Document:

EX-4.3

 Exhibit 4.3 

[FORM OF NOTE] 
 UNLESS THIS CERTIFICATE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK, S.A./N.V., AS OPERATOR OF THE EUROCLEAR SYSTEM (“EUROCLEAR”), AND CLEARSTREAM BANKING, SOCIÉTÉ ANONYME, LUXEMBOURG (“CLEARSTREAM” AND, TOGETHER WITH
EUROCLEAR, “EUROCLEAR/CLEARSTREAM”), TO UNITED TECHNOLOGIES CORPORATION OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITORY (NOMINEES)
LIMITED OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM (AND ANY PAYMENT IS MADE TO THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED, HAS AN INTEREST
HEREIN. 
 THIS SECURITY IS A SECURITY IN GLOBAL FORM WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A COMMON
DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH COMMON DEPOSITARY OR
A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
  

			
	 No. [__]
		€[______________]
	
	UNITED TECHNOLOGIES CORPORATION
1.250% NOTE DUE 2023
		
			CUSIP NO. [______________]
			Common Code NO. [______________]
			ISIN NO. [______________]

 UNITED TECHNOLOGIES CORPORATION, a Delaware corporation (herein called the “Company”, which term
includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to The Bank of New York Depository (Nominees) Limited, the registered Holder hereof, as nominee of The Bank of New York
Mellon (London Branch) as common depositary for Euroclear Bank, S.A./N.V. (“Euroclear”) and Clearstream Banking, société anonyme (“Clearstream”), the principal sum of
[            ] (€[            ]), or such other principal sum as shall be specified in the Schedule of Increases or
Decreases in Global Security attached hereto, on May 22, 2023, and to pay interest thereon from May 22, 2015 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, annually in arrears on
May 22 of each year, commencing on May 22, 2016, at the rate of 1.250% per annum, until the principal hereof is paid or made available for payment. Interest on this Security will be computed on the basis of the actual number of days
in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on this Security (or May 22, 2015 if no interest has been paid on this Security), to but excluding
the next scheduled Interest Payment Date. This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market 

 
Association. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at, if the Securities are in definitive form, the close of business on the preceding May 7 (whether or not a Business Day), or, if the Securities are represented by one or more global
Securities, the close of business on the Business Day (for this purpose a day on which Clearstream and Euroclear are open for business) immediately preceding the Interest Payment Date (the “Regular Record Date”). If the date
on which a payment of interest or principal is scheduled to be paid is not a Business Day, then that interest or principal will be paid on the next succeeding Business Day, and no further interest will accrue as a result of such delay. Any such
interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date,
or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may be listed, all as more fully provided in said Indenture. Each payment of interest hereon shall include
interest accrued from and including the issue date or the most recent preceding Interest Payment Date to which interest has been paid or duly provided for, as the case may be, to and excluding the relevant Interest Payment Date or Maturity, as the
case may be. This Security is a Security for purposes of the Indenture. Unless otherwise noted, “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions are authorized or
obligated by law or executive order to be closed in New York City or London and, for any place of payment outside of New York City or London, in such place of payment, and which is a day on which the Trans-European Automated Real-time Gross
Settlement Express Transfer system (the TARGET2 system), or any successor thereto, operates. 
 Payment of the principal of and premium, if
any, and interest on this Security will be made at the office or agency of the Company maintained for that purpose in the City of London, England, which shall be initially the corporate trust office of The Bank of New York Mellon (London Branch),
located at One Canada Square, London E14 5AL; provided, however, that at the option of the Company payment of principal or interest may be made by wire transfer to an account designated by the Person entitled thereto or by check mailed to the
address of the Person entitled thereto as such address shall appear in the Security Register, in either case in same-day funds. 
 All
payments on this Security will be payable in euro. If the euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control (including the dissolution of the euro) or if the euro
is no longer being used by the then member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all
payments in respect of this Security will be made in U.S. dollars until the euro is again available to the Company or so used. The amount payable on any date in euro will be converted into U.S. dollars at the rate mandated by the U.S. Federal
Reserve Board as of the close of business on the second Business Day prior to the relevant payment date or, in the event the U.S. Federal Reserve Board has not mandated a rate of conversion, on the basis of

 
the then most recent U.S. dollar/euro exchange rate available on or prior to the second Business Day prior to the relevant payment date as determined by the Company in the Company’s sole
discretion. Any payment in respect of this Security so made in U.S. dollars will not constitute an Event of Default with respect to the Securities of this series or under the Indenture. Neither the Trustee nor the Paying Agent shall have any
responsibility for any calculation or conversion in connection with the foregoing. 
 “euro” and “€” means the
lawful currency of the member states of the European Monetary Union that have adopted or that adopt the single currency in accordance with the treaty establishing the European Community, as amended by the Treaty on European Union. 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal. 
 Dated: _______________ 

[SEAL] 
  

			
	 UNITED TECHNOLOGIES CORPORATION

 

	 By:
		  

			 Name:
 Title:

 Attested: 
  

			
	 By:
		  

	 Name:
 Title:

  
  

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within mentioned Indenture. 

