# EDGAR Filing Document

**Accession Number:** 0002089271
**File Stem:** 0001628279-26-000049
**Filing Date:** 2026-1
**Character Count:** 905369
**Document Hash:** 2cd1d775530509b5308c9678aa0ec567
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628279-26-000049.hdr.sgml**: 20260303

**ACCESSION NUMBER**: 0001628279-26-000049

**CONFORMED SUBMISSION TYPE**: DRS/A

**PUBLIC DOCUMENT COUNT**: 17

**FILED AS OF DATE**: 20260128

**DATE AS OF CHANGE**: 20260128

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Honeywell Aerospace LLC
- **CENTRAL INDEX KEY:** 0002089271
- **STANDARD INDUSTRIAL CLASSIFICATION:** AIRCRAFT ENGINES & ENGINE PARTS [3724]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 394202057
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** DRS/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 377-08537
- **FILM NUMBER:** 26573409

**BUSINESS ADDRESS:**
- **STREET 1:** 1944 E SKY HARBOR CIR N
- **CITY:** PHOENIX
- **STATE:** AZ
- **ZIP:** 85034
- **BUSINESS PHONE:** 704-627-6200

**MAIL ADDRESS:**
- **STREET 1:** 1944 E SKY HARBOR CIR N
- **CITY:** PHOENIX
- **STATE:** AZ
- **ZIP:** 85034

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Honeywell Aerospace LLC
- **DATE OF NAME CHANGE:** 20250930

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**As confidentially submitted to the U.S. Securities and Exchange Commission on January 28, 2026.**

**This draft registration statement has not been publicly filed with the U.S. Securities and Exchange Commission and all information herein remains strictly confidential.**

File No. 001- <br> 

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Amendment No. 2** 

**to**

**FORM 10**

**GENERAL FORM FOR REGISTRATION OF SECURITIES**

**Pursuant to Section 12(b) or (g) of**

**the Securities Exchange Act of 1934**

**Honeywell Aerospace LLC\***

**(Exact name of Registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Delaware** | **39-4202057** |
| (State or other jurisdiction of<br>incorporation or organization) | (I.R.S. employer<br>identification number) |
| **1944 E Sky Harbor Cir N**<br>**Phoenix, AZ** | **85034** |
| (Address of principal executive offices) | (Zip code) |

---

**[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]**

(Registrant's telephone number, including area code)

**Securities to be registered pursuant to Section 12(b) of the Act:**

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Title of Each Class**<br>**to be so Registered** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Name of Each Exchange on which**<br>**Each Class is to be Registered** |
| **Common Stock, par value $0.01 per share** | **The Nasdaq Stock Market LLC** |

---

**Securities to be registered pursuant to Section 12(g) of the Act: None**

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;Large accelerated filer | &nbsp;&nbsp;&nbsp;☐ | Accelerated filer | ☐ |
| &nbsp;&nbsp;&nbsp;Non-accelerated filer | &nbsp;&nbsp;&nbsp;☒ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

\* The registrant is currently named Honeywell Aerospace LLC. The registrant plans to convert into a corporation and be renamed Honeywell Aerospace Inc. prior to the effective date of the distribution described in this registration statement.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Honeywell Aerospace LLC**

**INFORMATION REQUIRED IN REGISTRATION STATEMENT**

**CROSS-REFERENCE SHEET BETWEEN INFORMATION STATEMENT AND ITEMS OF FORM 10**

Certain information required to be included herein is incorporated by reference to specifically identified portions of the body of the information statement filed herewith as Exhibit 99.1. None of the information contained in the information statement shall be incorporated by reference herein or deemed to be a part hereof unless such information is specifically incorporated by reference.

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp;*Business*.**

The information required by this item is contained under the sections of the information statement entitled "Information Statement Summary," "Risk Factors," "Cautionary Note Regarding Forward-Looking Statements," "The Separation and Distribution," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Business," "Certain Relationships and Related Party Transactions" and "Where You Can Find More Information." Those sections are incorporated herein by reference.

**Item 1A.&nbsp;&nbsp;&nbsp;&nbsp;*Risk Factors*.**

The information required by this item is contained under the section of the information statement entitled "Risk Factors." That section is incorporated herein by reference.

**Item 2.&nbsp;&nbsp;&nbsp;&nbsp;*Financial Information*.**

The information required by this item is contained under the sections of the information statement entitled "Capitalization," "Unaudited Pro Forma Condensed Combined Financial Information," "Summary of Historical and Unaudited Pro Forma Combined Financial Information," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Index to Financial Statements" and the financial statements referenced therein. Those sections are incorporated herein by reference.

**Item 3.&nbsp;&nbsp;&nbsp;&nbsp;*Properties*.**

The information required by this item is contained under the section of the information statement entitled "Business." That section is incorporated herein by reference.

**Item 4.&nbsp;&nbsp;&nbsp;&nbsp;*Security Ownership of Certain Beneficial Owners and Management*.**

The information required by this item is contained under the section of the information statement entitled "Security Ownership of Certain Beneficial Owners and Management." That section is incorporated herein by reference.

**Item 5.&nbsp;&nbsp;&nbsp;&nbsp;*Directors and Executive Officers*.**

The information required by this item is contained under the sections of the information statement entitled "Management" and "Directors." Those sections are incorporated herein by reference.

**Item 6.&nbsp;&nbsp;&nbsp;&nbsp;*Executive Compensation*.**

The information required by this item is contained under the sections of the information statement entitled "Compensation Discussion and Analysis" and "Executive Compensation." Those sections are incorporated herein by reference.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Item 7.&nbsp;&nbsp;&nbsp;&nbsp;*Certain Relationships and Related Transactions*.**

The information required by this item is contained under the sections of the information statement entitled "Management," "Directors" and "Certain Relationships and Related Party Transactions." Those sections are incorporated herein by reference.

**Item 8.&nbsp;&nbsp;&nbsp;&nbsp;*Legal Proceedings*.**

The information required by this item is contained under the section of the information statement entitled "Business—Legal Proceedings." That section is incorporated herein by reference.

**Item 9.&nbsp;&nbsp;&nbsp;&nbsp;*Market Price of, and Dividends on, the Registrant's Common Equity and Related Shareowner Matters*.**

The information required by this item is contained under the sections of the information statement entitled "Dividend Policy," "Capitalization," "The Separation and Distribution" and "Description of Aerospace Capital Stock." Those sections are incorporated herein by reference.

**Item 10.&nbsp;&nbsp;&nbsp;&nbsp;*Recent Sales of Unregistered Securities*.**

The information required by this item is contained under the sections of the information statement entitled "Description of Material Indebtedness" and "Description of Aerospace Capital Stock—Sale of Unregistered Securities." Those sections are incorporated herein by reference.

**Item 11.&nbsp;&nbsp;&nbsp;&nbsp;*Description of Registrant's Securities to be Registered*.**

The information required by this item is contained under the sections of the information statement entitled "Dividend Policy," "The Separation and Distribution" and "Description of Aerospace Capital Stock." Those sections are incorporated herein by reference.

**Item 12.&nbsp;&nbsp;&nbsp;&nbsp;*Indemnification of Directors and Officers*.**

The information required by this item is contained under the section of the information statement entitled "Description of Aerospace Capital Stock—Charter and Bylaw Provisions." That section is incorporated herein by reference.

**Item 13.&nbsp;&nbsp;&nbsp;&nbsp;*Financial Statements and Supplementary Data*.**

The information required by this item is contained under the section of the information statement entitled "Index to Financial Statements" and the financial statements referenced therein. That section is incorporated herein by reference.

**Item 14.&nbsp;&nbsp;&nbsp;&nbsp;*Changes in and Disagreements with Accountants on Accounting and Financial Disclosure*.**

None.

**Item 15.&nbsp;&nbsp;&nbsp;&nbsp;*Financial Statements and Exhibits*.**

***(a)&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements***

The information required by this item is contained under the sections of the information statement entitled "Unaudited Pro Forma Condensed Combined Financial Information" and "Index to Financial Statements" and the financial statements referenced therein. Those sections are incorporated herein by reference.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***(b)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits***

The following documents are filed as exhibits hereto:

---

| | |
|:---|:---|
| **Exhibit Number** | **Exhibit Description** |
| 2.1 | Form of Separation and Distribution Agreement by and between Honeywell International Inc. and Honeywell Aerospace LLC\*\* |
| 3.1 | Form of Amended and Restated Certificate of Incorporation of Honeywell Aerospace Inc.\* |
| 3.2 | Form of Amended and Restated Bylaws of Honeywell Aerospace Inc.\* |
| 10.1 | Form of Transition Services Agreement by and between Honeywell International Inc. and Honeywell Aerospace LLC |
| 10.2 | Form of Tax Matters Agreement by and between Honeywell International Inc. and Honeywell Aerospace LLC\*\* |
| 10.3 | Form of Employee Matters Agreement by and between Honeywell International Inc. and Honeywell Aerospace LLC\*\* |
| 10.4 | Form of Intellectual Property License Agreement by and between Honeywell International Inc. and Honeywell Aerospace LLC |
| 10.5 | Form of Trademark License Agreement by and between Honeywell International Inc. and Honeywell Aerospace LLC\*\* |
| 10.6 | Form of Honeywell Aerospace LLC Long-Term Incentive Plan\*\* |
| 21.1 | List of Subsidiaries\*\* |
| 99.1 | Information Statement of Honeywell Aerospace LLC, preliminary and subject to completion, dated January 28, 2026 |
| 99.2 | Form of Notice of Internet Availability of Information Statement Materials\*\* |

---

____________

\*Previously submitted.

\*\*To be filed by amendment.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**SIGNATURES**

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| HONEYWELL AEROSPACE LLC | HONEYWELL AEROSPACE LLC |
| By: |  |
|  | Name:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |
|  | Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  |

---

Date:

## Exhibit 10.1

**Exhibit 10.1**

**TRANSITION SERVICES AGREEMENT**

BY AND BETWEEN

**HONEYWELL INTERNATIONAL INC.**

AND

**HONEYWELL AEROSPACE INC.**

DATED AS OF

------

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| Article I DEFINITIONS | Article I DEFINITIONS | 1 |
| Section 1.1 | Definitions | 1 |
| Section 1.2 | References; Interpretation | 5 |
| Article II SERVICES | Article II SERVICES | 5 |
| Section 2.1 | Provision of Services | 5 |
| Section 2.2 | Service Amendments and Additions | 9 |
| Section 2.3 | Migration Projects | 10 |
| Section 2.4 | No Management Authority | 10 |
| Section 2.5 | Acknowledgment and Representation | 10 |
| Article III ADDITIONAL ARRANGEMENTS | Article III ADDITIONAL ARRANGEMENTS | 11 |
| Section 3.1 | Cooperation and Access | 11 |
| Section 3.2 | Intellectual Property | 12 |
| Section 3.3 | IT Agreements | 13 |
| Section 3.4 | Certain Supplier Agreements | 14 |
| Article IV COMPENSATION | Article IV COMPENSATION | 14 |
| Section 4.1 | Compensation for Services | 14 |
| Section 4.2 | Payment Terms | 17 |
| Section 4.3 | Disclaimer of Warranties | 18 |
| Section 4.4 | Books and Records | 19 |
| Article V CONFIDENTIALITY | Article V CONFIDENTIALITY | 19 |
| Section 5.1 | Confidential Information | 19 |
| Section 5.2 | Confidentiality Obligations | 19 |
| Section 5.3 | Disclosure Required by Law | 20 |
| Section 5.4 | Disclosure in Connection with Due Diligence | 20 |
| Article VI TERM | Article VI TERM | 20 |
| Section 6.1 | Commencement | 20 |
| Section 6.2 | Termination | 21 |
| Section 6.3 | Service Termination | 21 |
| Section 6.4 | Effect of Termination | 22 |
| Article VII INDEMNIFICATION; LIMITATION OF LIABILITY | Article VII INDEMNIFICATION; LIMITATION OF LIABILITY | 24 |
| Section 7.1 | Indemnification by Aerospace | 24 |
| Section 7.2 | Indemnification by Automation | 24 |

---

------

---

| | | |
|:---|:---|:---|
| Section 7.3 | Indemnification Procedures | 25 |
| Section 7.4 | Exclusion of Other Remedies | 25 |
| Section 7.5 | Other Indemnification Obligations Unaffected | 25 |
| Section 7.6 | Limitation on Liability | 25 |
| Article VIII OTHER COVENANTS | Article VIII OTHER COVENANTS | 27 |
| Section 8.1 | Attorney-in-Fact | 27 |
| Section 8.2 | Further Assurances | 27 |
| Article IX DISPUTE RESOLUTION | Article IX DISPUTE RESOLUTION | 27 |
| Section 9.1 | General | 27 |
| Section 9.2 | Resolution Committee | 27 |
| Section 9.3 | Conduct During Dispute Resolution Process | 28 |
| Article X MISCELLANEOUS | Article X MISCELLANEOUS | 28 |
| Section 10.1 | Title to Equipment; Title to Data | 28 |
| Section 10.2 | Force Majeure | 28 |
| Section 10.3 | Relationship of Parties | 29 |
| Section 10.4 | Complete Agreement; Construction | 29 |
| Section 10.5 | Counterparts | 29 |
| Section 10.6 | Notices | 29 |
| Section 10.7 | Waivers | 31 |
| Section 10.8 | Amendments | 31 |
| Section 10.9 | Assignment | 31 |
| Section 10.10 | Successors and Assigns | 31 |
| Section 10.11 | No Circumvention | 32 |
| Section 10.12 | Subsidiaries | 32 |
| Section 10.13 | Third Party Beneficiaries | 32 |
| Section 10.14 | Title and Headings | 32 |
| Section 10.15 | Governing Law | 32 |
| Section 10.16 | Specific Performance | 32 |
| Section 10.17 | Severability | 32 |
| Section 10.18 | No Duplication; No Double Recovery | 33 |
| Section 10.19 | No Set-Off | 33 |

---

**EXHIBITS:**

**Exhibit A &nbsp;&nbsp;&nbsp;&nbsp;**Services Schedule

**Exhibit B &nbsp;&nbsp;&nbsp;&nbsp;**Data Processing Addendum

**Exhibit C &nbsp;&nbsp;&nbsp;&nbsp;**Excluded Services

**Exhibit D &nbsp;&nbsp;&nbsp;&nbsp;**Designated Work Product

**Exhibit E &nbsp;&nbsp;&nbsp;&nbsp;**Service Coordinators

ii

------

**Exhibit F &nbsp;&nbsp;&nbsp;&nbsp;**IT Agreements

**Exhibit G &nbsp;&nbsp;&nbsp;&nbsp;**Certain Supplier Agreements

iii

------

**TRANSITION SERVICES AGREEMENT**

This TRANSITION SERVICES AGREEMENT (this "**<u>Agreement</u>**"), dated as of&nbsp;&nbsp;&nbsp;&nbsp; (the "**<u>Effective Date</u>**"), is entered into by and between Honeywell International Inc., a Delaware corporation ("**<u>Automation</u>**"), and Honeywell Aerospace Inc. (f/k/a Honeywell Aerospace LLC), a Delaware corporation ("**<u>Aerospace</u>**") (together with Automation, the "**<u>Parties</u>**," and each individually a "**<u>Party</u>**").

**RECITALS**

**WHEREAS**, the Parties, among others, entered into that certain Separation and Distribution Agreement dated as of&nbsp;&nbsp;&nbsp;&nbsp; (as amended, modified or supplemented, and together with all exhibits and schedules thereto, the "**<u>Separation Agreement</u>**");

**WHEREAS**, the Separation Agreement contemplates that Automation and Aerospace will execute this Agreement, and this Agreement is being entered into by the Parties to satisfy the requirements described therein;

**WHEREAS**, Automation desires to provide, or cause to be provided, certain transition services to Aerospace, and Aerospace desires to receive certain transition services from Automation, as more particularly described in this Agreement, for a limited period of time following the Spin-Off;

**WHEREAS**, Aerospace desires to provide, or cause to be provided, certain transition services to Automation, and Automation desires to receive certain transition services from Aerospace, for a limited period of time following the Spin-Off; and

**WHEREAS**, each of Automation and Aerospace desires to reflect the terms of their agreement with respect to such services.

**NOW**, **THEREFORE**, the Parties, intending to be legally bound, hereby agree as follows:

**ARTICLE I**

**<u>DEFINITIONS</u>**

Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Definitions</u>. Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Separation Agreement. As used in this Agreement, the following terms have the respective meanings set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Aerospace Indemnitees</u>**" has the meaning set forth in the Separation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Aerospace Services</u>**" means the Services provided by Aerospace or its Subsidiaries as identified on Part II of <u>Exhibit A</u> hereto.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Affiliate</u>**" means, when used with respect to a specified Person, a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with such specified Person. For the purposes of this definition, "control" (including the terms "controlled by" and "under common control with"), when used with respect to any specified Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or other interests, by Contract or otherwise. It is expressly agreed that no Party or member of either Group shall be deemed to be an Affiliate of the other Party or member of such other Party's Group solely by reason of having one or more directors in common or by reason of having been under common control of Automation or Automation's stockholders prior to, or in case of Aerospace's stockholders, after the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Agreement</u>**" has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Ancillary Agreements</u>**" has the meaning set forth in the Separation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Automation</u>**" has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Automation Indemnitees</u>**" has the meaning set forth in the Separation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Automation Services</u>**" means the Services provided by Automation or its Subsidiaries as identified on Part I of <u>Exhibit A</u> hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Certain Supplier Agreements</u>**" means any contract or agreement of any member of the Automation Group with a Third Party set forth on <u>Exhibit G</u> or mutually agreed by the Parties in writing to constitute a Certain Supplier Agreement during the one (1) year period following the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Confidential Information</u>**" has the meaning set forth in <u>Section 5.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Cost of Services</u>**" means, with respect to each Service, the amount specified with respect to such Service in <u>Exhibit A</u> to be paid by the Service Recipient in respect of such Service to the Service Provider of such Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Data Processing Addendum</u>**" means the data transfer agreement set forth in <u>Exhibit B</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Designated Work Product</u>**" means the work product developed during the term of this Agreement for the Service Recipient's exclusive use as part of the provision of Services hereunder, including as listed or described on <u>Exhibit D</u> or as otherwise agreed in writing between the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Disclosing Party</u>**" has the meaning set forth in <u>Section 5.2</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Dispute</u>**" has the meaning set forth in the Separation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Effective Date</u>**" has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Excluded Services</u>**" has the meaning set forth in <u>Section 2.1(l)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Force Majeure Event</u>**" has the meaning set forth in <u>Section 10.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Group</u>**" means either the Automation Group (as defined in the Separation Agreement, and for purposes of this Agreement, the "**<u>Automation Group</u>**") or the Aerospace Group (as defined in the Separation Agreement, and for purposes of this Agreement, the "**<u>Aerospace Group</u>**"), as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Hourly Services</u>**" has the meaning set forth in <u>Section 4.1(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Hourly Services Expenses</u>**" has the meaning set forth in <u>Section 4.1(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Indemnitee</u>**" means an Automation Indemnitee or an Aerospace Indemnitee, as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Insurance Proceeds</u>**" has the meaning set forth in the Separation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Interruption</u>**" has the meaning set forth in <u>Section 2.1(i)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>IT Agreements</u>**" has the meaning set forth in <u>Section 3.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Migration Work</u>**" has the meaning set forth in <u>Section 2.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Migration Work Request</u>**" has the meaning set forth in <u>Section 2.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Omitted Services</u>**" has the meaning set forth in <u>Section 2.2(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Outside Date</u>**" has the meaning set forth in <u>Section 6.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Partial Service Termination</u>**" has the meaning set forth in <u>Section 6.3(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Party</u>**" and "**<u>Parties</u>**" have the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Personal Data</u>**" has the meaning set forth in the Data Transfer Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Preliminary Dispute Notice</u>**" has the meaning set forth in <u>Section 9.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Prime Rate</u>**" has the meaning set forth in <u>Section 4.2(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Processed</u>**" has the meaning set forth in the Data Transfer Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Receiving Party</u>**" has the meaning set forth in <u>Section 5.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Resolution Committee</u>**" has the meaning set forth in <u>Section 9.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Sales and Services Taxes</u>**" has the meaning set forth in <u>Section 4.1(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Separation Agreement</u>**" has the meaning set forth in the recitals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Service Charge</u>**" has the meaning set forth in <u>Section 4.1(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Service Coordinator</u>**" has the meaning set forth in <u>Section 2.1(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Service Provider</u>**" means any member of the Aerospace Group or the Automation Group, as applicable, in its capacity as the provider of any Services to any member of the Aerospace Group or the Automation Group, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Service Provider Parent</u>**" means, with respect to any Services provided by a Service Provider that is a member of the Automation Group, Automation and, with respect to any Services provided by a Service Provider that is a member of the Aerospace Group, Aerospace.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Service Recipient</u>**" means any member of the Aerospace Group or the Automation Group, as applicable, in its capacity as the recipient of any Services from any member of the Automation Group or the Aerospace Group, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Service Recipient Parent</u>**" means, with respect to any Services provided to a Service Recipient that is a member of the Aerospace Group, Aerospace and, with respect to any Services provided to a Service Recipient that is a member of the Automation Group, Automation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Service Term</u>**" means a period of six (6) months from the Effective Date (or such other period of time that each Service shall be provided hereunder as set forth for each Service on <u>Exhibit A</u> or as mutually agreed in writing by the Parties).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Services</u>**" means the Automation Services and/or the Aerospace Services, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Shutdown</u>**" has the meaning set forth in <u>Section 2.1(h)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Sub-Contractor</u>**" has the meaning set forth in <u>Section 2.1(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Tax</u>**" has the meaning set forth in the Tax Matters Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Termination Charges</u>**" has the meaning set forth in <u>Section 6.4(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Third Party</u>**" means any Person other than Automation, Aerospace and their respective Affiliates.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Third Party Claim"</u>** has the meaning set forth in the Separation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbb)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Third Party Expenses</u>**" has the meaning set forth in <u>Section 4.1(b)</u>.

Section 1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>References; Interpretation</u>. For the purposes of this Agreement, (a) words in the singular shall be held to include the plural and vice versa, and words of one gender shall be held to include the other gender as the context requires; (b) references to the terms "Article," "Section," "paragraph," "clause," "Exhibit" and "Schedule" are references to the Articles, Sections, paragraphs, clauses, Exhibits and Schedules to this Agreement unless otherwise specified; (c) the terms "hereof," "herein," "hereby," "hereto," and derivative or similar words refer to this entire Agreement, including the Schedules and Exhibits hereto; (d) references to "$" shall mean U.S. dollars; (e) the word "including" and words of similar import when used in this Agreement shall mean "including without limitation," unless otherwise specified; (f) the word "or" shall not be exclusive (unless the context indicates otherwise); (g) references to "written" or "in writing" include in electronic form; (h) the Parties have each participated in the negotiation and drafting of this Agreement, and except as otherwise stated herein, if an ambiguity or question of interpretation should arise, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or burdening any Party by virtue of the authorship of any of the provisions in this Agreement; (i) a reference to any Person includes such Person's successors and permitted assigns; (j) any reference to "days" means calendar days unless Business Days are expressly specified; (k) when calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded and if the last day of such period is not a Business Day, the period shall end on the next succeeding Business Day; (l) any statute or Contract defined or referred to herein means such statute or Contract as from time to time amended, modified or supplemented, unless otherwise specifically indicated; (m) the use of the phrases "the date of this Agreement," "the date hereof," "of even date herewith" and terms of similar import shall be deemed to refer to the date set forth in the preamble to this Agreement; (n) the phrase "ordinary course of business" shall be deemed to be followed by the words "consistent with past practice" whether or not such words actually follow such phrase; (o) where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning; and (p) any consent given by any party hereto pursuant to this Agreement shall be valid only if contained in a written instrument signed by such Party.

**ARTICLE II**

**<u>SERVICES</u>**

Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Provision of Services</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Commencing as of the Effective Date, (x) (i) Automation shall, and shall cause the applicable members of the Automation Group to, provide or otherwise make available, as a Service Provider under this Agreement, to Aerospace and the applicable members of the Aerospace Group, the Services, and (ii) Aerospace shall, and shall cause the applicable members of the Aerospace Group to, pay, perform, discharge and satisfy, as and when due, its and their respective obligations as the Service Recipient under this Agreement, in each case in accordance

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with the terms of this Agreement, and (y) (i) Aerospace shall, and shall cause the applicable members of the Aerospace Group to, provide or otherwise make available, as a Service Provider under this Agreement, to Automation and the applicable members of the Automation Group, the Services, and (ii) Automation shall, and shall cause the applicable members of the Automation Group to, pay, perform, discharge and satisfy, as and when due, its and their respective obligations as the Service Recipient under this Agreement, in each case in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each Service Recipient and each Service Provider shall cooperate in good faith with each other in connection with the performance of the Services hereunder. Each of Automation and Aerospace agrees to appoint an employee representative (each such representative, a "**<u>Service Coordinator</u>**") who will have overall responsibility for implementing, managing and coordinating the Services pursuant to this Agreement on behalf of Automation and Aerospace, respectively. Initially, the Service Coordinators will be the individuals set forth on <u>Exhibit E</u>. Either Party may change its designated Service Coordinator at any time upon notice given to the other Party in accordance with <u>Section 10.6</u>. The Service Coordinators will consult and coordinate with each other on a regular basis, and no less frequently than monthly, during the term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Each Service Provider shall determine the personnel who shall perform the Services to be provided by it. All personnel providing Services will remain at all times, and be deemed for all purposes to be, employees or representatives solely of the Service Provider (or its Affiliates or Sub-Contractors) responsible for providing such Services, and will not be deemed employees or representatives of the Service Recipient as a result of this Agreement or the provision of Services hereunder or in connection herewith. Each Service Provider (or its Affiliates or Sub-Contractors) will be solely responsible for payment of (i) all compensation, (ii) all disability, withholding and other employment taxes and (iii) all medical benefit premiums, vacation pay, sick pay and other employee benefits payable to or with respect to personnel who perform Services on behalf of such Service Provider. All such personnel will be under the sole direction, control and supervision of the applicable Service Provider, and such Service Provider has the sole right to exercise all authority with respect to the employment, substitution, termination, assignment and compensation of such personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Each Service Provider may, at its option, from time to time, delegate or subcontract any or all of its obligations to perform Services under this Agreement to any one or more of its Affiliates, or engage the services of other professionals, consultants or other third parties who are not Affiliates of Service Provider (each, a "**<u>Sub-Contractor</u>**"), in connection with the performance of the Services; <u>provided</u>, <u>however</u>, that (i) subject to <u>Section 7.6(e)</u>, the Service Provider shall use the same degree of care in selecting any Sub-Contractor as it would if it was selecting such Sub-Contractor to provide similar services to Service Provider and shall remain ultimately responsible for ensuring that its obligations with respect to the nature, scope, quality and other aspects of the Services are satisfied with respect to any Services provided by any such Affiliate or Sub-Contractor and shall be liable for any failure of an Affiliate or Sub-Contractor to so satisfy such obligations (or if an Affiliate or Sub-Contractor otherwise breaches any provision hereof) and (ii) any such Sub-Contractor agrees in writing to be bound by

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confidentiality provisions at least as restrictive to it as the terms of <u>Article V</u> of this Agreement. Except as agreed by the Parties in <u>Exhibit A</u> or otherwise in writing, and subject to <u>Section 2.1(f)</u>, any costs associated with engaging the services of a Sub-Contractor shall not affect the Cost of Services payable by the Service Recipient under this Agreement, and the Service Provider shall remain solely responsible with respect to payment for such Sub-Contractor's costs, fees and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;The Services shall be performed in substantially the same manner, scope, time frame, nature and quality, with the same care, and to the same extent and service level as such Services (or substantially similar services) were provided to the Aerospace Business or the Automation Business, as applicable, during the twelve (12) months immediately prior to the Effective Date, unless the Services are being provided by a Sub-Contractor who is also providing the same services to the Service Provider or a member of such Service Provider's Group, in which case the Services shall be performed for the Service Recipient in the same manner, scope, time frame, nature and quality, with the same care, and to the same extent and service level as they are being performed for the Service Provider or such member of such Service Provider's Group, as applicable. If the Service Provider has not provided such Services (or substantially similar services) to the Aerospace Business or the Automation Business, as applicable, as of immediately prior to the Effective Date and such Services are not being performed by a Sub-Contractor who is also providing the same services to such Service Provider's Group, then the Services shall be performed in a competent and professional manner consistent with industry standards. The Services shall be used solely for the operation of the Aerospace Business or the Automation Business, as applicable, for substantially the same purpose as used by the Service Recipient during the twelve (12) months immediately prior to the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;The Parties acknowledge that any Service Provider may make changes from time to time in the manner of performing Services (including in respect of those Services provided by a Sub-Contractor) if the Service Provider is making similar changes in performing the same or substantially similar Services for itself or other members of its Group; <u>provided</u>, <u>however</u>, that, unless expressly contemplated in <u>Exhibit A</u>, such changes shall not materially affect the Cost of Services for such Service payable by the Service Recipient under this Agreement or materially decrease the manner, scope, time frame, nature, quality or level of the Services provided to the Service Recipient, except (i) upon prior written approval of the Service Recipient, which approval shall not be unreasonably withheld, conditioned or delayed and (ii) any actual and reasonable increase to the Service Provider in the cost of providing a Service may be charged to the Service Recipient on a pass-through basis to the extent such actual and reasonable increase is applied on a non-discriminatory basis as compared to the Service Provider and the other members of its Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Nothing in this Agreement shall be deemed to require the provision of any Service by any Service Provider (or any Affiliate or Sub-Contractor of a Service Provider) to the Service Recipient to the extent (i) the provision of such Service would reasonably be expected to require the Consent of any Person (including any Governmental Authority), whether under applicable Law, by the terms of any contract to which such Service Provider or any other member of its Group is a party or otherwise, unless and until, subject to the remainder of this

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<u>Section 2.1(g)</u>, such Consent has been obtained; <u>provided</u>, <u>however</u>, that such Service Provider shall use commercially reasonable efforts to obtain the Consent of any Person necessary for the provision of such Service and the performance of such Service Provider's obligations pursuant to this Agreement, or (ii) the provision of such Service to the Service Recipient would contravene or constitute a violation of any Law. The Parties agree to cooperate in good faith and use commercially reasonable efforts to obtain any necessary Consents required under any existing contract or agreement with a Third Party to allow the applicable Service Provider to perform, or cause to be performed, the applicable Services required to be provided hereunder. Any Third Party fees or expenses incurred in connection with obtaining any such Consents shall be paid by the Service Recipient; <u>provided</u>, <u>however</u>, that any such fees or expenses which individually or in the aggregate exceed &nbsp;&nbsp;&nbsp;&nbsp;shall require the prior written consent of Automation (if the Service Recipient(s) are members of the Automation Group) or Aerospace (if the Service Recipient(s) are members of the Aerospace Group). In the event that the Consent of any Person, to the extent required in order for the Service Provider to provide Services, is not obtained reasonably promptly (any in any event within ninety (90) days) after the Effective Date by the Service Provider, or the provision of any Service to the Service Recipient hereunder would constitute a violation of Law, the Service Provider shall notify the Service Recipient and the Service Provider is excused from providing the Service to the extent it requires such unobtainable Consent or would constitute a violation of Law; <u>provided</u> that the Parties shall cooperate and use commercially reasonable efforts to devise an alternative manner reasonably satisfactory to both Parties for the provision of the affected Services that would not require such Consent or violate such Law, with such alternative manner (including the Cost of Services associated therewith) subject to mutual agreement of the Parties in writing. If the Parties elect such an alternative manner, the Service Provider shall provide the Services in such alternative manner and the Cost of Services for such Services shall be adjusted accordingly. In addition, notwithstanding anything to the contrary herein, the Service Provider (and the Affiliates and Sub-Contractors of the Service Provider) will not be required to perform or to cause to be performed any of the Services for the benefit of any Third Party or any other Person other than the Service Recipient and its Affiliates. To the extent that any Third Party proprietor of information or software to be disclosed or made available to any Service Recipient in connection with performance of the Services hereunder requires a specific form of non-disclosure agreement as a condition to its Consent to use the same for the benefit of the Service Recipient, or to permit the Service Recipient access to such information or software, the Service Recipient shall, as a condition to the receipt of such portion of the Services, execute (and shall cause its employees and Affiliates to execute, if required) any such form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;If a Service Provider determines that it is necessary or appropriate to temporarily suspend a Service due to scheduled or emergency maintenance, modification, repairs, alterations or replacements (any such event, a "**<u>Shutdown</u>**"), such Service Provider shall use commercially reasonable efforts to provide the Service Recipient with reasonable prior notice of such Shutdown (including information regarding the nature and the projected length of such Shutdown), and such Service Provider shall use commercially reasonable efforts to minimize any impact on the provision of Services caused by such Shutdown.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The Parties acknowledge that there may be unanticipated temporary interruptions in the provision of a Service, in each case for a period of less than forty-eight (48) hours (any such event, an "**<u>Interruption</u>**"). Each Service Provider shall use commercially reasonable efforts to provide the Service Recipient with notice of such Interruption as soon as possible (including information regarding the nature and the projected length of such Interruption), and such Service Provider shall use commercially reasonable efforts to minimize any impact on the provision of Services caused by such Interruption. Such Service Provider shall not be excused from performance if it fails to use commercially reasonable efforts to remedy the situation causing such Interruption as promptly as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;Neither Party nor any of their respective Affiliates shall have any obligation to purchase, upgrade, enhance or otherwise modify any computer hardware, software or network environment currently used by such Party or such Party's Affiliates, or to provide any support or maintenance services for any computer hardware, software or network environment that has been upgraded, enhanced or otherwise modified from the computer hardware, software or network environments that are currently used by such Party or such Party's Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary herein, the Services shall not include, and a Service Provider shall have no obligation to provide hereunder, any legal advice, tax advice, financial advice, accounting advice, or any other services unless specifically set forth on <u>Exhibit A</u> (but, in each case, excluding any services expressly identified on <u>Exhibit C)</u> (the "**<u>Excluded Services</u>**").

Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Service Amendments and Additions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Within sixty (60) days following the Effective Date, any Service Recipient may request the applicable Service Provider to provide services that (i) were provided to the Automation Business and the Aerospace Business, as applicable, during the twelve (12) months immediately prior to the Effective Date, are reasonably necessary for the operation of the Automation Business or the Aerospace Business, as applicable, as conducted during the twelve (12) months immediately prior to the Effective Date and are not Excluded Services (any such validly requested services, "**<u>Omitted Services</u>**"). Any request for an Omitted Service shall be in writing and shall specify, as applicable, (A) the type and the scope of the requested service, (B) who is requested to perform the requested service, (C) where and to whom the requested service is to be provided, and (D) the proposed term for the requested service. A Service Provider will consider such requests in good faith, and the Parties shall discuss in good faith the terms under which Omitted Services may be provided. If an Omitted Service would not require Service Provider to allocate resources materially in excess of its ordinary course resources used prior to/as of the Effective Date, and cannot readily be provided by Service Recipient or a Third Party, then Service Provider must use commercially reasonable efforts to provide the Omitted Service subject to mutual agreement of the Parties on the terms of the Omitted Service (including applicable service fees) following good faith negotiations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;In the event that the Service Provider agrees to provide Omitted Services, then the Parties shall in good faith negotiate an amendment to <u>Exhibit A</u>, which will describe in detail the service, project scope, term, price and payment terms to be charged for such Omitted

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Services. Once agreed to in writing, the amendment to <u>Exhibit A</u> shall be deemed part of this Agreement as of such date and such Omitted Services shall be deemed "Services" provided hereunder, in each case subject to the terms and conditions of this Agreement; <u>provided</u>, <u>however</u>, that the Service Provider shall not be required to provide any Omitted Services, at any price, that would prevent, or be reasonably likely to prevent, or be inconsistent with the qualification of the Distribution for its Intended Tax Treatment (as defined in the Tax Matters Agreement).]

Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Migration Projects</u>. Prior to the end of the applicable Service Term, each Service Provider will provide the Service Recipient (subject to the remainder of this <u>Section 2.3</u>), upon written request from the Service Recipient (the "**<u>Migration Work Request</u>**"), with such reasonable support and cooperation as may be necessary to migrate the Services to the Service Recipient's internal organization or to a Third Party provider (the "**<u>Migration Work</u>**"), including, without limitation, exporting and providing (subject to applicable Law and the Data Transfer Agreement) all relevant data and information of the applicable Service Recipient from the systems of the applicable Service Provider or any party performing the Services on its behalf. After the Service Provider receives a Migration Work Request, the Parties shall meet to discuss and agree on the scope and cost of the Migration Work, taking into consideration the Service Provider's then-available resources (and for clarity, the Service Provider shall not be obligated to perform such Migration Work unless and until the Parties, who shall act in good faith, so mutually agree on such scope and costs of such Migration Work). Where required for migrating the Services in connection with Migration Work, the Service Recipient's personnel will be granted reasonable access to the respective facilities of the Service Provider during normal business hours. Migration Work may be out-sourced to a Third Party service provider (including those involving conversion programs or other programming, or extraordinary management supervision or coordination); <u>provided</u> that the outsourcing Party shall be responsible for the performance or non-performance of such Third Party service provider. The applicable Service Recipient shall pay its internal costs incurred in connection with all Migration Work performed by its personnel, and the out of pocket costs of the Service Provider and the cost of all Third Party providers engaged in completing a Migration Work all shall be charged by such Service Providers to the Service Recipient (or by the Service Provider to the Service Recipient on a pass-through basis). For the avoidance of doubt, any portion of the cost of Migration Work associated with the setup of the Service Recipient's data warehousing infrastructure or hosting environment shall be charged by the Service Provider to the Service Recipient on a pass-through basis.

Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>No Management Authority</u>. No Service Provider (or any Affiliate or Sub-Contractor of the Service Provider) shall be authorized by, or shall have any responsibility under, this Agreement to manage the affairs of the business of any Service Recipient, or to hold itself out as an agent or representative of the Service Recipient.12

Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Acknowledgment and Representation</u>. Each Party understands that the Services provided hereunder are transitional in nature. Each Party understands and agrees that the other Party is not in the business of providing Services to Third Parties and, except as set forth in <u>Section 6.2</u>, that neither Party has any interest in continuing (i) any Service beyond the Service Term for such Service or (ii) this Agreement beyond the expiration of all Service Terms,

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the Outside Date, or the earlier termination of all Services in accordance with <u>Article VI</u>. As a result, the Parties have allocated responsibilities and risks of loss and limited liabilities of the Parties as stated in this Agreement based on the recognition that each Party is not in the business of providing Services to non-Affiliates. Such allocations and limitations are fundamental elements of the basis of the bargain between the Parties and neither Party would be able or willing to provide the Services without the protections provided by such allocations and limitations. During the term of this Agreement, each Service Recipient agrees to work diligently and expeditiously to establish its own logistics, infrastructure and systems to enable a transition to its own internal organization or other Third Party providers of the Services and agrees to use its reasonable good faith efforts to reduce or eliminate its and its Affiliates' dependency on the Service Provider's provision of the Services as soon as is reasonably practicable.

Section 2.6&nbsp;&nbsp;&nbsp;&nbsp;**<u>Data Processing Addendum</u>**. The Data Processing Addendum set forth in Exhibit C shall govern any processing of Personal Data in connection with the provision of the Services hereunder. The Parties shall, as reasonably requested by the other Party, execute all further documents as are reasonably necessary to comply with applicable Privacy Laws in connection with the provision and receipt of the Services.

**ARTICLE III**

**<u>ADDITIONAL ARRANGEMENTS</u>**

Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Cooperation and Access</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Service Recipient shall cooperate with the Service Provider to the extent necessary or appropriate to facilitate the performance of the Services in accordance with the terms of this Agreement. Without limiting the generality of the foregoing, (i) each Party shall make available on a timely basis to the other Party all information and materials requested by such Party to the extent reasonably necessary for the performance or receipt of the Services, (ii) each Party shall, and shall cause the members of its Group to, upon reasonable notice, give or cause to be given to the other Party and its Affiliates and Sub-Contractors reasonable access, during regular business hours and at such other times as are reasonably required, to the relevant premises and personnel to the extent reasonably necessary for the performance or receipt of the Services and (iii) each Party shall, and shall cause the members of its Group to, give the other Party and its Affiliates and Sub-Contractors reasonable access to, and all necessary rights to utilize, such Party's, and its Group's, information, facilities, personnel, assets, systems and technologies to the extent reasonably necessary for the performance or receipt of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each Party shall (and shall cause the members of its Group and its personnel and the personnel of its Affiliates and Sub-Contractors providing or receiving Services to): (i) not attempt to obtain access to or use any information technology systems of the other Party or any member of the other Party's Group, or any Confidential Information, Personal Data or competitively sensitive information owned, used or Processed by the other Party, except where it has been granted in writing the right to do so or, to the extent reasonably necessary to do so, to provide or receive the Services; (ii) maintain reasonable security measures to protect the systems of the other Party and the members of its Group to which it has access pursuant to this Agreement from access by unauthorized Third Parties; (iii) comply with applicable Laws and all

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of the other Party's security rules, access agreements, and procedures for restricting access and use, when allowed, to such other Party's information technology systems; (iv) when on the property of the other Party or any of its Affiliates, or when given access to any facilities, infrastructure or personnel of the other Party or any of its Affiliates, follow applicable Laws and all of the other Party's policies and procedures concerning health, safety, conduct and security which are made known to the Party receiving such access from time to time; (v) limit each user's access to information for which each user has a *bona fide* business need to access; and (vi) not disable, damage or erase or disrupt, interfere with or impair the normal operation of the information technology systems of the other Party or any member of its Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Each Service Provider shall: (i) notify the Service Recipient of any confirmed misuse, disclosure or loss of, or inability to account for, any Personal Data or any confidential or competitively sensitive Information, and any confirmed unauthorized access to the Service Provider's facilities, systems or network, in each case, solely to the extent related to the Service Recipient; (ii) investigate such confirmed security incidents and reasonably cooperate with Service Recipient's incident response team, supplying logs and other necessary information to mitigate and limit the damages resulting from such a security incident; and (iii) subject to applicable Law, use commercially reasonable efforts to comply with any reasonable requests to assist the Service Recipient with its electronic discovery obligations related to Services provided to the Service Recipient; <u>provided</u> that the Service Recipient agrees to reimburse the Service Provider for time spent and actual travel expenses reasonably incurred for such response.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;In the event of a security breach that relates to the Services, the Parties shall, subject to any applicable Law, reasonably cooperate with each other regarding the timing and manner of (i) notification to their respective customers, potential customers, employees or agents concerning a breach or potential breach of security and (ii) disclosures to appropriate Governmental Authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this Agreement (but subject to the following proviso), any Personal Data transferred or otherwise made available to the other Party in connection with the Services shall be subject to the Data Transfer Agreement, and each Party agrees to abide by the applicable provisions thereof, to the extent related to such data; <u>provided</u>, <u>however</u>, that any Personal Data provided by a Service Recipient to a Service Provider under this Agreement shall only be used to the extent reasonably necessary for the Service Provider to provide Services and solely for the applicable term of such Services.

Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Party (such Party in its capacity as "<u>Licensor</u>"), on behalf of itself and its Affiliates, hereby grants to the other Party (such Party in its capacity as "<u>Licensee</u>") a non-exclusive, nontransferable, worldwide, royalty-free, non-sublicensable (other than to the members of the Licensee's Group and Sub-Contractors providing or receiving Services under this Agreement) license under the Intellectual Property Rights owned or freely sublicensable (without payment or other obligation by the applicable Licensor or its Affiliates) by the Licensor or its Affiliates, solely for the purposes of the Licensee and the members of its Group to perform their obligations hereunder or receive the Services provided hereunder and for the use and

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exploitation of deliverables provided as part of the Services in a manner consistent with the purpose for which those deliverables were provided, as applicable. The term of the foregoing license shall continue only during the term of this Agreement, <u>provided</u> that the term of such license shall be perpetual with respect to any Intellectual Property Rights to the extent necessary for the use or exploitation of Designated Work Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms of the Separation Agreement, each Service Provider acknowledges and agrees that the Designated Work Product is and shall be the exclusive property of the applicable Service Recipient. The Service Provider acknowledges and agrees that, to the fullest extent permitted under applicable Law, the Designated Work Product is a "work made for hire," as that phrase is defined in the Copyright Act of 1976 (17 U.S.C. §101), for the Service Recipient. To the extent title to any Designated Work Product vests in the Service Provider by operation of Law, Service Provider hereby assigns (and shall cause any such other Service Provider, and any Affiliate or Sub-Contractor of such Service Provider, to assign) to the Service Recipient all right, title and interest in and to such Designated Work Product (including any Intellectual Property Rights constituting Designating Work Product), and the Service Provider shall (and shall cause any Affiliate or Sub-Contractor of such Service Provider to) provide such assistance and execute such documents as the Service Recipient may reasonably request to assign to the relevant Service Recipient all right, title and interest in and to such work product. Each Service Recipient acknowledges and agrees that it will acquire no right, title or interest to any work product resulting from the provision of the Services hereunder that is not Designated Work Product, and such other work product shall remain the exclusive property of the Service Provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Parties acknowledge that it may be necessary for each of them to make proprietary or Third Party software available to the other in the course and for the purpose of performing or receiving Services (as applicable), subject to <u>Section 2.1(h)</u> in the case of Third Party software. Each Party (i) shall comply with all known license terms and conditions applicable to any and all proprietary or Third Party software made available to such Party by the other Party in the course of the provision or receipt (as applicable) of Services hereunder and (ii) agrees that it shall use reasonable efforts to identify and provide to the other Party a copy of the applicable license terms (or, solely with respect to open source software or other software with publicly available license terms, information sufficient to direct such other Party to a copy thereof) for any and all such proprietary or Third Party software first made available to such other Party as of or after the Effective Date, solely to the extent such provision would not violate the providing Party's duty of confidentiality owed to any Third Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Except as expressly specified in this <u>Section 3.2</u>, nothing in this Agreement will be deemed to grant one Party, by implication, estoppel or otherwise, any ownership rights in any Intellectual Property Rights owned by the other Party (or any Affiliate or Sub-Contractor of the other Party).

Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>IT Agreements</u>. The Service Recipient acknowledges and agrees that the Services provided by the Service Provider through Third Parties or using Third Party Intellectual Property are subject to the terms and conditions of any applicable agreements between the

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Service Provider and such Third Parties (such agreements, the "**<u>IT Agreements</u>**"), as set forth on <u>Exhibit F</u>. The Service Provider shall use commercially reasonable efforts to obtain any Consent of any Person that may be necessary for the performance of the Service Provider's obligations pursuant to this Agreement in accordance with <u>Section 2.1(h)</u> (it being understood that the Service Recipient shall only be granted access to the services provided under IT Agreements during the term of this Agreement, and shall thereafter be responsible for obtaining its own standalone licenses with the applicable Third Party providers).

Section 3.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Certain Supplier Agreements</u>. For a period of one (1) year following the Effective Date, Automation shall, and shall cause the members of the Automation Group to, cooperate in any reasonable and permissible arrangement to provide that Aerospace and the other members of the Aerospace Group shall receive the interest in the benefits and obligations under the Certain Supplier Agreements in accordance with the provisions of such Certain Supplier Agreement. Payments due to a Third Party for use of the Certain Supplier Agreements by the Aerospace Business shall either, at Automation's sole option, be (i) paid by the member of the Aerospace Group receiving the benefit of such Certain Supplier Agreement or (ii) paid by a member of the Automation Group and charged by Automation to Aerospace on a pass-through basis. Any internal or Third Party costs incurred by Automation in connection with Automation's cooperation in accordance with this <u>Section 3.4</u> shall be charged by Automation to Aerospace on a pass-through basis. Without limiting Aerospace's obligations under <u>Article VIII</u>, Aerospace shall indemnify and hold harmless any member of the Automation Group party to such Certain Supplier Agreement for any Liability arising out of, in connection with or by reason of Aerospace's use of the Certain Supplier Agreements and Automation's cooperation in accordance with this <u>Section 3.4</u>.

**ARTICLE IV**

**<u>COMPENSATION</u>**

Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Compensation for Services</u>. In each case except as expressly provided in <u>Exhibit A</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;As compensation for each Service rendered pursuant to this Agreement, Service Recipient Parent (on behalf of the Service Recipients who are members of its Group) shall be required to pay to Service Provider Parent (on behalf of the Service Providers who are members of its Group) a fee for each Service provided to any members of the Service Recipient Parent's Group equal to the Cost of Services specified for such Service in <u>Exhibit A</u> (each fee, together with any applicable Third Party Expenses and Hourly Services Expenses, constituting a "**<u>Service Charge</u>**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;For Services with fees determined on an hourly basis (the "**<u>Hourly Services</u>**"), the Cost of Services are exclusive of any Third Party fees, costs and expenses that may be incurred by the Service Provider or any Sub-Contractor in connection with performing the Services (such fees, costs and expenses, "**<u>Third Party Expenses</u>**"). All of the fees determined on an hourly basis described in this <u>Section 4.1(b)</u> ("**<u>Hourly Services Expenses</u>**") shall be charged by the Service Provider Parent (on behalf of the Service Providers who are members of its Group) to the Service Recipient Parent (on behalf of the Service

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Recipients who are members of its Group) on a pass-through basis. For the avoidance of doubt, the Hourly Services Expenses shall be consistent with the Service Provider Parent's general approach with respect to such types of costs and expenses; <u>provided</u> that with respect to any Service, the Service Recipient Parent's prior written approval shall be required to the extent that Hourly Services Expenses exceed fifteen percent (15%) of the Service Charge paid and payable to the Service Provider Parent (on behalf of the Service Providers who are members of its Group) for such Service in any calendar quarter. At Service Provider Parent's option, Third Party Expenses may be designated as pass-through charges to be paid directly by Service Recipient Parent (on behalf of the Service Recipients who are members of its Group) to the applicable Third Party or may be initially paid by Service Provider Parent (on behalf of the Service Providers who are members of its Group) and invoiced to Service Recipient Parent in accordance with <u>Section 4.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;The Service Charge shall be exclusive of Taxes. The amount of any and all sales, value-added, goods and services or similar Taxes that are assessed, imposed, sustained, incurred, levied and measured on or by: (i) the cost, value or price of Services provided by the applicable Service Provider under this Agreement or (ii) the applicable Service Provider's cost of acquiring property or services used or consumed by such Service Provider in providing Services under this Agreement ("**<u>Sales and Service Taxes</u>**") shall be borne by the applicable Service Recipient Parent or its applicable Subsidiary. To the extent such Sales and Service Taxes are borne by the Service Provider or a member of its Group, such Taxes shall be promptly paid to the Service Provider Parent or its applicable Subsidiary by the Service Recipient Parent or its applicable Subsidiary in accordance with <u>Section 4.2</u> or as otherwise mutually agreed in writing by the Parties. For the avoidance of doubt, such payment shall be in addition to the Service Charge, without duplication of any applicable Cost of Services set forth in <u>Exhibit A</u>. Notwithstanding the foregoing, (i) in the case of value-added Taxes, neither the Service Recipient Parent nor its Subsidiaries shall be obligated to pay such Taxes, unless the Service Provider Parent or its applicable Subsidiary has issued to the Service Recipient Parent or its applicable Subsidiary a valid value-added Tax invoice in respect thereof, and (ii) in the case of all Sales and Service Taxes, neither the Service Recipient Parent nor its Subsidiaries shall be obligated to pay such Taxes if and to the extent that the Service Recipient Parent or its applicable Subsidiaries have provided any valid exemption certificates or other applicable documentation that would eliminate or reduce the obligation to collect or pay such Taxes, to the extent permitted by applicable Law. The Parties shall cooperate in good faith (including by using commercially reasonable efforts to establish local subcontracting and/or payment arrangements between Service Provider Parent's relevant Subsidiaries and Service Recipient Parent's relevant Subsidiaries) in order to (i) reduce or eliminate any Sales and Service Taxes and (ii) maximize the ability to obtain a credit for, or refund of, Sales and Service Taxes. At the reasonable written request and sole expense of the Service Recipient Parent (or its applicable Subsidiary), the Service Provider Parent and its applicable Subsidiaries shall reasonably cooperate with the Service Recipient Parent and its applicable Subsidiaries in the pursuit of the refund of any Sales and Service Taxes by the Service Recipient Parent and its applicable Subsidiaries; <u>provided</u>, that in the event that the Service Provider Parent or any of its Subsidiaries receives a refund of any Sales and Service Taxes paid to the Service Provider Parent or any of its Subsidiaries by the Service Recipient Parent or any of its Subsidiaries pursuant to this <u>Section 4.1(c)</u> and previously

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remitted to the applicable Governmental Authority, the Service Provider Parent shall promptly surrender such refund, or cause such refund to be surrendered, to the Service Recipient Parent or its applicable Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Each Service Provider Parent and its applicable Subsidiaries and each Service Recipient Parent and its applicable Subsidiaries shall pay and be responsible for all Taxes (other than such Taxes described in <u>Section 4.1(c)</u>) applicable to each of them in connection with this Agreement, including Taxes based on its own respective net income or profits or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;Either Party shall have the right to deduct or withhold from any amounts payable under this Agreement such amounts as are required by applicable Law to be deducted or withheld with respect thereto and, to the extent such deducted or withheld amounts are duly remitted to the appropriate Governmental Authority, such deducted or withheld amounts shall be treated as paid to the Person in respect of which such deduction or withholding was made for all purposes of this Agreement. The Parties shall cooperate in good faith to reduce or eliminate withholding with respect to any amounts payable under this Agreement. Notwithstanding the foregoing, if the Service Provider Parent reasonably believes that a reduced rate of withholding applies or the Service Provider Parent or its applicable Subsidiary is exempt from withholding, then the Service Provider Parent or its applicable Subsidiary shall notify the Service Recipient Parent or its applicable Subsidiary and the Service Recipient Parent or its applicable Subsidiary shall, to the extent permitted by applicable Law, apply such reduced rate of withholding or no withholding at such time as the Service Provider Parent or its applicable Subsidiary has provided the Service Recipient Parent or its applicable Subsidiary with evidence reasonably satisfactory to the Service Recipient or its applicable Subsidiary that a reduced rate of withholding is applicable (and that all necessary administrative provisions or requirements have been completed). The Service Recipient Parent or its applicable Subsidiary shall duly and timely remit to the appropriate Governmental Authority any amounts required to be deducted or withheld and shall promptly provide to the Service Provider Parent or its applicable Subsidiary receipts or other documents evidencing such payment of any such deducted or withheld amount to the applicable Governmental Authority. Neither the Service Recipient Parent nor its Subsidiaries shall be required in any circumstances to pursue any refund of Taxes so deducted or withheld and paid over to a Governmental Authority; <u>provided</u>, that (i) the Service Recipient Parent shall, at the Service Provider Parent's reasonable request and sole expense, cooperate, and cause its applicable Subsidiaries to cooperate, with the Service Provider Parent and its applicable Subsidiaries in the pursuit of such refund of Taxes by the Service Provider Parent or its applicable Subsidiaries, and (ii) in the event that the Service Recipient Parent or any of its Subsidiaries receive a refund of any amounts previously withheld from payments to the Service Provider Parent or its Subsidiaries and remitted to the applicable Governmental Authority, the Service Recipient shall promptly surrender such refund, or cause such refund to be surrendered, (net of costs, including Taxes) to the Service Provider Parent or its applicable Subsidiary. The Parties shall cooperate in good faith (including by using commercially reasonable efforts to establish local subcontracting and/or payment arrangements between Service Provider Parent's relevant Subsidiaries and Service Recipient Parent's relevant Subsidiaries) in order to reduce or eliminate any withholding Taxes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Each of the Parties shall promptly notify, or cause their applicable Subsidiaries to notify, the other Party or its applicable Subsidiaries of any deficiency claim or similar notice by a Governmental Authority with respect to Sales and Service Taxes or withholding on any amounts payable under this Agreement, and shall provide the other with such information as reasonably requested from time to time, and shall fully cooperate with the other Party and its applicable Subsidiaries, as applicable, in connection with (i) the reporting of, (ii) any audit relating to, and (iii) any assessment, refund, claim or proceeding relating to, in each case, such Sales and Service Taxes or withholding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise specifically provided in this Agreement, Tax matters shall be exclusively governed by the Tax Matters Agreement and, in the event of any inconsistency between the Tax Matters Agreement and this Agreement, the Tax Matters Agreement shall control.

Section 4.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Payment Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;The Service Provider Parent (on behalf of the Service Providers who are members of its Group) shall bill the Service Recipient Parent (on behalf of the Service Recipients who are members of its Group) monthly in U.S. Dollars, within thirty (30) business days after the end of each month, or at such other interval specified with respect to a particular Service in <u>Exhibit A</u> at an amount equal to the aggregate Service Charges due for all Services provided in such month or other specified interval, as applicable, plus any Taxes that are the responsibility of the Service Recipient pursuant to this Agreement. Invoices shall set forth a description of the Services provided and reasonable documentation to support the charges thereon, which invoice and documentation shall be in the same level of detail and in accordance with the procedures for invoicing as provided to the applicable Service Provider Parent's other businesses. Invoices shall be directed to the Service Coordinator appointed by Automation or Aerospace, as applicable, or to such other Person designated in writing from time to time by such Service Coordinator. The Service Recipient Parent shall pay such amount in full within thirty (30) days after receipt of each invoice by wire transfer of immediately available funds to the account designated by the Service Provider Parent for this purpose. If the thirtieth (30th) day falls on a weekend or a holiday, the Service Recipient Parent shall pay such amount on or before the following business day. Each invoice shall set forth in reasonable detail the calculation of the charges and amounts and applicable Sales and Service Taxes for each Service during the month or other specified interval to which such invoice relates. In addition to any other remedies for non-payment, if any payment is not received by the Service Provider Parent on or before the date such amount is due, then a late payment interest charge, calculated at the annual rate equal to the "Prime Rate" as reported on the thirtieth (30th) day after the date of the invoice in The Wall Street Journal (or, if such day is not a business day, the first business day immediately after such day), calculated on the basis of a year of 360 days and the actual number of days elapsed between the end of the thirty (30)-day payment period and the actual payment date, shall immediately begin to accrue and any such late payment interest charges shall become immediately due and payable in addition to the amount otherwise owed under this Agreement. The Service Recipient Parent may elect by written notice to the Service Provider Parent to have invoices directed to and paid by any of the Service Recipient Parent's Affiliates and, in such

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event, the Service Recipient Parent will make appropriate arrangements for the internal allocation of such invoiced costs within its Group. The Parties shall cooperate to achieve an invoicing structure that minimizes taxes for both Parties, including by implementing a local-to-local invoicing structure where applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;The Service Recipient Parent shall notify the Service Provider Parent promptly, and in no event later than thirty (30) days following receipt of the Service Provider Parent's invoice, of any amounts disputed in good faith. If the Service Recipient Parent does not notify the Service Provider Parent of any disputed amounts within such thirty (30)-day period, then the Service Recipient Parent will be deemed to have accepted the Service Provider Parent's invoice. Any objection to the amount of any invoice shall be deemed to be a Dispute hereunder subject to the provisions applicable to Disputes set forth in <u>Article IX</u>. The Service Recipient Parent shall pay any undisputed amount, and all Taxes (whether or not disputed), in accordance with this <u>Section 4.2</u>. The Service Provider Parent shall, upon the written request of the Service Recipient Parent, furnish such reasonable documentation to substantiate the amounts billed, including listings of the dates, times and amounts of the Services in question where applicable and practicable. The Service Recipient Parent may withhold any payments subject to a Dispute other than Taxes; <u>provided</u> that any disputed payments, to the extent ultimately determined to be payable to the Service Provider Parent, shall bear interest as set forth in <u>Section 4.2(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Subject to <u>Section 4.2(b)</u>, the Service Recipient Parent shall not withhold any payments to the Service Provider Parent under this Agreement in order to offset payments due to such Service Recipient Parent or any members of Service Recipient Parent's Group pursuant to this Agreement, the Separation Agreement, any Ancillary Agreement or otherwise, unless such withholding is mutually agreed by the Parties or is provided for in the final ruling of a court having jurisdiction pursuant to <u>Section 10.15</u>. Any required adjustment to payments due hereunder will be made as a subsequent invoice.

Section 4.3&nbsp;&nbsp;&nbsp;&nbsp;<u>DISCLAIMER OF WARRANTIES</u>. WITHOUT LIMITATION TO THE COVENANTS RELATING TO THE PROVISION OF SERVICES SET FORTH IN <u>SECTION 2.1(e)</u>, THE SERVICES TO BE PROVIDED UNDER THIS AGREEMENT ARE PROVIDED ON AN "AS-IS" BASIS AND ARE FURNISHED WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE. EACH SERVICE PROVIDER SPECIFICALLY DISCLAIMS ANY OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, OR EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF QUALITY, MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR ANY PARTICULAR PURPOSE. NO MEMBER OF THE AUTOMATION GROUP OR THE AEROSPACE GROUP, AS SERVICE PROVIDER, MAKES ANY REPRESENTATION OR WARRANTY THAT ANY SERVICE COMPLIES WITH ANY LAW, DOMESTIC OR FOREIGN. THE PARTIES ACKNOWLEDGE AND AGREE THAT, EXCEPT AS EXPRESSLY SET FORTH HEREIN, THE SERVICE RECIPIENTS ASSUME ALL RISKS AND LIABILITIES ARISING FROM OR RELATING TO THEIR USE OF AND RELIANCE UPON THE SERVICES.

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Section 4.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Books and Records</u>. Each Party shall, and shall cause the members of its respective Group to, maintain complete and accurate books of account as necessary to support calculations of the Cost of Services for Services rendered or received under this Agreement. Each Party shall make such books available to the other Party, upon reasonable notice and during normal business hours; <u>provided</u>, <u>however</u>, that to the extent such books contain Information relating to any other aspect of a Party's respective business unrelated to this Agreement or the Services, the Parties shall negotiate in good faith a procedure to provide the requesting Party with necessary access while preserving the confidentiality of such other records.

**ARTICLE V**

**<u>CONFIDENTIALITY</u>**

Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidential Information</u>. As used herein, "**<u>Confidential Information</u>**" means any confidential and proprietary information of a Party or Third Party, regardless of form, including information that: (a) if disclosed in writing, is labeled as "confidential" or "proprietary"; (b) if disclosed orally, is designated confidential at disclosure; (c) by nature or the circumstances of its disclosure, should reasonably be considered as confidential; or (d) constitutes confidential information or data related to the Services, including Know-How, trade secrets, algorithms, source code, product/service specifications, prototypes, product roadmaps, Software, product pricing, marketing plans, financial data, personnel statistics, methods of manufacturing and processing, techniques, research, development, inventions (whether or not patentable and whether or not reduced to practice), data, ideas, concepts, drawings, designs and schematics. Notwithstanding the foregoing, the term "Confidential Information" shall not include information which: (i) rightfully becomes publicly available other than by a breach of a duty to the Disclosing Party or violation of Law; (ii) is rightfully received by the Receiving Party from a Third Party without any obligation of confidentiality; (iii) as evidenced by the Receiving Party's written records, is rightfully known to the Receiving Party without any limitation on use or disclosure prior to its receipt from the Disclosing Party; or (iv) is independently developed by or on behalf of the Receiving Party without use of or reference to the Confidential Information of the Disclosing Party as shown by competent evidence.

Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidentiality Obligations</u>. Each Party and its Affiliates that receives, obtains or otherwise become aware of under or in connection with this Agreement (the "**<u>Receiving Party</u>**") any Confidential Information of the other Party or its Affiliates (the "**<u>Disclosing Party</u>**"), respectively, agrees to (a) keep the Disclosing Party's Confidential Information confidential, (b) use the Disclosing Party's Confidential Information only as necessary to perform its obligations, exercise its rights under this Agreement or otherwise in connection with a Dispute, (c) use a reasonable degree of care in keeping the Disclosing Party's Confidential Information confidential, and (d) limit access to the Disclosing Party's Confidential Information to its personnel, Affiliates, assignees, contractors, Sub-Contractors, sublicensees, authorized representatives and advisors (including any financial, tax, legal and technical advisors), in each case, who have a need to access or know such Confidential Information for the purpose of performing its obligations and exercising its rights under this Agreement and who have been apprised of these confidentiality obligations, and with respect to any such Third Party, have agreed to protect the confidentiality of such Confidential Information in a manner that is no

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less restrictive than the Receiving Party's obligations hereunder (and, for clarity, the Receiving Party shall remain responsible to the Disclosing Party for the compliance with such obligations (including obligations of non-use, non-disclosure and confidentiality) of its personnel, Affiliates and such Third Parties who receive such Confidential Information). Except as otherwise expressly provided in this Agreement, nothing in this Agreement is intended to grant to the Receiving Party any rights in or to any Confidential Information of the Disclosing Party.

Section 5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Disclosure Required by Law</u>. In the event that the Receiving Party is requested or required by Law (including subpoena or court order) to disclose any Confidential Information of the Disclosing Party, the Receiving Party shall, to the extent legally permissible, provide prompt written notice to the Disclosing Party of such request or requirement, so that the Disclosing Party will have a reasonable opportunity to seek confidential treatment of such Confidential Information prior to its disclosure (whether through protective orders or otherwise) and, upon request, the Receiving Party shall reasonably cooperate with the Disclosing Party in seeking confidential treatment of such Confidential Information or other appropriate relief from such Law. If, in the absence of a protective order, other confidential treatment or waiver under this Agreement, the Receiving Party is advised by its outside legal counsel that it is legally required to disclose such Confidential Information, the Receiving Party may disclose such Confidential Information without liability under this <u>Article V</u>; <u>provided</u> that the Receiving Party exercises commercially reasonable efforts to obtain reliable assurances that confidential treatment will be afforded any such Confidential Information prior to its disclosure and discloses only the minimum amount of such Confidential Information necessary to comply with such Law. Similarly, with respect to any disclosure of Confidential Information in connection with a Dispute, the Receiving Party shall exercise commercially reasonable efforts to obtain reliable assurances that confidential treatment will be afforded to any Confidential Information of the Disclosing Party prior to its disclosure.

