Document:

Employment Agreement for Parke H. Davis

  
 Exhibit 10.19

  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (“Agreement”) is entered into as of this
16th day of December, 1996, by and between COMMEMORATIVE BRANDS, INC. and any successors thereto (collectively referred to as the “Company”) and PARKE H. DAVIS (“Executive”). 
  
 The parties hereby agree as follows: 
  
 1. Employment. Executive will serve the Company in an executive capacity in such
office as from time to time shall be determined by the Board of Directors of the Company, and will perform, faithfully and diligently, the services and functions performed and will carry out the functions of his office and furnish his best advice,
information, judgment and knowledge with respect to the business of the Company. Executive agrees to perform such duties as hereinabove described and to devote full-time attention and energy to the business of the Company. Executive will not, during
the term of employment under this Agreement, engage in any other business activity if such business activity would impair Executive’s ability to carry out his duties under this Agreement. 
  
 2. Term. This Agreement shall be effective upon consummation of the acquisition by the
Company of substantially all of the assets and businesses of CJC Holdings, Inc. and L.G. Balfour Company, Inc., on December 16, 1999 and shall thereafter on December 15, 1999; provided, that the term of this Agreement may be automatically
extended for an additional year on December 15, 1999 and each anniversary of December 15, 1999, unless at least 60 days prior to December 15, 1999, or such anniversary date, the Company shall give notice to Executive that the termination date shall
not be so extended. 
  
 3. Compensation and Other Benefits. 
  
 3.1 Salary. The salary compensation to be paid by the Company to
Executive and which Executive agrees to accept from the Company for services performed and to be performed by Executive hereunder shall be an annual gross amount, before applicable withholding and other payroll deductions, of $155,000, payable in
equal bi-weekly installments of $5,961.54, subject to such changes as the Board of Directors of the Company may, in its sole discretion, from time to determine. 
  

3.2 Benefits. Executive shall be entitled to participate in such employee benefit programs, plans and policies (including incentive bonus plans
and incentive stock option plans) as are maintained by the Company and as may be established for the employees of the Company from time to time on the same basis as other executive employees are entitled thereto. It is understood that the
establishment, termination or change in any such Executive employee benefit programs, plans or policies shall be at the instance of the Company in the exercise of its sole discretion, from time to time, and any such termination or change in
such program, plan or policy will not affect this Agreement so long as Executive is treated on the same basis as other executive employees participating in such program, plan or policy, as the case may be. Upon termination of employment under this
Agreement, without regard to the manner in which the termination was brought about, Executive’s rights in such employee benefit programs, plans or policies shall be governed solely by the terms of the program, plan or policy itself and not this
Agreement. Executive shall be entitled to an annual paid vacation in accordance with the Company’s personnel policy for his years of service completed as an employee of the Company (and, to the extent applicable, the Company’s
predecessors). 
  

 4. Working Facilities. During the term of his employment under this Agreement, Executive shall be furnished with a
private office, stenographic services and such other facilities and services as are commensurate with his position with the Company and adequate for the performance of his duties under this Agreement. 
  
 5. Expenses. During the term of his employment under this Agreement, Executive is
authorized to incur reasonable out-of-pocket expenses for the discharge of his duties hereunder and the promotion of business of the Company, including expenses for entertainment travel and related items. The Company shall reimburse Executive for
all such expenses upon presentation by Executive from time to time of itemized accounts of expenditures incurred in accordance with customary Company policies. 
  

6. Termination. Executive’s employment under this Agreement may be terminated with or without cause or reason by either Company or Executive upon the
following terms and conditions. 
  
 6.1 Termination by Company
for Cause. If any of the following events or circumstances occur, the Company may terminate Executive’s employment under this Agreement at any time during or at the end of the initial or any extended term of this Agreement for any of the
following causes (each a “Cause”). 
  

	 	(i)	Executive’s conviction of a felony; 

  

	 	(ii)	Executive’s intentional failure to observe or perform material provisions of this Agreement required to be observed or performed by him; or 

  

	 	(iii)	Executive’s intentional substantial wrongful damage to property of the Company. 

  
 Upon payment by the Company to Executive of all salary payable, accrued and unused vacation, and any accrued bonus to the
date of such termination, the Company shall have no further liability to Executive for compensation in accordance herewith, and Executive will not be entitled to receive the Termination Payment or Termination Benefits (as such terms are defined
below) except aforesaid vacation and any accrued bonus. 
  