 

			
	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
		
	 By:
		  

			Name:
			Title:

 Dated: _____________________ 

 [REVERSE OF SECURITY] 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued
and to be issued in one or more series under an Amended and Restated Indenture, dated as of May 1, 2001, as it may be supplemented from time to time (herein called the “Indenture”), between the Company and The Bank of New York
Mellon Trust Company, N.A. (formerly The Bank of New York Trust Company, N.A.), as Trustee (successor to The Bank of New York) (herein called the “Trustee”, which term includes any successor trustee under the Indenture with respect
to the series of which this Security is a part), to which Indenture reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof. The Indenture does not limit the aggregate principal amount of the Securities or
the Securities of this series that may be issued thereunder. Additional Securities of this series may be issued from time to time hereafter; provided that any such additional Securities that are not fungible with this Security for U.S. federal
income tax purposes will have a separate CUSIP, ISIN and other identifying number than this Security. 
 The Company may, at its
option, redeem all or any part of this Security. If it chooses to do so, it shall mail or electronically deliver, according to the procedures of the applicable depositary, notice of redemption to the Holder hereof (with a copy to the Trustee and the
Paying Agent) not less than 30 days and not more than 60 days before the Redemption Date. If this Security is redeemed prior to February 22, 2023, the Redemption Price shall equal the greater of: 

(i) 100% of the principal amount of the Securities of this series to be redeemed; or 

(ii) the sum of the present values of the Remaining Scheduled Payments of principal and interest thereon (not including any portion of
such payments of interest accrued as of the Redemption Date), discounted to the Redemption Date on an annual basis (ACTUAL/ACTUAL (ICMA)) at the applicable Comparable Government Bond Rate, plus 15 basis points. 

In each case, the Redemption Price shall also include interest accrued to, but excluding the Redemption Date on the principal balance of the
Securities of this series to be redeemed. 
 In addition, at any time on or after February 22, 2023, the Company may redeem some or all
of the Securities of this series at its option, at a Redemption Price equal to 100% of the principal amount of the Securities of this series to be redeemed, plus, in every such case, interest accrued to, but excluding, the Redemption Date on the
principal balance of the Securities of this series to be redeemed. 
 In any case, the principal amount of this Security remaining
outstanding after a redemption in part shall be €100,000 or an integral multiple of €1,000 in excess thereof. 

 For purposes of the optional redemption provisions of this Security, the following terms will be
applicable: 
 “Comparable Government Bond” means, in relation to any Comparable Government Bond Rate calculation, at
the discretion of an independent investment bank selected by the Company, a German federal government bond whose maturity is closest to the maturity of the Securities of this series to be redeemed, or if such independent investment bank in its
discretion determines that such similar bond is not in issue, such other German federal government bond as such independent investment bank may, with the advice of three brokers of, and/or market makers in, German federal government bonds selected
by the Company, determine to be appropriate for determining the Comparable Government Bond Rate. 
 “Comparable
Government Bond Rate” means, with respect to any Redemption Date, the price, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded upwards), at which the gross redemption yield on the Securities of this
series to be redeemed, if they were to be purchased at such price on the third Business Day prior to the Redemption Date, would be equal to the gross redemption yield on such Business Day of the Comparable Government Bond (as defined above) on the
basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time) on such Business Day as determined by an independent investment bank selected by the Company. 

“Remaining Scheduled Payments” means, with respect to each Security of this series being redeemed, the remaining
scheduled payments of principal and interest on that Security that would be due after the related Redemption Date but for the redemption. If, however, the Redemption Date is not an Interest Payment Date with respect to that Security, the amount of
the next succeeding scheduled interest payment on that Security that would have been due will be deemed reduced by the amount of interest accrued on the Security to the Redemption Date. 

On and after any Redemption Date, interest shall cease to accrue with respect to the Securities of this series, or any portion of the
Securities of this series, called for redemption and for which the Redemption Price has been paid or made available for payment. Prior to any Redemption Date, the Company shall deposit with the Paying Agent money sufficient to pay the Redemption
Price on the Securities of this series to be redeemed on such Redemption Date. If less than all of the Securities of this series are redeemed, the Trustee shall choose the Securities of this series to be redeemed by any method that it deems fair and
appropriate, provided that if the Securities of this series are represented by one or more global Securities, beneficial interests in the Securities of this series will be selected for redemption by Euroclear and Clearstream in accordance with their
respective standard procedures therefor. 
 Notwithstanding Section 1104 of the Indenture, the notice of any redemption referred to
above occurring prior to February 22, 2023, need not set forth the Redemption Price therefor but only the manner of calculation thereof. Promptly after the calculation of such Redemption Price, the Company shall give the Trustee notice thereof
and the Trustee shall not be responsible for such calculation. 