Section 5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Disclosure in Connection with Due Diligence</u>. The terms of this Agreement shall be the Confidential Information of both Parties. A Party may provide this Agreement to any Third Party, subject to confidentiality obligations no less restrictive than those set forth in this <u>Article V</u>, if required to do so in connection with any diligence for any actual or potential bona fide business transaction with such Third Party related to the subject matter of this Agreement (including an acquisition, divestiture, merger, consolidation, asset sale, financing or public offering).

**ARTICLE VI**

**<u>TERM</u>**

Section 6.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Commencement</u>. This Agreement is effective as of the Effective Date and shall remain in effect with respect to a particular Service until the end of the Service Term for such Service, unless this Agreement is earlier terminated (i) in its entirety or with respect to a particular Service, in each case in accordance with <u>Section 6.2</u> or <u>Section 6.3</u>, or (ii) by mutual consent of the Parties; <u>provided</u> that in no event shall this Agreement and the Services provided hereunder continue beyond the date that is twelve (12) months from the Effective Date (the "**<u>Outside Date</u>**"). Notwithstanding anything to the contrary contained herein, if the Separation

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Agreement shall be validly terminated in accordance with its terms, this Agreement shall be automatically terminated with no further action by the Parties and shall be of no force and effect.

Section 6.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided by Law, this Agreement may be terminated by either Party at any time upon written notice to the other Party, if (A) the other Party is adjudicated as bankrupt, (B) any insolvency, bankruptcy or reorganization proceeding is commenced by the other Party under any insolvency, bankruptcy or reorganization act, (C) any action is taken by others against the other Party under any insolvency, bankruptcy or reorganization act and such Party fails to have such proceeding stayed or vacated within ninety (90) days or (D) if the other Party makes an assignment for the benefit of creditors, or a receiver is appointed for the other Party which is not discharged within thirty (30) days after the appointment of the receiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Either Party may terminate this Agreement in the event of a Change of Control of the other Party, if the acquirer in such Change of Control is a competitor of the terminating Party, as reasonably determined by the terminating Party in good faith, taking into account all relevant factors (including the nature and extent of such acquirer's competition with the other Party). If a Party terminates this Agreement in accordance with this <u>Section 6.2(b)</u>, the other Party shall be liable for any applicable Termination Charges.

Section 6.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Service Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;A Service Recipient may from time to time terminate any individual Service, subject to <u>Section 6.3(d)</u>, for any reason or no reason, upon the giving of at least thirty (30) day's prior written notice to the Service Provider; <u>provided</u>, <u>however</u>, that if Part I or Part II of <u>Exhibit A</u> hereto sets forth a different notice period, then the Service Recipient shall instead be required to comply with such different notice period; and <u>provided</u>, <u>further</u>, that any such termination shall be subject to the obligation to pay any applicable Termination Charges pursuant to <u>Section 6.4</u>. In the event that any Service Recipient requests to terminate a discrete part, but not the entirety, of any individual Service or requests to terminate an individual Service that is specified on <u>Exhibit A</u> as being bundled with other Services (a "**<u>Partial Service Termination</u>**"), Service Provider shall consider such request in good faith. If the Service Provider agrees to such Partial Service Termination, the Parties shall negotiate in good faith and mutually agree on the necessary amendments to this Agreement and the Exhibits hereto to accommodate such Partial Service Termination; <u>provided</u> that Recipient shall be liable for any applicable Early Termination Costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;If the Service Provider or the Service Recipient materially breaches any of its respective obligations under this Agreement with respect to a Service (and the period for resolution of the Dispute relating to such breach set forth in <u>Section 9.1</u> has expired), the non-breaching Service Recipient or the Service Provider, as applicable, may terminate this Agreement with respect to the Service to which such obligations apply, effective upon not less than thirty (30)-days' written notice of termination to the breaching Party, if the breaching Party does not cure such default within thirty (30) days after receiving written notice thereof from the

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non-breaching Party; <u>provided</u>, <u>however</u>, that such termination right shall not be available to the extent the breaching Party is not able to cure such breach as a result of the other Party's or its Affiliates' breach of this Agreement). The termination of this Agreement with respect to any Service pursuant to this <u>Section 6.3</u> shall not affect the Parties' rights or obligations under this Agreement with respect to any other Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;In the event that a Service Provider reduces or suspends the provision of any Service due to a Force Majeure Event and such reduction or suspension continues for fifteen (15) days, the Service Recipient may immediately terminate such Service, upon written notice and without any obligations therefor (except that the Service Recipient shall continue to be liable with respect to any Service Charges in respect thereof which were incurred prior to such reduction, suspension or termination).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary in this <u>Section 6.3</u>, Service Recipient may only terminate a Service before the end of the relevant Service Period if it also terminates all other Services that are identified in Part I or Part II of <u>Exhibit A</u>, as applicable, as being depending on that Service. The Parties acknowledge and agree that (i) there may be additional interdependencies among the Services being provided under this Agreement that are not expressly included in Part I or Part II of <u>Exhibit A</u>, (ii) upon the request of either Party, the Parties shall cooperate and act in good faith to determine whether (x) any such additional interdependencies exist with respect to the particular Service that a party is seeking to terminate pursuant to <u>Section 6.3</u> and (y) in the case of such termination, the Service Provider's ability to provide a particular Service in accordance with this Agreement would be adversely affected by such termination of another Service, and (iii) if the Parties have determined that such additional interdependencies exist (and, in the case of such termination that the Service Provider's ability to provide a particular Service in accordance with this Agreement would be adversely affected by such termination), the Parties shall negotiate in good faith to amend Part I or Part II of <u>Exhibit A</u>, as applicable, with respect to such impacted Service to mitigate the effect of the dependency, which amendment shall be consistent with the terms of, and the pricing methodology used for, comparable Services; <u>provided</u> that if the Parties cannot agree despite good faith negotiation and the Service Recipient nevertheless terminates the Service that other ongoing Services are dependent on, the Service Provider shall not be liable for any failure in the ongoing Services resulting from such dependency. In no event shall the Service Period for any Service continue beyond the Service Period of any other Service upon which such Service is dependent, as identified in Part I or Part II of <u>Exhibit A</u> or as determined by the Parties in accordance with this <u>Section 6.3(d)</u>.

Section 6.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Effect of Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each Party agrees and acknowledges that the obligations of each Service Provider to provide Services, or to cause Services to be provided, hereunder shall immediately cease upon (i) the expiration of the applicable Service Term, (ii) termination of (A) this Agreement in whole or (B) such Service, in each case in accordance with <u>Section 6.1</u>, <u>Section 6.2</u> or <u>Section 6.3</u>, or (iii) termination of this Agreement or such Service by mutual written consent of the Parties. Upon cessation of each Service Provider's obligation to provide

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any such Service, each Service Recipient shall stop using, directly or indirectly, such Service hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;In the event that any Service is terminated other than at the end of a month, and the Service Charge associated with such Service is determined on a monthly basis, a Service Provider shall bill the Service Recipient for the entire month in which such Service is terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;In the event of a termination under <u>Section 6.2</u> or <u>Section 6.3(a)</u>, the Service Recipient shall pay to the Service Provider any breakage or termination fees, and other termination costs payable by the Service Provider, solely as a result of the early termination of such Service (or portion thereof) or this Agreement, with respect to any reasonable and documented costs or expenses already incurred or that will become due for payment by the Service Provider or its Affiliates at or following the date of termination of any Service (or portion thereof) in anticipation of providing the terminated Services (or portions hereof) for the full Service Period (or an equitably allocated portion thereof, in the case of any such equipment, resources or agreements that also were used for purposes other than providing Services) ("**<u>Termination Charges</u>**"). The Service Provider will provide to the Service Recipient an invoice for the Termination Charges within thirty (30) days following the date of any termination contemplated by this <u>Section 6.4(d)</u> and will provide reasonable documentary evidence to substantiate such Termination Charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;In the event of any termination of this Agreement in its entirety or with respect to any Service, each Party, the Service Provider and the Service Recipient shall remain

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liable for all of their respective obligations that accrued hereunder prior to the date of such termination, including all obligations of each Service Recipient to pay any Service Charges due to any Service Provider hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Upon the expiration or termination of this Agreement as a whole, the Service Recipient shall promptly return, or cause to be returned, to the Service Provider (or, at the Service Recipient's option, promptly destroy or cause to be destroyed) any and all Confidential Information of the Service Provider in the possession of the Service Recipient and its Affiliates (except to the extent that the Service Recipient is otherwise permitted to continue to possess such Confidential Information (*e.g.*, under another Ancillary Agreement, or because such Confidential Information is also Confidential Information of the Service Recipient)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;The following matters shall survive the termination of this Agreement, including the rights and obligations of each Party thereunder, in addition to any claim for breach arising prior to termination: <u>Article I</u>, <u>Section 3.2(b)</u>, <u>Article IV</u>, this <u>Section 6.4</u>, <u>Article VII</u> (including liability in respect of any indemnifiable Liabilities under this Agreement arising or occurring on or prior to the date of termination), <u>Article IX</u>, <u>Article X</u> and all confidentiality obligations under this Agreement (including, for clarity, <u>Article V</u>).

**ARTICLE VII**

**<u>INDEMNIFICATION; LIMITATION OF LIABILITY</u>**

Section 7.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by Aerospace</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Aerospace, in its capacity as a Service Recipient and on behalf of each member of its Group in its capacity as a Service Recipient, shall indemnify, defend and hold harmless Automation and the other Automation Indemnitees from and against any and all Liabilities incurred by such Automation Indemnitees and arising out of, in connection with or by reason of any Services provided by or on behalf of any member of the Automation Group hereunder, except to the extent such Liabilities arise out of a Automation Group member's (i) material breach of this Agreement, (ii) violation of Laws in providing the Services or (iii) gross negligence, fraud or willful misconduct in providing the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Aerospace, in its capacity as a Service Provider and on behalf of each member of its Group in its capacity as a Service Provider, shall indemnify, defend and hold harmless Automation and the other Automation Indemnitees from and against any and all Liabilities incurred by such Automation Indemnitees and arising out of, in connection with or by reason of any Services provided by any member of the Automation Group hereunder, which Liabilities result from an Aerospace Group member's (i) material breach of this Agreement, (ii) violation of Laws in providing the Services or (iii) gross negligence, fraud or willful misconduct in providing the Services.

Section 7.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification by Automation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Automation, in its capacity as a Service Recipient and on behalf of each member of its Group in its capacity as a Service Recipient, shall indemnify, defend and hold

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harmless Aerospace and the other Aerospace Indemnitees from and against any and all Liabilities incurred by such Aerospace Indemnitees and arising out of, in connection with or by reason of any Services provided by any member of the Aerospace Group hereunder, except to the extent such Liabilities arise out of an Aerospace Group member's (i) material breach of this Agreement, (ii) violation of Laws in providing the Services or (iii) gross negligence, fraud or willful misconduct in providing the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Automation, in its capacity as a Service Provider and on behalf of each member of its Group in its capacity as a Service Provider, shall indemnify, defend and hold harmless Aerospace and the other Aerospace Indemnitees from and against any and all Liabilities incurred by such Aerospace Indemnitees and arising out of, in connection with or by reason any Services provided by any member of the Automation Group hereunder, which Liabilities result from a Automation Group member's (i) material breach of this Agreement, violation of Laws in providing the Services or (iii) gross negligence, fraud or willful misconduct in providing the Services.

Section 7.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Indemnification Procedures</u>. The provisions of <u>Section 6.4</u> and <u>Section 6.5</u> of the Separation Agreement shall govern claims for indemnification under this Agreement; <u>provided</u> that, for purposes of this <u>Section 7.3</u>, in the event of any conflict between the provisions of <u>Section 6.4</u> and <u>Section 6.5</u> of the Separation Agreement and this <u>Article VII</u>, the provisions of this Agreement shall control. The procedures related to indemnification for Tax matters shall be exclusively governed by the Tax Matters Agreement.

Section 7.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Exclusion of Other Remedies</u>. Without limiting the rights under <u>Section 10.16</u>, the provisions of <u>Section 7.1</u> and <u>Section 7.2</u> shall, to the maximum extent permitted by applicable Law, be the sole and exclusive remedies of the Automation Group and the Aerospace Group, as applicable, for any Liability, whether arising from statute, principle of common or civil law, principles of strict liability, tort, contract or otherwise under this Agreement.

Section 7.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Other Indemnification Obligations Unaffected</u>. For the avoidance of doubt, this <u>Article VII</u> applies solely to the specific matters and activities covered by this Agreement (and not to matters specifically covered by the Separation Agreement or the other Ancillary Agreements).

Section 7.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation on Liability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;No Service Provider or Service Recipient, in its capacity as such, nor any member of its Group acting in the capacity of a Service Provider or Service Recipient, as applicable, shall be liable (whether such liability is direct or indirect, in contract or tort or otherwise) to the Service Recipient or Service Provider, as applicable, or its Affiliates for any Liabilities arising out of, related to or in connection with the Services or this Agreement, except to the extent that such Liabilities arise out of such Service Provider's or Service Recipient's (or a member of its Group's), as applicable, (i) material breach of this Agreement, (ii) violation of Laws in providing or receiving the Services, as applicable, or (iii) gross negligence, fraud or willful misconduct in providing or receiving the Services, as applicable; <u>provided</u> that nothing in

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this <u>Section 7.6</u> shall be deemed to limit the Service Recipient's or Service Providers, as applicable, rights under <u>Section 7.6(d)</u> regarding Insurance Proceeds in respect of Third Party Claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;IN NO EVENT SHALL ANY SERVICE PROVIDER OR SERVICE RECIPIENT, IN ITS CAPACITY AS SUCH, NOR ANY MEMBER OF ITS GROUP ACTING IN THE CAPACITY OF A SERVICE PROVIDER OR SERVICE RECIPIENT, AS APPLICABLE, BE LIABLE, WHETHER IN CONTRACT, IN TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE TO THE SERVICE RECIPIENT OR SERVICE PROVIDER, AS APPLICABLE, OR ANY OF ITS AFFILIATES FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (INCLUDING LOSS OF PROFITS) AS A RESULT OF ANY BREACH, PERFORMANCE OR NON-PERFORMANCE BY THE SERVICE PROVIDER OR SERVICE RECIPIENT, AS APPLICABLE, ITS AFFILIATES OR ITS SUB-CONTRACTORS UNDER THIS AGREEMENT, EXCEPT AS MAY BE PAYABLE TO A CLAIMANT IN A THIRD PARTY CLAIM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;EACH GROUP'S TOTAL LIABILITY, IN ITS CAPACITY AS A SERVICE PROVIDER OR SERVICE RECIPIENT, AS APPLICABLE, TO THE OTHER GROUP ARISING OUT OF, RELATED TO OR IN CONNECTION WITH THE SERVICES OR THIS AGREEMENT FOR ALL CLAIMS SHALL NOT EXCEED IN THE AGGREGATE AN AMOUNT EQUAL TO THE TOTAL AMOUNT PAID TO IT (IN THE CASE OF SERVICE PROVIDER) OR PAID BY IT (IN THE CASE OF SERVICE RECIPIENT) FOR SERVICES UNDER THIS AGREEMENT DURING THE TWELVE (12)-MONTH PERIOD IMMEDIATELY PRECEDING THE APPLICABLE CLAIM; <u>PROVIDED</u>, <u>HOWEVER</u>, THAT NOTWITHSTANDING THE FOREGOING, IN THE CASE OF ANY LIABILITY TO THE OTHER GROUP ARISING OUT OF A THIRD PARTY CLAIM, EACH GROUP'S TOTAL LIABILITY IN ITS CAPACITY AS SERVICE PROVIDER OR SERVICE RECIPIENT, AS APPLICABLE, TO THE OTHER GROUP SHALL BE INCREASED BY AN AMOUNT EQUAL TO THE AMOUNT, IF ANY, OF ANY INSURANCE PROCEEDS THAT ARE ACTUALLY RECEIVED BY SUCH SERVICE PROVIDER OR SERVICE RECIPIENT, AS APPLICABLE, IN ACCORDANCE WITH <u>SECTION 7.6(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;If a Service Provider or Service Recipient, in its capacity as such, or any member of its Group acting in the capacity of a Service Provider or Service Recipient, as applicable, shall be liable to the other Party for any Liability arising out of a Third Party Claim, the Indemnitee shall use commercially reasonable efforts to pursue and recover any available Insurance Proceeds under applicable insurance policies. The amounts for which a Party shall be liable pursuant to this <u>Article VII</u> shall be net of any Insurance Proceeds actually received by the Indemnitee (net of all recovery costs reasonably incurred in connection with receipt thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;IF AND TO THE EXTENT THAT SERVICE PROVIDER'S FAILURE TO PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT OR ANY BREACH OF THIS AGREEMENT IS CAUSED BY THE ACT OR OMISSION OF A SUB-CONTRACTOR USED BY SERVICE PROVIDER FOR THE PROVISION OF SERVICES, SERVICE

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PROVIDER SHALL NOT BE RESPONSIBLE, LIABLE OR OTHERWISE CONSIDERED AS BEING IN BREACH OF THIS AGREEMENT, PROVIDED THAT SERVICE PROVIDER SHALL USE ITS COMMERCIALLY REASONABLE EFFORTS TO EXERCISE AND ENFORCE ITS CONTRACTUAL RIGHTS AND SEEK TO CLAIM ANY AVAILABLE CONTRACTUAL REMEDIES IN RESPECT OF THE RELEVANT ACT OR OMISSION OF THE SUB-CONTRACTOR, AND PASS-ON TO SERVICE RECIPIENT AN EQUITABLE AND PROPORTIONATE SHARE OF THE DAMAGES OR SIMILAR AMOUNTS. ALTERNATIVELY, SERVICE PROVIDER MAY, IN ITS SOLE DISCRETION, ASSIGN TO SERVICE RECIPIENT ANY DAMAGE CLAIMS THAT IT MAY ASSERT AGAINST THE RELEVANT SUB-CONTRACTOR IN RELATION TO SERVICE RECIPIENT'S DAMAGE. IN CASE THE ACT OR OMISSION OF THE SUB-CONTRACTOR THAT CAUSED THE DAMAGE ALSO CAUSED PREJUDICE TO SERVICE PROVIDER'S OWN BUSINESS (OR THAT OF ITS AFFILIATES), THE DISTRIBUTION SHALL BE LIMITED TO A REASONABLE PRO RATA SHARE.

**ARTICLE VIII**

**<u>OTHER COVENANTS</u>**

Section 8.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Attorney-in-Fact</u>. If any documents or instruments are reasonably required to be executed in order for the Service Provider to perform and provide any Services to Service Recipient in accordance with this Agreement, then such Service Provider shall be relieved of such obligation to the extent the Service Recipient does not, following a written request from Service Provider, execute such documents or appoint the Service Provider as its attorney-in-fact for the sole purpose of executing such documents.

Section 8.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Further Assurances</u>. Each Party hereto shall take, or cause to be taken, any and all reasonable actions, including the execution, acknowledgment, filing and delivery of any and all documents and instruments that any other Party hereto may reasonably request in order to effect the intent and purpose of this Agreement and the transactions contemplated hereby.

**ARTICLE IX**

**<u>DISPUTE RESOLUTION</u>**

Section 9.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. The dispute resolution procedures set forth in <u>Article VIII</u> of the Separation Agreement shall apply and are hereby incorporated herein by reference, *mutatis mutandis*; <u>provided</u> that prior to submitting a General Dispute Notice pursuant to <u>Section 8.1(b)(i)</u> of the Separation Agreement, the Parties shall first comply with the procedures set forth in <u>Section 9.2</u>.

Section 9.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Resolution Committee</u>. All Disputes will be first considered in person, by teleconference or by video conference by the Service Coordinators within five (5) business days after receipt of notice from either Party specifying the nature of the Dispute (a "**<u>Preliminary Dispute Notice</u>**"). The Service Coordinators shall enter into negotiations aimed at resolving any such Dispute. If the Service Coordinators are unable to reach a resolution with respect to the Dispute within ten (10) business days after receipt of notice of the Dispute, the Dispute shall be

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referred to a Resolution Committee comprised of specified transition leaders (the "**<u>Resolution Committee</u>**") from Automation and Aerospace. On or prior to the Effective Date, each Party shall provide the other Party with the name and relevant contact information for its respective initial Resolution Committee member, and either Party may replace its Resolution Committee members at any time with other persons of similar seniority by providing written notice in accordance with <u>Section 10.6</u>. The Resolution Committee will meet (by telephone or in person) during the next ten (10) business days and attempt to resolve the Dispute. In the event that the Resolution Committee is unable to reach a resolution with respect to the Dispute within ten (10) business days of the referral of the matter to the Resolution Committee, then either Party may deliver a General Dispute Notice pursuant to <u>Section 8.1(b)(i)</u> of the Separation Agreement and the terms and conditions of <u>Article VIII</u> of the Separation Agreement shall apply as set forth in <u>Section 9.1</u>. Notwithstanding anything to the contrary in this <u>Article IX</u>, <u>Section 9.1</u> and this <u>Section 9.2</u> shall not deny any Party equitable remedies with respect to breaches of confidentiality obligations under <u>Article V</u>.

Section 9.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Conduct During Dispute Resolution Process</u>. Unless otherwise agreed in writing, the Parties shall, and shall cause their respective Subsidiaries to, continue to honor all commitments under this Agreement to the extent required by this Agreement during the course of any dispute resolution pursuant to the provisions of this <u>Article IX</u>, unless such commitments are the specific subject of the dispute at issue.

**ARTICLE X**

**<u>MISCELLANEOUS</u>**

Section 10.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Title to Equipment; Title to Data</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise expressly provided herein, each of Aerospace and Automation acknowledges that all procedures, methods, systems, strategies, tools, equipment, facilities and other resources used by any Service Provider in connection with the provision of Services shall remain the property of such Service Provider and shall at all times be under the sole direction and control of such Service Provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Each of Aerospace and Automation acknowledges that it will acquire no right, title or interest (including any license rights or rights of use) in any firmware or software, or the licenses therefor that are owned by the other Party or its Affiliates, Subsidiaries or divisions, by reason of the provision of the Services hereunder, except as expressly provided in <u>Section 3.2</u>.

Section 10.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Force Majeure</u>. In case performance of any terms or provisions hereof shall be delayed or prevented, in whole or in part, because of or related to compliance with any Law or requirement of any national securities exchange, or because of riot, war, public disturbance, strike, labor dispute, fire, explosion, storm, flood, earthquake, pandemic, shortage of necessary equipment, materials or labor, or restrictions thereon or limitations upon the use thereof, delays in transportation, act of God or act of terrorism or cyberterrorism, in each case, that is not within the control of the Party whose performance is interfered with and which, by the exercise of reasonable diligence, such Party is unable to prevent, or for any other reason which is

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not within the control of such Party whose performance is interfered with and which, by the exercise of reasonable diligence, such Party is unable to prevent (each, a "**<u>Force Majeure Event</u>**"), then, upon prompt written notice stating the date and extent of such interference and the cause thereof by such Party to the other Party, such Party shall be excused from its obligations hereunder during the period such Force Majeure Event or its effects continue, and no liability shall attach against either Party on account thereof; <u>provided</u>, <u>however</u>, that the Party whose performance is interfered with resumes the required performance as soon as reasonably practicable upon the cessation of the Force Majeure Event. No Party shall be excused from performance to the extent such Party fails to use commercially reasonable efforts to remedy the situation and mitigate or remove the cause and effects of the Force Majeure Event. For the avoidance of doubt, a Service Recipient shall be not liable for any services fees for any Services that are not provided due to a Force Majeure Event.

Section 10.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Relationship of Parties</u>. Nothing in this Agreement shall be deemed or construed by the Parties or any Third Party as creating a relationship of principal and agent, partnership or joint venture between the Parties, between a Service Provider and a Service Recipient or with any individual providing Services, it being understood and agreed that no provision contained herein, and no act of any Party or members of their respective Groups, shall be deemed to create any relationship between the Parties or members of their respective Groups other than the relationship set forth herein. Each Party shall act under this Agreement solely as an independent contractor and not as an agent or employee of any other Party or any of such Party's Affiliates.

Section 10.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Complete Agreement; Construction</u>. This Agreement, including the Separation Agreement, the other Ancillary Agreements and the Exhibits and Schedules hereto and thereto, shall constitute the entire agreement between the Parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments, course of dealings and writings with respect to such subject matter, and there are no agreements or understandings between the Parties with respect to the subject matter hereof other than those set forth or referred to herein or therein. In the event of any inconsistency between this Agreement and any Exhibit hereto, the Exhibit shall prevail. In the event and to the extent that there shall be a conflict between the provisions of this Agreement and the provisions of the Separation Agreement, the provisions of this Agreement shall control with respect to the subject matter hereof.

Section 10.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts</u>. This Agreement may be executed and delivered (including by facsimile or other means of electronic transmission, such as by electronic mail in "pdf" form) in more than one counterpart, all of which shall be considered one and the same agreement, each of which when executed shall be deemed to be an original, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to each of the Parties.

Section 10.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. Notices, requests, instructions or other documents to be given under this Agreement shall be in writing and shall be deemed to have been properly delivered, given and received, (a) on the date of transmission if sent via email (<u>provided</u>, <u>however</u>, that notice given by email shall not be effective unless either (i) a duplicate copy of such email notice

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is promptly given by one of the other methods described in this <u>Section 10.6</u> or (ii) the receiving party delivers a written confirmation of receipt of such notice either by email or any other method described in this <u>Section 10.6</u> (excluding "out of office" or other automated replies)), (b) when delivered, if delivered personally to the intended recipient, and (c) one (1) Business Day later, if sent by overnight delivery via a national courier service (providing proof of delivery), and in each case, addressed to a Party at the address for such Party set forth on a schedule to be delivered by each Party to the address set forth below (or at such other address for a Party as shall be specified in a notice given in accordance with this <u>Section 10.6</u>):

To Automation:

Honeywell International Inc.

855 S. Mint Street

Charlotte, NC 28202

Attention: &nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]

Email:&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]

with a copy (which shall not constitute notice) to:

Wachtell, Lipton, Rosen & Katz

51 West 52nd Street

New York, NY 10019

Attention: &nbsp;&nbsp;&nbsp;&nbsp;Andrew J. Nussbaum, Esq.

Karessa L. Cain, Esq.

Mark A. Stagliano, Esq.

George N. Tepe, Esq.

Email:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AJNussbaum@wlrk.com

KLCain@wlrk.com

MAStagliano@wlrk.com

GNTepe@wlrk.com

To Aerospace:

Honeywell Aerospace Inc.

1944 E Sky Harbor Cir N

Phoenix, AZ 85034

Attention:&nbsp;&nbsp;&nbsp;&nbsp; [\*\*\*]

Email:&nbsp;&nbsp;&nbsp;&nbsp; [\*\*\*]

with a copy (which shall not constitute notice) to:

Wachtell, Lipton, Rosen & Katz

51 West 52nd Street

New York, NY 10019

Attention: &nbsp;&nbsp;&nbsp;&nbsp;Andrew J. Nussbaum, Esq.

Karessa L. Cain, Esq.

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Mark A. Stagliano, Esq.

George N. Tepe, Esq.&nbsp;&nbsp;&nbsp;&nbsp;

Email:&nbsp;&nbsp;&nbsp;&nbsp;AJNussbaum@wlrk.com

KLCain@wlrk.com

MAStagliano@wlrk.com

GNTepe@wlrk.com

Section 10.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Waivers</u>. Any provision of this Agreement may be waived, if and only if, such waiver is in writing and signed by the Party against whom the waiver is to be effective. Notwithstanding the foregoing, no failure to exercise and no delay in exercising, on the part of any Party, any right, remedy, power or privilege hereunder shall operate as a waiver hereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. Any consent required or permitted to be given by any Party to the other Party under this Agreement shall be in writing and signed by the Party giving such consent and shall be effective only against such Party (and the members of its Group).

Section 10.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments</u>. This Agreement may not be modified or amended except by an agreement in writing specifically designated as an amendment hereto signed by each of the Parties.

Section 10.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignment</u>. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned or transferred, in whole or in part, by operation of Law or otherwise, by either Party without the prior written consent of the other Party (which consent may be granted or withheld in such other Party's sole discretion); <u>provided</u>, that either Party may assign or transfer, in whole or in part, by operation of Law or otherwise, without the prior written consent of the other Party, this Agreement or any of the rights, interests or obligations under this Agreement to (a) one or more of its Affiliates and (b) subject to <u>Section 6.2(b)</u>, the successor to all or a portion of the business or assets to which this Agreement relates; <u>provided</u>, <u>further</u>, that (i) such Party shall promptly notify the other Party in writing of any assignments or transfers it makes under the foregoing clause (b) and (ii) in either case of the foregoing clauses (a) or (b), the party to whom this Agreement is assigned or transferred shall agree in writing to be bound by the terms of this Agreement as if named as a "Party" hereto with respect to all or such portion of this Agreement so assigned or transferred. Any purported assignment in violation of this <u>Section 10.9</u> shall be void *ab initio*. No assignment or transfer shall relieve the assigning or transferring Party of any of its obligations under this Agreement that accrued prior to such assignment or transfer unless agreed to by the non-assigning or non-transferring Party. Nothing in this <u>Section 10.9</u> shall affect or impair a Service Provider's ability to delegate any or all of its obligations under this Agreement to one or more Affiliates or Sub-Contractors pursuant to <u>Section 2.1(d)</u>.

Section 10.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>. The provisions of this Agreement and the obligations and rights hereunder shall be binding upon, inure to the benefit of and be enforceable by (and against) the Parties and their respective successors and permitted transferees and assigns.

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Section 10.11&nbsp;&nbsp;&nbsp;&nbsp;<u>No Circumvention</u>. The Parties agree not to directly or indirectly take any actions, act in concert with any Person who takes an action, or cause or allow any member of any such Party's Group to take any actions (including the failure to take a reasonable action) such that the resulting effect is to materially undermine the effectiveness of any of the provisions of this Agreement (including adversely affecting the rights or ability of any Party to successfully pursue indemnification or payment pursuant to this Agreement).

Section 10.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Subsidiaries</u>. Each of the Parties shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any Subsidiary of such Party or by any entity that becomes a Subsidiary of such Party at and after the Effective Date.

Section 10.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Third Party Beneficiaries</u>. Except with respect to indemnification obligations hereunder, this Agreement is solely for the benefit of, and is only enforceable by, the Parties and their permitted successors and assigns and should not be deemed to confer upon Third Parties any remedy, benefit, claim, liability, reimbursement, claim of Action or other right of any nature whatsoever, including any rights of employment for any specified period, in excess of those existing without reference to this Agreement.

Section 10.14&nbsp;&nbsp;&nbsp;&nbsp;<u>Title and Headings</u>. Titles and headings to sections herein are inserted for the convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

Section 10.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>. This Agreement, including all matters of construction, validity, interpretation, performance and enforceability, and any dispute arising directly or indirectly out of, in connection with or relating to this Agreement shall be governed by and construed in accordance with the Laws of the State of Delaware, without giving effect to the conflicts of laws principles thereof.

Section 10.16&nbsp;&nbsp;&nbsp;&nbsp;<u>Specific Performance</u>. The Parties acknowledge and agree that irreparable harm would occur in the event that the Parties do not perform any provision of this Agreement in accordance with its specific terms or otherwise breach this Agreement and the remedies at law for any breach or threatened breach of this Agreement, including monetary damages, are inadequate compensation for any Indemnifiable Loss. Accordingly, from and after the Effective Date, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Parties agree that the Parties to this Agreement who are or are to be thereby aggrieved shall, subject and pursuant to the terms of this <u>Article X</u> (including after compliance with all notice and negotiation provisions herein), have the right to specific performance and injunctive or other equitable relief of its or their rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that any defense in any action for specific performance that a remedy at law would be adequate is hereby waived, and that any requirements for the securing or posting of any bond with such remedy are hereby waived.

Section 10.17&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, illegal,

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

Section 10.18&nbsp;&nbsp;&nbsp;&nbsp;<u>No Duplication; No Double Recovery</u>. Nothing in this Agreement is intended to confer to or impose upon any Party a duplicative right, entitlement, obligation or recovery with respect to any matter arising out of the same facts and circumstances.

Section 10.19&nbsp;&nbsp;&nbsp;&nbsp;<u>No Set-Off</u>. Except as mutually agreed to in writing by the Parties, neither Party shall have any right of set-off or other similar rights with respect to any amounts due pursuant to this Agreement or any other amounts claimed to be owed to the other Party arising out of this Agreement.

\* \* \* \* \*

[*Signature page follows*]

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

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| | |
|:---|:---|
| **HONEYWELL INTERNATIONAL INC.** | **HONEYWELL INTERNATIONAL INC.** |
| By: |  |
|  | Name:<br>Title: |
| **HONEYWELL AEROSPACE INC.** | **HONEYWELL AEROSPACE INC.** |
| By: |  |
|  | Name:<br>Title: |

---

## Exhibit 10.4

**Exhibit 10.4**

**INTELLECTUAL PROPERTY CROSS-LICENSE AGREEMENT**

BY AND BETWEEN

**HONEYWELL INTERNATIONAL INC.**

AND

**HONEYWELL AEROSPACE INC.**

DATED AS OF&nbsp;&nbsp;&nbsp;&nbsp;

------

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| ARTICLE I DEFINITIONS AND INTERPRETATION | ARTICLE I DEFINITIONS AND INTERPRETATION | 1 |
| Section 1.1 | General | 1 |
| Section 1.2 | References; Interpretation | 4 |
| ARTICLE II LICENSES | ARTICLE II LICENSES | 5 |
| Section 2.1 | Licenses. | 5 |
| Section 2.2 | Sublicenses | 6 |
| Section 2.3 | Divested Businesses | 6 |
| Section 2.4 | Reservation of Rights | 6 |
| Section 2.5 | No Additional Obligations | 6 |
| Section 2.6 | Ownership | 6 |
| Section 2.7 | Confidential Information | 7 |
| ARTICLE III DISCLAIMER OF WARRANTIES; LIMITATION OF LIABILITY | ARTICLE III DISCLAIMER OF WARRANTIES; LIMITATION OF LIABILITY | 7 |
| Section 3.1 | Disclaimer of Representations and Warranties | 7 |
| Section 3.2 | Limitation of Liability | 7 |
| Section 3.3 | Limited Liability Exclusions | 8 |
| ARTICLE IV TERM | ARTICLE IV TERM | 8 |
| Section 4.1 | Term | 8 |
| ARTICLE V MISCELLANEOUS | ARTICLE V MISCELLANEOUS | 8 |
| Section 5.1 | Dispute Resolution | 8 |
| Section 5.2 | Complete Agreement; Construction | 8 |
| Section 5.3 | Counterparts | 8 |
| Section 5.4 | Notices | 10 |
| Section 5.5 | Waivers | 10 |
| Section 5.6 | Amendments | 10 |
| Section 5.7 | Assignment | 10 |
| Section 5.8 | Successors and Assigns | 10 |
| Section 5.9 | Third Party Beneficiaries | 10 |
| Section 5.10 | Title and Headings | 11 |
| Section 5.11 | Governing Law | 11 |
| Section 5.12 | Specific Performance | 11 |
| Section 5.13 | Severability | 11 |
| Section 5.14 | No Duplication; No Double Recovery | 11 |
| Section 5.15 | Bankruptcy | 11 |

---

EXHIBITS

---

| | |
|:---|:---|
| **Exhibit A** | Specified Excluded Automation Licensed IP |
| **Exhibit B** | Specified Excluded Aerospace Licensed IP |

---

i

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**INTELLECTUAL PROPERTY CROSS-LICENSE AGREEMENT**

This INTELLECTUAL PROPERTY CROSS-LICENSE AGREEMENT (this "**<u>Agreement</u>**"), dated as of&nbsp;&nbsp;&nbsp;&nbsp; (the "**<u>Effective Date</u>**"), is entered into by and between Honeywell Aerospace Inc. (f/k/a Honeywell Aerospace LLC), a Delaware corporation ("**<u>Aerospace</u>**"), and Honeywell International Inc., a Delaware corporation ("**<u>Automation</u>**") (together with Aerospace, the "**<u>Parties</u>**," and each individually a "**<u>Party</u>**").

**RECITALS**

**WHEREAS**, the Parties, among others, entered into that certain Separation and Distribution Agreement dated as of&nbsp;&nbsp;&nbsp;&nbsp; (as amended, modified or supplemented, and together with all exhibits and schedules thereto, the "**<u>Separation Agreement</u>**");

**WHEREAS**, the Separation Agreement contemplates that Automation and Aerospace will execute this Agreement, and this Agreement is being entered into by the Parties to satisfy the requirements described therein;

**WHEREAS**, as of and following the consummation of the transactions contemplated by the Separation Agreement, each Party and its Affiliates will have rights to certain Intellectual Property related to the other Party's business; and

**WHEREAS**, in connection with the Separation Agreement, Automation wishes to grant to Aerospace, and Aerospace wishes to grant to Automation, a license and other rights to certain of such Intellectual Property, in each case, as and to the extent set forth herein.

**NOW, THEREFORE**, the Parties, intending to be legally bound, hereby agree as follows:

**ARTICLE I**

**<u>DEFINITIONS AND INTERPRETATION</u>**

Section 1.1&nbsp;&nbsp;&nbsp;&nbsp;<u>General</u>. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed thereto in the Separation Agreement. As used in this Agreement, the following terms have the respective meanings set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Aerospace</u>**" shall have the meaning set forth in the Preamble to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Aerospace Licensed IP</u>**" shall mean (i) any and all Intellectual Property, to the extent Controlled by Aerospace or any member of the Aerospace Group as of the Effective Date, used or held for use in, or otherwise practiced by, the Automation Business as of or within the twelve (12) months prior to the Effective Date, and (ii) to the extent Controlled by Aerospace or any member of the Aerospace Group, (1) all Patents that claim priority to or from, or form the basis for priority with, any Patents included in such Intellectual Property described in the foregoing clause (i), and any foreign equivalents thereof, and (2) all Patents that are filed during the two (2)-year period following the Effective Date to the extent such Patents claim any Know-How included in such Intellectual Property described in the foregoing clause (i); <u>provided</u> that,

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notwithstanding the foregoing, the Aerospace Licensed IP excludes any Intellectual Property set forth on **Exhibit B**, Trademarks, Internet Properties and any Copyrights in Software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Aerospace Group</u>**" shall mean Aerospace and each Person that is or becomes a Subsidiary of Aerospace, for so long as such Person is a Subsidiary of Aerospace.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Agreement</u>**" shall have the meaning set forth in the Preamble to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Automation</u>**" shall have the meaning set forth in the Preamble to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Automation Licensed IP</u>**" shall mean (i) any and all Intellectual Property, to the extent Controlled by Automation or any member of the Automation Group as of the Effective Date, used or held for use in, or otherwise practiced by, the Aerospace Business as of or within the twelve (12) months prior to the Effective Date, and (ii) to the extent Controlled by Automation or any member of the Automation Group, (1) all Patents that claim priority to any Patents included in such Intellectual Property to the extent the claims of such Patents claiming priority are supported by Patents included in such Intellectual Property and (2) all Patents that are filed during the two (2)-year period following the Effective Date to the extent such Patents claim any Know-How included in such Intellectual Property; <u>provided</u> that, notwithstanding the foregoing, the Automation Licensed IP excludes any Intellectual Property set forth on **Exhibit A**, any Trademarks, any Internet Properties and any Copyrights in Software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Automation Group</u>**" shall mean Automation and each Person that is or becomes a Subsidiary of Automation, for so long as such Person is a Subsidiary of Automation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Contract</u>**" shall mean any agreement, contract, subcontract, obligation, note, indenture, instrument, option, lease, sublease, promise, arrangement, release, warranty, license, sublicense, insurance policy, purchase order or legally binding commitment or undertaking of any nature (whether written or oral and whether express or implied).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Control</u>**" shall mean, with respect to any Intellectual Property, (i) such Intellectual Property is owned by the applicable Person, or (ii) such Person has the ability to grant a license or other rights in, to or under such Intellectual Property on the terms and conditions set forth herein (other than pursuant to a license or other rights granted pursuant to this Agreement) without violating any obligations under any Contract existing as of the Effective Date and without requiring any additional consent of, or additional consideration given to, any Third Party (except to the extent such consent has been obtained or such consideration has been given).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Copyrights</u>**" shall mean copyrightable works, copyrights (including in product label or packaging artwork or templates), moral rights, mask work rights, database rights and design rights, in each case, whether or not registered, and registrations and applications for registration thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Damages</u>**" shall have the meaning set forth in the Separation Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Distribution</u>**" shall have the meaning set forth in the Separation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Divested Entity</u>**" shall mean, (i) with respect to Aerospace or the Aerospace Group, a member or a business of the Aerospace Group (as of the time immediately prior to the relevant divestment) that any member of the Aerospace Group sells or transfers to a Third Party or otherwise divests, and (ii) with respect to Automation or the Automation Group, a member or a business of the Automation Group (as of the time immediately prior to the relevant divestment) that any member of the Automation Group sells or transfers to another Person or otherwise divests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Effective Date</u>**" shall have the meaning set forth in the Preamble to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Exploit</u>**" shall mean to make, have made, use, sell, offer for sale, import, export, practice, reproduce, copy, perform, develop, display, distribute, modify, make derivative works of or otherwise exploit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Intellectual Property</u>**" shall mean (a) any and all intellectual property rights created or arising in any jurisdiction anywhere in the world, whether statutory, common law, or otherwise, including in or with respect to, or arising from, any (i) Patents, (ii) Trademarks, (iii) Copyrights, (iv) Know-How, (v) Software and data, (vi) Internet Properties, and (b) all issuances, registrations and applications for issuance or registration of any of the foregoing described in the foregoing clause (a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Internal Reorganization</u>**" shall have the meaning set forth in the Separation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Internet Properties</u>**" shall mean all domain name registrations and social media and business platform addresses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Know-How</u>**" shall mean all confidential or proprietary information, including trade secrets, know-how and technical data, including any that comprise financial, business, scientific, technical, economic or engineering information and instructions, including any confidential or proprietary raw materials, material lists, raw material specifications, manufacturing or production files or specifications, plans, drawings, blueprints, design tools, quality assurance and control procedures, simulation capability, research data, manuals, compilations, reports, including technical reports and research reports, analyses, formulas, formulations, designs, prototypes, methods, techniques, processes, rights in research, development, manufacturing, financial, marketing and business data, pricing and cost information, customer and supplier lists and information, procedures, inventions and invention disclosure documents, in each case, other than Patents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Governmental Entity</u>**" shall mean any nation or government, any state, municipality or other political subdivision thereof and any entity, body, agency, commission, department, board, bureau or court, whether federal, state, local, domestic, foreign, multinational or supranational exercising executive, legislative, judicial, regulatory, self-regulatory or administrative functions of or pertaining to government and any executive official thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Group</u>**" shall mean (a) with respect to Aerospace, the Aerospace Group, and (b) with respect to Automation, the Automation Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Licensed IP</u>**" shall mean (i) with respect to the license granted to Automation hereunder, the Aerospace Licensed IP, and (ii) with respect to the license granted to Aerospace hereunder, the Automation Licensed IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Licensee</u>**" shall mean (i) Aerospace, with respect to the Automation Licensed IP, and (ii) Automation, with respect to the Aerospace Licensed IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Licensor</u>**" shall mean (i) Aerospace, with respect to the Aerospace Licensed IP, and (ii) Automation, with respect to the Automation Licensed IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Party</u>**" shall have the meaning set forth in the Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Patent</u>**" shall mean patents, patent applications (including patents issued thereon) and statutory invention registrations, patents of importation, patents of improvement, certificates of addition, design patents and utility models, including provisionals, reissues, divisionals, continuations, continuations-in-part, extensions, renewals and reexaminations thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Person</u>**" shall mean any natural person, firm, individual, corporation, business trust, joint venture, association, bank, land trust, trust company, company, limited liability company, partnership or other organization or entity, whether incorporated or unincorporated, or any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Separation Agreement</u>**" shall have the meaning set forth in the Recitals to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Software</u>**" shall mean all computer programs (whether in source code, object code, or other form), including software implementations of algorithms and machine learning, natural language processing, large language model, neural network and other artificial intelligence technologies, including weights and models, together with all related documentation, including flowcharts and other logic and design diagrams, technical, functional and other specifications, and user and training manuals and materials to the extent related to any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Sublicensee</u>**" shall have the meaning set forth in <u>Section 2.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Term</u>**" shall have the meaning set forth in <u>Section 4.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Third Party</u>**" shall mean any Person other than Automation, Aerospace and their respective Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg)&nbsp;&nbsp;&nbsp;&nbsp;"**<u>Trademarks</u>**" shall mean trademarks, certification marks, service marks, trade names, service names, and trade dress, in each case whether or not registered, and registrations and applications for registration thereof, and all reissues, extensions and renewals of any of the foregoing.

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Section 1.2&nbsp;&nbsp;&nbsp;&nbsp;<u>References; Interpretation</u>. For the purposes of this Agreement, (a) words in the singular shall be held to include the plural and vice versa, words of one gender shall be held to include the other gender as the context requires, and a word defined as a verb or noun shall be held to have the corresponding meaning when used in the other grammatical forms of that word; (b) references to the terms Article, Section, paragraph, clause, Exhibit and Schedule are references to the Articles, Sections, paragraphs, clauses, Exhibits and Schedules to this Agreement unless otherwise specified; (c) the terms "hereof," "herein," "hereby," "hereto," and derivative or similar words refer to this entire Agreement, including the Schedules and Exhibits hereto; (d) references to "$" shall mean U.S. dollars; (e) the word "including" and words of similar import when used in this Agreement shall mean "including without limitation," unless otherwise specified; (f) the word "or" shall not be exclusive (unless the context indicates otherwise); (g) references to "written" or "in writing" include in electronic form; (h) the Parties have each participated in the negotiation and drafting of this Agreement, and except as otherwise stated herein, if an ambiguity or question of interpretation should arise, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or burdening any Party by virtue of the authorship of any of the provisions in this Agreement; (i) a reference to any Person includes such Person's successors and permitted assigns; (j) any reference to "days" means calendar days unless Business Days are expressly specified; (k) when calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded and if the last day of such period is not a Business Day, the period shall end on the next succeeding Business Day; (l) any statute or Contract defined or referred to herein means such statute or Contract as from time to time amended, modified or supplemented, unless otherwise specifically indicated; (m) the use of the phrases "the date of this Agreement," "the date hereof," "of even date herewith" and terms of similar import shall be deemed to refer to the date set forth in the preamble to this Agreement; (n) the phrase "ordinary course of business" shall be deemed to be followed by the words "consistent with past practice" whether or not such words actually follow such phrase; (o) where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning; (p) the word "extent" in the phrase "to the extent" shall mean the degree to which a subject or other thing extends, and such phrase shall not mean simply "if" and (q) any consent given by any Party pursuant to this Agreement shall be valid only if contained in a written instrument signed by such Party.

**ARTICLE II**

**<u>LICENSES</u>**

Section 2.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Licenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Automation hereby grants, on behalf of itself and the Automation Group, to Aerospace, an irrevocable, perpetual (during the Term), royalty-free, fully paid-up, sublicensable (solely to the extent permitted in <u>Section 2.2</u>), transferable (solely to the extent permitted in <u>Section 5.7</u>), worldwide, non-exclusive license in, to and under the Automation Licensed IP for any purpose within the scope of any current or future business of the Aerospace Group, including for the Exploitation of any goods or services developed or provided as part of any such business.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Aerospace hereby grants, on behalf of itself and the Aerospace Group, to Automation, an irrevocable, perpetual (during the Term), royalty-free, fully paid-up, sublicensable (solely to the extent permitted in <u>Section 2.2</u>), transferable (solely to the extent permitted in <u>Section 5.7</u>), worldwide, non-exclusive license in, to and under the Aerospace Licensed IP for any purpose within the scope of any current or future business of the Automation Group, including for the Exploitation of any goods or services developed or provided as part of any such business.

Section 2.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Sublicenses</u>. Licensee may sublicense the license and rights granted to Licensee under <u>Section 2.1</u> through multiple tiers to (a) any member of its Group, <u>provided</u> that, without limiting <u>Section 2.3</u>, any sublicense granted to a member of the Licensee's Group under this <u>Section 2.2(a)</u> will immediately terminate if and when such Person ceases to qualify as a member of Licensee's Group, (b) Third Parties to the extent necessary for such Third Parties to provide services to and solely for the benefit of Licensee and its Group, (c) Third Parties to the extent necessary for the Exploitation of the products or services of Licensee or its Group (including jointly developed products or services) or (d) a Divested Entity of Licensee, or an acquiror of such Divested Entity, in each case solely in accordance with <u>Section 2.3</u> (any such sublicensee that receives a sublicense in accordance with this <u>Section 2.2</u>, a "**<u>Sublicensee</u>**").

Section 2.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Divested Businesses</u>. Upon any sale, transfer or other divestiture of a Divested Entity by Licensee or any member of its Group to any Third Party, Licensee may grant a sublicense, solely within the scope of the license granted to it pursuant to <u>Section 2.1</u>, to such Divested Entity (where such Divested Entity is a Person) or to such Third Party (where such Divested Entity is not a Person); <u>provided</u> that (a) the sublicense shall only extend to the line of business that such Divested Entity constituted or was engaged in at the effective time of such divestiture and (b) the sublicense shall not extend to any products, services or business of any such acquiring Third Party (other than the products, services or business of or constituting the Divested Entity at the effective time of such divestiture).

Section 2.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Reservation of Rights</u>. Except as expressly provided in the Separation Agreement or any other Ancillary Agreement, each Party reserves its and its Group's rights in and to all Intellectual Property, other than the rights expressly granted hereunder. Without limiting the foregoing, this Agreement and the licenses and rights granted herein do not, and shall not be construed to, confer any rights not expressly provided upon either Party, its Affiliates, or its Sublicensees by implication, estoppel, or otherwise as to any of the other Party's or its Affiliates' Intellectual Property.

Section 2.5&nbsp;&nbsp;&nbsp;&nbsp;<u>No Additional Obligations</u>. Nothing in this Agreement shall be construed to require (a) any delivery of any technology, documentation or other tangible embodiments of Intellectual Property by any Party or any of their respective Affiliates to any other Person or to require any support or maintenance obligations whatsoever on the part of any Party or (b) either Party to maintain, register, prosecute, pay for or offer to pay for (including by offering remuneration to any inventors), enforce, defend or otherwise manage, any Intellectual Property.

Section 2.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Ownership</u>. As between the Parties and their respective Groups, (a) Aerospace acknowledges and agrees that Automation and the Automation Group (or, in the case of sublicensed Intellectual Property, its or their licensors) own or Control the Automation

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Licensed IP, (b) Automation acknowledges and agrees that Aerospace and the Aerospace Group (or, in the case of sublicensed Intellectual Property, its or their licensors) own or Control the Aerospace Licensed IP, and (c) each Party acknowledges and agrees that neither Party, nor its Affiliates or its Sublicensees, are acquiring, as a result of any rights granted under this Agreement, any ownership rights in the Licensed IP licensed to such Party hereunder.

Section 2.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Confidential Information</u>. Notwithstanding any other terms with respect to Confidential Information set forth in the Separation Agreement, (a) Licensee may disclose Confidential Information that embodies the Licensed IP licensed to Licensee and its Sublicensees under terms that are at least as protective of such Confidential Information as the terms under which Licensee discloses its own like confidential information, which shall in any case be reasonable under the circumstances of disclosure and (b) Licensee and its Sublicensees may use Confidential Information that embodies the Licensed IP licensed to it subject to reasonable measures to protect the confidentiality of such Confidential Information that are at least as protective as the measures used by Licensee for its own like confidential information, which shall in any case be reasonable under the circumstances of use.

**ARTICLE III**

**<u>DISCLAIMER OF WARRANTIES; LIMITATION OF LIABILITY</u>**

Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Disclaimer of Representations and Warranties</u>. EXCEPT AS EXPRESSLY SET FORTH IN THE SEPARATION AGREEMENT, THIS AGREEMENT OR THE OTHER ANCILLARY AGREEMENTS, THE PARTIES DISCLAIM AND WAIVE ANY AND ALL REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE RIGHTS AND LICENSES GRANTED HEREUNDER, WHETHER EXPRESS OR IMPLIED (INCLUDING WITH REGARD TO QUALITY, PERFORMANCE, NON-INFRINGEMENT, NON-DILUTION, VALIDITY, COMMERCIAL UTILITY, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE), AND EACH PARTY ACKNOWLEDGES AND AGREES THAT IT HAS NOT RELIED ON ANY SUCH REPRESENTATIONS OR WARRANTIES, EXCEPT THOSE EXPRESSLY SET FORTH IN THE SEPARATION AGREEMENT, THIS AGREEMENT OR ANY OTHER ANCILLARY AGREEMENT. EXCEPT AS MAY EXPRESSLY BE SET FORTH IN THE SEPARATION AGREEMENT, THIS AGREEMENT OR ANY OTHER ANCILLARY AGREEMENT, THE LICENSED IP IS BEING LICENSED ON AN "AS IS," "WHERE IS" BASIS.

Section 3.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Limitation of Liability</u>. IN NO EVENT SHALL AUTOMATION OR AEROSPACE OR THEIR RESPECTIVE AFFILIATES BE LIABLE, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE, AT LAW OR IN EQUITY, FOR PUNITIVE, EXEMPLARY, SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING FROM OR RELATING TO ANY CLAIM MADE UNDER THIS AGREEMENT (EXCEPT FOR ALL COMPONENTS OF AWARDS AGAINST THE NON-BREACHING PARTY IN ANY THIRD-PARTY CLAIM, INCLUDING COMPONENTS OF SUCH THIRD-PARTY CLAIM RELATING TO ANY OF THE FOREGOING AND ATTORNEYS' FEES). WITHOUT LIMITING THE FOREGOING, NO LICENSOR SHALL BE LIABLE UNDER THIS

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AGREEMENT FOR ANY CLAIMS, LOSS OR DAMAGES ARISING FROM LICENSEE'S OR ITS SUBLICENSEES' USE OF ANY LICENSED IP UNDER THIS AGREEMENT.

Section 3.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Limited Liability Exclusions</u>. The limitation of Damages provided in the foregoing <u>Section 3.2</u> shall not apply to: (i) Damages arising from any willful breach of this Agreement; (ii) Damages arising from willful misconduct or fraud; or (iii) Damages arising from a breach of <u>Section 2.7</u>.

**ARTICLE IV**

**<u>TERM</u>**

Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Term</u>. The terms of the licenses and other grants of rights (and related obligations) under this Agreement (the "**<u>Term</u>**") shall remain in effect (A) with respect to the Patents and Copyrights licensed hereunder, on a Patent-by-Patent and Copyright-by-Copyright basis, until expiration, invalidation or abandonment of such Patent or Copyright (as applicable), and (B) with respect to all other Licensed IP, in perpetuity.

**ARTICLE V**

**<u>MISCELLANEOUS</u>**

Section 5.1&nbsp;&nbsp;&nbsp;&nbsp;<u>Dispute Resolution</u>. The dispute resolution procedures set forth in <u>Article VIII</u> of the Separation Agreement shall apply and are hereby incorporated herein by reference, *mutatis mutandis*, including, for the avoidance of doubt, THE IRREVOCABLE AND UNCONDITIONAL WAIVER BY EACH PARTY OF ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT.

Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<u>Complete Agreement; Construction</u>. This Agreement, including the Exhibits hereto, the Separation Agreement and the other Ancillary Agreements shall constitute the entire agreement between the Parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments, course of dealings and writings with respect to such subject matter, and there are no agreements or understandings between the Parties with respect to the subject matter hereof other than those set forth or referred to herein or therein. In the event and to the extent that there shall be a conflict between the provisions of this Agreement and the provisions of the Separation Agreement, the provisions of this Agreement shall control with respect to the subject matter hereof.

Section 5.3&nbsp;&nbsp;&nbsp;&nbsp;<u>Counterparts</u>. This Agreement may be executed and delivered (including by means of electronic transmission, such as by electronic mail in "pdf" form) in more than one counterpart, all of which shall be considered one and the same agreement, each of which when executed shall be deemed to be an original, and shall become effective when one or more such counterparts have been signed by each of the Parties and delivered to each of the Parties.

Section 5.4&nbsp;&nbsp;&nbsp;&nbsp;<u>Notices</u>. Notices, requests, instructions or other documents to be given under this Agreement shall be in writing and shall be deemed to have been properly delivered, given and received, (a) on the date of transmission if sent via email (<u>provided</u>, <u>however</u>, that notice given by email shall not be effective unless either (i) a duplicate copy of such email notice is promptly given by one of the other methods described in this <u>Section 5.4</u> or (ii) the receiving

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party delivers a written confirmation of receipt of such notice either by email or any other method described in this <u>Section 5.4</u> (excluding "out of office" or other automated replies)), (b) when delivered, if delivered personally to the intended recipient, and (c) one (1) Business Day later, if sent by overnight delivery via a national courier service (providing proof of delivery), and in each case, addressed to a Party at the address for such Party set forth below (or at such other address for a Party as shall be specified in a notice given in accordance with this <u>Section 5.4</u>):

To Automation:

Honeywell International Inc.

855 S. Mint Street

Charlotte, NC 28202

Attention: &nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]

Email:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]

with a copy (which shall not constitute notice) to:

Wachtell, Lipton, Rosen & Katz

51 W. 52nd St.

New York, NY 10019

Attention:&nbsp;&nbsp;&nbsp;&nbsp;Andrew J. Nussbaum

Karessa L. Cain

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mark A. Stagliano

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;George N. Tepe

Email:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AJNussbaum@wlrk.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KLCain@wlrk.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MAStagliano@wlrk.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GNTepe@wlrk.com

To Aerospace:

Honeywell Aerospace Inc.

1944 E Sky Harbor Cir N

Phoenix, AZ 85034

Attention:&nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]

Email:&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;[\*\*\*]

with a copy (which shall not constitute notice) to:

Wachtell, Lipton, Rosen & Katz

51 W. 52nd St.

New York, NY 10019

Attention:&nbsp;&nbsp;&nbsp;&nbsp;Andrew J. Nussbaum

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Karessa L. Cain

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mark A. Stagliano

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;George N. Tepe

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Email:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AJNussbaum@wlrk.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KLCain@wlrk.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MAStagliano@wlrk.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GNTepe@wlrk.com

Section 5.5&nbsp;&nbsp;&nbsp;&nbsp;<u>Waivers</u>. Any provision of this Agreement may be waived, if and only if, such waiver is in writing and signed by the Party against whom the waiver is to be effective. Notwithstanding the foregoing, no failure to exercise and no delay in exercising, on the part of any Party, any right, remedy, power or privilege hereunder shall operate as a waiver hereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. Any consent required or permitted to be given by any Party to the other Party under this Agreement shall be in writing and signed by the Party giving such consent and shall be effective only against such Party (and the members of its Group).

Section 5.6&nbsp;&nbsp;&nbsp;&nbsp;<u>Amendments</u>. This Agreement may not be modified or amended, except by an agreement in writing specifically designated as an amendment hereto signed by each of the Parties.

Section 5.7&nbsp;&nbsp;&nbsp;&nbsp;<u>Assignment</u>. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned or transferred, in whole or in part, by operation of Law or otherwise, by either of the Parties without the prior written consent of the other Party (which consent may be granted or withheld in such other Party's sole discretion); <u>provided</u> that such first Party may assign or transfer, in whole or in part, by operation of Law or otherwise, without the prior written consent of the other Party, this Agreement or any of the rights, interests or obligations under this Agreement to (a) one or more of its Affiliates and (b) the successor to all or a portion of the business or assets to which this Agreement relates; <u>provided</u>, <u>further</u>, that (i) the assigning or transferring Party shall promptly notify the non-assigning or non-transferring Party in writing of any assignments or transfers it makes under the foregoing clause (b) and (ii) in either case of the foregoing clauses (a) or (b), the party to whom this Agreement is assigned or transferred shall agree in writing to be bound by the terms of this Agreement as if named as a "Party" hereto with respect to all or such portion of this Agreement so assigned or transferred. Any purported assignment in violation of this <u>Section 5.7</u> shall be void *ab initio*. No assignment or transfer shall relieve the assigning or transferring Party of any of its obligations under this Agreement that accrued prior to such assignment or transfer unless agreed to by the non-assigning or non-transferring Party. Any assignment of the Licensed IP shall be subject to, and shall not affect, the licenses granted under this Agreement.

Section 5.8&nbsp;&nbsp;&nbsp;&nbsp;<u>Successors and Assigns</u>. The provisions of this Agreement and the obligations and rights hereunder shall be binding upon, inure to the benefit of and be enforceable by (and against) the Parties and their respective successors and permitted transferees and assigns.

Section 5.9&nbsp;&nbsp;&nbsp;&nbsp;<u>Third Party Beneficiaries</u>. This Agreement is solely for the benefit of, and is only enforceable by, the Parties and their permitted successors and assigns and should not be deemed to confer upon third parties any remedy, benefit, claim, liability, reimbursement, claim of Action or other right of any nature whatsoever, including any rights of employment for any specified period, in excess of those existing without reference to this Agreement.

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Section 5.10&nbsp;&nbsp;&nbsp;&nbsp;<u>Title and Headings</u>. Titles and headings to sections herein are inserted for the convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

Section 5.11&nbsp;&nbsp;&nbsp;&nbsp;<u>Governing Law</u>. This Agreement, including all matters of construction, validity, interpretation, performance and enforceability, and any dispute arising directly or indirectly out of, in connection with or relating to this Agreement shall be governed by and construed in accordance with the Laws of the State of Delaware, without giving effect to the conflicts of laws principles thereof.

Section 5.12&nbsp;&nbsp;&nbsp;&nbsp;<u>Specific Performance</u>. The Parties acknowledge and agree that irreparable harm would occur if the Parties do not perform any provision of this Agreement in accordance with its specific terms or otherwise breach this Agreement and the remedies at law for any breach or threatened breach of this Agreement, including monetary damages, are inadequate compensation for any Damages. Accordingly, from and after the Effective Date, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Parties agree that the Party or Parties to this Agreement who are or are to be thereby aggrieved shall, subject and pursuant to the terms of this <u>Article V</u> (including for the avoidance of doubt, after compliance with all notice and negotiation provisions herein), have the right to specific performance and injunctive or other equitable relief of its or their rights under this Agreement, in addition to any other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that any defense in any action for specific performance that a remedy at law would be adequate is hereby waived, and that any requirements for the securing or posting of any bond with such remedy are hereby waived.

Section 5.13&nbsp;&nbsp;&nbsp;&nbsp;<u>Severability</u>. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon a determination that any term, provision, covenant or restriction is invalid, illegal, void or unenforceable, the Parties shall negotiate in good faith to modify to the fullest extent permitted by applicable Law this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

Section 5.14&nbsp;&nbsp;&nbsp;&nbsp;<u>No Duplication; No Double Recovery</u>. Nothing in this Agreement is intended to confer to or impose upon any Party a duplicative right, entitlement, obligation or recovery with respect to any matter arising out of the same facts and circumstances.

Section 5.15&nbsp;&nbsp;&nbsp;&nbsp;<u>Bankruptcy</u>. All rights and licenses granted under or pursuant to this Agreement by a Licensor are, and will otherwise be deemed to be, for purposes of Section 365(n) of the United States Bankruptcy Code, licenses of rights to "intellectual property" as defined under Section 101 of the United States Bankruptcy Code regardless of the form or type of intellectual property under or to which such rights and licenses are granted and regardless of whether the intellectual property is registered in or otherwise recognized by or applicable to the

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United States or any other country or jurisdiction. The Parties agree that Licensee and its Group will retain and may fully exercise all of their rights and elections under the United States Bankruptcy Code.

\* \* \* \* \*

**[SIGNATURE PAGE FOLLOWS]**

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**IN WITNESS WHEREOF**, the Parties have caused this Agreement to be executed as of the Effective Date by their respective representatives thereunto duly authorized.

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| | |
|:---|:---|
| **HONEYWELL INTERNATIONAL INC.** | **HONEYWELL INTERNATIONAL INC.** |
| By: |  |
|  | Name: |
|  | Title: |
| **HONEYWELL AEROSPACE INC.** | **HONEYWELL AEROSPACE INC.** |
| By: |  |
|  | Name: |
|  | Title: |

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## Exhibit 99.1

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Exhibit 99.1**

**Information contained herein is subject to completion or amendment. A Registration Statement on Form 10 relating to these securities has been confidentially submitted to the U.S. Securities and Exchange Commission under the United States Securities Exchange Act of 1934, as amended.**

**Preliminary and Subject to Completion, Dated January 28, 2026**

**INFORMATION STATEMENT**

**Honeywell Aerospace LLC**

This information statement is being furnished in connection with the distribution by Honeywell International Inc. ("Honeywell") to its shareowners of Honeywell Aerospace LLC ("Aerospace"), a wholly owned subsidiary of Honeywell that will hold the assets and liabilities associated with Honeywell's global aerospace business. To implement the separation, Honeywell currently plans to distribute all of the shares of Aerospace common stock on a pro rata basis to Honeywell shareowners in a distribution that is intended to qualify as generally tax-free to Honeywell shareowners for U.S. federal income tax purposes. Prior to such distribution, Honeywell Aerospace LLC will convert into a Delaware corporation and will be renamed "Honeywell Aerospace Inc."

For every share of common stock of Honeywell held of record by you as of the close of business on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, which is the record date for the distribution, you will receive &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of Aerospace common stock. You will receive cash in lieu of any fractional shares of Aerospace common stock that you would have received after application of the above ratio. As discussed under "The Separation and Distribution—Trading Between the Record Date and Distribution Date," if you sell your shares of Honeywell common stock in the "regular-way" market after the record date and before the distribution date, you also will be selling your right to receive shares of Aerospace common stock in connection with the distribution. We expect the shares of Aerospace common stock to be distributed by Honeywell to shareowners at &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , Eastern Time, on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026. We refer to the date of the distribution of the Aerospace common stock as the "distribution date."

Until the separation occurs, Aerospace will be a wholly owned subsidiary of Honeywell, and consequently, Honeywell will have the sole and absolute discretion to determine and change the terms of the separation (or to terminate the separation), including the establishment of the record date for the distribution and the distribution date, as well as to modify the number of outstanding shares of common stock of Aerospace that it will retain, if any, following the distribution.

