Document:

ex10-2.htm

EXHIBIT 10.2

Confidential Treatment

*** AUTHENTICATION MARK Agreement

DRAFT

This Agreement, effective as of the 21 day of December, 2009, is by and between Applied DNA Sciences, Inc., a company incorporated in the State of Delaware and having its place of business at 25 Health Sciences Drive, Suite 213, Stony Brook, NY 11790 (hereinafter referred to as “APDN”)
and ***, a company registered under the laws of *** and having its offices at *** (hereinafter referred to as “***”).

RECITALS

Whereas, APDN owns all the intellectual property rights pertaining to the Authentication Marks (as defined hereunder), and is thus fully entitled to manufacture and sell Authentication Marks to *** as contemplated in this Agreement;

Whereas, *** is desirous of having APDN make or manufacture Authentication Mark(s) exclusively for ***, for use and sale in unique personalized ink upon the terms and conditions set forth herein;

NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS AND OBLIGATIONS HEREINAFTER SET FORTH, THE PARTIES AGREE AS FOLLOWS:

1. DEFINITIONS. As used in this Agreement, the following terms shall be defined as set forth below:

“Agreement Year” shall mean each twelve (12) month period beginning on April 1st of any year and ending on March 31st of the following year. The first Agreement Year shall
start on the Effective Date and end on March 31st, 2011;

“Authentication Mark” shall mean the specific covert and forensic DNA based authentication marker taggant combined with authentication, analysis, and consulting services for use and resale made exclusively for ***.

“Effective Date” shall mean the date of execution by the last party to sign this Agreement, which date shall be written above and which shall be the Effective Date of this Agreement.

 

 

Confidential 1

 

 

Confidential Treatment

 

“Printing Sample” shall mean any paper based document sent to APDN by *** and which presumably bears handwriting made using the DNA Ink.

 

	
2.
	
SCOPE OF AGREEMENT / CUSTOMIZATION, MANUFACTURE & SUPPLY OF AUTHENTICATION MARKS TO ***

	 	 
	
2.1
	
APDN hereby agrees to customize, manufacture and embed the Authentication Marks into ink provided by *** and to supply such Authentication Marks to *** pursuant to the terms and conditions of this Agreement.

	 	 
	2.2	*** and APDN agree to comply with the following procedure:
	 	 
	2.2.1 	
*** shall supply and ship ink in maximum one (1) liter quantities to APDN at *** expense;

	
2.2.2
	
*** shall send a purchase order to APDN detailing the number of Authentication Marks being ordered; APDN shall not accept any purchase order which does not originate from ***;

	
2.2.3
	
APDN will supply the customized Authentication Marks to *** embedded only in the maximum one (1) liter ink bottles supplied by *** (hereinafter referred to as “*** DNA Ink”), to the exclusion of any other ink;

	
2.2.4
	
APDN will supply and ship Authentication Marks to *** within four (4) weeks of receipt of the *** Ink. *** shall bear the shipping charges. APDN agrees to comply with ***’s alternative shipping instructions, if any.

	
2.2.5
	
APDN undertakes to authenticate any Printing Sample sent by *** and return said Printing Sample with a report to *** (to the exclusion of any other party) within two (2) weeks of receipt of said Printing Sample. In any event, APDN undertakes to return any Printing Sample to *** upon the latter’s first demand. APDN shall not be entitled to make and/or retain any copy of a Printing Sample. APDN undertakes to
authenticate Printing Samples sent in by *** during the term of this Agreement and a period of 10 years after its expiry and/or termination for whatever reason.

	 	 
	3.	PURCHASE
	 	 
	
3.1
	
*** will submit a written purchase order (“Purchase Order”) to APDN for each Authentication Mark ordered. APDN acknowledges that *** must be able to cross reference each *** DNA Ink delivered by APDN with the related purchase order, in order to be able to link each Authentication Mark to a *** customer. The Parties agree to implement the required cross referencing system. APDN shall not be entitled to
receive any information regarding the customers to which *** sells or provides in any other manner the DNA Ink.

 

 

Confidential 2

 

 

Confidential Treatment

 

	4. 	CONSIDERATION
	 	 
	
4.1
	
Authentication Mark Fee: *** shall pay APDN an all-inclusive Authentication Mark Fee as set forth in Exhibit A. Additional authentications shall be done for an additional fee as set forth in Exhibit A.

	 	 
	
 
	
Storage Fee: Upon termination of the Agreement, and provided *** wishes to continue offering the Authentication Service to its Customers after termination of this Agreement, *** shall pay to APDN an annual Storage Fee as set forth in Exhibit
A for each Agreement Year during which *** wishes to offer the Authentication Service to enable APDN to maintain the Authentication Marks in order to authenticate Printing Samples for ***.

	 	 
	
 
	
APDN agrees not to increase the Authentication Mark Fee by more than 5% from one Agreement Year to the other. Unless otherwise agreed by both parties, the payment term shall be by wire transfer remittance within thirty (30) days from the invoice receipt date, which shall not be earlier than the delivery date of the corresponding DNA
Ink to ***.

	 	 
	
4.2
	
Currency: All payments to APDN by *** are to be made in US dollars.

	 	 
	
4.3
	
Late Payments: Payments which are delayed beyond sixty (60) days after the end of the date for which they are due shall be subject to a per annum interest charge of 10%.

	 	 
	
4.4
	
Material Breach: Failure of *** to comply with this Section shall be a breach of this Agreement.

	 	 
	5.	SHIPPING
	 	 
	5.1 	
***’s ink for customization and manufacture of the Authentication Mark by APDN shall be shipped to APDN at ***’s cost.

	 	 
	5.2 	
APDN shall ship *** DNA ink to *** FOB Stony Brook.

 

 

Confidential 3

 

 

Confidential Treatment

 

	6.	EXCLUSIVITY
	 	 
	6.1 	
APDN agrees that during the term of this Agreement and for a period of twelve (12) months after its expiry and/or termination for whatever reason, APDN shall not supply DNA Ink for writing to any competitor of *** in the field of luxury writing instruments, such as ***.

	6.2 	
In order to maintain the exclusivity as set forth in paragraph  6.1 above, *** must purchase a minimum volume of DNA Ink as detailed in Exhibit B beginning in the second Agreement Year(i.e. on April 1st, 2011). In the event that *** did not place purchase orders pertaining to the minimum volume set forth in Exhibit B by March
31st of any Agreement Year, the parties agree that APDN shall be released from the exclusivity set forth in section 6.1 above beginning on April 1st of the next Agreement Year.

	 	 
	7.	CONFIDENTIALITY.
	 	 
	7.1 	
In the course of the performance of this Agreement, the parties may furnish each other with confidential and proprietary information and trade secrets (collectively, “Confidential Information”).  Confidential Information of a party is deemed to include, among other things, customer lists, proposed or planned products or services, product designs or improvements, marketing plans, financial and
accounting records, cost and profit figures, forecasts, projections, Printing Samples (including their content, author, recipient as defined herein) and Confidential Information of third parties, that are observed, identified or disclosed under or as a result of this Agreement.  The parties will not disclose the Confidential Information, must immediately return it upon expiration or termination of this Agreement, and must keep it in strict confidence and not use it for any purpose other than the parties’
respective performance under this Agreement.  The disclosing party will use reasonable efforts to mark or cause to be marked all materials containing its Confidential Information to clearly indicate ownership of the materials and their confidential status; however, failure to mark does not by itself disqualify information from being Confidential Information if other factors or circumstances, or a party’s course of performance, clearly indicate to the receiving party at the time of disclosure or
the receiving party acknowledges that the information is confidential. The parties recognize that the Confidential Information of each of the parties (1) was designed and developed by such party at great expense and over lengthy periods of time; (2) is secret, confidential and unique; (3) constitutes the exclusive property and/or trade secrets of such party; and (4) that any use of the Confidential Information by the other of them for any purpose other than in accordance with this Agreement and in furtherance
of obligations hereunder would be wrongful and would cause irreparable injury to the aggrieved party for which damages are not an adequate remedy.  The restrictions and obligations in this Section concerning confidentiality will survive the expiration or termination of this Agreement for a period of three (3) years. The obligations of the parties herein will not apply to information which:  (i)  was known to the receiving party  prior to receipt thereof from the disclosing
party, as evidenced by the written records of the receiving party; (ii) was disclosed to the receiving party  in good faith by a third party who is in lawful possession thereof and who had the right to make such disclosures; (iii) became part of the public domain, by publication or otherwise, through no fault of the receiving party; or, (iv) was independently developed by the receiving party as evidenced by the receiving party’s written records.

 

 

Confidential 4

 

 

Confidential Treatment

 

	7.2 	
The Parties further undertake not to disclose the existence and/or content of this Agreement to third parties, unless as required by law. Both parties agree to not refer to the other party and/or the scope of this Agreement for any purpose whatsoever, including but not limited to reference purposes without the prior written consent of the other party.

	 	 
	8.	TERM AND TERMINATION
	 	 
	8.1 	
This Agreement will commence on the Effective Date and continue for an initial term expiring on March 31st 2015.  The term shall automatically renew thereafter for one (1) year terms, unless terminated by either party with written notice at least one hundred eighty (180) days prior to the end of any Agreement Year.  Beginning
on the end of the first Agreement Year (i.e. March 31st, 2011), APDN, upon thirty (30) days written notice, shall be entitled to change the prices it charges for Authentication Marks, subject to section 4.1 3rd paragraph above; provided, however, such change to the prices shall occur no more frequently than once every Agreement Year. The initial term and
any subsequent renewal term will be subject to the following:

	 	 

	 	
(a)
	
With cause, either party may terminate this Agreement upon providing 30 days’ prior written notice, provided that such termination shall not take effect if the breach is cured within such thirty (30) day period.  The notice required by this Section will describe in reasonable detail the reason for termination;

	 	 	 
	 	
(b)
	
This Agreement will terminate immediately and without notice upon the commencement of a voluntary or involuntary proceeding under any bankruptcy, insolvency, reorganization, liquidation, dissolution, or similar law, or the appointment of a trustee, custodian, sequestrator, liquidator, receiver, or similar official with respect to either party, or the winding-up or liquidation of either
party; and

 

 

Confidential 5

 

 

Confidential Treatment

 

	 	
(c)
	
Termination of this Agreement will not release any party from any liability that has already accrued at the time of termination or that thereafter may accrue with respect to any act or omission arising either prior to such termination or after such termination when there is a continuing obligation under this Agreement.