 All payments of principal, premium, if any, and interest in respect of the Securities by the
Company or a Paying Agent on the Company’s behalf will be made free and clear of, and without deduction or withholding for or on account of, any present or future taxes, duties, assessments or other similar governmental charges imposed or
levied by the United States or any political subdivision or taxing authority of or in the United States (collectively, “Taxes”), unless such withholding or deduction is required by law. In the event such withholding or deduction for
Taxes is required by law, subject to the limitations described below, the Company will pay to any Non-U.S. Holder (as defined below) or any foreign partnership such Additional Amounts as may be necessary to ensure that the net amount received by
such Person, after withholding or deduction for such Taxes, will be equal to the amount such Person would have received in the absence of such withholding or deduction. However, no Additional Amounts shall be payable with respect to any Taxes if
such Taxes are imposed or levied for reasons unrelated to the Holder’s or beneficial owner’s ownership or disposition of Securities of this series, nor shall Additional Amounts be payable for or on account of: 

(1) any Taxes which would not have been so imposed, withheld or deducted but for: 

(i) the existence of any present or former connection between the Holder or beneficial owner (or between a fiduciary, settlor, beneficiary,
member or shareholder or other equity owner of, or a Person having a power over, such Holder or beneficial owner, if such Holder or beneficial owner is an estate, a trust, a limited liability company, a partnership, a corporation or other entity)
and the United States, including, without limitation, such Holder or beneficial owner (or such fiduciary, settlor, beneficiary, member, shareholder or other equity owner or Person having such a power) being or having been a citizen or resident or
treated as a resident of the United States, being or having been engaged in a trade or business in the United States, being or having been present in the United States, or having or having had a permanent establishment in the United States; 

(ii) the failure of the Holder or beneficial owner to comply with any applicable certification, information, documentation or other reporting
requirement, if compliance is required under the tax laws and regulations of the United States or any political subdivision or taxing authority of or in the United States to establish entitlement to a partial or complete exemption from such Taxes
(including, but not limited to, the requirement to provide Internal Revenue Service Form W-8BEN, Form W-8BEN-E, Form W-8ECI, Form W-8IMY (and related documentation) or any subsequent versions thereof or successor thereto); or 

(iii) the Holder’s or beneficial owner’s present or former status as a personal holding company or a foreign personal holding company
with respect to the United States, as a controlled foreign corporation with respect to the United States, as a passive foreign investment company with respect to the United States, as a foreign tax exempt organization with respect to the United
States or as a corporation that accumulates earnings to avoid United States federal income tax; 

 (2) any Taxes which would not have been imposed, withheld or deducted but for the failure of the
Holder or beneficial owner to meet the requirements (including the certification requirements) of Section 871(h) or Section 881(c) of the Internal Revenue Code of 1986, as amended (the “Code”); 

(3) any Taxes which would not have been imposed, withheld or deducted but for the presentation by the Holder or beneficial owner of such
Security for payment on a date more than 30 days after the date on which such payment became due and payable or the date on which payment of the Security is duly provided for and notice is given to Holders, whichever occurs later, except to the
extent that the Holder or beneficial owner would have been entitled to such Additional Amounts on presenting such Security on any date during such 30-day period; 

(4) any estate, inheritance, gift, sales, excise, transfer, personal property, wealth or similar Taxes; 

(5) any Taxes which are payable otherwise than by withholding or deduction from a payment on such Security; 

(6) any Taxes which are imposed, withheld or deducted with respect to, or payable by, a Holder that is not the beneficial owner of the
Security, or a portion of the Security, or that is a fiduciary, partnership, limited liability company or other similar entity, but only to the extent that a beneficial owner, a beneficiary or settlor with respect to such fiduciary or member of such
partnership, limited liability company or similar entity would not have been entitled to the payment of an Additional Amount had such beneficial owner, settlor, beneficiary or member received directly its beneficial or distributive share of the
payment; 
 (7) any Taxes required to be withheld or deducted by any Paying Agent from any payment on any Security of this series, if such
payment can be made without such withholding or deduction by at least one other Paying Agent; 
 (8) any Taxes required to be withheld or
deducted where such withholding or deduction is imposed pursuant to European Council Directive 2003/48/EC on the taxation of savings income, or any law implementing or complying with, or introduced in order to conform to, such European Council
Directive; 
 (9) any Taxes imposed, withheld or deducted under Sections 1471 through 1474 of the Code (or any amended or successor
provisions), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code or any fiscal or regulatory legislation, rules or practices adopted pursuant to any
intergovernmental agreement entered into in connection with the implementation of such sections of the Code; 

 (10) any Taxes that would not have been imposed, withheld or deducted but for a change in any
law, treaty, regulation, or administrative or judicial interpretation that becomes effective more than 15 days after the applicable payment becomes due or is duly provided for, whichever occurs later; or 

(11) any combination of items (1), (2), (3), (4), (5), (6), (7), (8), (9) and (10). 