 6.2
Termination by Company Without Cause. In the event of the termination of Executive’s employment under this Agreement by the Company at any time during or at the end of the initial or any extended term of this Agreement without Cause as
defined in Paragraph 6.1 above, Executive will be entitled to receive 39 bi-weekly payments equal to the average of his bi-weekly compensation in effect within the two years preceding the termination (including, for these purposes, average bi-weekly
compensation of Executive from the Company’s predecessors) (“Termination Payments”), less legally required withholdings. It addition to the Termination Payments, Executive will be entitled to elect the continuation of health benefits
under COBRA and the Company will pay the COBRA premiums for an 18-month period, beginning on the date that Executive’s health coverage ceases due to his termination, accrued but unused vacation, and any accrued bonus (“Termination
Benefits”). If Executive obtains employment while he is entitled to receive the Termination Payments and the Termination Benefits, each Termination Payment shall be reduced by the amount of his average bi-weekly compensation to be received in
connection with his new employment and the payment of the Termination Benefits shall cease upon Executive becoming covered under the new employer’s health coverage plan at no cost to Executive. The combination of the Termination Payments and
the 

  

 -2- 

 
Termination Benefits constitute the sole amount to which Executive is entitled if termination is without Cause. 
  
 6.3 Termination by Executive Without Good Reason. Executive may
terminate his employment under this Agreement without Good Reason as defined in Paragraph 6.4 below upon the giving of 90 days written notice of termination. In the event of such termination, the Company may elect to pay Executive six months of
compensation including unused accrued vacation and any accrued bonus in lieu of 90 days notice, in which event Executive’s services to the Company will be terminated immediately. No Termination Payments or Termination Benefits other than as set
forth in Section 6.3 shall be payable upon Executive’s termination of this Agreement without Good Reason. 
  
 6.4 Termination by Executive With Good Reason. Executive may terminate his employment under this Agreement for Good Reason. For purpose of this
Agreement, “Good Reason” shall mean: 
  

	 	(i)	Without Executive’s consent, the assignment to Executive of substantial duties inconsistent with Executive’s then-current position, duties, responsibilities and status
with the Company, or any removal of Executive from his titles and offices, except in connection with the termination of Executive’s employment under this Agreement by Company or as a result of Executive’s death or permanent disability (as
defined in the Company’s or Executive’s disability insurance policies); 

  

	 	(ii)	The Company requiring Executive to relocate anywhere other than Austin, Texas, except for required travel on the Company’s business to an extent substantially consistent with
Executive’s business travel obligations, or, in the event Executive consents to such relocation out of Austin, Texas, the failure by the Company to pay or reimburse Executive for all reasonable moving expenses incurred by Executive relating to
a change of Executive’s principal residence in connection with such relocation and to indemnify Executive against any loss (defined as the difference between the actual bona fide sale price of such residence and the fair market value of such
residence as determined by a member of the Society of Real Estate Appraisers designated by Executive and satisfactory to the Company) realized in the sale of Executive’s principal residence in connection with any such change in residence; or

  

	 	(iii)	A decrease in Executive’s salary from the salary in effect upon the date hereof that is inconsistent with or not commensurate with Executive’s then current position with
the Company. 

  
 In the event of termination under
this Section 6.4, the Company shall pay to Executive the same Termination Payments and Termination Benefits to which Executive would have been entitled had he been terminated by the Company without Cause. 
  
 6.5 Death of Permanent Disability. Executive’s employment under
this Agreement shall terminate upon Executive’s death or permanent disability (as defined in the Company’s or Executive’s disability insurance policies). Other than accrued but unused vacation and any accrued but unpaid bonus, no
Termination Payments or Termination Benefits shall be payable upon Executive’s death or permanent disability. 
  

 -3- 

 6.6 Release Agreement. The Termination Payments and Termination Benefits pursuant to Section 6 are
contingent upon Executive executing a Release Agreement after termination, a copy of which is attached to this Agreement. It is understood that Executive may preserve all rights and causes of action in the event of termination by the Company and
evidence of release of same will only be by execution of said Release Agreement after termination. 
  
 7. Confidentiality. During and after the term of employment under this Agreement, Executive agrees that he shall not, without the express written consent of Company, directly or indirectly communicate or
divulge to, or use for his own benefit or for the benefit of any other person, firm, association or corporation, any of Company’s trade secrets, proprietary data or other confidential information, which trade secrets, proprietary data or other
confidential information were communicated to or otherwise learned or acquired by Executive during his employment relationship with Company (“Confidential Information”), except that Executive may disclose such matters to the extent that
disclosure is required (a) at Company’s direction or (b) by a court or other governmental agency of competent jurisdiction. As long as such matters remain trade secrets, proprietary data or other confidential information, Executive shall not
use such trade secrets, proprietary data or other confidential information in any way or in any capacity other than expressly consented to by Company. 
  