No vote of Honeywell shareowners is required for the distribution. Therefore, you are not being asked for a proxy, and you are requested not to send Honeywell a proxy, in connection with the distribution. You do not need to pay any consideration, exchange or surrender your existing shares of Honeywell common stock or take any other action to receive your shares of Aerospace common stock.

There is no current trading market for Aerospace common stock, although we expect that a limited market, commonly known as a "when-issued" trading market, will develop on or shortly before the record date for the distribution, and we expect "regular-way" trading of Aerospace common stock to begin on the first trading day following the completion of the distribution. Aerospace intends to have its common stock authorized for listing on The Nasdaq Stock Market LLC ("Nasdaq") under the symbol "HONA." Following the distribution, Honeywell will continue to trade on Nasdaq under the symbol "HON." Completion of the distribution is subject to the satisfaction or waiver of a number of conditions, which are described in more detail in "The Separation and Distribution—Conditions to the Distribution," including that the Aerospace common stock to be delivered in the distribution shall have been approved for listing on Nasdaq, subject to official notice of distribution.

**In reviewing this information statement, you should carefully consider the matters described under the section entitled "<u>[Risk Factors](#iaf36d807e40f46578ba0649b3b7197a7_1382)</u>" beginning on page <u>[32](#iaf36d807e40f46578ba0649b3b7197a7_1382)</u>.**

**Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved these securities or determined if this information statement is truthful or complete. Any representation to the contrary is a criminal offense.**

**This information statement does not constitute an offer to sell or the solicitation of an offer to buy any securities.**

**The date of this information statement is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .**

Notice of Internet Availability with instructions for how to access this information statement is first being mailed to Honeywell shareowners on or about &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**TABLE OF CONTENTS**

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| | |
|:---|:---|
| | **Page** |
| <u>[Questions and Answers About the Separation and Distribution](#iaf36d807e40f46578ba0649b3b7197a7_1379)</u> | <u>[1](#iaf36d807e40f46578ba0649b3b7197a7_1379)</u> |
| <u>[Information Statement Summary](#iaf36d807e40f46578ba0649b3b7197a7_1551)</u> | <u>[8](#iaf36d807e40f46578ba0649b3b7197a7_1551)</u> |
| <u>[Summary of Historical and Unaudited Pro Forma Combined Financial Data](#iaf36d807e40f46578ba0649b3b7197a7_1578)</u> | <u>[30](#iaf36d807e40f46578ba0649b3b7197a7_1578)</u> |
| <u>[Risk Factors](#iaf36d807e40f46578ba0649b3b7197a7_1382)</u> | <u>[32](#iaf36d807e40f46578ba0649b3b7197a7_1382)</u> |
| <u>[Cautionary Note Regarding Forward-Looking Statements](#iaf36d807e40f46578ba0649b3b7197a7_1605)</u> | <u>[57](#iaf36d807e40f46578ba0649b3b7197a7_1605)</u> |
| <u>[The Separation and Distribution](#iaf36d807e40f46578ba0649b3b7197a7_1625)</u> | <u>[59](#iaf36d807e40f46578ba0649b3b7197a7_1625)</u> |
| <u>[Dividend Policy](#iaf36d807e40f46578ba0649b3b7197a7_1645)</u> | <u>[66](#iaf36d807e40f46578ba0649b3b7197a7_1645)</u> |
| <u>[Capitalization](#iaf36d807e40f46578ba0649b3b7197a7_1665)</u> | <u>[67](#iaf36d807e40f46578ba0649b3b7197a7_1665)</u> |
| <u>[Unaudited Pro Forma Condensed Combined Financial Information](#iaf36d807e40f46578ba0649b3b7197a7_1230)</u> | <u>[68](#iaf36d807e40f46578ba0649b3b7197a7_1230)</u> |
| <u>[Business](#iaf36d807e40f46578ba0649b3b7197a7_1705)</u> | <u>[77](#iaf36d807e40f46578ba0649b3b7197a7_1705)</u> |
| <u>[Management's Discussion and Analysis of Financial Condition And Results Of Operations](#iaf36d807e40f46578ba0649b3b7197a7_910)</u> | <u>[102](#iaf36d807e40f46578ba0649b3b7197a7_910)</u> |
| <u>[Management](#iaf36d807e40f46578ba0649b3b7197a7_1804)</u> | <u>[121](#iaf36d807e40f46578ba0649b3b7197a7_1804)</u> |
| <u>[Directors](#iaf36d807e40f46578ba0649b3b7197a7_1826)</u> | <u>[122](#iaf36d807e40f46578ba0649b3b7197a7_1826)</u> |
| <u>[Director Compensation](#iaf36d807e40f46578ba0649b3b7197a7_2336)</u> | <u>[127](#iaf36d807e40f46578ba0649b3b7197a7_2336)</u> |
| <u>[Compensation Discussion and Analysis](#iaf36d807e40f46578ba0649b3b7197a7_2360)</u> | <u>[128](#iaf36d807e40f46578ba0649b3b7197a7_2360)</u> |
| <u>[Certain Relationships and Related Party Transactions](#iaf36d807e40f46578ba0649b3b7197a7_1868)</u> | <u>[141](#iaf36d807e40f46578ba0649b3b7197a7_1868)</u> |
| <u>[Material U.S. Federal Income Tax Consequences](#iaf36d807e40f46578ba0649b3b7197a7_1889)</u> | <u>[147](#iaf36d807e40f46578ba0649b3b7197a7_1889)</u> |
| <u>[Description of Material Indebtedness](#iaf36d807e40f46578ba0649b3b7197a7_1910)</u> | <u>[151](#iaf36d807e40f46578ba0649b3b7197a7_1910)</u> |
| <u>[Security Ownership of Certain Beneficial Owners and Management](#iaf36d807e40f46578ba0649b3b7197a7_1931)</u> | <u>[152](#iaf36d807e40f46578ba0649b3b7197a7_1931)</u> |
| <u>[Description of Aerospace Capital Stock](#iaf36d807e40f46578ba0649b3b7197a7_1951)</u> | <u>[153](#iaf36d807e40f46578ba0649b3b7197a7_1951)</u> |
| <u>[Where You Can Find More Information](#iaf36d807e40f46578ba0649b3b7197a7_1971)</u> | <u>[158](#iaf36d807e40f46578ba0649b3b7197a7_1971)</u> |
| <u>[Index to Combined Financial Statements](#iaf36d807e40f46578ba0649b3b7197a7_1)</u> | <u>[F-1](#iaf36d807e40f46578ba0649b3b7197a7_1)</u> |

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**Presentation of Information**

Unless otherwise indicated or the context otherwise requires:

• The information included in this information statement about Aerospace, including the Combined Financial Statements of Aerospace, which primarily comprise the assets and liabilities of Honeywell's aerospace supply, software, and services businesses, assumes the completion of all of the transactions referred to in this information statement in connection with the separation and distribution.

• References in this information statement to "Aerospace," "we," "us," "our," and "the Company" refer to Honeywell Aerospace LLC, a Delaware limited liability company (or after its conversion to a Delaware corporation, Honeywell Aerospace Inc.), and/or its subsidiaries after giving effect to the separation.

• References in this information statement to "Honeywell" refer to Honeywell International Inc., a Delaware corporation, and its consolidated subsidiaries, including, prior to completion of the separation, Aerospace and the Aerospace Business, unless the context otherwise requires or unless otherwise specified.

• References in this information statement to the "Aerospace Business" refer to Honeywell's operating segment that supplies aircraft products, software, and services to original equipment manufacturers and other customers in a variety of end markets, including air transport, regional, business, and general aviation aircraft, airlines, aircraft operators, and defense and space contractors.

• References in this information statement to the "Automation Business" refer to the businesses, activities and operations of Honeywell other than the Aerospace Business, including Honeywell's businesses that provide

i

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

industrial automation solutions for customers in refining/petrochemicals, life sciences, utilities, warehouse and logistics, building automation solutions, and energy and sustainable solutions.

• References in this information statement to the "separation" refer to the separation of the Aerospace Business from Honeywell's other businesses and the creation, as a result of the distribution, of an independent, publicly traded company, Aerospace, to hold the assets and liabilities associated with the Aerospace Business after the distribution.

• References in this information statement to the "distribution" refer to the distribution of all of Aerospace's issued and outstanding shares of common stock to Honeywell shareowners as of the close of business on the record date for the distribution.

• References in this information statement to Aerospace's per share data assume a distribution ratio of &nbsp;&nbsp;&nbsp;&nbsp; share(s) of Aerospace common stock for every share of Honeywell common stock.

• References in this information statement to Aerospace's historical assets, liabilities, products, businesses or activities generally refer to the historical assets, liabilities, products, businesses or activities of the Aerospace Business as the business was conducted as part of Honeywell prior to the completion of the separation.

• References in this information statement to the "separation agreement" refer to the Separation and Distribution Agreement that Honeywell and Aerospace will enter into to effect the separation and provide a framework for the relationship between Honeywell and Aerospace after the separation.

**Trademarks, Trade Names and Service Marks**

The trademarks, trade names, and service marks of Aerospace appearing in this information statement are, as applicable, our property, licensed to us or, prior to the completion of the distribution, the property of Honeywell. The Honeywell name and mark, and other trademarks, trade names, and service marks of Honeywell appearing in this information statement, are the property of Honeywell. Solely for convenience, trademarks, trade names, and service marks referred to in this information statement may appear without the "®", "™" or "℠" symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent possible under applicable law, our rights or the rights of the applicable licensor to these trademarks, trade names, and service marks. This information statement also contains additional trademarks, trade names, and service marks belonging to other parties. We do not intend our use or display of these other parties' trademarks, trade names or service marks to imply, and such use or display should not be construed to imply, a relationship with, or endorsement or sponsorship of us by, such other parties.

**Industry Information and Market Data**

Unless otherwise indicated, information contained in this information statement concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity, and market share, is based on information from third-party sources, our own analysis of data received from these third-party sources, our own internal data, commissioned market research, and management estimates. We derive management estimates from publicly available information, our knowledge of our industry, and assumptions based on such information and knowledge, which we believe to be reasonable. We have not independently verified data from third-party sources and cannot guarantee their accuracy or completeness. In addition, we believe that data regarding the industry, market size and our market position, and market share within such industry provide general guidance but are inherently imprecise. Assumptions and estimates of our and our industry's future performance are subject to a high degree of uncertainty and risk due to a variety of factors, including those described under the section of this information statement entitled "Risk Factors." These and other factors could cause future performance to differ materially from our assumptions and estimates. For additional information, see the sections of this information statement entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements."

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Non-GAAP Financial Information**

We provide financial information not in accordance with accounting principles generally accepted in the United States ("non-GAAP" financial information) to enhance the understanding of our financial information prepared in accordance with accounting principles generally accepted in the United States ("GAAP"), and it should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies.

We present Organic sales growth, Adjusted EBIT, Adjusted EBIT margin, and Free cash flow in this information statement because we believe such measures provide investors with additional information to measure our performance. Please refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for an explanation on why we use these non-GAAP financial measures, their definitions, their limitations, and reconciliations to their nearest GAAP financial measures.

Because of their limitations, these non-GAAP financial measures are not intended as alternatives to GAAP financial measures or as indicators of our operating performance and should not be considered as measures of cash available to invest in the growth of our business or that will be available to meet our obligations. We compensate for these limitations by presenting these non-GAAP financial measures along with other comparative tools, together with GAAP financial measures, to assist in the evaluation of operating performance.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**QUESTIONS AND ANSWERS ABOUT THE SEPARATION AND DISTRIBUTION**

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|:---|:---|
| ***What is Aerospace and why is Honeywell separating the Aerospace Business and distributing Aerospace common stock?*** | Aerospace, which is currently a wholly owned subsidiary of Honeywell, was formed to own and operate Honeywell's Aerospace Business. Honeywell intends to separate Aerospace from the rest of Honeywell by distributing all of the outstanding Aerospace common stock to Honeywell shareowners on a pro rata basis as of the record date for the distribution. The separation of Aerospace from Honeywell is intended, among other things, to better position the management of both companies to pursue opportunities for long-term growth and profitability unique to each company's business and to allow each business to more effectively implement its own distinct capital structure and capital allocation strategies. Honeywell expects that the separation will result in enhanced long-term performance of each business for the reasons discussed in the section entitled "The Separation and Distribution—Reasons for the Separation." |
| ***Why am I receiving this document?***  | Honeywell is delivering this document to you because you are a holder of shares of Honeywell common stock. If you are a holder of shares of Honeywell common stock as of the close of business on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, the record date of the distribution, you will be entitled to receive &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of Aerospace common stock for every share of Honeywell common stock that you hold at the close of business on such date. This document will help you understand how the separation and distribution will affect your post-separation ownership in Honeywell and Aerospace. |
| ***How will the separation of Aerospace from Honeywell work?***  | As part of the separation, and prior to the completion of the distribution, Honeywell and its subsidiaries expect to complete an internal reorganization (the "internal reorganization") in order to transfer the Aerospace Business to Aerospace. To accomplish the separation, Honeywell will distribute all of the outstanding shares of Aerospace common stock to Honeywell shareowners on a pro rata basis in a distribution intended to qualify as generally tax-free for U.S. federal income tax purposes. Following the separation, the number of shares of Honeywell common stock you own will not change as a result of the separation. |
| ***What is the record date for the distribution?***  | The record date for the distribution will be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026. |
| ***When will the distribution occur?***  | The distribution is subject to a number of conditions but, subject to the<br>satisfaction or waiver of such conditions, we expect that all of the outstanding shares of Aerospace common stock will be distributed by Honeywell at &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , Eastern Time, on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, to holders of record of shares of Honeywell common stock at the close of business on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, the record date for the distribution.  |
| ***What do shareowners need to do to participate in the distribution?***  | Shareowners of Honeywell as of the record date for the distribution will not be required to take any action to receive Aerospace common stock in the distribution, but you are urged to read this entire information statement carefully. No Honeywell shareowner approval of the distribution is required. You are not being asked for a proxy. You do not need to pay any consideration, exchange or surrender your existing shares of Honeywell common stock or take any other action to receive your shares of Aerospace common stock. Please do not send in your Honeywell stock certificates. The distribution will not affect the number of outstanding shares of Honeywell common stock or any rights of Honeywell shareowners, although it will affect the market value of each outstanding share of Honeywell common stock. |

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

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|:---|:---|
| ***How will shares of Aerospace common stock be issued?***  | You will receive shares of Aerospace common stock through the same channels that you currently use to hold or trade shares of Honeywell common stock, whether through a brokerage account, 401(k) plan, or other channel. Receipt of Aerospace shares will be documented for you in the same manner that you typically receive shareowner updates, such as monthly broker statements and 401(k) statements. <br>If you own shares of Honeywell common stock as of the close of business on the record date for the distribution, including shares owned in certificate form, Honeywell, with the assistance of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , the distribution agent (the "distribution agent"), will electronically distribute shares of Aerospace common stock to you or to your brokerage firm on your behalf in book-entry form. The distribution agent will mail you a book-entry account statement that reflects your shares of Aerospace common stock, or your bank or brokerage firm will credit your account for the shares. |
| ***How many shares of Aerospace common stock will I receive in the distribution?***  | Honeywell will distribute to you &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of Aerospace common stock for every share of Honeywell common stock held by you as of close of business on the record date for the distribution. Based on approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Honeywell common stock outstanding as of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, a total of approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Aerospace common stock will be distributed to Honeywell's shareowners. For additional information on the distribution, see "The Separation and Distribution." |
| ***Will Aerospace issue fractional shares of its common stock in the distribution?***  | No. Aerospace will not issue fractional shares of its common stock in the distribution. Fractional shares that Honeywell shareowners would otherwise have been entitled to receive will be aggregated and sold in the public market by the distribution agent. The net cash proceeds of these sales will be distributed pro rata (based on the fractional share each shareowner would otherwise be entitled to receive) to those shareowners who would otherwise have been entitled to receive fractional shares. Recipients of cash in lieu of fractional shares will not be entitled to any interest on the amounts paid in lieu of fractional shares. |
| ***What are the conditions to the distribution?***  | The distribution is subject to the satisfaction (or waiver by Honeywell in its sole and absolute discretion) of the following conditions: <br>• the U.S. Securities and Exchange Commission (the "SEC") declaring effective the registration statement of which this information statement forms a part, there being no order relating to the registration statement in effect, and no proceedings seeking such stop order shall be pending before or threatened by the SEC, and this information statement having been distributed to the holders of record of shares of Honeywell common stock;<br>• the Aerospace common stock to be delivered in the distribution having been approved for listing on Nasdaq, subject to official notice of distribution;<br>• the receipt by Honeywell of a written opinion from each of Wachtell, Lipton, Rosen & Katz ("Wachtell Lipton," and such opinion, the "Wachtell Lipton Tax Opinion") and Ernst & Young LLP ("EY," and such opinion, the "EY Tax Opinion," and the EY Tax Opinion together with the Wachtell Lipton Tax Opinion, the "Tax Opinions"), in each case in form and substance satisfactory to Honeywell (in its sole discretion), regarding the qualification of the distribution, together with certain related transactions, as a reorganization within the meaning of Sections 355 and 368(a)(1)(D) of the Code; |

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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| • the receipt by Honeywell of an opinion from an independent appraisal firm, in form and substance satisfactory to Honeywell, confirming that (i) following the distribution, Honeywell, on the one hand, and Aerospace, on the other hand, will be solvent and adequately capitalized, (ii) Honeywell has adequate surplus under Delaware law to declare the distribution and (iii) Aerospace has adequate surplus under Delaware law to declare the cash distribution, in each of clauses (i), (ii) and (iii), after giving effect to the cash distribution by Aerospace;<br>• no order, injunction, or decree issued by any governmental entity of competent jurisdiction or other legal restraint or prohibition preventing the consummation of all or any portion of the distribution or any of the related transactions being pending, threatened, issued, or in effect and no other event outside the control of Honeywell shall have occurred or failed to occur that prevents the consummation of all or any portion of the distribution;<br>• the internal reorganization having been effectuated prior to the distribution, except for such steps (if any) as Honeywell, in its sole discretion, has determined need not be completed or may be completed after the effective time;<br>• the Honeywell Board of Directors having declared the distribution and approved all related transactions, which approval may be given or withheld at its absolute and sole discretion (and such declaration or approval having not been withdrawn);<br>• Honeywell having elected the Board of Directors of Aerospace, as described in this information statement, effective immediately upon the distribution;<br>• (i) Aerospace having, and having caused its applicable subsidiaries to have, entered into all ancillary agreements to which it and/or such subsidiary is contemplated by separation agreement to be a party, and (ii) Honeywell having, and having caused its applicable subsidiaries to have, entered into all ancillary agreements to which it and/or such subsidiary is contemplated by separation agreement to be a party;<br>• the Aerospace financing arrangements being available on terms acceptable to Honeywell, Aerospace having completed the Aerospace financing arrangements and having received the proceeds in respect thereof and Honeywell being satisfied in its sole and absolute discretion that, as of the effective time, it shall have no liability whatsoever under the Aerospace financing arrangements;<br>• Aerospace having completed the Aerospace cash distribution to Honeywell;<br>• the actions and filings necessary or appropriate under applicable U.S. federal, state, or other securities laws or blue sky laws and the rules and regulations thereunder having been taken or made, and, where applicable, having become effective or been accepted by the applicable governmental entity; and |
| • no events or developments having occurred or existing that, in the sole and absolute judgment of the Honeywell Board of Directors, make it inadvisable to effect the distribution or would result in the distribution and related transactions not being in the best interest of Honeywell or its shareowners. |

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

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|:---|:---|
| | Honeywell and Aerospace cannot assure you that any or all of these conditions will be met, or that the separation or distribution will be consummated even if all of the conditions are met. Honeywell can decline at any time to go forward with the separation or distribution. In addition, Honeywell may waive any of the conditions to the distribution. For a complete discussion of all of the conditions to the distribution, see "The Separation and Distribution—Conditions to the Distribution." |
| ***What is the expected date of completion of the separation?***  | The completion and timing of the separation are dependent upon a number of conditions. We expect that the shares of Aerospace common stock will be distributed by Honeywell at &nbsp;&nbsp;&nbsp;&nbsp; , Eastern Time, on &nbsp;&nbsp;&nbsp;&nbsp; , 2026, to the holders of record of shares of Honeywell common stock at the close of business on &nbsp;&nbsp;&nbsp;&nbsp; , 2026, the record date for the distribution. However, no assurance can be provided as to the timing of the separation or distribution or that all conditions to the distribution will be met. |
| ***Can Honeywell decide to cancel the distribution of Aerospace common stock even if all the conditions have been met?***  | Yes. Until the distribution has occurred, the Honeywell Board of Directors has the right to terminate the distribution, even if all of the conditions are satisfied. Alternatively, Honeywell may waive any of the conditions to the distribution and proceed with the distribution even if such conditions have not been met. If the distribution is completed and the Honeywell Board of Directors waived any such condition, such waiver could have a material adverse effect on Honeywell's and Aerospace's respective businesses, financial condition or results of operations, the trading price of Honeywell's or Aerospace's common stock, or the ability of shareowners to sell their shares after the distribution. If Honeywell elects to proceed with the distribution notwithstanding that one or more of the conditions to the distribution has not been met, Honeywell will evaluate the applicable facts and circumstances at that time and make such additional disclosure and take such other actions as Honeywell determines to be necessary and appropriate in accordance with applicable law. |
| ***What if I want to sell my Honeywell common stock or my Aerospace common stock?***  | You should consult with your financial advisors, such as your stock broker, bank, or tax advisor. If you sell your shares of Honeywell common stock in the "regular-way" market after the record date and before the distribution date, you also will be selling your right to receive shares of Aerospace common stock in connection with the distribution. |
| ***What is "regular-way" and "ex-distribution" trading of Honeywell common stock?***  | Beginning on or shortly before the record date for the distribution and continuing up to and through the distribution date, we expect that there will be two markets in Honeywell common stock: a "regular-way" market and an "ex-distribution" market. Honeywell common stock that trades in the "regular-way" market will trade with an entitlement to shares of Aerospace common stock distributed pursuant to the distribution. Shares that trade in the "ex-distribution" market will trade without an entitlement to Aerospace common stock distributed pursuant to the distribution. If you are the registered holder of your shares and want to sell your shares, you should determine whether you want to sell your shares with or without an entitlement to shares of Aerospace common stock in the distribution and make any trades in the "regular-way" or "ex-distribution" market accordingly. If you decide to sell any shares of Honeywell common stock before the distribution date and hold your shares in "street name," you should make sure your stockbroker, bank, or other nominee understands whether you want to sell your Honeywell common stock with or without your entitlement to Aerospace common stock pursuant to the distribution. |
| ***Where will I be able to trade shares of Aerospace common stock?***  | Aerospace intends to list its common stock on Nasdaq under the symbol "HONA." Aerospace anticipates that trading in shares of its common stock will begin on a "when-issued" basis on or shortly before the record date for the distribution and will continue up to and through the distribution date, and that "regular-way" trading in Aerospace common stock will begin on the first trading day following the completion of the distribution. If trading begins on a "when-issued" basis, you may purchase or sell Aerospace common stock up to and through the distribution date, but your transaction will not settle until after the distribution date. Aerospace cannot predict the trading prices for its common stock before, on or after the distribution date. |

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

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|:---|:---|
| ***What will happen to the listing of Honeywell common stock?***  | Honeywell common stock will continue to trade on Nasdaq after the distribution. |
| ***Will the number of shares of Honeywell common stock that I own change as a result of the distribution?***  | No. The number of shares of Honeywell common stock that you own will not change as a result of the distribution. |
| ***Will the distribution affect the market price of my Honeywell common stock?***  | Yes. As a result of the distribution, it is expected that the trading price of shares of Honeywell common stock immediately following the distribution will be different from the "regular-way" trading price of such shares immediately prior to the distribution because the trading price will no longer reflect the value of the Aerospace Business. There can be no assurance whether the aggregate market value of the Honeywell common stock and the Aerospace common stock following the separation will be higher or lower than the market value of Honeywell common stock if the separation did not occur. This means, for example, that the combined trading prices of one share of Honeywell common stock and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of Aerospace common stock after the distribution may be equal to, greater than or less than the trading price of one share of Honeywell common stock before the distribution. |
| ***What are the material U.S. federal income tax consequences of the separation and the distribution?***  | It is a condition to the distribution that Honeywell receive a written opinion from each of Wachtell Lipton and EY, satisfactory to the Honeywell Board of Directors, regarding the qualification of the distribution, together with certain related transactions, as a reorganization within the meaning of Sections 355 and 368(a)(1)(D) of the Code. Accordingly, it is expected that, for U.S. federal income tax purposes, you will not recognize any gain or loss, and no amount will be included in your income, upon your receipt of Aerospace common stock pursuant to the distribution. You will, however, recognize gain or loss for U.S. federal income tax purposes with respect to cash received in lieu of a fractional share of Aerospace common stock. You should consult your own tax advisor as to the particular consequences of the distribution to you, including the applicability and effect of any U.S. federal, state, and local tax laws, as well as foreign tax laws. For more information regarding the material U.S. federal income tax consequences of the distribution, see the section entitled "Material U.S. Federal Income Tax Consequences." |
| ***What will Aerospace's relationship be with Honeywell following the separation?***  | After the distribution, Honeywell and Aerospace will be separate companies with separate management teams and separate boards of directors. Honeywell and Aerospace will enter into a separation agreement to effect the separation and to provide a framework for Aerospace's relationship with Honeywell after the separation, and they will enter into certain other agreements, including a transition services agreement, a tax matters agreement, an employee matters agreement, an intellectual property license agreement, and a trademark license agreement. These agreements will provide for the allocation among Aerospace and Honeywell of the assets, employees, liabilities and obligations (including, among others, investments, property and employee benefits and tax-related assets and liabilities) of Honeywell and its subsidiaries attributable to periods prior to, at and after the separation and will govern the relationship between Aerospace and Honeywell subsequent to the completion of the separation. For additional information regarding the separation agreement and other transaction agreements, see the sections entitled "Risk Factors—Risks Related to the Separation and Distribution" and "Certain Relationships and Related Party Transactions." |
| ***Who will manage Aerospace after the separation?***  | Led by James E. Currier, who will be Aerospace's President and Chief Executive Officer, Aerospace benefits from a world-class leadership team and a deep bench of tenured technologists with extensive industry experience. The average industry experience across Aerospace's senior leadership team is over&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; years and includes experience at Honeywell and across the broader aerospace and defense industry. For more information regarding Aerospace's directors and management, see "Management" and "Directors." |

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| ***Are there risks associated with owning Aerospace's common stock?***  | Yes. Ownership of Aerospace common stock is subject to both general and specific risks relating to Aerospace's business, the industry in which it operates, its ongoing contractual relationships with Honeywell, and its status as a separate, publicly traded company. Ownership of Aerospace common stock is also subject to risks relating to the separation. Certain of these risks are described in the "Risk Factors" section of this information statement, beginning on page <u>[32](#iaf36d807e40f46578ba0649b3b7197a7_1382)</u>. We encourage you to read that section carefully. |
| ***Does Aerospace plan to pay dividends?***  | Following the completion of the distribution, we expect to pay regular dividends to our shareowners, the amount of which will be determined by our Board of Directors and is expected to be in line with our peers. However, the timing, declaration, amount and payment of future dividends to shareowners, if any, will fall within the discretion of our Board of Directors. We will consider several factors when establishing a dividend policy, including our financial condition, earnings, sufficiency of distributable reserves, capital needs of our business, opportunities to retain future earnings to fund our business operations for future growth, capital requirements, debt service obligations, legal requirements, regulatory constraints, industry practice and other factors deemed relevant by our Board of Directors. There can be no assurance that we will initiate the payment of a dividend to our shareowners in the future or continue to pay any dividend if we do commence the payment of dividends. See "Dividend Policy." |
| ***Will Aerospace incur any indebtedness prior to or at the time of the distribution?***  | Yes. In connection with the distribution, Aerospace expects to issue senior unsecured notes with an aggregate principal amount of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion. Aerospace also intends to enter into (i) a senior unsecured revolving credit facility to be available for general corporate purposes in an aggregate committed amount as of the date of the distribution of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion and (ii) a senior unsecured commercial paper program to be available for general corporate purposes up to an aggregate amount at any time outstanding of $ billion. The terms of such indebtedness are subject to change and are expected to be finalized prior to the closing of the distribution. Aerospace expects to use proceeds from the revolving credit facility and commercial paper program for general corporate purposes. Aerospace expects to use the net proceeds from the senior unsecured notes (i) to make a cash distribution to Honeywell, (ii) to pay fees and expenses related to the separation, the distribution, and/or the debt transactions, and/or (iii) for general corporate purposes. See "Description of Material Indebtedness" and "Risk Factors—Risks Related to Our Business." |
| ***Who will be the distribution agent for the distribution and transfer agent and registrar for Aerospace common stock?***  | The distribution agent, transfer agent, and registrar for the Aerospace common stock will be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . For questions relating to the transfer or mechanics of the stock distribution, you should contact&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . |

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| ***Where can I find more information about Honeywell and Aerospace?***  | Before the distribution, if you have any questions relating to Honeywell's business performance, you should contact:<br>Honeywell International Inc.<br>855 South Mint Street<br>Charlotte, NC 28202<br>Attention: Investor Relations Department<br>After the distribution, Aerospace shareowners who have any questions relating to Aerospace's business performance should contact Aerospace at:<br>Honeywell Aerospace LLC<br>1944 E Sky Harbor Cir N<br>Phoenix, AZ 85034<br>Attention: Investor Relations Department<br>Aerospace intends to have an investor website at or prior to the distribution at www.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .com. **The Aerospace website and the information contained therein or connected thereto are not incorporated into this information statement or the registration statement of which this information statement forms a part, or in any other filings with, or any information furnished or submitted to, the SEC.** |

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**INFORMATION STATEMENT SUMMARY**

*The following is a summary of selected information discussed in this information statement. This summary may not contain all of the details concerning the separation or other information that may be important to you. To better understand the separation and our business and financial position, you should carefully review this entire information statement. Unless the context otherwise requires, the information included in this information statement about Aerospace, including the Combined Financial Statements of Aerospace, assumes the completion of all of the transactions referred to in this information statement in connection with the separation and distribution. Unless the context otherwise requires, or when otherwise specified, references in this information statement to "Aerospace," "we," "us," "our," and "the Company" refer to Honeywell Aerospace LLC, a Delaware limited liability company (or after its conversion to a Delaware corporation, Honeywell Aerospace Inc.), and its subsidiaries. Unless the context otherwise requires, references in this information statement to "Honeywell" refer to Honeywell International Inc., a Delaware corporation, and its consolidated subsidiaries, including Aerospace prior to completion of the separation.*

*Unless the context otherwise requires, or when otherwise specified, references in this information statement to our historical assets, liabilities, products, businesses or activities of our businesses are generally intended to refer to the historical assets, liabilities, products, businesses or activities of the Aerospace Business of Honeywell as it was conducted as part of Honeywell prior to completion of the separation.*

**The Company**

We are a leading global tier-1 aerospace and defense supplier of mission critical systems and technologies that enable the production, maintenance, and safe operation of aerospace and defense platforms. Our systems and technologies support original equipment manufacturer ("OEM"), government, defense prime contractor (which we refer to as a "defense prime"), and aircraft operator customers across the Commercial Aviation, Defense and Space, and Business Aviation end markets. Our comprehensive portfolio of market leading systems and technologies are organized into the following segments: Electronic Solutions ("ES"), Engines & Power Systems ("E&PS"), and Control Systems ("CS"). As of June 30, 2025, we employ over 30,000 people across more than 90 engineering, manufacturing, and maintenance, repair, and overhaul ("MRO") facilities globally.

Our proud heritage includes over a century of safe and reliable performance and continuous innovation across every major era of flight. Since inventing the world's first autopilot in 1914, we repeatedly introduced category-defining technologies including the first commercial auxiliary power units ("APUs") in the 1950s, the Ground Proximity Warning System in the 1970s, integrated digital cockpits in the 1990s, combined power and thermal management in the 2000s, electromechanical control actuation in the 2010s and, most recently, the first automated runway safety system that we expect to be transformative for flight operations. Over time, we have leveraged our flight heritage to grow in attractive defense markets where our systems and technologies have been mission critical to U.S. national security and NASA missions for decades. Our long track record, deep industry experience and cutting-edge technology are the reasons many customers, including the largest and most discerning companies across the Commercial Aviation, Defense and Space, and Business Aviation end markets, consistently turn to us to deliver advanced systems that power and protect their platforms.

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Below is a description of net sales by segment, channel, and geographic area for the year ended December 31, 2024. For purposes of the descriptions and reports disclosed in this information statement, the region of Europe, Middle East, and Africa includes India consistent with our internal reporting structure ("EMEA").

![image2.jpg](image2.jpg)

We are a "nose-to-tail" provider and manufacturer of a comprehensive portfolio of differentiated systems and technologies, which drives a large installed base that enables recurring aftermarket services throughout the life of the platforms we support. Our installed base consists of platform- and end market-agnostic systems on approximately 90% of the in-service aircraft fleet and our solutions are specified into the design of over 250 in-production aerospace and defense platforms. Given the demanding certification processes, our installed base typically delivers a recurring revenue stream for the life of the platform that often extends for many decades. From 2022 to 2024, we were awarded contracts that we expect will contribute over $70 billion of revenue during the life of these platforms, which we believe positions us for strong revenue growth.

Our aftermarket services include the provision of new replacement parts, Honeywell-certified used parts, and MRO activities that we provide directly or through operators, channel partners, and independent service providers. In addition, we support our installed base through the development and production of retrofits, modifications, and upgrades ("RMU") to enhance safety, efficiency, reliability and extend the life of in-service aircraft platforms. These RMU are targeted to support our long-cycle platforms which can remain in service for up to 50 years. Our RMU offerings delivered revenue of $1.5 billion in the year ended December 31, 2024, representing 10% of Aerospace revenue, and has grown at an approximately 20% compound annual growth rate since the year ended December 31, 2021. Together, our aftermarket services and RMU offerings drive highly visible, recurring and high-margin revenue growth.

We prioritize investment in research, development and engineering to develop technologies that help our customers solve their most essential and complex mission requirements. A core tenet of our coordinated company and customer funded research, development, and engineering investment strategy is to develop common systems and technologies that address applications across Commercial Aviation, Defense and Space, and Business Aviation end markets. We believe this "develop once, deploy anywhere" approach drives efficiency in our manufacturing and supply chain while maximizing return-on-investment ("ROI"). We maintain a robust innovation pipeline focused on end-market agnostic technologies that are aligned with our customers' evolving requirements, including electrification, autonomy, efficient engines, and enhanced safety. We believe our common technology platform and focus on our customers' priorities allows us to win high-value content and contracts with both OEMs and operators.

From 2022 to 2024, we significantly increased our supply chain team and strategically invested more than $1 billion across our supply chain to improve our ability to scale effectively and deliver for our customers. These investments – spanning in-sourcing, dual-sourcing, multi-sourcing, and touch and non-touch labor – significantly improved our

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supply chain resiliency. As a result, we achieved 13 consecutive quarters of double-digit factory output growth through September 2025, reinforcing our ability to deliver high-value, mission critical products reliably and at scale. We leverage digital connectivity and advanced planning tools, including the integration of AI solutions, to enhance supplier collaboration, procurement efficiency, and aftermarket service. In parallel, ongoing investments in smart factory initiatives and selective automation further strengthen our execution capabilities.

In connection with the separation, Honeywell will provide the Honeywell Accelerator operating system tools and processes to us. Honeywell has developed Accelerator, a world-class management and operating framework, over the past two decades, creating a culture of continuous improvement, operational excellence, and disciplined execution. After the separation and distribution, we will continue to use, evolve, and tailor these tools and processes to develop the Honeywell Aerospace operating system for our standalone business. The Honeywell Aerospace operating system underpins our business model and will continue to play a critical role in enabling our integrated commercial and defense supply chains and shared manufacturing capabilities. Our operating system has matured over time, leveraging lean, Six Sigma and digital tools to provide real-time visibility into supply chain, production, and operational performance Our digital tools provide real-time insight into research, development, and engineering spend and milestone adherence, orders and demand, inventory tracking, production output and manufacturing stage metrics. By standardizing business processes, aligning the organization around clear objectives, and leveraging these digital tools, the Honeywell Aerospace operating system enhances our ability to drive efficiency, productivity, and performance across all facets of our operations, and ultimately to build a strong foundation for profitable growth, margin expansion and cash generation.

We complement our organic growth with strategic partnerships, strong M&A capabilities, and a well-defined inorganic roadmap. In the last two years, we successfully completed and integrated two highly strategic portfolio-enhancing acquisitions: Civitanavi Systems ("Civitanavi") and CAES Systems Holdings LLC ("CAES"), which added new systems and technologies to our capabilities in alternative navigation and electronic warfare and enhanced our European defense footprint. We maintain a robust pipeline of potential acquisition opportunities and apply a disciplined approach to evaluating and executing M&A, which focuses on adding complementary technologies, increasing content on next-generation platforms, strengthening our supply chain, and expanding our customer and geographical reach. For completed acquisitions, we focus on value creation through cross-selling adjacent technologies, improving operating models and global scale, and enhancing aftermarket services performance and RMU development. Following the separation, we expect to continue to prioritize value-enhancing M&A and benefit from our tailored capital allocation as a pure-play tier-1 global aerospace and defense supplier.

**Our Portfolio**

Within each of our segments, we manufacture a comprehensive portfolio of differentiated systems and scalable technologies within each segment that are highly integrated and mission critical to a customer base of OEMs, defense primes, and aircraft operators across our end markets. The following table summarizes selected solutions provided through each of our three market-leading segments:

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![image6.jpg](image6.jpg)

Our portfolio's strength lies in delivering integrated systems and technologies, leveraging shared resources and capabilities across different end markets. As a result, we have become a key partner in the design and production of approximately 90% of aircraft currently in service. In the year ended December 31, 2024, no single platform accounted for more than 6% of our revenue. The exhibit below highlights our comprehensive portfolio and complementary capabilities across the Commercial Aviation, Defense and Space, and Business Aviation end markets:

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In Commercial Aviation, we are a trusted partner and supplier of mission critical systems and technologies to major OEMs including Boeing, Airbus, and Embraer. We provide a broad range of systems to the most prolific in-service narrowbody and widebody platforms including the Boeing 737, Airbus A320, Boeing 777/777X, and Airbus A350. In the aftermarket, we maintain longstanding relationships with leading global operators such as Lufthansa, United Airlines, Emirates, and Delta, and support them with high-value aftermarket solutions and services.

In Defense and Space, we are a mission critical supplier of systems and technologies to major U.S. defense primes and international defense companies including BAE Systems, Boeing, Leonardo, Lockheed Martin, Northrop Grumman, and RTX Corporation. We provide a broad range of systems such as navigation, power and thermal management, electro-magnetic defense, and autonomy. Our systems are mission critical to the majority of next generation platforms, including MV-75, F-35, and in-production military helicopters, transport and utility aircraft, fighters, and unmanned platforms where there is a significant growth runway, including Guided Multiple Launch Rocket System (GMLRS), M-1 Abrams, Advanced Medium Range Air-to-Air Missiles ("AMRAAM"), F/A-18, P-8, CH-47, V-22, C-130, F-15, and MQ-9. In the aftermarket, we support our installed base with extensive sole-

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source services, including direct and local maintenance through partnership with U.S. Department of Defense depots and international Ministries of Defense ("MODs").

In Business Aviation, we are a leading supplier of systems and technologies to major OEMs, including Gulfstream, Bombardier, Embraer, Dassault, and Textron. We provide a broad range of systems including engines, APUs, avionics, and satellite communication, to most business jet platforms and especially midsize and above category jets like Challenger, Global, Gulfstream 280-800, Falcon Jets, and Embraer's Praetor. In the aftermarket, we have a strong channel network, partnerships with independent service providers and longstanding relationships with managed fleets and fractional operators that rely on our services to conduct flight operations.

As a global business, our operations can be affected by a variety of economic, industry and other factors, including those described in this section and in the sections titled "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in this information statement.

**Our Industry**

Our business serves the Commercial Aviation, Defense and Space, and Business Aviation end markets globally. These markets consistently outpaced GDP growth in recent years, benefiting from trends such as expanding middle-class populations, increasing consumer wealth, rising demand for domestic and international travel, increasing investments in aerospace and defense platform modernization, growing production rates, and increasing defense budgets. Further, we anticipate that these end markets will benefit from continued innovation, such as increasing electrification, connectivity and data solutions, requirements for additional computing power, and efficiency and safety standards, as well as modernization of legacy defense systems, and development of autonomous aircraft.

Within our end markets, our business serves both OEMs and the global aftermarket channels offering a diversified stream of recurring revenues. OEM revenues are directly tied to production rates across key aircraft programs, such as the Boeing 737, Airbus A320, and Lockheed Martin F-35, Gulfstream family, Challenger 3500, and Embraer Praetor, as well as buyer-directed selectables of equipment enhancements for aircraft purchased from OEMs. In the aftermarket, RMU and MRO related revenues benefit from increasing safety, connectivity, and efficiency standards for aircraft systems globally. The ongoing expansion of global aircraft fleets, increased aircraft utilization rates, and growing demand for advanced avionics, connectivity, and performance-enhancing upgrades drives growing aftermarket demand for RMU and MRO products. Our business' exposure to each of these long-term growth drivers reduces our dependency on any single end market or platform and contributes to greater business resiliency through economic cycles.

***Commercial Aviation***

The Commercial Aviation end market represented 38% of our 2024 revenue and includes a broad range of customers such as commercial aircraft OEMs, airline operators, cargo operators, and RMU and MRO service providers. We estimate that the Commercial Aviation end market is a $85+ billion global industry, with the OEM and aftermarket markets forecasted to grow at a mid-single digit compounded annual growth rate over the next 10 years.

Growth in Commercial Aviation is underpinned by several key structural drivers. Global air passenger volumes have steadily increased and are forecasted to grow further due to population growth, urbanization, rising middle-class consumption, and the expansion of airline networks. In parallel, global GDP growth continues to fuel increased demand for cargo transport as global supply chains continue to expand. Today, Airbus and Boeing maintain a backlog to support over 10 years of new aircraft production, which creates a highly visible growth outlook for both OEM and aftermarket revenues across our business. Further, the aging of aircraft fleets globally drives increasing demand for RMU and MRO services from airline operators, directly benefiting our business. We expect these macroeconomic factors will continue to drive an increase in production rates, orders for new aircraft, and demand for aftermarket modernization and enhancements.

Evolving technology and regulatory trends also impact the Commercial Aviation end market. Increasing demand for electrification, thermal management, and connected data solutions in commercial aircraft is expected to drive growth

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opportunities for aerospace suppliers. Additionally, increasing regulatory pressure to reduce emissions and improve fuel efficiency accelerates the need for more advanced aviation solutions. Thermal management systems, which enhance cooling and control of aircraft, are a key area for growth, providing increased fuel efficiency, extended range capabilities, and longer lifespan for aircraft. Broader adoption of connectivity technologies at our customers provides opportunities for increased safety and efficiency. Demand for greater connectivity is leading to the integration of advanced communications, data analytics, and software-enabled services. We believe our product portfolio, strong flight heritage, existing commercial relationships, and new product development capabilities position us to capture growth from these evolving trends.

***Defense and Space***

The Defense and Space end market represented 40% of our 2024 revenue and includes products and services used for military and security applications by national governments and defense agencies. Within Defense and Space, our business equips and sustains over 150 platforms across fighter aircraft, rotorcraft, and other manned and unmanned defense systems. We believe Defense and Space represents a total addressable market of approximately $57 billion globally, driven by the large defense primes, international defense OEMs, and MODs. International demand is increasing, with defense spending in the North Atlantic Treaty Organization ("NATO"), India, South Korea, Japan, and Australia growing to support military modernization and rearmament initiatives. Increases in NATO defense spending to meet targets equal to 5% of annual GDP represent a significant growth opportunity for our business.

Growth of the defense and space industry is reflective of broader geopolitical conditions and changes in global defense budgets. While ongoing geopolitical conflicts have led to increased spending by the United States and other allies in the near term, we expect long-term demand will be driven by global military modernization initiatives with a focus on conflict deterrence through military strength. In addition, we expect our customers will demand innovative technologies delivering reliable, quick-to-deploy, and lower-cost solutions that can be built in greater quantities. Further, we expect increased demand for the development of advanced space defense systems and focus on space superiority. We believe our flight heritage, history of successful customer partnerships, and continuous investment in advanced technologies, position us to capture future growth opportunities across this end market.

***Business Aviation***

The Business Aviation end market represented 22% of our 2024 revenue and includes private individuals, corporations, and government entities that operate aircraft for business or personal use. Major OEMs include Gulfstream, Bombardier, Embraer, Dassault, and Textron. Though we design and manufacture components for every major class, model, and size of business aircraft, including light, medium, and heavy jets, we are focused on the higher-value mid- and full-size categories of these aircraft. We believe Business Aviation represents a total addressable market of approximately $25 billion globally, where we serve OEMs, fleet operators, and aftermarket RMU and MRO service providers. We expect this end market to grow at a mid-single digit compounded annual growth rate over the next 10 years, supported by positive tailwinds related to an increase in OEM production rates, growth in private air travel, RMU and MRO demand for aging aircraft, and increased flight efficiency and safety requirements.

In addition to the growth drivers in Commercial Aviation, growth in Business Aviation is driven by increasing global personal wealth and corporate financial performance. Positive economic conditions enable increased purchases of business aircraft by fleet operators, corporates, and individuals who constitute the market's main end customer base. Additionally, we believe growth in fractional business jet fleet operators has increased the addressable market for Business Aviation, making private jet travel more affordable and accessible to consumers and increasing our market growth opportunity.

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**Our Competitive Strengths**

We believe that we are well positioned in attractive end markets with several competitive strengths, including:

***Leading global tier-1 aerospace and defense supplier to OEMs, defense primes, and aircraft operators across all major aviation and defense end markets, enabled by a comprehensive portfolio of differentiated systems and technologies***

We are a tier-1 global aerospace and defense supplier, providing mission-critical systems and innovative technologies to the largest and most discerning customers across the aerospace, defense, and space end markets. We estimate that our systems are installed on approximately 90% of the in-service aerospace fleet and directly integrated into the design of over 250 in-production platforms across Commercial Aviation, Defense and Space, and Business Aviation.

Our comprehensive portfolio of mission-critical systems and technologies reflects years of customer collaboration and deep platform knowledge, leading to long-term customer relationships. These systems have high technical complexity, are essential to the production and maintenance of aerospace and defense platforms, and help ensure the safe, efficient, and reliable operation of aircraft, rotorcraft and spacecraft. Our leading position as a "nose-to-tail" provider and ability to produce differentiated systems and technologies is underpinned by our extensive portfolio of over 9,000 active patents, deep bench of engineers and technologists, and more than 90 manufacturing, engineering, and MRO facilities globally. We believe that our leading, global brand name and operational footprint, alongside our expertise and track record for safety, reliability, and innovation make us a critical development partner and supplier of choice for aerospace customers across all end-markets.

***Well positioned to capitalize on a multi-year growth cycle in aerospace and defense production and resulting need for aftermarket support, with incremental growth opportunities from RMU that support existing fleets***

We see significant opportunities for growth across our segments from the ramping production rates of new aircraft, increasing flight activity, increasing global defense spending, and RMU opportunities that are not tied to flight hours or aircraft build rates. We believe our positioning on in-production platforms, investments in electrification, autonomy, connectivity, enhanced safety, and next-generation defense, including a robust RMU pipeline, will position us to realize above-market growth.

In Commercial Aviation, we are a close partner and critical supplier to both Airbus and Boeing, with significant sole-sourced and selectable content on their current generation narrowbody and widebody aircraft. Airbus and Boeing are estimated to have over 10 years of production in backlog, and their in-production aircraft will likely remain in service longer than prior generations of commercial aircraft.

In Defense and Space, we are a critical supplier to many next-generation and in-production military spacecraft, aircraft, rotorcraft, fighters, and unmanned platforms. We believe we have differentiated capabilities with respect to augmented / anti-jamming navigation, power and thermal management, and electronic warfare that position us well within higher growth segments. Additionally, we believe we are well positioned to benefit from international governments' focus on defense spending, particularly in European and Asian markets where our footprint and non-export-controlled systems allow us to support demand for localized production. Our international defense revenue achieved double-digit annual growth since 2019 and as of 2024 represents approximately 25% of our total Defense and Space revenue.

In Business Aviation, we benefit from record high fleet levels and strong growth in the midsize and above categories from Bombardier, Embraer, Dassault, Cessna, and Gulfstream, where we supply engines, avionics, environmental control systems, satellite communications, and APUs.

We are focused on revenue opportunities associated with our large base of installed, highly engineered aerospace systems and technologies. Because of the significant technological differentiation in our products and the demanding certification processes required in the industry, our customers provide us with a consistent flow of aftermarket service business. Systems and technologies on aerospace and defense platforms typically require ongoing replacement and maintenance over service lives in excess of 30 years, which creates consistent long-term

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opportunities for our business, including growth from RMU. We believe our broad diversification across segments and end markets reduces concentration risk and contributes to the stability of our financial performance.

***Leading technology capabilities that can be utilized to support multiple platforms across verticals***

Our business model focuses on developing systems and technologies to solve technically complex problems facing the aerospace and defense industry in a manner that allows for use across multiple applications, aircraft, and end markets. We invest, often jointly with our customers, to develop and deploy new systems and technologies for the production and maintenance of their platforms where we are often the sole supplier. As a result of our product differentiation and research, development, and engineering model, our systems and technologies support higher-value solutions and generate a durable stream of recurring aftermarket revenue over time.

We operate with a "develop once, deploy anywhere" mindset, shortening the timeline for new product introductions, improving ROI on research, development and engineering spend and increasing the addressable market for these innovative solutions. Our focus lies in continuously investing in common technologies and applying these across multiple applications, aircraft, rotorcraft, spacecraft, and end markets – driving scale and efficiency in our manufacturing and supply chain while maximizing ROI. We believe our significant intellectual property and in-house expertise gives us a strong competitive advantage in developing these technologies with our customers. The table below includes a few selected examples where core systems and technologies are built upon to serve multiple platforms across end markets:

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![image1.jpg](image1.jpg)

***Strong innovation pipeline aligned with customers' future requirements***

We prioritize investment in new systems, RMU, and breakthrough technology initiatives ("BTI") that increase our content on current generation platforms, support next generation platforms, enable access to new markets, and increase aftermarket opportunities. Our investment approach seeks to balance support for current platforms as well as new systems that are aligned with key industry themes and our customers' future requirements.

In the last three years we invested over $1.5 billion in internally funded research, development, and engineering efforts. The exhibit below highlights efforts to address key industry themes and our customers' future requirements:

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![image5.jpg](image5.jpg)

***Highly differentiated operating system that promotes strong organic growth, margin expansion, and cash flow***

The Honeywell Aerospace operating system, leveraging the Honeywell Accelerator operating system, is a comprehensive management and operational framework based off decades of maturity to drive growth and long-term competitive advantages across our global operations through increased efficiency, manufacturing productivity, value-based pricing, customer problem solving, and innovation. Our operating system also fosters a culture of continuous improvement, operational excellence, best practices and disciplined execution by helping to standardize business processes and aligning our organization around clear objectives.

We apply our operating system within our Integrated Supply Chain ("ISC") to drive operational excellence, improved visibility, and consistency across all manufacturing sites enabling greater execution discipline and smarter and safer enterprise-wide decision-making.

Our application of our operating system also includes our robust Health, Safety, and Environmental ("HSE") Management System, which is built on internationally recognized standards, including ISO 14001 and ISO 45001. It provides a structured and scalable framework for identifying and managing HSE risks, ensuring regulatory compliance, and driving continuous improvement across all operations.

Some operational proof points of applying the Honeywell Accelerator operating system, the predecessor of our operating system, include:

• Consistently low, industry leading, Total Case Incident Rate ("TCIR") for over a decade. In 2024, our TCIR was one-eighth the aerospace sector average.

• Focused supplier recovery initiatives with suppliers responsible for over 30% of overall supply, resulting in a 34% increase in supplier receipts from 2023 to 2024.

• More than 25 Kaizens executed with key mechanical machining suppliers in the last two years, resulting in a 25% increase to uptime.

• Immersive workforce training, smarter tooling, and reimagined shop floor design, resulting in over 30% YoY improvement in engine output (in the year-to-date period from January 2025 to August 2025) for our HTF7000 engine at our Phoenix, AZ location.

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***Resilient, well-invested supply chain and production system ready to deliver on the next phase of our growth***

From 2022 to 2024, we significantly increased our supply chain team and strategically invested more than $1 billion across our supply chain to improve our ability to scale effectively and deliver for our customers. These investments – spanning in-sourcing, dual-sourcing, multi-sourcing, and touch and non-touch labor – significantly improved our supply chain resiliency. As a result, we achieved 13 consecutive quarters of double-digit factory output growth through September 2025, reinforcing our ability to deliver high-value, mission critical products reliably and at scale. We leverage digital connectivity and advanced planning tools, including the integration of AI solutions, to enhance supplier collaboration, procurement efficiency, and aftermarket service. In parallel, ongoing investments in smart factory initiatives and selective automation further strengthen our execution capabilities.

Looking ahead, we plan to build on this momentum through targeted capacity expansion as well as standardization and optimization initiatives to support new product introductions and increased demand. We are pursuing a multifaceted approach to transforming our supply chain and production system, utilizing process and digital solutions as crucial enablers across four key areas:

• Talent & people: Upskill and enhance talent while shifting to a more data-driven and analytical supply management model with a focus on driving productivity and efficiencies.

• Supply resiliency: Improve the resiliency of our supply base to ensure stable delivery and cost by focusing on sourcing excellence and improving supplier readiness with appropriate mix of insourcing and multi-sourcing to grow capacity, consolidate fragmented categories and standardize components.

• Honeywell Aerospace operating system: Implement lean principles to streamline processes and eliminate waste, conduct thorough assessments of production capacity and prioritize funds to upgrade or replace aging equipment with more reliable, modern alternatives.

• Planning excellence: Strengthen professional planning organization by fully utilizing best-in-class digital tools which are expected to automate the majority of today's planning workload with the use of AI predictive analytics.

By focusing on these areas, we aim to enhance operational efficiency, foster a skilled workforce, and ensure a resilient supply chain capable of adapting to industry demands. In parallel, our investments in processes and digital capabilities, such as smart factory initiatives and automation, are intended to further strengthen our execution capabilities.

***Experienced management team and performance-driven corporate culture***

We have a world-class leadership team and a deep bench of talent that is passionate about aerospace, technology and advancing next generation capabilities for the world's leading aerospace OEMs, defense primes, and aircraft operators. We believe our people and unique culture are significant competitive advantages that help drive our operational efficiency and innovation, allowing us to create value for our customers and our shareowners in any market environment.

Our leadership team has a proven track record of expanding our portfolio, strengthening our relationships with key OEMs and customers, and implementing operational initiatives that have been transformational for our supply chain. The average industry experience across our senior leadership team is over&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; years and includes experience at Honeywell and across the broader aerospace and defense industry.

In addition, we maintain a performance-driven culture with a focus on safety, reliability, continuous improvement, and driving innovation. Through decades of cultivation, we have built an extensive ecosystem of tenured technologists with deep aerospace expertise, who help to drive innovation across the organization. Our team is deeply engaged, committed to our high-performance culture, and empowered to drive the organization toward the future of flight.

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**Our Growth Strategies**

Our core strategy is to continue building on our position as the world's leading independent, global supplier of mission critical systems and technologies for OEMs, defense primes, and aircraft operators across the aerospace and defense end market. Our plan to realize above-market growth is built upon the following strategies:

***Development and production of new systems and technologies that increase our position on next generation platforms and grow our installed base***

We focus on developing and launching differentiated systems and technologies that can be utilized across multiple platforms and end markets. Through our close customer relationships, we can anticipate future needs and often partner with our customers on the development of solutions. Select innovations for our Commercial Aviation, Defense and Space, and Business Aviation customers that are expected to contribute to our near-term growth include:

• **Honeywell Anthem Integrated Avionics:** Advanced cockpit system with a high level of connectivity, an intuitive interface similar to smart devices, and a customizable design that can be tailored for diverse types of aircraft, including commercial, business aviation, defense and advanced air mobility ("AAM") platforms.

• **Honeywell Assure Advanced Actuation:** Modular and scalable electromechanical flight actuation enabling critical flight control for diverse types of aircraft, including AAM, military aircraft, business jets, as well as missile applications, including the Guided Multiple Launch Rocket System (GMLRS), for which production levels are expected to double by 2028.

• **Honeywell Attune High-Density Cooling:** Advanced cooling technology that leverages high-speed centrifugal compressors, next generation refrigerants and power electronics to cool heat-generating electronic components, batteries, and cabins on all forms of aircraft, including AAM, commercial aircraft, military aircraft, business jets.

• **Augmented / Anti-Jamming Navigation Systems:** Alternative navigation technology enabling the use of sensors to augment and improve GPS and other inertial navigation data sources for commercial aircraft, business jets, military aircraft, AAM vehicles, missiles, and other guided munitions.

• **HTF Engine Derivatives:** New derivatives that increase the performance and efficiency of our HTF7000 engine for super-midsize business aircraft.

• **Electrification (new APUs; power generation):** New derivatives of existing APUs and new power generation approaches that offer improved efficiency for in-production commercial narrowbody aircraft and AAM applications.

• **Safety Innovations:** Continuous surveillance systems for runway and taxiway areas to detect potential conflicts and provide flight crew situational awareness and time to recognize hazards and take corrective actions via our Surface Alert ("SURF-A") Runway Awareness and Advisory System and Smart Landing systems.

***Incremental aftermarket growth through new customers, expanded MRO offerings and RMUs***

We supply aftermarket products and services to a large and growing installed base, which today consists of approximately 90% of in-service aircraft. We believe that new customers, expanded MRO offerings and our RMU offerings represent a significant and growing opportunity given the increasing age of in-service fleets and heightened customer focus on efficiency, autonomy and extending platform life across end-markets.

We focus on opportunities to generate profitable business from new customers and expand support to existing customers by utilizing our broad capabilities, extensive engineering expertise and reputation for quality and performance. Our strategy to achieve this relies on digitization, evolving service models, new value-added offerings, additional licensed channel partners, and partnerships with defense ministries to deliver direct, local maintenance support. We have a robust pipeline and launched several impact initiatives, including MRO network optimization,

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MRO campaigns targeting new value-added service opportunities, and further alignment of our business jet service model to support fractional operators and larger cabin business jet categories.

We have a robust pipeline of RMU solutions underpinned by strong demand from customers across end-markets seeking to enhance their in-production platforms and defer capital-intensive fleet replacements by extending platform life through upgrades. Some of our most prevalent RMU solutions include Ensemble digital engine monitoring, intuitive avionics and situational awareness tools including Anthem, SURF-A, SmartLanding/ SmartRunway, Landing Runway Taxi Lights, hardened navigation systems including anti-jamming and non-GPS alternatives, as well as high-speed onboard satellite connectivity. Our RMU solutions revenue increased at an approximately 20% compound annual growth rate since the year ended December 31, 2021 to $1.5 billion, representing 10% of total Aerospace revenues. Much of this growth is driven by software upgrades, enabling us to realize higher margins on our incremental growth.

***Growing our capabilities to support national defense priorities globally***

We believe that the global threat environment and increased prioritization of defense spending has resulted in sizable and growing demand in international defense markets for our defense offerings, particularly for non-export-controlled systems and local capabilities that we believe we are well positioned to provide. Our commercially developed, off-the-shelf technologies are well positioned for direct commercial sales to international defense primes and MODs. We have made substantial, decades-long investments in international engineering resources at our engineering centers in the Czech Republic, the United Kingdom, Poland, and India. We provide our international customers with critical defense products such as navigation, electronic warfare, power and thermal management, and unmanned aerial vehicles.

We focus on advancing a local-for-local strategy to support international defense priorities and regional self-reliance, particularly within the European Union. With over 1,000 engineers based in the Czech Republic and Poland, we are developing technologies in-region for in-region use, with a focus on emerging technologies for critical defense applications. Our recent acquisition of Civitanavi, an Italy-based inertial navigation provider with domestic manufacturing capabilities, further strengthens this approach. Together, our local development capabilities and regional manufacturing presence provide a strong foundation for future growth in international defense markets. We believe this strategy enhances our competitiveness, supports customer proximity, and enables compliance with national sovereignty requirements, particularly in the European Union.

Our international defense revenue achieved double-digit annual growth since 2019 and as of 2024 represents approximately 25% of our total Defense and Space revenue. In the year ended December 31, 2024, we secured international defense contract wins representing more than $2 billion in expected revenue over the life of such contracts, which we believe underscores the success of our international strategy and strength of our defense-orientated solution offering.

***Expansion into attractive adjacencies through investment in breakthrough technology initiatives***

We have a large pipeline of initiatives developed in partnership with customers to solve their most complex future requirements. Our BTIs are developed collaboratively with our customers, allowing us the ability to share development costs, and represent systems and technologies that are outside our current market footprint but are closely aligned with our core capabilities. We believe that these investments will continue to be a key source of industry-transforming technology and an effective vector through which we will seek to access new markets and augment growth alongside our customers.

We typically invest approximately 10% of our research, development, and engineering in advanced technologies with the aim of solving the industry's future mission requirements, typically looking out 10 to 20 years ahead with our customers. We have long anticipated key industry trends such as autonomy, electrification, next generation defense, increased safety, and unmanned systems, and are actively developing innovative solutions applicable to multiple platforms across our end markets. Select BTIs that we expect to generate meaningful revenue over the next three years include directed energy, 360 display, quantum communications, and navigation and sensors, which include LiDAR HALAS, atmospheric sensing, precision timing, and micro-electromechanical systems ("MEMS") cryptography.

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***Disciplined acquisition strategy to support growth goals***

Disciplined acquisitions and strategic partnerships are a key part of our business model and growth strategy. We regularly identify and evaluate a robust pipeline of acquisition targets across our segments as we seek to enhance our organic growth, add new systems and technologies, increase content on new platforms, enhance our ability to source critical parts, and provide access to new geographies.

We have a successful track record of acquiring businesses including the recent acquisitions of Civitanavi and CAES, which added new systems and technologies to our capabilities in alternative navigation and electronic warfare and enhanced our European defense footprint. We also have demonstrated our ability to successfully integrate new facilities, customers, and programs, as well as realize significant synergies with our existing business.

As a standalone company, we expect our strong well-capitalized balance sheet and independent capital allocation policy will enhance our ability to effectively pursue acquisition opportunities.

**Our Reported Segments**

We operate through three segments, reported as Electronic Solutions, Engines & Power Systems, and Control Systems. Within each of our segments, we manufacture a comprehensive portfolio of differentiated systems and scalable technologies that are highly integrated and mission critical to our customer base of OEMs, defense primes, and aircraft operators:

***Electronic Solutions ("ES") Segment***

Our ES segment, which represented 39% of revenue for the year ended December 31, 2024, is a leading supplier of aerospace electronic systems and technologies. The ES product portfolio is organized into five offerings: Avionics, Navigation and Sensors, Services and Connectivity, Electromagnetic Defensive Solutions (formerly CAES), and Space. Our products include avionics, radars, flight management systems, precision inertial navigation systems, high-performance space components, and solutions that enable complex sensing protection, targeting and communications operations in the electromagnetic spectrum, and electronic warfare solutions, as well as solutions that focus on in-flight connectivity, cockpit safety, defense radiofrequency, and counter unmanned aerial systems.

ES provides the following offerings: Avionics, Navigation and Sensors, Services and Connectivity, Electromagnetic Defensive Solutions, and Space.

*Avionics Offering*

We are a leading provider of integrated cockpit, display systems, flight controls, flight management systems ("FMS"), navigation and voice radios, radar and surveillance systems to aviation platforms across aerospace and defense markets. Defense primes, OEMs and operators choose our Avionics because of the breadth of systems in our portfolio, our connectivity-based software, and the level of integration enabling full flight deck solutions.

*Navigation and Sensors Offering*

We are a leading provider of navigation and sensing systems across aerospace and defense end markets, and include air data modules, inertial measurement and reference units, inertial navigation systems, surface and marine navigators, vision navigators, atmospherics sensors, and precision timing systems. OEMs and operators choose our Navigation and Sensors because they offer integrated products that incorporate advanced software, fuse multiple sensors to provide highly accurate position information, and are certified to the highest design assurance levels in the industry.

*Electromagnetic Defensive Solutions ("EDS") Offering*

We are a leading provider of systems that enable complex sensing, protection, targeting, and communications operations in the electromagnetic spectrum across national security missions, warfighting domains, and Counter-Unmanned-Aircraft-System. In EDS, we employ a vertically integrated model and design-for-manufacturability expertise, securing early-phase content that often evolves into high-margin, IP-rich positions as the design authority.

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Defense customers choose EDS because we deliver agile and scalable solutions across the entire program lifecycle for electromagnetic control solutions. EDS's consistent program execution has driven scope expansion across core franchise programs, including SPY-6, F-35, and AMRAAM, and has been directly cited by customers as a key reason for new and expanded awards. Our deep bench of foundational radio frequency technologies, like power amplification, wideband systems, and size, weight, and power ("SWaP") optimization, enables rapid adaptation, integration and deployment across platforms. Our broad portfolio of electromagnetic capabilities mirrors the needs of defense prime customers and has positions on nearly every U.S. military tactical fighter, rotorcraft, missile system, and many of the top land system platforms.

*Space Offering*

We are a leading provider of radiation-hardened and radiation-tolerant inertial systems, momentum controls, microelectronics and payload solutions to defense and commercial customers. We believe our customers choose our space systems because of their differentiated performance including radiation hardening capabilities, reliability and flight performance, and track record unmatched by our peers. We are also an industry leader in developing space systems and payloads for strategic and restricted markets.

*Services and Connectivity Offering*

We provide a variety of solutions focused on cockpit safety, in-flight connectivity, defense radiofrequency, and navigation and terrain database services.

*Electronic Solutions Customers*

For the year ended December 31, 2024, our top five ES customers accounted for 36% of total segment revenue.