Any Additional Amounts paid on the Securities of this series will be paid in euro. For purposes of this paragraph and the immediately
preceding paragraph, the acquisition, ownership, enforcement, or holding of or the receipt of any payment with respect to a Security of this series will not constitute a connection (A) between the Holder or beneficial owner and the United
States or (B) between a fiduciary, settlor, beneficiary, member or shareholder or other equity owner of, or a Person having a power over, such Holder or beneficial owner if such Holder or beneficial owner is an estate, a trust, a limited
liability company, a partnership, a corporation or other entity and the United States. Except as specifically provided under this paragraph and the immediately preceding paragraph, the Company will not be required to make any payment with respect to
any tax, duty, assessment or other governmental charge imposed by any government or any political subdivision or taxing authority. If the Company is required to pay Additional Amounts with respect to the Securities of this series, the Company will,
in accordance with the Indenture, notify the Trustee and Paying Agent pursuant to an Officers’ Certificate that specifies the Additional Amounts payable and when the Additional Amounts are payable. If the Trustee and the Paying Agent do not
receive such an Officers’ Certificate from the Company, the Trustee and Paying Agent may rely on the absence of such an Officers’ Certificate in assuming that no such Additional Amounts are payable. In addition, the Company undertakes
that, to the extent permitted by law, the Company will maintain a Paying Agent that will not require withholding or deduction of tax pursuant to European Council Directive 2003/48/EC on the taxation of savings income or any law implementing or
complying with, or introduced in order to conform to, such European Council Directive. 
 For purposes of this Security,
(i) “Non-U.S. Holder” means a beneficial owner of a Security that is neither a U.S. Holder (as defined below) nor a partnership for U.S. federal income tax purposes and (ii) “U.S. Holder” means a beneficial owner of a
Security that is, for U.S. federal income tax purposes: (A) an individual who is a citizen or resident of the United States; (B) a corporation (or any other entity treated as a corporation for U.S. federal income tax purposes) created or
organized in or under the laws of the United States, any state within the United States, or the District of Columbia; (C) an estate the income of which is subject to U.S. federal income tax regardless of its source; or (D) a trust
(1) if a court within the United States is able to exercise primary supervision over the trust’s administration and one or more U.S. persons have the authority to control all substantial decisions of the trust, or (2) that has a valid
election in effect under applicable Treasury regulations to be treated as a U.S. person for U.S. federal income tax purposes. 
 The Company
may redeem the Securities of this series at its option, in whole but not in part, at a Redemption Price equal to 100% of the principal amount of the Securities of this series to be redeemed, together with any accrued and unpaid interest on the
Securities of this series to be redeemed to, but excluding, the Redemption Date, at any time, if: (1) the Company has or will become obliged to pay Additional Amounts with respect to such Securities as a result of any change in, or amendment
to, the laws, regulations, treaties, or rulings of the United States 

 
or any political subdivision of or in the United States or any taxing authority thereof or therein affecting taxation, or any change in, or amendment to, the application, official interpretation,
administration or enforcement of such laws, regulations, treaties or rulings (including a holding by a court of competent jurisdiction in the United States), which change or amendment is enacted, adopted, announced or becomes effective on or after
May 18, 2015; or (2) on or after May 18, 2015, any action is taken by a taxing authority of, or any action has been brought in a court of competent jurisdiction in, the United States or any political subdivision of or in the United
States or any taxing authority thereof or therein, including any of those actions specified in clause (1) above, whether or not such action was taken or brought with respect to the Company, or there is any change, amendment, clarification,
application or interpretation of such laws, regulations, treaties or rulings, which in any such case, will result in a material probability that the Company will be required to pay Additional Amounts with respect to such Securities (it being
understood that such material probability will be deemed to result if the written opinion of independent tax counsel described in clause (B) of the second succeeding sentence below to such effect is delivered to the Trustee and the Paying
Agent). Notice of any such redemption will be mailed, or delivered electronically, if held by or on behalf of any depositary, in accordance with such depositary’s customary procedures, at least 30 days but not more than 60 days before the
Redemption Date to each registered Holder of the Securities of this series to be redeemed; provided, however, that the notice of redemption shall not be given earlier than 90 days before the earliest date on which the Company would be
obligated to pay such Additional Amounts if a payment in respect of the Securities of this series was then due. Prior to the mailing or delivery of any notice of redemption pursuant to this paragraph, the Company will deliver to the Trustee and the
Paying Agent: (A) a certificate signed by one of the Company’s officers stating that the Company is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the Company’s right
to so redeem have occurred, and (B) a written opinion of independent tax counsel of nationally recognized standing to the effect that the Company has or will become obligated to pay such Additional Amounts as a result of such change or
amendment or that there is a material probability that the Company will be required to pay Additional Amounts as a result of such action, change, amendment, clarification, application or interpretation, as the case may be. Such notice of redemption,
once delivered by the Company will be irrevocable. 
 This Security is not repayable at the option of the Holder hereof and is not subject
to the operation of any sinking fund. 
 If an Event of Default with respect to Securities of this series shall occur and be continuing, the
principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