 8. Covenant not to Compete or Solicit. 
  
 8.1 Executive agrees to refrain for one year after the termination of his employment under this Agreement for any reason, without written permission of
the Company, from becoming involved in any way, within the boundaries of the United States, in the business of manufacturing, designing, servicing or selling, the type of jewelry or fine paper or other scholastic, licensed sports, insignia,
recognition or affinity products manufactured or sold (or then contemplated to be manufactured or sold) by the Company, its divisions, subsidiaries and/or other affiliated entities, including but not limited to, as an employee, consultant,
independent representative, partner or proprietor. 
  
 8.2
Executive also agrees to refrain during his employment under this Agreement, and in the event of the termination of his employment under this Agreement for any reason, for one year thereafter, without written permission from the Company, from
diverting, taking, soliciting and/or accepting on his own behalf or on the behalf of another person, firm, or company, the scholastic, licensed sports, insignia, recognition or affinity business of any customer of the Company, its divisions,
subsidiaries and/or affiliated entities, or any potential customer of the Company, its divisions, subsidiaries and/or affiliated entities whose identity became known to Executive through his employment by the Company and to which the Company and to
which the Company has made a written business proposal or provided written pricing information before the termination of Executive’s employment under this Agreement. 
  
 8.3 Executive agrees to refrain during his employment under this Agreement, and in the event of the termination of his
employment under this Agreement for any reason for a period of one year thereafter, from inducing or attempting to influence any employee or independent representative of the Company, its divisions, subsidiaries, and/or affiliated entities to
terminate his or her employment or association with the Company or such other entity. 
  
 8.4 Executive further agrees that the covenants in Sections 8.1 and 8.2 are made to protect the legitimate business interests of the Company, including interests in the Company’s “Confidential
Information,” as defined in Section 7 of this Agreement, and not to restrict his mobility or to prevent his from utilizing his skills. Executive understands as a part of these covenants that the 

  

 -4- 

 
Company intends to exercise whatever legal recourse against him for any breach of this Agreement and in particular for breach of these covenants. 

 
 9. Controlling Law and Performability. The execution, validity, interpretation and
performance of this Agreement will be governed by the law of the State of Texas. 
  
 10. Separability. If any provision of this Agreement is rendered or declared illegal or unenforceable, all other provisions of this Agreement will remain in full force and effect. 
  
 11. Notices. Any notice required or permitted to be given under this Agreement shall
be sufficient if in writing and if sent by certified mail (return receipt requested) addressed as follows: 
  

			
	If to Executive:	  	Parke H. Davis
	 	  	4408 Long Champ Drive #36
	 	  	Austin, TX 78746
		
	If to the Company:	  	Chief Executive Officer
	 	  	Commemorative Brands, Inc.
	 	  	7211 Circle S Road
	 	  	Austin, TX 78745

  
 12. Assignment. The rights and
obligations of the Company under this Agreement shall inure to the benefit of and be binding upon its successors and assigns. The rights and obligations or Executive under this Agreement are of a personal nature and shall neither be transferred or
assigned in whole or in part by Executive. 
  
 13. Non-Waive. No waiver of
or failure to assert any claim, right, benefit or remedy hereunder shall operate as a waiver of any other claim, right, benefit or remedy of the Company or Executive. 
  
 14. Review and Consultation. Executive acknowledges that he has had a reasonable time to review and consider this Agreement and has
been given the opportunity to consult with an attorney. 
  
 15. Entire
Agreement and Amendments. This Agreement contains the entire agreement of Executive and the Company relating to the matters contained in this Agreement and supersedes all prior agreements and understandings, oral or written, between Executive
and the Company with respect to the subject matter in this Agreement. This Agreement may be changed only by an agreement in writing by Executive and the Company. 
  

 -5- 

 IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written.

  

					
	COMMEMORATIVE BRANDS, INC.
		