	 	 	 
	 	
(d)
	
Termination or expiration of this Agreement shall not release *** from the obligation to make payment to APDN of all amounts then and thereafter due and payable under this Agreement within thirty (30) days of termination or expiration, as the case may be. Termination or expiration of this Agreement shall not release APDN from its obligation to authenticate Printing Samples submitted by *** as set forth in this Agreement
nor shall it release *** from its obligations to pay for such services as set forth in Exhibit A.

 

	9.	ASSIGNMENT

 

Neither party may assign this Agreement or delegate part or all rights and/or duties provided herein.  Notwithstanding the foregoing, either party may make an assignment to an affiliate, subsidiary or parent company or may assign the Agreement to a successor-in-interest through a merger or sale of assets or stock upon notice
to the other party but without that party’s consent.

	 	 
	10.	
REPRESENTATIONS AND WARRANTIES BY APDN

 

APDN represents and warrants to *** that the execution, delivery and performance of this Agreement by APDN has been duly authorized and approved by all necessary powers.

	 	 
	11.	
REPRESENTATIONS AND WARRANTIES BY ***

 

The execution, delivery and performance of this Agreement by *** have been duly authorized and approved by all necessary corporate action, and the Agreement is binding upon and enforceable against *** in accordance with its terms.

 

DISCLAIMER. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION, THE AUTHENTICATION MARKS AND ANY OTHER MATERIALS PROVIDED BY APDN ARE PROVIDED “AS IS” WITHOUT ANY WARRANTIES OF ANY KIND, AND APDN SPECIFICALLY DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS
OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

 

 

Confidential 6

 

 

Confidential Treatment

 

	12.	
INDEMNIFICATION

	 	 
	12.1 	
APDN hereby agrees to indemnify, defend, and hold *** harmless from any and all third party claims, losses, liabilities, causes of action and costs (including reasonable attorneys’ fees) arising from, or on account of, or related to any breach by APDN of any of its obligations, representations and warranties hereunder.

	 	 
	12.2 	
*** hereby agrees to indemnify, defend, and hold APDN harmless from any and all third party claims, losses, liabilities, causes of action and costs (including reasonable attorneys’ fees) arising from, or on account of, or related to any breach by *** of any of its obligations, representations and warranties hereunder.

	 	 
	12.3 	
*** shall indemnify APDN against any loss, damage, claims and expenses suffered or incurred by APDN as a result of the unauthorized use or disclosure of APDN’s Confidential Information by *** or ***’S principal, agent, employee, or approved assign and sub-contractor.

	 	 
	12.4 	
APDN shall indemnify *** against any loss, damage, claims and expenses suffered or incurred by *** as a result of the unauthorized use or disclosure of ***’s Confidential Information by APDN or APDN’s agent or employee.

	 	 
	12.5 	
*** shall be solely responsible and liable that the use of Authentication Marks conform to all applicable laws, regulations, standards, such as consumer protection laws, toy safety acts applicable in *** or other countries, except that APDN shall be responsible for ensuring that the Authentication Marks embedded into the ink supplied by *** comply with all and any applicable laws and regulations, such as but not
limited to the US CPSIA. APDN confirms that the Authentication Marks do not contain any lead.

	 	 
	12.6 	
The Parties expressly agree that APDN shall not be responsible and liable in any respect for the sale or distribution of the Authentication Marks, or the services provided except to the extent of the gross negligent or intentional misconduct of APDN in complying with its services obligations of performing under generally accepted professional practices.

	 	 
	12.7 	
Procedure. The affected Indemnified Party will (a) promptly notify Indemnifying Party in writing of any such claim, provided, however, that a delay in notifying Indemnifying Party shall not avoid Indemnifying Party’s indemnity obligations hereunder unless, and only to the extent that, Indemnifying Party’s ability to defend the claim has been materially
prejudiced thereby; and (b) provide to Indemnifying Party, at Indemnifying Party’s expense, all available information, assistance and authority reasonably necessary to defend.  Indemnifying Party shall, at its own expense, assume the defense of any such claim or suit.  In no event, however, shall Indemnifying Party settle any such claim without the written consent of Indemnified Party, which consent shall not be unreasonably withheld.  Indemnifying Party shall reimburse Indemnified
Party for any costs and expenses (including without limitation reasonable attorney’s fees) incurred by Indemnified Party in enforcing the aforesaid indemnification.

 

 

Confidential 7

 

 

Confidential Treatment

 

	12.8 	Exclusion and Limitation on Damages. 

 

DISCLAIMER. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES (INCLUDING WITHOUT LIMITATION, LOSS OF PRODUCTION, LOSS OF PROFITS OR OF CONTRACTS, LOSS OF REVENUE, LOSS OF OPERATION TIME OR
ANTICIPATED SAVINGS, WASTED MANAGEMENT OR STAFF TIME) ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY MATERIALS PROVIDED BY APDN PURSUANT HERETO, WHETHER IN AN ACTION IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE, OR ITS TERMINATION, AND IRRESPECTIVE OF WHETHER INDEMNIFYING PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF ANY SUCH DAMAGES.  THE FOREGOING EXCLUSION SHALL NOT APPLY TO LIMIT EITHER PARTY’S LIABILITY WITH RESPECT TO (A) A THIRD PARTY CLAIM, (B)
VIOLATIONS OF THE CONFIDENTIALITY PROVISIONS OF THIS AGREEMENT (C) FRAUD OR FRAUDULENT MISREPRESENTATION(S) OR (D) CRIMINAL ACTS.

 

	13.	
INDEPENDENT CONTRACTOR

 

	
13.1
	
*** is in business independent from that of APDN and is to be regarded as an independent contractor.  Both parties acknowledge and agree that no fiduciary relationship exists or will arise as a result of this Agreement.  *** agrees that it is not an agent of APDN and APDN agrees that it is not an agent of ***. Both parties further agree that neither can bind the other.

	 	 
	14.	
GOVERNING LAW

	 	 
	14.1 	
This Agreement shall be construed and interpreted in accordance with the laws of the State of New York (without regard to principles of conflicts of laws that might apply the laws of any other jurisdiction).

	 	 
	15.	ENTIRE AGREEMENT
	 	 
	 	
This document constitutes the entire agreement made between the parties with regard to the subject matter of this Agreement, and no representations or promises have been made that are not set forth herein.  This Agreement may not be changed, amended or modified orally and, to be effective, any change, amendment or modification
of the Agreement must be expressly made in writing and signed in advance by authorized representatives of the parties.

 

 

Confidential 8

 

 

Confidential Treatment

 

	16.	NO WAIVER
	 	 
	 	
Waiver of breach or failure to strictly enforce the terms of this Agreement shall not preclude a party from asserting a subsequent or continuing breach or from otherwise requiring strict conformance with the terms of this Agreement.

	 	 
	17.	
SEVERABILITY

	 	 
	
(a)
	
If for any reason any provision of this Agreement, including without limitation any provision relating to the termination of this Agreement, shall be deemed by a court of competent jurisdiction, to be legally invalid or unenforceable in any jurisdiction to which it applies, the validity of the remainder of the Agreement will not be affected and that provision will be deemed modified to the minimum extent necessary
to make that provision consistent with applicable law, and in its modified form, that provision will then be enforceable.

	 	 
	

(b) 

	
All notices, requests, offers and other communications required or permitted to be made under this Agreement shall be in writing and shall be deemed to have been duly given (i) when received if personally delivered; (ii) the delivery date specified on the shipping manifest if sent by a recognized overnight delivery service (e.g., Federal Express); or (iii) upon receipt, if sent by certified or registered
mail, return receipt requested.  In each case notice shall be sent to the address below or such other address as either party most recently may have designated in writing to the other party in accordance with this Section.

 

	
***:
	
***

***
	
APDN:
	
Applied DNA Sciences Inc.

Attn: Kurt Jensen

25 Health Sciences Drive Suite
113, Stony Brook, New York
11790

 

	18.	EXECUTION IN COUNTERPARTS
	 	 
	 	
This Agreement may be executed in counterparts, each of which may be deemed an original, but all of which together will constitute one and the same agreement.

 

	19.	
SECTION HEADINGS

	 	 
	 	
The headings of the sections, paragraphs and exhibits herein are for the parties’ convenient reference only and do not define or limit any of the terms or provisions hereof.  Exhibits and other documents referred to in this Agreement are an integral part hereof, unless the context of such reference indicates otherwise.

 

 

Confidential 9

 

 

Confidential Treatment

 

IN WITNESS WHEREOF, the parties have executed this Agreement by and through their authorized representatives as of the date written above.

 

	
APPLIED DNA SCIENCES INC.
	 	
***
	 
	 	 	 	 	 	 
	By: 	
Kurt Jensen
	 	
By: 
	/s/ ***	 
	 	 	 	 	 	 
	 	Kurt Jensen 	 	 	***	 
	 	 	 	 	 	 
	Printed Name	 	Printed Name	 
	 	 	 	 	 	 
	 	CFO 	 	 	***	 
	 	 	 	 	 	 
	Title 	 	Title 	 

 

 

Confidential 10

 

 

Confidential Treatment

Exhibit A

 

All Inclusive Authentication Mark Fee per Year: $*** per Authentication Mark during the Term of the Agreement

Shipping FOB Stony Brook, New York

Fee Includes:

Creation of unique Authentication Mark

Storage of Authentication Mark,

Protection of Authentication Mark,

Encryption of Authentication Mark

Stabilization of Authentication Mark

Embedment of Authentication Mark in Ink (*** liter maximum)

Up to three Authentications of Printing samples per Mark per customer per year.

Additional Authentications of Printing Samples will be done at a price of $*** per authentication.

Upon termination of the agreement, and provided *** wishes to continue offering the Authentication Service to its Customers after termination of this Agreement, *** will pay APDN an Annual Storage Fee per Mark per year of $***.

Upon termination of this Agreement, Authentications of Printing Samples will be done at a price of $*** per authentication.