The provisions of Section 1402 and Section 1403 of the Indenture relating to defeasance and covenant defeasance, respectively, shall
apply to this Security. Pursuant to Section 1404(5) and Section 1404(6) of the Indenture, any such defeasance or covenant defeasance shall be conditioned on receipt of an Opinion of Counsel relating to the federal income tax consequences
of such defeasance or covenant defeasance. 

 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a
majority in principal amount of all Securities at the time Outstanding to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities at the time Outstanding, on behalf of
the Holders of all Outstanding Securities, to waive compliance by the Company with certain provisions of the Indenture, and contains provisions permitting the Holders of specified percentages in principal amount, in certain instances of the
Outstanding Securities of individual series and in other instances of all Securities at the time Outstanding, to waive on behalf of all of the Holders of Securities of such individual series or of the Holders of all Securities at the time
Outstanding, as the case may be, certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any
proceeding, judicial or otherwise, with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of
Default with respect to the Securities of this series, the Holders of not less than 25% in principal amount, in certain instances of the Securities of this series at the time Outstanding and in other instances of all Outstanding Securities, shall
have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request,
and the Trustee shall not have received from the Holders of not less than a majority in principal amount of Securities of this series at the time Outstanding or of all Outstanding Securities, as the case may be, a direction inconsistent with such
request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof (and premium, if any) or interest hereon on or after the respective due dates expressed herein. 
 No reference
herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay or make provision as provided in Article Fourteen of the Indenture for the
payment of the amount of principal of (and premium, if any) and interest on this Security herein provided, and at the times, place and rate, and in the coin or currency, herein prescribed. 

As provided in the Indenture and subject to certain limitations therein and herein set forth, the transfer of this Security is registrable in
the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of (and premium, if any) and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series,
of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

 The Securities of this series are issuable only in registered form without coupons in
denominations of €100,000 and any integral multiple of €1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series of a different authorized denomination, as requested by the Holder surrendering the same. 
 No service
charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

All terms used in this Security that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 

The following increases or decreases in this Security have been made: 
  

									
	 Date of exchange
	  	Amount of decrease in
principal amount of
this Security	  	Amount of increase in
principal amount of this
Security	  	Principal amount of this
Security following
such decrease or increase	  	Signature of authorized
signatory of Trustee or
Security Custodian

 FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 

PLEASE INSERT SOCIAL SECURITY OR OTHER 
 IDENTIFYING NUMBER OF
ASSIGNEE 
 ____________________________ 

  
  

  
  

(Please print or type name and address, including postal zip code of assignee) 

 
  

the within permanent global Security and all rights thereunder, irrevocably constituting and appointing attorney 

  
  

to transfer said permanent global Security on the books of the Company, with full power of substitution in the premises. 

Dated: __________________ 

NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within permanent global Security in every
particular, without alteration or enlargement or any change whatever, and must be guaranteed by a commercial bank or trust company having its principal office or correspondent in The City of New York or by a member of the New York Stock Exchange.LM_EXHIBIT 10.7_3.31.2015

Exhibit 10.7

LEGG MASON, INC.

1996 Equity Incentive Plan 

NON-QUALIFIED STOCK OPTION AGREEMENT

Legg Mason, Inc. (the “Company”) hereby grants to you an option to purchase shares of the Company’s Common Stock, $.10 par value (the “Shares”), at $____ per share, pursuant to the Legg Mason, Inc. 1996 Equity Incentive Plan (the “Plan”).  This document constitutes your “Award Notification.”  By electronically accepting the award described in this agreement, you are acknowledging your acceptance of the award subject to the restrictions and upon the terms and conditions set forth in this agreement and the Plan.  The number of Shares that may be purchased under the option granted hereby shall be as set forth on the third party website pursuant to which this Award Notification is electronically delivered to you and in the books and records of the Company, which shall control, absent manifest error, in the event of a discrepancy.  The date of grant of the option provided hereby shall for all purposes be May 15, 2015.  This option is intended to be a non-qualified stock option for purposes of the Internal Revenue Code.