	By:	 	/s/ Jeffrey H. Brennan
	 	 	 Name:
	 	 Jeffrey H. Brennan

	 	 	 Title:
	 	 Chief Executive Officer

	
	EXECUTIVE
	
	/s/ Parke H. Davis
	 Parke H. Davis

  

 -6-CIIP Schedule of Terms

 Exhibit 10.15 
  

					
	 	  	United Technologies Corporation	  	 
			
	 	  	Long Term Incentive Plan	  	 
			
	 	  	Continuous Improvement
Incentive Program	  	 

  
 Non-Qualified Stock
Option and Dividend Equivalent Awards 
  
 Schedule of
Terms 
  

 Non-Qualified Stock Option and Dividend Equivalent Awards 
  
 United Technologies Corporation (the “Corporation”) hereby awards to the recipient
Non-Qualified Stock Options and Dividend Equivalents pursuant to the Corporation’s Continuous Improvement Incentive Program (the “Program”), which has been established under the United Technologies Corporation Long Term Incentive Plan
(the “LTI Plan”). The number of Non-Qualified Stock Options and target Dividend Equivalents awarded is set forth in the Statement of Award issued to the recipient (the “Statement of Award”). The recipient will become a
Participant in the Program upon receipt of the Statement of Award and acceptance of such Award by signing and returning the appropriate portion of the Statement of Award to the Program Administrator. Program Awards are subject to this Schedule of
Terms and the terms and provisions of the LTI Plan. 
  
 Program performance
objectives have been established for the three-year period following the grant as set forth in the Statement of Award. Achievement of Program objectives will be measured cumulatively over the three year period. Dividend Equivalents will vest and
become payable if the achievement of Program objectives reaches specified levels for the Corporation (see “Vesting”, page 2). 
  
 A Non-Qualified Stock Option (an “Option”) is the right to purchase, at a future date, a specific number of shares of Common Stock of the Corporation
(“Common Stock”) at a price equal to the closing price reported on the composite tape of the New York Stock Exchange for such shares on the date of grant of the Award. The number of shares for which the Option is awarded to the Participant
and the Option price per share are set forth in the Statement of Award. 
  
 A
Dividend Equivalent is the right to receive a payment equal to the quarterly dividend amount paid on Common Stock for a stated period of time. 
  

 1 

 Program Objectives 
  
 Performance against Program objectives is measured over the three-year period ending December 31 of the third year following the grant, as set forth in the Statement of
Award. Program objectives are established for the Corporation. 
  
 Program
objectives will consist of one or more financial objectives that will be a critical measure of the Corporation’s performance over the three year performance measurement period. Program objectives are approved by the Board of Directors’
Committee on Compensation and Executive Development (the “Committee”). Achievement of Program objectives at the required level will result in vesting of from 0% to 200% of the target Dividend Equivalent Award (see “Vesting”
below). 
  
 Vesting 
  
 Stock options will vest and become exercisable three years after the date of grant, and may
be exercised any time thereafter until the earlier of: 
  

	(i)	the expiration date specified in the Statement of Award, at which time the Option and all associated rights lapse without value; or 

  

	(ii)	termination of employment in which case the right to exercise shall be for a specified period of time following the date of termination, as described in “Termination of
Employment”. 

  
 Dividend Equivalents will vest at the
conclusion of the three-year performance measurement period, if and to the extent the Corporation’s cumulative performance results in the achievement of a specified percentage of the Program objectives. Dividend Equivalent payments will be made
quarterly with respect to vested Dividend Equivalents commencing with the first dividend payment on Common Stock following the vesting date. 
  

 2 

 These vesting rules also apply when an executive is transferred to a non-executive position or to an affiliate that does
not participate in the Program. 
  
 Exercise and Payment of Options

  
 Options may be exercised on or after the vesting date through the
expiration date (or earlier in the event of termination of employment). The vesting date and expiration date are each set forth in the Statement of Award. 
  
 The Option to purchase shares will expire without value with respect to any shares that are not purchased on or before the expiration date. It is the responsibility of
the Participant, or a designated representative, to exercise the Option in a timely manner. The Corporation assumes no responsibility for and will make no adjustments with respect to Options that expire. 
  
 Options may be exercised through one of two procedures set forth below. For stock option
exercises processed utilizing the procedures described in (i) below, the value of Common Stock will be the closing price reported on the composite tape of the New York Stock Exchange on the date of exercise. For stock option exercises processed
utilizing the procedures described in (ii) below, the value of Common Stock will be the actual transaction price. 
  