 

Confidential 11

 

 

Confidential Treatment

EXHIBIT B

Annual Minimum purchase volumes to retain exclusivity as set forth under section 6.1:

 

	Second Agreement Year: 	*** Litres of DNA Ink/Year
	Third Agreement Year: 	*** Litres of DNA Ink/Year
	Fourth Agreement Year: 	*** Litres of DNA Ink/Year
	Fifth Agreement Year: 	*** Litres of DNA Ink/Year
	All Years after the fifth AgreementYear: 	*** Litres of DNA Ink/Year

 

 

Confidential 12UTC Pension Preservation Plan

 Exhibit 10.3 
 UNITED TECHNOLOGIES CORPORATION 
 PENSION PRESERVATION PLAN 
 AS AMENDED AND RESTATED EFFECTIVE DECEMBER 31, 2009 
 WHEREAS, United Technologies Corporation (the “Corporation”) established the United Technologies Corporation Pension Preservation Plan (the “Preservation Plan”) effective January 1, 1978
for the benefit of certain employees and merged the United Technologies Corporation Pension Replacement Plan (the “Replacement Plan”) into the Preservation Plan, effective December 31, 2006; and 
 WHEREAS, the Corporation reserved the right to amend the Preservation Plan through the action of its Pension Administration and Investment Committee
(the “PAIC”) and/or its Pension Administration Committee (the “PAC”); and 
 WHEREAS, pursuant to a resolution duly
adopted on December 3, 2009, the PAIC approved the amendment of the Preservation Plan for the purpose of conforming the terms of the Plan to the changes to the UTC Employee Retirement Plan; and 
 NOW, THEREFORE, effective December 31, 2009, the Preservation Plan is amended and restated as follows: 
  

	1.	INTRODUCTION & PURPOSE 

 The United
Technologies Corporation Pension Preservation Plan (the “Preservation Plan”) is maintained as an unfunded plan solely for the purpose of providing retirement benefits in excess of the retirement and survivor benefits that may be paid from
tax-qualified retirement plans due to (i) benefit limitations imposed by Section 415 of the Internal Revenue Code of 1986, as amended from time to time (the “Code”) and (ii) the limitation imposed by Section 401(a)(17)
of the Code on compensation that may be taken into account in computing retirement benefits under tax-qualified retirement plans (referred to collectively as the “Limits”). The Preservation Plan restores the amount of the retirement
benefit or survivor benefit that may not be paid from the United Technologies Corporation Employee Retirement Plan (or any other tax-qualified defined benefit retirement plan sponsored by the Corporation) (the “Qualified Retirement Plan”)
as a result of the Limits so that the total actuarial present value of the Qualified Retirement Plan and Pension Preservation Plan benefits equals the actuarial present value of the retirement benefit or survivor benefit that would be paid from the
Qualified Retirement Plan if such Plan were administered without regard to the Limits. Effective with the merger of the Replacement Plan into this Plan, the amount of any reduction of Qualified Plan Retirement benefits resulting from the deferral of
compensation that would otherwise be recognized under the Qualified Retirement Plans shall be provided under this Plan. The Preservation Plan shall be administered and construed to effectuate the foregoing intent. 
  

	2.	EFFECTIVE DATE 

 The Preservation Plan became
effective on January 1, 1978. Except to the extent otherwise specifically provided herein, the Preservation Plan is hereby amended and restated, effective December 31, 2009. The Preservation Plan, as amended and restated, applies to
amounts that were earned or vested after December 31, 2004 under the Preservation and Replacement Plans. Amounts that were earned and vested (within the meaning of Section 409A) under either the Preservation Plan or the Replacement Plan
before January 1, 2005, and any subsequent increases in these amounts that are treated as grandfathered benefits under Section 409A, are subject to and shall continue to be governed by the terms of the Prior Plans as set forth in Appendix
A and Appendix B as applicable. 
 From January 1, 2005 to the present, the Preservation Plan has been operated in good faith
compliance with Section 409A in accordance with guidance provided by the Internal Revenue Service and provided for the following during this good faith compliance period: 
  

	 	(a)	Continued commencement of benefits under this Plan and the Qualified Retirement Plan; 

  

	 	(b)	Allowance of new payment elections by participants to comply with 409A requirements; and 

  

	 	(c)	Prohibited acceleration of any payments that would otherwise have been made in a later year and prohibited deferral to a later year of a payment that would otherwise have been
made in the current year. 

	3.	DEFINITIONS 

 Any capitalized terms used
herein that are not defined in this Section 3 shall have the meanings given to them by the United Technologies Corporation Employee Retirement Plan unless the context clearly indicates otherwise. 
 Beneficiary means the person, persons or entity designated in writing by a Participant to receive the value of his or her Current Plan Benefit
in the event of the Participant’s death, , in accordance with the terms of this Plan. If a Participant fails to designate a Beneficiary under this Plan, the Beneficiary or Contingent Annuitant shall be determined under the Qualified Retirement
Plan. If the Beneficiary (and any contingent Beneficiary) does not survive the Participant or if no Beneficiary is designated under the Qualified Retirement Plan, the value of the Participant’s Plan Benefit will be payable to the estate of the
Participant, in accordance with the terms of this Plan. 
 Compensation Reduction means a reduction in compensation otherwise
recognized under the Qualified Retirement Plan (without regard to the Limits) by reason of a Participant’s participation in the United Technologies Corporation Deferred Compensation Plan. 
 Code means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto. Reference to any section of the Internal
Revenue Code shall include any final regulations or other applicable guidance. 
 Corporation means the United Technologies
Corporation. 
 Current Plan Benefit means amounts credited on or after January 1, 2005 under either the Preservation or
Replacement Plans. 
 Disability means permanent and total disability as determined under the Corporation’s long-term
disability plan applicable to the Participant, or if there is no such plan applicable to the Participant, “Disability” means a determination of total disability by the Social Security Administration; provided that, in either case, the
Participant’s condition also qualifies as a “disability” for purposes of Section 409A(a)(2)(C) of the Code. 
 Election Form means the form provided to Participants electronically or in paper form for the purpose of electing the form of payment for a Current Plan Benefit. 
 Prior Plans means the United Technologies Corporation Pension Preservation Plan, as in effect on December 31, 2004, as set forth in
Appendix A and the United Technologies Corporation Pension Replacement Plan, as in effect on December 31, 2004, as set forth in Appendix B. 
 Prior Preservation Plan means the United Technologies Corporation Pension Preservation Plan, as in effect on December 31, 2004, as set forth in Appendix A. All amounts earned and vested under the Prior
Preservation Plan as of December 31, 2004, and any subsequent increases in these amounts that are permitted to be treated as grandfathered benefits under Section 409A, shall continue to be subject to the terms and conditions of the Prior
Preservation Plan and shall not be affected by this amendment and restatement. 
 Prior Replacement Plan means the United
Technologies Corporation Pension Replacement Plan, as in effect on December 31, 2004, as set forth in Appendix B. All amounts earned and vested under the Prior Replacement Plan as of December 31, 2004, and any subsequent increases in these
amounts that are permitted to be treated as grandfathered benefits under Section 409A, shall continue to be subject to the terms and conditions of the Prior Replacement Plan and shall not be affected by this amendment and restatement.

 Prior Plan Benefit means the aggregate value of the Prior Preservation Plan Benefit and Prior Replacement Plan Benefit as
identified in Section 6, which are valued and administered separately in accordance with the terms and procedures in effect under the Prior Plans. 
 Qualified Retirement Plan means the United Technologies Corporation Employee Retirement Plan (or any other tax-qualified defined benefit retirement plan sponsored by the Corporation or a UTC Company).

 Separation from Service means a Participant’s Termination of Employment with all UTC Companies, other than by reason of
death. A Separation from Service will be deemed to occur where the Participant and the UTC Company that employs the Participant reasonably anticipate that the bona fide level of services the Participant will perform (whether as

  

 -2- 

 
an employee or as an independent contractor) will be permanently reduced to a level that is less than thirty-seven and a half percent (37.5%) of the average level of bona fide services the
Participant performed during the immediately preceding 36 months (or the entire period the Participant has provided services if the Participant has been providing services to the UTC Companies for less than 36 months.) A Participant shall not be
considered to have had a Separation from Service as a result of a transfer from one UTC Company to another UTC Company. 
 Specified Employee means each of the fifty (50) highest-paid officers and other executives of the Corporation and its Subsidiaries, effective annually as of April 1st, based on wages subject to federal income tax withholding, and amounts that are excluded from taxable income by the
employee’s election to make pre-tax contributions under a cafeteria plan, section 401(k) plan, or similar plan, determined for the preceding calendar year as provided in Treas. Reg. § 1.415(c)-2(d)(3). The term includes both U.S.
and non-U.S. employees, and the compensation used to determine whether an employee is among the fifty (50) highest-paid officers and other executives shall be determined by treating non-U.S. compensation as if it had been earned in the U.S. by
a U.S. citizen. 
 UTC Company means United Technologies Corporation or any entity controlled by or under common control with
United Technologies Corporation within the meaning of Section 414(b) or (c) of the Code (but substituting “at least 20 percent” for “at least 80 percent” as the control threshold used in applying Sections 414(b) and
(c)). 
  

	4.	ELIGIBILITY 

 Each employee of a UTC Company
who is a Participant in the Qualified Retirement Plan shall be eligible to participate in the Preservation Plan if and to the extent such employee’s compensation increases such that the Participant’s Accrued Benefit under the Qualified
Retirement Plan is limited by (i) provisions of the Qualified Retirement Plan that are designed solely to comply with the Limits; or (ii) such employee experiences a Compensation Reduction. In no event shall any person who is not entitled
to benefits under the Qualified Retirement Plan be eligible for retirement benefits or survivor benefits under this Preservation Plan. An employee of the UTC Companies who is eligible for retirement benefits under the Preservation Plan and has
completed three years of “Continuous Service” (as defined in the UTC Employee Retirement Plan as in effect on January 1, 2008) shall be referred to herein as a “Participant.” 
  

	5.	DETERMINATION OF PRESERVATION PLAN BENEFIT 

 The amount of the retirement benefit or survivor benefit payable from the Preservation Plan to or in respect of a Participant shall equal the excess, if any, of (a) over (b), and for purposes of this calculation, it shall be assumed
that Qualified Retirement Plan Benefit and Preservation Plan Benefit commence at the same time, where 
  

	 	(a)	equals the retirement benefit or survivor benefit that would be paid to such Participant (or on his or her behalf to his Contingent Annuitant or Beneficiary) under the Qualified
Retirement Plan if the provisions of the Qualified Retirement Plan were administered without regard to the Limits and Compensation Reduction; and 

  

	 	(b)	equals the retirement benefit or survivor benefit payable to such Participant (or on his or her behalf to his or her Contingent Annuitant or Beneficiary) under the Qualified
Retirement Plan. 