This option is subject in all respects to the applicable provisions of the Plan, which is incorporated herein by reference and made a part hereof.  In addition to the terms, conditions and restrictions set forth in the Plan, all terms, conditions and restrictions set forth in this Agreement, including the following, are applicable to the option granted by this Agreement:

(1)    Issuance of the Shares

The Company may postpone the issuance and delivery of any Shares until the completion or amendment of any registration or qualification of the Shares, under any federal or state law, rule or regulation which the Company may determine to be necessary or advisable.  In the event that, at the time of issuance of the Shares to you pursuant to exercise of the option provided by this Agreement, there shall not be in effect a current registration statement under the Securities Act of 1933 (the “Act”) with respect to such issuance, you shall, prior to issuance of the Shares to you (a) represent to the Company, in form satisfactory to counsel for the Company, that you are acquiring the Shares for your own account and not with a view to the resale or distribution thereof, and (b) agree that none of the Shares issued to you pursuant to exercise of the option provided hereby may be sold, transferred or otherwise disposed of unless:  (i) a registration statement under the Act shall be effective at the time of disposition with respect to the Shares sold, transferred or otherwise disposed of; (ii) the Company shall have received an opinion of counsel or other information and representations, satisfactory to it to the effect that registration under the Act is not required by reason of Rule 144 under the Act or otherwise; or (iii) a “no-action” letter shall have been received from the staff of the Securities and Exchange Commission to the effect that such sale, transfer or other disposition may be made without registration.

(2)    Normal Vesting 

 Except as provided in Section (3) below, the option awarded hereby shall vest in 25% increments over a four year period such that you may exercise the option with respect to, and purchase, 25% of the Shares purchasable under your option on each of May 31, 2016, May 31, 2017, May 31, 2018 and May 31, 2019.  If vesting occurs on a non-trading day, vested options may be first exercised on the next trading day.  To the extent not exercised, installments shall accumulate and be exercisable by you in whole or in part during the exercise period described in Section (4) below.

(3)    Accelerated Vesting

(a)    If your employment is terminated as a result of your death or “Permanent Disability,” all of your then unvested option rights shall become vested and exercisable on and after the date of the termination of your employment.  For purposes of this Agreement, you will be considered to have suffered a “Permanent Disability,” if you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in your death or which has lasted or can be expected to last for a continuous period of not less than 12 months.

(b)    In the event that a “Change of Control” occurs and within 12 months of such “Change of Control” (i) your employment is terminated by your employer without “Cause” or (ii) your employment is terminated by you for “Good Reason,” then all of your unvested option rights shall become immediately vested and exercisable on and after the date of termination of your employment.  

For purposes of this Agreement, “Change of Control” means any of the following events: (i) any person, including a “person” as such term is used in Section 14(d)(2) of the Securities Exchange Act of 1934, as amended, acquires, directly or indirectly, beneficial  ownership of securities representing 50.1% or more of the combined voting power of the outstanding equity securities of the Company; (ii) the closing of any merger, consolidation or other reorganization involving the Company with respect to which the stockholders of the Company immediately prior to such reorganization do not hold, directly or indirectly, more than 50% of the combined voting power of the outstanding equity securities of such successor entity immediately following such transaction; (iii) the closing of any transaction involving a sale of assets of the Company that have a total gross fair market value equal to or more than 90% of the total gross fair market value of all of the assets of the Company; (iv) the adoption of any plan or proposal for the liquidation or dissolution of the Company; or (v) within any 12-month period, individuals who, as of May 15, 2015, constitute the board of directors of the Company (the “Incumbent Board”) cease for any reason to constitute at least a majority of such board; provided, however, that any individual becoming a director subsequent to such date whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Company’s board of directors shall be considered as though such individual were a member of the Incumbent Board.  

For purposes of this Agreement, “Good Reason” means (i) a material adverse change in your responsibilities from those in effect prior to the Change of Control and (ii) your principal place of employment is moved more than 50 miles from the location immediately prior to the Change of Control, (iii) your base salary is significantly reduced or (iv) your incentive compensation for a fiscal year is materially reduced from your incentive compensation for the prior fiscal year, and such reduction is not related to a reduction in your responsibilities or either individual or corporate performance.

(c)     If your employment is terminated before the date on which all of your option rights have vested and (i) such termination is due to the elimination of your position in connection with a reduction in workforce by your employer and (ii) such termination of employment is without “Cause”, then all of your unvested option rights shall become vested and exercisable on and after the date of termination of your employment.  