	(i)	Participants may exercise Options by completing and sending the UTC Exercise Form to the Stock Option Program Administrator, identifying the number of Options to be exercised and
paying the required Option price in U.S. dollars by check or bank draft or by tendering shares of Common Stock (utilizing procedures authorized by the Program Administrator for tendering shares). The date of exercise will be the date of postmark or
delivery of a completed form (with an original signature) and check for the cost of exercise to the Program Administrator; or 

  

 3 

 A Participant may follow the above procedure by using a broker or other authorized representative. A
completed UTC Exercise Form (with an original signature) must be submitted with the check for the cost of exercise to the Program Administrator. 
  

	(ii)	Alternatively, Participants may utilize the “cashless” exercise method where neither cash nor shares are tendered by the Participants in payment of the exercise price. To
facilitate the cashless exercise of Options, a Participant must establish an account with a designated broker at one of the security brokerage firms approved by the Corporation. 

  
 Under the cashless procedure, a Participant notifies the designated broker
of the Option Award date and number of Options to be exercised. The broker provides the Participant with the exercise form and notifies the Program Administrator. The designated broker will sell shares of Common Stock sufficient to cover the
exercise price of the Options to be exercised plus required tax withholding amounts and wire transfer the sales proceeds to the Corporation. The Corporation will then deliver to the designated broker the number of shares equal to the number of
Options exercised. The broker retains a number of shares equal to the exercise price and tax withholding. The net shares remaining will, at the Participant’s election, either be placed in the Participant’s account with the brokerage firm
or sold on the open market with net cash proceeds delivered to the Participant by the designated broker. 
  
 In a cashless exercise, reported taxable income will be based on the actual transaction price as reported by the broker to the Program Administrator,
rather than the closing price reported on the composite tape of the New York Stock Exchange on the date of exercise. 
  
 The cashless exercise method may not be used if the Corporation determines in its sole discretion that the transaction may constitute a prohibited loan to
the executive or for other reasons related to regulatory compliance. 
  

 4 

 Dividend Equivalents 
  
 At the completion of the three-year performance measurement period, Participants will vest in Dividend Equivalents if the Corporation achieves specified Program
objectives. 
  
 Vested Dividend Equivalents will be paid quarterly, commencing
with the first Common Stock dividend payment date following the vesting date. The quarterly payment will be equal to the dividend paid on a share of the Corporation’s Common Stock for that quarter. If, for any reason, there is no Common Stock
dividend paid for a quarter, the Dividend Equivalent payment will also be omitted for that quarter. The Dividend Equivalent will not be extended beyond the original payment period if any dividend payments are omitted. 
  
 Program Participants will continue to be eligible to receive quarterly payments for varying
lengths of time based on the Participant’s executive level at the time of grant: 
  
 L1 = 7 years 
 L2 = 4 years 
 L3 = 2 years 
  
 Dividend Equivalent payments will
stop if: 
  

	(i)	the Participant terminates employment with the Corporation for reasons other than retirement, death or disability; or 

  

	(ii)	the Participant exercises an Option associated with the Dividend Equivalent Award. The number of vested Dividend Equivalents associated with each Option will be canceled pursuant to
the exercise of an associated Option. If less than 100% of the Dividend Equivalent Award vests, the vested Dividend Equivalents will be canceled upon the initial and subsequent exercise of Options associated with the Dividend Equivalent Award (i.e.
vested Dividend Equivalents are allocated to the first Options exercised with respect to the Program Award). 

  

 5 

 Termination of Employment 
  
 If the Participant terminates employment for any reason other than death, disability or retirement, unvested Options will be canceled as of
the termination date. Vested Options may be exercised for a period of 90 calendar days following the termination date (but not beyond the expiration date of the Option). 
  
 Retirement eligibility includes: 
  

	(i)	Attainment of age 65 as of the employment termination date; or 

  

	(ii)	Attainment of at least age 55 with 10 or more years of service as of the employment termination date. (Meeting the “Rule of 65” does not constitute eligibility for
retirement. See below for Rule of 65 treatment.) 

  
 Upon
retirement, the Participant may exercise vested Options (i.e. those held for at least three years while continuously employed) for three years following the date of retirement or until the expiration of the Option, whichever is earlier. Unvested
Options that have been held for at least one year prior to the date of retirement will become exercisable as of the retirement date and the Participant will then have a three year period following the retirement date to exercise these Options (but
in no event beyond the Option expiration date). 
  
 For Options granted after
February 22, 1999: If the Participant is eligible for retirement and the Corporation consents to the retirement, the Participant may exercise vested Options for up to five years following the date of retirement or until the expiration of
the Option, whichever is earlier. Unvested Options that have been held for at least one year prior to the retirement date will become exercisable as of the retirement date and the Participant will then have a five year period following the
retirement date to exercise these Options (but in no event beyond the Option expiration date). 
  