***Engines & Power Systems ("E&PS") Segment***

Our E&PS segment, which represented 31% of revenue for the year ended December 31, 2024, is a leading supplier of propulsion systems, APUs, and electric power solutions. The E&PS product portfolio, which is balanced across two offerings – Engines and Power Systems, includes propulsion engines, small and military APUs, narrowbody and widebody APUs, electric power systems, and fuel cells and adjacencies.

Our E&PS segment is focused on providing class-leading systems in every category that we serve, and we believe our offerings represent leaders in their respective fields. Our HTF7000 and TFE731 engines have leading positions on midsize and super-midsize business jet aircraft. Our large APUs are on all in-production narrowbody platforms and all but one in-production widebody platforms. Our small APUs enjoy similar leadership positions on business aviation and military aircraft platforms. These systems are designed to operate for over 30 years, contributing to a large installed base and attractive tail of aftermarket services opportunity given the highly complex nature of these systems. Production of our engines and APUs is done in a shared facility, allowing for a robust supply chain and streamlined operations due to the commonalities between these two product families.

E&PS provides the following offerings: Engines and Power Systems.

*Engines Offering*

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overhaul facilities. With proper maintenance, our engines are designed to operate for decades, providing us with a long tail of spare parts and aftermarket services revenue.

*Power Systems Offering*

We are a leading provider of efficient and highly reliable APUs and Electrical Power Systems. The APU is an auxiliary power unit responsible for delivering electrical power to aircraft systems before engine start or on an emergency basis. Our APUs provide industry-leading reliability, efficiency, and have an established track record with more than 95,000 deliveries and 36,000 units in-services today. We believe our Power Systems technologies are differentiated from our competitors based on our deep expertise spanning 50 years of power generation development, our track record for reliability and our relentless focus on innovation, which includes extensive strategic partnerships across industries. Our vertically integrated approach ensures stability in our supply chain and access to proprietary intellectual property, enabling us to deliver highly efficient and reliable APUs, advanced high-voltage direct current systems and advanced controls that support growing demand for power on increasingly electrified aircraft platforms.

*Engines & Power Systems Customers*

We serve customers across aerospace end markets, with balanced exposure to Commercial Aviation, Defense and Space, and Business Aviation. Our blue-chip customer base includes major aerospace OEMs, U.S. military branches, and scaled aftermarket service providers. For the year ended December 31, 2024, our top 10 customers accounted for 35% of segment revenue.

***Control Systems ("CS") Segment***

Our CS segment, which represented 30% of revenue for the year ended December 31, 2024, is a leading supplier of mission critical thermal and motion control systems that enable flight, life support, and safety across all forms of aircraft. The CS product portfolio is organized into three offerings: Air and Thermal Control, Motion Control and Honeywell Federal Solutions. Our products include environmental control systems ("ECS"), cabin pressure control systems, thermal management systems, engine start systems, fuel control systems, flight control actuation systems, and wheels and braking systems.

We are a leading control system integrator for the aerospace and defense industry, with proven capability to design complex systems that integrate electronics, software, and mechanical hardware on aircraft, spacecraft, and missiles. Our CS content is on virtually every aircraft – approximately ten million commercial passengers fly daily in aircraft equipped with our air and thermal controls, over 75% of commercial flights begin with our engine start system, and every in-production U.S. fighter aircraft is equipped with a Honeywell Control System. We support our fleet through a full suite of aftermarket and depot services. Additionally, the Honeywell Federal Solutions offering provides high-value site-management services for government-owned and classified facilities.

CS provides the following offerings: Air and Thermal Control, Motion Control and Honeywell Federal Solutions.

*Air & Thermal Control Offering*

We are a leading provider of environmental control, cabin pressure control, thermal management, inerting, and life support systems. We believe defense primes, OEMs and operators select our systems and technologies based on our highly integrated and advanced designs that leverage electrification to manage higher temperatures with lower power demand and reduced complexity. In addition, our systems are designed to incorporate advanced connected capabilities and to be scalable and configured to support mission requirements for a range of platforms across our end markets.

*Motion Control Offering*

We are a leading provider of highly engineered electromechanical products, mechanical engine controls, exterior aircraft lighting, high-temperature coatings, commercial/fighter wheels, and braking systems. We believe OEMs and operators select our systems and technologies based on our ability to deliver reliable, high performance in smaller, light-weight designs that enable improved capacity and range. We engineer our motion control systems to be

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upgradeable and benefit from future advances in core actuation, as well as integrate well with fly-by-wire, hybrid propulsion and other advanced designs.

*Honeywell Federal Solutions*

We are a leading provider of site-management services, operating and managing facilities and employees on behalf of and at the direction of the U.S. federal government using government policies, processes, intellectual property, and approvals to accomplish government-directed missions. Our Federal Solutions offering is differentiated from competitors by our track record, operational excellence, and ability to deliver the needs of our customers in highly regulated environments. We bring a legacy of trust and execution, demonstrated by our role as the only company to manage and operate a U.S. Department of Energy site for over 70 years. Operating under the government-owned, contractor-operated model, and primarily under a performance fee structure, we deliver services with precision and accountability.

Government agencies choose Federal Solutions because we combine deep institutional knowledge with the agility to meet evolving mission needs. Our long-standing relationships with federal agencies like the U.S. Department of Energy demonstrate our ability to deliver consistent value over time. Our expertise in lean practices, complex program execution, and customer support makes us a trusted partner in delivering secure, efficient, and innovative federal solutions.

*Control Systems Customers*

We serve customers across aerospace end markets, with a focus on Commercial Aviation and Defense and Space. For the year ended December 31, 2024, our top five CS customers accounted for approximately 35% of total segment revenue and represent the largest global aerospace and defense customers.

**Summary of Risk Factors**

An investment in Aerospace is subject to a number of risks, including risks related to our business, risks related to the separation and distribution and risks related to our common stock. Set forth below is a high-level summary of some, but not all, of these risks. Please read the information in the section entitled "Risk Factors," beginning on page <u>[32](#iaf36d807e40f46578ba0649b3b7197a7_1382)</u> of this information statement, for a more thorough description of these and other risks.

***Risks Related to Our Business***

• Our business is subject to unique industry and economic conditions that may adversely affect the markets and operating conditions of our customers, which in turn can affect demand for our products and services, our financial condition, and our results of operations;

• Our future growth is largely dependent upon our ability to develop new technologies and introduce new products that achieve market acceptance in increasingly competitive markets with acceptable margins;

• Raw material price fluctuations, inflation, scarcity, tariffs, the ability of key suppliers to meet quality and delivery requirements or catastrophic events can increase the cost of our products and services, impact our ability to meet commitments to customers, and cause us to incur significant liabilities;

• A quality issue affecting our products or third-party products with which our products are integrated could adversely affect our reputation, business, financial condition, results of operations, and cash flows;

• Our business operations, reputation, and financial performance may be adversely impacted by cybersecurity attacks or data privacy or information security breaches, as well as changes in cybersecurity and other applicable regulations;

• Changes in future business, market conditions, or unforeseen events could cause intangible assets to become impaired, which could negatively impact our results of operations and financial condition;

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• A material disruption of our operations, particularly at our manufacturing facilities or within our IT or OT infrastructure, could adversely affect our business, financial condition, results of operations, and cash flows;

• We depend on the recruitment and retention of qualified personnel, and our failure to attract and retain such personnel could adversely affect our business, financial condition, results of operations, and cash flows;

• Changes in levels of U.S. Government spending or priorities could adversely affect our business, financial condition, results of operations, and cash flows;

• As a supplier to the U.S. and international governments, we are subject to unique contracting risks;

• We are subject to government audits and investigations of our business, operations, and performance, and adverse outcomes could adversely affect our business, financial condition, results of operations, and cash flows;

• If our intellectual property were compromised or copied or if our competitors were to develop similar or superior intellectual property or technology, our business, financial condition, results of operations, and cash flows could be negatively affected;

• We must comply with various global trades laws and regulations and may not be successful in obtaining the necessary export licenses, and the U.S. Government may prevent proposed sales to certain international governments and customers;

• Our operations and the prior operations of predecessor companies, including certain operations that were previously operated by Honeywell and/or its subsidiaries, expose us to the risk of material environmental liabilities;

• We cannot predict with certainty the outcome of litigation matters, government proceedings and other contingencies and uncertainties; and

• A significant percentage of our sales and operations is in non-U.S. jurisdictions and is subject to the economic, political, regulatory, foreign exchange, and other risks of international operations.

***Risks Related to the Separation and Distribution***

• We have no history of operating as an independent company, and our historical and pro forma financial information is not necessarily representative of the results that we would have achieved as a separate, publicly traded company and may not be a reliable indicator of our future results;

• Following the separation, our financial profile will change, and we will be a smaller, less diversified company than Honeywell prior to the separation;

• We may not achieve some or all of the expected benefits of the separation, and the separation may materially adversely affect our business;

• Honeywell's plan to separate the Aerospace Business into an independent, publicly traded company is subject to various risks and uncertainties and may not be completed in accordance with the expected plans or anticipated timeline, or at all, and will involve significant time and expense, which could disrupt or adversely affect our business;

• In connection with the distribution, we will incur significant debt obligations, and we may incur additional debt obligations in the future, which could adversely affect our business and profitability and our ability to meet other obligations;

• We may not be able to engage in desirable capital-raising or strategic transactions following the separation due to certain provisions of our tax matters agreement with Honeywell and related tax considerations;

• If the distribution, together with certain related transactions, were to fail to qualify as a transaction that is generally tax-free for U.S. federal income tax purposes (including as a result of subsequent acquisitions of our

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stock or the stock of Honeywell), we, as well as Honeywell and Honeywell's shareowners, could be subject to significant tax liabilities. In addition, if certain internal restructuring transactions were to fail to qualify as transactions that are generally tax-free for U.S. federal or non-U.S. income tax purposes, we and Honeywell could be subject to significant tax liabilities;

• The transfer to us by Honeywell of certain contracts, permits, and other assets and rights may require the consents or approvals of, or provide other rights to, third parties and governmental authorities. If such consents or approvals are not obtained, we may not be entitled to the benefit of such contracts, permits and other assets and rights, which could increase our expenses or otherwise harm our business and financial performance; and

• Restrictions under our intellectual property license and trademark license agreements with Honeywell will limit our ability to develop and commercialize certain products and services and/or prosecute, maintain, and enforce certain intellectual property.

***Risks Related to Our Common Stock***

• We cannot be certain that an active trading market for our common stock will develop or be sustained after the distribution and, following the distribution, our stock price may fluctuate significantly; and

• Your percentage of ownership in Aerospace may be diluted in the future.

**The Separation and Distribution**

On February 6, 2025, Honeywell announced its intention to separate its Aerospace Business from its Automation Business. The separation will occur through a pro rata distribution to the Honeywell shareowners of 100% of the shares of common stock of Aerospace, which was formed to hold Honeywell's Aerospace Business.

On &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, the Honeywell Board of Directors approved the distribution of all of Aerospace's issued and outstanding shares of common stock on the basis of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of Aerospace common stock for every share of Honeywell common stock held as of the close of business on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, the record date for the distribution.

***Aerospace's Post-Separation Relationship with Honeywell***

After the distribution, Honeywell and Aerospace will each be separate companies with separate management teams and separate boards of directors. Prior to the distribution, Honeywell and Aerospace will enter into the separation agreement. In connection with the separation, Aerospace will also enter into various other agreements to effect the separation and to provide a framework for our relationship with Honeywell after the separation, including a transition services agreement, a tax matters agreement, an employee matters agreement, an intellectual property license agreement, and a trademark license agreement. These agreements will provide for the allocation between Aerospace and Honeywell of the assets, employees, liabilities, and obligations (including, among others, investments, property, and employee benefits and tax-related assets and liabilities) of Honeywell and its subsidiaries attributable to periods prior to, at and after the separation and will govern the relationship between Aerospace and Honeywell subsequent to the completion of the separation. For additional information regarding the separation agreement and other transaction agreements, see the sections entitled "Risk Factors—Risks Related to the Separation and Distribution" and "Certain Relationships and Related Party Transactions."

***Reasons for the Separation***

The Honeywell Board of Directors believes that the separation of the Aerospace Business into an independent, publicly traded company is in the best interests of Honeywell and its shareowners for a number of reasons, including:

• ***Simplified Strategic Focus and Purpose.*** Following the separation, each of Honeywell and Aerospace will be a more focused business better able to dedicate financial, management and other resources to leverage its respective strategic objectives. We believe simplification will lead to greater end market and customer intimacy. Each company will pursue appropriate growth opportunities and execute strategic plans best suited to address its distinct market trends and opportunities.

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• ***Enhanced Organizational Agility and Accountability.*** The separation will allow the management teams and dedicated boards of directors with relevant domain expertise of each of Honeywell and Aerospace to devote their time and attention to the development and implementation of corporate strategies and policies that are based primarily on the specific business characteristics of their respective companies. Each company will be able to adapt faster to customers' changing needs, address specific market dynamics, target innovation and investments in select growth areas and accelerate decision-making processes.

• ***Distinct and Compelling Investment Profiles.*** Investment in one company or the other may appeal to investors with different goals, interests and concerns. The separation will allow investors to make independent investment decisions with respect to Honeywell and Aerospace and may result in greater alignment between the interests of Aerospace's shareowner base and the characteristics of Aerospace's business, capital structure and financial results.

• ***Customized Capital Structure and Capital Allocation Priorities.*** The separation will enable Honeywell and Aerospace to leverage its distinct strategic focus, growth profile and cash flow characteristics to optimize its capital structure and capital allocation strategy. This financial flexibility allows each to better pursue future strategic growth opportunities and drive innovation through investment cycles. In addition, after the separation, the respective businesses within each company will no longer need to compete internally for capital and other corporate resources with businesses allocated to another company.

• ***Alignment of Management Incentives with Performance.*** The separation will enable Aerospace to create incentives for its management and employees more closely aligned with its own business performance. Aerospace's equity-based compensation arrangements will more closely align the interests of Aerospace's management and employees with the interests of its shareowners and should increase Aerospace's ability to attract and retain personnel.

The Honeywell Board of Directors also considered a number of potentially negative factors in evaluating the separation, including the risk that the separation is abandoned and not completed, the risk of volatility in our stock price immediately following the separation due to sales by Honeywell shareowners whose investment objectives may not be met, the time it may take for us to attract our optimal shareowner base, the possibility of disruptions in our business as a result of the separation, the risk that the combined trading prices of Aerospace common stock and Honeywell common stock after the separation may drop below the trading price of Honeywell common stock before the separation, the loss of synergies and scale from operating as one company, and the potential inability to realize the anticipated benefits of the separation.

The Honeywell Board of Directors determined that the potential benefits of the separation outweighed the potential negative factors and provided the best opportunity to achieve enhance shareowner value.

Honeywell will pay substantially all of the third-party fees, costs, and expenses associated with the separation incurred before and in connection with the consummation of the separation except for tax obligations, which will be addressed by the Tax Matters Agreement. Each of Honeywell and Aerospace will bear its own third-party fees, costs and expenses associated with the separation incurred after the separation and distribution.

In determining to pursue the separation, the Honeywell Board of Directors concluded the potential benefits of the separation outweighed the foregoing factors. See the sections entitled "The Separation and Distribution—Reasons for the Separation" and "Risk Factors" included elsewhere in this information statement.

**Corporate Information**

Aerospace was formed in Delaware for the purpose of holding Honeywell's Aerospace Business in connection with the separation and distribution described herein. Prior to the transfer of the Aerospace Business to us by Honeywell, which will occur prior to the distribution, Aerospace will have no operations other than those incidental to the separation. Prior to the distribution, Honeywell Aerospace LLC will convert into a Delaware corporation and will be renamed "Honeywell Aerospace Inc."

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

The address of our principal executive offices will be 1944 E Sky Harbor Cir N, Phoenix, AZ 85034. Our telephone number after the distribution will be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

We intend to have an investor website at or prior to the distribution at *www.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .com*. **Our website and the information contained therein or connected thereto are not incorporated into this information statement or the registration statement of which this information statement forms a part, or in any other filings with, or any information furnished or submitted to, the SEC.**

**Reason for Furnishing this Information Statement**

This information statement is being furnished solely to provide information to Honeywell shareowners who will receive shares of Aerospace common stock in the distribution. It is not and is not to be construed as an inducement or encouragement to buy or sell any of Aerospace's securities. The information contained in this information statement is believed by Aerospace to be accurate as of the date set forth on its cover. Changes may occur after that date, and neither Honeywell nor Aerospace will update the information except as may be required in the normal course of their respective disclosure obligations and practices.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**SUMMARY OF HISTORICAL AND UNAUDITED PRO FORMA COMBINED FINANCIAL DATA**

The following summary financial data reflects the combined operations of Aerospace. We derived the summary combined statement of operations data for the years ended December 31, 2024 and 2023, and summary combined balance sheet data as of December 31, 2024, as set forth below, from our audited Combined Financial Statements, which are included in the "Index to Combined Financial Statements" section of this information statement. To ensure a full understanding of this summary financial data, you should read the summary combined financial data presented below in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Combined Financial Statements and accompanying notes included elsewhere in this information statement. The historical results do not necessarily indicate the results expected for any future period. For factors that could cause actual results to differ materially from those presented in the summary historical and pro forma condensed combined financial data, see "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" included elsewhere in this information statement.

The summary unaudited pro forma combined financial data for the year ended December 31, 2024 has been prepared to reflect the separation, including the incurrence of indebtedness of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion and the distribution of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion of cash to Honeywell. The outstanding indebtedness is expected to consist of senior unsecured notes. Aerospace also intends to enter into (i) a senior unsecured revolving credit facility to be available for general corporate purposes in an aggregate committed amount as of the date of the distribution of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion and (ii) a senior unsecured commercial paper program to be available for general corporate purposes up to an aggregate amount at any time outstanding of $ billion. The terms of such indebtedness are subject to change and are expected to be finalized prior to the closing of the distribution. Aerospace expects to use proceeds from the revolving credit facility and commercial paper program for general corporate purposes. Aerospace expects to use the net proceeds from the senior unsecured notes (i) to make a cash distribution to Honeywell, (ii) to pay fees and expenses related to the separation, the distribution, and/or the debt transactions, and/or (iii) for general corporate purposes. The Unaudited Pro Forma Combined Statement of Operations presented for the year ended December 31, 2024 assumes the separation occurred on January 1, 2024, the first day of fiscal 2024. The Unaudited Pro Forma Combined Balance Sheet assumes the separation occurred on December 31, 2024. The assumptions used and pro forma adjustments derived from such assumptions are based on currently available information and we believe such assumptions are reasonable under the circumstances.

The Unaudited Pro Forma Combined Financial Information is derived from our historical audited Combined Financial Statements included elsewhere in this information statement. The Unaudited Pro Forma Combined Financial Information is not necessarily indicative of our results of operations or financial condition had the distribution and our anticipated post-separation capital structure been completed on the dates assumed. It may not reflect the results of operations or financial condition that would have resulted had we been operating as an independent, publicly traded company during such periods. In addition, it is not necessarily indicative of our future results of operations or financial condition.

You should read this summary financial data together with "Unaudited Pro Forma Combined Financial Information," "Capitalization," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Combined Financial Statements and accompanying notes included elsewhere in this information statement.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Summary of Historical and Unaudited Pro Forma Combined Financial Data**

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| | | | |
|:---|:---|:---|:---|
| | **Pro Forma** | **Historical** | **Historical** |
| | **Year ended December 31,** | **Years ended December 31,** | **Years ended December 31,** |
| **(dollars in millions)** | **2024** | **2024** | **2023** |
| &nbsp;&nbsp;&nbsp;&nbsp;Product sales |  | $8135 | $7098 |
| &nbsp;&nbsp;&nbsp;&nbsp;Service sales |  | 7310 | 6692 |
| **Net sales**  |  | **15445** | **13790** |
| Costs, expenses and other |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold |  | 6441 | 5361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of services sold |  | 3502 | 3146 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total cost of products and services sold**  |  | **9943** | **8507** |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses |  | 567 | 506 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses |  | 1426 | 1213 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net |  | 141 | 93 |
| **Total costs, expenses and other**  |  | **12077** | **10319** |
| **Income before taxes**  |  | **3368** | **3471** |
| Income tax expense |  | 519 | 557 |
| **Net income**  |  | **2849** | **2914** |
| Less: Net income attributable to noncontrolling interest |  | 32 | 28 |
| **Net income attributable to Aerospace**  |  | $**2817** | $**2886** |

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| | | |
|:---|:---|:---|
| | **Pro Forma** | **Historical** |
| | **Year ended December 31,** | **Year ended December 31,** |
| **(dollars in millions)** | **2024** | **2024** |
| Cash and cash equivalents |  | $244 |
| Total assets |  | 16845 |
| Total liabilities |  | 8017 |
| Noncontrolling interest |  | 92 |
| Total equity |  | 8828 |
| Total liabilities and equity |  | 16845 |

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| | | |
|:---|:---|:---|
| | **Historical** | **Historical** |
| | **Years ended December 31,** | **Years ended December 31,** |
| **(dollars in millions)** | **2024** | **2023** |
| **Net income**  | $**2849** | $**2914** |
| Income tax expense | (519) | (557) |
| Amortization of acquisition-related intangibles<sup>(1)</sup> | (34) | (17) |
| Stock compensation expense<sup>(2)</sup> | (74) | (73) |
| Environmental remediation expense<sup>(3)</sup> | (235) | (204) |
| Other, net<sup>(4)</sup> | 3 | (10) |
| **Adjusted EBIT (non-GAAP)**  | $**3708** | $**3775** |

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__________________

(1)Amounts included in Cost of products and services sold and Selling, general and administrative.

(2)Amounts included in Selling, general and administrative expenses.

(3)Amounts included in Cost of products and services sold and Other expense, net.

(4)Amounts include interest and other financial charges, pension income (expense), repositioning charges, and other expenses.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**RISK FACTORS**

You should carefully consider the following risks and all of the other information in this information statement in evaluating Aerospace and Aerospace common stock. Any of the following risks, as well as other risks not currently known to us or that we currently consider immaterial, could materially and adversely affect our business, financial condition, results of operations and cash flows and the actual outcome of matters as to which forward-looking statements are made in this information statement. The following risk factors should not be considered to represent a complete set of all potential risks that could affect us.

**Risks Related to Our Business**

***Our business is subject to unique industry and economic conditions that may adversely affect the markets and operating conditions of our customers, which in turn can affect demand for our products and services, our financial condition and our results of operations.***

Our business is impacted by customer buying patterns of aftermarket parts, supplier stability, factory transitions, and global supply chain capacity constraints that may lead to shortages of crucial components. Our operating results and financial condition may be adversely affected by downturns in the global demand for air travel, which may impact new aircraft production or result in the delay or cancellation of new aircraft orders, delays in launch schedules for new aircrafts, the retirement of aircrafts, and reductions in global flying hours, which impact air transport and regional, business, and general aviation aircraft utilization rates. Our operating results and financial condition may also be adversely affected by any decrease in air travel demand due to regional restrictions or suspension of service for events related to public health, safety, the environment, or regional conflicts. In addition, our operating results and financial condition could be impacted by changes in overall trends related to end market demand for the product portfolio, as well as new entrants and non-traditional players entering the market. Results may also be impacted by the potential introduction of counterfeit parts into our global supply chain.

Operating results in our defense and space end market may be affected by the mix of U.S. and foreign government appropriations for defense and space programs and by compliance risks. For example, the operating results of Commercial Aviation Original Equipment and Commercial Aviation Aftermarket may be impacted by, among other things, mandates of the Federal Aviation Administration (the "FAA") and other similar international regulatory bodies regulating the installation of equipment on aircraft. Many of the products that we manufacture and sell must be certified by the FAA and/or other U.S. or international regulatory bodies. If material certifications or authorizations were revoked or suspended, our operating results and financial condition would be adversely affected.

Our financial results and liquidity may also be influenced by customer and supplier actions to manage their working capital and react to investment cycles in response to these risks. This cyclicality across our businesses impacts the comparison of our financial condition and results of operations and cash flows on a quarter-by-quarter basis.

***Our future growth is largely dependent upon our ability to develop new technologies and introduce new products that achieve market acceptance in increasingly competitive markets with acceptable margins.***

Our future growth rate depends upon a number of factors, including our ability to (i) identify and evolve with emerging technological and broader industry trends, including technologies such as artificial intelligence and machine learning in our target end markets; (ii) develop and maintain competitive products; (iii) defend our market share against an ever-expanding number of competitors, including many new and non-traditional competitors; (iv) enhance our products by adding innovative features that differentiate our products from those of our competitors and prevent commoditization of our products; (v) develop, manufacture, and bring to market compelling new products quickly and cost-effectively; (vi) monitor disruptive technologies and business models; (vii) achieve sufficient return on investment for new products introduced based on capital expenditures and research and development spending; (viii) respond to changes in overall trends related to end market demand; (ix) have our products included, and increase the number and value of our products, on new platforms; and (x) attract, develop, and retain individuals with the requisite technical expertise and understanding of customers' needs to develop new technologies and introduce new products. Competitors may also develop after-market services and parts for our products (including at lower costs), which may attract customers and adversely affect our return on investment for new products. The failure of our technologies or products to gain market acceptance due to more attractive offerings by our competitors

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

or the failure to address any of the above factors could significantly reduce our revenues and adversely affect our competitive standing and prospects. Development of new products typically entails lengthy research and development cycles and often requires significant capital expenditures and research and development spending. These investments in new products impact the comparison of our financial condition and results of operations and cash flows between periods and may generate weaker returns than initially anticipated.

Our business is dependent on maintaining and expanding long-term customer relationships. Due to the long product development cycle and product life of aerospace and defense platforms, a reduction in the use of our products on new platforms or a failure to increase the number and value of our products on new platforms could have an adverse impact on sales of such products as well as our sales of aftermarket products and services and, as a result, on our long-term growth, financial condition, results of operations, and cash flow. Our ability to mitigate these effects may be limited until such time as new platforms are developed.

***Raw material price fluctuations, inflation, scarcity, tariffs, the ability of key suppliers to meet quality and delivery requirements or catastrophic events can increase the cost of our products and services, impact our ability to meet commitments to customers, and cause us to incur significant liabilities.***

The cost of raw materials is a key element in the cost of our products, including nickel, steel, titanium, and other materials. While we have implemented mitigation strategies to reduce the impact of supply chain disruptions, any inability to source necessary materials when and as needed, or offset material price or labor inflation through increased prices to customers, market-based or long-term fixed-price contracts with suppliers, productivity actions or commodity hedges could adversely affect our results of operations. Due to the nature of our customer and supplier contracts, in particular fixed-price customer contracts and those with the U.S. and other governments, we may be unable to increase our prices or contract value to partially or fully offset cost increases. The aerospace industry's rigorous certification requirements can limit the speed and efficiency of supplier substitution.

Many major components, product equipment items, and raw materials, are procured or subcontracted on a single or sole-source basis. Although our global sourcing teams collaborate closely with supply chain and production leadership to develop strategies that secure adequate raw material supplies, it is difficult to predict what effects shortages or price increases (including the impact of tariffs, embargos or other trade actions), in addition to other supply chain disruptions, may have in the future. Our ability to manage inventory and meet delivery requirements may be constrained by our suppliers' inability to scale production and adjust delivery of long-lead time products during times of volatile demand. Current or future global economic uncertainty, including inflation and high interest rates, the impact of trade actions (including the imposition of tariffs or other trade actions impacting raw materials we source from global trade counterparties), supply chain and labor disruptions, unemployment rates, banking instability, any U.S. Government shutdown, any downgrades in the U.S. Government's sovereign credit rating, public health crises, volatile financial markets, geopolitical instability and regional conflicts, and potential recession may affect the financial stability of our key suppliers or their access to financing, which may in turn affect their ability to perform their obligations to us. If one or more of our suppliers experiences financial difficulties, delivery delays or other performance problems, our resulting inability to fill our supply needs may jeopardize our ability to fulfill obligations under commercial and government contracts, which could, in turn, result in reduced sales and profits, contract penalties or terminations, and damage to customer relationships.

In an effort to reduce the impact of current and future supply chain disruptions, we have implemented short-term and long-term strategies to reduce the impact of such disruptions, including supply chain simplification, continued alignment to local supply sources, strategic insourcing, pricing actions, dual source strategies, longer-term strategies for constrained materials, material supply tracking tools, digital planning tools, safety stock, qualification of alternative vendors, direct engagement with key suppliers and development of new or redesigned products that satisfy our product quality controls and engineering qualifications and/or any applicable regulatory requirements. However, we cannot provide any assurance that our mitigation strategies will be successful, or that we will be able to alter our strategies or develop new strategies if and as needed.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***A quality issue affecting our products or third-party products with which our products are integrated could adversely affect our reputation, business, financial condition, results of operations and cash flows.***

We produce mission critical systems and technologies, including integrated commercial and defense aircraft engines, power generation and distribution products and avionics, and flight management, navigation, communications and other control systems solutions, and we provide specialized services for products that incorporate or use complex technology. Accordingly, the adverse impact of product quality or service issues can be significant. Actual or perceived design, production, performance, durability or other quality issues related to our products or services, including those that result in injuries or death, could adversely affect our reputation, business, financial condition, results of operations and cash flows. Many of our products and services must function under challenging operating conditions and meet demanding certification, performance, reliability, and durability standards that we, our customers and/or our regulators adopt. Developing and maintaining products that meet or exceed these standards can be costly and technologically challenging, and a failure to deliver products and services that meet these standards could adversely affect our business, financial condition, results of operations and cash flows.

***Our business operations, reputation, and financial performance may be adversely impacted by cybersecurity attacks or data privacy or information security breaches, as well as changes in cybersecurity and other applicable regulations.***

Our business operations, reputation, and financial performance are highly dependent on the integrity and security of our own and third-party information technology ("IT") infrastructure. We also collect, store, and process confidential or sensitive data, including classified information, proprietary business information, and personal data, which is subject to data privacy and security laws, regulations and contractual obligations. Cybersecurity is and will continue to be a critical component of our enterprise risk management program.

We face a wide range of global cybersecurity threats and incidents, such as attempts to gain unauthorized access to sensitive information or compromise the integrity, confidentiality, and/or availability of our IT systems; insider threats; ransomware, denial-of-service, and phishing attacks; and cybersecurity failures resulting from human or technological errors. These threats and attacks could be directed at the Company, our products, our customers, and our third-party software and service providers, including attacks on commercial or other aircraft, which could adversely affect our operations, reputation, and financial performance even if such an attack is not targeted at our products, services, or systems. These threats come from a variety of sources, some of which are highly organized and sophisticated nation states and cyber criminals. As a defense contractor and participant in the defense industry, we face increased risk from state-affiliated actors whose interests are adverse to the U.S. and other countries whose defense platforms utilize our products, and this risk grows during times of increased geopolitical conflicts.

We have deployed measures to deter, prevent, detect, respond to, and mitigate these risks (including identity and access controls, data protection, vulnerability assessments, monitoring of our IT networks and systems, and maintenance of backup and protective systems). However, cybersecurity incidents could still occur, and there is no guarantee that our tools and controls will be sufficient to detect, prevent, or mitigate the risk of a cyber-related attack or incident. We face an increased level of risk during significant IT infrastructure transitions, such as those we are undertaking in connection with the separation. These incidents could result in the misappropriation, destruction, corruption, or unavailability of critical data and confidential or proprietary information, theft of funds and disruption of business operations. The evolving nature of cyber threats, including the use of artificial intelligence to craft sophisticated attacks, poses additional challenges in anticipating and preventing such incidents. If we fail to deter, detect or report cybersecurity incidents in a timely manner, we may suffer from financial and other harm, including to our information, operations, performance, employees, and reputation. We cannot be certain that our cybersecurity insurance coverage will be adequate for liabilities actually incurred, that insurance will continue to be available to us on economically reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim.

Our customers, including the U.S. Government, increasingly require robust cybersecurity protections and standards in our products and services, which may result in additional costs to comply with such demands. In addition, cybersecurity and other relevant laws and regulations continue to evolve, including in relation to our processing of personal data or adoption of emerging technologies such as artificial intelligence and machine learning, and the requirements and enforcement of such laws and regulations have also increased, both in the U.S. and globally.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

Changes in these laws add compliance complexity, may increase our and our suppliers' operational and compliance cost and may expose us to reputational damage, litigation, regulatory actions, or fines. Noncompliance with applicable industry standards or legal obligations regarding emerging technologies and data privacy and security could result in costs, fines, litigation, or regulatory actions, and could lead customers to select competitors' products and services, rather than our products and services.

***Changes in future business, market conditions, or unforeseen events could cause intangible assets to become impaired, which could negatively impact our results of operations and financial condition.***

A significant portion of our assets consists of contract-related assets, goodwill and other intangible assets, including customer relationships and capitalized software. Changes in future business, market conditions, or unforeseen events could impair the value of these assets, which could negatively impact our results of operations. These assets are subject to impairment tests which involve the use of accounting estimates and assumptions, and changes to those assumptions as a result of differences in actual results or otherwise could materially impact our results of operations and financial condition. We may never realize the full value of these assets, and if we determine that they are impaired, we will be required to write off the amount of any impairment, which could negatively impact our results of operations and financial condition.

Our business combinations typically result in the recognition of customer relationships, patents, and trademarks, in addition to other definite-lived intangible assets. The determination of fair value for definite-lived intangible assets, useful lives for amortization purposes and whether or not intangible assets are impaired involves the use of accounting estimates and assumptions. The assumptions used in developing the accounting estimates may include business growth rates, sales volume, selling prices and costs, cash flows, and the discount rate selected. Changes to those assumptions could materially impact our financial condition or operating performance if actual results differ from such estimates and assumptions.

***A material disruption of our operations, particularly at our manufacturing facilities or within our IT or OT infrastructure, could adversely affect our business, financial condition, results of operations, and cash flows.***

Our facilities, supply chains, distribution systems, and IT and operational technology ("OT") systems are subject to disruption and catastrophic loss due to natural disasters or other weather-related disruptions, including hurricanes and floods, power outages, fires, explosions, terrorism, equipment failures, sabotage, cyber incidents, any potential effects of climate change and adverse weather conditions, including water scarcity and rising sea levels, labor disputes, critical supply failure, inaccurate downtime forecast, political disruption and regional conflicts, public health crises, like a regional or global pandemic, and other reasons, which can result in undesirable consequences, including financial losses and damaged relationships with customers. We employ IT and OT systems and networks to support the business and rely on them to process, transmit and store electronic information, and to manage or support a variety of business processes and activities. Although preventative measures may help to mitigate damage, such measures could be costly, and disruptions to our manufacturing facilities or IT or OT infrastructure from system failures, shutdowns, power outages and energy shortages, telecommunication or utility failures, cybersecurity incidents, and other events, including disruptions at our cloud computing, server, systems and other third party IT or OT service providers, could interfere with our operations, interrupt production and shipments, damage customer and business partner relationships, and negatively impact our reputation. In addition, the insurance we maintain may not be adequate to cover our losses resulting from any business interruption, including those resulting from a natural disaster or other severe weather event, and recurring extreme weather events or other adverse events could reduce the availability or increase the cost of insurance.

***We depend on the recruitment and retention of qualified personnel, and our failure to attract and retain such personnel could adversely affect our business, financial condition, results of operations and cash flows.***

Due to the complex nature of our business, our future performance and ability to deliver mission-critical systems and technologies is highly dependent upon the continued services of our employees and management who have significant industry and/or technical expertise. Our performance is also dependent on the development of additional personnel and the hiring of new qualified engineering, design, manufacturing, marketing, sales and management, and other personnel for our operations. Competition for qualified personnel in the aerospace market is intense, and

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

we may not be successful in attracting or retaining qualified personnel, particularly as a standalone company. Moreover, we are dependent on the institutional knowledge of our longer-term employees and management with respect to our industries and manufacturing processes, and the transfer of that knowledge to subsequent generations of employees to maintain operational continuity. The loss of key employees, our inability to attract new qualified employees, or adequately train and transfer knowledge to employees, or the delay in hiring key personnel could negatively affect our business, financial condition, results of operations, and cash flows.

***Changes in levels of U.S. and other government spending or priorities could adversely affect our business, financial condition, results of operations, and cash flows.***

We derive a significant portion of our revenue from contracts awarded by the U.S. and other governments, primarily from defense related programs with the U.S. Department of Defense and other government departments and agencies which are subject to government fiscal policies, budget decisions and priorities, and appropriation processes. U.S. and international defense spending levels are difficult to predict and may be impacted by numerous factors such as the evolving nature of the national security threat environment, national security strategy, foreign policy, the domestic political environment, macroeconomic conditions and the ability of the applicable government to enact relevant legislation such as authorization and appropriations bills. A reduction in overall U.S. or international defense spending, due to changes in priorities, the potential for government shutdowns, and the use of continuing resolutions, could affect our industry and funding for our programs. Changes in funding priorities may also reduce opportunities in existing programs and in future programs or initiatives where we intend to compete and where we have made investments. As a result, significant changes in levels of U.S. or other government spending or priorities could negatively affect our business, financial condition, results of operations, and cash flows.

***As a supplier to the U.S. and international governments, we are subject to unique contracting risks.***

Contracts with the U.S. Government (and with governments in other countries), are subject to termination at its convenience or for our failure to perform consistent with the terms of the applicable contract, either of which could adversely affect our business and financial performance. If a contract is terminated at the U.S. Government's convenience, we generally are entitled to reimbursement for work completed and allowable termination or cancellation costs. If a contract is terminated for default, we generally are entitled to reimbursement for work that has been accepted, but may be subject to U.S. Government claims for the net cost to re-procure the contract items and other damages, which could expose us to liability and adversely affect our ability to compete for future contracts. Failure to comply with provisions of our government contracts or other applicable laws and regulations relating to government contracting could lead to civil or criminal enforcement under the U.S. False Claims Act or other statutes and regulations, including potentially significant financial penalties, suspension or debarment from government contracts, which could adversely affect our business, results of operations, financial position, and cash flows. In addition, the U.S. Government could terminate a prime contract under which we are a subcontractor, notwithstanding the fact that our performance and the quality of the products or services we delivered were consistent with our contractual obligations. Delays in performance, failure of products, shortages, cost overruns or other failures related to performance of our contracts with the U.S. Government could also impact our reputation, ability to compete, and financial results.

From time to time, we may begin performance of a U.S. Government contract under an undefinitized contract action with a not-to-exceed price, which is when we begin performing our obligations before the terms, specifications or price are finally agreed to between the parties. The U.S. Government has the ability to unilaterally definitize contracts in the event mutual agreement regarding terms, specifications, or price cannot be reached. If a contract is unilaterally imposed upon us, it may negatively affect our expected profit and cash flows on a program or impose burdensome terms.

U.S Government procurement laws allow legal challenges, also known as bid protests, to the terms of a contract solicitation or the award of a contract. Unsuccessful bidders to programs awarded to us may try to use bid protests to overturn the award to us or seek the award of a subcontract for a portion of the work (in return for withdrawing the bid protest). Bid protests can result in significant expenses, modification of contracts, or even loss of the award, and delay performance of the awarded contract (and associated revenue), which could adversely affect our operating

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

results. We may also protest or challenge bids for contracts that were not awarded to us, and our efforts to do so may be unsuccessful.

Our U.S. Government contracts are subject to the Federal Acquisition Regulation, as well as department-specific implementing regulations such as the U.S. Department of Defense's Defense Federal Acquisition Regulation Supplement and other applicable laws and regulations, which set forth policies, procedures, and requirements for the acquisition of goods and services by the U.S. Government. These regulations impose a broad range of requirements, many of which are unique to government contracting, including various procurement, import and export, security, contract pricing and cost, audit, product integrity, and government accounting requirements. Failure to comply with these requirements can result in contract withholds, cost or price reductions, civil and criminal penalties, contract modifications or terminations, loss of eligibility to perform government contracts, restrictions on our ability to pay dividends or conduct share repurchases, and other restrictions, obligations or penalties. Additionally, new procurement regulations or changes to existing procurement regulations could increase our compliance costs. Current and future U.S. Government initiatives and other changes to the U.S. Government's procurement practices may impact the manner in which the U.S. Government contracts and, therefore, impact the opportunities we choose to pursue (and how we choose to pursue them).

With respect to international governments, we engage in both direct commercial sales ("DCS"), which generally require U.S. Government licenses and approvals, as well as foreign military sales ("FMS"), which are government-to-government transactions initiated by, and carried out at the direction of, the U.S. Government. DCS transactions are subject to, and require compliance with, U.S. and foreign laws and regulations, including product testing, import-export control, technology transfer restrictions, investments, taxation, repatriation of earnings, exchange controls, the Foreign Corrupt Practices Act and other anti-corruption laws and regulations, and the anti-boycott provisions of the U.S. Export Control Reform Act of 2018. Failure by us, our employees or others working on our behalf to comply with these laws and regulations could result in administrative, civil, or criminal liabilities, including suspension or debarment from government contracts or suspension of export/import privilege, and could negatively affect our reputation, business, results of operations, financial position, and cash flows. In contrast, because the U.S. Government functions as an intermediary in FMS sales, we are reliant on, and could be adversely impacted by, the capacity and speed of the Department of Defense's administration of requests from non-U.S. countries to convert requests to sales.

Sales to international governments are subject to political and economic factors, foreign national priorities and budgets, legal requirements, cross-cultural considerations, and other risks associated with doing business globally, which may differ in some respects from those associated with our U.S. business. Our international sales and operations may also be impacted by changes in U.S. or foreign government laws, regulations, and policies, including those related to tariffs, sanctions, embargoes, export and import controls, other trade restrictions, and trade agreements. Additionally, some international government customers require contractors to adhere to industrial cooperation regulations, often referred to as offset agreements, which obligate the contractor to perform certain commitments such as in-country purchases, provide local manufacturing support, and demonstrate preference for local suppliers or subcontractors. At times, even without an offset agreement, foreign government buyers may an express a preference for a domestic product as opposed to a product from a U.S.-based entity or multi-national company.

***We are subject to government audits and investigations of our business, operations and performance, and adverse outcomes could adversely affect our business, financial condition, results of operations and cash flows.***

We operate in a highly regulated industry that is routinely audited and subject to investigations and inquiries by the executive and legislative branches of the U.S. Government and its agencies, such as the Defense Contract Audit Agency, Defense Contract Management Agency, and the Department of Defense Inspector General. From time to time, these groups review and investigate certain aspects of our business operations, including our compliance with applicable laws, regulations, and contract terms, regarding, among other things, our internal control systems and policies for accounting, purchasing, government property, estimating, earned value management, and material management accounting systems, as well as other matters of national interest that apply to us uniquely or across multiple industry participants. U.S. Government audits and investigations often take years to complete and, if an audit or investigation uncovers improper or illegal activities, it could result in administrative, civil, or criminal

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

liabilities, including repayments, fines, treble and other damages, forfeitures, restitution, or penalties, or could lead to suspension or debarment of U.S. Government contracting or of export privileges. In addition, we risk serious reputational harm in situations involving allegations of impropriety made against us. Similar government oversight and risks to our business and reputation exist in most other countries where we conduct business.

Additionally, our U.S. Government contracts are generally subject to oversight audits. Any costs found to be misclassified or inaccurately allocated to a specific contract will be deemed non-reimbursable, and to the extent already reimbursed, must be refunded. Any inadequacies in our systems and policies could result in withholds on billed receivables, penalties, and reduced future business.

Our contracts with the U.S. and international governments are also subject to government audits that may recommend downward price adjustments and other changes. When appropriate and prudent, we may make adjustments and pay voluntary refunds.

***Our U.S. and non-U.S. tax liabilities are dependent, in part, upon the distribution of income among various jurisdictions in which we operate, as well as changes in tax law or regulation.***

Our future results of operations could be adversely affected by changes in the effective tax rate as a result of a change in the mix of earnings in countries with differing statutory tax rates, changes in tax laws, regulations and judicial rulings (or changes in the interpretation thereof), potential taxation of digital services, changes in generally accepted accounting principles, changes in the valuation of deferred tax assets and liabilities, changes in the amount of earnings permanently reinvested offshore, the results of audits and examinations of previously filed tax returns and continuing assessments of our tax exposures, and various other governmental enforcement initiatives. Our tax expense includes estimates of tax reserves and reflects other estimates and assumptions, including assessments of future earnings of Aerospace, which could impact the valuation of our deferred tax assets. In addition, our future effective tax rates could be subject to volatility or adversely affected by changes in tax laws, regulations, accounting principles or interpretations thereof.

***If our intellectual property were compromised or copied or if our competitors were to develop similar or superior intellectual property or technology, our business, financial condition, results of operations and cash flows could be negatively affected.***

Intellectual property rights, including patents, confidential information (including trade secrets and know-how), trademarks and tradenames, are important to our business. We endeavor to protect our intellectual property rights in key jurisdictions in which our products are made, used, sold, or imported. Our success depends to a significant degree upon our ability to obtain and defend or otherwise protect our intellectual property rights. However, in certain jurisdictions, we may be unable to obtain protection for our intellectual property or to successfully defend or enforce our numerous patents and other proprietary rights. Our patents and other intellectual property rights may expire or be challenged, invalidated, designed around or found to be unenforceable, or otherwise compromised. A failure to protect, defend, or enforce our intellectual property could have an adverse effect on our financial condition and results of operations. Similarly, third parties may assert claims against us and our direct and indirect customers, alleging that our products infringe upon third-party intellectual property rights.

We have a variety of unpatented proprietary technologies, including trade secrets and know-how, particularly related to our manufacturing operations, and we believe that such technologies provide us with a competitive advantage. While we have policies, procedures and agreements in place to ensure compliance with these protection measures to protect the applicable technologies, these tools may be insufficient to prevent loss of technology or leakage of applicable confidential information or trade secrets, including because these agreements may not be enforceable or, even if they are legally enforceable, we may not have adequate remedies for breaches of such agreements. We also may not be able to readily detect breaches of such procedures or agreements. The failure to protect our unpatented proprietary technology, including know-how and trade secrets, could result in significantly lower revenues, reduced profit margins or loss of market share.

Additionally, if we must take legal action to protect, defend, or enforce our intellectual property rights, any suits or proceedings could result in significant costs and diversion of resources and management's attention, and we may not

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

prevail in any such suits or proceedings. A failure to protect, defend or enforce our intellectual property rights could have an adverse effect on our business, financial condition, results of operations and cash flows.

***We must comply with various global trades laws and regulations and may not be successful in obtaining the necessary export licenses, and the U.S. Government may prevent proposed sales to certain international governments and customers.***

Our operations are subject to global trade laws and regulations, including the Arms Export Control Act ("AECA"), the International Traffic in Arms Regulations ("ITAR") and the Export Administration Regulations ("EAR"), the Foreign Corrupt Practices Act ("FCPA") and other anti-corruption laws and regulations and the anti-boycott provisions of the U.S. Export Control Reform Act of 2018 and certain sales of our products or technology to international governments and customers require prior authorizations from U.S. Government agencies or may be blocked by Congress. We may not receive necessary licenses or authorizations or Congress may prevent or delay certain sales. Our ability to obtain or renew necessary licenses and authorizations in a timely manner or at all is subject to risks and uncertainties, including changing U.S. Government policies or laws or delays in congressional or agency action due to geopolitical conditions or conflicts. Limitations or prohibitions on our ability to sell products or technologies to international governments, agencies, or ministries of defense may negatively impact our business, financial condition, results of operations, cash flows, and equity.

We must comply with the global trade laws and regulations to which we are subject or we could face administrative, civil, or criminal liabilities, including suspension or debarment from government contracts or suspension of export/import privilege, which could materially adversely affect our business. We have mature compliance controls (including the use of data analytics) in place to detect, monitor, and prevent violations of these global trade laws and regulations, including AECA, ITAR, EAR, FCPA, and the General Data Protection Regulation. However, our compliance controls may not be able to detect or prevent all such violations, and we cannot guarantee in all instances that our employees or others acting on our behalf will comply with such laws and regulations.

***Our operations and the prior operations of predecessor companies, including certain operations that were previously operated by Honeywell or its subsidiaries, expose us to the risk of material environmental liabilities.***

We are subject to potentially material liabilities related to the investigation and cleanup of environmental hazards and to claims of personal injuries or property damages that may arise from hazardous substance releases and exposures. These liabilities arise out of our current and past operations and the operations and properties of Honeywell or Aerospace predecessor companies (including offsite waste disposal). Legacy sites related to Honeywell's or our business are involved in various environmental investigations and remediation obligations due to historic operations. For example, some of our manufacturing facilities have an extended history of manufacturing operations or other industrial activities, and contaminants have been detected at some of our sites and offsite disposal locations. After the separation, we could face environmental investigations as a standalone company since liability under some environmental laws relating to contaminated sites can be joint and several and imposed retroactively, regardless of fault or the legality of the activities that gave rise to the contamination. Pursuant to the separation agreement, Aerospace will assume environmental liabilities associated with all sites that are not or were not primarily related to the Automation Business (including sites that are or were not primarily related to historic operations that were not operations of either the Aerospace Business or the Automation Business).

Ultimate environmental costs and liabilities are difficult to predict and may significantly vary from current estimates. To the extent available, we maintain what we believe to be adequate insurance coverage. However, there can be no assurance that we will not incur losses beyond the limits or outside the terms of such coverage, or that we will be able to maintain adequate insurance at rates we consider reasonable. In addition, the discovery of additional contaminants, the inability or failure of other liable parties to satisfy their obligations, the imposition of additional cleanup obligations, or the commencement of related third-party claims could result in additional material costs and negatively impact our business, financial condition, results of operations and cash flows.

We are also subject to potentially material liabilities related to the compliance of our operations with the requirements of various federal, state, local, and foreign governments that regulate the discharge of materials into the environment and the generation, handling, storage, treatment, and disposal of and exposure to hazardous substances.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

We believe that, as a general matter, our policies, practices and procedures are properly designed to prevent unreasonable risk of environmental damage and personal injury and that our handling, manufacture, use, and disposal of hazardous substances are in accordance with environmental and safety laws and regulations. However, if we are found to be in violation of these laws and regulations, we may be subject to substantial fines, criminal sanctions, trade restrictions, product recalls, and public exposure and be required to install costly equipment or make operational changes to achieve compliance with such laws and regulations.

In addition, changes in laws, regulations or government enforcement of policies concerning the environment, the discovery of previously unknown contamination or new technology or information related to individual contaminated sites, the establishment of stricter state or federal toxicity standards with respect to certain contaminants, or the imposition of new cleanup requirements or remedial techniques, could require us to incur additional currently unanticipated costs in the future that would have a negative effect on our business, financial condition, results of operations, and cash flows.

***Risks related to our defined benefit pension plans may adversely impact our results of operations and cash flows.***

Significant changes in actual investment return on pension assets funding pension liabilities to be allocated to Aerospace and its subsidiaries in connection with the separation, discount rates, and other factors could adversely affect our results of operations and require cash pension contributions or cash payments in future periods. Changes in discount rates and actual asset returns different than our anticipated asset returns could result in significant non-cash actuarial gains or losses. With regard to cash pension contributions, funding requirements for our pension plans are largely dependent upon interest rates, actual investment returns on pension assets, and the impact of legislative or regulatory changes related to pension funding obligations.

***We cannot predict with certainty the outcome of litigation matters, government proceedings and other contingencies and uncertainties.***

In the ordinary course of business, we may make certain commitments, including representations, warranties and indemnities relating to current and past operations, including those related to divested businesses, and issue guarantees of third-party obligations. We are subject to a number of lawsuits, investigations and disputes (some of which involve substantial amounts claimed) arising from the conduct of our business, including matters relating to commercial transactions, intellectual property, and environmental, health, and safety matters. Our potential liabilities are subject to change over time due to new developments, changes in settlement strategy or the impact of evidentiary requirements and we may become subject to or be required to pay damage awards or settlements that could have an adverse effect on our business, financial condition, results of operations, and cash flows. If we were required to make payments, such payments could be significant and could exceed the amounts we have accrued with respect thereto, adversely affecting our business, financial condition, results of operations, and cash flows. While we maintain insurance for certain risks, the amount of our insurance coverage may not be adequate to cover the total amount of all insured claims and liabilities. The incurrence of significant liabilities for which there is no or insufficient insurance coverage could adversely affect our liquidity and financial condition, results of operations and cash flows. For additional information about litigation matters and other contingencies, see Note 18 Commitments and Contingencies of the Notes to Combined Financial Statements for additional information on our commitments and contingencies.

***Global climate change and related regulations and changes in customer demand could negatively affect our business, financial condition, results of operations, and cash flows.***

The effects of climate change could create financial risks to our business. For example, the effects of physical impacts of climate change could disrupt our operations by impacting the availability and cost of materials needed for manufacturing, exacerbating existing risks to our supply chain, and increasing insurance and other operating costs. These factors may impact our decisions to construct new facilities or maintain existing facilities in areas most prone to physical climate risks. We could also face indirect financial risks passed through the supply chain and disruptions that could result in increased prices for our products and the resources needed to produce them.

The growing focus on addressing global climate change has resulted in more regulations designed to reduce greenhouse gas ("GHG") emissions and more customer demand for products and services that have a lower carbon

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

footprint or that help businesses and consumers reduce carbon emissions throughout their value chains. These regulations tend to be implemented under global, national, and sub-national climate objectives or policies, and target energy efficiency and the combustion of fossil fuels. Although we offer and continue to invest in developing solutions that help our customers meet their carbon reduction and sustainability goals, many of our products combust fossil fuels and consume energy. Regulations and carbon reduction goals which seek to reduce GHG emissions could reduce demand for such products and present a risk to our business. We may be required to further increase R&D and other capital expenditures in order to develop offerings that meet these new regulations, standards and customer demands. There can be no assurance that our new product development efforts will be successful, that our products will be accepted by the market, or that economic returns will reflect our investments in new product development. Moreover, future regulatory changes deemphasizing goals for reducing GHG emissions could reduce the value of our investments into such products.

***We may be impacted by increasing stakeholder interest in public company performance, disclosure, and goal- setting with respect to environmental, social, and governance ("ESG") matters.***

In response to customer, investor, employee, governmental, and other stakeholder interest in ESG practices, we may establish goals and other objectives related to ESG matters. Our ability to achieve any goal or objective that we may establish in the future, including with respect to ESG initiatives, is subject to numerous risks, many of which are outside of our control. Examples of such risks include: (i) the availability and cost of low- or non-carbon-based energy sources and technologies, (ii) evolving regulatory requirements affecting ESG standards or disclosures, (iii) the availability of suppliers that can meet our sustainability and other ESG standards, and (iv) the impact of our organic growth and acquisitions or dispositions of businesses or operations. In addition, standards for tracking and reporting on ESG matters have not been harmonized and continue to evolve. Our processes and controls for reporting of ESG matters may not always comply with evolving and disparate standards for identifying, measuring and reporting ESG metrics, our interpretation of reporting standards may differ from those of others, and such standards may change over time, any of which could result in significant revisions to our performance metrics, goals, or reported progress in achieving such goals. Furthermore, there is also an increasing number of state-level anti-ESG initiatives in the U.S. that may conflict with other regulatory requirements, resulting in regulatory uncertainty.

In addition, certain of our products and services, including offerings to Defense and Space customers, are unattractive to certain investors and may cause us to be increasingly subject to ESG-driven investment practices that preclude investment in our debt and equity. On the other hand, some investors may have a negative response to ESG practices as a result of anti-ESG sentiment and may choose not to invest in us, or divest in their holdings of us, as a result of our ESG practices and initiatives.

If our ESG practices or business portfolio do not meet evolving investor or other stakeholder expectations and standards or regulatory requirements, then our reputation, our ability to attract or retain employees and our attractiveness as an investment, supplier, business partner or acquiror could be negatively impacted. Our failure or perceived failure to pursue or fulfill our goals, targets, and objectives or to satisfy various reporting standards within the timelines we may announce, or at all, could have similar negative impacts and expose us to government enforcement actions and private litigation.

***Concentrations of credit, counterparty, and market risk may adversely affect our business, financial condition, results of operations, and cash flows.***

We maintain long-term contractual relationships with many of our customers, suppliers, and other counterparties. While we monitor the financial health of these counterparties, we are exposed to credit and market risks of such counterparties, including those concentrated in the same or similar industries and geographic regions. Changes in political and economic conditions could also lead to concerns about the creditworthiness of counterparties and their ability to pay in the same or similar industry or geography, impacting our ability to renew our long-term contractual arrangements or collect amounts due under these arrangements. Among other factors, geopolitical events, inflation, rising interest rates, banking instability, and changes in economic conditions, including an economic downturn or recession, could also result in the credit deterioration or insolvency of a significant counterparty.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***A significant percentage of our sales and operations is in non-U.S. jurisdictions and is subject to the economic, political, regulatory, foreign exchange, and other risks of international operations.***

Our international operations represented 30% of our net sales based on country of origin (or 54% of our net sales including U.S. exports) for the year ended December 31, 2024. Risks related to international operations include exchange control regulations, wage and price controls, fluctuations in foreign currency exchange rates, antitrust regulations, employment regulations, foreign investment laws, import, export and other trade restrictions and barriers (such as tariffs, sanctions and embargoes), differing levels of protection of intellectual property, acts of industrial espionage, violations by our employees of anti-corruption laws (despite our efforts to mitigate such risk), changes in regulations regarding transactions with state-owned enterprises, nationalization of private enterprises, acts of terrorism, acts of war, civil strife, social or political activism, boycotts, and our ability to hire and maintain qualified staff and maintain the safety of our employees in these regions. Instability and uncertainties arising from the global geopolitical environment, the impacts of war and other geopolitical events (including, but not limited to, the war in Ukraine, the Hamas-Israel conflict, and the growing geopolitical tensions in the Greater China region), and the evolving international and domestic political, regulatory, and economic landscape, including changes in global trade policies, such as sanctions and trade barriers, and trends such as populism, economic nationalism, and negative sentiment toward multinational companies, as well as the cost of compliance with increasingly complex and often conflicting regulations worldwide, can impair our flexibility in modifying product, marketing, pricing or other strategies for growing our businesses, as well as our ability to improve productivity and maintain acceptable operating margins.

Existing free trade laws and regulations provide certain beneficial duties and tariffs for qualifying imports and exports. Changes in laws or policies governing the terms of foreign trade, and in particular increased trade restrictions, tariffs or taxes on imports from countries where we manufacture products or from where we import products or raw materials, either directly or through our suppliers, could have an impact on our competitive position and financial results.

The conflict between Russia and Ukraine has led to sanctions, export and import controls, and trade restrictions by the U.S. and other countries against Russian and Belarusian governments, government-related entities, and other entities and individuals. In retaliation, Russia has taken actions against the U.S., the North Atlantic Treaty Organization members, and other nations. The evolving conflict may worsen existing conditions or cause new impacts, such as escalation in other European regions where we operate, increased U.S.-Russia tensions, and other unforeseen effects. These could result in higher costs, operational impacts, and adversely affect our financial position, ability to meet obligations, and overall financial condition. Continued escalation of the conflict, influenced by U.S. policies (which we are unable to predict at this time), may further impact our financial results and other disclosed risk factors.

Operating outside of the U.S. also exposes us to foreign exchange risk, which we monitor and seek to reduce through hedging activities. However, foreign exchange hedging activities bear a financial cost and may not always be available to us or be successful in eliminating such volatility. Finally, we generate significant amounts of cash outside of the U.S. that is invested with financial and non-financial counterparties. While we employ comprehensive controls regarding global cash management to guard against cash or investment loss and to ensure our ability to fund our operations and commitments, a material disruption to the counterparties with whom we transact business could expose us to financial loss.

Operating outside the U.S. also exposes us to additional intellectual property risk. The laws and enforcement practices of certain jurisdictions in which we operate may not protect our intellectual property rights to the same extent as in the U.S. and may impose joint venture, technology transfer, local service or other foreign investment requirements and restrictions that potentially compromise control over our technology and proprietary information. Failure of foreign jurisdictions to protect our intellectual property rights, an inability to effectively enforce such rights in foreign jurisdictions or the imposition of foreign jurisdiction investment or sourcing restrictions or requirements could result in loss of valuable proprietary information and could impact our competitive position and financial results.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***We may be unable to successfully execute or effectively integrate acquisitions.***

We will regularly review our portfolio of businesses and may pursue inorganic growth through strategic acquisitions. We may not be able to complete transactions on favorable terms, on a timely basis, or at all. In addition, our results of operations and cash flows may be adversely impacted by (i) the failure of acquired businesses to meet or exceed expected returns, including risk of impairment; (ii) the failure to integrate multiple acquired businesses into Aerospace simultaneously and on schedule and/or to achieve expected synergies; and (iii) the discovery of unanticipated liabilities, labor relations difficulties, cybersecurity concerns, compliance issues or other problems in acquired businesses for which we lack contractual protections, insurance or indemnities, or, with regard to divested businesses, claims by purchasers to whom we have provided contractual indemnification.

**Risks Related to the Separation and Distribution**

***We have no history of operating as an independent company, and our historical and pro forma financial information is not necessarily representative of the results that we would have achieved as a separate, publicly traded company and may not be a reliable indicator of our future results.***

The historical information about Aerospace in this information statement refers to the Aerospace Business as operated by and integrated with Honeywell. Our historical and pro forma financial information included in this information statement is derived from the Combined Financial Statements and accounting records of Honeywell. Accordingly, the historical and pro forma financial information included in this information statement does not necessarily reflect the financial condition, results of operations or cash flows that we would have achieved as a separate, publicly traded company during the periods presented or those that we will achieve in the future primarily as a result of the factors described below:

• Generally, our working capital requirements and capital for our general corporate purposes, including capital expenditures and acquisitions, have historically been satisfied as part of the corporate-wide cash management policies of Honeywell. Following the completion of the distribution, our results of operations and cash flows are likely to be more volatile, and we may need to obtain additional financing from banks, through public offerings or private placements of debt or equity securities, strategic relationships or other arrangements, which may or may not be available and may be more costly.

• Prior to the distribution, our business has been operated by Honeywell as part of its broader corporate organization, rather than as an independent company. Honeywell, or one of its affiliates, performed various corporate functional services for us, such as information technology, legal, treasury, accounting, auditing, human resources, investor relations, and finance. Our historical and pro forma financial results reflect allocations of corporate expenses from Honeywell for such functions, which are likely to be less than the expenses we would have incurred had we operated as a separate publicly traded company.

• Currently, our business is integrated with the other businesses of Honeywell. Historically, we have shared economies of scope and scale in costs, employees, vendor relationships, and customer relationships, which have enabled us to procure more advantageous arrangements with respect to, among other things, information technology, logistics, raw materials, facility management, travel services, fleet and professional services. After the distribution, as a standalone company, we may be unable to obtain similar arrangements to the same extent as Honeywell did, or on terms as favorable as those Honeywell obtained, prior to completion of the distribution. We may also be unable to replicate corporate functions that will operate with the same degree of effectiveness as the equivalent Honeywell functions that the Honeywell Aerospace Business has historically benefited from.

• After the completion of the distribution, the cost of capital for our business may be higher than Honeywell's cost of capital prior to the distribution.

• Our historical financial information does not reflect the debt that we will incur as part of the distribution.

• As an independent public company, we will separately become subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act and will be required to prepare our standalone financial statements according to the rules and regulations

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

required by the SEC. These reporting and other obligations will place significant demands on our management and administrative and operational resources. Moreover, to comply with these requirements, we anticipate that we will need to migrate our systems, including information technology systems, implement additional financial and management controls, reporting systems and procedures, and hire additional accounting and finance staff. We expect to incur additional annual expenses related to these steps, and those expenses may be significant. If we are unable to upgrade our financial and management controls, reporting systems, information technology, and procedures in a timely and effective fashion, our ability to comply with our financial reporting requirements and other rules that apply to reporting companies under the Exchange Act could be impaired.

Other significant changes may occur in our cost structure, management, financing and business operations as a result of operating as a company separate from Honeywell. For additional information about the past financial performance of our business and the basis of presentation of the historical combined financial statements and the Unaudited Pro Forma Combined Financial Information of our business, see "Unaudited Pro Forma Combined Financial Information," "Summary of Historical and Unaudited Pro Forma Combined Financial Information," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the historical financial statements and accompanying notes included elsewhere in this information statement.

***Following the separation, our financial profile will change, and we will be a smaller, less diversified company than Honeywell prior to the separation.***

Following the separation, Aerospace will be a smaller, less diversified company than Honeywell. As a result, the Company will be more vulnerable to changing market conditions in the aerospace sector, which could have a material adverse effect on our business, financial condition, and results of operations. In addition, the diversification of our revenues, costs, and cash flows will diminish as a standalone company, such that our results of operations, cash flows, working capital, and financing requirements may be subject to increased volatility and our ability to fund capital expenditures and investments, pay dividends, and service debt may be diminished. Following the separation, we may also lose capital allocation efficiency and flexibility, as we will no longer have access to cash flow from Honeywell to fund Aerospace's business. Aerospace will also be more exposed to matters such as foreign currency exchange rates as a smaller, standalone company than it had been as a part of the larger Honeywell enterprise.

***We may not achieve some or all of the expected benefits of the separation, and the separation may materially adversely affect our business.***

We may not be able to achieve the full strategic and financial benefits expected to result from the separation, or such benefits may be delayed or not occur at all. The separation is expected to provide the following benefits, among others: (1) creating a more focused business better able to dedicate financial, management, and other resources to leverage our strategic objectives, which would enable us to expand leading positions in key products and large installed base and would provide us a greater strategic focus on innovation, including electrification, connectivity solutions, enhanced safety, next-generation defense capabilities, and unmanned systems; (2) enhanced organizational agility and accountability by enabling our management team and board of directors to leverage their relevant domain expertise and devote their time and attention to the development and implementation of corporate strategies and policies that are based primarily on our specific business characteristics; (3) allowing investors make independent investment decisions with respect to Honeywell and Aerospace, which may result in greater alignment between the interests of our shareowner base and the characteristics of our business, capital structure and financial results; (4) allowing us to leverage our distinct growth profile and cash flow characteristics to optimize our capital structure and capital allocation strategy; and (5) enabling us to create incentives for our management and employees more closely aligned with our business performance, which should increase our ability to attract and retain personnel.