  

	6.	PLAN BENEFITS 

  

	 	(a)	Prior Plan Benefit. Benefits accrued under the Prior Plan are not intended to be subject to Section 409A of the Code. No amendment to Appendix A or Appendix B that would
constitute a “material modification” for purposes of Section 409A shall be effective unless the amending instrument states that it is intended to materially modify Appendix A and/or Appendix B and to cause the Prior Plan(s) to become
subject to Section 409A. Although the Prior Plan Benefit is not intended to be subject to Section 409A, neither the UTC Companies nor any director, officer, or other representative of a UTC Company shall be liable for any adverse tax
consequence suffered by a Participant or Beneficiary if a Prior Plan Benefit becomes subject to Section 409A. 

  

	 	(i)	Prior Preservation Plan Benefit 

 Amounts that were credited before January 1, 2005, and any subsequent increases in these amounts that are permitted to be treated as grandfathered benefits under Section 409A of the Code, shall be maintained and accounted for
separately and shall remain subject to the terms and conditions of the Prior Plan, as set forth in Appendix A. 
  

 -3- 

	 	(ii)	Prior Replacement Plan Benefit 

 Amounts that were credited before January 1, 2005, and any subsequent increases in these amounts that are permitted to be treated as grandfathered benefits under Section 409A of the Code, shall be maintained and accounted for
separately and shall remain subject to the terms and conditions of the Prior Plan, as set forth in Appendix B. 
  

	 	(b)	Current Plan Benefit. Current Plan Benefit shall include amounts credited to Participants under either the Preservation or Replacement Plans on or after January 1, 2005.

  

	 	(c)	Sunset of Final Average Earnings Formula Plan Benefit. The determination of benefits payable under Section 5 of this Plan (“Determination of Preservation Plan
Benefit”) shall be done in accordance with the applicable terms and provisions of the Qualified Retirement Plan, including the amendment to such Plan that provides for the elimination of the Final Average Earnings Formula and related credited
service and compensation determination provisions, effective December 31, 2014. 

  

	7.	FORM OF PRESERVATION PLAN BENEFIT 

  

	 	(a)	The Committee shall determine, as of the earlier of the Participant’s Separation from Service or the Participant’s date of death, that portion of the Participant’s
total retirement benefit or survivor benefit that is to be paid under the Preservation Plan, using the same formula that is used under the UTC Employee Retirement Plan to calculate such Participant’s benefit. The Committee will apply either the
Final Average Earnings (FAE) formula, Cash Balance (CB) formula, or both as applicable to each Participant under the Qualified Retirement Plan. The Preservation Plan retirement benefit or survivor benefit shall be paid to the Participant, or on his
or her behalf to any Contingent Annuitant or Beneficiary (as designated under the Qualified Retirement Plan), as a monthly annuity, unless a timely election is made in accordance with Subparagraph (c) of this Section 7.

  

	 	(b)	A Participant may elect separate payment methods for Prior and Current Plan Benefits. Prior Plan Benefit elections are administered separately in accordance with the terms and
procedures in effect under the Prior Plans, as set forth in Appendices A and B. 

  

	 	(c)	Unless a Participant elects a form of the benefit payment for Current Plan Benefit, benefits earned under the Preservation Plan will be paid as a single life annuity or
actuarially equivalent life annuity. A Participant may elect to receive a single lump-sum payment or a series of 2 to 10 annual installment payments. A payment election under the Plan shall be made on an electronic or written Election Form,
completed and submitted to the UTC Pension Service Center no later than December 31st of the calendar year prior to the year in which the period of service commences on which the benefit is based. A change in actuarially equivalent annuities
shall not be deemed to be a change in payment election for purposes of this Plan. Except as provided below in Subsection (d), a Participant’s payment election shall become irrevocable on the election deadline date. 

  

	 	(d)	Change in Payment Election. A Participant may make an election to change the form of payment that the Participant elected under Section 7(c), subject to the following
requirements: 

  

	 	(i)	The new election must be made at least twelve months prior to the date payments are scheduled to commence (and the new election shall be ineffective if the payment commencement
date occurs within twelve months after the date of the new election); 

  

	 	(ii)	The new election will not take effect until at least twelve months after the date when the Participant submits a new Election Form to the UTC Pension Service Center; and

  

	 	(iii)	The new benefit payment commencement date must be five years later than the date on which payments commence under the current election. 

  

	 	(e)	If a Participant’s benefit is calculated under the FAE formula and the Participant elects to have his or her Preservation Plan benefit paid in the form of a single lump-sum
or annual installment distribution, the Actuarially Equivalent present value of the Preservation Plan retirement benefit or survivor benefit shall be determined using the RP-2000 Group Annuity Mortality Table and interest assumption equal to the
average yield for tax-free municipal bonds of 10-year maturities, averaged over the prior 5 calendar years. For purposes of computing this interest assumption, the Actuary shall utilize the Barclays Capital 10-Year Municipal Bond Index, averaging
the published yield for 10-year maturities (credit quality AA or above) on the last business day of the year over the most recent 5 consecutive full calendar year period. This rate shall be adjusted annually at the beginning of each calendar year.

  

 -4- 

	 	(f)	The payment of a monthly annuity, lump-sum or annual installment distribution in accordance with this Section 7 shall be in full satisfaction of all of the
Corporation’s obligations with respect to the Participant under the Preservation Plan. 

  

	8.	DISTRIBUTION OF BENEFIT 

  

	 	(a)	Except as provided in Section 7(d) (concerning the five-year delay following a Change in Payment Election), Section 8(b) (concerning distributions to Specified
Employees), the value of a Participant’s Preservation Plan Benefit will be distributed (or begin to be distributed) to the Participant as follows: 

  

	 	(i)	If a Participant’s benefit is calculated under the FAE formula only, the benefit will be paid to Participant on the first of the month following the later of a
Participant’s Separation from Service, or when the Participant reaches age 55; 

  

	 	(ii)	If a Participant’s benefit is calculated under the CB formula only, the benefit will be paid to Participant on the first of the month following the Participant’s
Separation from Service; 

  

	 	(iii)	If a Participant’s benefit is calculated under both the FAE and CB formulas, the benefit will be paid to the Participant according to the rules outlined above in Subsections
(i) and (ii) for the corresponding portions of the benefit. 

  

	 	(b)	Separation from Service of Specified Employees. If the Participant is a Specified Employee on the date of the Participant’s Separation from Service, distribution of the
Participant’s Current Plan Benefit to the Participant that is made on account of the Participant’s Separation from Service will not be made or commence earlier than the first day of the seventh month following the date of Separation from
Service. 

  

	 	(c)	Administrative Adjustments in Payment Date. A payment is treated as being made on the date when it is due under the Plan if the payment is made on the due date specified by the
Plan, or on a later date that is either (i) in the same calendar year (for a payment whose specified due date is on or before September 30), or (ii) by the 15th day of the third calendar month following the date specified by the Plan
(for a payment whose specified due date is on or after October 1). A payment also is treated as being made on the date when it is due under the Plan if the payment is made not more than 30 days before the due date specified by the Plan. In no
event, will a payment to a Specified Employee be made or commence earlier than the first day of the seventh month following the date of Separation from Service. A Participant may not, directly or indirectly, designate the taxable year of a payment
made in reliance on the administrative rules in this Section 8(c). 

  

	9.	DISTRIBUTION IN THE EVENT OF DEATH 

  

	 	(a)	If a Participant’s benefit (or portion of a benefit) is calculated under the FAE formula and the Participant has not made an election to receive his or her Pension
Preservation Plan Benefit in a lump sum or installments as of the date of death, any survivor benefits will be paid as a life annuity subject to the following: 

  

	 	(i)	If death occurs prior to age 55 with five years of service, the spouse of the Participant shall receive a 50% Contingent Annuity Benefit beginning on the date the Participant
would have attained his or her 55th birthday. If the Participant is unmarried, no Plan benefit is payable. 

  

	 	(ii)	If death occurs prior to age 55 with ten years of service, the spouse of the Participant shall receive a 100% Contingent Annuity Benefit beginning on the date the Participant
would have attained his or her 55th birthday. If the Participant is unmarried, no Plan benefit is payable. 

  

	 	(iii)	If death occurs on or after attainment of age 55 with ten years of service or attainment of age 65, survivor benefits shall be paid as a 100% Contingent Annuity Benefit beginning
on the first business day of the month following the Participant’s death in the following order: 

  

	 	(1)	to the Spouse of the Participant, if the Participant is married at the time of death; 

  

	 	(2)	to the named Beneficiary or contingent annuitant, if the Participant is not married at the time of death; 

  

	 	(3)	to the children of the Participant if the Participant has not designated a Beneficiary prior to his or her death; or 

  

	 	(4)	to the estate of the Participant, if the Participant has no children at the time of his or her death. 

  

 -5- 

 If the Participant is not married at the time of death and the Participant has not designated a
Beneficiary or contingent annuitant, the benefit shall be payable as: 
  

	 	(1)	a 10-year certain actuarially equivalent annuity to the children of the Participant; or 

  

	 	(2)	a 5-year certain actuarially equivalent annuity to the estate of the Participant. 

  

	 	(b)	If a Participant’s benefit (or portion of a benefit) is calculated under the FAE formula and the Participant has made an election to receive his or her Preservation Plan
Benefit in a lump sum or annual installments in accordance with Section 7(c) herein, such Participant shall have survivor benefits paid to his or her Beneficiary as follows: If death occurs prior to age 55, the Preservation Plan accrued benefit
shall be paid in a lump sum payment as of the date the Participant would have attained his or her 55th birthday. If death occurs after the benefit commencement date but before all annual installments have been paid, the remaining installments will
be paid to his or her Beneficiary as scheduled. 

