upgrades, technical assistance, maintenance, installation, debugging, or any other support; or (b) tangible embodiments, documents, information, software, data or any other items, deliverables or services.

         

        7.3         DISCLAIMER.  EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, THE SDA OR ANY OTHER ANCILLARY AGREEMENT, (A) EACH OF THE
          PARTIES CONVEYS INTELLECTUAL PROPERTY RIGHTS UNDER THIS AGREEMENT SOLELY ON AN “AS IS,” “WHERE IS” AND “WITH ALL FAULTS” BASIS, AND (B) NONE OF THE PARTIES MAKES, AND EACH HEREBY EXPRESSLY DISCLAIMS, ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND
          WITH RESPECT TO SUCH INTELLECTUAL PROPERTY RIGHTS, WHETHER EXPRESS OR IMPLIED, INCLUDING ANY REPRESENTATION OR WARRANTY WITH RESPECT TO MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, COMPLETENESS OR SUFFICIENCY, OR EXPORTABILITY, OR WITH
          RESPECT TO THE VALIDITY, SCOPE, ENFORCEABILITY OR NONINFRINGEMENT OF ANY OF SUCH INTELLECTUAL PROPERTY RIGHTS.  FOR AVOIDANCE OF DOUBT, THE REPRESENTATIONS AND WARRANTIES PROVIDED IN THE SDA ARE NOT AFFECTED BY THIS DISCLAIMER.

         

        7.4         Limitations of Liability.  Except in connection with a Party’s willful and intentional breach of this Agreement or fraud,
          in no event shall any Party or its Affiliates, under any circumstances, be liable or obligated in any manner to another Party or its Affiliates for any consequential, special, incidental, exemplary, indirect, punitive or similar damages, or for
          any loss of future revenue, profits or income, or for any diminution in value damages measured as a multiple of earnings, revenue or any other performance metric arising out of or relating to this Agreement or the transactions contemplated in
          this Agreement, even if such Party or its Affiliate is informed in advance of the possibility of such damages occurring and regardless of whether or not the damages were foreseeable and regardless of the theory or cause of action upon which any
          damages might be based.  This limitation is separate and independent of any other remedy limitations and shall not fail if any such other limitation fails.  The foregoing shall not be deemed to modify or limit any rights or remedies to the extent
          arising under the SDA, any other Ancillary Agreement or any Excluded Agreement.

         

        
          14

          
            

        

        ARTICLE VIII

         

        

        GOVERNING LAW AND DISPUTE RESOLUTION

         

        

        8.1          Governing Law.  This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State
          of Delaware, without regard to any conflict or choice-of-law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.

         

        8.2          Alternative Dispute Resolution.  Any dispute, controversy or claim between or among the Parties (whether sounding in
          contract, tort, or otherwise) arising out of or resulting from this Agreement, including the meaning of its provisions or the performance of any such provisions by a Party, its breach, termination, invalidity or otherwise (each, a “Dispute”)
          will be resolved in accordance with the procedures specified in this Article VIII, which will be the sole and exclusive procedure for the resolution of any such Dispute.

         

        8.2.1       Negotiations.  The Parties will attempt in good faith to resolve any Dispute promptly by
            negotiations among executives of the Parties who have authority to settle the Dispute.  The disputing Party will give the other Party or Parties, as applicable, written notice of the Dispute.  Within twenty (20) days after receipt of said
            notice, the receiving Party or Parties will submit to the other a written response.  The notice and response will include:  (a) a statement of each Party’s position and a summary of the evidence and arguments supporting that position, and (b)
            the name and title of the executive who will represent that Party.  The executives will meet at a mutually acceptable time and place within thirty (30) days of the date of the disputing Party’s notice and thereafter as often as they reasonably
            deem necessary to exchange relevant information and to attempt to resolve the Dispute.