We may not achieve these and other anticipated benefits for a variety of reasons, including, among others: (1) the risk of volatility in our stock price immediately following the separation due to sales by Honeywell shareowners whose investment objectives may no longer be met; (2) the time it may take for us to attract our optimal shareowner base; (3) the possibility of disruptions in our business as a result of the separation; (4) the risk that the combined trading prices of Aerospace common stock and Honeywell common stock after the separation may drop below the trading price of Honeywell common stock before the separation; (5) the loss of synergies and scale from operating

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

as one company, including that we may be unable to obtain certain goods, services, and technologies at prices or on terms as favorable as those Honeywell obtained prior to completion of the separation; (6) the potential inability to realize the anticipated benefits of the separation; (7) the significant amounts of management's time and effort that the separation will require, which may divert management's attention from operating our business; (8) the susceptibility to certain market fluctuations and other adverse events because our business will be less diversified than Honeywell's business prior to the completion of the separation; (9) the substantial costs incurred in connection with the separation, including accounting, tax, legal and other professional services costs, costs related to retaining and attracting business and operational relationships with customers, suppliers, employees, and other counterparties, recruiting and relocation costs associated with hiring key senior management personnel who are new to Aerospace, tax costs, and costs to separate shared systems and other unforeseen dis-synergy costs; (10) under the terms of the tax matters agreement that we will enter into with Honeywell, we will be restricted from taking certain actions that could cause the separation or certain related transactions to fail to qualify as tax-free transactions and these restrictions may limit us for a period of time from pursuing certain strategic transactions and equity issuances or engaging in other transactions that might increase the value of our business; and (11) the terms and conditions of the required regulatory authorizations and consents that are granted, if any, may impose requirements, limitations or costs, or place restrictions on the conduct of our business or may materially delay the completion of the separation. If we fail to achieve some or all of the benefits expected to result from the separation, or if such benefits are delayed, it could have a material adverse effect on our competitive position, business, financial condition, results of operations, and cash flows.

***Honeywell's plan to separate its Aerospace Business into an independent, publicly traded company is subject to various risks and uncertainties and may not be completed in accordance with the expected plans or anticipated timeline, or at all, and will involve significant time and expense, which could disrupt or adversely affect our business.***

On February 6, 2025, Honeywell announced plans to separate its Aerospace Business into an independent, publicly traded company. The separation is subject to the satisfaction (or waiver by Honeywell in its sole and absolute discretion) of certain conditions, including final approval by Honeywell's Board of Directors, receipt of a written tax opinion from each of Wachtell Lipton and EY, the SEC declaring effective the registration statement of which this information statement forms a part and satisfactory completion of financing. Furthermore, the separation is complex in nature, and unanticipated developments or changes, including changes in the law, the macroeconomic environment, competitive conditions of Honeywell's markets, regulatory approvals or clearances, the uncertainty of the financial markets, and challenges in executing the separation, could delay or prevent the completion of the proposed separation, or cause the separation to occur on terms or conditions that are different or less favorable than expected. Additionally, the Honeywell Board of Directors, in its sole and absolute discretion, may decide not to proceed with the distribution at any time prior to the distribution date.

The process of completing the proposed separation has been and is expected to continue to be time-consuming and involves significant costs and expenses. The separation costs may be significantly higher than what we currently anticipate and may not yield a discernible benefit if the separation is not completed or is not well executed, or the expected benefits of the separation are not realized. Executing the proposed separation will also require significant amounts of management's time and effort, which may divert management's attention from operating and growing our business. Other challenges associated with effectively executing the separation include attracting, retaining, motivating and training employees, including additional employees that we will need to operate as a stand-alone company; addressing disruptions to our supply chain, manufacturing, sales and distribution, and other operations resulting from separating the Aerospace Business into an independent, publicly traded company; and separating from Honeywell's information systems.

***The combined post-separation value of one share of Honeywell common stock and &nbsp;&nbsp;&nbsp;&nbsp; share(s) of Aerospace common stock may not equal or exceed the pre-distribution value of one share of Honeywell common stock.***

As a result of the separation, Honeywell expects the trading price of shares of Honeywell common stock immediately following the separation to be different from the "regular-way" trading price of such shares immediately prior to the separation because the trading price will no longer reflect the value of the Aerospace Business. There can be no assurance that the aggregate market value of a share of Honeywell common stock

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of Aerospace common stock following the separation will be higher than, lower than, or the same as the market value of a share of Honeywell common stock if the separation did not occur.

***In connection with the distribution, we will incur significant debt obligations, and we may incur additional debt obligations in the future, which could adversely affect our business and profitability and our ability to meet other obligations.***

In connection with the distribution, Aerospace expects to issue senior unsecured notes with an aggregate principal amount of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion. Aerospace also intends to enter into (i) a senior unsecured revolving credit facility to be available for general corporate purposes in an aggregate committed amount as of the date of the distribution of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion and (ii) a senior unsecured commercial paper program to be available for general corporate purposes up to an aggregate amount at any time outstanding of $ billion. See "Description of Material Indebtedness." We may also incur additional indebtedness in the future.

This significant amount of debt could potentially have important consequences to us and our debt and equity investors, including:

• requiring a substantial portion of our cash flow from operations to make interest payments;

• making it more difficult to satisfy debt service and other obligations;

• increasing the risk of a future credit ratings downgrade of our debt, which could increase future debt costs and limit the future availability of debt financing;

• increasing our vulnerability to general adverse economic and industry conditions;

• reducing the cash flow available to fund capital expenditures and other corporate purposes and to grow our business;

• limiting our flexibility in planning for, or reacting to, changes in our business and the industry;

• placing us at a competitive disadvantage relative to our competitors that may not be as highly leveraged with debt;

• requiring us to repatriate earnings to the United States, which could cause withholding taxes to be applied, which in turn could increase our effective tax rate; and

• limiting our ability to borrow additional funds as needed or take advantage of business opportunities as they arise, pay cash dividends or repurchase common stock.

To the extent that we incur additional indebtedness, the foregoing risks could increase. In addition, our actual cash requirements in the future may be greater than expected. Our cash flow from operations may not be sufficient to repay all of the outstanding debt as it becomes due, and we may not be able to borrow money, sell assets or otherwise raise funds on acceptable terms, or at all, to refinance our debt.

***Following the distribution, certain of our directors and employees may have actual or potential conflicts of interest because of their financial interests in Honeywell or because of their previous positions with Honeywell.&nbsp;&nbsp;&nbsp;&nbsp;***

After the distribution, the management and directors of Honeywell and Aerospace may own equity interests in both Honeywell and Aerospace. Continuing ownership of Honeywell equity interests could create, or appear to create, potential conflicts of interest when our management and directors face decisions that could have implications for both us and Honeywell. For example, potential conflicts of interest could arise in connection with the resolution of any dispute regarding the terms of the agreements governing the distribution and our relationship with Honeywell following the separation and distribution. These agreements include the separation agreement, the transition services agreement, the tax matters agreement, the employee matters agreement, the intellectual property license agreement, the trademark license agreement, and any commercial agreements between the parties or their affiliates. Potential

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

conflicts of interest may also arise out of any commercial arrangements that we or Honeywell may enter into in the future.

***We may not be able to engage in desirable capital-raising or strategic transactions following the separation due to certain provisions of our tax matters agreement with Honeywell and related tax considerations.***

Under current U.S. federal income tax law, a spin-off that otherwise qualifies for tax-free treatment can be rendered taxable to the parent corporation and its shareowners as a result of certain post-spin-off transactions, including certain acquisitions of shares or assets of the spun-off corporation. To preserve the tax-free treatment of the separation and the distribution, and in addition to Aerospace's indemnity obligation described below, the tax matters agreement will restrict Aerospace, for the two-year period following the distribution, except in specific circumstances, from: (1) entering into any transaction pursuant to which all or a portion of the shares of Aerospace stock would be acquired, whether by merger or otherwise, (2) issuing equity securities beyond certain thresholds, (3) repurchasing shares of Aerospace stock other than in certain open-market transactions, and (4) ceasing to actively conduct certain of its businesses. The tax matters agreement will also prohibit Aerospace from taking or failing to take any other action that would prevent the distribution and certain related transactions from qualifying as a transaction that is generally tax-free, for U.S. federal income tax purposes, under Sections 355 and 368(a)(1)(D) of the Code. These restrictions may limit Aerospace's ability to pursue certain equity issuances, strategic transactions, repurchases or other transactions that it may otherwise believe to be in the best interests of its shareowners or that might increase the value of its business. For more information, see "Certain Relationships and Related Party Transactions—Tax Matters Agreement" and "Material U.S. Federal Income Tax Consequences."

***In connection with the separation of Aerospace into an independent, publicly traded company, Honeywell and Aerospace will indemnify the other party for certain liabilities. If we are required to pay under these indemnities to Honeywell, our financial results could be negatively impacted. Also, the Honeywell indemnities may not be sufficient to hold us harmless from the full amount of liabilities for which Honeywell will be allocated responsibility, and Honeywell may not be able to satisfy its indemnification obligations in the future.***

Pursuant to the separation agreement and certain other agreements between Honeywell and Aerospace, each party will agree to indemnify the other party for certain liabilities, in each case for uncapped amounts, as discussed further in "Certain Relationships and Related Party Transactions." Certain indemnities that we may be required to provide to Honeywell will not be subject to any cap, may be significant, and could negatively impact our business. Third parties could also seek to hold us responsible for any of the liabilities that Honeywell has agreed to retain. The indemnities from Honeywell for our benefit may not be sufficient to protect us against the full amount of such liabilities, and Honeywell may not be able to fully satisfy its indemnification obligations. Any amounts we are required to pay pursuant to such indemnification obligations and other liabilities could require us to divert cash that would otherwise have been used in furtherance of our operating business.

Moreover, even if we ultimately succeed in recovering from Honeywell any amounts for which we are held liable, we may be temporarily required to bear these losses ourselves. Each of these risks could negatively affect our business, results of operations, and financial condition.

***Honeywell may fail to perform under various transaction agreements that will be executed as part of the separation, or we may fail to have necessary systems and services in place when certain of the transaction agreements expire.***

In connection with the separation and prior to the distribution, Aerospace and Honeywell will enter into the separation agreement and will also enter into various other agreements, including a transition services agreement, a tax matters agreement, an employee matters agreement, an intellectual property license agreement, and a trademark license agreement. These agreements, together with the documents and agreements by which the internal reorganization will be effected, will determine the allocation of assets and liabilities between the companies following the separation and will include any necessary indemnifications related to liabilities and obligations. The transition services agreement will provide for the performance of certain services by each company for the benefit of the other for a period of time after the separation. If Honeywell is unable or unwilling to satisfy its obligations under these agreements, including its indemnification obligations, we could incur operational difficulties and/or losses. We

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

are in the process of creating systems and services to replace many of the systems and services that Honeywell currently provides to us. However, we may not be successful in implementing these systems and services in a timely manner or at all, we may incur additional costs in connection with, or following, the implementation of these systems and services, and we may not be successful in transitioning data from Honeywell's systems to ours.

***Our accounting and other management systems and resources may not be adequately prepared to meet the financial reporting and other requirements to which we will be subject as a standalone publicly traded company following the distribution.***

Our financial results previously were included within the consolidated results of Honeywell. We were not directly subject to the reporting and other requirements of the Exchange Act. As a result of the distribution, we will be directly subject to reporting and other obligations under the Exchange Act, including the requirements of Section 404 of Sarbanes-Oxley Act, which will require annual management assessments of the effectiveness of our internal control over financial reporting and a report by our independent registered public accounting firm. These reporting and other obligations will place significant demands on our management and administrative and operational resources, including accounting resources.

Moreover, to comply with these requirements, we anticipate that we will need to migrate our systems, including information technology systems, implement additional financial and management controls, reporting systems, and procedures, and hire additional accounting and finance staff. We expect to incur additional annual expenses related to these steps, and those expenses may be significant. If we are unable to implement appropriate financial and management controls, reporting systems, information technology, and procedures in a timely and effective fashion, our ability to comply with our financial reporting requirements and other rules that apply to reporting companies under the Exchange Act could be impaired. There could be a negative reaction in the financial markets due to a loss of investor confidence in the Company and the reliability of our financial statements. Confidence in the reliability of our financial statements is also likely to suffer if we or our independent registered public accounting firm report a material weakness in our internal control over financial reporting. Any failure to achieve and maintain effective internal controls could have a material adverse effect on our business, financial condition, results of operations and cash flows.

***The terms we will receive in our agreements with Honeywell could be less beneficial than the terms we may have otherwise received from unaffiliated third parties.***

The agreements we will enter into with Honeywell in connection with the separation, including the separation agreement, a transition services agreement, a tax matters agreement, an employee matters agreement, an intellectual property license agreement, a trademark license agreement and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , were prepared in the context of the separation while we were still a wholly owned subsidiary of Honeywell. Accordingly, during the period in which the terms of those agreements were prepared, we did not have a Board of Directors or a management team that was independent of Honeywell. As a result, the terms of those agreements may not reflect terms that would have resulted from arm's-length negotiations between unaffiliated third parties. See "Certain Relationships and Related Party Transactions."

***If the distribution, together with certain related transactions, were to fail to qualify as a transaction that is generally tax-free for U.S. federal income tax purposes, including as a result of subsequent acquisitions of our stock or the stock of Honeywell, we, as well as Honeywell and Honeywell's shareowners, could be subject to significant tax liabilities. In addition, if certain internal restructuring transactions were to fail to qualify as transactions that are generally tax-free for U.S. federal or non-U.S. income tax purposes, we and Honeywell could be subject to significant tax liabilities. In certain circumstances, we could be required to indemnify Honeywell for material taxes and other related amounts pursuant to indemnification obligations under the tax matters agreement.***

It is a condition to the distribution that Honeywell receive a written opinion from each of Wachtell Lipton and EY, satisfactory to the Honeywell Board of Directors, regarding the qualification of the distribution, together with certain related transactions, as a reorganization within the meaning of Sections 355 and 368(a)(1)(D) of the Code. The Tax Opinions will be based upon and rely on, among other things, various facts and assumptions, as well as certain

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

representations, statements, and undertakings of Honeywell and Aerospace, including those relating to the past and future conduct of Honeywell and Aerospace. If any of these representations, statements, or undertakings is, or becomes, inaccurate or incomplete, or if any of the representations or covenants contained in any of the separation–related agreements and documents or in any documents relating to the Tax Opinions are inaccurate or not complied with by Honeywell or Aerospace or their respective subsidiaries, the Tax Opinions may be invalid or the conclusions reached therein could be jeopardized.

Notwithstanding receipt of the Tax Opinions, the Internal Revenue Service (the "IRS") could determine that the distribution and/or certain related transactions should be treated as taxable transactions for U.S. federal income tax purposes if it determines that any of the representations, assumptions, or undertakings upon which the Tax Opinions were based are inaccurate or have not been complied with. The Tax Opinions represent the judgment of the relevant advisors and neither is binding on the IRS or any court, and the IRS or a court may disagree with the conclusions in the Tax Opinions. Accordingly, notwithstanding receipt by Honeywell of the Tax Opinions, there can be no assurance that the IRS will not assert that the distribution and/or certain related transactions do not qualify for tax-free treatment for U.S. federal income tax purposes or that a court would not sustain such a challenge. In the event the IRS were to prevail with such challenge, we, as well as Honeywell and Honeywell's shareowners, could be subject to significant U.S. federal income tax liability.

If the distribution were to fail to qualify as a reorganization within the meaning of Sections 355 and 368(a)(1)(D) of the Code, in general, for U.S. federal income tax purposes, Honeywell would recognize taxable gain as if it had sold the Aerospace common stock in a taxable sale for its fair market value, and Honeywell shareowners who receive Aerospace common stock in the distribution would be subject to tax as if they had received a taxable distribution equal to the fair market value of such shares. For more information, see "Material U.S. Federal Income Tax Consequences." Even if the distribution were to otherwise qualify as a reorganization within the meaning of Sections 355 and 368(a)(1)(D) of the Code, it may result in taxable gain to Honeywell (but not its shareowners) under Section 355(e) of the Code if the distribution were deemed to be part of a plan (or series of related transactions) pursuant to which one or more persons acquire, directly or indirectly, shares representing a 50 percent or greater interest (by vote or value) in Honeywell or Aerospace. For this purpose, any acquisition of Honeywell or Aerospace shares within the period beginning two years before the distribution and ending two years after the distribution are presumed to be part of such a plan, although Honeywell and Aerospace may be able to rebut that presumption (including by qualifying for one or more safe harbors under applicable Treasury Regulations). For more information, see "Material U.S. Federal Income Tax Consequences."

In addition, as part of the separation and prior to the distribution, Honeywell and its subsidiaries expect to complete the internal reorganization, and Honeywell, Aerospace, and their respective subsidiaries expect to incur certain tax costs in connection with the internal reorganization, including non-U.S. tax costs resulting from transactions in non-U.S. jurisdictions, which may be material. With respect to certain transactions undertaken as part of the internal reorganization, Honeywell has requested and intends to obtain tax rulings in certain non-U.S. jurisdictions and/or opinions of external advisors, in each case, regarding the tax treatment of such transactions. Such tax rulings and opinions will be based upon and rely on, among other things, various facts and assumptions, as well as certain representations, statements and undertakings of Honeywell, Aerospace, or their respective subsidiaries. If any of these representations or statements is, or becomes, inaccurate or incomplete, or if Honeywell, Aerospace, or any of their respective subsidiaries do not fulfill or otherwise comply with any such undertakings or covenants, such tax rulings and/or opinions may be invalid or the conclusions reached therein could be jeopardized. Further, notwithstanding receipt of any such tax rulings and/or opinions, there can be no assurance that the relevant taxing authorities will not assert that the tax treatment of the relevant transactions differs from the conclusions reached in the relevant tax rulings and/or opinions. In the event any such tax rulings and/or opinions cannot be obtained or the relevant taxing authorities prevail with any challenge in respect of any relevant transaction, we and Honeywell could be subject to significant tax liabilities.

Under the tax matters agreement to be entered into between Honeywell and Aerospace in connection with the separation, we generally would be required to indemnify Honeywell for any taxes resulting from the separation (and any related costs and other damages) to the extent such amounts resulted from (1) an acquisition of all or a portion of the equity securities or assets of Aerospace, whether by merger or otherwise (and regardless of whether we participated in or otherwise facilitated the acquisition), (2) other actions or failures to act by Aerospace or (3) certain

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

of Aerospace's representations, covenants or undertakings contained in any of the separation-related agreements and documents or in any documents relating to the Tax Opinions being incorrect or violated. Any such indemnity obligations could be material. For a more detailed discussion, see "Certain Relationships and Related Party Transactions—Tax Matters Agreement."

***The transfer to us by Honeywell of certain contracts, permits and other assets and rights may require the consents or approvals of, or provide other rights to, third parties and governmental authorities. If such consents or approvals are not obtained, we may not be entitled to the benefit of such contracts, permits, and other assets and rights, which could increase our expenses or otherwise harm our business and financial performance.***

The separation agreement will provide that certain contracts, permits, and other assets and rights are to be transferred from Honeywell or its subsidiaries to Aerospace or its subsidiaries in connection with the separation. The transfer of certain of these contracts, permits, and other assets and rights may require consents or approvals of third parties or governmental authorities or provide other rights to third parties. In addition, in some circumstances, we and Honeywell are joint beneficiaries of contracts, and we and Honeywell may need the consents of third parties in order to split, separate, replace, novate or replicate the existing contracts or the relevant portion of the existing contracts.

Some parties may use consent requirements or other rights to seek to terminate contracts or obtain more favorable contractual terms from us, which, for example, could take the form of price increases. This could require us to expend additional resources in order to obtain the services or assets previously provided under the contract or require us to seek arrangements with new third parties or obtain letters of credit or other forms of credit support. If we do not obtain required consents or approvals, we may be unable to obtain the benefits, permits, assets, and contractual commitments that are intended to be allocated to us as part of our separation from Honeywell, and we may be required to seek alternative arrangements to obtain services and assets which may be more costly and/or of lower quality. The termination or modification of these contracts or permits or the failure to timely complete the transfer or separation of these contracts or permits could negatively impact our business, financial condition, results of operations, and cash flows.

***The closing of the separation may be delayed in certain jurisdictions, or not occur at all, due to local regulatory requirements, which may adversely affect our business, financial condition, and results of operations.***

The closing of the transfer of certain assets related to the Aerospace Business in certain jurisdictions may not occur at or prior to the distribution, if at all, due to local regulatory requirements. If we are unable to obtain required approval of local regulators or otherwise comply with such local regulatory requirements to effect the separation in these jurisdictions, we may be unable to obtain the assets that are intended to be allocated to us as part of our separation from Honeywell. The failure to timely complete the transfer of these local assets could negatively affect our business, financial condition, results of operations, and cash flows.

***Until the distribution occurs, the Honeywell Board of Directors has sole and absolute discretion to change the terms of the separation in ways which may be unfavorable to us, including to determine not to effect the distribution at all.***

Until the distribution occurs, Aerospace will continue to be a wholly owned subsidiary of Honeywell. Accordingly, Honeywell will have the sole and absolute discretion to determine and change the terms of the separation, including the establishment of the record date for the distribution and the distribution date. These changes could be unfavorable to us. Furthermore, the separation is complex in nature, and unanticipated developments or changes, including changes in the law, the macroeconomic environment, competitive conditions of Honeywell's markets, regulatory approvals or clearances, the uncertainty of the financial markets, and challenges in executing the separation and distribution, could delay or prevent the completion of the proposed separation or distribution, or cause the separation or distribution to occur on terms or conditions that are different or less favorable than expected. In addition, the Honeywell Board of Directors, in its sole and absolute discretion, may decide not to proceed with the distribution at any time prior to the distribution date.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***Restrictions under our intellectual property license and trademark license agreements with Honeywell will limit our ability to develop and commercialize certain products and services and/or prosecute, maintain, and enforce certain intellectual property.***

We do not own the Honeywell trademark and certain other intellectual property historically used in our business, and any loss of our rights to use specified trademarks or other intellectual property granted to us under our intellectual property license agreement or trademark license agreement with Honeywell could have an adverse effect on our business results, cash flows, financial condition or prospects. Honeywell owns and controls the Honeywell brand, and the integrity and strength of the Honeywell brand will depend in large part on the efforts and businesses of Honeywell and other licensees of the Honeywell brand and how the brand is used, promoted, and protected by them, which will be largely outside of our control. Although our agreements include terms intended to limit consumer confusion, both Honeywell (as owner) and Aerospace (as a licensee) will use the Honeywell trademark. Confusion could arise in the market as between the two companies and their respective goods and services, including customer and investor confusion regarding the products offered by, and the actions of, the two companies, such that negative publicity associated with either company could adversely affect the public image of the other, which could negatively affect our business.

We will be dependent on Honeywell to prosecute, maintain, and enforce the intellectual property licensed under the intellectual property license agreement and trademark license agreement. For example, Honeywell will be responsible for filing, prosecuting, and maintaining (at its discretion) patents that they license to us. Honeywell will also have the right to enforce their respective patents, trade secrets, and know-how licensed to us. If Honeywell chooses not to enforce the licensed patents, trade secrets or know-how under the intellectual property license agreement, we may not be able to prevent competitors from making, using, and selling competitive products and services.

In addition, our use of the trademarks and other intellectual property licensed to us under the intellectual property license agreement and trademark license agreement is restricted to certain fields of use and territories, which could limit our ability to develop and commercialize certain products and services. For example, the licenses granted to us under the trademark license agreement will not, without Honeywell's consent (which might not be provided in some circumstances), extend to all fields of use or territories that we may in the future decide to enter into or conduct business within. These restrictions may make it less attractive and/or more difficult, time consuming and/or expensive for us to market and commercialize certain new products and services or expand our business to new territories, and may result in certain of our products or services being later to market than those of our competitors, or being sold under alternative brands, which may require significant resources and expenses and may affect our ability to attract and retain customers, all of which could have an adverse effect on our business results, cash flows, financial condition, or prospects.

Furthermore, there are certain circumstances under which our trademark license agreement with Honeywell may be terminated or not renewed. Termination of the trademark license agreement would eliminate our rights to use the specified trademarks granted to us under this agreement and may require us to negotiate a new or reinstated agreement with less favorable terms or to change our corporate name and certain product names and undergo significant rebranding efforts. These rebranding efforts may require significant resources and expenses and may affect our ability to attract and retain customers, all of which could have an adverse effect on our business results, cash flows, financial condition, or prospects.

***Potential liabilities may arise due to fraudulent transfer considerations, which would adversely affect our financial condition and results of operations.***

In connection with the separation (including the internal reorganization), Honeywell has undertaken and will undertake several corporate reorganization transactions involving its subsidiaries which, along with the distribution, may be subject to various fraudulent conveyance and transfer laws. If, under these laws, a court were to determine that, at the time of the separation, any entity involved in these reorganization transactions or the separation:

• (1) was insolvent, was rendered insolvent by reason of the separation, or had remaining assets constituting unreasonably small capital, and (2) received less than fair consideration in exchange for the distribution; or

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

• intended to incur, or believed it would incur, debts beyond its ability to pay these debts as they matured,

then the court could void the separation and distribution, in whole or in part, as a fraudulent conveyance or transfer. The court could then require our shareowners to return to Honeywell some or all of the shares of Aerospace common stock issued in the distribution, or require Honeywell or Aerospace, as the case may be, to fund liabilities of the other company for the benefit of creditors. The measure of insolvency will vary depending upon the jurisdiction whose law is being applied. Generally, however, an entity would be considered insolvent if the fair value of its assets was less than the amount of its liabilities (including the probable amount of contingent liabilities), or if it incurred debt beyond its ability to repay the debt as it matures. No assurance can be given as to what standard a court would apply to determine insolvency or that a court would determine that Aerospace was solvent at the time of or after giving effect to the separation.

***Following the separation, we may not be able to arrange for the termination or replacement of, and/or the release of Honeywell and its subsidiaries from, all credit support obligations provided by Honeywell and its subsidiaries that remain outstanding.***

Honeywell provides us with credit support in certain jurisdictions. To support us in selling products and services globally, Honeywell has entered into and may enter into contracts on behalf of us or issue parent company guarantees or letters of credit. Honeywell also provides similar credit support for some of our non-customer related activities, including procuring letters of credit to backstop certain environmental matters. We expect to make alternative arrangements and procure our own letters of credit in connection with the separation. The separation agreement requires us to use commercially reasonable efforts to arrange for the termination or replacement of, and the release of Honeywell and its subsidiaries from, all Honeywell credit support obligations. We may not be able to obtain the novation of these obligations to us and/or obtain releases of Honeywell and its subsidiaries. For the obligations that remain outstanding under Honeywell credit support following the separation, we will be required to indemnify Honeywell against any amounts paid arising from such Honeywell credit support. Pursuant to the separation agreement, we will be subject to certain restrictions and covenants with respect to contracts underlying Honeywell credit support obligations for which Honeywell or its subsidiaries may remain liable, including a prohibition on certain amendments. These provisions may restrict us from extending contracts or amending contracts in a manner that increases Honeywell's obligations under outstanding Honeywell credit support or require us to obtain third-party credit support with respect to such obligations. In each case, these provisions could adversely affect our business.

***The commercial and credit environment may adversely affect our access to capital.***

Our ability to issue debt or enter into other financing arrangements on acceptable terms could be adversely affected if there is a material decline in the demand for our products or in the solvency of our customers or suppliers or if there are other significantly unfavorable changes in economic conditions. Volatility in the world financial markets could increase borrowing costs or affect our ability to access the capital markets. These conditions may adversely affect our ability to obtain targeted credit ratings prior to and following the separation.

**Risks Related to Our Common Stock**

***We cannot be certain that an active trading market for our common stock will develop or be sustained after the distribution and, following the distribution, our stock price may fluctuate significantly.***

A public market for our common stock does not currently exist. We anticipate that on or prior to the record date for the distribution, trading of shares of our common stock will begin on a "when-issued" basis and will continue through the distribution date. However, we cannot guarantee that an active trading market will develop or be sustained for our common stock after the distribution, nor can we predict the prices at which shares of our common stock may trade after the distribution. Similarly, we cannot predict the effect of the distribution on the trading prices of our common stock or whether the combined market value of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of our common stock and one share of Honeywell common stock will be less than, equal to or greater than the market value of one share of Honeywell common stock prior to the distribution.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

Until the market has fully evaluated Aerospace as a stand-alone entity, the prices at which shares of our common stock trade may fluctuate more significantly than might otherwise be typical, even with other market conditions, including general volatility, held constant. The increased volatility of our stock price following the distribution may have a material adverse effect on our business, financial condition and results of operations. The market price of our common stock may fluctuate significantly due to a number of factors, some of which may be beyond our control, including:

• actual or anticipated fluctuations in our operating results;

• changes in earnings estimated by securities analysts or our ability to meet those estimates;

• the operating and stock price performance of comparable companies;

• changes to the regulatory and legal environment under which we operate;

• actual or anticipated fluctuations in commodities prices;

• analyst research reports, recommendations and changes in recommendations, price targets, and withdrawals of coverage;

• whether our common stock is included in stock market indices; and

• domestic and worldwide economic conditions, political, trade and social conditions, including natural disasters or acts of nature, hostilities, acts of war, political upheaval, changes in government or administrations, sabotage or terrorism or military actions, disease outbreaks, epidemics, or pandemics.

***A significant number of shares of our common stock may be sold following the distribution, which may cause our stock price to decline.***

Any sales of substantial amounts of our common stock in the public market or the perception that such sales might occur, in connection with the distribution or otherwise, may cause the market price of our common stock to decline. Upon completion of the distribution, we expect that we will have an aggregate of approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock issued and outstanding. Shares distributed to Honeywell shareowners in the separation will generally be freely tradeable without restriction or further registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"), except for shares owned by one of our "affiliates," as that term is defined in Rule 405 under the Securities Act.

We are unable to predict whether large amounts of our common stock will be sold in the open market following the distribution. We are also unable to predict whether a sufficient number of buyers of our common stock to meet the demand to sell shares of our common stock at attractive prices would exist at that time.

***Your percentage of ownership in Aerospace may be diluted in the future.***

In the future, your percentage ownership in Aerospace may be diluted because of equity issuances for acquisitions, capital market transactions or otherwise, including any equity awards that we will grant to our directors, officers, and employees. Our employees will have stock-based awards that correspond to shares of our common stock after the distribution as a result of conversion of their Honeywell stock-based awards. We anticipate that the compensation committee of our Board of Directors will grant additional stock-based awards to our employees after the distribution. Such awards will have a dilutive effect on our earnings per share, which could adversely affect the market price of our common stock. From time to time, we will issue additional stock-based awards to our employees under our employee benefits plans.

***We cannot guarantee the timing, amount or payment of dividends on our common stock.***

Following the completion of the distribution, we expect to pay regular dividends to our shareowners, the amount of which will be determined by our Board of Directors and is expected to be in line with our peers. However, the timing, declaration, amount and payment of future dividends to shareowners, if any, will fall within the discretion of

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

our Board of Directors. We will consider several factors when establishing a dividend policy, including our financial condition, earnings, sufficiency of distributable reserves, capital needs of our business, opportunities to retain future earnings to fund our business operations for future growth, capital requirements, debt service obligations, legal requirements, regulatory constraints, industry practice and other factors deemed relevant by our Board of Directors. There can be no assurance that we will initiate the payment of a dividend to our shareowners in the future or continue to pay any dividend if we do commence the payment of dividends. For more information, see "Dividend Policy."

***The rights associated with Aerospace's common stock will differ from the rights associated with Honeywell's common stock.***

Upon completion of the distribution, the rights of Honeywell shareowners who become Aerospace shareowners will be governed by the amended and restated certificate of incorporation of Aerospace and by Delaware law. The rights associated with Honeywell common stock are different from the rights associated with Aerospace's common stock. Material differences between the rights of Honeywell shareowners and the rights of Aerospace shareowners include differences with respect to, among other things, the removal of directors, the convening of special shareowner meetings, anti-takeover measures, exculpation of officers, designation of federal district courts as the exclusive forum for causes of action arising under the Securities Act, and provisions relating to the ability to amend the certificate of incorporation. See "Description of Our Common Stock—Anti-Takeover Effects of Various Provisions of Delaware Law and Our Certificate of Incorporation and Bylaws" for more information.

***Anti-takeover provisions could enable our Board of Directors to resist a takeover attempt by a third party and limit the power of our shareowners.***

Our amended and restated certificate of incorporation and amended and restated bylaws will contain, and Delaware law contains, provisions that are intended to deter coercive takeover practices and inadequate takeover bids by making such practices or bids unacceptably expensive to the bidder and to encourage prospective acquirers to negotiate with our Board of Directors rather than to attempt a hostile takeover. These provisions are expected to include, among others:

• until the annual shareowner meeting in 2030, our Board of Directors will be divided into three classes, which could have the effect of making the replacement of incumbent directors more time consuming and difficult;

• as long as our Board of Directors is classified, our directors can be removed by shareowners only for cause;

• our Board of Directors will have the sole authority to fix the size of our Board of Directors;

• our Board of Directors will have the authority to amend and repeal our amended and restated bylaws without a shareowner vote;

• the ability of our remaining directors to fill vacancies on our Board of Directors;

• limitations on shareowners' ability to call a special shareowner meeting;

• our amended and restated certificate of incorporation and amended and restated bylaws will not provide for cumulative voting in the election of directors;

• rules regarding how shareowners may present proposals or nominate directors for election at shareowner meetings;

• the right of our Board of Directors to designate and issue preferred stock without shareowner approval from time to time in one or more series;

• limitations on our ability to enter into business combination transactions;

• our amended and restated certificate of incorporation and amended and restated bylaws will contain provisions that discourage attempts to amend both documents for a period following the separation; and

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

• our amended and restated certificate of incorporation will contain exclusive forum provisions (as described in more detail in the following risk factor).

In addition, we expect to be subject to Section 203 of the DGCL, which could have the effect of delaying or preventing a change of control that you may favor. Section 203 provides that, subject to limited exceptions, persons that acquire, or are affiliated with persons that acquire, more than 15% of the outstanding voting stock of a Delaware corporation may not engage in a business combination with that corporation, including by merger, consolidation or acquisitions of additional shares, for a three-year period following the date on which that person or any of its affiliates becomes the holder of more than 15% of the corporation's outstanding voting stock.

We believe these provisions will protect our shareowners from coercive or otherwise unfair takeover tactics by requiring potential acquirers to negotiate with our Board of Directors and by providing our Board of Directors with more time to assess any acquisition proposal. These provisions are not intended to make Aerospace immune from takeovers; however, these provisions will apply even if the offer may be considered beneficial by some shareowners and could delay or prevent an acquisition that our Board of Directors determines is not in the best interests of Aerospace and our shareowners. These provisions may also prevent or discourage attempts to remove and replace incumbent directors. See "Description of Our Common Stock—Anti-Takeover Effects of Various Provisions of Delaware Law and our Certificate of Incorporation and Bylaws."

In addition, an acquisition or further issuance of our stock could trigger the application of Section 355(e) of the Code, causing the distribution to be taxable to Honeywell. For a discussion of Section 355(e) of the Code, see "Material U.S. Federal Income Tax Consequences." Under the tax matters agreement, we would be required to indemnify Honeywell for the resulting tax, and this indemnity obligation might discourage, delay or prevent a change of control that our shareowners may consider favorable.

***Our amended and restated bylaws will designate the state courts within the State of Delaware or the federal district courts of the United States as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our shareowners, which could discourage lawsuits against Aerospace and our directors and officers.***

Although we believe the exclusive forum provision benefits Aerospace by providing increased consistency in the application of law in the types of lawsuits to which it applies, this exclusive forum provision may limit the ability of our shareowners to bring a claim in a judicial forum that such shareowners find favorable for disputes with Aerospace or our directors or officers and it may be costlier for our shareowners to bring a claim in such courts than other judicial forums, each of which may discourage such lawsuits against Aerospace and our directors and officers.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

Although our amended and restated bylaws will include this exclusive forum provision, it is possible that a court could rule that this provision is inapplicable or unenforceable. Alternatively, if a court were to find this exclusive forum provision inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings described above, we may incur additional costs associated with resolving such matters in other jurisdictions, which could negatively affect our business, results of operations and financial condition.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This information statement and other materials Honeywell and Aerospace have filed or will file with the SEC contain or incorporate by reference statements which, to the extent they are not statements of historical or present fact, constitute "forward-looking statements" under the securities laws. From time to time, oral or written forward-looking statements may also be included in other information released to the public. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by the use of words such as "anticipates," "believes," "could," "expects," "forecasts," "intends," "goals," "expectations," "plans," "prospects," "estimates," "projects," "targets," "anticipates," "will," "may," "should," "guidance," "outlook," "confident," and other words of similar meaning in connection with a discussion of future operating or financial performance or the separation. Forward-looking statements may include, among other things, statements relating to future sales, earnings, cash flow, results of operations, uses of cash, share repurchases, tax rates and other measures of financial performance or potential future plans, strategies, or transactions of Aerospace or Honeywell following Honeywell's separation into two independent public companies, the separation, including the expected timing of completion of the separation, estimated costs associated with the separation and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties, and other factors include, without limitation:

• our ability to successfully develop new technologies and introduce new products;

• changes in the price and availability of raw materials that we use to produce our products;

• global climate change and related regulations and changes in customer demand;

• economic, political, regulatory, foreign exchange, and other risks of international operations;

• the impact of tariffs or other restrictions on foreign imports;

• our ability to compete successfully in the markets in which we operate;

• concentrations of our credit, counterparty and market risk;

• our ability to successfully execute or effectively integrate acquisitions;

• our joint ventures and strategic co-development partnerships;

• our ability to recruit and retain qualified personnel;

• potential material environmental liabilities;

• the impact of potential cybersecurity attacks, data privacy breaches, and other operational disruptions;

• increasing stakeholder interest in public company performance, disclosure, and goal-setting with respect to ESG matters;

• our lack of operating history as an independent, publicly traded company and unreliability of historical combined financial information as an indicator of our future results;

• risks relating to our ability to achieve the expected benefits and timing of the separation, and the risk that conditions to the separation will not be satisfied and/or that the separation will not be completed within the expected time frame, on the expected terms or at all;

• a determination by the IRS or other tax authorities that the distribution or certain related transactions should be treated as taxable transactions;

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

• the possibility that any consents or approvals required in connection with the separation will not be received or obtained within the expected time frame, on the expected terms or at all;

• financing transactions undertaken or expected to be undertaken in connection with the separation and risks associated with additional indebtedness;

• the risk that incremental costs of operating on a standalone basis (including the loss of synergies), costs of restructuring transactions and other costs incurred in connection with the separation will exceed our estimates;

• adverse outcomes of litigation matters and government and other proceedings; and

• the impact of the separation on our businesses and the risk that the separation may be more difficult, time-consuming or costly than expected, including the impact on our resources, systems, procedures, and controls, diversion of management's attention and the impact on relationships with customers, suppliers, employees, and other business counterparties.

There can be no assurance that the separation, distribution or any other transaction described in this information statement will in fact be consummated in the manner described or at all. The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the discussions under "Risk Factors" in this information statement. Any forward-looking statement speaks only as of the date on which it is made, Aerospace assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**THE SEPARATION AND DISTRIBUTION**

**Overview**

On February 6, 2025, Honeywell announced its intention to separate its Aerospace Business from its Automation Business. The separation will occur through a pro rata distribution to the Honeywell shareowners of 100% of the shares of common stock of Aerospace, which was formed to hold Honeywell's Aerospace Business.

In connection with the distribution, we expect that:

• Honeywell will complete the internal reorganization as a result of which Aerospace will become the parent company of the Honeywell operations comprising, and the entities that will conduct, the Aerospace Business;

• Aerospace will issue senior unsecured notes with an aggregate principal amount of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion. Aerospace also intends to enter into (i) a senior unsecured revolving credit facility to be available for general corporate purposes in an aggregate committed amount as of the date of the distribution of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion and (ii) a senior unsecured commercial paper program to be available for general corporate purposes up to an aggregate amount at any time outstanding of $ billion; and

• Aerospace will distribute approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion of cash to Honeywell using a portion of the proceeds from the issuance of senior unsecured notes, on or prior to the completion of the distribution.

On&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026, the Honeywell Board of Directors approved the distribution of all of Aerospace's issued and outstanding share(s) of common stock on the basis of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of Aerospace common stock for every share of Honeywell common stock held as of the close of business on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, the record date for the distribution.

At &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , Eastern Time, on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, the distribution date, each Honeywell shareowner will receive &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of Aerospace common stock for every share of Honeywell common stock held at the close of business on the record date for the distribution, as described below. Honeywell shareowners will receive cash in lieu of any fractional shares of Aerospace common stock that they would have received after application of this ratio. Upon completion of the separation, each Honeywell shareowner as of the record date will continue to own shares of Honeywell and will receive a proportionate share of the outstanding common stock of Aerospace to be distributed. You will not be required to make any payment, surrender or exchange your Honeywell common stock or take any other action to receive your shares of Aerospace common stock in the distribution. The distribution of Aerospace common stock as described in this information statement is subject to the satisfaction or waiver of certain conditions. For a more detailed description of these conditions, see "—Conditions to the Distribution."

**Reasons for the Separation**

The Honeywell Board of Directors believes that the separation of the Aerospace Business into an independent, publicly traded company is in the best interests of Honeywell and its shareowners for a number of reasons, including:

• ***Simplified Strategic Focus and Purpose.*** Following the separation, each of Honeywell and Aerospace will be a more focused business better able to dedicate financial, management and other resources to leverage its respective strategic objectives. We believe simplification will lead to greater end market and customer intimacy. Each company will pursue appropriate growth opportunities and execute strategic plans best suited to address its distinct market trends and opportunities.

• ***Enhanced Organizational Agility and Accountability.*** The separation will allow the management teams and dedicated boards of directors with relevant domain expertise of each of Honeywell and Aerospace to devote their time and attention to the development and implementation of corporate strategies and policies that are based primarily on the specific business characteristics of their respective companies. Each company will be able to adapt faster to customers' changing needs, address specific market dynamics, target innovation and investments in select growth areas and accelerate decision-making processes.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

• ***Distinct and Compelling Investment Profiles.*** Investment in one company or the other may appeal to investors with different goals, interests, and concerns. The separation will allow investors to make independent investment decisions with respect to Honeywell and Aerospace and may result in greater alignment between the interests of Aerospace's shareowner base and the characteristics of Aerospace's business, capital structure and financial results.

• ***Customized Capital Structure and Capital Allocation Priorities.*** The separation will enable Honeywell and Aerospace to leverage its distinct strategic focus, growth profile, and cash flow characteristics to optimize its capital structure and capital allocation strategy. This financial flexibility allows each to better pursue future strategic growth opportunities and drive innovation through investment cycles. In addition, after the separation, the respective businesses within each company will no longer need to compete internally for capital and other corporate resources with businesses allocated to another company.

• ***Alignment of Management Incentives with Performance.*** The separation will enable Aerospace to create incentives for its management and employees more closely aligned with its own business performance. Aerospace's equity-based compensation arrangements will more closely align the interests of Aerospace's management and employees with the interests of its shareowners and should increase Aerospace's ability to attract and retain personnel.

The Honeywell Board of Directors also considered a number of potentially negative factors in evaluating the separation, including: the risk that the separation is abandoned and not completed, the risk of volatility in our stock price immediately following the separation due to sales by Honeywell shareowners whose investment objectives may not be met, the time it may take for us to attract our optimal shareowner base, the possibility of disruptions in our business as a result of the separation, the risk that the combined trading prices of Aerospace common stock and Honeywell common stock after the separation may drop below the trading price of Honeywell common stock before the separation, the loss of synergies and scale from operating as one company, the potential inability to realize the anticipated benefits of the separation, the significant amounts of management's time and effort that the separation will require, which may divert management's attention from operating Honeywell's business, the substantial costs incurred in connection with the separation, including accounting, tax, legal, and other professional services costs, costs related to retaining and attracting business and operational relationships with customers, suppliers, employees and other counterparties, recruiting and relocation costs associated with hiring key senior management personnel who are new to Aerospace, tax costs, and costs to separate shared systems and other unforeseen dis-synergy costs, and the terms and conditions of the required regulatory authorizations and consents that are granted, if any, may impose requirements, limitations or costs, or place restrictions on the conduct of business or may materially delay the completion of the separation.

The Honeywell Board of Directors determined that the potential benefits of the separation outweighed the potential negative factors and provided the best opportunity to achieve the above benefits and enhance shareowner value.

Honeywell will pay substantially all of the third-party fees, costs, and expenses associated with the separation incurred before and in connection with the consummation of the separation except for tax obligations, which will be addressed by the Tax Matters Agreement. Each of Honeywell and Aerospace will bear its own third-party fees, costs, and expenses associated with the separation incurred after the separation and distribution.

In determining to pursue the separation, the Honeywell Board of Directors concluded the potential benefits of the separation outweighed the foregoing factors. See the section entitled "Risk Factors" included elsewhere in this information statement.

**Formation of Aerospace**

Aerospace was formed in Delaware as a limited liability company on June 6, 2025, for the purpose of holding Honeywell's Aerospace Business. As part of the plan to separate the Aerospace Business from the remainder of its businesses, in connection with the internal reorganization, Honeywell plans to transfer the equity interests of certain entities that are expected to operate the Aerospace Business and the assets and liabilities of the Aerospace Business to Aerospace prior to the distribution. Prior to the distribution, Honeywell Aerospace LLC will convert into a Delaware corporation and will be renamed "Honeywell Aerospace Inc."

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**When and How You Will Receive the Distribution**

With the assistance of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , the distribution agent for the distribution, (the "distribution agent"), Honeywell expects to distribute Aerospace common stock at &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , Eastern Time, on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, the distribution date, to all holders of outstanding Honeywell common stock as of the close of business on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, the record date for the distribution.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; will serve as the settlement and distribution agent in connection with the distribution and the transfer agent and registrar for Aerospace common stock.

If you own Honeywell common stock as of the close of business on the record date for the distribution, Aerospace common stock that you are entitled to receive in the distribution will be issued electronically, as of the distribution date, to you in book-entry form or to your bank or brokerage firm on your behalf. If you are a registered holder, the distribution agent will then mail you a direct registration account statement that reflects your shares of Aerospace common stock. If you hold your Honeywell shares through a bank or brokerage firm, your bank or brokerage firm will credit your account for the Aerospace shares. Book-entry form refers to a method of recording share ownership when no physical share certificates are issued to shareowners, as is the case in this distribution.

Commencing on or shortly after the distribution date, if you hold physical share certificates that represent your Honeywell common stock and you are the registered holder of the shares represented by those certificates, the distribution agent will mail to you an account statement that indicates the number of shares of Aerospace common stock that have been registered in book-entry form in your name. You will not receive physical share certificates for your shares of Aerospace common stock.

Most Honeywell shareowners hold their common stock through a bank or brokerage firm. In such cases, the bank or brokerage firm is said to hold the shares in "street name" and ownership would be recorded on the bank or brokerage firm's books. If you hold your Honeywell common stock through a bank or brokerage firm, your bank or brokerage firm will credit your account for the Aerospace common stock that you are entitled to receive in the distribution. If you have any questions concerning the mechanics of having shares held in "street name," please contact your bank or brokerage firm.

If you sell Honeywell common stock in the "regular-way" market up to and including the distribution date, you will be selling your right to receive shares of Aerospace common stock in the distribution.

**Transferability of Shares You Receive**

Shares of Aerospace common stock distributed to holders in connection with the distribution will be transferable without registration under the Securities Act, except for shares received by persons who may be deemed to be our affiliates. Persons who may be deemed to be our affiliates after the distribution generally include individuals or entities that control, are controlled by or are under common control with us, which may include certain of our executive officers or directors. Securities held by our affiliates will be subject to resale restrictions under the Securities Act. Our affiliates will be permitted to sell shares of our common stock only pursuant to an effective registration statement or an exemption from the registration requirements of the Securities Act, such as the exemption afforded by Rule 144 under the Securities Act.

**Number of Shares of Aerospace Common Stock You Will Receive**

For every share of Honeywell common stock that you own at the close of business on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, the record date for the distribution, you will receive &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of Aerospace common stock on the distribution date. Honeywell will not distribute any fractional shares of Aerospace common stock to its shareowners. Instead, if you are a registered holder, the distribution agent will aggregate fractional shares into whole shares, sell the whole shares in the open market at prevailing market prices and distribute the aggregate cash proceeds (net of discounts and commissions) of the sales pro rata (based on the fractional share such holder would otherwise be entitled to receive) to each holder who otherwise would have been entitled to receive a fractional share in the distribution. The distribution agent, in its sole discretion, without any influence by Honeywell or Aerospace, will determine when, how, and through which broker-dealer and at what price to sell the whole shares. Any broker-dealer used by the distribution agent will not be an affiliate of either Honeywell or Aerospace and the distribution agent is not an affiliate of either Honeywell or Aerospace. Neither Aerospace nor Honeywell will be able to guarantee any

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

minimum sale price in connection with the sale of these shares. Recipients of cash in lieu of fractional shares will not be entitled to any interest on the amounts paid in lieu of fractional shares.

The net cash proceeds of these sales of fractional shares will be taxable for U.S. federal income tax purposes. See "Material U.S. Federal Income Tax Consequences" for an explanation of certain material U.S. federal income tax consequences of the distribution. If you hold physical certificates for shares of Honeywell common stock and are the registered holder, you will receive a check from the distribution agent in an amount equal to your pro rata share of the net cash proceeds of the sales. We estimate that it will take approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from the distribution date for the distribution agent to complete the distribution of the net cash proceeds. If you hold your shares of Honeywell common stock through a bank or brokerage firm, your bank or brokerage firm will receive, on your behalf, your pro rata share of the net cash proceeds of the sales and will electronically credit your account for your share of such proceeds.

**Treatment of Equity-Based Compensation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**Internal Reorganization**

As part of the separation, and prior to the distribution, Honeywell and its subsidiaries expect to complete an internal reorganization in order to transfer to Aerospace the Aerospace Business that it will hold following the separation. Among other things, and subject to limited exceptions, the internal reorganization is expected to result in Aerospace owning, directly or indirectly, the operations comprising, and the entities that conduct, the Aerospace Business.

The internal reorganization includes various restructuring transactions pursuant to which (1) the operations, assets, and liabilities of Honeywell and its subsidiaries used to conduct the Aerospace Business will be separated from the operations, assets, and liabilities of Honeywell and its subsidiaries used to conduct the Automation Business and (2) such Aerospace Business operations, assets, and liabilities will be contributed, transferred or otherwise allocated to Aerospace or one of its direct or indirect subsidiaries. These restructuring transactions may take the form of asset or equity transfers, mergers, demergers, distributions, contributions and similar transactions, and may involve the formation of new subsidiaries in U.S. and non-U.S. jurisdictions to own and operate the Aerospace Business or Automation Business in such jurisdictions.

Following the completion of the internal reorganization and immediately prior to the distribution, Aerospace will be the parent company of the entities responsible for the operations of the Aerospace Business, and Honeywell will remain the parent company of the entities responsible for the operations of the Automation Business.

**Results of the Distribution**

After the distribution, Aerospace will be an independent, publicly traded company. The actual number of shares to be distributed will be determined at the close of business on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, the record date for the distribution, and will reflect Honeywell shares issued under Honeywell equity compensation awards and Honeywell share repurchases between the date on which the Honeywell Board of Directors declares the distribution and the record date for the distribution. The distribution will not affect the number of outstanding shares of Honeywell common stock or any rights of Honeywell shareowners. Honeywell will not distribute any fractional shares of Aerospace common stock.

We will enter into a separation agreement and other related agreements with Honeywell to effect the separation and to provide a framework for our relationship with Honeywell after the separation, and will enter into certain other agreements, including a transition services agreement, a tax matters agreement, an employee matters agreement, an intellectual property license agreement, and a trademark license agreement. These agreements will provide for the allocation between Aerospace and Honeywell of the assets, employees, liabilities, and obligations (including, among others, investments, property (including intellectual property), and employee benefits and tax-related assets and liabilities) of Honeywell and its subsidiaries attributable to periods prior to, at, and after Aerospace's separation from Honeywell and will govern the relationship between Aerospace and Honeywell subsequent to the completion of the separation. For additional information regarding the separation agreement and other transaction agreements,

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

see the sections entitled "Risk Factors—Risks Related to the Separation and Distribution" and "Certain Relationships and Related Party Transactions."

**Market for Aerospace Common Stock**

As of the date of this information statement, Aerospace is a wholly owned subsidiary of Honeywell. Accordingly, there is currently no public trading market for Aerospace common stock, although a "when-issued" market in Aerospace common stock may develop prior to the distribution. See "—Trading Between the Record Date and Distribution Date." Aerospace intends to apply to list its common stock on Nasdaq under the symbol "HONA." Aerospace has not and will not set the initial price of its common stock. The initial price will be established by the public markets.

Neither we nor Honeywell can predict the price at which Aerospace common stock will trade after the distribution. In fact, the combined trading prices, after the distribution, of the shares of Aerospace common stock that each Honeywell shareowner will receive in the distribution, together with the Honeywell common stock held at the record date for the distribution, may not equal the "regular-way" trading price of the Honeywell common stock immediately prior to the distribution. The price at which Aerospace common stock trades may fluctuate significantly, particularly until an orderly public market develops. Trading prices for Aerospace common stock will be determined in the public markets and may be influenced by many factors. See "Risk Factors—Risks Related to Our Common Stock."

**Incurrence of Debt**

Aerospace expects to complete one or more financing transactions on or prior to the completion of the distribution. In connection with the distribution, Aerospace expects to issue senior unsecured notes with an aggregate principal amount of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion. Aerospace also intends to enter into (i) a senior unsecured revolving credit facility to be available for general corporate purposes in an aggregate committed amount as of the date of the distribution of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion and (ii) a senior unsecured commercial paper program to be available for general corporate purposes up to an aggregate amount at any time outstanding of $ billion. Aerospace expects to use proceeds from the revolving credit facility and commercial paper program for general corporate purposes. Aerospace expects to use the net proceeds from the senior unsecured notes (i) to make a cash distribution to Honeywell, (ii) to pay fees and expenses related to the separation, the distribution, and/or the debt transactions, and/or (iii) for general corporate purposes. Prior to the completion of the distribution, Honeywell may cause Aerospace to issue to Honeywell debt instruments of Aerospace on terms and conditions determined by Honeywell (any such debt instruments, the "Exchange Debt"). Honeywell would use any such Exchange Debt to retire a portion of Honeywell's existing debt in a debt-for-debt exchange transaction. Any such Exchange Debt, if effected, would reduce the aggregate amount of cash distributed to Honeywell. For more information, see "Description of Material Indebtedness."

**Trading Between the Record Date and Distribution Date**

Beginning on or shortly before the record date for the distribution and continuing up to and including through the distribution date, Honeywell expects that there will be two markets in Honeywell common stock: a "regular-way" market and an "ex-distribution" market. Honeywell common stock that trades on the "regular-way" market will trade with an entitlement to Aerospace common stock distributed in the distribution. Honeywell common stock that trades on the "ex-distribution" market will trade without an entitlement to Aerospace common stock distributed in the distribution. Therefore, if you sell shares of Honeywell common stock in the "regular-way" market up to and including through the distribution date, you will be selling your right to receive shares of Aerospace common stock in the distribution. If you own Honeywell common stock at the close of business on the record date and sell those shares on the "ex-distribution" market up to and including through the distribution date, you will receive the shares of Aerospace common stock that you are entitled to receive pursuant to your ownership of shares of Honeywell common stock as of the record date.

Furthermore, beginning on or shortly before the record date for the distribution and continuing up to and including the distribution date, Aerospace expects that there will be a "when-issued" market in its common stock. "When-issued" trading refers to a sale or purchase made conditionally because the security has been authorized but not yet

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

issued. The "when-issued" trading market will be a market for Aerospace common stock that will be distributed to holders of Honeywell common stock on the distribution date. If you own Honeywell common stock at the close of business on the record date for the distribution, you will be entitled to Aerospace common stock distributed pursuant to the distribution. You may trade this entitlement to shares of Aerospace common stock, without trading the Honeywell common stock you own, on the "when-issued" market. On the first trading day following the distribution date, "when-issued" trading with respect to Aerospace common stock will end, and "regular-way" trading with respect to Aerospace common stock will begin.

**Conditions to the Distribution**

The distribution will be effective at &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , Eastern Time, on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, which is the distribution date, provided that the conditions set forth in the separation agreement have been satisfied (or waived by Honeywell in its sole and absolute discretion), including, among others:

• the SEC declaring effective the registration statement of which this information statement forms a part, there being no order relating to the registration statement in effect, and no proceedings seeking such stop order shall be pending before or threatened by the SEC, and this information statement having been distributed to the holders of record of shares of Honeywell common stock;

• the Aerospace common stock to be delivered in the distribution having been approved for listing on Nasdaq, subject to official notice of distribution;

• the receipt by Honeywell of a written opinion from each of Wachtell Lipton and EY, in each case in form and substance satisfactory to Honeywell (in its sole discretion), regarding the qualification of the distribution, together with certain related transactions, as a reorganization within the meaning of Sections 355 and 368(a)(1)(D) of the Code;

• the receipt by Honeywell of an opinion from an independent appraisal firm, in form and substance satisfactory to Honeywell, confirming that (i) following the distribution, Honeywell, on the one hand, and Aerospace, on the other hand, will be solvent and adequately capitalized, (ii) Honeywell has adequate surplus under Delaware law to declare the distribution and (iii) Aerospace has adequate surplus under Delaware law to declare the cash distribution, in each of clauses (i), (ii) and (iii), after giving effect to the cash distribution by Aerospace;

• no order, injunction or decree issued by any governmental entity of competent jurisdiction or other legal restraint or prohibition preventing the consummation of all or any portion of the distribution or any of the related transactions being pending, threatened, issued or in effect and no other event outside the control of Honeywell shall have occurred or failed to occur that prevents the consummation of all or any portion of the distribution;

• the internal reorganization having been effectuated prior to the distribution, except for such steps (if any) as Honeywell, in its sole discretion, has determined need not be completed or may be completed after the effective time;

• the Honeywell Board of Directors having declared the distribution and approved all related transactions, which approval may be given or withheld at its absolute and sole discretion (and such declaration or approval having not been withdrawn);

• Honeywell having elected the Board of Directors of Aerospace, as described in this information statement, effective immediately upon the distribution;

• (i) Aerospace having, and having caused its applicable subsidiaries to have, entered into all ancillary agreements to which it and/or such subsidiary is contemplated by separation agreement to be a party, and (ii) Honeywell having, and having caused its applicable subsidiaries to have, entered into all ancillary agreements to which it and/or such subsidiary is contemplated by separation agreement to be a party;

• the Aerospace financing arrangements being available on terms acceptable to Honeywell, Aerospace having completed the Aerospace financing arrangements and having received the proceeds in respect thereof and

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

Honeywell being satisfied in its sole and absolute discretion that, as of the effective time, it shall have no liability whatsoever under the Aerospace financing arrangements;

• Aerospace having completed the Aerospace cash distribution to Honeywell;

• the actions and filings necessary or appropriate under applicable U.S. federal, state or other securities laws or blue sky laws and the rules and regulations thereunder having been taken or made, and, where applicable, having become effective or been accepted by the applicable governmental entity; and

• no events or developments having occurred or existing that, in the sole and absolute judgment of the Honeywell Board of Directors, make it inadvisable to effect the distribution or would result in the distribution and related transactions not being in the best interest of Honeywell or its shareowners.

Honeywell will have the sole and absolute discretion to determine (and change) the terms of, and whether to proceed with, the distribution and, to the extent it determines to so proceed, to determine the record date for the distribution, the distribution date and the distribution ratio. Honeywell will also have sole and absolute discretion to waive any of the conditions to the distribution. Honeywell does not intend to notify its shareowners of any modifications to the terms of the separation or distribution that, in the judgment of its Board of Directors, are not material. For example, the Honeywell Board of Directors might consider material such matters as significant changes to the distribution ratio and the assets to be contributed or the liabilities to be assumed in the separation. To the extent that the Honeywell Board of Directors determines that any modifications by Honeywell materially change the material terms of the distribution, Honeywell will notify Honeywell shareowners in a manner reasonably calculated to inform them about the modification as may be required by law, by, for example, publishing a press release, filing a current report on Form 8-K or circulating a supplement to this information statement.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**DIVIDEND POLICY**

Following the completion of the distribution, we expect to pay regular dividends to our shareowners, the amount of which will be determined by our Board of Directors and is expected to be in line with our peers. However, the timing, declaration, amount and payment of future dividends to shareowners, if any, will fall within the discretion of our Board of Directors. We will consider several factors when establishing a dividend policy, including our financial condition, earnings, sufficiency of distributable reserves, capital needs of our business, opportunities to retain future earnings to fund business operations for future growth, capital requirements, debt service obligations, legal requirements, regulatory constraints, industry practice and other factors deemed relevant by our Board of Directors. Additionally, the terms of the indebtedness we intend to incur in connection with the separation and distribution and other amounts owed to Honeywell under the Transition Services Agreement, Tax Matters Agreement, Employee Matters Agreement and Trademark License Agreement may limit our ability to pay dividends. There can be no assurance that we will initiate the payment of a dividend to our shareowners in the future or continue to pay any dividend if we do commence the payment of dividends. See "Risk Factors—Risks Relating to Our Common Stock."

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**CAPITALIZATION**

The following table sets forth our cash and cash equivalents and capitalization as of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , on a historical basis and on a pro forma basis, to give effect to the separation and distribution and the transactions related to the separation and distribution as further described under "Unaudited Pro Forma Combined Financial Information," as if they occurred on&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . The information below is not necessarily indicative of what our cash and cash equivalents and capitalization would have been had the separation, distribution and related financing transactions been completed as of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . In addition, the information below may not necessarily reflect what our cash and cash equivalents and capitalization may be in the future. The table below should be read in conjunction with "Unaudited Pro Forma Combined Financial Information," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and our Combined Financial Statements and notes thereto included elsewhere in this information statement.

---

| | | |
|:---|:---|:---|
| **As of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (dollars in millions, except per share amounts)** | **Historical** | **Pro Forma** |
| **Cash** | | |
| Cash and cash equivalents<sup>(1)</sup> | $&nbsp;&nbsp;&nbsp;&nbsp; | $&nbsp;&nbsp;&nbsp;&nbsp; |
| **Capitalization:** |  |  |
| **Indebtedness** |  |  |
| Long-term debt | $&nbsp;&nbsp;&nbsp;&nbsp; | $&nbsp;&nbsp;&nbsp;&nbsp; |
| Total indebtedness |  |  |
| **Equity** |  |  |
| Common stock, par value $0.01 | $&nbsp;&nbsp;&nbsp;&nbsp; | $&nbsp;&nbsp;&nbsp;&nbsp; |
| Additional paid-in capital |  |  |
| Net Parent investment |  |  |
| Accumulated other comprehensive loss |  |  |
| Noncontrolling interest |  |  |
| Total equity |  |  |
| Total capitalization | $&nbsp;&nbsp;&nbsp;&nbsp; | $&nbsp;&nbsp;&nbsp;&nbsp; |

---

__________________

(1)Reflects pro forma cash and cash equivalents as of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . The amount of cash and cash equivalents actually held by Aerospace after giving effect to the separation and distribution, the anticipated debt incurred and the Aerospace cash distribution to Honeywell will also depend upon each of Aerospace's and Honeywell's cash flow prior to the distribution and any adjustments to effect the desired capital structure and capital allocation strategy of each of Aerospace and Honeywell.

Aerospace has not yet finalized its post-distribution capitalization. Pro forma financial information reflecting Aerospace's post-distribution capitalization will be included in an amendment to this information statement.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION**

The following Unaudited Pro Forma Combined Financial Statements consist of an Unaudited Pro Forma Combined Statement of Operations for the year ended December 31, 2024, and an Unaudited Pro Forma Combined Balance Sheet as of December 31, 2024, which were derived from our historical audited Combined Financial Statements included elsewhere in this information statement. The historical audited Combined Financial Statements were prepared on a carve-out basis from Honeywell International Inc.'s historical audited consolidated financial statements which are not included in this information statement. All significant pro forma adjustments and their underlying assumptions are described more fully in the Notes to the Unaudited Pro Forma Combined Financial Statements, which you should read in conjunction with such Unaudited Pro Forma Combined Financial Statements.

The Unaudited Pro Forma Combined Statement of Operations gives effect to the Pro Forma Transactions as if they had occurred on January 1, 2024, the first day of fiscal 2024. The Unaudited Pro Forma Combined Balance Sheet gives effect to the Pro Forma Transactions as if they had occurred on December 31, 2024, our latest balance sheet date. References in this section and in the following Unaudited Pro Forma Combined Financial Statements and the Company's Combined Financial Statements and Notes thereto included in this information statement to "Honeywell" shall mean Honeywell International Inc and references to the "Company" or "Aerospace" refer to the Aerospace Business.

The Unaudited Pro Forma Combined Financial Statements include certain transaction accounting adjustments that reflect the accounting for transactions in accordance with GAAP and autonomous entity adjustments that reflect certain incremental expenses or other charges necessary, if any, to present fairly our Unaudited Pro Forma Combined Statement of Operations and Unaudited Pro Forma Combined Balance Sheet as of and for the period indicated as if the Company was a separate standalone entity. The following Unaudited Pro Forma Combined Financial Statements illustrate the effects of the following transactions (collectively, the "Pro Forma Transactions"):

• the transfer and/or contractual allocation to Aerospace pursuant to the separation agreement, tax matters agreement and employee matters agreement of certain residual corporate and other shared assets and liabilities that were not included in the historical Combined Financial Statements;

• the impact of the transition services agreement and other transaction related agreements between Aerospace and Honeywell and the provisions contained therein (see "Certain Relationships and Related Party Transactions");

• the effect of our anticipated post-separation capital structure, including (i) the issuance of approximately shares, (ii) the incurrence of indebtedness of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion at an estimated weighted average interest rate of % and (iii) the distribution of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion of cash to Honeywell;

• transaction and incremental income and costs expected to be incurred as an autonomous entity and specifically related to the separation; and

• other adjustments described in the Notes to the Unaudited Pro Forma Combined Financial Statements.