 6 

 For Options granted after June 11, 2003: If the Participant is eligible for retirement and the Corporation
consents to the retirement, the Participant may exercise vested Options until the expiration of the Option. Unvested Options that have been held for at least one year prior to the retirement date will become exercisable as of the retirement date and
the Participant will have the full remaining term of the Option to exercise these Options. 
  
 For Options granted after February 22, 1999 and after June 11, 2003, the Corporation’s consent with respect to the extended exercise period will be at the sole discretion of the Corporation based on its ability
to effectively transition the Participant’s responsibilities as of the retirement date and such other factors as it may deem appropriate. 
  
 In all cases, options held for less than one year prior to the retirement date will be canceled without value. 
  
 Rule of 65: The Participant meets the “Rule of 65” if the Participant
terminates employment on or after age 50, but before age 55, and the sum of the Participant’s age and years of service add up to 65 or more as of the employment termination date. The Participant who meets the Rule of 65 may exercise vested
Options for three years following the employment termination date or until the expiration of the Option, whichever is earlier. Unvested Options that have been held for at least one year prior to the employment termination date will vest as of the
termination date and the Participant will have a three year period following the termination date to exercise these Options (or until the expiration of the Options, if earlier). 
  
 Service used to determine eligibility for retirement or the Rule of 65 will be based on continuous service recognized under the
Participant’s UTC retirement plan. 
  
 In the event of permanent and total
disability, or an authorized leave of absence, or transfer to an affiliate, the Participant shall not be considered to have terminated employment for purposes of the Option. 
  

 7 

 In the event of the death of the Participant, the legal representative of the estate of the Participant may exercise all
Options outstanding as of the date of death, whether or not vested, for a period of one year following the date of death, regardless of the expiration date of the Option. 
  
 If the Participant terminates employment for any reason other than death, disability or retirement, all Dividend Equivalents will be
canceled. If termination is the result of disability, the Participant will not be considered to have terminated employment for purposes of Dividend Equivalents. If the Participant is transferred to an affiliate that does not participate in the
Program, the Participant will not be considered to have terminated employment for purposes of Dividend Equivalents. (See “Transfers and Other Changes”, page 9.) 
  
 If termination is the result of death before the vesting date, a lump sum Dividend Equivalent payment will be made to the Participant’s
estate equal to the quarterly dividend rate most recently paid on the Corporation’s Common Stock, times four, times the number of Dividend Equivalents granted. If termination is the result of death after the Vesting Date, a lump sum Dividend
Equivalent payment will be made to the Participant’s estate equal to the quarterly dividend rate most recently paid on the Corporation’s Common Stock, times the number of payments remaining to be paid, times the number of vested Dividend
Equivalents. 
  
 If termination is the result of retirement before the vesting
date, Dividend Equivalents held for less than twelve months will be canceled. Dividend Equivalents held for twelve months or more will be retained by the retiree until the vesting date, as long as the associated Options remain outstanding and
unexercised. The outstanding non-vested Dividend Equivalents will be eligible for vesting based on the Corporation’s performance as determined at the end of the performance measurement period. Quarterly Dividend Equivalent payments will then be
made to the retiree while the associated Options remain outstanding and unexercised, 

  

 8 

 
up to the maximum number of payments as specified in the Statement of Award. 
  
 If a Participant retires after the completion of a performance measurement period, quarterly payments will be made on vested Dividend
Equivalents while the associated Options remain outstanding and unexercised, up to the maximum number of payments as specified in the Statement of Award. 
  
 Nonassignability 
  
 Unless otherwise prescribed by the Committee, no assignment or transfer of any interest of the Participant in any of the rights represented by Options, Dividend Equivalents or the Participant’s participation in
the Program, whether voluntary or involuntary, by operation of law or otherwise, shall be permitted except by Will or the laws of descent and distribution. Any attempt to assign such interests shall be void and shall be without force or effect.

  
 Adjustments 
  
 If the Corporation effects a subdivision or consolidation of shares of Common Stock or other
capital adjustment, the number of shares of Common Stock then remaining subject to an Award shall be adjusted in the same manner and to the same extent as all other shares of Common Stock of the Corporation. 
  