  

	 	(c)	If a Participant’s benefit (or portion of a benefit) is calculated under the CB formula, the Participant shall have survivor benefits paid in a lump sum on the first
business day of the month following the Participant’s death as follows: 

  

	 	(i)	to the Spouse of the Participant, if the Participant is married at the time of death; 

  

	 	(ii)	to the named Beneficiary or contingent annuitant, if the Participant is not married at the time of death; 

  

	 	(iii)	to the children of the Participant if the Participant has not designated a Beneficiary prior to his or her death; or 

  

	 	(iv)	to the estate of the Participant, if the Participant has no children at the time of his or her death. 

  

	10.	DISABILITY 

 In the event of the Disability of
a Participant, the Participant’s Plan Benefit will be maintained and distributed in accordance with the terms of the Plan and the Participant’s elections on file. 
  

	11.	MINIMUM BALANCE PAYOUT PROVISION 

 If the
value of a Participant’s Current Plan Benefit, determined at the time of the Participant’s Separation From Service is less than one-hundred thousand dollars ($100,000), the Committee will distribute the Participant’s entire Current
Plan Benefit in a lump sum on the first business day following the Participant’s Separation From Service, notwithstanding a Participant’s election to receive a different form of distribution. 
  

	12.	FUNDING 

 The Preservation Plan shall be
maintained as an unfunded Plan that is not intended to meet the qualification requirements of Section 401 of the Code. Except in the event of a Change in Control of the Corporation (as described in Section 13 hereof), all benefits under
the Preservation Plan shall be payable solely from the general assets of the Corporation. In this regard, the rights of each Participant, Contingent Annuitant and Beneficiary under the Preservation Plan with respect to his or her Preservation Plan
retirement benefit or survivor benefit shall be those of a general unsecured creditor of the Corporation. No Participant, Contingent Annuitant or Beneficiary hereunder shall be entitled to receive any benefits payable under the Preservation Plan
from the assets of the Qualified Retirement Plan, nor shall the Corporation undertake to set aside assets in trust or otherwise segregate assets to fund its obligations under the Preservation Plan except as provided in Section 13 hereof.

  

	13.	CHANGE OF CONTROL 

 In the event of a Change
of Control of the Corporation, the Corporation shall immediately fully fund the value of all Accrued Benefit under the Preservation Plan, determined by the Actuary as of the date of the Change of Control, provided the funding is not proximate to a
downturn in the Corporation’s financial health within the meaning of Treas. Reg. Section 1.409A-3(j)(4)(ix)(C)(1). The required proceeds will be contributed to the United Technologies Corporation Pension Preservation Plan Retirement
Security Trust, a rabbi trust, and such proceeds will be held and maintained in the United States. In addition, if the United Technologies Corporation Board of Directors Committee on Compensation and Executive Development takes any action under the
United Technologies Corporation Long Term Incentive Plan (the “LTIP”), including, without limitation, the accelerated vesting or other adjustment to outstanding LTIP awards in

  

 -6- 

 
anticipation of (i) a Change of Control (ii) an event, which if consummated, would constitute a Change of Control or (iii) any other significant change pertaining to the ownership
of the Corporation, the Corporation shall then also immediately fund the United Technologies Corporation Pension Preservation Plan Retirement Security Trust, a rabbi trust, provided the funding is not proximate to a downturn in the
Corporation’s financial health within the meaning of Treas. Reg. Section 1.409A-3(j)(4)(ix)(C)(1); and further provided such funds are held and maintained in the United States. For purposes of this Section 13, “Change of
Control” shall have the meaning given to that term under the LTIP. 
  

	14.	NONASSIGNABILITY 

 No Participant, Contingent
Annuitant or Beneficiary or any other person shall have the right to sell, assign, transfer, pledge, or otherwise encumber any interest in the Preservation Plan. All Preservation Plan benefits are unassignable and non-transferable and shall not be
subject to attachment or seizure for the payment of any debts, judgments or other obligations. No Preservation Plan interest shall be transferred by operation of law in the event of the bankruptcy or insolvency of a Participant, Contingent
Annuitant, or Beneficiary. 
  

	15.	NO CONTRACT OF EMPLOYMENT 

 Participation in
the Preservation Plan shall not be construed to constitute a direct or indirect contract of employment between the Corporation and the Participant. Nothing in the Preservation Plan shall be deemed to give a Participant the right to be retained in
the service of the Corporation for any length of time. Participants, Contingent Annuitants and Beneficiaries shall have no rights against the Corporation resulting from participation in the Preservation Plan other than as specifically provided
herein. 
  

	16.	OPERATION AND ADMINISTRATION 

 The
Preservation Plan shall be administered by the Pension Administration and Investment Committee of United Technologies Corporation (the “Committee”). The Committee shall have the right to delegate its responsibilities hereunder to
sub-committees and individuals. Any question of administration or interpretation arising under the Preservation Plan shall be determined by the Committee (or its delegate) in its full discretion, and its decision shall be final and binding upon all
parties. 
  

	17.	TAXES/WITHHOLDING 

 The Corporation shall have
the right to withhold taxes from Preservation Plan benefit accruals and payments to the extent it reasonably determines such withholding to be required by law to be withheld from such credits and payments. 
  

	18.	GOVERNING LAW 

 The Preservation Plan shall be
construed, administered and enforced in accordance with the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and to the extent not preempted thereby, the laws of the State of Connecticut (disregarding its
choice-of-law rules). 
  

	19.	AMENDMENT AND TERMINATION 

  

	 	(a)	The Corporation expects to continue the Preservation Plan indefinitely, but reserves the right, by action of the Committee, to amend or terminate the Preservation Plan at any
time, provided, however, that no such action shall decrease any benefits accrued under the Preservation Plan as of the date of such action. Although the benefits accrued under the Preservation Plan are not subject to the restrictions imposed by
Section 204(g) of ERISA, the proviso in the preceding sentence shall be construed in a manner consistent with Section 204(g) of ERISA. As a result, the proviso referred to in the preceding sentence imposes restrictions identical with the
restrictions that would be imposed on the Preservation Plan if the Preservation Plan were subject to Section 204(g) of ERISA. 

  

	 	(b)	 Upon the termination of the Plan with respect to all Participants, and termination of all arrangements sponsored by the Corporation or its affiliates that would
be aggregated with the Plan under Section 409A of the Code, the Corporation shall have the right, in its sole discretion, and notwithstanding any elections made by the Participant, to pay the Participant’s vested Benefit in a lump sum, to
the extent permitted under Section 409A. All payments that may be made pursuant to this Section 19(b) shall be made no earlier than the thirteenth month and no later than the twenty-fourth month after the termination of the Plan. The
Corporation may not

  

 -7- 

	 	 
accelerate payments pursuant to this Section 19(b) if the termination of the Plan is proximate to a downturn in the Corporation’s financial health within the meaning of Treas. Reg.
Section 1.409A-3(j)(4)(ix)(C)(1). If the Corporation exercises its discretion to accelerate payments under this Section 19(b), it shall not adopt any new arrangement that would have been aggregated with this Plan under Section 409A
within three years following the date of the Plan’s termination. 

  

	20.	COMPLIANCE WITH SECTION 409A 

 To the extent
that rights or payments under this Plan are subject to Section 409A of the Internal Revenue Code, the Preservation Plan shall be construed and administered in compliance with the conditions of Section 409A and regulations and other
guidance issued pursuant to Section 409A for deferral of income taxation until the time the compensation is paid. Any distribution election that would not comply with Section 409A of the Code shall not be effective for purposes of this
Plan. To the extent that a provision of this Plan does not comply with Section 409A of the Code, such provision shall be void and without effect. The Corporation does not warrant that the Preservation Plan will comply with Section 409A of
the Code with respect to any Participant or with respect to any payment. In no event shall a UTC Company; any director, officer, or employee of a UTC Company (other than the Participant); or any member of the Committee be liable for any additional
tax, interest, or penalty incurred by a Participant or Beneficiary as a result of the Preservation Plan’s failure to satisfy the requirements of Section 409A of the Code, or as a result of the Plan’s failure to satisfy any other
requirements of applicable tax laws. 
  

	21.	SUCCESSORS 

 The provisions of the
Preservation Plan shall bind and inure to the benefit of the Corporation, and its successors and assigns. The term successors shall include any corporate or other business entity that by merger, consolidation, purchase or otherwise acquires all or
substantially all of the business and assets of the Corporation and successors of any such Corporation or other entity. 
  

	22.	BENEFIT CLAIMS PROCEDURE 

  

	 	(a)	The Committee shall establish and communicate procedures for Participants to obtain forms required to effect elections and designations under the Plan. The Committee may
establish a telephonic communication system to facilitate the administration of the Plan and to provide information to Participants, provided that any estimate of a Participant’s current or projected accrued benefit shall in no event be binding
on the Committee in the event of any discrepancy between such estimate and a Participant’s actual accrued benefit, which, in all cases, shall control. Upon notification of the death of any Participant while in the employment of the Employer,
the Committee may initiate any claim on behalf of the Spouse, Contingent Annuitant, or Beneficiary. 

  

	 	(b)	A Participant or Beneficiary who believes that he or she has been denied a benefit to which he or she is entitled under the Plan (referred to in this Section 22 as a
“Claimant”) may file a written request with the Committee setting forth the claim. The Committee shall consider and resolve the claim as set forth below. 

  

	 	(i)	Upon receipt of a claim, the Committee or its designated agent shall advise the Claimant that a response will be forthcoming within 90 days. The Committee may, however, extend
the response period for up to an additional 90 days for reasonable cause, and shall notify the Claimant of the reason for the extension and the expected response date. The Committee or its designated agent shall respond to the claim within the
specified period. 

  

	 	(ii)	If the claim is denied in whole or part, the Committee shall provide the Claimant with a written decision, using language calculated to be understood by the Claimant, setting
forth (1) the specific reason or reasons for such denial; (2) the specific reference to relevant provisions of this Plan on which such denial is based; (3) a description of any additional material or information necessary for the
Claimant to perfect his or her claim and an explanation why such material or such information is necessary; (4) appropriate information as to the steps to be taken if the Claimant wishes to submit the claim for review; (5) the time limits
for requesting a review of the claim; and (6) the Claimant’s right to bring an action for benefits under Section 502(a) of ERISA. 