The Unaudited Pro Forma Combined Financial Statements have been prepared to include transaction accounting (including the impact of changes to our legal entity structure in anticipation of the separation), autonomous entity and management adjustments to reflect the financial condition and results of operations as if we were a standalone entity. Transaction adjustments have been presented to show the impact and associated cost as a direct result of the legal separation from Honeywell, including the establishment of Aerospace's expected capital structure and funding at the time of separation, and the tax matters agreement. Autonomous entity adjustments have been presented to show the impact of items such as the transition services agreement, lease arrangements with third parties and Honeywell and certain incremental costs expected to be incurred as an autonomous entity. In addition, the Unaudited Pro Forma Combined Financial Statements include a presentation of management adjustments that management believes are necessary to enhance an understanding of the pro forma effects of the transaction. Actual future costs incurred may differ from these estimates.

The Unaudited Pro Forma Combined Financial Statements were prepared in accordance with Article 11 of Regulation S-X, as amended. The Unaudited Pro Forma Combined Financial Statements are subject to the

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

assumptions and adjustments described in the accompanying Notes. The Pro Forma Transactions are based on available information and assumptions we believe are reasonable; however, such adjustments are subject to change. A final determination regarding our capital structure has not yet been made, and the separation agreement, tax matters agreement, transition services agreement, employee matters agreement, and other transaction related agreements have not been finalized. As such, the Unaudited Pro Forma Combined Financial Statements may be revised in future amendments to reflect the impact on our capital structure and the final form of those agreements, to the extent any such revisions would be deemed material.

The Unaudited Pro Forma Combined Financial Statements have been presented for informational purposes only. The Unaudited Pro Forma Information is not necessarily indicative of our results of operations or financial condition had the separation and the related transactions been completed on the dates assumed and should not be relied upon as a representation of our future performance or financial position as a separate public company. The historical Combined Financial Statements have been derived from Honeywell's historical accounting records and include certain corporate overhead and other shared costs which have been allocated to the Company. The allocations have been determined on a reasonable basis; however, the amounts are not necessarily representative of the amounts that would have been reflected in the financial statements had the Company been an entity that operated independently of Honeywell during the periods or at the dates presented. See Note 1 Business Overview and Basis of Presentation and Note 3 Related Party Transactions to the Combined Financial Statements included elsewhere in this information statement for further information on the allocation of corporate and other shared costs. The following Unaudited Pro Forma Combined Financial Statements should be read in conjunction with our historical audited Combined Financial Statements and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included elsewhere in this information statement.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year ended December 31, 2024 (in millions, except per share amounts)** | **Historical** | **Transaction Accounting Adjustments** | **Autonomous Entity Adjustments** | **Pro Forma** |
| &nbsp;&nbsp;&nbsp;&nbsp;Product sales | $8135 | $ | $ | $ |
| &nbsp;&nbsp;&nbsp;&nbsp;Service sales | 7310 |  |  |  |
| **Net sales**  | **15445** |  |  |  |
| Costs, expenses and other |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold | 6441 | <sup>(e)</sup> | <sup>(n)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of services sold | 3502 |  | <sup>(n)</sup> |  |
| &nbsp;&nbsp;**Total cost of products and services sold**  | **9943** |  |  |  |
| &nbsp;&nbsp;Research and development expenses | 567 | <sup>(e)</sup> |  |  |
| &nbsp;&nbsp;Selling, general and administrative expenses | 1426 | <sup>(b)</sup> | <sup>(k), (l), (m),(o)</sup> |  |
| &nbsp;&nbsp;Interest and other financial charges |  | <sup>(f)</sup> |  |  |
| &nbsp;&nbsp;Other expense, net | 141 | <sup>(a), (b)</sup> |  |  |
| **Total costs, expenses and other**  | **12077** |  |  |  |
| **Income before taxes**  | **3368** |  |  |  |
| Income tax expense | 519 | <sup>(h)</sup> | <sup>(l)</sup> |  |
| **Net income**  | **2849** |  |  |  |
| Less: Net income attributable to noncontrolling interest | 32 |  |  |  |
| **Net income attributable to Aerospace**  | $**2817** | $ | $ | $ |
| **Earnings per share:**  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  |  |  | <sup>(j)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  |  |  | <sup>(j)</sup> |
| **Weight average common shares outstanding:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  |  |  | <sup>(j)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  |  |  | <sup>(j)</sup> |

---

See accompanying Notes to the Unaudited Pro Forma Combined Financial Statements.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**UNAUDITED PRO FORMA COMBINED BALANCE SHEET**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2024 (in millions)** | **Historical** | **Transaction Accounting Adjustments** | **Autonomous Entity Adjustments** | **Pro Forma** |
| **ASSETS** | | | | |
| Current assets: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $244 | $<sup>(a)</sup> | $ | $ |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, less allowance of $37 | 2019 | <sup>(f)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 3889 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current contract assets  | 1210 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets. | 308 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets**  | **7670** |  |  |  |
| Property, plant and equipment – net | 2033 | <sup>(c)</sup> |  |  |
| Goodwill | 3028 |  |  |  |
| Other intangible assets – net | 2135 | <sup>(c)</sup> |  |  |
| Deferred tax assets | 485 |  |  |  |
| Other assets | 1494 | <sup>(a), (b), (c)</sup> | <sup>(m)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets**  | $**16845** | $ | $ | **$** |
| **LIABILITIES** |  |  |  |  |
| Current liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $2667 | $<sup>(f)</sup> | $ | $ |
| &nbsp;&nbsp;&nbsp;&nbsp;Current contract liabilities | 1359 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 1793 | <sup>(c), (e)</sup> | <sup>(m)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities**  | **5819** |  |  |  |
| Long-term debt |  | <sup>(a)</sup> |  |  |
| Contract liabilities | 1042 |  |  |  |
| Other liabilities | 1156 | <sup>(c)</sup> | <sup>(m)</sup> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities**  | **8017** |  |  |  |
| **EQUITY** |  |  |  |  |
| Common stock, par value $0.01 |  | <sup>(d)</sup> |  |  |
| Additional paid-in-capital |  | <sup>(d), (e)</sup> |  |  |
| Net Parent investment. | 9048 | <sup>(b), (d), (e), (i)</sup> |  |  |
| Accumulated other comprehensive loss | (312) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity attributable to Aerospace | **8736** |  |  |  |
| Noncontrolling interest | 92 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total equity**  | **8828** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and equity**  | $**16845** | $ | $ | **$** |

---

See accompanying Notes to the Unaudited Pro Forma Combined Financial Statements.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Note 1. Notes to the Unaudited Pro Forma Combined Financial Statements**

***Transaction Accounting Adjustments***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Adjustments reflect interest expense and commitment fees related to indebtedness in an aggregate principal amount of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million that we expect will be incurred by us in connection with the consummation of the separation and that will be used primarily as partial consideration for the Aerospace business that Honeywell is transferring to us in connection with the separation. The adjustments assume that the indebtedness will be comprised of debt securities in an aggregate principal amount of $&nbsp;&nbsp;&nbsp;&nbsp; million, as well as the reclassification of existing Long-term debt of approximately $&nbsp;&nbsp;&nbsp;&nbsp; million and existing finance lease obligations of approximately $&nbsp;&nbsp;&nbsp;&nbsp; million from Other liabilities. The terms of such indebtedness are subject to change and are expected to be finalized prior to the closing of the separation, and the pro forma adjustments may change accordingly. The adjustment also assumes that we will enter into a senior unsecured revolving credit facility in an aggregate committed amount of approximately $&nbsp;&nbsp;&nbsp;&nbsp; billion. We expect to capitalize an additional $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million of issuance costs associated with the revolving credit facility, which will be amortized over the life of the facility agreement. Such issuance costs associated with the revolving credit facility have been included in Other assets in the Unaudited Pro Forma Combined Balance Sheet. The terms of the revolving credit facility are subject to change and are expected to be finalized prior to the closing of the separation, and the pro forma adjustments may change accordingly. See "Capitalization" and "Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources" for additional details.

The following represents adjustments to Long-term debt:

---

| | |
|:---|:---|
| **(in millions)** | **December 31, 2024** |
| Issuance of debt | $ |
| Discount and debt issuance costs  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total pro forma adjustment to Long-term debt**  | **$** |

---

The Other expense, net in the Historical Combined Statement of Operations of Aerospace includes interest income amounting to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million which was reclassified to a separate line Interest and financial charges for pro forma presentation purposes. The following represents adjustments to Interest and financial charges:

---

| | |
|:---|:---|
| **(in millions)** | **Year Ended December 31, 2024** |
| Interest expense on total debt at estimated weighted average rate | $ |
| Amortization of debt issuance costs |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total pro forma adjustment to Interest expense from debt**  | **$** |

---

A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; percent variance in the assumed interest rate on the floating rate indebtedness would change annual interest expense by $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million for the year ended December 31, 2024.

(b)Reflects the impact of our assumption of certain pension assets and liabilities for employees who are eligible for benefits under the U.S. defined benefit pension plan that is currently sponsored by Honeywell. For these employees we intend to sponsor a defined benefit pension plan after the separation with terms and benefits consistent with the existing Honeywell plans. As of December 31, 2024, the total net pension asset to be contributed to us amounted to $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million. The Unaudited Pro Forma Combined Statement of Operations reflects an estimate of service costs, interest costs, and expected return on plan assets for the defined benefit pension plan resulting in a net benefit of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million for the year ended December 31, 2024.

(c)Reflects assets and liabilities that have historically been shared with other Honeywell businesses but will be transferred to Aerospace prior to or concurrent with the distribution. Generally, the shared assets and liabilities within these Honeywell entities to be transferred to Aerospace relate to corporate overhead including

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

information technology assets, certain operational support assets and employee-related liabilities. The table below summarizes specific adjustments to the assets and liabilities.

---

| | |
|:---|:---|
| **(in millions)** | **Year Ended December 31, 2024** |
| Property, plant and equipment, net  | |
| Other intangible assets, net | |
| Other assets | |
| Accrued liabilities | |
| Other liabilities | |

---

(d)Reflects the reclassification of Honeywell's net investment in the Company, which was recorded in Net Parent investment, to Additional paid-in capital and common stock to reflect the assumed issuance of shares of our common stock at a par value of $0.01 per share pursuant to the separation agreement immediately prior to the separation. We have assumed the number of outstanding shares of our common stock based on the number of shares of Honeywell common stock outstanding on December 31, 2024, and a distribution ratio of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of our common stock for every&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of Honeywell common stock. The actual number of shares issued will not be known until the record date for the distribution.

(e)Reflects adjustment for certain employee-related liabilities and compensation expense for employees that have historically been shared with other Honeywell businesses and will be transferred to Aerospace from Honeywell and Honeywell affiliates in connection with the separation. See Note 1 Business Overview and Basis of Presentation to the historical Combined Financial Statements for further discussion of the basis of presentation of Aerospace's historical assets and liabilities. The table below provides further details on the addition of this compensation expense to the Unaudited Pro Forma Combined Statement of Operations:

---

| | |
|:---|:---|
| **(in millions)** | **Year Ended December 31, 2024** |
| Cost of products sold  | $ |
| Cost of services sold |  |
| Research and development expenses |  |
| Selling, general and administrative expenses |  |
| **Total adjustment**  | **$** |

---

(f)Reflects an adjustment to settle related party borrowings, related party receivables and payables in connection with the separation and distribution. Upon separation, the Company will settle borrowings due to related party, related party receivables or related party payables. Accordingly, amounts have been removed from the unaudited pro forma combined balance sheet as of December 31, 2024. Additionally, the related party interest

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

expense has been removed from the unaudited pro forma combined statements of operations for the year ended December 31, 2024.

(g)The additional paid-in capital adjustments are summarized below:

---

| | |
|:---|:---|
| **(in millions)** | **December 31, 2024** |
| Cash payments to Honeywell <sup>(a)</sup> | $ |
| Defined benefit pension <sup>(b)</sup> |  |
| Net Parent investment <sup>(c)</sup> |  |
| Aerospace common stock issuance <sup>(c)</sup> |  |
| Net assets transferred to Aerospace <sup>(d)</sup> |  |
| Deferred taxes <sup>(g)</sup>  |  |
| **Total adjustment**  | **$** |

---

(h)Represents the income tax impact of the transaction accounting pro forma adjustments for the year ended December 31, 2024. This adjustment was primarily calculated by applying the statutory tax rates in the respective jurisdictions to each of the pre-tax pro forma adjustments.

(i)Reflects the deferred tax effects of the pro forma adjustments at the applicable statutory income tax rates and reversal of outside basis differences in certain foreign subsidiaries. Additionally, there is an adjustment to derecognize deferred tax balances related to capitalized research and development that existed as a result of using the separate return method but will not exist in Aerospace's financial statements following the separation.

(j)Pro forma basic and diluted earnings per share and pro forma weighted-average basic shares outstanding for the year ended December 31, 2024 reflect the number of shares of Aerospace common stock which are expected to be outstanding upon completion of the separation (see note (c) above).

***Autonomous Entity Adjustments***

(k)In connection with the separation, Aerospace will enter into a transition services agreement ("TSA") with Honeywell whereby Honeywell will continue to provide Aerospace services at a cost to Aerospace. The cost of the TSA is expected to result in a $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million decrease to the pro forma net income for the year ended December 31, 2024.

(l)Represents the tax impact of the autonomous entity pro forma adjustments for the year ended December 31, 2024.

(m)Reflects the net impact of lease arrangements with third parties and sub-lease arrangements with Honeywell that have been entered into or will be entered into prior to the separation. This adjustment records the operating lease right-of-use assets and related operating lease liabilities based on the estimated present value of the lease payments over the lease term. The income statement impact of this adjustment results in an impact of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million for the year ended December 31, 2024.

(n)Reflects the effect of commercial agreements that Aerospace and Honeywell intend to enter into prior to the distribution. The net change to cost of products and services sold of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million for the year ended December 31, 2024 reflects the impacts of the new commercial pricing in these arrangements applied to historical purchases of products and services from Honeywell.

(o)Reflects the impact of new compensation agreements for new and existing executives of Aerospace. This adjustment of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million is primarily related to an increase in salary, bonus, and stock-based compensation.

(p)Reflects the impact of the trademark license agreement as described in "Certain Relationships and Related Party Transactions" of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million in respect of certain products sales.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***Management Adjustments***

We elected to present management adjustments to the Unaudited Pro Forma Combined Financial Statements and included adjustments necessary for a fair statement of such information.

Following the separation, we expect to incur incremental costs as a standalone entity in certain of our corporate functions (e.g., IT, finance, and legal, among others) as well as certain operational functions (e.g., procurement and supply chain, among others). We received the benefit of economies of scale as a business unit within Honeywell's overall centralized model; however, in establishing these independent corporate and support functions, the expenses may be higher than the prior shared allocation.

As a standalone public company, we expect to incur certain costs in addition to those incurred pursuant to the TSA as described in note (i) and other transaction and autonomous entity adjustments noted above. This includes costs resulting from:

• One-time and non-recurring expenses associated with separation and stand-up of functions required to operate as a standalone public entity. These non-recurring costs relate to system implementation costs; and

• Recurring and ongoing costs required to operate new functions required for a public company, such as external reporting, internal audit, treasury, investor relations, board of directors and officers, stock administration, and expanding the services of existing functions such as information technology, finance, supply chain, human resources, legal, tax, facilities, branding, security, government relations, community outreach, and insurance.

We estimate that we would have incurred approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million of total expenses (including one-time expenses of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million and estimated recurring expenses of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million) for the year ended December 31, 2024, if the separation had occurred on January 1, 2024. We expect to incur these costs beginning at separation, with one-time costs expected to be incurred over a period of 12 to 24 months post separation.

These management adjustments are reflective of the dis-synergies that we expect as a standalone public company. We estimated these dis-synergies by assessing the resources and associated one-time and recurring costs that each function (e.g., finance, IT, human resources, etc.) will require to stand up and operate Aerospace as a standalone public company.

The additional expenses have been estimated based on assumptions that our management believes are reasonable. However, actual additional costs that will be incurred could be different from the estimates and would depend on several factors, including the economic environment, results of contractual negotiations with third party vendors, ability to execute on proposed separation plans, and strategic decisions made in areas such as manufacturing, selling and marketing, R&D, IT, and infrastructure. In addition, adverse effects and limitations including those discussed in the section entitled "Risk Factors" to this document may impact actual costs incurred. We may also decide to increase or reduce resources or invest more heavily in certain areas in the future, which may differentiate the management adjustments even further from actual costs incurred in the future.

The management adjustments presented below are incremental to the autonomous entity pro forma adjustments. Management believes the presentation of these adjustments is necessary to enhance an understanding of the pro forma effects of the transaction. If we decide to increase or reduce resources or invest more heavily in certain areas in the future, that will be part of our future decisions and will not be included in the management adjustments below.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

The tax effect has been determined by applying the applicable statutory tax rates to the aforementioned adjustments for the period presented. These management adjustments include forward-looking statements. See "Cautionary Note Regarding Forward-Looking Statements" for additional details.

---

| | | |
|:---|:---|:---|
| **(in millions, except per share amounts)** | **Basic earnings (loss) per share** | **Diluted earnings** |
| Unaudited pro forma combined net income<sup>(1)</sup>  | $ | $ |
| Net income attributable to noncontrolling interest<sup>(1)</sup> |  |  |
| Unaudited pro forma combined net income attributable to Aerospace <sup>(1)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Management adjustments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) |  |  |
| Unaudited pro forma combined net income attributable to Aerospace after Management adjustments | $ | $ |
| Weighted average Aerospace common shares outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  |  |

---

__________________

(1)As shown in the Unaudited Pro Forma Combined Statement of Operations.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**BUSINESS**

On February 6, 2025, Honeywell announced its plan to spin off the Aerospace Business as an independent, publicly traded company to its shareowners.

Aerospace was incorporated in Delaware for the purpose of holding the Aerospace Business in connection with the separation and distribution described herein. Prior to the contribution of the Aerospace Business to us by Honeywell, which will occur prior to the distribution, Aerospace will have no operations other than those incidental to the separation. The address of our principal executive offices will be 1944 E Sky Harbor Cir N, Phoenix, AZ 85034. Our telephone number after the distribution will be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . We maintain an Internet site at&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . **Our website and the information contained therein or connected thereto are not incorporated into this information statement or the registration statement of which this information statement forms a part, or in any other filings with, or any information furnished or submitted to, the SEC.**

Following the distribution, we expect our common stock to trade on Nasdaq under the ticker symbol "HONA".

**The Company**

We are a leading global tier-1 aerospace and defense supplier of mission critical systems and technologies that enable the production, maintenance, and safe operation of aerospace and defense platforms. Our systems and technologies support original equipment manufacturer ("OEM"), government, defense prime contractor (which we refer to as a "defense prime"), and aircraft operator customers across the Commercial Aviation, Defense and Space, and Business Aviation end markets. Our comprehensive portfolio of market leading systems and technologies are organized into the following segments: Electronic Solutions ("ES"), Engines & Power Systems ("E&PS"), and Control Systems ("CS"). As of June 30, 2025, we employ over 30,000 people across more than 90 engineering, manufacturing, and maintenance, repair, and overhaul ("MRO") facilities globally.

Our proud heritage includes over a century of safe and reliable performance and continuous innovation across every major era of flight. Since inventing the world's first autopilot in 1914, we repeatedly introduced category-defining technologies including the first commercial auxiliary power units ("APUs") in the 1950s, the Ground Proximity Warning System in the 1970s, integrated digital cockpits in the 1990s, combined power and thermal management in the 2000s, electromechanical control actuation in the 2010s and, most recently, the first automated runway safety system that we expect to be transformative for flight operations. Over time, we have leveraged our flight heritage to grow in attractive defense markets where our systems and technologies have been mission critical to U.S. national security and NASA missions for decades. Our long track record, deep industry experience and cutting-edge technology are the reasons many customers, including the largest and most discerning companies across the Commercial Aviation, Defense and Space, and Business Aviation end markets, consistently turn to us to deliver advanced systems that power and protect their platforms.

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Below is a description of net sales by segment, channel, and geographic area for the year ended December 31, 2024. For purposes of the descriptions and reports disclosed in this information statement, the region of Europe, Middle East, and Africa includes India consistent with our internal reporting structure ("EMEA").

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We are a "nose-to-tail" provider and manufacturer of a comprehensive portfolio of differentiated systems and technologies, which drives a large installed base that enables recurring aftermarket services throughout the life of the platforms we support. Our installed base consists of platform- and end market-agnostic systems on approximately 90% of the in-service aircraft fleet and our solutions are specified into the design of over 250 in-production aerospace and defense platforms. Given the demanding certification processes, our installed base typically delivers a recurring revenue stream for the life of the platform that often extends for many decades. From 2022 to 2024, we were awarded contracts that we expect will contribute over $70 billion of revenue during the life of these platforms, which we believe positions us for strong revenue growth.

Our aftermarket services include the provision of new replacement parts, Honeywell-certified used parts, and MRO activities that we provide directly or through operators, channel partners, and independent service providers. In addition, we support our installed base through the development and production of retrofits, modifications, and upgrades ("RMU") to enhance safety, efficiency, reliability and extend the life of in-service aircraft platforms. These RMU are targeted to support our long-cycle platforms which can remain in service for up to 50 years. Our RMU offerings delivered revenue of $1.5 billion in the year ended December 31, 2024, representing 10% of Aerospace revenue, and has grown at an approximately 20% compound annual growth rate since the year ended December 31, 2021. Together, our aftermarket services and RMU offerings drive highly visible, recurring, and high-margin revenue growth.

We prioritize investment in research, development, and engineering to develop technologies that help our customers solve their most essential and complex mission requirements. A core tenet of our coordinated company and customer funded research, development, and engineering investment strategy is to develop common systems and technologies that address applications across Commercial Aviation, Defense and Space, and Business Aviation end markets. We believe this "develop once, deploy anywhere" approach drives efficiency in our manufacturing and supply chain while maximizing return-on-investment ("ROI"). We maintain a robust innovation pipeline focused on end-market agnostic technologies that are aligned with our customers' evolving requirements, including electrification, autonomy, efficient engines, and enhanced safety. We believe our common technology platform and focus on our customers' priorities allows us to win high-value content and contracts with both OEMs and operators.

From 2022 to 2024, we significantly increased our supply chain team and strategically invested more than $1 billion across our supply chain to improve our ability to scale effectively and deliver for our customers. These investments – spanning in-sourcing, dual-sourcing, multi-sourcing, and touch and non-touch labor – significantly improved our

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supply chain resiliency. As a result, we achieved 13 consecutive quarters of double-digit factory output growth through September 2025, reinforcing our ability to deliver high-value, mission critical products reliably and at scale. We leverage digital connectivity and advanced planning tools, including the integration of AI solutions, to enhance supplier collaboration, procurement efficiency, and aftermarket service. In parallel, ongoing investments in smart factory initiatives and selective automation further strengthen our execution capabilities.

In connection with the separation, Honeywell will provide the Honeywell Accelerator operating system tools and processes to us. Honeywell has developed Accelerator, a world-class management and operating framework, over the past two decades, creating a culture of continuous improvement, operational excellence, and disciplined execution. After the separation and distribution, we will continue to use, evolve, and tailor these tools and processes to develop the Honeywell Aerospace operating system for our standalone business. The Honeywell Aerospace operating system underpins our business model and will continue to play a critical role in enabling our integrated commercial and defense supply chains and shared manufacturing capabilities. Our operating system has matured over time, leveraging lean, Six Sigma and digital tools to provide real-time visibility into supply chain, production, and operational performance. Our digital tools provide real-time insight into research, development, and engineering spend and milestone adherence, orders and demand, inventory tracking, production output, and manufacturing stage metrics. By standardizing business processes, aligning the organization around clear objectives, and leveraging these digital tools, the Honeywell Aerospace operating system enhances our ability to drive efficiency, productivity, and performance across all facets of our operations, and ultimately to build a strong foundation for profitable growth, margin expansion and cash generation.

We complement our organic growth with strategic partnerships, strong M&A capabilities and a well-defined inorganic roadmap. In the last two years, we successfully completed and integrated two highly strategic portfolio-enhancing acquisitions: Civitanavi Systems ("Civitanavi") and CAES Systems Holdings LLC ("CAES"), which added new systems and technologies to our capabilities in alternative navigation and electronic warfare and enhanced our European defense footprint. We maintain a robust pipeline of potential acquisition opportunities and apply a disciplined approach to evaluating and executing M&A, which focuses on adding complementary technologies, increasing content on next-generation platforms, strengthening our supply chain, and expanding our customer and geographical reach. For completed acquisitions, we focus on value creation through cross-selling adjacent technologies, improving operating models and global scale, and enhancing aftermarket services performance and RMU development. Following the separation, we expect to continue to prioritize value-enhancing M&A and benefit from our tailored capital allocation as a pure-play tier-1 global aerospace and defense supplier.

**Our Portfolio**

Within each of our segments, we manufacture a comprehensive portfolio of differentiated systems and scalable technologies within each segment that are highly integrated and mission critical to a customer base of OEMs, defense primes, and aircraft operators across our end markets. The following table summarizes selected solutions provided through each of our three market-leading segments:

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Our portfolio's strength lies in delivering integrated systems and technologies, leveraging shared resources and capabilities across different end markets. As a result, we have become a key partner in the design and production of approximately 90% of aircraft currently in service. In the year ended December 31, 2024, no single platform accounted for more than 6% of our revenue. The exhibit below highlights our comprehensive portfolio and complementary capabilities across the Commercial Aviation, Defense and Space, and Business Aviation end markets:

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In Commercial Aviation, we are a trusted partner and supplier of mission critical systems and technologies to major OEMs including Boeing, Airbus, and Embraer. We provide a broad range of systems to the most prolific in-service narrowbody and widebody platforms including the Boeing 737, Airbus A320, Boeing 777/777X, and Airbus A350. In the aftermarket, we maintain longstanding relationships with leading global operators such as Lufthansa, United Airlines, Emirates, and Delta, and support them with high-value aftermarket solutions and services.

In Defense and Space, we are a mission critical supplier of systems and technologies to major U.S. defense primes and international defense companies including BAE Systems, Boeing, Leonardo, Lockheed Martin, Northrop Grumman, and RTX Corporation. We provide a broad range of systems such as navigation, power and thermal management, electro-magnetic defense, and autonomy. Our systems are mission critical to the majority of next generation platforms, including MV-75, F-35, and in-production military helicopters, transport and utility aircraft, fighters, and unmanned platforms where there is a significant growth runway, including Guided Multiple Launch Rocket System (GMLRS), M-1 Abrams, Advanced Medium Range Air-to-Air Missiles ("AMRAAM"), F/A-18, P-8, CH-47, V-22, C-130, F-15, and MQ-9. In the aftermarket, we support our installed base with extensive sole-

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source services, including direct and local maintenance through partnership with U.S. Department of Defense depots and international Ministries of Defense ("MODs").

In Business Aviation, we are a leading supplier of systems and technologies to major OEMs, including Gulfstream, Bombardier, Embraer, Dassault, and Textron. We provide a broad range of systems including engines, APUs, avionics, and satellite communication, to most business jet platforms and especially midsize and above category jets like Challenger, Global, Gulfstream 280-800, Falcon Jets, and Embraer's Praetor. In the aftermarket, we have a strong channel network, partnerships with independent service providers and longstanding relationships with managed fleets and fractional operators that rely on our services to conduct flight operations.

As a global business, our operations can be affected by a variety of economic, industry and other factors, including those described in this section and in the sections titled "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in this information statement.

**Our Industry**

Our business serves the Commercial Aviation, Defense and Space, and Business Aviation end markets globally. These markets consistently outpaced GDP growth in recent years, benefiting from trends such as expanding middle-class populations, increasing consumer wealth, rising demand for domestic and international travel, increasing investments in aerospace and defense platform modernization, growing production rates, and increasing defense budgets. Further, we anticipate that these end markets will benefit from continued innovation, such as increasing electrification, connectivity and data solutions, requirements for additional computing power, and efficiency and safety standards, as well as modernization of legacy defense systems, and development of autonomous aircraft.

Within our end markets, our business serves both OEMs and the global aftermarket channels offering a diversified stream of recurring revenues. OEM revenues are directly tied to production rates across key aircraft programs, such as the Boeing 737, Airbus A320, and Lockheed Martin F-35, Gulfstream family, Challenger 3500, and Embraer Praetor, as well as buyer-directed selectables of equipment enhancements for aircraft purchased from OEMs. In the aftermarket, RMU and MRO related revenues benefit from increasing safety, connectivity, and efficiency standards for aircraft systems globally. The ongoing expansion of global aircraft fleets, increased aircraft utilization rates, and growing demand for advanced avionics, connectivity, and performance-enhancing upgrades drives growing aftermarket demand for RMU and MRO products. Our business' exposure to each of these long-term growth drivers reduces our dependency on any single end market or platform and contributes to greater business resiliency through economic cycles.

***Commercial Aviation***

The Commercial Aviation end market represented 38% of our 2024 revenue and includes a broad range of customers such as commercial aircraft OEMs, airline operators, cargo operators, and RMU and MRO service providers. We estimate that the Commercial Aviation end market is a $85+ billion global industry, with the OEM and aftermarket markets forecasted to grow at a mid-single digit compounded annual growth rate over the next 10 years.

Growth in Commercial Aviation is underpinned by several key structural drivers. Global air passenger volumes have steadily increased and are forecasted to grow further due to population growth, urbanization, rising middle-class consumption, and the expansion of airline networks. In parallel, global GDP growth continues to fuel increased demand for cargo transport as global supply chains continue to expand. Today, Airbus and Boeing maintain a backlog to support over 10 years of new aircraft production, which creates a highly visible growth outlook for both OEM and aftermarket revenues across our business. Further, the aging of aircraft fleets globally drives increasing demand for RMU and MRO services from airline operators, directly benefiting our business. We expect these macroeconomic factors will continue to drive an increase in production rates, orders for new aircraft, and demand for aftermarket modernization and enhancements.

Evolving technology and regulatory trends also impact the Commercial Aviation end market. Increasing demand for electrification, thermal management, and connected data solutions in commercial aircraft is expected to drive growth

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opportunities for aerospace suppliers. Additionally, increasing regulatory pressure to reduce emissions and improve fuel efficiency accelerates the need for more advanced aviation solutions. Thermal management systems, which enhance cooling and control of aircraft, are a key area for growth, providing increased fuel efficiency, extended range capabilities, and longer lifespan for aircraft. Broader adoption of connectivity technologies at our customers provides opportunities for increased safety and efficiency. Demand for greater connectivity is leading to the integration of advanced communications, data analytics, and software-enabled services. We believe our product portfolio, strong flight heritage, existing commercial relationships, and new product development capabilities position us to capture growth from these evolving trends.

***Defense and Space***

The Defense and Space end market represented 40% of our 2024 revenue and includes products and services used for military and security applications by national governments and defense agencies. Within Defense and Space, our business equips and sustains over 150 platforms across fighter aircraft, rotorcraft, and other manned and unmanned defense systems. We believe Defense and Space represents a total addressable market of approximately $57 billion globally, driven by the large defense primes, international defense OEMs, and MODs. International demand is increasing, with defense spending in the North Atlantic Treaty Organization ("NATO"), India, South Korea, Japan, and Australia growing to support military modernization and rearmament initiatives. Increases in NATO defense spending to meet targets equal to 5% of annual GDP represent a significant growth opportunity for our business.

Growth of the defense and space industry is reflective of broader geopolitical conditions and changes in global defense budgets. While ongoing geopolitical conflicts have led to increased spending by the United States and other allies in the near term, we expect long-term demand will be driven by global military modernization initiatives with a focus on conflict deterrence through military strength. In addition, we expect our customers will demand innovative technologies delivering reliable, quick-to-deploy, and lower-cost solutions that can be built in greater quantities. Further, we expect increased demand for the development of advanced space defense systems and focus on space superiority. We believe our flight heritage, history of successful customer partnerships, and continuous investment in advanced technologies, position us to capture future growth opportunities across this end market.

***Business Aviation***

The Business Aviation end market represented 22% of our 2024 revenue and includes private individuals, corporations, and government entities that operate aircraft for business or personal use. Major OEMs include Gulfstream, Bombardier, Embraer, Dassault, and Textron. Though we design and manufacture components for every major class, model, and size of business aircraft, including light, medium, and heavy jets, we are focused on the higher-value mid- and full-size categories of these aircraft. We believe Business Aviation represents a total addressable market of approximately $25 billion globally, where we serve OEMs, fleet operators, and aftermarket RMU and MRO service providers. We expect this end market to grow at a mid-single digit compounded annual growth rate over the next 10 years, supported by positive tailwinds related to an increase in OEM production rates, growth in private air travel, RMU and MRO demand for aging aircraft, and increased flight efficiency and safety requirements.

In addition to the growth drivers in Commercial Aviation, growth in Business Aviation is driven by increasing global personal wealth and corporate financial performance. Positive economic conditions enable increased purchases of business aircraft by fleet operators, corporates, and individuals who constitute the market's main end customer base. Additionally, we believe growth in fractional business jet fleet operators has increased the addressable market for Business Aviation, making private jet travel more affordable and accessible to consumers and increasing our market growth opportunity.

***Industry Competitors***

We compete against a diversified universe of companies across end markets, geographies, and product categories. Each of our Electronic Solutions (ES), Engines and Power Systems (E&PS), and Control Systems (CS) segments face competition across their products and end markets from established companies.

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*Electronic Solutions*

Competitors across our various business lines in the ES segment include BAE Systems, Collins Aerospace (division of RTX Corporation), Garmin, L3Harris, Safran, Starlink, Teledyne, and Thales.

*Engines & Power Systems*

Competitors for our E&PS segment include GE Aerospace, Pratt and Whitney (division of RTX Corporation), Rolls Royce, Safran, and Williams.

*Control Systems*

Competitors for our primary offerings in the CS segment include Collins Aerospace (division of RTX Corporation), Liebherr, Parker Aerospace Systems (division of Parker Hannifin), Safran, and Woodward.

In each of these segments, we believe that we maintain a distinct competitive advantage through our design and engineering expertise, systems-level solutions, and technology innovation in key growth categories and are well positioned to capture growth from future opportunities with our customers.

**Our Competitive Strengths**

We believe that we are well positioned in attractive end markets with several competitive strengths, including:

***Leading global tier-1 aerospace and defense supplier to OEMs, defense primes, and aircraft operators across all major aviation and defense end markets, enabled by a comprehensive portfolio of differentiated systems and technologies***

We are a tier-1 global aerospace and defense supplier, providing mission-critical systems and innovative technologies to the largest and most discerning customers across the aerospace, defense, and space end markets. We estimate that our systems are installed on approximately 90% of the in-service aerospace fleet and directly integrated into the design of over 250 in-production platforms across Commercial Aviation, Defense and Space, and Business Aviation.

Our comprehensive portfolio of mission-critical systems and technologies reflects years of customer collaboration and deep platform knowledge, leading to long-term customer relationships. These systems have high technical complexity, are essential to the production and maintenance of aerospace and defense platforms, and help ensure the safe, efficient, and reliable operation of aircraft, rotorcraft, and spacecraft. Our leading position as a "nose-to-tail" provider and ability to produce differentiated systems and technologies is underpinned by our extensive portfolio of over 9,000 active patents, deep bench of engineers and technologists, and more than 90 manufacturing, engineering, and MRO facilities globally. We believe that our leading, global brand name and operational footprint, alongside our expertise and track record for safety, reliability, and innovation make us a critical development partner and supplier of choice for aerospace customers across all end-markets.

***Well positioned to capitalize on a multi-year growth cycle in aerospace and defense production and resulting need for aftermarket support, with incremental growth opportunities from RMU that support existing fleets***

We see significant opportunities for growth across our segments from the ramping production rates of new aircraft, increasing flight activity, increasing global defense spending, and RMU opportunities that are not tied to flight hours or aircraft build rates. We believe our positioning on in-production platforms, investments in electrification, autonomy, connectivity, enhanced safety, and next-generation defense, including a robust RMU pipeline, will position us to realize above-market growth.

In Commercial Aviation, we are a close partner and critical supplier to both Airbus and Boeing, with significant sole-sourced and selectable content on their current generation narrowbody and widebody aircraft. Airbus and Boeing are estimated to have over 10 years of production in backlog, and their in-production aircraft will likely remain in service longer than prior generations of commercial aircraft.

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In Defense and Space, we are a critical supplier to many next-generation and in-production military spacecraft, aircraft, rotorcraft, fighters, and unmanned platforms. We believe we have differentiated capabilities with respect to augmented / anti-jamming navigation, power and thermal management, and electronic warfare that position us well within higher growth segments. Additionally, we believe we are well positioned to benefit from international governments' focus on defense spending, particularly in European and Asian markets where our footprint and non-export-controlled systems allow us to support demand for localized production. Our international defense revenue achieved double-digit annual growth since 2019 and as of 2024 represents approximately 25% of our total Defense and Space revenue.

In Business Aviation, we benefit from record high fleet levels and strong growth in the midsize and above categories from Bombardier, Embraer, Dassault, Cessna, and Gulfstream, where we supply engines, avionics, environmental control systems, satellite communications, and APUs.

We are focused on revenue opportunities associated with our large base of installed, highly engineered aerospace systems and technologies. Because of the significant technological differentiation in our products and the demanding certification processes required in the industry, our customers provide us with a consistent flow of aftermarket service business. Systems and technologies on aerospace and defense platforms typically require ongoing replacement and maintenance over service lives in excess of 30 years, which creates consistent long-term opportunities for our business, including growth from RMU. We believe our broad diversification across segments and end markets reduces concentration risk and contributes to the stability of our financial performance.

***Leading technology capabilities that can be utilized to support multiple platforms across verticals***

Our business model focuses on developing systems and technologies to solve technically complex problems facing the aerospace and defense industry in a manner that allows for use across multiple applications, aircraft, and end markets. We invest, often jointly with our customers, to develop and deploy new systems and technologies for the production and maintenance of their platforms where we are often the sole supplier. As a result of our product differentiation and research, development, and engineering model, our systems and technologies support higher-value solutions and generate a durable stream of recurring aftermarket revenue over time.

We operate with a "develop once, deploy anywhere" mindset, shortening the timeline for new product introductions, improving ROI on research, development, and engineering spend and increasing the addressable market for these innovative solutions. Our focus lies in continuously investing in common technologies and applying these across multiple applications, aircraft, rotorcraft, spacecraft, and end markets – driving scale and efficiency in our manufacturing and supply chain while maximizing ROI. We believe our significant intellectual property and in-house expertise gives us a strong competitive advantage in developing these technologies with our customers. The table below includes a few selected examples where core systems and technologies are built upon to serve multiple platforms across end markets:

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***Strong innovation pipeline aligned with customers' future requirements***

We prioritize investment in new systems, RMU and breakthrough technology initiatives ("BTI") that increase our content on current generation platforms, support next generation platforms, enable access to new markets, and increase aftermarket opportunities. Our investment approach seeks to balance support for current platforms as well as new systems that are aligned with key industry themes and our customers' future requirements.

In the last three years we invested over $1.5 billion in internally funded research, development, and engineering efforts. The exhibit below highlights efforts to address key industry themes and our customers' future requirements:

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***Highly differentiated operating system that promotes strong organic growth, margin expansion, and cash flow***

The Honeywell Aerospace operating system, leveraging the Honeywell Accelerator operating system, is a comprehensive management and operational framework based off decades of maturity to drive growth and long-term competitive advantages across our global operations through increased efficiency, manufacturing productivity, value-based pricing, customer problem solving and innovation. Our operating system also fosters a culture of continuous improvement, operational excellence, best practices and disciplined execution by helping to standardize business processes and aligning our organization around clear objectives.

We apply our operating system within our Integrated Supply Chain ("ISC") to drive operational excellence, improved visibility, and consistency across all manufacturing sites enabling greater execution discipline and smarter and safer enterprise-wide decision-making.

Our application of our operating system also includes our robust Health, Safety, and Environmental ("HSE") Management System, which is built on internationally recognized standards, including ISO 14001 and ISO 45001. It provides a structured and scalable framework for identifying and managing HSE risks, ensuring regulatory compliance, and driving continuous improvement across all operations.

Some operational proof points of applying the Honeywell Accelerator operating system, the predecessor of our operating system, include:

• Consistently low, industry leading, Total Case Incident Rate ("TCIR") for over a decade. In 2024, our TCIR was one-eighth the aerospace sector average.

• Focused supplier recovery initiatives with suppliers responsible for over 30% of overall supply, resulting in a 34% increase in supplier receipts from 2023 to 2024.

• More than 25 Kaizens executed with key mechanical machining suppliers in the last two years, resulting in a 25% increase to uptime.

• Immersive workforce training, smarter tooling, and reimagined shop floor design, resulting in over 30% YoY improvement in engine output (in the year-to-date period from January 2025 to August 2025) for our HTF7000 engine at our Phoenix, AZ location.

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***Resilient, well-invested supply chain and production system ready to deliver on the next phase of our growth***

From 2022 to 2024, we significantly increased our supply chain team and strategically invested more than $1 billion across our supply chain to improve our ability to scale effectively and deliver for our customers. These investments – spanning in-sourcing, dual-sourcing, multi-sourcing, and touch and non-touch labor – significantly improved our supply chain resiliency. As a result, we achieved 13 consecutive quarters of double-digit factory output growth through September 2025, reinforcing our ability to deliver high-value, mission critical products reliably and at scale. We leverage digital connectivity and advanced planning tools, including the integration of AI solutions, to enhance supplier collaboration, procurement efficiency, and aftermarket service. In parallel, ongoing investments in smart factory initiatives and selective automation further strengthen our execution capabilities.

Looking ahead, we plan to build on this momentum through targeted capacity expansion as well as standardization and optimization initiatives to support new product introductions and increased demand. We are pursuing a multifaceted approach to transforming our supply chain and production system, utilizing process and digital solutions as crucial enablers across four key areas:

• Talent & people: Upskill and enhance talent while shifting to a more data-driven and analytical supply management model with a focus on driving productivity and efficiencies.

• Supply resiliency: Improve the resiliency of our supply base to ensure stable delivery and cost by focusing on sourcing excellence and improving supplier readiness with appropriate mix of insourcing and multi-sourcing to grow capacity, consolidate fragmented categories and standardize components.

• Honeywell Aerospace operating system: Implement lean principles to streamline processes and eliminate waste, conduct thorough assessments of production capacity and prioritize funds to upgrade or replace aging equipment with more reliable, modern alternatives.

• Planning excellence: Strengthen professional planning organization by fully utilizing best-in-class digital tools which are expected to automate the majority of today's planning workload with the use of AI predictive analytics.

By focusing on these areas, we aim to enhance operational efficiency, foster a skilled workforce, and ensure a resilient supply chain capable of adapting to industry demands. In parallel, our investments in processes and digital capabilities, such as smart factory initiatives and automation, are intended to further strengthen our execution capabilities.

***Experienced management team and performance-driven corporate culture***

We have a world-class leadership team and a deep bench of talent that is passionate about aerospace, technology, and advancing next generation capabilities for the world's leading aerospace OEMs, defense primes, and aircraft operators. We believe our people and unique culture are significant competitive advantages that help drive our operational efficiency and innovation, allowing us to create value for our customers and our shareowners in any market environment.

Our leadership team has a proven track record of expanding our portfolio, strengthening our relationships with key OEMs and customers, and implementing operational initiatives that have been transformational for our supply chain. The average industry experience across our senior leadership team is over&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; years and includes experience at Honeywell and across the broader aerospace and defense industry.

In addition, we maintain a performance-driven culture with a focus on safety, reliability, continuous improvement, and driving innovation. Through decades of cultivation, we have built an extensive ecosystem of tenured technologists with deep aerospace expertise, who help to drive innovation across the organization. Our team is deeply engaged, committed to our high-performance culture, and empowered to drive the organization toward the future of flight.

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**Our Growth Strategies**

Our core strategy is to continue building on our position as the world's leading independent, global supplier of mission critical systems and technologies for OEMs, defense primes, and aircraft operators across the aerospace and defense end market. Our plan to realize above-market growth is built upon the following strategies:

***Development and production of new systems and technologies that increase our position on next generation platforms and grow our installed base***

We focus on developing and launching differentiated systems and technologies that can be utilized across multiple platforms and end markets. Through our close customer relationships, we can anticipate future needs and often partner with our customers on the development of solutions. Select innovations for our Commercial Aviation, Defense and Space, and Business Aviation customers that are expected to contribute to our near-term growth include:

• **Honeywell Anthem Integrated Avionics:** Advanced cockpit system with a high level of connectivity, an intuitive interface similar to smart devices, and a customizable design that can be tailored for diverse types of aircraft, including commercial, business aviation, defense, and advanced air mobility ("AAM") platforms.

• **Honeywell Assure Advanced Actuation:** Modular and scalable electromechanical flight actuation enabling critical flight control for diverse types of aircraft, including AAM, military aircraft, business jets, as well as missile applications, including the Guided Multiple Launch Rocket System (GMLRS), for which production levels are expected to double by 2028.

• **Honeywell Attune High-Density Cooling:** Advanced cooling technology that leverages high-speed centrifugal compressors, next generation refrigerants and power electronics to cool heat-generating electronic components, batteries, and cabins on all forms of aircraft, including AAM, commercial aircraft, military aircraft, business jets.

• **Augmented / Anti-Jamming Navigation Systems:** Alternative navigation technology enabling the use of sensors to augment and improve GPS and other inertial navigation data sources for commercial aircraft, business jets, military aircraft, AAM vehicles, missiles, and other guided munitions.

• **HTF Engine Derivatives:** New derivatives that increase the performance and efficiency of our HTF7000 engine for super-midsize business aircraft.

• **Electrification (new APUs; power generation):** New derivatives of existing APUs and new power generation approaches that offer improved efficiency for in-production commercial narrowbody aircraft and AAM applications.

• **Safety Innovations:** Continuous surveillance systems for runway and taxiway areas to detect potential conflicts and provide flight crew situational awareness and time to recognize hazards and take corrective actions via our Surface Alert ("SURF-A") Runway Awareness and Advisory System and Smart Landing systems.

***Incremental aftermarket growth through new customers, expanded MRO offerings and RMUs***

We supply aftermarket products and services to a large and growing installed base, which today consists of approximately 90% of in-service aircraft. We believe that new customers, expanded MRO offerings and our RMU offerings represent a significant and growing opportunity given the increasing age of in-service fleets and heightened customer focus on efficiency, autonomy and extending platform life across end-markets.

We focus on opportunities to generate profitable business from new customers and expand support to existing customers by utilizing our broad capabilities, extensive engineering expertise and reputation for quality and performance. Our strategy to achieve this relies on digitization, evolving service models, new value-added offerings, additional licensed channel partners, and partnerships with defense ministries to deliver direct, local maintenance support. We have a robust pipeline and launched several impact initiatives, including MRO network optimization,

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MRO campaigns targeting new value-added service opportunities, and further alignment of our business jet service model to support fractional operators and larger cabin business jet categories.

We have a robust pipeline of RMU solutions underpinned by strong demand from customers across end-markets seeking to enhance their in-production platforms and defer capital-intensive fleet replacements by extending platform life through upgrades. Some of our most prevalent RMU solutions include Ensemble digital engine monitoring, intuitive avionics and situational awareness tools including Anthem, SURF-A, SmartLanding / SmartRunway, Landing Runway Taxi Lights, hardened navigation systems including anti-jamming and non-GPS alternatives, as well as high-speed onboard satellite connectivity. Our RMU solutions revenue increased at an approximately 20% compound annual growth rate since the year ended December 31, 2021 to $1.5 billion, representing 10% of total Aerospace revenues. Much of this growth is driven by software upgrades, enabling us to realize higher margins on our incremental growth.

***Growing our capabilities to support national defense priorities globally***

We believe that the global threat environment and increased prioritization of defense spending has resulted in sizable and growing demand in international defense markets for our defense offerings, particularly for non-export-controlled systems and local capabilities that we believe we are well positioned to provide. Our commercially developed, off-the-shelf technologies are well positioned for direct commercial sales to international defense primes and MODs. We have made substantial, decades-long investments in international engineering resources at our engineering centers in the Czech Republic, the United Kingdom, Poland, and India. We provide our international customers with critical defense products such as navigation, electronic warfare, power and thermal management, and unmanned aerial vehicles.

We focus on advancing a local-for-local strategy to support international defense priorities and regional self-reliance, particularly within the European Union. With over 1,000 engineers based in the Czech Republic and Poland, we are developing technologies in-region for in-region use, with a focus on emerging technologies for critical defense applications. Our recent acquisition of Civitanavi, an Italy-based inertial navigation provider with domestic manufacturing capabilities, further strengthens this approach. Together, our local development capabilities and regional manufacturing presence provide a strong foundation for future growth in international defense markets. We believe this strategy enhances our competitiveness, supports customer proximity, and enables compliance with national sovereignty requirements, particularly in the European Union.

Our international defense revenue achieved double-digit annual growth since 2019 and as of 2024 represents approximately 25% of our total Defense and Space revenue. In the year ended December 31, 2024, we secured international defense contract wins representing more than $2 billion in expected revenue over the life of such contracts, which we believe underscores the success of our international strategy and strength of our defense-orientated solution offering.

***Expansion into attractive adjacencies through investment in breakthrough technology initiatives***

We have a large pipeline of initiatives developed in partnership with customers to solve their most complex future requirements. Our BTIs are developed collaboratively with our customers, allowing us the ability to share development costs, and represent systems and technologies that are outside our current market footprint but are closely aligned with our core capabilities. We believe that these investments will continue to be a key source of industry-transforming technology and an effective vector through which we will seek to access new markets and augment growth alongside our customers.

We typically invest approximately 10% of our research, development, and engineering in advanced technologies with the aim of solving the industry's future mission requirements, typically looking out 10 to 20 years ahead with our customers. We have long anticipated key industry trends such as autonomy, electrification, next generation defense, increased safety, and unmanned systems, and are actively developing innovative solutions applicable to multiple platforms across our end markets. Select BTIs that we expect to generate meaningful revenue over the next three years include directed energy, 360 display, quantum communications, and navigation and sensors, which include LiDAR HALAS, atmospheric sensing, precision timing, and micro-electromechanical systems ("MEMS") cryptography.

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***Disciplined acquisition strategy to support growth goals***

Disciplined acquisitions and strategic partnerships are a key part of our business model and growth strategy. We regularly identify and evaluate a robust pipeline of acquisition targets across our segments as we seek to enhance our organic growth, add new systems and technologies, increase content on new platforms, enhance our ability to source critical parts, and provide access to new geographies.

We have a successful track record of acquiring businesses including the recent acquisitions of Civitanavi and CAES, which added new systems and technologies to our capabilities in alternative navigation and electronic warfare and enhanced our European defense footprint. We also have demonstrated our ability to successfully integrate new facilities, customers, and programs, as well as realize significant synergies with our existing business.

As a standalone company, we expect our strong well-capitalized balance sheet and independent capital allocation policy will enhance our ability to effectively pursue acquisition opportunities.

**Our Reported Segments**

We operate through three segments, reported as Electronic Solutions, Engines & Power Systems, and Control Systems. Within each of our segments, we manufacture a comprehensive portfolio of differentiated systems and scalable technologies that are highly integrated and mission critical to our customer base of OEMs, defense primes, and aircraft operators:

***Electronic Solutions ("ES") Segment***

Our ES segment, which represented 39% of revenue for the year ended December 31, 2024, is a leading supplier of aerospace electronic systems and technologies. The ES product portfolio is organized into five offerings: Avionics, Navigation and Sensors, Services and Connectivity, Electromagnetic Defensive Solutions (formerly CAES), and Space. Our products include avionics, radars, flight management systems, precision inertial navigation systems, high-performance space components, and solutions that enable complex sensing protection, targeting and communications operations in the electromagnetic spectrum, and electronic warfare solutions, as well as solutions that focus on in-flight connectivity, cockpit safety, defense radiofrequency, and counter unmanned aerial systems.

ES provides the following offerings: Avionics, Navigation and Sensors, Services and Connectivity, Electromagnetic Defensive Solutions, and Space.

*Avionics Offering*

We are a leading provider of integrated cockpit, display systems, flight controls, flight management systems ("FMS"), navigation and voice radios, radar and surveillance systems to aviation platforms across aerospace and defense markets. Defense primes, OEMs and operators choose our Avionics because of the breadth of systems in our portfolio, our connectivity-based software, and the level of integration enabling full flight deck solutions.

Key products and solutions include:

• **Integrated Avionics:** Integrated suite of subsystems that provide essential information and control for pilots including Epic Integrated Flight Deck and Honeywell Anthem, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ **Cockpit Displays** which present a clear view of vital aircraft systems.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ **Control Display Units** which help pilots safely and effectively navigate flight paths and monitor traffic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ **Flight Management Systems** which handle flight planning, navigation and flight performance functions, helping pilots fly the safest and most efficient profile.

• **Radio and Datacom:** Suite of navigation and voice radios that help ensure reliable pilot-to-ground and aircraft-to-aircraft communication.

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• **Traffic and Surveillance:** Systems and technologies that provide critical in-flight information to make flying safer and easier.

• **Weather Radar:** Systems to enable safe and efficient pilot navigation in challenging conditions and include advanced offerings such as IntuVue Weather Radar, and lightning sensor systems.

• **Flight Controls (Fly-by-wire):** Advanced flight control solutions including compact fly-by-wire systems that remove mechanical linkages and are lighter weight and highly reliable, ideal for electric / hybrid aircraft and AAM vehicles.

*Navigation and Sensors Offering*

We are a leading provider of navigation and sensing systems across aerospace and defense end markets, and include air data modules, inertial measurement and reference units, inertial navigation systems, surface and marine navigators, vision navigators, atmospherics sensors, and precision timing systems. OEMs and operators choose our Navigation and Sensors because they offer integrated products that incorporate advanced software, fuse multiple sensors to provide highly accurate position information, and are certified to the highest design assurance levels in the industry.

Key products and solutions include:

• **Air Data Modules:** Calculates air data parameters and provides temperature-corrected pressure information digitally to air data inertial reference units, flight controls or modular avionics units.

• **Air Data Inertial Reference Systems:** Provides customers with digital gyros for high system reliability and performance with reduced operation and maintenance.

• **Inertial Navigation Systems:** Highly accurate systems that integrate inertial sensors and other sources including global navigation satellite systems to provide operators with jamming resistant, highly reliable and accurate position information.

• **Surface and Marine Navigators:** High-performance navigation systems including LASEREF and TALIN subsystems as well as subcomponents such as accelerometers and ring laser gyroscopes that are used for gyro compassing.

• **Alternative Navigation:** Alternative navigation technology that enables use of live camera feeds (optical and/or IR), LiDAR, radar, radios and star-trackers to augment and improve inertial navigation system data, particularly in GPS-denied environments.

*Electromagnetic Defensive Solutions ("EDS") Offering*

We are a leading provider of systems that enable complex sensing, protection, targeting, and communications operations in the electromagnetic spectrum across national security missions, warfighting domains, and Counter-Unmanned-Aircraft-System. In EDS, we employ a vertically integrated model and design-for-manufacturability expertise, securing early-phase content that often evolves into high-margin, IP-rich positions as the design authority.

Defense customers choose EDS because we deliver agile and scalable solutions across the entire program lifecycle for electromagnetic control solutions. EDS's consistent program execution drove scope expansion across core franchise programs, including SPY-6, F-35, and AMRAAM, and has been directly cited by customers as a key reason for new and expanded awards. Our deep bench of foundational radio frequency technologies, like power amplification, wideband systems, and size, weight, and power ("SWaP") optimization, enables rapid adaptation, integration and deployment across platforms. Our broad portfolio of electromagnetic capabilities mirrors the needs of defense prime customers and has positions on nearly every U.S. military tactical fighter, rotorcraft, missile system, and many of the top land system platforms.

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Key products and solutions include:

• **Defense Systems:** Advanced radio frequency signal management and conditioning applications for airborne, maritime and space platforms.

• **Missile and Sensor Systems:** High-volume production of radio frequency modules optimized for SWaP requirements of missile target acquisition and tracking, proximity sensors, communications, and telemetry systems.

• **Mission Systems:** Development, production and test of complex array, power amplification, and radio frequency signal management sub-systems for airborne and maritime platforms.

*Space Offering*

We are a leading provider of radiation-hardened and radiation-tolerant inertial systems, momentum controls, microelectronics and payload solutions to defense and commercial customers. We believe our customers choose our space systems because of their differentiated performance including radiation hardening capabilities, reliability and flight performance, and track record unmatched by our peers. We are also an industry leader in developing space systems and payloads for strategic and restricted markets.

Key products and solutions include:

• **Restricted Space:** Navigation, Reaction Wheel Assembly ("RWA"), Control Momentum Gyroscopes, Bus and data handling electronics, radiation-hardened microelectronics, radiation testing.

• **Microelectronics:** Radiation-hardened processors, static memory, non-volatile memory, Application Specific Integrated Circuits that survive natural and man-made radiation.

• **Human Space Solutions:** Leading avionics, thermal control, mechanisms, environmental control, and life support systems with 100% mission success.

• **Global Satellite Solutions:** Advanced optical payloads, quantum payloads, navigation, RWA, radio frequency payloads, navigation, space situational awareness, specialized science payloads.

*Services and Connectivity Offering*

We provide a variety of solutions focused on cockpit safety, in-flight connectivity, defense radiofrequency, and navigation and terrain database services.

Key products and solutions include:

• **Satellite Communications:** Enables broadband Wi-Fi for passengers, equipment, and airtime services for customers in Commercial, Business Aviation, and Defense and Space end markets with fast speeds and consistent, global coverage.

• **Flight Recorders:** Crucial equipment that captures cockpit audio, including crew conversations and sounds with ability to withstand extreme conditions to preserve data during accidents.

• **Navigation Data and Services:** Includes large datasets maintained to enable peak performance from our navigation systems with fast and easy updates direct to flight management systems.

*Electronic Solutions Customers*

For the year ended December 31, 2024, our top five ES customers accounted for 36% of total segment revenue.

***Engines & Power Systems ("E&PS") Segment***

Our E&PS segment, which represented 31% of revenue for the year ended December 31, 2024, is a leading supplier of propulsion systems, APUs, and electric power solutions. The E&PS product portfolio, which is balanced across

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two offerings – Engines and Power Systems, includes propulsion engines, small and military APUs, narrowbody and widebody APUs, electric power systems, and fuel cells and adjacencies.

Our E&PS segment is focused on providing class-leading systems in every category that we serve, and we believe our offerings represent leaders in their respective fields. Our HTF7000 and TFE731 engines have leading positions on midsize and super-midsize business jet aircraft. Our large APUs are on all in-production narrowbody platforms and all but one in-production widebody platforms. Our small APUs enjoy similar leadership positions on business aviation and military aircraft platforms. These systems are designed to operate for over 30 years, contributing to a large installed base and attractive tail of aftermarket services opportunity given the highly complex nature of these systems. Production of our engines and APUs is done in a shared facility, allowing for a robust supply chain and streamlined operations due to the commonalities between these two product families.

E&PS provides the following offerings: Engines and Power Systems.

*Engines Offering*

Our key Engines products and solutions include:

• **Turbofan Engines:** TFE731 and HTF7000 turbofan engines which power a wide range of business jets including Bombardier's Challenger 300/350, Embraer's Legacy 450/500 and Praetor 600, and Gulfstream's G280. We also manufacture the F124 and F125 turbofan engines designed for military trainers and light fighters.

• **Turboshaft Engines:** T55, CTS800, and HTS900 turboshaft engines which power military and civilian helicopters including the CH-47 Chinook and AS 350.

*Power Systems Offering*

We are a leading provider of efficient and highly reliable APUs and Electrical Power Systems. The APU is an auxiliary power unit responsible for delivering electrical power to aircraft systems before engine start or on an emergency basis. Our APUs provide industry-leading reliability, efficiency and have an established track record with more than 95,000 deliveries and 36,000 units in-services today. We believe our Power Systems technologies are differentiated from our competitors based on our deep expertise spanning 50 years of power generation development, our track record for reliability and our relentless focus on innovation, which includes extensive strategic partnerships across industries. Our vertically integrated approach ensures stability in our supply chain and access to proprietary intellectual property, enabling us to deliver highly efficient and reliable APUs, advanced high-voltage direct current systems and advanced controls that support growing demand for power on increasingly electrified aircraft platforms.

Key products and solutions include:

• **Small and Military APUs:** Support secondary power needs across fixed-wing aircraft, rotorcraft, and ground cart applications.

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• **Narrowbody and Widebody APUs:** Provide start power for main engines, pneumatic and hydraulic power on the ground, and serve as a backup source of electric power during flight. Narrowbody APUs are optimized for efficiency and space, while widebody APUs deliver higher power to support multiple engines and expanded onboard systems.

• **Electric Power Systems:** Includes motors and controllers, power distribution systems, and turbogenerators, which form the backbone of electric and hybrid-electric propulsion systems, converting, managing, and delivering power efficiently across the aircraft. Our strategic alliance with Denso utilizes our respective aerospace and automotive expertise to accelerate scalable electric propulsion solutions for emerging AAM platforms.

• **Fuel Cells and Adjacencies:** Provide clean, efficient electric power by converting hydrogen into electricity, ranging from proton exchange membrane ("PEM") fuel cells for drones and portable military use, to large-scale systems for aircraft propulsion, and aeroderivative APUs that deliver reliable, low-emission onboard power.

*Engines & Power Systems Customers*

We serve customers across aerospace end markets, with balanced exposure to Commercial Aviation, Defense and Space, and Business Aviation. Our blue-chip customer base includes major aerospace OEMs, U.S. military branches, and scaled aftermarket service providers. For the year ended December 31, 2024, our top 10 customers accounted for 35% of segment revenue.

***Control Systems ("CS") Segment***

Our CS segment, which represented 30% of revenue for the year ended December 31, 2024, is a leading supplier of mission critical thermal and motion control systems that enable flight, life support, and safety across all forms of aircraft. The CS product portfolio is organized into three offerings: Air and Thermal Control, Motion Control and Honeywell Federal Solutions. Our products include environmental control systems ("ECS"), cabin pressure control systems, thermal management systems, engine start systems, fuel control systems, flight control actuation systems, and wheels and braking systems.

We are a leading control system integrator for the aerospace and defense industry, with proven capability to design complex systems that integrate electronics, software, and mechanical hardware on aircraft, spacecraft and missiles. Our CS content is on virtually every aircraft – approximately ten million commercial passengers fly daily in aircraft equipped with our air and thermal controls, over 75% of commercial flights begin with our engine start system, and every in-production U.S. fighter aircraft is equipped with a Honeywell Control System. We support our fleet through a full suite of aftermarket and depot services. Additionally, the Honeywell Federal Solutions offering provides high-value site-management services for government-owned and classified facilities.

CS provides the following offerings: Air and Thermal Control, Motion Control and Honeywell Federal Solutions.

*Air & Thermal Control Offering*

We are a leading provider of environmental control, cabin pressure control, thermal management, inerting, and life support systems. We believe defense primes, OEMs and operators select our systems and technologies based on our highly integrated and advanced designs that leverage electrification to manage higher temperatures with lower power demand and reduced complexity. In addition, our systems are designed to incorporate advanced connected capabilities and to be scalable and configured to support mission requirements for a range of platforms across our end markets.

*Motion Control Offering*

We are a leading provider of highly engineered electromechanical products, mechanical engine controls, exterior aircraft lighting, high-temperature coatings, commercial/fighter wheels, and braking systems. We believe OEMs and operators select our systems and technologies based on our ability to deliver reliable, high performance in smaller, light-weight designs that enable improved capacity and range. We engineer our motion control systems to be

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upgradeable and benefit from future advances in core actuation, as well as integrate well with fly-by-wire, hybrid propulsion and other advanced designs.

Our key Air & Thermal Control and Motion Control products and systems include:

*Products that enable Flight:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Control Surface Actuation Systems:** Electromechanical systems used to move and position the aerodynamic control surfaces on an aircraft and other vehicles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Engine Start Systems:** Bring jet engines from stopped condition to a self-sustaining idle speed where normal combustion can occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Fuel Control Systems:** Regulate the flow of fuel to the engine in response to the various inputs such as throttle position, engine speed, temperature, altitude, and pressure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Power and Thermal Management Systems ("PTMS"):** Highly compact, efficient and integrated system that combines thermal management with conventional auxiliary power, ECS and emergency power into a single system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Wheels and Braking Systems:** Support the aircrafts weight, provide directional control on the runway, and enable deceleration and stopping.

*Products that Provide Life Support:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **ECS**: Systems that regulate air quality, temperature, humidity, and pressure within the cabin and cockpit to ensure a comfortable and habitable environment for passengers and crew during all phases of flight.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Thermal Management Systems:** Highly efficient vapor cycle systems and air cycle systems that provide conditioned air cooling and enable passenger and aircrew survivability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Air Delivery Systems:** An ECS subsystem that distributes conditioned air to the air cycle system or vapor cycle system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Life Support Systems:** Integrated portfolio of critical life sustaining subsystems designed to protect and sustain a pilot's physical needs, including oxygen generation, carbon monoxide removal, and emergency backup oxygen systems.

*Products that enable Safety:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Cabin Pressure Control Systems:** Critical subsystem in an aircraft that regulates the internal air pressure of the cabin to ensure a safe inhabitable environment for passengers and crew while flying at high altitudes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Nitrogen Generation Systems:** Essential subsystem that enhances safety by reducing the risk of fuel tank explosions or fires by producing nitrogen-enriched air and introducing it into the empty space above the fuel within the fuel tanks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Exterior Lighting Systems:** Help to ensure visibility, safety, and communication during various phases of flight and ground operation.

*Honeywell Federal Solutions*

We are a leading provider of site-management services, operating and managing facilities and employees on behalf of and at the direction of the U.S. federal government using government policies, processes, intellectual property and approvals to accomplish government-directed missions. Our Federal Solutions offering is differentiated from competitors by our track record, operational excellence, and ability to deliver the needs of our customers in highly regulated environments. We bring a legacy of trust and execution, demonstrated by our role as the only company to manage and operate a U.S. Department of Energy site for over 70 years. Operating under the government-owned,

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contractor-operated model, and primarily under a performance fee structure, we deliver services with precision and accountability.