         

        8.2.2       Arbitration.  If a Dispute has not been resolved within sixty (60) days of the date of the
            disputing Party’s notice, any Party desiring a non-negotiated resolution shall refer the Dispute to binding arbitration pursuant to the then-current commercial arbitration rules and supplementary procedures of commercial arbitration of the
            American Arbitration Association (the “AAA Rules”).  The arbitral tribunal shall be composed of a single arbitrator appointed in accordance with the AAA Rules in
            any matter in which an injunction, specific performance or other equitable relief is not requested and the value of the relief any Party seeks (whether by claim or counterclaim) does not exceed three million United States dollars (US
            $3,000,000).  In all other matters, including any matter in which an injunction, specific performance or other equitable relief is requested, the arbitral tribunal shall be composed of a panel of three (3) arbitrators appointed in accordance
            with the AAA Rules.  The arbitration shall take place in New York, New York.  Each Party will bear its own expenses (including attorneys’ fees), and the Parties will share equally the compensation and expenses of the arbitrators and the
            arbitration.  Any arbitration award will be final and shall be enforceable in any court of competent jurisdiction.

         

        8.3         Confidentiality.  All negotiations, and all statements made and documents provided or exchanged in connection with an
          arbitration under Section 8.2.2 will be confidential.  Except with the prior written consent of the other Party or Parties in the Dispute, as applicable, none of the Parties will disclose the existence or content of the Dispute, or the
          results of any

         

        
          15

          
            

        

        dispute resolution process, to third parties other than (a) as may be required by law or legal process after having provided the other Party or Parties with notice thereof and the opportunity to seek a protective order over such information,
          or (b) to outside counsel and tax, financial, and accounting professionals in connection with the Dispute.

         

        8.4         Equitable Relief.  The Parties acknowledge and agree that monetary damages (even if available) may not be an adequate
          remedy in the event that a Party does not perform the provisions of this Agreement in accordance with their specified terms or otherwise breaches any provisions of this Agreement.  Accordingly, and notwithstanding any other provision of this
          Agreement, any Party will be entitled to seek from the arbitrator or arbitration tribunal, and the arbitrator or arbitration tribunal will be empowered to grant, an injunction, specific performance or other equitable relief (whether preliminary,
          permanent, temporary, conservatory or otherwise, and including temporary restraining orders) to prevent such breaches of this Agreement and to enforce specifically the terms hereof, in addition to any other remedy to which such Party is entitled
          at law or in equity.  The Party alleging the breach shall not be required to provide any bond or other security in connection with any such award, but the Parties reserve all rights to otherwise contest the propriety of any award of injunctive
          relief.  In addition, and notwithstanding any other provision of this Agreement, any Party will be entitled to seek in a court of competent jurisdiction an injunction, specific performance or other equitable relief to prevent breaches of this
          Agreement pending an arbitration under Section 8.2.2.

         

        ARTICLE IX

         

        

        GENERAL PROVISIONS

         

        

        9.1          Entire Agreement; Conflict Among Agreements.  This Agreement, together with the SDA, the other Ancillary Agreements and
          the Exhibits and Schedules hereto and thereto, constitute the entire agreement among the Parties with respect to the subject matter of this Agreement and supersede any prior discussion, correspondence, negotiation, proposed term sheet, agreement,
          understanding or arrangement with respect to such subject matter, and there are no agreements, understandings, representations or warranties among the Parties other than those set forth or referred to in this Agreement with respect to such
          subject matter.  In the event of any conflict between the provisions of this Agreement and the provisions of the SDA or any other Ancillary Agreement, the provisions of this Agreement shall control, provided, however, that (a) in
          the event of a conflict between the provisions of this Agreement and the provisions of the Transition Services Agreement, the conflicting provisions of the Transition Services Agreement shall control over the conflicting provisions of this
          Agreement, and (b) nothing in this Agreement limits any of the representations, warranties or indemnity obligations under the SDA or any other Ancillary Agreement.  In the event of any conflict between the provisions of this Agreement and any
          agreement that was entered into at any time prior to the Effective Time between or among members of different Party Groups that is not an Excluded Agreement, the conflicting provisions of this Agreement shall control.