  

	 	(iii)	 Within 60 days after the Claimant’s receipt of the written decision denying the claim in whole or in part, the Claimant may request a review of such
determination by filing a notice of appeal in writing with the Benefit Claims Appeal Committee (the “Benefits Appeal Committee”). Such notice must set forth all relevant

  

 -8- 

	 	 
factors upon which the appeal is based. The Claimant or his or her duly authorized representative may, but need not, review the relevant documents and submit issues and comment in writing for
consideration by the Benefits Appeal Committee. If the Claimant does not request a review of the initial determination within such 60-day period, the Claimant shall be barred from challenging the determination. 

  

	 	(iv)	Within 60 days after the Benefits Appeal Committee receives a request for review, it will review the initial determination. If special circumstances require that the 60-day time
period be extended, the Benefits Appeal Committee will so notify the Claimant and will render the decision as soon as possible, but no later than 120 days after receipt of the request for review. 

  

	 	(v)	The Benefits Appeal Committee shall have the greatest discretion permitted by law in making decisions pursuant to this Section 22. All decisions on review shall be final and
binding with respect to all concerned parties. The decision on review shall set forth, in a manner calculated to be understood by the Claimant, (1) the specific reasons for the decision, including references to the relevant Plan provisions upon
which the decision is based; (2) the Claimant’s right to receive, upon request and free of charge, reasonable access to and copies of all documents, records, and other information, relevant to his or her benefits; and (3) the
Claimant’s right to bring an action for benefits under Section 502(a) of ERISA. 

 Appendix A 
 This Appendix A sets forth the United Technologies Corporation Pension Preservation Plan, as in effect on December 31, 2004
(“Prior Preservation Plan”), and as modified thereafter from time to time in a manner that does not constitute a “material modification” for purposes of Section 409A. Amounts that were earned and vested (within the meaning
of Section 409A) prior to January 1, 2005, and any subsequent increases in these amounts that are permitted to be treated as grandfathered benefits under Section 409A, are generally subject to and shall continue to be governed by the
terms of this Prior Preservation Plan. 
 UNITED TECHNOLOGIES CORPORATION 
 PENSION PRESERVATION PLAN 
 AS AMENDED AND RESTATED EFFECTIVE JANUARY 1,
1996 
  

	1.	INTRODUCTION & PURPOSE 

 The United
Technologies Corporation Pension Preservation Plan (the “Preservation Plan”) is maintained as an unfunded plan solely for the purpose of providing retirement benefits in excess of the retirement and survivor benefits that may be paid from
tax-qualified retirement plans due to (i) benefit limitations imposed by Section 415 of the Internal Revenue Code of 1986, as amended from time to time (the “Code”) and (ii) the limitation imposed by Section 401(a)(17)
of the Code on compensation that may be taken into account in computing retirement benefits under tax-qualified retirement plans (referred to collectively as the “Limits”). The Preservation Plan restores the amount of the retirement
benefit or survivor benefit that is not paid from the United Technologies Corporation Employee Retirement Plan (or any other tax-qualified defined benefit retirement plan sponsored by the Corporation) (the “Qualified Retirement Plan”) as a
result of the Limits so that the total actuarial present value of the Qualified Retirement Plan and Pension Preservation Plan benefits equals the actuarial present value of the retirement benefit or survivor benefit that would be paid from the
Qualified Retirement Plan if such Plan were administered without regard to the Limits. The Preservation Plan shall be administered and construed to effectuate the foregoing intent. 
 The capitalized terms used herein shall have the meanings given to them by the United Technologies Corporation Employee Retirement Plan unless the
context clearly indicates otherwise. 
  

	2.	EFFECTIVE DATE 

 The Preservation Plan became
effective on January 1, 1978. This amendment and restatement of the Preservation Plan shall be effective January 1, 1996, except to the extent otherwise specifically provided herein. 
  

 -9- 

	3.	ELIGIBILITY 

 An employee of United
Technologies Corporation (the “Corporation”) or an affiliate thereof who is a Participant in the Qualified Retirement Plan shall be eligible to participate in the Preservation Plan if and to the extent the Participant’s Accrued
Benefit under the Qualified Retirement Plan is reduced or limited by provisions of the Qualified Retirement Plan that are designed solely to comply with the Limits. In no event shall any person who is not entitled to benefits under the Qualified
Retirement Plan be eligible for retirement benefits or survivor benefits under the Preservation Plan. An employee of the Corporation or an affiliate thereof who is eligible for retirement benefits under the Preservation Plan shall be referred to
herein as a “Participant.” 
  

	4.	DETERMINATION OF PRESERVATION PLAN BENEFIT 

 The amount of the retirement benefit or survivor benefit payable from the Preservation Plan to or in respect of a Participant shall equal the excess, if any, of (a) over (b), where 
  

	 	(a)	equals the retirement benefit or survivor benefit that would be paid to such Participant (or on his or her behalf to his Contingent Annuitant or Beneficiary) under the Qualified
Retirement Plan if the provisions of the Qualified Retirement Plan were administered without regard to the Limits; and 

  

	 	(b)	equals the retirement benefit or survivor benefit payable to such Participant (or on his or her behalf to his or her Contingent Annuitant or Beneficiary) under the Qualified
Retirement Plan. 

  

	5.	FORM OF PRESERVATION PLAN BENEFIT 

  

	 	(a)	The Plan Administrator shall determine, as of the earlier of the Participant’s Retirement Date or the Participant’s date of death, that portion of the
Participant’s total retirement benefit or survivor benefit that is to be paid under the Preservation Plan. The Preservation Plan retirement benefit or survivor benefit shall be paid to the Participant, or on his or her behalf to any Contingent
Annuitant or Beneficiary (as designated under the Qualified Retirement Plan), in the form of distribution that applies to the benefit payments made to, or on behalf of, the Participant under the Qualified Retirement Plan unless the Participant has
made a timely election to receive his or her Preservation Plan retirement benefit in a single lump-sum payment or in a series of 2 to 10 annual installment payments in accordance with this Section 5. 

  

	 	(b)	If— 

  

	 	(i)	the Participant qualifies for an Early Retirement Annuity or a Normal Retirement Annuity or satisfies the Rule of 65 under Section 5.4 of the United Technologies Corporation
Employee Retirement Plan (or dies after qualifying for an Early Retirement Annuity or a Normal Retirement Annuity or satisfying such Rule of 65, but before the date as of which retirement benefits under the Qualified Retirement Plan are scheduled to
begin), and 

  

	 	(ii)	terminates, or retires from, employment with the Corporation and its affiliates after December 31, 1995, 

 the Participant may elect, in accordance with Section 5(c) hereof, to have his or her Preservation Plan retirement benefit or survivor benefit
paid in a lump-sum or in annual installments, payable (or commencing) as of the Participant’s Retirement Date. Subject to the provisions of Section 5(c) hereof, a Participant may revoke any such election at any time. A Participant shall
have no right under the Preservation Plan to have his or her Qualified Retirement Plan benefit paid in a lump sum or in annual installments. Distributions from the Qualified Retirement Plan shall be governed solely by the terms of the Qualified
Retirement Plan. 
  

	 	(c)	An election to have a lump-sum or installment distribution paid pursuant to Section 5(b) hereof (or a revocation of any such election) shall be disregarded unless it is
filed at least one year before the Participant’s Retirement Date (or, if earlier, the first day of the month next following the Participant’s date of death), except that 

  

	 	(i)	If such an election or revocation is filed on or before October 30, 1996, the election or revocation shall be given effect only if the Participant consents to a distribution
(or the commencement of distributions) under the Preservation Plan as of a date occurring on or after January 1, 1997; and 

  

	 	(ii)	If such an election or revocation is filed on or after November 1, 1996, and on or before December 31, 1996, the election or revocation shall be given effect only if
the Participant consents to a distribution (or the commencement of distributions) under the Preservation Plan as of a date occurring on or after April 1, 1997. 

  

 -10- 

	 	(d)	If a Participant elects to have his or her Preservation Plan benefit paid in the form of a single lump-sum or annual installment distribution, the Actuarially Equivalent present
value of the Preservation Plan retirement benefit or survivor benefit shall be determined using the 1983 Group Annuity Mortality Table and an interest assumption equal to the average yield for tax-free municipal bonds of 10-year maturities, averaged
over the prior 5 calendar years. For purposes of computing this interest assumption, the Actuary shall utilize the Lehman Bros. Municipal Bond Index, averaging the published yield for 10-year maturities (credit quality AA or above) on the last
business day of the year over the most recent 5 consecutive full calendar year period. This rate shall be adjusted annually at the beginning of each calendar year. 

  

	 	(e)	The payment of a lump-sum or annual installment distribution in accordance with this Section 5 shall be in full satisfaction of all of the Corporation’s obligations
with respect to the Participant under the Preservation Plan. 

  

	6.	DEATH BENEFITS 

 A Participant who has made an
election to receive Pension Preservation Plan benefits in a lump sum or annual installments in accordance with Section 5 herein shall have survivor benefits paid to his or her Pension Preservation Plan beneficiary as follows. If death occurs
prior to age 55, the Pension Preservation Plan accrued benefit shall be paid in a lump sum payment as of the date the Participant would have attained his or her 55th birthday. If death occurs after retirement but before all annual installments have
been paid, the remaining installments will be paid to his or her Beneficiary as scheduled unless the estate of the Participant is the Beneficiary in which case the commuted value of the remaining payments will be paid in a lump sum. 
 If no election to receive Pension Preservation Plan benefits in a lump sum or installments is in effect as of the date of death, any survivor benefits
will be paid in accordance with the distribution option in effect and to the Beneficiary or Contingent Annuitant designated under the Qualified Retirement Plan. 
  

	7.	FUNDING 

 The Preservation Plan shall be
maintained as an unfunded Plan that is not intended to meet the qualification requirements of Section 401 of the Code. Except in the event of a Change in Control of the Corporation (as described in Section 7 hereof), all benefits under the
Preservation Plan shall be payable solely from the general assets of the Corporation. In this regard, the rights of each Participant, Contingent Annuitant and Beneficiary under the Preservation Plan with respect to his or her Preservation Plan
retirement benefit or survivor benefit shall be those of a general unsecured creditor of the Corporation. No Participant, Contingent Annuitant or Beneficiary hereunder shall be entitled to receive any benefits payable under the Preservation Plan
from the assets of the Qualified Retirement Plan, nor shall the Corporation undertake to set aside assets in trust or otherwise segregate assets to fund its obligations under the Preservation Plan except as provided in Section 7 hereof.