Government agencies choose Federal Solutions because we combine deep institutional knowledge with the agility to meet evolving mission needs. Our long-standing relationships with federal agencies like the U.S. Department of Energy demonstrate our ability to deliver consistent value over time. Our expertise in lean practices, complex program execution, and customer support makes us a trusted partner in delivering secure, efficient, and innovative federal solutions.

Key facilities for which we provide site management services include:

• **Kansas City National Security Campus:** This site is a production facility that manufactures components used in U.S. national defense systems. These components include mechanical, electronic, and engineered materials.

• **Sandia National Laboratories:** This is the nation's premier science and engineering laboratory for national security and technology innovations.

• **Nevada National Security Site:** This site is a large, outdoor laboratory with various facilities used for subcritical radiological experiments, training for emergency responders, counterterrorism operations, and national security research.

• **Oak Ridge Reservation:** This is a former Manhattan Project site undergoing environmental remediation to address contamination from its past operations. The 32,000-acre reservation is part of the EPA Superfund program and is undergoing one of the largest environmental cleanup efforts in the United States.

*Control Systems Customers*

We serve customers across aerospace end markets, with a focus on Commercial Aviation and Defense and Space. For the year ended December 31, 2024, our top five CS customers accounted for approximately 35% of total segment revenue and represent the largest global aerospace and defense customers.

***Government Contracts***

We engage in the research, design, development, manufacture, integration, and sustainment of defense-related products and services for U.S. Government agencies and entities. As a result, our businesses are heavily regulated. We also conduct business with government authorities in other countries either as a Foreign Military Sale, through the U.S. Government, or as a direct sale with the foreign government entity. Such contracts tend to be regulated in a manner similar to U.S. Government contracts. The U.S. Government and governments in other countries may terminate any of our government contracts at their convenience or for default based on our performance requirements. If any of our U.S. Government contracts were to be terminated for convenience, we generally would be entitled to receive payment for work completed and allowable termination or cancellation costs. If any of our U.S. Government contracts were to be terminated for default, generally the U.S. Government would pay only for the work that has been accepted and could require us to pay the difference between the original contract price and the cost to re-procure the contract items.

***U.S. Government Sales***

We sell to the U.S. Government acting through its various departments and agencies and through prime contractors, including U.S. Department of Defense (as both a prime contractor and subcontractor).

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| | **Years Ended December 31,** | **Years Ended December 31,** |
| **U.S. Government sales ($ in millions)** | **2024** | **2023** |
| Sales to the U.S. Department of Defense | $3730 | $2867 |
| Sales to other U.S. Government departments and agencies | 413 | 446 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total sales to the U.S. Government**  | $**4143** | $**3313** |

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***Government Regulation***

As a global manufacturer and supplier of commercial and general aviation aircraft components and equipment, we and our products and services are subject to regulation by the Federal Aviation Administration ("FAA"), European Union Aviation Safety Agency, UK Civil Aviation Authority, and Transportation Canada, among other international bodies. The military aircraft component industry is governed by military-specific quality standards.

The commercial and general aviation components and systems we supply must meet rigorous certification standards set by one or more of these entities or agencies, and other similar agencies elsewhere in the world. We also must satisfy the requirements of our customers, including OEMs and airlines that are subject to FAA regulations, and provide these customers with products and services that comply with the government regulations applicable to commercial flight operations. The FAA and other aviation authorities require that various maintenance routines be performed on aircraft engines, engine parts, airframes, and other components at regular intervals based on cycles or flight time. The inspection, maintenance, and repair procedures for the various types of aircraft and equipment can be performed only by certified repair facilities utilizing certified technicians. As a provider of MRO services through certified facilities and technicians, we adhere to scheduled inspection and servicing protocols mandated by regulatory agencies and believe that we currently satisfy or exceed regulatory maintenance standards.

In addition to commercial and general aviation, Aerospace supplies defense-related products and services to U.S. Government agencies, entities, and other foreign governments, which require compliance with laws and regulations governing the formation, administration, and performance of such contracts. These laws and regulations, among other things:

• Require certification and disclosure of all cost or pricing data;

• Impose unique cost accounting practices;

• Impose acquisition regulations, which may change over time, that define costs that can be charged to the U.S Government and otherwise govern the right to reimbursement;

• Require specific security controls;

• Prohibit the acquisition or use by contractors of materials, products, or services procured from certain countries or entities outside the United States; and

• Require the review and approval of contractor business systems, including accounting systems, estimating systems, and purchasing systems.

Our operations are further subject to global trade laws and regulations including the Arms Export Control Act, the International Traffic in Arms Regulations, the Export Administration Regulations, and the sanctions administered by the United States Department of the Treasury's Office of Foreign Assets Control.

Additionally, we are subject to data protection laws, regulations, and customer-imposed controls in numerous jurisdictions, including, but not limited to, the General Data Protection Regulation, the California Consumer Privacy Act, the European Union General Data Protection Regulation, and the Personal Information Protection Law in China. Leveraging our expert Aerospace Government Relations team, we closely monitor regulatory requirements, as our operations may in the future be subject to new or amended regulatory requirements, with a view toward complying with possible future regulations.

***Backlog***

As of December 31, 2024, our backlog was $15,909 million. Backlog represents the estimated remaining value of work to be performed or products to be shipped under firm contracts. Backlog is equal to our remaining performance obligations under the contracts that meet the guidance on revenue from contracts with customers as discussed in Note 5 Revenue Recognition and Contracts with Customers of the Notes to Combined Financial Statements.

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***Manufacturing***

We apply a disciplined and scalable approach to engineering and manufacturing, leveraging decades of innovation to deliver mission-critical systems across Commercial Aviation, Business Aviation, and Defense and Space end markets. Our operating system integrates lean principles, digital tools, and global design standards that seek to ensure reliable, high-quality output. We differentiate ourselves through precision engineering, end-market-agnostic technologies, and a vertically integrated supply chain. This lean structure supports continuous improvement and allows us to scale efficiently while maintaining world-class safety and quality standards.

***Research, Development, Engineering & Innovation***

We prioritize investment in research, development, and engineering to advance mission-critical technologies that address the evolving needs of our customers across Commercial Aviation, Defense and Space, and Business Aviation. A core tenet of our research, development, and engineering strategy is to design and develop common systems and technologies that can be deployed across multiple platforms and applications within each of these end markets. This approach enables us to maximize engineering efficiency, streamline certification and manufacturing processes, and drive supply chain optimization, while delivering scalable solutions that meet the stringent requirements of our customers' diverse aerospace and defense platforms. Our industry-leading engineering management platform helps us ensure that capital and talent are deployed to the highest-impact initiatives with clear pathways to value creation. This digital infrastructure enables real-time, data-driven decision making and a direct line of sight from strategic intent to execution, driving projects from concept to market with maximum efficiency. Every project is measured against operational milestones and ROI, reinforcing a culture of accountability. We focus our innovation pipeline on end-market-agnostic technologies aligned with key industry themes such as enhanced safety, electrification, autonomy, connectivity, and next-generation defense capabilities. Our integrated product lifecycle development process, refined and validated over decades, ensures efficient product stage gates with strong certification capability, maximizing lifecycle value for both commercial and defense platforms. By aligning development milestones with customer requirements, we are able to manage customer expectations and delivery milestones.

***Suppliers & Materials***

We source a wide range of raw materials, components, and subsystems from a global network of suppliers to support our manufacturing operations. While most inputs are available from multiple sources at competitive prices, certain components requiring specialized specifications or regulatory qualifications may be sourced from a single supplier or limited number of suppliers. In such cases, we employ risk mitigation strategies including safety stock, dual-sourcing, and qualification of alternative vendors. The aerospace industry's rigorous certification requirements can limit the speed and efficiency of supplier substitution, and external factors such as inflation, geopolitical tensions, and regional conflicts may affect material availability and cost. Over the past several years, we maintained continued delivery performance despite macroeconomic volatility and global supply chain disruptions. Our supply chain maintained resilience through strategic sourcing, digital planning tools, and ongoing investments in supply chain optimization, which enabled us to respond to exogenous shocks.

***Properties***

Following the separation and distribution, we will own our U.S. headquarters located in Phoenix, Arizona. Additionally, we will own, lease or otherwise have rights to use a number of facilities, including administration, research and development, manufacturing, warehousing, distribution, and other facilities. We expect that we will own, lease, or otherwise have rights to use approximately 111 facilities consisting of approximately 35 facilities that we will own and approximately 76 facilities that we will lease or otherwise have rights to use. The facilities are located throughout the United States and in many other countries around the world, including in Mexico, India, China, Canada, the United Kingdom, the Czech Republic, Germany, and Malaysia.

The table below shows the geographic distribution of our facilities:

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| **Primary Use** | **Americas** | **Asia Pacific** | **EMEA** | **Total** |
| Manufacturing | 38 | 8 | 13 | 59 |

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| | | | | |
|:---|:---|:---|:---|:---|
| R&D | 17 | 6 | 9 | 32 |
| Corporate/Office | 11 | 1 | 8 | 20 |
| **Total**  | **66** | **15** | **30** | **111** |

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***Intellectual Property***

We maintain a broad portfolio of patents, trademarks, copyrights, trade secrets, and other intellectual property ("IP") rights related to our business and continue to develop and acquire new intellectual property on an ongoing basis. As of September 30, 2025, we own over 9,000 active patent assets filed in approximately 30 countries globally to protect our research, development, and engineering investments in new products and services. We believe that our intellectual property rights, the measures taken to build a portfolio of valid and enforceable intellectual property rights, and the deployment of our rigorous processes to protect our critical business knowledge globally, provide a competitive advantage for us. However, there can be no assurance that these intellectual property rights will not be challenged, found invalid, or found unenforceable. Loss of our intellectual property rights could adversely affect our competitiveness.

Honeywell transferred or will transfer to Aerospace certain IP that is specific to our business. Honeywell has granted or will grant to us a license to use other IP that is used in our business, but which Honeywell will retain ownership of, including a trademark license to certain trademarks that contain "Honeywell" for use in our business. See "Certain Relationships and Related Party Transactions—Agreements with Honeywell and Aerospace—Intellectual Property License Agreement".

***Environmental Matters***

Aerospace is subject to a broad range of international, federal, state, and local environmental, health, and safety laws and regulations. These laws govern, among other things, the generation, handling, storage, transportation, and disposal of hazardous materials and waste, emissions to air and water, occupational health and safety, and the use of certain chemicals in our products and production processes.

Certain operations may require environmental permits, licenses, or authorizations, which we obtain and maintain in accordance with applicable regulatory requirements. These permits may be subject to periodic review, renewal, or modification by regulatory authorities. From time to time, we may be subject to inspections or enforcement actions by government agencies, which could result in fines or penalties. We are committed to monitoring our environmental performance and the health and safety of our employees, and we continually assess opportunities for improvement.

Although we currently are not aware of any material environmental or regulatory compliance costs or liabilities, or any risks associated with climate change that would be materially adverse to the company, it is possible that we may incur material costs or liabilities in the future. We will continue to monitor regulatory developments and evolving standards that may affect our operations in the future.

***Employees & Employee Relations***

As of June 30, 2025, Aerospace employed over 30,000 people across more than 90 engineering, manufacturing, corporate, and repair and overhaul facilities globally. Our workforce spans 34 countries, with concentrations in the United States, Mexico, and India. 6% of our U.S.-based employees are represented by labor unions or works councils, and we operate under applicable collective bargaining agreements and local labor regulations. This total employee count excludes approximately 20,000 employees of the Sandia National Laboratories and Kansas City National Security Campus Department of Energy facilities. Honeywell manages these facilities as a contract operator and does not establish or control their human resource policies.

Our employees are central to our ability to deliver mission-critical systems and technologies across Commercial Aviation, Defense and Space, and Business Aviation. We believe our performance-driven culture, which emphasizes safety, reliability, continuous improvement, and innovation, is a key competitive advantage. Aerospace benefits from a world-class leadership team and a deep bench of tenured technologists with extensive industry experience.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

The average industry experience across our senior leadership is over&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; years, with an average tenure of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; years at Honeywell, forming a strong foundation of institutional knowledge and expertise, and our engineering team has an average tenure of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; years at Honeywell. We seek to empower our team to drive operational efficiency and advance next-generation capabilities for our customers.

Across the organization, employees embody Honeywell's Six Behaviors: drive accountability culture, be courageous, build exceptional talent, win together, innovate and create value for customers, and embrace transformation. These principles foster a culture of excellence, agility, and shared success.

***Legal Proceedings***

We are subject to a number of lawsuits, investigations, and disputes (some of which involve substantial amounts claimed) arising from the conduct of our business, including matters relating to commercial transactions, supply chain disruptions, intellectual property, and environmental, health, and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments or outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on careful analysis of each matter, and if appropriate, with the assistance of outside legal counsel and other experts. See Note 18 Commitments and Contingencies of the Notes to Combined Financial Statements for additional information on our commitments and contingencies.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**(Dollars in tables and graphs in millions)**

*This section should be read in conjunction with the audited Combined Financial Statements and related Notes, included in this information statement, as well as the information contained in the sections of this information statement titled "Unaudited Pro Forma Combined Financial Information" and "Business." The section of this information statement titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" contains forward-looking statements. See the sections of the information statement titled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" for a discussion of uncertainties, risks, and assumptions associated with these forward-looking statements that could cause future results to differ materially from those reflected in this section. The financial information discussed below and included in this information statement may not necessarily reflect what our financial condition, results of operations, or cash flows would have been had we been a standalone company during the periods presented or what our financial condition, results of operations, and cash flows may be in the future.*

**OVERVIEW**

***Business Overview***

We are a leading global tier-1 aerospace and defense supplier of mission critical systems and technologies that enable the production, maintenance, and safe operation of aerospace and defense platforms. Our systems and technologies support original equipment manufacturer ("OEM"), government, defense prime contractors, and aircraft operator customers across the Commercial Aviation, Defense and Space, and Business Aviation end markets. Our comprehensive portfolio of market leading systems and technologies are organized into the following segments: Electronic Solutions ("ES"), Engines & Power Systems ("E&PS"), and Control Systems ("CS"). As of December 31, 2024, we employed approximately 30,000 people across more than 90 engineering, manufacturing, and maintenance, repair and overhaul ("MRO") facilities globally. The total employee count excludes approximately 20,000 employees of the Sandia National Laboratories (Sandia) and Kansas City National Security Campus (KCNSC) Department of Energy facilities. Honeywell manages these facilities as a contract operator and does not establish or control their human resource policies.

Our proud heritage includes over a century of safe and reliable performance and continuous innovation across every major era of flight. Since inventing the world's first autopilot in 1914, we repeatedly introduced category-defining technologies including the first commercial auxiliary power units ("APUs") in the 1950s, the Ground Proximity Warning System in the 1970s, integrated digital cockpits in the 1990s, combined power and thermal management in the 2000s, electromechanical control actuation in the 2010s and, most recently, the first automated runway safety system that we expect to be transformative for flight operations. Over time, we leveraged our flight heritage to grow in attractive defense markets where our systems and technologies have been mission critical to U.S. national security and NASA missions for decades. Our long track record, deep industry experience and cutting-edge technology are the reasons many customers, including the largest and most discerning companies across the Commercial Aviation, Defense and Space, and Business Aviation end markets, consistently turn to us to deliver advanced systems that power and protect their platforms.

***Separation from Honeywell***

On February 6, 2025, Honeywell announced its intention to separate its Aerospace Business from its Automation Business. The separation will occur through a pro rata distribution to the Honeywell shareowners of 100% of the shares of common stock of Honeywell Aerospace LLC ("Aerospace"), which was formed to hold Honeywell's Aerospace Business and will be converted into a corporation prior to the distribution. The distribution of Aerospace common stock as described in this information statement is subject to the satisfaction or waiver of certain conditions. For a more detailed description of these conditions, see "The Separation and Distribution—Conditions to the Distribution."

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***Relationship with Honeywell***

The Combined Financial Statements included in this information statement are derived from Honeywell's historical accounting records and presented on a standalone basis as if the Aerospace operations had been conducted independently from Honeywell. The Combined Financial Statements are prepared in accordance with GAAP and Honeywell's historical accounting policies, by aggregating financial information from the components of Aerospace and Honeywell's accounting records directly attributable to Aerospace.

The Combined Financial Statements include certain assets and liabilities that have historically been held at the Honeywell corporate level but are specifically identifiable or otherwise attributable to Aerospace. Honeywell provides certain services, such as legal, accounting, information technology, human resources, and other infrastructure support, on behalf of Aerospace. Aerospace and Honeywell consider allocations of these costs to be a reasonable reflection of the benefits received by Aerospace. However, the financial information presented in the Combined Financial Statements may not reflect the combined financial position, operating results, and cash flows of Aerospace had Aerospace been a separate standalone entity during the periods presented. Actual costs that would have been incurred if Aerospace had been a standalone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. We consider the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to or the benefits received by Aerospace during the periods presented.

Prior to the distribution, Honeywell and Aerospace will enter into the separation agreement. In connection with the separation, Aerospace will also enter into various other agreements to effect the separation and to provide a framework for our relationship with Honeywell after the separation, including a transition services agreement, a tax matters agreement, an employee matters agreement, an intellectual property license agreement, and a trademark license agreement. See "Certain Relationships and Related Party Transactions." We generally expect to be able to utilize Honeywell's services for a transitional period following the separation before we replace these services over time with services supplied either internally or by third parties. The expenses for the services may vary from the historical costs directly billed and allocated to us for the same services.

We expect to incur certain costs in connection with our establishment as a standalone public company (the "separation-related costs"). The separation-related costs include one-time and non-recurring expenses associated with the separation and stand up of functions required to operate as a standalone public entity. These non-recurring costs primarily relate to system implementation costs, business and facilities separation, applicable employee-related costs, evolution of our brand, and other matters. The separation-related costs are expected to continue through at least fiscal year 2027. Additionally, we will incur increased costs as a result of becoming an independent, publicly traded company, primarily from establishing or expanding the corporate support for our businesses, including IT, human resources, treasury, tax, internal audit, risk management, stock-based compensation programs, accounting and financial reporting, investor relations, governance, legal, procurement, and other services. See "Unaudited Pro Forma Combined Financial Information" for additional details.

For additional information about the separation, see "The Separation and Distribution" and "Certain Relationships and Related Party Transactions—Agreements with Honeywell and Aerospace."

***Macroeconomic Conditions***

We continue to monitor macroeconomic and geopolitical developments amid heightened trade tensions, economic and trade policy uncertainty, and inflationary risks. Trade policy volatility during 2025—including new tariffs and, in some cases, subsequent rollbacks or suspensions—could impact global growth and contribute to inflationary pressures. Global conflicts, tariffs, labor disruptions, and regulations continue to generate volatility in global markets and contribute to supply chain vulnerabilities and pricing fluctuations. We remain proactive in our collaboration with suppliers to minimize shortages and mitigate supply chain and pricing volatility.

Mitigation strategies remain crucial to meet customer demand in this evolving environment. Our mitigation strategies include supply chain simplification, continued alignment to local supply sources, pricing actions, dual source strategies, long-term strategies for constrained materials, direct engagement with key suppliers, and new supplier development or strategic in sourcing. Strong relationships with strategic primary and secondary suppliers

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

allow us to collaborate to reliably source key components and raw materials, develop new products, commit our resources to assist certain suppliers, and, at times, alter designs of existing products. We believe these mitigation strategies enable us to reduce supply risk, foster new product innovation, and expand our market presence. Additionally, due to the stringent quality controls and product qualification we perform on any new or altered product, these mitigation strategies have not adversely impacted, and we do not expect them to adversely impact, product quality or reliability.

To date, our strategies helped minimize our exposure to these conditions. However, if we are not successful in sustaining or executing mitigation strategies, these macroeconomic conditions could have a material adverse effect on our results of operations, cash flows, or financial condition.

**RESULTS OF OPERATIONS**

***Combined Financial Results***

![chart-b83eddacaeb24afcaed.jpg](chart-b83eddacaeb24afcaed.jpg)

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***Net Sales by Segment***

![chart-ce87c39d77194458bcf.jpg](chart-ce87c39d77194458bcf.jpg)

***Segment Profit/Segment Adjusted EBIT by Segment***

![chart-c878dd7c65bd4ba9aa7.jpg](chart-c878dd7c65bd4ba9aa7.jpg)

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**COMBINED OPERATING RESULTS**

***Net Sales***

![chart-7b38f814d01a4870b62.jpg](chart-7b38f814d01a4870b62.jpg)

The following table sets forth the factors contributing to year-over-year changes in our Net sales for the years ended December 31, 2024 and 2023:

---

| | |
|:---|:---|
| | **Years Ended December 31,** |
| **Change in net sales from prior period**  | **2024 vs. 2023** |
| Organic<sup>(1)</sup> | 10% |
| Foreign currency translation | —% |
| Acquisitions | 2% |
| Other<sup>(2)</sup> | —% |
| **Total % change in Net sales**  | 12% |

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__________________

(1)See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for the definition of Organic sales growth.

(2)Includes other matters considered to be unusual, infrequent, and not indicative of the Company's ongoing performance.

A discussion of Net sales by reportable segment can be found under the "Segment Results" section within this "Management's Discussion and Analysis of Financial Condition"

***2024 compared with 2023***

Net sales increased due to higher organic sales of $337 million, $300 million, and $101 million in ES, CS, and E&PS, respectively, driven by higher sales volumes from increased shipments relating to the Defense and Space end market, and higher organic sales of $298 million, $212 million, and $227 million in E&PS, ES and CS, respectively, driven by higher sales volumes in the Commercial Aviation Aftermarket from increased flight hours. Additionally, the acquisitions of CAES Systems Holdings LLC ("CAES") and Civitanavi Systems S.p.A. contributed $332 million to 2024 Net sales.

During the fourth quarter of 2024, we entered into a strategic agreement with Bombardier to provide advanced technology for current and future Bombardier aircraft in avionics, propulsion, and satellite communications technologies. Net sales for E&PS in 2024 were reduced by $372 million because the strategic transaction with Bombardier provided for certain payments to be made by the Company to Bombardier which are not allocable to platforms that are recoverable via future sales directly to Bombardier.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***Cost of Products and Services Sold***

![chart-e2e4e52b1dcb45b3839.jpg](chart-e2e4e52b1dcb45b3839.jpg)

***2024 compared with 2023***

Cost of product and services sold increased due to higher direct and indirect material costs and labor costs of $1,214 million and incremental costs from recent acquisitions of $222 million. Gross margin percentage decreased by 3%.

***Research and Development Expenses***

![chart-f530463bd0b54a049b0.jpg](chart-f530463bd0b54a049b0.jpg)

***2024 compared with 2023***

Research and development expenses increased compared to 2023 but remained relatively flat at 4% as a percentage of Net sales.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

A summary of our research and development costs for the years ended December 31, 2024 and 2023 is as follows:

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| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Company funded research and development expenses | $567 | $506 |
| Customer-sponsored research and development<sup>(1)</sup> | 1105 | 1145 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total research and development costs**  | $**1672** | $**1651** |

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__________________

(1)Includes deferred customer funded non-recurring engineering and development activities and expenditures on customer programs with a significant engineering performance obligation, included in Cost of products and services sold in the Combined Statements of Operations.

***Selling, General and Administrative Expenses***

![chart-79bce2b8c9cf45589c7.jpg](chart-79bce2b8c9cf45589c7.jpg)

***2024 compared with 2023***

Selling, general and administrative expenses increased due to higher labor costs of $98 million, higher overhead allocations from Honeywell of $77 million and incremental costs from acquisitions of $38 million.

***Other Expense, Net***

Other expense, net primarily includes the following:

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| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Environmental expenses | $183 | $157 |
| Equity income of affiliated companies | (27) | (46) |
| Other, net | (15) | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Other expense, net**  | $**141** | $**93** |

---

***2024 compared with 2023***

Other expense, net increased by $48 million for the year ended December 31, 2024, driven by increased environmental remediation expenses of $26 million due to increased legal fee accruals and remediation work carried out on sites. See Note 18 Commitments and Contingencies of the Notes to Combined Financial Statements for a discussion of the environmental matters.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***Income Tax Expense***

![chart-723d78d5941445d8ab7.jpg](chart-723d78d5941445d8ab7.jpg)

***2024 compared with 2023***

The effective tax rate in 2024 decreased compared to 2023 primarily due to increased benefits from stock-based compensation.

On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act ("OBBBA") was enacted. The OBBBA includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key Tax Cuts & Jobs Act provisions (both domestic and international), expanding certain Inflation Reduction Act incentives, and accelerating the phase-out of or repealing others.

See Note 7 Income Taxes of the Notes to Combined Financial Statements for additional information on the effective tax rate.

**SEGMENT RESULTS**

We manage and report our operating results through three reportable segments: Electronic Solutions, Engine & Power Systems, and Control Systems. The remainder of our operations are presented in Corporate and All Other, which is not a reportable business segment.

Segment Profit and Segment Adjusted EBIT are measures of segment profitability used by our Chief Operating Decision Maker. Refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for a reconciliation of Aerospace's Segment Adjusted EBIT to Segment Profit.

***Electronic Solutions***

The following table sets forth the operating results for our ES segment for the years ended December 31, 2024 and 2023:

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| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Net sales | $6025 | $5098 |
| Segment Profit/Segment Adjusted EBIT<sup>(1)</sup> | 1912 | 1580 |
| Segment Profit margin/Segment Adjusted EBIT margin<sup>(1)</sup> | 32% | 31% |

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__________________

(1)See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for the definition of Segment Adjusted EBIT and Segment Adjusted EBIT margin.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

The following table sets forth the factors contributing to year-over-year changes in our ES segment's Net sales for the years ended December 31, 2024 and 2023:

---

| | |
|:---|:---|
| | **Years Ended December 31,** |
| | **2024 vs. 2023** |
| Organic<sup>(1)</sup>  | 11% |
| Foreign currency translation |  |
| Acquisitions | 7 |
| Other<sup>(2)</sup> |  |
| **Total % change in Net sales**  | **18%** |

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__________________

(1)See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for the definition of Organic sales growth.

(2)Includes other matters considered to be unusual, infrequent, and not indicative of the Company's ongoing performance.

*2024 compared with 2023*

ES Net sales increased due to higher organic sales of $337 million driven by higher sales volumes from increased shipments relating to the Defense and Space end market, and higher organic sales of $212 million driven by higher sales volumes in the Commercial Aviation Aftermarket from increased flight hours. Additionally, the acquisitions of CAES and Civitanavi Systems S.p.A. contributed $332 million to 2024 sales.

Segment Profit and Segment Adjusted EBIT increased by $332 million or 21% and Segment Profit margin and Segment Adjusted EBIT margin remained relatively flat at 32% for the year ended December 31, 2024.

***Engine & Power Systems***

The following table sets forth the operating results for our E&PS segment for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Net sales | $4731 | $4595 |
| Segment Profit | 692 | 1021 |
| Segment Profit margin | 15% | 22% |
| Segment Adjusted EBIT<sup>(1)</sup> | 692 | 1021 |
| Segment Adjusted EBIT margin<sup>(1)</sup> | 15% | 22% |

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__________________

(1)See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for the definition of Segment Adjusted EBIT and Segment Adjusted EBIT margin.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

The following table sets forth the factors contributing to year-over-year changes in our E&PS segment's Net sales for the years ended December 31, 2024 and 2023:

---

| | |
|:---|:---|
| | **Years Ended December 31,** |
| | **2024 vs. 2023** |
| Organic<sup>(1)</sup>  | 3% |
| Foreign currency translation |  |
| Acquisitions |  |
| Other<sup>(2)</sup> |  |
| **Total % change in Net sales**  | **3%** |

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__________________

(1)See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for the definition of Organic sales growth.

(2)Includes other matters considered to be unusual, infrequent, and not indicative of the Company's ongoing performance.

*2024 compared with 2023*

E&PS Net sales increased due to higher organic sales of $298 million driven by higher sales volumes in the Commercial Aviation Aftermarket from increased flight hours, and higher organic sales of $101 million driven by higher sales volumes from increased shipments relating to the Defense and Space end market. The increase was offset by a reduction in Net sales, Segment Profit, and Segment Adjusted EBIT of $372 million due to the Bombardier agreement.

Segment Profit and Segment Adjusted EBIT decreased by $329 million or 32% and Segment Profit margin and Segment Adjusted EBIT margin decreased 7% for the year ended December 31, 2024.

***Control Systems***

The following table sets forth the operating results for our CS segment for the years ended December 31, 2024 and 2023:

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| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Net sales | $4689 | $4097 |
| Segment Profit/Segment Adjusted EBIT<sup>(1)</sup> | 1226 | 1267 |
| Segment Profit margin/Segment Adjusted EBIT margin<sup>(1)</sup> | 26% | 31% |

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_________________

(1)See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for the definition of Segment Adjusted EBIT and Segment Adjusted EBIT margin.

The following table sets forth the factors contributing to year-over-year changes in our CS segment's Net sales for the years ended December 31, 2024 and 2023:

---

| | |
|:---|:---|
| | **Years Ended December 31,** |
| | **2024 vs. 2023** |
| Organic<sup>(1)</sup> | 14% |
| Foreign currency translation |  |
| Acquisitions |  |
| Other<sup>(2)</sup> |  |
| **Total % change in Net sales**  | **14%** |

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__________________

(1)See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures" for the definition of Organic sales growth.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

(2)Includes other matters considered to be unusual, infrequent, and not indicative of the Company's ongoing performance.

*2024 compared with 2023*

CS Net sales increased due to higher organic sales of $300 million driven by higher sales volumes from increased shipments relating to the Defense and Space end market, and higher organic sales of $227 million driven by higher sales volumes in Commercial Aviation Aftermarket from increased flight hours.

Segment Profit and Segment Adjusted EBIT decreased by $41 million or 3% and Segment Profit margin and Segment Adjusted EBIT margin decreased 5% for the year ended December 31, 2024.

***Corporate and All Other***

Corporate and All Other primarily includes unallocated corporate costs and is not a separate reportable business segment as segment reporting criteria is not met. We monitor the activities in Corporate and All Other to determine the need for further reportable business segment disaggregation.

**NON-GAAP FINANCIAL MEASURES**

We use non-GAAP financial measures to supplement the financial measures prepared in accordance with GAAP. These include (1) Organic sales growth, (2) Adjusted EBIT, (3) Adjusted EBIT margin, (4) Segment Adjusted EBIT, (5) Segment Adjusted EBIT margin, and (6) Free cash flow.

Below are definitions and reconciliations of certain non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. Management believes that, when considered together with reported amounts, these measures are useful to investors and management in understanding our ongoing operations and in the analysis of ongoing operating trends. Management believes these non-GAAP financial measures provide investors with a more meaningful measure of its performance period to period, align the measures to how management evaluates performance internally, and make it easier for investors to compare our performance to peers. These measures should be considered in addition to, and not as replacements for, the most directly comparable GAAP measure. The non-GAAP financial measures we use are as follows:

• **Organic sales growth:** We define organic sales growth as the change in reported Net sales relative to the comparable period, excluding the impact on sales from foreign currency translation and acquisitions, net of divestitures, for the first 12 months following the transaction date, and other items that are unusual and non-recurring in nature (*e.g.* impact of comprehensive settlement related to Flexjet litigation). We believe this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.

• **Adjusted EBIT and Adjusted EBIT margin:** We define Adjusted EBIT as Net income excluding taxes, interest, amortization of acquisition-related intangibles, stock compensation expense, environmental remediation expense, pension income (expense), repositioning charges, and other items that are unusual or non-recurring nature, including but not limited to impairment charges, litigation charges (*e.g.,* comprehensive settlement related to Flexjet litigation), and gains and losses on disposal of assets. We define Adjusted EBIT margin as Adjusted EBIT divided by Net sales adjusted for the impact of the Flexjet-related litigation settlement. We believe these measures are useful to investors as they provide greater transparency with respect to supplemental information used by management in its financial and operational decision making, as well as understanding ongoing operating trends.

• **Segment Adjusted EBIT and Segment Adjusted EBIT margin:** We define Segment Adjusted EBIT as Income before taxes excluding interest, amortization of acquisition-related intangibles, stock compensation expense, environmental remediation expense, pension income (expense), repositioning charges, and other items that are otherwise of an unusual or non-recurring nature, including but not limited to impairment charges, litigation charges (*e.g.,* comprehensive settlement related to Flexjet litigation), and gains and losses on disposal of assets. We define Segment Adjusted EBIT margin as Segment Adjusted EBIT divided by Net sales adjusted for the impact of the Flexjet-related litigation settlement. We believe these measures are useful to investors as they provide greater transparency with respect to supplemental information used by management in its financial

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

and operational decision making, as well as understanding ongoing operating trends.<br>

• **Free cash flow:** We define free cash flow as cash provided by operating activities (a measure prescribed by GAAP) less capital expenditures. We believe that this supplemental non-GAAP information is useful to assist management and the investment community in analyzing the company's ability to generate cash flow.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2024** | **2024** | **2023** | **2023** |
|  | **Amount** | **Percentage of Net Sales** | **Amount** | **Percentage of Net Sales** |
| **Net income**  | $**2849** | **18%** | $**2914** | **21%** |
| Income tax expense | (519) | (3)% | (557) | (4)% |
| Amortization of acquisition-related intangibles<sup>(1)</sup> | (34) | —% | (17) | —% |
| Stock compensation expense<sup>(2)</sup> | (74) | —% | (73) | (1)% |
| Environmental remediation expense<sup>(3)</sup> | (235) | (3)% | (204) | (2)% |
| Other, net<sup>(4)</sup> | 3 | —% | (10) | —% |
| **Segment Profit**  | $**3708** | **24%** | $**3775** | **28%** |
| Flexjet-related litigation settlement<sup>(5)</sup> |  | —% |  | —% |
| **Adjusted EBIT**  | $**3708** | **24%** | $**3775** | **28%** |

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__________________

(1)Amounts included in Cost of products and services sold and Selling, general and administrative.

(2)Amounts included in Selling, general and administrative expenses.

(3)Amounts included in Cost of products and services sold and Other expense, net.

(4)Amounts include interest and other financial charges, pension income (expense) and repositioning and other charges.

(5)Litigation matter considered unusual, infrequent, and not indicative of future performance.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| | **Electronic Solutions** | **Electronic Solutions** | **Engines & Power Systems** | **Engines & Power Systems** | **Control Systems** | **Control Systems** |
| | **Amount** | **Margin %** | **Amount** | **Margin %** | **Amount** | **Margin %** |
| **Segment Profit**  | $**1912** | **32%** | $**692** | **15%** | $**1226** | **26%** |
| Flexjet-related litigation settlement<sup>(1)</sup> |  | —% |  | —% |  | —% |
| **Segment Adjusted EBIT**  | $**1912** | **32%** | $**692** | **15%** | $**1226** | **26%** |

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__________________

(1)Litigation matter considered unusual, infrequent, and not indicative of future performance.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| | **Electronic Solutions** | **Electronic Solutions** | **Engines & Power Systems** | **Engines & Power Systems** | **Control Systems** | **Control Systems** |
| | **Amount** | **Margin %** | **Amount** | **Margin %** | **Amount** | **Margin %** |
| **Segment Profit**  | $**1580** | **31%** | $**1021** | **22%** | $**1267** | **31%** |
| Flexjet-related litigation settlement<sup>(1)</sup> |  | —% |  | —% |  | —% |
| **Segment Adjusted EBIT**  | $**1580** | **31%** | $**1021** | **22%** | $**1267** | **31%** |

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__________________

(1)Litigation matter considered unusual, infrequent, and not indicative of future performance.

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| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Net cash provided by operating activities | $2538 | $2984 |
| Less: Capital expenditures | 488 | 387 |
| **Free cash flow**  | $**2050** | $**2597** |

---

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**LIQUIDITY AND CAPITAL RESOURCES**

***Sources of Historical Liquidity***

We historically generated positive net operating cash flows.

As part of Honeywell, Aerospace has been dependent upon Honeywell for its working capital and financing requirements. Honeywell uses a centralized approach to cash management and financing of its operations. Accordingly, a substantial portion of the Aerospace Business' cash accounts have been regularly cleared to Honeywell at Honeywell's discretion, and Honeywell funds its operating and investing activities as needed. This arrangement is not reflective of the manner in which the Aerospace Business would have financed its operations had it been a standalone business separate from Honeywell during the periods presented. Transfers of cash between Honeywell and the Aerospace Business have been included within Net transfers from (to) Parent in the Combined Statements of Cash Flows and the Combined Statements of Equity included elsewhere in this information statement.

In conjunction with the planned separation, we will evaluate our liquidity needs, in light of our operations, growth initiatives, and capital resources. We expect to further evaluate our liquidity needs, capital structure, and sources of capital on a standalone basis, and expect to enter into future borrowings.

***Future Sources of Liquidity***

Following the separation, our capital structure and sources of liquidity will change from our historical capital structure because we will no longer be part of Honeywell's centralized treasury management and centralized funding programs. Our ability to fund our operating needs will depend on our ability to continue to generate positive cash flows from operations, and on our ability to obtain debt financing on acceptable terms or to issue additional equity or equity-linked securities not anticipated at this time or reflected in this information statement. Management believes that our cash balances and funds provided by operating activities, along with expected borrowing capacity and access to capital markets, taken as a whole, will provide (i) adequate liquidity to meet all of our current and long-term obligations when due, including third-party debt that we expect to incur in connection with the separation, (ii) adequate liquidity to fund capital expenditures and (iii) flexibility to meet investment opportunities, including acquisitions, that may arise. However, there can be no assurance that we will be able to obtain additional debt or equity financing on acceptable terms in the future.

In connection with the distribution, Aerospace expects to issue senior unsecured notes in an aggregate principal amount of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion. Aerospace also intends to enter into (i) a senior unsecured revolving credit facility to be available for general corporate purposes in an aggregate committed amount as of the date of the distribution of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion and (ii) a senior unsecured commercial paper program to be available for general corporate purposes up to an aggregate amount at any time outstanding of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion. The terms of such indebtedness are subject to change and are expected to be finalized prior to the closing of the separation. Adjusted financial data reflecting our post separation capitalization, if not known at the time of the filing, will be included in an amendment to this information statement.

Aerospace expects to use proceeds from the revolving credit facility and commercial paper program for general corporate purposes. Aerospace expects to use the net proceeds from the senior unsecured notes (i) to make a cash distribution to Honeywell, (ii) to pay fees and expenses related to the separation, the distribution, and/or the debt transactions, and/or (iii) for general corporate purposes.

We expect to utilize our cash flows to continue to invest in our business, growth strategies, people, and the communities in which we operate, as well as to service and repay our indebtedness over time.

***Annual Cash Flows***

Summarized cash flow information for the years ended December 31, 2024 and 2023 is as follows:

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Net cash provided by operating activities | $2538 | $2984 |
| Net cash used for investing activities | (2599) | (443) |
| Net cash provided by (used for) financing activities | 164 | (2520) |

---

*Operating*

Net cash provided by operating activities decreased $446 million for the year ended December 31, 2024 compared to the same period in 2023. The decrease in net cash provided by operating activities is attributable to lower Net income and an increase in working capital outflows over the prior period to support higher organic sales. The working capital outflows were primarily driven by changes in Accounts receivable, Contract assets, Accounts payable due to timing of payments, and an increase in customer-related intangible assets as a result of the Bombardier agreement. These were partially offset by an increase in Other liabilities primarily driven by customer incentives.

Included within cash provided by operating activities are actions taken by the Company to reduce concentrations of credit and impact the timing of certain cash receipts by selling receivables to third parties or transactions directly with customers having a similar economic effect. The total of such actions decreased cash provided by operating activities by $227 million and $182 million for the years ended December 31, 2024 and 2023, respectively.

*Investing*

Net cash used for investing activities increased $2,156 million for the year ended December 31, 2024 compared to the same period in 2023. The increase in net cash used for investing activities was primarily attributable to the acquisitions of CAES and Civitanavi Systems S.p.A. for aggregate consideration of $2,130 million.

*Financing*

Net cash provided by financing activities increased $2,684 million for the year ended December 31, 2024 compared to the same period in 2023 primarily due to an increase in net transfers from Honeywell related to the funding for the CAES and Civitanavi Systems S.p.A. acquisitions.

***Cash and Cash Requirements***

*Summary*

As of December 31, 2024, our cash and cash equivalents totaled $244 million. Our ability to generate positive cash flows from operations is dependent on general economic conditions and the competitive environment in our industry, and is subject to the business and other risk factors described in the section of this information statement titled "Risk Factors." If we are unable to generate sufficient cash flows from operations or otherwise comply with the terms of any external borrowings, we may be required to seek additional financing alternatives.

We continually assess the relative strength of each business in our portfolio as to strategic fit, industry position, profit, and cash flow contribution in order to identify target investment and acquisition opportunities in order to upgrade our combined portfolio. We identify acquisition candidates that will further our strategic plan and strengthen our existing core businesses. During the year ended December 31, 2024, we acquired CAES for total consideration of $1.9 billion, net of cash acquired, and Civitanavi Systems S.p.A. for total consideration of $200 million, net of cash acquired.

Immediately following the separation, we anticipate our cash balance will be approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million. We believe that we have sufficient liquidity based on our current cash position, cash flows from operations, and expected future financing, to meet our expected payments related to our material cash requirements for at least the next 12 months.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

*Cash and Cash Equivalents Held by Foreign Subsidiaries*

Cash and cash equivalents held by Aerospace's foreign subsidiaries were $239 million as of December 31, 2024.

***Material Cash Requirements from Contractual and Other Obligations***

In the normal course of business, we enter into various contractual obligations that impact, or could impact, the liquidity of our operations. The following table and discussion outlines our material obligations as of December 31, 2024 on an undiscounted basis, with projected cash payments in the years shown:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Total** | **2025** | **2026-2027** | **2028-2029** | **Thereafter** |
| Purchase obligations<sup>(1)</sup> | $1769 | $1109 | $636 | $18 | $6 |
| Operating lease obligations<sup>(2)</sup> | 294 | 48 | 88 | 68 | 90 |
| Estimated environmental liability payments<sup>(3)</sup> | 581 | 169 | 179 | 100 | 133 |
| **Total contractual obligations**  | $**2644** | $**1326** | $**903** | $**186** | $**229** |

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__________________

(1)Purchase obligations are entered into with various vendors in the normal course of business and are consistent with our expected requirements.

(2)Commitments under operating leases primarily relate to leasehold properties, automobiles, and other equipment. See Note 12 Leases of the Notes to Combined Financial Statements for additional information.

(3)The payment amounts in the table only reflect the environmental liabilities which are probable and reasonably estimable as of December 31, 2024.

The above table excludes the following:

• Estimated principal amount of indebtedness of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; billion and associated estimated interest payments of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million per year in connection with the separation.

• Future benefit payments for past and future service for certain pension plans we expect Honeywell to convey to us pursuant to the employee matters agreement and the separation agreement.

• One-time cash payments to the parties to the Flexjet-related litigation matters for the comprehensive settlement of such matters, which will total approximately $435 million in the aggregate. These litigation matters are discussed in Note 18 Commitments and Contingencies—Litigation Matters—Flexjet v. Honeywell International Inc. of the Notes to Combined Financial Statements.

***Capital Expenditures***

Our capital expenditures primarily consist of continuing investments to maintain the safety and reliability of our existing operations and corporate footprint, internal-use software, and additional investments in new and existing facilities to support new production introduction and capacity expansion to grow our business. For the years ended December 31, 2024 and 2023, our capital expenditures were $488 million and $387 million, respectively. For the year ending December 31, 2025, we expect that our capital expenditures will be approximately $452 million. The decrease in expected capital expenditures is primarily driven by the larger investment in capital expenditures made during 2024 to support internal-use software and capacity expansion.

***Parent Company Credit Support***

Honeywell provides us with credit support in certain jurisdictions. To support us in selling products and services globally, Honeywell entered into and may enter into contracts on behalf of us or issue parent company guarantees or letters of credit. Honeywell also provides similar credit support for some of our non-customer related activities, including procuring letters of credit to backstop certain environmental matters. We expect to make alternative arrangements and procure our own letters of credit in connection with the separation. There are no known instances historically where payments or performance from Honeywell were required under parent company guarantees relating to our customer contracts. As such, no amounts related to parent company guarantees have been recorded by us in the Combined Financial Statements as of or for the years ended December 31, 2024 and 2023.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***Off-Balance Sheet Arrangements***

We do not engage in any off-balance sheet financial arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, net sales or expenses, results of operations, liquidity, capital expenditures, or capital resources.

**CRITICAL ACCOUNTING ESTIMATES**

The preparation of our Combined Financial Statements in accordance with GAAP is based on the selection and application of accounting policies that require us to make significant estimates and assumptions about the effects of matters that are inherently uncertain. Many estimates and assumptions involved in the application of accounting principles have a material impact on reported financial condition and operating performance and on the comparability of such reported information over different reporting periods. Critical accounting estimates or assumptions are those where the nature of the estimates or assumptions is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change, and the impact of the estimates and assumptions on financial condition or operating performance is material. We consider the estimates and assumptions discussed below to be critical to the understanding of our financial statements. Actual results could differ from our estimates and assumptions, and any such differences could be material to our Combined Financial Statements.

***Sales Recognition on Long-Term Contracts and Other Revenue Arrangements*** – We recognize revenue on an over time basis for certain equipment contracts with Defense and Space customers and for engineering services contracts. We recognize revenue over time as we perform on these contracts based on the continuous transfer of control to the customer. With control transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. We generally use the cost-to-cost input method of progress for our contracts because it best depicts the transfer of control to the customer that occurs as we incur costs. Under the cost-to-cost input method, the extent of progress towards completion is measured based on the proportion of costs incurred to date to the total estimated costs at completion of the performance obligation. Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion requires judgment. Contract revenues are largely determined by negotiated contract prices and quantities, modified by our assumptions regarding incentive, and award provisions associated with technical performance and price adjustment clauses (such as inflation or index-based clauses). Cost estimates are largely based on negotiated or estimated purchase contract terms, historical performance trends, and other economic projections. Significant factors that influence these estimates include inflationary trends, technical and schedule risks, internal and subcontractor performance trends, business volume assumptions, asset utilization, and anticipated labor agreements. Revenue and cost estimates are regularly monitored and revised based on changes in circumstances. Impacts from changes in estimates of net sales and cost of sales are recognized on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a performance obligation's percentage of completion. Anticipated losses on long-term contracts are recognized when such losses become evident.

Aerospace sells licenses and intellectual property to other parties. The Company recognizes Services sales in these arrangements when the perpetual licenses consist of distinct performance obligations sold to a customer and are determined to be part of our ordinary activities, a determination which may require judgment. Determining when control of distinct performance obligations in these arrangements has transferred to a customer also requires significant judgment and may be subjective in cases where it is necessary to coordinate with, or receive acceptance or consent from, regulatory or other parties, and when forms of ongoing support are provided by the Company to the customer. When judgment is required, the Company looks to, among other things, the recent history of the behavior of the customer or third parties and judgment is based on available information at the time.

***Income Taxes*** – On a recurring basis, we assess the need for a valuation allowance against our deferred tax assets by considering all available positive and negative evidence, such as past operating results, projections of future taxable income, enacted tax law changes, and the feasibility and impact of tax planning initiatives. Our projections of future taxable income include a number of estimates and assumptions regarding our volume, pricing and costs, as well as the timing and amount of reversals of taxable temporary differences.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, including resolution of any related appeals and litigation. We assess our income tax positions based upon our evaluation of the facts, circumstances, and information available at the reporting date. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.

See Note 2 Summary of Significant Accounting Policies of the Notes to Combined Financial Statements for further discussion of additional income tax policies.

***Goodwill*** – Our business combinations typically result in the recognition of goodwill. We engage independent third-party valuation specialists for assistance in the allocation of the purchase price and determination of the fair value of goodwill, which involves the use of accounting estimates and assumptions based on information available at or near the acquisition date. We believe the accounting estimates and assumptions are reasonable based on information available at the date of acquisition through historical experience and information obtained from management of the acquired entity; however, there is inherent uncertainty in the accounting estimates as assumptions are forward-looking and could be affected by future economic and market conditions.

Goodwill is subject to annual impairment testing as of October 1, or more frequent, if necessary. In testing goodwill, the fair value is estimated utilizing a discounted cash flow approach, including strategic and annual operating plans, adjusted for terminal value assumptions. These impairment tests use accounting estimates and assumptions. If actual results differ from such accounting estimates and assumptions it could materially impact our financial condition or operating performance. To address this uncertainty, we perform sensitivity analyses on key accounting estimates and assumptions. Once the fair value is determined, if the carrying amount exceeds the fair value, it is impaired. Any impairment is measured as the difference between the carrying amount and its fair value.

We perform annual goodwill impairment tests for our three reporting units using a quantitative assessment. Over the past three fiscal years, there have been no impairments.

***Definite-Lived Intangible Assets*** – Our business combinations typically result in the recognition of customer relationships, patents, and trademarks, in addition to other definite-lived intangible assets. The determination of fair value for definite-lived intangible assets, useful lives for amortization purposes, and whether or not intangible assets are impaired involves the use of accounting estimates and assumptions. The assumptions used in developing the accounting estimates may include business growth rates, sales volume, selling prices and costs, cash flows, and the discount rate selected. Changes to those assumptions could materially impact our financial condition or operating performance if actual results differ from such estimates and assumptions.

We evaluate the recoverability of the carrying amount of our definite-lived intangible assets whenever events or changes in circumstances indicate that the carrying amount of a definite-lived intangible asset group may not be fully recoverable. The principal factors in considering when to perform an impairment review are as follows:

• Significant under-performance (i.e., declines in sales, earnings, or cash flows) of a business or product line in relation to expectations;

• Annual operating plans or strategic plan outlook that indicates an unfavorable trend in operating performance of a business or product line;

• Significant negative industry or economic trends; or

• Significant changes or planned changes in our use of the assets.

Once it is determined that an impairment review is necessary, recoverability of assets is measured by comparing the carrying amount of the asset group to the estimated future undiscounted cash flows. If the carrying amount exceeds

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

the estimated future undiscounted cash flows, impairment is then measured as the excess, if any, of the carrying amount of the asset group over its fair value.

The fair value estimates are subject to changes in the economic environment, including market interest rates and expected volatility. Management believes the estimates of future cash flows and fair values are reasonable; however, changes in estimates due to variances from assumptions could materially affect the valuations.

***Contingent Liabilities*** – We are subject to a number of lawsuits, investigations, and claims (some of which involve substantial dollar amounts) arising out of the conduct of our business operations or those of previously owned or affiliated entities, including matters relating to commercial transactions, government contracts, product liability, employee benefit plans, intellectual property, legal, and environmental, health, and safety matters. We continually assess the likelihood of any adverse judgments or outcomes to our contingencies, as well as potential amounts or ranges of probable losses, and recognize a liability, if any, for these contingencies based on a careful analysis of each matter, and if appropriate, with the assistance of outside legal counsel and other experts. Such analysis includes making judgments concerning matters such as the outcome of negotiations and the impact of evidentiary requirements. Because most contingencies are resolved over long periods of time, liabilities may change in the future due to new developments (including new discovery of facts, changes in legislation, and outcomes of similar cases through the judicial system) or changes in assumptions.

See Note 18 Commitments and Contingencies of the Notes to Combined Financial Statements for further discussion of our contingent liabilities.

***Environmental Liabilities and Expenditures*** – We accrue for environmental remediation costs when it is probable that a liability has been incurred and a reasonable estimate of the liability can be made. Where the available information is sufficient to estimate the amount of liability, that estimate has been used. Where the information is only sufficient to establish a range of probable liability, and no point within the range is more likely than any other, the lower end of the range has been used. Estimated liabilities are determined based on existing remediation laws and technologies and our planned remedial responses, which are derived from environmental studies, sampling, testing, and analyses. Inherent uncertainties exist in such evaluations, primarily due to unknown environmental conditions, changing governmental regulations regarding liability, and emerging remediation technologies. These liabilities are adjusted periodically as remediation efforts progress and as additional technology, regulatory, and legal information become available.

Costs related to environmental remediation are charged to expense in the period that the associated liability is accrued.

See Note 18 Commitments and Contingencies of the Notes to Combined Financial Statements for further discussion of our environmental matters.

**OTHER MATTERS**

***Recent Accounting Pronouncements***

See Note 2 Summary of Significant Accounting Policies of the Notes to Combined Financial Statements for a discussion of recent accounting pronouncements.

**QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

***Foreign Currency Risks***

We operate a global business in a wide variety of foreign currencies and are exposed to market risk for changes in foreign currency exchange rates arising from international financing activities between subsidiaries, foreign currency denominated monetary assets and liabilities, and transactions arising from international trade. Although Honeywell uses financial instruments to hedge certain foreign currency risks, we are not fully protected against foreign currency fluctuations and our reported results of operations could be affected by changes in foreign currency exchange rates. To manage our exposures and mitigate the impact of currency fluctuations on the operations of our foreign subsidiaries, we hedge our main transactional exposures through the use of foreign exchange forward and option

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

contracts. Accordingly, the Combined Statements of Operations include the impact of Honeywell's derivative financial instruments that is deemed to be associated with our operations and has been allocated to us utilizing a reasonable allocation method. The fair values of outstanding derivative instruments have not been allocated to our Combined Balance Sheet. Following the separation, we intend to implement a foreign currency risk management program on our own behalf.

***Interest Rate Risk***

Our Combined Balance Sheet and Combined Statements of Operations do not include an attribution of Honeywell's third-party debt or interest expense from Honeywell because we are not the legal obligor of the debt and the borrowings were not directly attributable to our business. We expect to incur indebtedness in connection with the separation, at which time our exposure to interest rate risk is expected to increase.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**MANAGEMENT**

**Executive Officers Following the Distribution**

The following table sets forth information regarding the individuals who are expected to serve as executive officers of Aerospace following the distribution. Some of Aerospace's executive officers are currently executive officers and employees of Honeywell, but will cease to hold such positions upon the consummation of the separation.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| James E. Currier | 59 | President and Chief Executive Officer |

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*James E. Currier*, age 59, has served as President and Chief Executive Officer of Honeywell's Aerospace Technologies segment since August 2023, and is expected to serve as President and Chief Executive Officer of the Company following the separation and distribution. Previously, he spent nearly two decades in senior roles across the globe at Honeywell, including as President of the Electronic Solutions Strategic Business Unit for the Aerospace Business, President of the Aerospace Business's Aftermarket organization across Europe, Middle East, Africa and India, and Vice President of Airlines, North America. Since joining the Aerospace Business in 2006, Mr. Currier has held a wide range of leadership positions, including in business strategy development, aftermarket growth initiatives, customer experience, mergers and acquisitions, new product development, and sales. Before joining Honeywell, Mr. Currier was with United Technologies, overseeing the design, development, and testing of upper-stage rocket engine programs. Mr. Currier earned his Bachelor of Science degree in Mechanical Engineering from the University of Miami and was inducted into the International Space Hall of Fame in 2014 for his role on the Delta Clipper X/XA program. Mr. Currier was chosen to lead Honeywell Aerospace and serve as a member of our Board because of his expertise in the aerospace industry, his strong customer relationships, his extensive experience within Honeywell, including managing the operations of the Aerospace Business, and his strong leadership abilities.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**DIRECTORS**

**Board of Directors Following the Distribution**

The following table sets forth information regarding those persons who are expected to serve on Aerospace's Board of Directors following completion of the distribution and until their respective successors are duly elected and qualified. Aerospace is in the process of identifying the other persons who are expected to serve on Aerospace's Board of Directors following the completion of the separation and will include information concerning those persons in an amendment to this information statement.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Craig Arnold | 65 | Chairman of the Board of Directors |
| James E. Currier | 59 | Director |

---

*Craig Arnold*, age 65, is expected to serve as the Chairman of the Board of Directors of the Company. Mr. Arnold is the former Chairman of the Board of Directors and Chief Executive Officer of Eaton Corporation, a global intelligent power management company. Prior to becoming Chairman and Chief Executive Officer of Eaton Corporation in 2016, Mr. Arnold served as the President and Chief Operating Officer of Eaton Corporation. Prior to that, Mr. Arnold served as Vice Chairman and Chief Operating Officer of Eaton Corporation's Industrial Sector from 2009 to 2015. Mr. Arnold previously worked for General Electric Company, where he held roles across the Appliances, Plastics and Lighting businesses. He serves as Lead Director of the Board of Directors of Medtronic and as a director of KKR, Procter & Gamble, the United Way of Greater Cleveland and the Salvation Army of Greater Cleveland. He graduated from California State University, San Bernardino with a bachelor's degree, and obtained a Master of Business Administration from Pepperdine University. Mr. Arnold was chosen as Chairman of our Board because of his extensive experience managing the operation of multinational industrial and technology companies (including within the aerospace industry), his experience as a chief executive officer and his background as an independent director for multinational public companies (including as chairman and as lead director).

*James E. Currier*, age 59, is expected to serve as a member of our Board. See "Executive Officers Following the Distribution" above for Mr. Currier's biography.

Upon completion of the distribution, Aerospace's amended and restated certificate of incorporation will provide that, until the annual shareowner meeting in 2030, Aerospace's Board of Directors will be divided into three classes, with each class consisting, as nearly as reasonably possible, of one-third of the total number of directors. The directors designated as Class I directors will have terms expiring at the 2027 annual meeting of shareowners. The directors designated as Class II directors will have terms expiring at the 2028 annual meeting of shareowners. The directors designated as Class III directors will have terms expiring at the 2029 annual meeting of shareowners. Commencing with the 2028 annual meeting until the board is no longer classified, directors elected to succeed those directors whose terms then expire will be elected for a term of office to expire at the 2030 annual meeting. Commencing with the 2030 annual meeting of shareowners, all directors will be elected annually and for a term of office to expire at the next annual meeting of shareowners, and Aerospace's Board of Directors will thereafter no longer be divided into classes.

**Director Independence**

Under our Corporate Governance Guidelines and Nasdaq listing requirements, a majority of our directors must be independent.

Before joining the Board of Directors and annually thereafter, each director will complete a detailed questionnaire that provides information about relationships that may affect the independence determination or that may otherwise require disclosure. The Nominating and Governance Committee then will complete an assessment considering all known relevant facts and circumstances about any relationship bearing on the independence of a director or nominee. In determining the independence of our directors, the Nominating and Governance Committee will consider sales and purchases of products and services, in the ordinary course of business, between Aerospace

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

(including its subsidiaries) and other companies, as well as charitable organizations, where nominees are or have been executive officers.

The Board of Directors is expected to affirmatively determine that all of the directors[, other than&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; who is employed by&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ,] are independent under the Independence Policy and Nasdaq requirements. Specifically, none of the directors[, other than &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ,] has a business, financial, family or other relationship with Aerospace that is considered material.

**Board Committees**

Effective upon the completion of the distribution, the Board of Directors will have the following three standing committees: the Audit Committee, the Nominating and Governance Committee, and the Compensation Committee. Each standing committee is expected to be composed exclusively of independent directors. Each standing committee will have the authority to retain independent advisors to assist in the fulfillment of its responsibilities, to approve the fees paid to those advisors and to terminate their engagements. The Board of Directors is expected to adopt written charters for each committee, which will be made available on our website in connection with the distribution.

***Audit Committee***

The Audit Committee will be established in accordance with Section 3(a)(58)(A) and Rule 10A-3 under the Exchange Act. The responsibilities of the Audit Committee will be more fully described in the Audit Committee charter. We anticipate that the Audit Committee, among other duties, will assist the Board in overseeing:

• management's conduct of our financial reporting process (including the development and maintenance of systems of internal accounting and financial controls);

• the integrity of our financial statements;

• our compliance with legal and regulatory requirements;

• the qualifications, independence and compensation of our outside auditor;

• the performance of our internal audit function;

• the outside auditor's annual audit of our financial statements;

• our risk management assessment; and

• the preparation of certain reports required by the rules and regulations of the SEC.

***Compensation Committee***

The responsibilities of the Compensation Committee will be more fully described in the Compensation Committee charter, and we anticipate that they will include, among other duties:

• determining and approving the compensation of our Chief Executive Officer;

• reviewing and approving the compensation of our other executives;

• overseeing the Chief Executive Officer succession planning process, including an emergency succession plan;

• reviewing the operation and structure of our compensation program; and

• preparing any report on executive compensation required by the rules and regulations of the SEC.

***Nominating and Governance Committee***

The responsibilities of the Nominating and Governance Committee will be more fully described in the Nominating and Governance Committee charter, and we anticipate that they will include, among other duties:

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

• identifying, reviewing and recommending to the Board individuals for election to the Board consistent with the qualifications and criteria for election to the Board established by our Board from time to time;

• adopting and reviewing policies regarding the consideration of candidates for the Board proposed by shareowners and other criteria for membership on the Board;

• reviewing and recommending to the Board changes to the Corporate Governance Guidelines applicable to Aerospace and reviewing Aerospace's policies and programs relating to health, safety, and environmental matters and other similar matters; and

• overseeing the Board's annual self-evaluation.

**How We Make Pay Decisions and Assess Our Programs**

During our fiscal year ended December 31, 2025, Aerospace was not an independent public company, and did not have a compensation committee or any other committee serving a similar function. Decisions regarding the compensation of those who currently serve as our executive officers were made by Honeywell, as described in the section of this information statement entitled "Compensation Discussion and Analysis."

**Corporate Governance**

***Our Commitment to Sound Corporate Governance***

Aerospace will be committed to strong corporate governance practices that will be designed to maintain high standards of oversight, accountability, integrity, and ethics, while promoting long-term growth in shareowner value.

Our governance structure will enable independent, experienced and accomplished directors to provide advice, insight and oversight to advance the interests of Aerospace and our shareowners. Aerospace will strive to maintain sound governance standards, to be reflected in our Certificate of Incorporation and Bylaws, Code of Business Conduct, Corporate Governance Guidelines, our systematic approach to risk management, and in our commitment to transparent financial reporting and strong internal controls.

The following documents will be made available on our website www.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .com/&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in connection with the separation, where you will be able to access information about corporate governance at Aerospace, including:

• our Corporate Governance Guidelines;

• our Board Committee Charters;

• our Certificate of Incorporation and Bylaws;

• our Code of Business Conduct;

• our Related Person Transaction Policy;

• our Insider Trading Policy; and

• information about how to communicate concerns to the Board of Directors.

**The Aerospace website and the information contained therein or connected thereto are not incorporated into this information statement or the registration statement of which this information statement forms a part, or in any other filings with, or any information furnished or submitted to, the SEC.**

***Shareowner Engagement***

Aerospace will engage with shareowners on a regular basis throughout the year to discuss a range of topics, including performance, strategy, risk management, executive compensation, corporate governance and sustainability. Each year after the proxy statement relating to our annual meeting of shareowners is filed, we will plan to hold discussions that generally focus on the clarity and effectiveness of our disclosures and on matters that

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are of interest to investors. We will also plan to discuss other topics with investors, which may include leadership structure, corporate social responsibility and sustainability initiatives.

***Board Leadership Structure***

The Corporate Governance Committee is expected to routinely review our governance practices and board leadership structure.

As of the completion of the distribution, it is expected that Craig Arnold will serve as Chairman.

***Board Self-Evaluation Process***

The Board is expected to evaluate annually its own performance and that of the standing committees and individual directors. The Nominating and Governance Committee will be responsible for and oversee the design and manner in which the annual self-evaluation is completed. The Chairman, if an independent director, or the Lead Director, if the Chairman is not an independent director, and the Chairman of the Nominating and Governance Committee will jointly lead the self-evaluation process.

The self-evaluation will focus on the Board's overall effectiveness and will inform the Board's consideration of certain elements, including the following:

• board roles;

• succession planning;

• refreshment objectives, including composition and diversity; and

• opportunities to increase the Board's effectiveness, including the addition of new skills and expertise.

The self-evaluation process is expected to generate constructive comments and discussion, and is expected to result in improvements to our corporate governance practices and the Board's effectiveness.

***Board Criteria and Nominating Process***

The Nominating and Governance Committee is expected to regularly review with the Board the key skills and areas of expertise that are most important in selecting candidates to serve as directors, taking into account Aerospace's growth and commercial strategy and the mix of capabilities and experience already represented on the Board. As part of the Board's annual evaluation of its overall effectiveness, the Board will consider whether its composition reflects the diversity of experience, skills, and perspectives that continuously enhance the Board's ability to carry out its oversight role and to effectively support Aerospace's growth and commercial strategy. Based on these considerations, the Board will adjust the priority it gives to various director qualifications when identifying candidates.

The Corporate Governance Guidelines and bylaws to be adopted in connection with the distribution will not impose term limits because such limits may unnecessarily cause the loss of experience and expertise important to the optimal operation of the Board. However, the Board's self-evaluation process, including individual director evaluations, is expected to contribute to the Nominating and Governance Committee's consideration of each incumbent director as part of the nomination process.

The bylaws will establish advance notice procedures with respect to the nomination by shareowners of candidates for election as a director. Eligible shareowners will also be permitted to include their own director nominees in Aerospace's proxy materials under the circumstances set forth in the amended and restated bylaws. Generally, a shareowner or a group of up to 20 shareowners, who has maintained continuous qualifying ownership of at least 3% of Aerospace's outstanding common stock for at least three years, will be permitted to include director nominees constituting up to 20% of the Board in the proxy materials for an annual meeting of shareowners if such shareowner or group of shareowners complies with the other requirements set forth in the proxy access provision of the amended and restated bylaws. A copy of the bylaws will be available on our website.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

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***Board Qualification Standards***

The initial Board will be selected through a process involving both Honeywell and Aerospace. The initial directors who will serve after the separation will begin their terms substantially concurrently at the time of the distribution, with the exception of one independent director who will begin his or her term prior to the date on which "when-issued" trading of our common stock commences and will serve on our Audit Committee.

***Code of Business Conduct***

Prior to the completion of the separation, we will adopt a written code of business conduct (which will apply to all employees, officers and directors) that is designed to deter wrongdoing and to promote, among other things:

• honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

• the protection of the confidentiality of our non-public information;

• the responsible use of and control over our assets and resources;

• full, fair, accurate, timely and understandable disclosure in reports and documents that we file with the SEC and other regulators and in our other public communications;

• compliance with applicable laws, rules and regulations; and

• accountability for adherence to the code of business conduct and prompt internal reporting of any possible violation of the code of business conduct.