         

        9.2          Assignment and Change of Control; Successor and Assigns

         

        9.2.1       No Party may directly or indirectly sell, assign or otherwise transfer (whether by asset or stock sale, merger, reorganization or
            otherwise) any or all of its rights or

         

        
          16

          
            

        

        delegate any or all of its obligations under this Agreement without the express prior written consent of the other Parties, except as follows:

         

        (a)          Otis or Carrier may (i) freely sell, assign or otherwise transfer, in whole or from time to time in part, Assigned Intellectual Property
            Rights assigned to it hereunder; and (ii) sell, assign or otherwise transfer, in whole or from time to time in part, its rights and obligations under this Agreement (A) to any Affiliate of Otis or Carrier, respectively, (B) to any financing
            entity, in connection with the grant of a revocable security interest necessary for financing, or (C) to a Person acquiring (whether by asset or stock sale, merger, reorganization or otherwise) all or substantially all of the relevant business
            of Otis or Carrier, respectively, that agrees to be bound by the terms and conditions of this Agreement; but any such transfer or assignment will not relieve Otis or Carrier, respectively, of any of its obligations hereunder.

         

        (b)          UTC may (i) freely sell, assign or otherwise transfer, in whole or from time to time in part, Assigned Intellectual Property Rights
            assigned to it hereunder; and (ii) sell, assign or otherwise transfer, in whole or from time to time in part, its rights under this Agreement (A) to any member of the UTC Group, (B) to any financing entity, in connection with the grant of a
            revocable security interest necessary for financing, or (C) to a Person acquiring (whether by asset or stock sale, merger, reorganization or otherwise) all or substantially all of the relevant business of UTC that agrees to be bound by the
            terms and conditions of this Agreement; but any such transfer or assignment will not relieve UTC of any of its obligations hereunder.

         

        9.2.2       Any purported sale, assignment or other transfer in contravention of this Section 9.2 shall be null and void.

         

        9.2.3       Subject to Section 9.2.1 and Section 9.2.2, this Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, assigns and transferees.

         

        9.3          Bankruptcy.  All licenses granted under this Agreement will be deemed licenses of rights to intellectual property for
          purposes of Section 365(n) of the United States Bankruptcy Code and a licensee under this Agreement will retain and may fully exercise all of its rights and elections under the United States Bankruptcy Code.

         

        9.4         Amendments and Waivers.  This Agreement may not be modified or amended, except by an instrument or instruments in writing
          signed by the Party against whom enforcement of any such modification or amendment is sought.  Any Party to this Agreement may, only by an instrument in writing, waive compliance by the other Parties with any term or provision of this Agreement
          on the part of such other Parties to this Agreement to be performed or complied with.  The waiver by any Party to this Agreement of a breach of any term or provision of this Agreement shall not be construed as a waiver of any subsequent breach. 
          No failure or delay by any Party in exercising any right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right,
          power or privilege.  Subject to Section 3.3, the rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

         

        
          17

          
            

        

        9.5          Notice.  All notices or other communications required or permitted hereunder by a Party shall be in writing to the other
          Parties at the address provided below (or at such other address as such Party may designate by notice pursuant to this Section 9.5), and shall be deemed given or delivered (a) when delivered personally against written receipt, (b) if sent
          by registered or certified mail, return receipt requested, postage prepaid, when received, and (c) when delivered by a nationally recognized overnight courier service, prepaid:

         

        	 	
                To UTC:

              	 
	 	 	
                United Technologies Corporation

              
	 	 	
                10 Farm Springs

              
	 	 	
                Farmington, CT  06302

              
	 	 	
                Attention:  Chief Intellectual Property Counsel

              
	 	
                To Otis:

              	 
	 	 	
                Otis Worldwide Corporation

              
	 	 	
                One Carrier Place

              
	 	 	
                Farmington, CT  06032

              
	 	 	
                Attention:  Chief Intellectual Property Counsel

              
	 	 	 
	 	
                To Carrier:

              	 
	 	 	
                Carrier Global Corporation

              
	 	 	
                13995 Pasteur Boulevard

              
	 	 	
                Palm Beach Gardens, FL  33418

              
	 	 	
                Attention:  Chief Intellectual Property Counsel

              

        

        

        9.6         Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent
          jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or
          invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party hereto.  Upon such a determination, the Parties shall negotiate in good faith to modify
          this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

         

        9.7         Counterparts.  This Agreement may be executed in one or more counterparts, and by the different Parties in separate
          counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Agreement by electronic
          means shall be as effective as delivery of a manually executed counterpart of this Agreement.