  

	8.	CHANGE OF CONTROL 

 In the event of a Change
of Control of the Corporation, the Corporation shall immediately fully fund the value of all Accrued Benefits under the Preservation Plan, determined by the Actuary as of the date of the Change of Control. The required proceeds will be contributed
to the United Technologies Corporation Pension Preservation Plan Retirement Security Trust. In addition, if the United Technologies Corporation Board of Directors Committee on Compensation and Executive Development takes any action under the United
Technologies Corporation Long Term Incentive Plan (the “LTIP”), including, without limitation, the accelerated vesting or other adjustment to outstanding LTIP awards in anticipation of (i) a Change of Control (ii) an event, which
if consummated, would constitute a Change of Control or (iii) any other significant change pertaining to the ownership of the Corporation, the Corporation shall then also immediately fund the United Technologies Corporation Pension Preservation
Plan Retirement Security Trust. For purposes of this Section 7, “Change of Control” shall have the meaning given to that term under the LTIP. 
  

	9.	NONASSIGNABILITY 

 No Participant, Contingent
Annuitant or Beneficiary or any other person shall have the right to sell, assign, transfer, pledge, or otherwise encumber any interest in the Preservation Plan. All Preservation Plan benefits are unassignable and non-transferable and shall not be
subject to attachment or seizure for the payment of any debts, judgments or other obligations. No Preservation Plan interest shall be transferred by operation of law in the event of the bankruptcy or insolvency of a Participant, Contingent
Annuitant, or Beneficiary. 
  

 -11- 

	10.	NO CONTRACT OF EMPLOYMENT 

 Participation in
the Preservation Plan shall not be construed to constitute a direct or indirect contract of employment between the Corporation and the Participant. Nothing in the Preservation Plan shall be deemed to give a Participant the right to be retained in
the service of the Corporation for any length of time. Participants, Contingent Annuitants and Beneficiaries shall have no rights against the Corporation resulting from participation in the Preservation Plan other than as specifically provided
herein. 
  

	11.	OPERATION AND ADMINISTRATION 

 The
Preservation Plan shall be administered by the Pension Administration and Investment Committee of United Technologies Corporation (the “Committee”). The Committee shall have the right to delegate its responsibilities hereunder to
sub-committees and individuals. Any question of administration or interpretation arising under the Preservation Plan shall be determined by the Committee (or its delegate) in its full discretion, and its decision shall be final and binding upon all
parties. 
  

	12.	TAXES/WITHHOLDING 

 The Corporation shall have
the right to withhold taxes from Preservation Plan benefit payments to the extent it reasonably determines such withholding to be required by law. 
  

	13.	GOVERNING LAW 

 The Preservation Plan shall be
construed, administered and enforced in accordance with the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and to the extent not preempted thereby, the laws of the State of Connecticut (disregarding its
choice-of-law rules). 
  

	14.	AMENDMENT AND DISCONTINUANCE 

 The Corporation
expects to continue the Preservation Plan indefinitely, but reserves the right, by action of the Committee, to amend or discontinue the Preservation Plan at any time, provided, however, that no such action shall decrease any benefits accrued under
the Preservation Plan as of the date of such action. Although the benefits accrued under the Preservation Plan are not subject to the restrictions imposed by Section 204(g) of ERISA, the proviso in the preceding sentence shall be construed in a
manner consistent with Section 204(g) of ERISA. As a result, the proviso referred to in the preceding sentence imposes restrictions identical with the restrictions that would be imposed on the Preservation Plan if the Preservation Plan were
subject to Section 204(g) of ERISA. 
  

	15.	SUCCESSORS 

 The provisions of the
Preservation Plan shall bind and inure to the benefit of the Corporation, and its successors and assigns. The term successors shall include any corporate or other business entity that by merger, consolidation, purchase or otherwise acquires all or
substantially all of the business and assets of the Corporation and successors of any such Corporation or other entity. 
  

	16.	BENEFIT CLAIMS PROCEDURE 

  

	 	(a)	The Plan Administrator shall establish and communicate procedures for Participants to obtain forms required to effect elections and designations under the Plan. The Plan
Administrator may establish a telephonic communication system to facilitate the administration of the Plan and to provide information to Participants, provided that any estimate of a Participant’s current or projected accrued benefit shall in
no event be binding on the Plan Administrator in the event of any discrepancy between such estimate and a Participant’s actual Accrued Benefit, which, in all cases, shall control. Upon notification of the death of any Participant while in the
employment of the Employer, the Plan Administrator may initiate any claim on behalf of the Spouse, Contingent Annuitant, or Beneficiary. 

  

	 	(b)	If a claim is denied, the Plan Administrator or its designated agent shall give the claimant notice in writing of such denial, which notice shall set forth (i) the specific
reason(s) for the denial; (ii) specific reference to pertinent Plan provisions on which the denial is based; (iii) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation
of why such materials or information are necessary; and (iv) an explanation of the Plan’s claim review procedure. 

  

 -12- 

	 	(c)	Within 60 days after receipt of the notice of denial described above, the claimant may request a review of such denial by filing a notice of appeal in writing with the Benefit
Claims Appeal Committee (the “Benefits Appeal Committee”). Such notice must set forth all relevant factors upon which the appeal is based. The Benefits Appeal Committee shall decide the issues raised by the appeal, either with or without
holding a hearing, and shall issue to the claimant a written notice setting forth its decision and the reasons for the decision. The Benefits Appeal Committee’s decision shall be made not more than 60 days after it has received the
claimant’s request for review, unless the Benefits Appeal Committee determines that special circumstances require an extension of time and so notifies the claimant, in which case a decision shall be made not more than 120 days after it has
received the request for review. The Benefits Appeal Committee shall have the greatest discretion permitted by law in making decisions pursuant to this Section 16. All interpretations, determinations, and decisions of the Benefits Appeal
Committee in respect of any claim shall be conclusive and binding upon all persons having or claiming to have any interest or right under the Plan. 

 Appendix B 
 This Appendix B sets forth the United Technologies Corporation
Pension Replacement Plan, as in effect on December 31, 2004 (“Prior Replacement Plan”), and as modified thereafter from time to time in a manner that does not constitute a “material modification” for purposes of
Section 409A. Amounts that were earned and vested (within the meaning of Section 409A) prior to January 1, 2005, and any subsequent increases in these amounts that are permitted to be treated as grandfathered benefits under
Section 409A, are generally subject to and shall continue to be governed by the terms of this Prior Replacement Plan. 
 UNITED
TECHNOLOGIES CORPORATION 
 PENSION REPLACEMENT PLAN 
 AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 1996 
  

	1.	INTRODUCTION & PURPOSE 

 The United
Technologies Corporation Pension Replacement Plan (the “Replacement Plan”) is maintained as an unfunded plan solely for the purpose of providing retirement benefits in excess of the retirement and survivor benefits that may be paid from
the United Technologies Corporation Employee Retirement Plan (or any other tax-qualified defined benefit retirement plan sponsored by the Corporation) (the “Qualified Retirement Plan”) and the United Technologies Corporation Pension
Preservation Plan as a result of any reduction in a Participant’s compensation that would otherwise be utilized in computing accrued benefits under such Plans where the reduction results from participation in the Corporation’s Deferred
Compensation Plan. 
 The capitalized terms used herein shall have the meanings given to them by the United Technologies Corporation
Employee Retirement Plan unless the context clearly indicates otherwise. 
  

	2.	EFFECTIVE DATE 

 The Replacement Plan became
effective on April 1, 1985 as the United Technologies Corporation Supplemental Plan, which was subsequently renamed the United Technologies Corporation Pension Replacement Plan. This amendment and restatement of the Replacement Plan shall be
effective January 1, 1996, except to the extent otherwise specifically provided herein. 
  

	3.	ELIGIBILITY 

 An employee of United
Technologies Corporation (the “Corporation”) or an affiliate thereof who is a Participant in the Qualified Retirement Plan and the Pension Preservation Plan (if applicable) shall be eligible to participate in the Replacement Plan if and to
the extent the Participant’s Accrued Benefit under the Qualified Retirement Plan or the Pension Preservation Plan is reduced as a result of participation in the United Technologies Corporation Deferred Compensation Plan or other similar
deferred compensation arrangement if the Corporation authorizes the replacement of pension benefits in such arrangement (the “Deferred Compensation Plan”). In no event shall any person who is not entitled to benefits under the Qualified
Retirement Plan be eligible for retirement benefits or survivor benefits under the Replacement Plan. An employee of the Corporation or an affiliate thereof who is eligible for retirement benefits under the Replacement Plan shall be referred to
herein as a “Participant.” 
  

 -13- 

	4.	DETERMINATION OF REPLACEMENT PLAN BENEFIT 

 The amount of the retirement benefit or survivor benefit payable from the Replacement Plan to or in respect of a Participant shall equal the excess, if any, of (a) over (b), where 
  

	 	(a)	equals the retirement benefit or survivor benefit that would be paid to such Participant (or on his or her behalf to his Contingent Annuitant or Beneficiary) under the Qualified
Retirement Plan and the Pension Preservation Plan if the provisions of such Plans were administered by taking into account any compensation that was deferred under the Deferred Compensation Plan; and 

  

	 	(b)	equals the retirement benefit or survivor benefit payable to such Participant (or on his or her behalf to his or her Contingent Annuitant or Beneficiary) under the Qualified
Retirement Plan and the Pension Preservation Plan. 

  

	5.	FORM OF PRESERVATION PLAN BENEFIT 

  

	 	(a)	The Plan Administrator shall determine, as of the earlier of the Participant’s Retirement Date or the Participant’s date of death, that portion of the
Participant’s total retirement benefit or survivor benefit that is to be paid under the Replacement Plan. The Replacement Plan retirement benefit or survivor benefit shall be paid to the Participant, or on his or her behalf to any Contingent
Annuitant or Beneficiary (as designated under the Qualified Retirement Plan), in the form of distribution that applies to the benefit payments made to, or on behalf of, the Participant under the Qualified Retirement Plan unless the Participant has
made a timely election to receive his or her Replacement Plan retirement benefit in a single lump-sum payment or in a series of 2 to 10 annual installment payments in accordance with this Section 5. 