For purposes of this Agreement, “Cause” means any one or more of the following types of behavior by you which the Company or your employer in its sole discretion finds to be sufficient reason to terminate your employment:  (i) any conduct (a) that constitutes Competitive Activity, (b) that breaches any obligation to, or your duty of loyalty to, the Company or your employer, or (c) that is materially injurious to the Company or your employer, monetarily or otherwise; (ii) material violation of, or an act taken by the failure to act which causes the Company or your employer to be in violation of any government statue or regulation, or of the constitution, by-laws, rules or regulations of any securities or commodities exchange or a self-regulatory organization, or of the policies of the Company or your employer; (iii) the entering of an order or decree or the taking of any similar action with respect to you which substantially impairs you from performing your duties or makes you ineligible from being associated with the Company or your employer pursuant to Section 9 of the Investment Company Act of 1940, as amended, or Section 203(f) of the Investment Advisors Act of 1940, as amended; (iv) malfeasance, disloyalty or dishonesty in any material respect; (v) any conviction for a felony: (vi) any failure to devote all professional time to assigned duties and to the business of the Company and your employer; (vii) failure to satisfactorily perform duties, as determined by the Company’s or your employer’s management in its sole discretion, or gross misconduct or gross negligence in the performance of duties; or (viii) failure to remain licensed to perform duties or other act, conduct or circumstance which renders you ineligible for employment with the Company or your employer.  

For purposes of this Agreement, “Competitive Activity” means your engagement in any activity that competes with any of the business operations of the Company or its subsidiaries, as determined by the Compensation Committee (the “Committee”) of the Board of Directors of the Company, in its sole discretion, and shall include, without limitation, representing in any capacity, other than as an outside director, a company that competes with the Company and its subsidiaries.

(d)    If your employment is terminated before the date on which all of your option rights have vested and (i) the reason for such termination is your retirement pursuant to Section 7.1 (or any successor retirement provision) of the Legg Mason & Co., LLC Profit Sharing and 401(k) Plan and Trust, as such plan may be amended from time to time, and (ii) such termination of employment is without Cause, then the unvested portion of your options shall continue to vest in 

accordance with Section (2) of this Agreement, as long as you sign and deliver to the Company a non-compete agreement with the Company within such time as is designated by the Company before each such vesting date and you do not engage in Competitive Activity.  If you engage in Competitive Activity following your retirement, then the portion of your options that are unvested at the time you engage in such activity shall be immediately forfeited.  In the event of your death during the period in which unvested options are continuing to vest under this Section (3)(d), then, as of the date the Company becomes aware of such death, your unvested options shall be 100% vested.

(e)    In addition, the Committee or the Board of Directors of the Company may, in its sole discretion, accelerate the vesting of any part or all of the option rights under this Agreement.

(4)    Option Exercise Period

This option may not be exercised prior to vesting.  Upon the termination of your employment, any options that are not yet vested (after taking into account any accelerated vesting provided for in Section (3) of this Agreement) shall expire immediately.  In the event your employing entity ceases to be an affiliate of the Company, then for purposes of this agreement, you shall be deemed to have terminated employment as of such date. To the extent not exercised, vested options shall expire on May 15, 2023, unless they expire sooner as provided below:

(a)    To the extent not previously exercised, vested options shall expire immediately upon the termination of your employment for cause.

(b)    To the extent not previously exercised, vested options shall expire on the first anniversary of the termination of your employment as a result of your death or Permanent Disability.

(c)    To the extent not previously exercised and provided vesting of options continues following your retirement pursuant to Section (3)(d), vested options shall expire three months after the last vesting date that occurs following your retirement, but not later than any such vesting date as of which you fail to sign and deliver to the Company a non-compete agreement per Section (3)(d) or any date following retirement in which you engage in Competitive Activity. 

(d)    To the extent not previously exercised, vested options shall expire three months after the termination of your employment for any reason other than the termination of your employment for Cause or the termination of your employment as a result of your death or Permanent Disability or, provided options continue to vest thereafter pursuant to Section (3)(d), your retirement.  In the event of your death during the post-employment exercise period, the exercise period shall be extended to the first anniversary of your death.

(5)    Transferability

During your lifetime, this option shall be exercisable only by you and shall not be transferable.  Any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of, or to subject to execution, attachment or similar process, this option contrary to the provisions of this 

Agreement and the Plan, shall be void and of no effect, shall give no right to the purported transferee, and shall result in forfeiture of the option involved in such attempt.  