 In the event of material changes in the capital structure of the Corporation resulting from:
the payment of a special dividend (other than regular quarterly dividends) or other distributions to shareowners without receiving consideration therefore; the spin-off of a subsidiary; the sale of a substantial portion of the Corporation’s
assets; in the event of a merger or consolidation in which the Corporation is not the surviving entity; or other extraordinary non-recurring events affecting the Corporation’s capital structure and the value of Common Stock, equitable
adjustments shall be made in the terms of outstanding 

  

 9 

 
awards, including the number of shares of Common Stock subject to an Option, as the Committee, in its sole discretion, determines are necessary or
appropriate to prevent the dilution or enlargement of the rights of Participants in their Program Awards. 
  
 Change of Control 
  
 In the event of a
change of control, an event, which if consummated, would constitute a change of control, any other significant change pertaining to the ownership of the Corporation or a restructuring of the Corporation, the Committee may, in its discretion,
recommend that the Board of Directors take certain actions with respect to outstanding Awards to assure fair and equitable treatment of Program Participants. Such actions may include: acceleration of the Vesting Date for Options and Dividend
Equivalents; offering to purchase an outstanding Award from the Participant for its equivalent cash value (as determined by the Committee); or providing for other adjustments or modifications to outstanding Awards as the Committee may deem
appropriate. 
  
 For purposes of the Plan, a “change of control” means
the acquisition of 20% of the Corporation’s outstanding voting shares by a person or group (as defined in Section 13 (d) (3) of the Securities Exchange Act of 1934) of which such person is a member, or a change in the majority of the Board of
Directors such that, within any consecutive two-year period, the members of the new majority are not approved by two-thirds of the members incumbent at the beginning of such two-year period. Members approved after such date by two-thirds of such
incumbents as of the beginning of such two-year period shall be deemed to be incumbents as of the beginning of such two-year period for purposes of this computation. A merger or consolidation of the Corporation with another company where the
Corporation is not the surviving company, a sale of substantially all of the assets of the Corporation, a dissolution or liquidation of the Corporation or other event or transaction having similar effect also 

  

 10 

 
constitutes a “change of control” for purposes of the LTI Plan. 
  
 Awards Not to Affect or Be Affected by Certain Transactions 
  
 Non-Qualified Stock Option Awards and Dividend Equivalents shall not affect in any way the right or power of the Corporation or its
shareowners to make or authorize: (a) any or all adjustments, recapitalizations, reorganizations or other changes in the Corporation’s capital structure or its business; (b) any merger or consolidation of the Corporation; (c) any issue of
bonds, debentures, preferred or prior preference stocks holding any priority or preferred to, or otherwise affecting in any respect the Common Stock of the Corporation or the rights of the holders of such Common Stock; (d) the dissolution or
liquidation of the Corporation; (e) any sale or transfer of all or any part of its assets or business; or (f) any other corporate act or proceeding. 
  
 Except as otherwise expressly provided in this Schedule of Terms, the issue by the Corporation of shares of stock of any class, or securities convertible into shares of
stock of any class, for cash or property, or for labor or services, either upon direct sale or upon the exercise of rights or warrants to subscribe thereto, or upon conversion of shares or obligations of the Corporation convertible into such shares
or other securities, shall not affect and no adjustment by reason thereof shall be made with respect to the Option price or the number of outstanding shares subject to an Option Award. 
  
 Notices 
  
 Every notice or other communication relating to the Program, any Award thereunder and this Schedule of Terms shall be in writing, via hard copy or electronic
transmissions, and shall be delivered to the party for whom it is intended at such address as may from time to time be designated by such party. Unless and until some other address has been so designated, all 

  

 11 

 
notices by the Participant to the Corporation shall be mailed to or delivered to the Corporation at its office at United Technologies Building, MS 504,
Hartford, Connecticut 06101, Attention: Program Administrator, or e-mailed to stockoptionplans@utc.com. All notices by the Corporation to the Participant may be delivered electronically, personally, or by mail at his or her address (or e-mail
address, as the case may be) as shown on the records of the Corporation. 
  
 Administration 
  
 Non-Qualified Stock Option and Dividend
Equivalent Awards granted pursuant to the Program shall be interpreted and administered by the Committee. The Committee shall establish such procedures as it deems necessary and appropriate to administer the Awards in a manner that is consistent
with the objectives of the Program and the LTI Plan. 
  
 Pursuant to the terms of
the LTI Plan, the Committee may delegate to employees of the Corporation its authority and responsibility to grant, administer and interpret Non-Qualified Stock Option, Dividend Equivalent and other Awards under the Program. 
  