  

	 	(b)	If— 

  

	 	(i)	the Participant qualifies for an Early Retirement Annuity or a Normal Retirement Annuity or satisfies the Rule of 65 under Section 5.4 of the United Technologies Corporation
Employee Retirement Plan (or dies after qualifying for an Early Retirement Annuity or a Normal Retirement Annuity or satisfying such Rule of 65, but before the date as of which retirement benefits under the Qualified Retirement Plan are scheduled to
begin), and 

  

	 	(ii)	terminates, or retires from, employment with the Corporation and its affiliates after December 31, 1995, 

 the Participant may elect, in accordance with Section 5(c) hereof, to have his or her Replacement Plan retirement benefit or survivor benefit paid
in a lump sum or in annual installments, payable (or commencing) as of the Participant’s Retirement Date. Subject to the provisions of Section 5(c) hereof, a Participant may revoke any such election at any time. A Participant shall have no
right under the Replacement Plan to have his or her Qualified Retirement Plan benefit paid in a lump sum or in annual installments. Distributions from the Qualified Retirement Plan shall be governed solely by the terms of the Qualified Retirement
Plan. 
  

	 	(c)	An election to have a lump-sum or installment distribution paid pursuant to Section 5(b) hereof (or a revocation of any such election) shall be disregarded unless it is
filed at least one year before the Participant’s Retirement Date (or, if earlier, the first day of the month next following the Participant’s date of death), except that 

  

	 	(i)	If such an election or revocation is filed on or before October 30, 1996, the election or revocation shall be given effect only if the Participant consents to a distribution
(or the commencement of distributions) under the Replacement Plan as of a date occurring on or after January 1,1997; and 

  

	 	(ii)	If such an election or revocation is filed on or after November 1, 1996, and on or before December 31, 1996, the election or revocation shall be given effect only if
the Participant consents to a distribution (or the commencement of distributions) under the Replacement Plan as of a date occurring on or after April 1, 1997. 

  

	 	(d)	If a Participant elects to have his or her Replacement Plan benefit paid in the form of a single lump-sum or annual installment distribution, the Actuarially Equivalent present
value of the Replacement Plan retirement benefit or survivor benefit shall be determined using the 1983 Group Annuity Mortality Table and an interest assumption equal to the average yield for tax-free municipal bonds of 10-year maturities, averaged
over the prior 5 calendar years. For purposes of computing this interest assumption, the Actuary shall utilize the Lehman Bros. Municipal Bond Index, averaging the published yield for 10-year maturities (credit quality AA or above) on the last
business day of the year over the most recent 5 consecutive full calendar year period. This rate shall be adjusted annually at the beginning of each calendar year. 

  

 -14- 

	 	(e)	The payment of a lump sum or annual installment distribution in accordance with this Section 5 shall be in full satisfaction of all of the Corporation’s obligations
with respect to the Participant under the Replacement Plan. 

  

	6.	DEATH BENEFITS 

 A Participant who has made an
election to receive Replacement Plan benefits in a lump sum or annual installments in accordance with Section 5 herein and such election is effective as of the date of the Participant’s death shall have survivor benefits paid to his or her
Replacement Plan Beneficiary as follows. If death occurs prior to age 55, the Replacement Plan benefits shall be paid in a lump sum payment as of the date the Participant would have attained his or her 55th birthday. If death occurs after retirement
but before all annual installments have been paid, the remaining installments will be paid to his or her Beneficiary as scheduled unless the estate of the Participant is the Beneficiary in which case the commuted value of the remaining payments will
be paid in a lump sum. 
 If no election to receive Replacement Plan benefits in a lump sum or installments is in effect as of the date of
death, any survivor benefits will be paid in accordance with the distribution option in effect and to the Beneficiary or Contingent Annuitant designated under the Qualified Retirement Plan. 
  

	7.	FUNDING 

 The Replacement Plan shall be
maintained as an unfunded Plan that is not intended to meet the qualification requirements of Section 401 of the Code. Except in the event of a Change in Control of the Corporation (as described in Section 7 hereof), all benefits under the
Replacement Plan shall be payable solely from the general assets of the Corporation. In this regard, the rights of each Participant, Contingent Annuitant and Beneficiary under the Replacement Plan with respect to his or her Preservation Plan
retirement benefit or survivor benefit shall be those of a general unsecured creditor of the Corporation. No Participant, Contingent Annuitant or Beneficiary hereunder shall be entitled to receive any benefits payable under the Replacement Plan from
the assets of the Qualified Retirement Plan, nor shall the Corporation undertake to set aside assets in trust or otherwise segregate assets to fund its obligations under the Replacement Plan except as provided in Section 7 hereof. 

 

	8.	CHANGE OF CONTROL 

 In the event of a Change
of Control of the Corporation, the Corporation shall immediately fully fund the value of all Accrued Benefits under the Replacement Plan, determined by the Actuary as of the date of the Change of Control. The required proceeds will be contributed to
the United Technologies Corporation Pension Replacement Plan Retirement Security Trust. In addition, if the United Technologies Corporation Board of Directors Committee on Compensation and Executive Development takes any action under the United
Technologies Corporation Long Term Incentive Plan (the “LTIP”) including, without limitation, the accelerated vesting or other adjustment to outstanding LTIP awards in anticipation of (i) a Change of Control (ii) an event, which
if consummated, would constitute a Change of Control or (iii) any other significant change pertaining to the ownership of the Corporation, the Corporation shall then also immediately fund the United Technologies Corporation Pension Replacement
Plan Retirement Security Trust. For purposes of this Section 7, “Change of Control” shall have the meaning given to that term under the LTIP. 
  

	9.	NONASSIGNABILITY 

 No Participant, Contingent
Annuitant or Beneficiary or any other person shall have the right to sell, assign, transfer, pledge, or otherwise encumber any interest in the Replacement Plan. All Replacement Plan benefits are unassignable and non-transferable and shall not be
subject to attachment or seizure for the payment of any debts, judgments or other obligations. No Replacement Plan interest shall be transferred by operation of law in the event of the bankruptcy or insolvency of a Participant, Contingent Annuitant,
or Beneficiary. 
  

	10.	NO CONTRACT OF EMPLOYMENT 

 Participation in
the Replacement Plan shall not be construed to constitute a direct or indirect contract of employment between the Corporation and the Participant. Nothing in the Replacement Plan shall be deemed to give a Participant the right to be retained in the
service of the Corporation for any length of time. Participants, Contingent Annuitants and Beneficiaries shall have no rights against the Corporation resulting from participation in the Replacement Plan other than as specifically provided herein.

  

 -15- 

	11.	OPERATION AND ADMINISTRATION 

 The
Replacement Plan shall be administered by the Pension Administration and Investment Committee of United Technologies Corporation (the “Committee”). The Committee shall have the right to delegate its responsibilities hereunder to
sub-committees and individuals. Any question of administration or interpretation arising under the Replacement Plan shall be determined by the Committee (or its delegate) in its full discretion, and its decision shall be final and binding upon all
parties. 
  

	12.	TAXES/WITHHOLDING 

 The Corporation shall have
the right to withhold taxes from Replacement Plan benefit payments to the extent it reasonably determines such withholding to be required by law. 
  

	13.	GOVERNING LAW 

 The Replacement Plan shall be
construed, administered and enforced in accordance with the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and to the extent not preempted thereby, the laws of the State of Connecticut (disregarding its
choice-of-law rules). 
  

	14.	AMENDMENT AND DISCONTINUANCE 

 The Corporation
expects to continue the Replacement Plan indefinitely, but reserves the right, by action of the Committee, to amend or discontinue the Replacement Plan at any time, provided, however, that no such action shall decrease any benefits accrued under the
Replacement Plan as of the date of such action. Although the benefits accrued under the Replacement Plan are not subject to the restrictions imposed by Section 204(g) of ERISA, the proviso in the preceding sentence shall be construed in a
manner consistent with Section 204(g) of ERISA. As a result, the proviso referred to in the preceding sentence imposes restrictions identical with the restrictions that would be imposed on the Replacement Plan if the Replacement Plan were
subject to Section 204(g) of ERISA. 
  

	15.	SUCCESSORS 

 The provisions of the Replacement
Plan shall bind and inure to the benefit of the Corporation, and its successors and assigns. The term successors shall include any corporate or other business entity that by merger, consolidation, purchase or otherwise acquires all or substantially
all of the business and assets of the Corporation, and successors of any such Corporation or other entity. 
  

	16.	BENEFIT CLAIMS PROCEDURE 

  

	 	(a)	The Plan Administrator shall establish and communicate procedures for Participants to obtain forms required to effect elections and designations under the Plan. The Plan
Administrator may establish a telephonic communication system to facilitate the administration of the Plan and to provide information to Participants, provided that any estimate of a Participant’s current or projected accrued benefit shall in
no event be binding on the Plan Administrator in the event of any discrepancy between such estimate and a Participant’s actual Accrued Benefit, which, in all cases, shall control. Upon notification of the death of any Participant while in the
employment of the Employer, the Plan Administrator may initiate any claim on behalf of the Spouse, Contingent Annuitant, or Beneficiary. 

  

	 	(b)	If a claim is denied, the Plan Administrator or its designated agent shall give the claimant notice in writing of such denial, which notice shall set forth (i) the specific
reason(s) for the denial; (ii) specific reference to pertinent Plan provisions on which the denial is based; (iii) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation
of why such materials or information are necessary; and (iv) an explanation of the Plan’s claim review procedure. 

  

	 	(c)	 Within 60 days after receipt of the notice of denial described above, the claimant may request a review of such denial by filing a notice of appeal in writing
with the Benefit Claims Appeal Committee (the “Benefits Appeal Committee”). Such notice must set forth all relevant factors upon which the appeal is based. The Benefits Appeal Committee shall decide the issues raised by the appeal, either
with or without holding a hearing, and shall issue to the claimant a written notice setting forth its decision and the reasons for the decision. The

  

 -16- 

	 	 
Benefits Appeal Committee’s decision shall be made not more than 60 days after it has received the claimant’s request for review, unless the Benefits Appeal Committee determines that
special circumstances require an extension of time and so notifies the claimant, in which case a decision shall be made not more than 120 days after it has received the request for review. The Benefits Appeal Committee shall have the greatest
discretion permitted by law in making decisions pursuant to this Section 16. All interpretations, determinations, and decisions of the Benefits Appeal Committee in respect of any claim shall be conclusive and binding upon all persons having or
claiming to have any interest or right under the Plan. 

  

 -17-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}]]