         

        9.8         Further Assurances.  Each Party agrees, upon written request of another Party, to do all acts and execute, deliver and
          perform all additional documents, instruments and agreements, which may be reasonably required to implement the provisions and purposes of this

         

        
          18

          
            

        

        Agreement; provided, however, that, except as expressly set forth in this Agreement, nothing in this Agreement shall be construed as obligating a Party or its Affiliates to deliver any additional Intellectual Property Rights,
          or any tangible embodiments of any Intellectual Property Rights, to another Party or its Affiliates.

         

        9.9         Interpretation.  For the purposes of this Agreement, (a) words in the singular shall be held to include the plural and
          vice versa, and words of one gender shall be held to include the other gender as the context requires; (b) references to the terms Article, Section, paragraph, Exhibit and Schedule are references to the Articles, Sections, paragraphs, Exhibits
          and Schedules to this Agreement, unless otherwise specified; (c) any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein shall have the meaning as defined in this Agreement; (d) the terms “hereof,” “herein,”
          “hereby,” “hereto” and derivative or similar words refer to this entire Agreement, including the Schedules and Exhibits hereto, and not to any particular provision thereof; (e) references to “$” shall mean U.S. dollars; (f) the word “including”
          and words of similar import when used in this Agreement shall mean “including without limitation,” unless otherwise specified; (g) the word “or” shall not be exclusive; (h) references to “written” or “in writing” include in electronic form; (i)
          provisions shall apply, when appropriate, to successive events and transactions; (j) the Parties have each participated in the negotiation and drafting of this Agreement and if an ambiguity or question of interpretation should arise, this
          Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or burdening any Party by virtue of the authorship of any of the provisions in this Agreement; (k) references to any
          statute shall be deemed to refer to such statute as amended through the date hereof; (l) references to any Contract are to that Contract as amended, modified or supplemented from time to time in accordance with the terms hereof and thereof; (m)
          references to an Affiliate of a Party mean current and future Affiliates of such Party; (n) a reference to any Person includes such Person’s successors and permitted assigns; (o) any reference to “days” shall mean calendar days, unless Business
          Days are expressly specified; and (p) when calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period
          shall be excluded and if the last day of such period is not a Business Day, the period shall end on the next succeeding Business Day.

         

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        [SIGNATURE PAGE FOLLOWS]

         

        
          19

          
            

        

        IN WITNESS WHEREOF, this Agreement has been signed by or on behalf of each of the Parties as of the day first above written.

         

        	 	
                UNITED TECHNOLOGIES CORPORATION

              
	 	  
	 	
                By:

              	
                /s/ Michael R. Dumais

              
	 	 	
                Name:

              	
                Michael R. Dumais

              
	 	 	
                Title:

              	
                Executive Vice President, Operations & Strategy

              
	 	 	  
	 	 	
                OTIS WORLDWIDE CORPORATION

              
	 	 	

              
	 	
                By:

              	
                /s/ Michael P. Ryan

              
	 	 	
                Name:

              	
                Michael P. Ryan

              
	 	 	
                Title:

              	
                Vice President, Controller

              
	 	 	 
	 	 	
                CARRIER GLOBAL CORPORATION

              
	 	 	  
	 	
                By:

              	
                /s/ Kyle Crockett

              
	 	 	
                Name:

              	
                Kyle Crockett

              
	 	 	
                Title:

              	
                Vice President, Controller

              

        

        

        

        

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