(6)    Exercise Notice

This option is exercisable solely by written notice to the Company or its designee.  Each such notice shall:

(a)    state the election to exercise the stock option and the number of shares in respect of which it is being exercised;

(b)    be delivered by you or, in the event of your death or permanent disability, by your personal representative; and 

(c)    be accompanied by (i) cash, check, bank draft or money order in the amount of the option price payable to the order of the Company or (ii) certificates for shares of the Company's Common Stock (together with duly executed stock powers) or other written authorization as may be required by the Company to transfer shares of such Common Stock to the Company, with an aggregate value equal to the option price of the Shares being acquired or (iii) a combination of the consideration described in clauses (i) and (ii).  You may transfer shares of Common Stock to pay the option price for shares being acquired pursuant to clause (ii) or (iii) above only if such transferred shares (x) were acquired by you in open market transactions or (y) have been owned by you for longer than six months.  Unless otherwise determined by the Committee subsequent to the date of this Agreement, the value of any shares of the Company's Common Stock delivered in full or partial payment of the option price shall be determined on the basis of the mean between the high and low prices per share on the New York Stock Exchange on the day of delivery of the shares (or the next preceding business day on which trading occurred if there was no trading on the day of delivery).

In addition to the exercise methods described above, you may exercise the option through a procedure whereby you deliver to the Company or its designee an irrevocable notice of exercise in exchange for the Company issuing the shares of the Company’s Common Stock subject to the option to a broker previously designated or approved by the Company (the “Broker”) versus payment of the option price by the Broker to the Company, subject to such rules and procedures as the Committee may determine. 

For all purposes of the Plan, the date of exercise shall be the date on which notice and any required payment shall have been delivered to the Company or its designee.  You shall not have any of the rights of a stockholder with respect to any of the Shares subject to this option until the Shares have been issued to you upon the exercise of the option.

(7)     Clawback Provisions

This award is expressly made subject to the terms of the Legg Mason, Inc. Clawback Policy as adopted by the Committee.  As a result, your unexercised options may be surrendered to 

the Company, or you may be required to pay the Company the gain you received upon exercise of this Award in the situations described below.

In the event of a restatement of the Company’s financial results within three years of original reporting to correct a material error, then, if the Legg Mason, Inc. Board of Directors determines your acts or omissions were a significant contributing factor to the need to issue such restatement and that all or any portion of the option award hereunder, if awarded to you prior to the restatement, would not have been awarded based upon the restated financial results, then you agree to forfeit to the Company, to the extent permitted by applicable law, the unexercised options hereunder or the gain received upon exercise of this option, or portions thereof, that the Board of Directors, in its discretion, determines to be appropriate.  You agree that the Company may enforce the forfeiture by all legal means available, including, without limitation, by withholding the forfeited amount from other sums owed to you by the Company.

In the event that your employment is terminated by the Company for a Clawback Event” (as defined below) or (ii) following the termination of your employment, the Company is or becomes aware that you committed an act that would have given rise to a termination for a Clawback Event, then, in either event, you agree to forfeit to the Company, to the extent permitted by applicable law, the unexercised options hereunder or the gain received upon exercise of this option, or portions thereof, that you received or were awarded after the conduct or omission that gave rise to the Clawback Event and that the Board of Directors, in its discretion, determines to be appropriate.   
        
As used herein, the term “Clawback Event” means (i) your gross negligence, willful misconduct or willful malfeasance in connection with the performance of your job that has materially and adversely affected the Company’s reputation or business, (ii) your willful commission or participation in any violation of any law, rule or regulation applicable to the Company (unless you had a reasonable good faith belief that the act, omission or failure to act in question was not a violation of such law, rule or regulation) and such violation has materially and adversely affected the Company’s reputation or business or your ability to be associated with an investment company or an investment advisor, (iii) your theft, embezzlement or fraud in connection with the performance of your duties for the Company, and (iv) you are convicted of, or plead guilty or nolo contendere to, a crime committed during the course of your employment with, and performance of duties on behalf of, the Company that the Committee, acting in good faith, reasonably determines is likely to have a material and adverse effect on the reputation or business of the Company.

(8)    Delivery of Notices

Any notice to be given to the Company (including notice of exercise of all or part of a stock option) shall be in delivered or mailed to the Company’s Stock Option Plan Administrator or designee.  If mailed, it shall be addressed to the Stock Option Plan Administrator, at 100 International Drive, Baltimore, Maryland  21202, or at such other address as the Company may designate by notice to you.  Any notice given to you shall be addressed to you at your address as reflected on the personnel records of the Company, or at such other address as you may designate 

by notice to the Company.  Notice shall be deemed to have been duly delivered when hand delivered or, if mailed, at the close of business on the day such notice is postmarked.

(9)    Modification of Agreement

This Agreement may be modified only by the Committee or by the Company’s Board of Directors.  No officer or employee of the Company or any of its subsidiaries is authorized to bind the Company to a modification of any of the terms of the Agreement.

LEGG MASON, INC.

By: ______________________
Name: 
Title:

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