 Subject to certain limitations, the Committee has delegated the authority to grant
Non-Qualified Stock Options and Dividend Equivalents to the Chief Executive Officer and has further delegated the authority to administer and interpret such Awards to the Senior Vice President, Human Resources and Organization, along with the
authority to sub-delegate, except that Non-Qualified Stock Option and Dividend Equivalent Awards granted to employees of the Corporation who are either reporting persons under Section 16 of the Securities Exchange Act of 1934 (“Insiders”)
or members of the Corporation’s Executive Leadership Group shall be granted, administered, and interpreted exclusively by the Committee. 
  

 12 

 Taxes/Withholding 
  
 The Participant shall be responsible for any income or other tax liability attributable to any Program Award. The Program Administrator shall take such steps as are
appropriate to assure compliance with applicable federal, state and local tax withholding requirements. The Corporation shall, to the extent required by law, have the right to deduct directly from any payment or delivery of shares due the
Participant or from the Participant’s regular compensation, all federal, state and local taxes of any kind required by law to be withheld with respect to the exercise of any Option or payment of any Dividend Equivalents. Participants not based
in the United States and foreign nationals who are not permanent residents of the United States must pay the appropriate taxes as required by any country where they are subject to tax. 
  
 Right of Discharge Reserved 
  
 Nothing in the LTI Plan, the Program, or in any Option or payment of any Dividend Equivalent Award granted shall confer upon any Participant the right to continue in the
employment or service of the Corporation or any affiliate thereof for any period of time or affect any right that the Corporation or any subsidiary or division may have to terminate the employment or service of such Participant at any time for any
reason. 
  
 Right of Committee to Revoke Awards 
  
 Notwithstanding any other provision herein, the Committee reserves the right, prior to a
Change in Control of the Corporation, to cancel any outstanding Option and Dividend Equivalent Award, whether or not vested and regardless of achievement of applicable Program objectives, if the Committee determines that the Participant has engaged
in any act or practice with respect to the affairs of the Corporation, whether or not employed by the Corporation at the time, that is materially detrimental to the Corporation, provided, 

  

 13 

 
however, that the Committee shall not take any such action in an arbitrary or capricious manner. 
  
 Nature of Payments 
  
 All Awards made pursuant to the Program are in consideration of services performed for the Corporation or the business unit employing the
Participant. Unless required by law, any gains realized pursuant to such Awards constitute a special incentive payment to the Participant and shall not be taken into account as compensation for purposes of any of the employee benefit plans of the
Corporation or any business unit. 
  
 Consistency with Other Business
Objectives 
  
 Program objectives must be achieved in a manner that is not
inconsistent with other business objectives of the Corporation and the business units. The Committee reserves the right to forfeit any Award, notwithstanding achievement of Program objectives, if the Committee or its delegate determines, in its sole
discretion, that such achievement resulted in whole, or in part, from actions that were otherwise detrimental to the Corporation and/or the Participant’s business unit, or did not constitute sound business practice or reflect good business
judgment with respect to the Corporation and/or the business unit’s operations, taken as a whole. 
  
 Government Contract Compliance 
  
 The
“UTC Policy Statement on Business Ethics and Conduct in Contracting with the United States Government” calls for compliance with the letter and spirit of government contracting laws and regulations. Accordingly, efforts to achieve Program
objectives must be consistent with these laws and regulations. Participants are expected to understand these requirements and seek advice where appropriate. If an act or recommendation of a Participant is inconsistent with or violates a government
contracting law or regulation, all Awards made to such Participant pursuant to this Program will 

  

 14 

 
be revoked. Further, a Participant is subject to additional disciplinary action for violating the above-named Policy Statement on government contracting.

  
 Interpretations 
  
 This Schedule of Terms and each Statement of Award are subject in all respects to the terms
of the LTI Plan. In the event that any provision of this Schedule of Terms or any Statement of Award is inconsistent with the terms of the LTI Plan, the terms of the LTI Plan shall govern. Any question of administration or interpretation arising
under this Schedule of Terms or any Statement of Award shall be determined by the Committee or its delegate, such determination to be final and conclusive upon all parties in interest. 
  
 Amendment and Termination 
  
 The Committee reserves the right to amend, suspend or discontinue the Program and the LTI Plan at any time. 
  
 Governing Law 
  
 The LTI Plan, the Continuous Improvement Incentive Program, this Schedule of Terms and the Statement of Award shall be governed by and construed in accordance with the
laws of the State of Connecticut. 
  

 15 

 

 
  
 United Technologies Corporation 
 United Technologies Building 
 Hartford, CT 06101

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]