***Communications with Non-Management Members of the Board of Directors***

Generally, it is the responsibility of our management to speak for us in communications with outside parties, but we intend to set forth, in our corporate governance policies, certain processes by which shareowners and other interested third parties may communicate with non-management members of the Board.

***Procedures for Approval of Related Persons Transactions***

Aerospace will adopt a written policy for the review of transactions with related persons (the "Related Person Transactions Policy"). The Related Person Transactions Policy will require review, approval or ratification of transactions that remain ongoing and have a remaining term of more than twelve months or transactions exceeding $120,000 in which Aerospace is a participant and in which an Aerospace director (or nominee to become a director), executive officer, a beneficial owner of 5% or more of Aerospace's outstanding shares, or an immediate family member or certain affiliated entities of any of the foregoing persons has a direct or indirect material interest. Any such transactions will be required to be reported for review by the General Counsel, who will assess whether the transaction is a transaction with a related person, as such term is defined under Aerospace's policy and the relevant SEC rules. Following this review, the Nominating and Governance Committee will determine whether the transaction can be approved or not, based on whether the transaction is determined to be in, or not inconsistent with, the best interests of Aerospace and its shareowners. In making this determination, the Nominating and Governance Committee will take into consideration, among other things, the terms of the transaction and the terms available to unrelated third parties or to employees generally.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

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**DIRECTOR COMPENSATION**

Following the distribution, we expect that our Nominating and Governance Committee will periodically review and make recommendations to our Board of Directors regarding the form and amount of compensation for non-employee directors. Directors who are also our employees are expected to receive no compensation for service on our Board of Directors. Honeywell has approved an initial director compensation program for Aerospace that is designed to enable continued attraction and retention of highly qualified directors and to address the time, effort, expertise and accountability required of active Board of Directors membership. This program is described in further detail below.

**Annual Compensation**

In general, we believe that annual compensation for non-employee directors should consist of both a cash component, designed to compensate members for their service on our Board of Directors and its committees, and an equity component, designed to align the interests of directors and stockholders and, to create an incentive for continued service on our Board of Directors, generally vesting on the earlier of the first anniversary of the grant date and the Annual Meeting of Stockholders.

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| | |
|:---|:---|
| **Cash Retainer** | $120000 |
| **Board Chairman – Additional Cash Retainer** | $175000 |
| **Board Committee Membership – Additional Cash Retainer** | Audit Committee Chair: $30,000<br>Audit Committee Member: $15,000<br>Compensation Committee Chair: $20,000<br>Compensation Committee Member: $10,000<br>Nominating and Governance Committee Chair: $20,000<br>Nominating and Governance Committee Member: $10,000<br>Other Committee Chair: $20,000 <br>Other Committee Member: $10,000 |
| **Annual Equity Grants** |  |
| **Restricted stock units vest on the earliest of the first anniversary of the date of grant, the director's death or disability, or removal from the Board coincident with the occurrence of a change in control.** | Each non-employee director receives an annual restricted stock unit grant with a target value of $190,000 on the date of the Annual Meeting of Stockholders. New directors in 2026 will receive a prorated award for the partial year commencing on the distribution. |

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Cash elements are paid in quarterly installments and prorated for partial years of service.

For a summary of the treatment of Honeywell equity awards held by members of the Honeywell Board of Directors who are joining our Board of Directors in connection with the distribution, please see section "The Separation and Distribution—Treatment of Equity-Based Compensation."

**Other Benefits**

Non-employee directors will also be provided with $350,000 in business travel accident insurance.

**Stock Ownership Guidelines**

We expect to adopt a stock ownership policy pursuant to which each non-employee director, while serving as a director of Aerospace, must hold Aerospace common stock (including unvested restricted stock units) with a market value of at least five times the annual cash retainer (or $600,000) before being permitted to sell any Aerospace common stock holdings, including net shares from vesting of restricted stock unit grants (i.e., shares vested less shares required to pay applicable taxes).

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

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**COMPENSATION DISCUSSION AND ANALYSIS**

**Introduction**

While the anticipated Aerospace executive compensation programs and policies have been discussed with the Management Development and Compensation Committee of Honeywell's board of directors (the "Honeywell MDCC"), those programs and policies remain subject to review and approval by Aerospace's own Compensation Committee. Aerospace is currently a part of Honeywell, and its Compensation Committee has not yet been formed.

For purposes of this Compensation Discussion and Analysis ("CD&A") and the disclosure that follows, at the time of this filing, Mr. Currier, who currently serves as the President and Chief Executive Officer of Honeywell's Aerospace Technologies segment, and is expected to serve as our President and Chief Executive Officer following the distribution, is the only individual who would have been considered an executive officer of the Aerospace Business in 2025. We refer to Mr. Currier as our "named executive officer" or "NEO" for purposes of the CD&A and the disclosure that follows. The CD&A discusses Honeywell's historical compensation programs as applied to Mr. Currier, and outlines certain aspects of Aerospace's anticipated post-distribution compensation structure for Mr. Currier. To the extent additional Aerospace executives are identified who would have been considered executive officers of the Aerospace business in 2025, they will be added in an amendment to this filing.

After the distribution, we will review the compensation for all of our executive officers and determine the appropriate compensation, benefits and perquisites for them, and accordingly the compensation, benefits and perquisites provided to them after the distribution will not necessarily be the same as those discussed below.

**Executive Compensation Philosophy and Approach**

***Honeywell Practice***

Honeywell's executive compensation program creates long-term shareowner value through four key objectives:

• **Attract and Retain World-Class Leadership Talent** with the skills and experience necessary to develop and execute business strategies, drive superior financial results, and nimbly adapt and react to constantly evolving end-market conditions in an enterprise with the company's scale, breadth, complexity, and global footprint.

• **Emphasize Variable, At-Risk Compensation** with an appropriate balance of near-term and long-term objectives that align executive and shareowner interests.

• **Pay for Superior Results and Sustainable Growth** by rewarding and differentiating among executives based on the achievement of enterprise, business unit, and individual objectives as well as efforts to advance Honeywell's long-term growth initiatives.

• **Manage Risk Through Oversight and Compensation Program Design Features and Practices** that balance short-term and long-term incentives, are not overly leveraged, and cap maximum payments.

***Going Forward***

We anticipate that our executive compensation objectives and approach will initially be similar to Honeywell's. Following the distribution, our Compensation Committee will review these objectives and approach to ensure they meet our business needs and strategic objectives.

**Compensation Process**

In carrying out its responsibilities, the Honeywell MDCC balances a number of important considerations, including:

• The importance of aligning pay with company and individual performance.

• The need to attract, retain, and reward executives with a proven track record of delivering consistent financial and operating results and driving "seed-planting" initiatives that will create sustainable long-term shareowner value.

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• The complex multi-industry and global nature of Honeywell's businesses and the importance of growth outside of the United States for future success.

• The importance of maintaining and executing on a thorough and rigorous succession planning process.

Key factors that shape the Honeywell MDCC's overall assessment of performance and appropriate levels of compensation include:

• Operational and financial performance for the entire company and the relevant business units.

• Robust financial and operating goals and targets for each executive.

• Business/macroeconomic conditions impacting the industries in which Honeywell's businesses operate.

• Execution against strategic initiatives and the impact of investments that will benefit financial performance in future years.

• Each executive's long-term leadership potential and associated retention risk.

• The senior executive development and succession plan.

• Total shareowner return (TSR).

• Trends and best practices in executive compensation.

• Peer group comparisons, including performance, pay levels, and related practices.

The Honeywell MDCC reviews these factors over various time periods to ensure a strong linkage between pay and performance and to provide historical context and an understanding of how current compensation decisions may affect future wealth accumulation and executive retention.

On an annual basis, the Honeywell MDCC reviews information provided by its independent compensation consultant regarding compensation paid to similarly situated executive officers at compensation peer group companies as a point of reference. Similarly, third-party survey data or published reports may be utilized as a general indicator of relevant market conditions. The Honeywell MDCC does not target a specific competitive position relative to the market in making its compensation determinations.

***Going Forward***

We anticipate that our executive compensation process upon the distribution will generally follow the same process as Honeywell's executive compensation process. Following the distribution, our Compensation Committee will review all aspects of its process and may make adjustments that it believes are appropriate in establishing our executive compensation process.

**Compensation Peer Group**

***Honeywell Practice***

To ensure appropriate levels of executive officer compensation and the alignment of pay and performance, the Honeywell MDCC believes it is important to understand how Honeywell compares to other relevant companies.

On an annual basis, the Honeywell MDCC reviews information provided by its independent compensation consultant regarding compensation paid to similarly situated executive officers at a group of companies that are considered "Honeywell's Compensation Peer Group" and assesses Honeywell's financial performance against these companies. Although the Honeywell MDCC does not target a specific competitive position relative to its comparator group, this information provides the Honeywell MDCC (and the independent directors of the full Honeywell board of directors in the case of the Honeywell CEO) a point of reference when making its compensation determinations with respect to the Honeywell NEOs. In addition, the Honeywell MDCC periodically reviews relative financial

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

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performance against a subset of companies with complex multi-industry characteristics, like Honeywell, or relevant indices.

The companies selected by the Honeywell MDCC for inclusion in Honeywell's 2025 Compensation Peer Group have one or more of the following attributes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Business operations with similar scope and complexity to Honeywell.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Industrial companies with technology drivers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Peer group overlap with potential peer (e.g., peer of peer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Global scope of operations and/or diversified product lines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Within reasonable range of sales and/or market capitalization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Demonstrated competitor for executive talent.

The Honeywell MDCC reviews the appropriateness of Honeywell's Compensation Peer Group companies on an annual basis and discusses whether any changes are necessary. No changes were made to Honeywell's Compensation Peer Group in 2025.

The following table lists Honeywell's Compensation Peer Group companies for 2025:

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| | | |
|:---|:---|:---|
| **Aerospace & Defense** | **Machinery** | **Chemicals** |
| The Boeing Company | Deere & Company | DuPont de Nemours, Inc. |
| General Dynamics Corporation | Caterpillar Inc. | Dow Inc. |
| Lockheed Martin Corporation | Illinois Tool Works Inc. |  |
| RTX Corporation |  |  |
| **Electrical Equipment** | **Oil & Gas** | **Industrial Conglomerates** |
| Eaton Corporation plc | Schlumberger Limited | 3M Company |
| Emerson Electric Co. | Phillips 66 | General Electric Company |
| **Building Products** | **Technology/Communications Equip.** | **Technology/Medical Equipment** |
| Johnson Controls International plc | Cisco Systems, Inc. | Medtronic plc |

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***Going Forward***

It is anticipated that prior to the distribution, the Honeywell MDCC, with recommendations from its independent compensation consultant, Pay Governance, will adopt an Aerospace peer group to help inform its decision-making with respect to Aerospace's executive compensation program and ensure that such program supports Aerospace's recruitment and retention needs and is fair and efficient.

**Components of Executive Compensation and Benefits**

***Honeywell Practice***

The following table provides an overview of Honeywell's executive compensation program as applied to our NEO and describes the link between each of its regular direct compensation elements and its business strategy and performance:

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|:---|:---|:---|:---|:---|
| | | **Element** | **Description** | **Link to Strategy and Performance** |
| **FIXED** |  | **BASE SALARY** | • Base salaries are determined based on scope of responsibility, years of experience, and individual performance. | • To attract and compensate high-performing and experienced leaders at a competitive level of cash compensation. |
| **VARIABLE** | **SHORT - TERM** | **ANNUAL INCENTIVE COMPENSATION PLAN (ICP)** | • 80% of payouts is based on formulaic determination against pre-established financial metrics. For Mr. Currier, half of his calculated award is tied to performance metrics of the Aerospace Technologies business.<br>• 15% of payouts are determined based on assessment of individual performance.<br>• 5% of payouts are determined based on Corporate Responsibility KPIs. | • To motivate and reward executives for achieving annual corporate, business unit, and functional goals and Corporate Responsibility KPIs in key areas of financial and operational performance. |
| **VARIABLE** | **LONG-TERM INCENTIVES (LT)** | **PERFORMANCE STOCK UNITS (PSUs)**<br>**(2025-2027)** | • 50% of annual LTI.<br>• PSU earned awards will be determined at the end of the three-year period based on four equally weighted metrics: three-year total shareowner return (TSR) relative to the 2025 Compensation Peer Group and cumulative revenue, average return on investment (ROI), and average segment margin rate measured over a three-year period. | • Focuses executives on the achievement of specific long-term financial performance goals as well as performance goals tied to shareowner returns. Directly aligns the interests of our executives with shareowners. |
| **VARIABLE** | **LONG-TERM INCENTIVES (LT)** | **STOCK OPTIONS** | • 25% of annual LTI. | • Directly aligns the interests of our executives with shareowners. Stock options only have value for executives if operating performance results in stock price appreciation. |
| **VARIABLE** | **LONG-TERM INCENTIVES (LT)** | **RESTRICTED STOCK UNITS (RSUs)** | • 25% of annual LTI. | • Strengthens key executive retention over relevant time periods to ensure consistency and execution of long-term strategies. |

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***Going Forward***

We anticipate that our executive compensation program upon the distribution will generally include the same elements as Honeywell's executive compensation programs. Following the distribution, our Compensation Committee will review the primary elements of our executive compensation program, and mix thereof, to ensure

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

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they meet our business needs and strategic objectives. This will include a review of base salary as well as short-term and long-term incentive programs and other elements of compensation.

**2025 Executive Compensation Decisions**

Prior to the effectiveness of the registration statement of which this information statement forms a part, information regarding the 2025 compensation of the NEO will be disclosed in this CD&A in accordance with the rules and regulations of the SEC.

**Other Compensation and Benefits Programs**

***Retirement Plans***

*Honeywell Practice*

Honeywell offers various retirement benefits to its NEOs. Specifically, depending upon when and where they joined Honeywell, some Honeywell NEOs may participate in broad-based plans, including a defined benefit pension plan and a 401(k) savings plan that provides matching Honeywell contributions. Honeywell also maintains an unfunded supplemental retirement plan to replace the portion of an executive's pension benefit that cannot be paid under the broad-based plans because of IRS limitations.

*Going Forward*

We anticipate that we will adopt similar retirement plans as those maintained by Honeywell upon the distribution. Following the distribution, our Compensation Committee will review the retirement plans adopted by Aerospace to ensure that they meet our business needs and strategic objectives.

***Non-Qualified Deferred Compensation Plans***

*Honeywell Practice*

Honeywell executives may choose to participate in certain non-qualified deferred compensation plans to permit retirement savings in a tax-efficient manner. Executives can elect to defer up to 100% of their annual incentive compensation plan awards. In addition, executives may also participate in the Honeywell Excess Benefit Plan and Supplemental Savings Plan (the "SS Plan") to defer base salary that cannot be contributed to Honeywell's 401(k) savings plan due to IRS limitations. These amounts are matched by Honeywell only to the extent required to make up for a shortfall in the available match under the 401(k) savings plan due to IRS limitations. Deferred compensation balances earn interest at a fixed rate based on Honeywell's 15-year cost of borrowing, which is subject to change on an annual basis (4.91% for 2025). Matching contributions are treated as if invested in Honeywell common stock.

Honeywell limits deferred compensation amounts owed to executives by having the interest rate accruing on deferrals under the SS Plan be a rate that changes annually based on Honeywell's 15-year cost of borrowing, and requiring payment of the SS Plan deferrals to begin shortly after termination of employment in a lump sum unless the participant leaves Honeywell after reaching retirement (age 55 with 10 years of service).

*Going Forward*

Pursuant to the Employee Matters Agreement, we will adopt substantially similar non-qualified deferred compensation plans as the ones maintained by Honeywell upon the distribution to assume liabilities relating to Aerospace employees under the Honeywell plans. Following the distribution, our Compensation Committee will review the non-qualified deferred compensation plans adopted by Aerospace to ensure that they meet our business needs and strategic objectives.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

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***Benefits and Perquisites***

*Honeywell Practice*

Honeywell's NEOs are entitled to participate in Honeywell-wide benefits such as life, medical, dental, and accidental death and disability insurance, which are competitive with other similarly sized companies. Honeywell's NEOs participate in these programs on the same basis as the rest of its salaried employees. Honeywell also maintains low-cost excess liability coverage for all executive-level personnel, including the Honeywell NEOs. Honeywell's NEOs are also eligible for an annual executive physical, and Charlotte-based officers participate in a low-cost regional concierge medical service program.

*Going Forward*

We anticipate that our benefits and perquisites upon the distribution will generally include the same benefits and perquisites as provided by Honeywell. Following the distribution, our Compensation Committee will review the benefits and perquisites provided by Aerospace to ensure they meet our business needs and strategic objectives.

**Additional Compensation Matters**

***Policies and Practices Related to the Grant of Certain Equity Awards***

*Honeywell Practice*

Honeywell does not schedule the grant of stock options or other equity awards in anticipation of the disclosure of material nonpublic information, and Honeywell does not schedule the disclosure of material nonpublic information based on the timing of grants of stock options or other equity awards. Honeywell has not adopted a formal policy that would require Honeywell to grant, or to avoid granting, stock options or other equity awards at certain times. In practice, however, as part of Honeywell's regular annual long-term incentive ("LTI") grant process, the Honeywell MDCC generally has granted stock options and other equity awards to its executives at their meeting in or around February of each year. The full Honeywell board of directors is responsible for determining Chairman and CEO compensation which includes the granting their equity awards. Similarly, annual grants of equity awards to Honeywell's non-employee directors generally have been made by Honeywell's board of directors each year at its meeting on the date of the annual meeting of shareowners. The dates for those Honeywell MDCC and Honeywell board of directors meetings generally are set well in advance and on a fairly consistent cadence from year to year. However, the Honeywell MDCC and the Honeywell board of directors are also authorized to grant stock options and other equity awards at other times during the year. For example, stock options and other equity awards may be, and have been, granted in connection with new hires and promotions.

*Going Forward*

We anticipate that Aerospace's incentive compensation grant practices initially will be comparable to those of Honeywell. Following the distribution, our Compensation Committee and management will review such practices to ensure they meet our business and strategic needs and the objectives of our executive compensation program.

***Stock Ownership Guidelines***

*Honeywell Practice*

The Honeywell MDCC believes that Honeywell executives more effectively pursue shareowners' long-term interests if they hold substantial amounts of stock. Accordingly, the Honeywell MDCC maintains minimum stock ownership guidelines for all executive officers.

Under these guidelines, Honeywell's CEO must hold shares of common stock equal in value to ten times his current annual base salary. Other executive officers of Honeywell are required to own shares equal in value to five times their current base salary. Shares used in determining whether these guidelines are met include shares held personally, equivalent shares held in qualified and non-qualified retirement accounts, and outstanding RSUs. Executive officers have five years following their appointment to meet these guidelines.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

Honeywell's stock ownership guidelines require officers to hold for at least one year 100% of the "net shares" obtained from RSUs that vest and the "net shares" issued from PSUs. "Net shares" means the number of shares issued when RSUs vest or PSUs are earned, less the number of shares withheld or sold to pay applicable taxes. After the one-year holding period, officers may sell net shares or net gain shares (subject to pre-approval by Honeywell's CEO); however, after the sale, they must continue to meet the prescribed minimum stock ownership level.

*Going Forward*

We expect to adopt substantially similar stock ownership requirements in connection with the distribution; provided, however, that Aerospace's CEO will have a requirement to hold shares of common stock equal in value to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; times his annual base salary and other executive officers of Aerospace will be required to own shares equal in value to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; times their annual base salary.

***Recoupment/Clawback***

*Honeywell Practice*

Honeywell's board of directors determined that it is in Honeywell's best interests to ensure that all performance-based cash compensation and equity awards reflect actual performance. Consistent with such determination, Honeywell's board of directors adopted a Clawback Policy, in accordance with Rule 10D-1 of the Exchange Act and Nasdaq listing standards.

This Clawback Policy is administered by the Honeywell MDCC and enables Honeywell to recover from covered current and former executives certain incentive-based compensation in the event of an accounting restatement resulting from material noncompliance with any financial reporting requirements under the federal securities laws. Honeywell's Clawback Policy covers current and former executive officers, including all officers for purposes of Section 16 of the Exchange Act, and applies to any incentive-based cash compensation, that is granted, earned, or vested based wholly or in part on the attainment of any Honeywell financial reporting measure.

If Honeywell is required to prepare an accounting restatement due to material noncompliance with any financial reporting requirement under the securities laws, including any required accounting restatement to correct an error in previously issued financial statements that is material to the previously issued financial statements, or that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period, the Honeywell MDCC shall require any executive officer covered by Honeywell's Clawback Policy to reimburse or forfeit to Honeywell the amount of incentive-based compensation received by such executive officer based on the financial statements prior to the restatement that exceeds the amount such executive officer would have received had the incentive-based compensation been determined based on the financial restatement. The Honeywell MDCC will not consider the executive officer's responsibility or fault or lack thereof in enforcing Honeywell's Clawback Policy to recoup the amount described above.

In addition, Honeywell maintains the clawback guidelines set forth in Honeywell's Corporate Governance Guidelines. Under these guidelines, if the Honeywell board of directors determines that a covered executive officer engaged in any misconduct that materially contributes to, or causes, a significant restatement of financial results, this may, independently, result in the recoupment (or clawback) of performance-based incentive awards (both equity- and cash-based awards).

In addition, if during the two-year period following an executive officer's termination of employment with Honeywell, he or she commences employment with, or otherwise provides services to a Honeywell competitor, without the Honeywell MDCC's prior approval, or otherwise violates other restrictive covenants (including non-solicitation commitments), then Honeywell reserves the right, for awards issued under its stock incentive plans, to:

• Cancel all unexercised options and unvested equity; and

• Recover any gains attributable to options that were exercised, and any value attributable to RSUs and Performance Plan awards that were paid, during the period beginning 12 months before and ending two years after the executive officer's termination of employment.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

Honeywell has entered into non-competition agreements with each of its NEOs that preclude them from going to work for a competitor for up to two years after termination of employment. The list of competitors and the duration of the non-competition covenant has been tailored, in each case, to the executive officer's position and the competitive threat this represents. Because money damages cannot adequately compensate Honeywell for violations of these non-competition covenants, we have a full range of equitable remedies at our disposal to enforce these agreements, including the ability to seek injunctive relief.

*Going Forward*

Our Compensation Committee is expected to adopt substantially similar recoupment policies in connection with the distribution.

***Tax Deductibility of Executive Compensation***

*Honeywell Practice*

Section 162(m) of the Internal Revenue Code limits the federal income tax deduction for annual individual compensation to $1 million for Honeywell's "covered employees" without any exception for performance-based compensation, subject to a transition rule for certain written binding contracts in effect on November 2, 2017, and not materially modified after that date. Honeywell intends to comply with the transition rule for written binding contracts in effect on November 2, 2017, to the extent applicable, so long as the Honeywell MDCC determines that to be in Honeywell's best interest. The Honeywell MDCC seeks to closely align executive pay with performance, even if there is no longer a "performance-based" provision under Section 162(m), and, in any case, the Honeywell MDCC reserves the ability to structure compensation arrangements to provide appropriate compensation to Honeywell's executives, even where such compensation is not deductible under Section 162(m).

*Going Forward*

We anticipate that, similar to the approach followed by the Honeywell MDCC, following the distribution our Compensation Committee will review the tax impact of executive compensation on Aerospace as well as on our executive officers in addition to taking into account other considerations such as accounting impact, shareholder alignment, market competitiveness, effectiveness and perceived value to employees. Because many different factors influence a well-rounded, comprehensive and effective executive compensation program, some of the compensation provided to our executive officers may not be deductible under Section 162(m).

***Insider Trading Policies and Procedures***

*Honeywell Practice*

The Honeywell board of directors has adopted an insider trading policy that applies to all of Honeywell's directors, officers, and employees, as well as certain other designated individuals, to prevent the misuse of confidential information about Honeywell, as well as other companies with which Honeywell has a business relationship, and to promote compliance with all applicable securities laws. Among other things, the Honeywell's insider trading policy prohibits engaging in transactions in securities based on material non-public information and prohibits directors, executive officers, and certain other employees from buying or selling Honeywell's securities during certain periods, except pursuant to an approved trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended ("Rule 10b5-1"). Certain types of transactions in Honeywell's securities are also prohibited under Honeywell's insider trading policy, as described further under "Pledging and Hedging Transactions in Company Securities" (see below). In addition, certain individuals, including directors and officers, are required to receive pre-clearance from Honeywell's Corporate Secretary, and directors and officers are additionally required to receive prior approval from Honeywell's Chairman, prior to engaging in transactions in Honeywell's securities. Honeywell's insider trading policy also sets forth mandatory guidelines that apply to all executive officers, directors, and employees of Honeywell who adopt Rule 10b5-1 plans for trading in Honeywell's securities, which are intended to ensure compliance with Rule 10b5-1 and to conform to best practices with respect to the design and implementation of Rule 10b5-1 plans.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

It is also Honeywell's policy that Honeywell will not engage in transactions in Honeywell securities, or adopt any securities repurchase plans, while in possession of material non-public information relating to the Company or its securities other than in compliance with applicable law, subject to the policies and procedures adopted by Honeywell. Honeywell currently has a stock repurchase program in place. Repurchases may be made through a variety of methods, which could include open market purchases, accelerated share repurchase transactions, negotiated block transactions, Rule 10b5-1 plans, other transactions that may be structured through investment banking institutions or privately negotiated, or a combination of the foregoing.

*Going Forward*

We anticipate that Aerospace will adopt similar policies and procedures.

***Pledging and Hedging Transactions in Company Securities***

*Honeywell Practice*

Honeywell's executive officers, directors, and any of their respective designees are prohibited from pledging Honeywell's securities or using Honeywell's securities to support margin debt. All other employees of Honeywell must exercise extreme caution in pledging Honeywell's securities or using Honeywell's securities to support margin debt.

Hedging by directors, executive officers, employees on Honeywell's restricted trading list, any employee in possession of material nonpublic information, or any of their designees is prohibited, and it is strongly discouraged for all other employees. For this purpose, hedging means purchasing financial instruments (including prepaid variable forward sale contracts, equity swaps, collars, and interests in exchange funds) or otherwise engaging in transactions that are designed to hedge or offset any decrease in the market value of Honeywell stock held, directly or indirectly, by them, whether the stock was acquired as part of a compensation arrangement or otherwise.

All of Honeywell's employees, directors, and any of their respective designees are prohibited from engaging in short sales of Honeywell securities. Selling or purchasing puts or calls or otherwise trading in or writing options on Honeywell's securities by employees, officers, and directors is also prohibited.

*Going Forward*

We anticipate that Aerospace will adopt similar policies and procedures.

**Executive Compensation**

Prior to the effectiveness of the registration statement of which this information statement forms a part, executive compensation tables with respect to 2025 compensation for the NEO will be included in an amendment to this information statement.

**Aerospace 2026 Stock Incentive Plan**

Prior to the distribution, we expect our Board of Directors to adopt, and Honeywell, as our sole shareowner, to approve, the 2026 Stock Incentive Plan of Honeywell Aerospace Inc. and its Affiliates (the "Equity Plan"). The following summary of the material terms of the Equity Plan is qualified in its entirety by reference to the full text of the Equity Plan, the form of which will be filed as an exhibit to the Form 10 of which this Information Statement forms a part.

In addition, the Equity Plan will be used to settle outstanding Honeywell equity awards that will be converted into, or adjusted in a manner that results in the issuance of, awards that are denominated in our common stock following the distribution pursuant to the Employee Matters Agreement, which are referred to in this section as "Adjusted Awards." These Adjusted Awards will otherwise generally remain in effect pursuant to their existing terms and the terms of the plan under which they were originally granted. See the section entitled "Treatment of Equity-Based Compensation."

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

*Effective Date*. The Equity Plan will become effective upon the effective date of the Form 10 of which this Information Statement forms a part, provided that the plan will have been adopted by our Board of Directors and approved by Honeywell as our sole shareholder.

*Purpose of the Equity Plan*. The purpose of the Equity Plan is to aid the Company in recruiting and retaining highly qualified employees and other service providers who are in a position to contribute materially to our success and long-term objectives. We expect that awards of stock-based compensation and opportunities for stock ownership in Aerospace will provide incentives to our employees and other service providers to exert their best efforts for the success of our business and thereby align their interests with those of our shareowners.

*Shares Available for Awards*. If the Equity Plan is approved by Honeywell, as our sole shareowner, and our Board of Directors, it is expected that the maximum aggregate number of shares of our common stock that may be issued under all stock-based awards granted under the Equity Plan, including all Adjusted Awards, would be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. In addition, it is expected that the Equity Plan will limit the number of shares of common stock available for grant in the form of incentive stock options to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. Further, awards will be subject to minimum vesting conditions, such that no award will vest prior to the first anniversary of the grant date; provided, however, that Adjusted Awards will not be subject to the minimum vesting condition, the Compensation Committee may accelerate the vesting or waive the minimum vesting condition upon a participant's death or disability or other termination of service or a change in control, grant awards that are not subject to the minimum vesting condition with respect to 5% or less of the aggregate number of shares reserved for issuance under the Equity Plan, and grant awards to non-employee directors that are not subject to the minimum vesting condition.

Under the Equity Plan, it is expected that Aerospace will have the flexibility to grant different types of equity compensation awards, including stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock units and other awards based, in whole or in part, on the value of Aerospace equity, as well as cash-based awards. The grant, vesting, exercise and settlement of awards granted under the Equity Plan may be subject to the satisfaction of time- or performance-based conditions, as determined at or after the date of grant of an award under the Equity Plan.

In the event of any change in corporate structure that affects our outstanding common stock (*e.g.*, a cash or stock dividend, stock split, reverse stock split, spin-off, recapitalization, merger, reorganization etc.), our Compensation Committee shall make adjustments that it deems equitable or appropriate, in its sole discretion, including adjustments to the share limits described above, the number and type of shares subject to outstanding awards, or the purchase or exercise price of outstanding awards. In the case of any unusual or nonrecurring event (including events described in the preceding sentence) affecting the Company or changes in applicable laws, regulations or accounting principles, our Compensation Committee may make adjustments to outstanding awards in order to prevent dilution or enlargement of the benefits intended to be provided under the Equity Plan.

Shares that are subject to awards that are paid in cash, terminate, lapse or are canceled or forfeited or issued in connection with awards that are assumed, converted or substituted as a result of acquisition or a combination with another company would not be counted for purposes of the limits above. Shares that are tendered or withheld in payment of all or part of the exercise price or tax withholding amount relating to an award shall not be added back to the number of shares authorized under the Equity Plan. In addition, if stock appreciation rights are settled in shares upon exercise, the total number of shares actually issued upon exercise rather than the number of shares subject to the award would be counted against the number of shares authorized under the Equity Plan. For clarity, the foregoing share recycling provisions apply to all awards under the Equity Plan, including Adjusted Awards.

*Types of Awards*. Below is a general description of the types of awards that may be granted under the Equity Plan. Our Compensation Committee will determine the terms and conditions of awards on a grant-by-grant basis, subject to limitations contained in the Equity Plan.

• *Stock Options and Stock Appreciation Rights*. Stock options and stock appreciation rights may be granted in such amounts and subject to such terms and conditions as determined by our Compensation Committee. The Equity Plan permits the grant of both nonqualified stock options and incentive stock options. The maximum term of options is ten years. The aggregate fair market value as of the date of grant of the shares with respect to

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

which the incentive stock options awarded to any participant first become exercisable during any calendar year may not exceed $100,000. If this limit is exceeded, the incentive stock option will be treated as a nonqualified stock option. The exercise price for each share subject to a stock option or stock appreciation right will be equal to or greater than the fair market value of a share on the date of grant. The Equity Plan prohibits repricing of stock options or stock appreciation rights unless approved by shareholders. Stock options and stock appreciation rights will not be granted with dividend equivalents or reload features or any additional deferral features that would be subject to the requirements of Section 409A of the Code. The Equity Plan permits various methods for cashless exercise of stock options and withholding for the payment of taxes associated with the exercise of stock options, if applicable.

• *Restricted Stock*. Restricted stock may be granted in such amounts and subject to such terms and conditions as determined by our Compensation Committee, including time-based or performance-based vesting restrictions. Recipients of restricted stock will have all the rights of a shareholder with respect to the shares underlying the award, including the right to vote and to receive dividends or other distributions, except that the shares may be subject to a vesting schedule and forfeiture and generally may not be sold or transferred until the restrictions lapse. Dividends issued on restricted shares may be paid immediately or withheld and deferred in the participant's account.

• *Restricted Stock Units*. Restricted stock units may be granted in such amounts and subject to such terms and conditions as determined by our Compensation Committee, including time-based or performance-based vesting restrictions. Restricted stock units are denominated in shares and payable in shares (or cash equivalent in value to the shares or a combination thereof). Restricted stock units may be credited with dividend equivalents, which may be withheld and deferred in the participant's account subject to a vesting schedule, or used to credit additional restricted stock units that vest on the same schedule and subject to any other conditions as the underlying restricted stock units.

• *Other Stock-Based Awards*. The Compensation Committee may from time to time grant other awards that are denominated in or otherwise relate to shares. These awards may include phantom or hypothetical shares. The Compensation Committee will determine the terms and conditions that will apply to such other stock-based awards, including whether dividend equivalents will be credited, whether such award will be settled in cash or shares, or a combination thereof, when the restrictions lapse and any other required conditions are satisfied.

*Performance Awards; Double Trigger Change in Control Vesting*. Except as otherwise provided in award agreements, upon a Change in Control, performance goals underlying performance awards with incomplete performance periods will be deemed achieved at the greater of the target level and the actual level of performance measured as of the latest practicable date prior to the Change in Control, with any service-based vesting conditions continuing to apply unless otherwise determined by the Compensation Committee. Except as otherwise provided in award agreements, if a participant's service is terminated by the Company without cause or by the participant for good reason during the two-year period following a Change in Control, all outstanding awards (including performance awards converted into service-based awards) shall become vested and/or exercisable as of the effective date of such termination, and all conditions shall be waived with respect to such awards.

The Equity Plan defines the term "Change in Control" by incorporating the definition required under Section 409A of the Code, which requires a "change in control event" to be objectively determinable with no discretionary authority reserved to the Compensation Committee.

*Eligibility*. It is expected that employees and other service providers of Aerospace or its affiliates, including our non-employee directors, would be eligible to receive awards under the Equity Plan. In addition, holders of Adjusted Awards will participate in the Equity Plan with respect to such awards.

*Administration*. Our Compensation Committee will administer the Equity Plan. The Compensation Committee will have discretion and authority to interpret the Equity Plan, prescribe, amend and rescind rules and regulations regarding the Equity Plan, select employees and other service providers to receive awards, determine the form, terms and conditions of awards, and take other actions it deems necessary or advisable for the proper operation or administration of the Equity Plan, including, with respect to recipients located outside the United States, to grant

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

awards on terms and conditions that are different from those specified in the Equity Plan and to approve supplements or alternative versions of the Equity Plan to the extent necessary or desirable to accommodate differences in applicable law, tax policy, or custom. The Compensation Committee may delegate its duties and authority under the Equity Plan, except for the authority to grant and administer awards to certain senior executives.

The Board of Directors may also exercise the powers of our Compensation Committee with respect to the Equity Plan and awards granted thereunder at any time.

*Amendment and Termination*. The Equity Plan may be amended at any time by the Board of Directors without the approval of shareholders, except that no amendment will be effective until approval by shareholders to the extent required by applicable exchange rules or such amendment materially increases the number of shares issuable under the Equity Plan. No amendment of the Equity Plan made without the participant's written consent may materially adversely affect any of the participant's rights with respect to an outstanding award, unless necessary to comply with applicable law.

The Equity Plan will terminate upon the adoption of a resolution of the Board of Directors terminating the plan. Thereafter, no awards may be granted under the Equity Plan. However, termination of the Equity Plan will not alter or impair any rights or obligations of any participant without consent under any award previously granted under the Equity Plan.

**Aerospace Severance Plan for Designated Officers**

In connection with the distribution, Aerospace expects to adopt the Honeywell Aerospace Inc. Severance Plan for Designated Officers (the "Officer Severance Plan"). The Officer Severance Plan will become effective as of the distribution date, subject to the occurrence of the distribution and will provide certain severance benefits both before or after a change in control of the Company to ensure that our executives are motivated primarily by the needs of the businesses for which they are responsible, rather than circumstances that are outside the ordinary course of business.

In the case of a change in control, severance benefits are payable only if both parts of the "double trigger" are satisfied. That is, (i) there must be a CIC of our Company, and (ii)(A) the executive must be involuntarily terminated other than for cause, or (ii)(B) the executive must initiate the termination of his or her own employment for good reason.

The Officer Severance Plan will provide benefits in the event of an involuntary termination other than for cause and enhanced benefits in the event of an involuntary termination other than for cause by Aerospace or voluntary termination by the executive for good reason if the termination occurs within two years following a change in control event, including:

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| | | |
|:---|:---|:---|
| **Benefit** | **Non-Change in Control Involuntary Termination without Cause** | **Change in Control Termination without Cause or by Executive for Good Reason** |
| **Severance Benefits –** <br>**Cash Payment** | • 24 months of base salary for CEO, 12 months for CEO's direct reports<br>• Paid periodically, in cash<br>• Pro rata target bonus (for CEO and CEO's direct reports only) | • 36 months of base salary for CEO and 24 months for CEO's direct reports<br>• Paid in lump sum<br>• Pro rata bonus based on the greater of target percentage (prior to change in control) and the average target percentages applied in the three years prior to the date of termination (for CEO and CEO's direct reports only) |
| **Benefits Continuation** | • Medical and dental benefits are continued during the severance period at active employee contribution rates | • Medical and dental benefits are continued during the severance period at active employee contribution rates |

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

Benefits provided under the Officer Severance Plan are conditioned on the executive executing a full release of claims and certain non-competition and non-solicitation covenants in favor of the Company. The right to continued severance benefits under the plan ceases in the event of a violation of such covenants. In addition, we would seek to recover severance benefits already paid to any executive who violates such restrictive covenants.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

**Agreements with Honeywell and Aerospace**

Following the separation and distribution, Aerospace and Honeywell will operate separately, each as an independent public company. In connection with the separation, Aerospace will enter into a separation agreement with Honeywell to effect the separation and to provide a framework for Aerospace's relationship with Honeywell after the separation and will enter into certain other agreements, including a transition services agreement, a tax matters agreement, an employee matters agreement, an intellectual property license agreement and a trademark license agreement. These agreements will provide for the allocation between Aerospace and Honeywell of the assets, employees, liabilities, and obligations (including, among others, investments, property and employee benefits and tax-related assets and liabilities) of Honeywell and its subsidiaries attributable to periods prior to, at and after the separation and will govern the relationship between Aerospace and Honeywell subsequent to the completion of the separation.

The material agreements described below will be filed as exhibits to the registration statement on Form 10 of which this information statement is a part. The summaries of each of these agreements set forth below are qualified in their entireties by reference to the full text of the applicable agreements, which are incorporated by reference into this information statement.

**Separation Agreement**

We intend to enter into a separation agreement with Honeywell prior to or substantially concurrently with the distribution. The separation agreement will set forth our agreements with Honeywell regarding the principal actions to be taken in connection with the separation and distribution. It will also set forth other agreements that govern certain aspects of our relationship with Honeywell following the distribution.

***Transfer of Assets and Assumption of Liabilities***

The separation agreement will identify the assets to be transferred, the liabilities to be assumed and the contracts to be transferred to each of Aerospace and Honeywell as part of the separation of the Aerospace Business into an independent, publicly traded company, and will provide for when and how these transfers and assumptions will occur. In particular, the separation agreement will provide that, among other things, subject to the terms and conditions contained therein:

• certain assets related to the Aerospace Business, which we refer to as the "Aerospace Assets," will be retained by or transferred to Aerospace or one of its subsidiaries. Assets that are primarily related to the Aerospace Business will be Aerospace Assets, subject to limited exceptions (including with respect to pension plan assets);

• certain liabilities related to the Aerospace Business or the Aerospace Assets, which we refer to as the "Aerospace Liabilities," will be retained by or transferred to Aerospace. Liabilities that are primarily related to the Aerospace Business will be Aerospace Liabilities, subject to limited exceptions, including that Aerospace will assume environmental liabilities associated with all sites that are not or were not primarily related to the Automation Business (including sites that are or were primarily related to historic operations that were not operations of either the Aerospace Business or the Automation Business); and

• all of the assets and liabilities (including whether accrued, contingent, or otherwise) other than the Aerospace Assets and the Aerospace Liabilities (such assets and liabilities, other than the Aerospace Assets and the Aerospace Liabilities, we refer to as the "Honeywell Assets" and "Honeywell Liabilities," respectively) will be retained by or transferred to Honeywell.

Except as expressly set forth in the separation agreement or any ancillary agreement, neither Aerospace nor Honeywell will make any representation or warranty as to the assets, businesses or liabilities transferred or assumed as part of the separation, as to any approvals or notifications required in connection with the transfers, as to the value of or the freedom from any security interests of any of the assets transferred, as to the absence or presence of any defenses or right of setoff or freedom from counterclaim with respect to any claim or other asset of any of Aerospace

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

or Honeywell, or as to the legal sufficiency of any document or instrument delivered to convey title to any asset or thing of value to be transferred in connection with the separation. All assets will be transferred on an "as is," "where is" basis, and the respective transferees will bear the economic and legal risks that any conveyance will prove to be insufficient to vest in the transferee good and marketable title, free and clear of all security interests, that any necessary consents or governmental approvals are not obtained, or that any requirements of law, agreements, security interests or judgments are not complied with.

Unless the context otherwise requires, information in this information statement with respect to the assets and liabilities of the parties following the distribution is presented based on the allocation of such assets and liabilities pursuant to the separation agreement. The separation agreement will generally provide that in the event that the transfer of assets and liabilities (or a portion thereof) to Aerospace or Honeywell, as applicable, does not occur prior to the separation, then until such assets or liabilities (or a portion thereof) are able to be transferred, Aerospace or Honeywell, as applicable, will hold such assets or liabilities on behalf and for the benefit of the transferee so that all the benefits and burdens relating to such asset or liability inure to the party contractually allocated such asset or liability.

***The Distribution***

The separation agreement will also govern the rights and obligations of the parties regarding the distribution following the completion of the separation. On the distribution date, Honeywell will distribute to its shareowners that hold Honeywell common stock as of the record date for the distribution all of the issued and outstanding shares of Aerospace common stock on a pro rata basis. Shareowners will receive cash in lieu of any fractional shares.

***Conditions to the Distribution***

The separation agreement will provide that the distribution is subject to satisfaction (or waiver by Honeywell in its sole and absolute discretion) of certain conditions. These conditions are described under "The Separation and Distribution—Conditions to the Distribution." Honeywell will have the sole and absolute discretion to determine (and change) the terms of, and to determine whether to proceed with, the distribution and, to the extent that it determines to so proceed, to determine the record date for the distribution, the distribution date, and the distribution ratio.

***Shared Contracts***

Generally, shared contracts have been or will be assigned in part if so assignable, or amended, bifurcated, or replicated to facilitate the separation so that the appropriate party is contractually allocated the rights, benefits and the related portion of any liabilities inuring to the business of the appropriate party, and each party will use commercially reasonable efforts to obtain the consents required to partially assign, amend, bifurcate, or replicate any shared contract.

***Intercompany Accounts***

The separation agreement provides that, subject to certain specified exceptions in the separation agreement, schedules or any ancillary agreement, certain accounts that were formerly intercompany accounts within Honeywell will be settled prior to the separation.

***Claims***

In general, each party will assume liability for all pending, threatened, and unasserted legal matters related to its own business or its assumed or retained liabilities and will indemnify the other party for any liability to the extent arising out of or resulting from such assumed or retained legal matters.

***Releases***

Except as otherwise provided in the separation agreement, each party will fully release and forever discharge the other party and its subsidiaries and affiliates from all liabilities existing or arising from any acts or events occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions existing or alleged to have

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

existed on or before the distribution. The releases will not extend to obligations or liabilities under any agreements between the parties that remain in effect following the distribution pursuant to the separation agreement or any ancillary agreement. These releases are subject to certain exceptions set forth in the separation agreement.

***Indemnification***

The separation agreement provides for cross-indemnities that, except as otherwise provided in the separation agreement, are principally designed to place financial responsibility for the obligations and liabilities contractually allocated to us under the separation agreement with us and financial responsibility for the obligations and liabilities contractually allocated to Honeywell under the separation agreement with Honeywell.

Specifically, in the separation agreement, Aerospace will agree to indemnify, defend and hold harmless Honeywell and its affiliates, and Honeywell's and its affiliates' directors, officers, employees, and agents, from and against all liabilities relating to, arising out of or resulting from:

• the Aerospace Liabilities;

• Aerospace's failure to pay, perform or otherwise promptly discharge any of the Aerospace Liabilities, in accordance with their respective terms, whether prior to, at or after the distribution; and

• any breach by Aerospace of the separation agreement or any of the ancillary agreements.

Honeywell will agree to indemnify, defend and hold harmless Aerospace and its affiliates and Aerospace's and its affiliates' directors, officers, employees, and agents from and against all liabilities relating to, arising out of or resulting from:

• the Honeywell Liabilities;

• Honeywell's failure to pay, perform or otherwise promptly discharge any of the Honeywell Liabilities in accordance with their respective terms whether prior to, at or after the distribution; and

• any breach by Honeywell of the separation agreement or any of the ancillary agreements.

The separation agreement will also establish procedures with respect to claims subject to indemnification and related matters.

Indemnification with respect to taxes, and the procedures related thereto, will be governed by the tax matters agreement.

***Insurance***

Following the distribution, we will generally be responsible for obtaining and maintaining, at our own cost, our own insurance coverage for liabilities for which we assume responsibility, although we will continue to have coverage under certain insurance policies issued to Honeywell or other entities for certain matters that arise out of or relate to acts, omissions or occurrences that occurred prior to the distribution, subject to the terms, conditions, and exclusions of such policies.

***Further Assurances***

In addition to the actions specifically provided for in the separation agreement, except as otherwise set forth therein or in any ancillary agreement, Aerospace and Honeywell will agree in the separation agreement to use commercially reasonable efforts, on and after the distribution date, to take, or cause to be taken, all actions, and to do, or cause to be done, all things reasonably necessary under applicable laws, regulations, and agreements to consummate and make effective the transactions contemplated by the separation agreement.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***Dispute Resolution***

The separation agreement will contain provisions that govern, except as otherwise provided in any ancillary agreement, the resolution of disputes, controversies or claims that may arise between Aerospace and Honeywell related to the separation or distribution and that are unable to be resolved through good faith negotiations between Aerospace and Honeywell. These provisions will contemplate that efforts will be made to resolve disputes, controversies and claims by escalation of the matter to executives of the parties in dispute. If such efforts are not successful, one of the parties in dispute may submit the dispute, controversy or claim to binding arbitration, subject to the provisions of the separation agreement.

***Expenses***

Except as expressly set forth in the separation agreement or in any ancillary agreement, the party incurring the expense will be responsible for all costs and expenses incurred in connection with the separation incurred prior to the distribution date.

***Other Matters***

Other matters governed by the separation agreement will include, among others, access to financial and other information, confidentiality, access to and provision of records and separation of guarantees and other credit support instruments.

***Term, Amendment and Termination***

The term of the separation agreement will be perpetual unless and until terminated. The separation agreement will provide that it may be terminated, and the separation and distribution may be modified or abandoned, at any time prior to the distribution date in the sole discretion of the Honeywell Board of Directors without the approval of any person, including Aerospace or Honeywell shareowners. In the event of a termination of the separation agreement, no party will have any liability of any kind to the other party or any other person. After the distribution date, the separation agreement may not be amended or terminated, except by an agreement in writing signed by Aerospace and Honeywell.

**Transition Services Agreement**

Aerospace and Honeywell will enter into a transition services agreement in connection with the separation pursuant to which Aerospace and Honeywell and their respective affiliates will provide each other, on an interim, transitional basis, various services, including, but not limited to,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . The services generally will commence on the distribution date and terminate no more than two years following the distribution date.

**Tax Matters Agreement**

In connection with the separation, Aerospace and Honeywell will enter into a tax matters agreement that will govern the parties' respective rights, responsibilities and obligations with respect to taxes (including responsibility for taxes, entitlement to refunds, allocation of tax attributes, preparation of tax returns, control of tax contests, and other tax matters).

The tax matters agreement will provide special rules that allocate tax liabilities in the event the distribution, together with certain related transactions, fails to qualify as a transaction that is generally tax-free for U.S. federal income tax purposes under Sections 355 and 368(a)(1)(D) of the Code. Under the tax matters agreement, each party will be responsible for any taxes and related amounts imposed on Honeywell or Aerospace as a result of the failure to so qualify, to the extent that the failure to so qualify is attributable to actions, events or transactions relating to such party's respective stock, assets or business, or a breach of the relevant representations or covenants made by that party in the tax matters agreement.

In addition, the tax matters agreement will impose certain restrictions on Aerospace and its subsidiaries during the two-year period following the distribution that will be intended to prevent the distribution, together with certain related transactions, from failing to qualify as a transaction that is generally tax-free for U.S. federal income tax

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

purposes under Sections 355 and 368(a)(1)(D) of the Code. Specifically, during such period, except in specific circumstances, Aerospace and its subsidiaries will generally be prohibited from: (1) ceasing to conduct certain businesses, (2) entering into certain transactions or series of transactions pursuant to which all or a portion of the shares of Aerospace common stock would be acquired or all or a portion of certain assets of Aerospace and its subsidiaries would be acquired, (3) liquidating or merging or consolidating with any other person, (4) issuing equity securities beyond certain thresholds, (5) repurchasing Aerospace stock other than in certain open-market transactions, or (6) taking or failing to take any other action that would cause the distribution, together with certain related transactions, to fail to qualify as a transaction that is generally tax-free for U.S. federal income tax purposes under Sections 355 and 368(a)(1)(D) of the Code.

The term of the tax matters agreement will be perpetual unless and until terminated.

**Employee Matters Agreement**

Aerospace and Honeywell will enter into an employee matters agreement in connection with the separation to allocate liabilities and responsibilities relating to employment matters, employee compensation and benefits plans and programs, and other related matters. The employee matters agreement will govern certain compensation and employee benefit obligations with respect to the current and former employees and non-employee directors of each company.

The employee matters agreement will provide that, unless otherwise specified, each party will be responsible for liabilities associated with current and former employees of such party and its subsidiaries.

The employee matters agreement will also govern the terms of equity-based awards granted by Honeywell prior to the separation. See "The Separation and Distribution—Treatment of Equity-Based Compensation."

The term of the employee matters agreement will be perpetual unless and until terminated.

**Intellectual Property License Agreement**

Aerospace and Honeywell will enter into an intellectual property license agreement pursuant to which each of Aerospace and Honeywell will grant to the other non-exclusive, perpetual licenses under certain of the patents and other intellectual property rights owned by the licensing party or its group as of the distribution, excluding rights in trademarks and certain other intellectual property rights that may be addressed in separate agreements between the parties or their respective affiliates.

**Trademark License Agreement**

Aerospace and Honeywell will enter into a trademark license agreement pursuant to which Honeywell will grant to Aerospace a license to use "Honeywell Aerospace," "Honeywell Aerospace Technologies," and certain other trademarks in its operation of the Aerospace Business following the distribution, including in the names of Aerospace and certain of its subsidiaries, subject to certain restrictions. The agreement will include exclusivity terms with respect to the use of "Honeywell Aerospace" and certain other uses, subject to certain exceptions, including exceptions permitting Honeywell to continue to market and sell products and services under the "Honeywell" mark. The trademark license agreement will include customary quality control provisions to protect and preserve the goodwill associated with "Honeywell" and the other licensed marks. The term of the trademark license agreement will be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

**Certain Other Agreements**

In certain limited cases, Aerospace (or its applicable subsidiary) will enter into certain sub-leases with Honeywell (or its applicable subsidiary) pursuant to which a portion of certain sites currently leased from third parties under operating leases will be sub-leased to Aerospace, Honeywell or one of their respective applicable subsidiaries until the end of the term of the primary lease. None of these sub-leases are expected to be material to Aerospace.

In addition, Aerospace or certain of its subsidiaries also intend to enter into one or more supply agreements with Honeywell or certain of its subsidiaries, the terms and conditions and costs of which will be specified in each such

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

agreement, which are intended to be on an arm's length basis and on market terms. None of these supply agreements are expected to be material to Aerospace.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES**

The following is a discussion of material U.S. federal income tax consequences of the distribution of Aerospace common stock to "U.S. holders" (as defined below) of Honeywell common stock. This discussion is based on the Code, U.S. Treasury Regulations promulgated thereunder, rulings and other administrative pronouncements issued by the IRS, and judicial decisions, in each case as in effect and available on the date of this information statement and all of which are subject to differing interpretations and change at any time, possibly with retroactive effect. Any such change could affect the accuracy of the statements and conclusions set forth in this document.

This discussion applies only to U.S. holders of shares of Honeywell common stock who hold such shares as a capital asset within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion is based upon the assumption that the separation and the distribution, together with certain related transactions, were or will be consummated in accordance with the separation agreement and the other separation-related agreements and as described in this information statement. This discussion is for general information only and is not tax advice. It does not address all aspects of U.S. federal income taxation that may be relevant to particular holders of Honeywell common stock in light of their particular circumstances nor does it address tax considerations applicable to holders that are or may be subject to special treatment under the U.S. federal income tax laws (such as, without limitation, insurance companies, tax-exempt organizations, financial institutions, mutual funds, regulated investment companies, certain former U.S. citizens or long-term residents of the United States, broker-dealers, partnerships (or entities or arrangements treated as partnerships for U.S. federal income tax purposes) or other pass-through entities or the owners thereof, traders in securities who elect a mark-to-market method of accounting, holders who hold their Honeywell common stock as part of a "hedge," "straddle," "conversion," "synthetic security," "integrated investment" or "constructive sale transaction," holders who acquired Honeywell common stock or Aerospace common stock upon the exercise of employee stock options or otherwise as compensation, holders required to accelerate the recognition of any item of gross income as a result of such income being recognized on an applicable financial statement, or holders whose functional currency is not the U.S. dollar). This discussion also does not address any tax consequences arising under any alternative minimum tax, the unearned income Medicare contribution tax pursuant to the Health Care and Education Reconciliation Act of 2010 or the Foreign Account Tax Compliance Act (including the Treasury Regulations promulgated thereunder and intergovernmental agreements entered into pursuant thereto or in connection therewith). In addition, no information is provided in this discussion with respect to any tax considerations under state, local or foreign laws or U.S. federal laws other than those pertaining to the U.S. federal income tax. This discussion does not address the tax consequences to any person who actually or constructively owns 5% or more of Honeywell common stock.

If a partnership (or any other entity or arrangement treated as a partnership for U.S. federal income tax purposes) holds Honeywell common stock, the tax treatment of a partner in such partnership will generally depend upon the status of the partner and the activities of the partnership. Holders of Honeywell common stock that are partnerships and partners in such partnerships should consult their own tax advisors as to the tax consequences of the distribution.

For purposes of this discussion, a "U.S. holder" is a beneficial owner of Honeywell common stock that is, for U.S. federal income tax purposes:

• an individual citizen or a resident of the United States;

• a corporation (or any other entity treated as a corporation) created or organized in or under the laws of the United States, any state thereof or the District of Columbia;

• an estate, the income of which is subject to U.S. federal income taxation regardless of its source; or

• a trust, if (1) a court within the United States is able to exercise primary supervision over its administration and one or more U.S. persons have the authority to control all of the substantial decisions of such trust or (2) it has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person.

**THE FOLLOWING DISCUSSION IS A SUMMARY OF MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE DISTRIBUTION UNDER CURRENT LAW AND IS FOR GENERAL INFORMATION ONLY. ALL HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO** 

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**THE PARTICULAR TAX CONSEQUENCES OF THE DISTRIBUTION TO THEM, INCLUDING THE APPLICATION AND EFFECT OF U.S. FEDERAL, STATE, LOCAL, AND FOREIGN TAX LAWS.**

It is a condition to the distribution that Honeywell receive a written opinion from each of Wachtell Lipton and EY, satisfactory to the Honeywell Board of Directors, regarding the qualification of the distribution, together with certain related transactions, as a reorganization within the meaning of Sections 355 and 368(a)(1)(D) of the Code. The Tax Opinions will be based upon and rely on, among other things, various facts and assumptions, as well as certain representations, statements and undertakings of Aerospace and Honeywell (including those relating to the past and future conduct of Aerospace and Honeywell). If any of these representations, statements or undertakings is, or becomes, inaccurate or incomplete, or if any of the representations or covenants contained in any of the separation-related agreements and documents or in any documents relating to the Tax Opinions are inaccurate or not complied with by Honeywell, Aerospace or any of their respective subsidiaries, the Tax Opinions may be invalid or the conclusions reached therein could be jeopardized.

Notwithstanding receipt by Honeywell of the Tax Opinions, the IRS could determine that the distribution and/or certain related transactions should be treated as taxable transactions for U.S. federal income tax purposes if it determines that any of the representations, assumptions or undertakings upon which the Tax Opinions were based are false or have been violated. In addition, the Tax Opinions represent the judgment of the relevant advisors and neither is binding on the IRS or any court and the IRS or a court may disagree with the conclusions in the Tax Opinions. Accordingly, notwithstanding receipt by Honeywell of the Tax Opinions, there can be no assurance that the IRS will not assert that the distribution and/or certain related transactions do not qualify for tax-free treatment for U.S. federal income tax purposes or that a court would not sustain such a challenge. In the event the IRS were to prevail with such challenge, Honeywell, Aerospace, and Honeywell shareowners could be subject to significant U.S. federal income tax liability. Please refer to "—Material U.S. Federal Income Tax Consequences if the Distribution Is Taxable" below.

***Material U.S. Federal Income Tax Consequences if the Distribution, Together with Certain Related Transactions, Qualifies as a Reorganization Within the Meaning of Sections 355 and 368(a)(1)(D) of the Code.***

If the distribution, together with certain related transactions, qualifies as a reorganization within the meaning of Sections 355 and 368(a)(1)(D) of the Code, the U.S. federal income tax consequences of the distribution are as follows:

• no gain or loss will be recognized by, and no amount will be includible in the income of Honeywell as a result of the distribution, other than gain or income arising in connection with certain internal restructurings undertaken in connection with the separation and distribution (including with respect to any portion of the borrowing proceeds transferred to Honeywell from Aerospace that is not used for qualifying purposes) and with respect to any "excess loss account" or "intercompany transaction" required to be taken into account by Honeywell under Treasury Regulations relating to consolidated federal income tax returns;

• no gain or loss will be recognized by (and no amount will be included in the income of) U.S. holders of Honeywell common stock upon the receipt of Aerospace common stock in the distribution except with respect to any cash received in lieu of fractional shares of Aerospace common stock (as described below);

• the aggregate tax basis of the Honeywell common stock and the Aerospace common stock received in the distribution (including any fractional share interest in Aerospace common stock for which cash is received) in the hands of each U.S. holder of Honeywell common stock immediately after the distribution will equal the aggregate basis of Honeywell common stock held by the U.S. holder immediately before the distribution, allocated between the Honeywell common stock and the Aerospace common stock (including any fractional share interest in Aerospace common stock for which cash is received) in proportion to the relative fair market value of each on the date of the distribution; and

• the holding period of the Aerospace common stock received by each U.S. holder of Honeywell common stock in the distribution (including any fractional share interest in Aerospace common stock for which cash is received) will generally include the holding period at the time of the distribution for the Honeywell common stock with respect to which the distribution is made.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

A U.S. holder who receives cash in lieu of a fractional share of Aerospace common stock in the distribution will be treated as having sold such fractional share for cash, and will recognize capital gain or loss in an amount equal to the difference between the amount of cash received and such U.S. holder's adjusted tax basis in such fractional share. Such gain or loss will be long-term capital gain or loss if the U.S. holder's holding period for its Honeywell common stock exceeds one year at the time of the distribution.

If a U.S. holder of Honeywell common stock holds different blocks of Honeywell common stock (generally shares of Honeywell common stock purchased or acquired on different dates or at different prices), such holder should consult its tax advisor regarding the determination of the basis and holding period of shares of Aerospace common stock received in the distribution in respect of particular blocks of Honeywell common stock.

***Material U.S. Federal Income Tax Consequences if the Distribution Is Taxable.***

As discussed above, notwithstanding receipt by Honeywell of the Tax Opinions, the IRS could assert that the distribution does not qualify for tax-free treatment for U.S. federal income tax purposes. If the IRS were successful in taking this position, some or all of the consequences described above would not apply, and Honeywell, Aerospace, and Honeywell shareowners could be subject to significant U.S. federal income tax liability. In addition, certain events that may or may not be within the control of Honeywell or Aerospace could cause the distribution and certain related transactions to not qualify for tax-free treatment for U.S. federal income tax purposes. Depending on the circumstances, Aerospace may be required to indemnify Honeywell for taxes (and certain related losses) resulting from the distribution and certain related transactions not qualifying as tax-free.

If the distribution were to fail to qualify as a reorganization within the meaning of Sections 355 and 368(a)(1)(D) of the Code, then in general, for U.S. federal income tax purposes, Honeywell would recognize taxable gain as if it had sold the Aerospace common stock in a taxable sale for its fair market value (unless Honeywell and Aerospace jointly make an election under Section 336(e) of the Code with respect to the distribution, in which case, in general, (1) the Honeywell group would recognize taxable gain as if Aerospace had sold all of its assets in a taxable sale in exchange for an amount equal to the fair market value of the Aerospace common stock and the assumption of all of Aerospace's liabilities and (2) Aerospace would obtain a related step up in the basis of its assets), and Honeywell shareowners who receive Aerospace common stock in the distribution would be subject to tax as if they had received a taxable distribution equal to the fair market value of such shares.

Even if the distribution were to otherwise qualify as a reorganization within the meaning of Sections 355 and 368(a)(1)(D) of the Code, it may result in taxable gain to Honeywell (but not to Honeywell shareowners) under Section 355(e) of the Code if the distribution were later deemed to be part of a plan (or series of related transactions) pursuant to which one or more persons acquire, directly or indirectly, shares representing a 50% or greater interest (by vote or value) in Honeywell or Aerospace. For this purpose, any acquisitions of Honeywell or Aerospace shares within the period beginning two years before the distribution and ending two years after the distribution are presumed to be part of such a plan, although Honeywell or Aerospace may be able to rebut that presumption (including by qualifying under one or more safe harbors under applicable Treasury Regulations).

In connection with the distribution, Aerospace and Honeywell will enter into a tax matters agreement pursuant to which Aerospace will be responsible for certain liabilities and obligations following the distribution. In general, under the terms of the tax matters agreement, if the distribution, together with certain related transactions, were to fail to qualify as a transaction that is generally tax-free for U.S. federal income tax purposes under Sections 355 and 368(a)(1)(D) of the Code (including as a result of Section 355(e) of the Code) or if certain related transactions were to fail to qualify as tax-free under applicable law and if such failure were the result of actions taken after the distribution by Honeywell or Aerospace, then the party responsible for such failure will be responsible for all taxes imposed on Honeywell or Aerospace to the extent such taxes result from such actions. However, if such failure was the result of any acquisition of Aerospace shares, or of any of Aerospace's representations, statements or undertakings being incorrect, incomplete or breached, then Aerospace generally will be responsible for all taxes imposed as a result of such acquisition or breach. For a discussion of the tax matters agreement, see "Certain Relationships and Related Person Transactions—Tax Matters Agreement." Aerospace's indemnification obligations to Honeywell under the tax matters agreement are not expected to be limited in amount or subject to any cap. If

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

Aerospace is required to pay any taxes or indemnify Honeywell and its subsidiaries and officers and directors under the circumstances set forth in the tax matters agreement, Aerospace may be subject to substantial liabilities.

***Backup Withholding and Information Reporting.***

Payments of cash to U.S. holders of Honeywell common stock in lieu of fractional shares of Aerospace common stock may be subject to information reporting and backup withholding (currently, at a rate of 24%), unless such U.S. holder delivers a properly completed IRS Form W-9 certifying such U.S. holder's correct taxpayer identification number and certain other information, or otherwise establishes an exemption from backup withholding. Backup withholding is not an additional tax. Amounts withheld under the backup withholding rules may be refunded or credited against a U.S. holder's U.S. federal income tax liability, provided that the required information is timely furnished to the IRS.

THE FOREGOING DISCUSSION IS A SUMMARY OF MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE DISTRIBUTION UNDER CURRENT LAW AND IS FOR GENERAL INFORMATION ONLY. ALL HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE PARTICULAR TAX CONSEQUENCES OF THE DISTRIBUTION TO THEM, INCLUDING THE APPLICATION AND EFFECT OF U.S. FEDERAL, STATE, LOCAL, AND FOREIGN TAX LAWS.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**DESCRIPTION OF MATERIAL INDEBTEDNESS**

In connection with the distribution, Aerospace expects to issue senior unsecured notes in an aggregate principal amount of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;billion. Aerospace also intends to enter into (i) a senior unsecured revolving credit facility to be available for general corporate purposes in an aggregate committed amount as of the date of the distribution of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;billion and (ii) a senior unsecured commercial paper program to be available for general corporate purposes up to an aggregate amount at any time outstanding of $ billion.

Aerospace expects to use proceeds from the revolving credit facility and commercial paper program for general corporate purposes. Aerospace expects to use the net proceeds from the senior unsecured notes (i) to make a cash distribution to Honeywell, (ii) to pay fees and expenses related to the separation, the distribution, and/or the debt transactions, and/or (iii) for general corporate purposes. Prior to the completion of the distribution, Honeywell may cause Aerospace to issue to Honeywell debt instruments of Aerospace on terms and conditions determined by Honeywell (any such debt instruments, the "Exchange Debt"). Honeywell would use any such Exchange Debt to retire a portion of Honeywell's existing debt in a debt-for-debt exchange transaction. Any such Exchange Debt, if effected, would reduce the aggregate amount of cash distributed to Honeywell.

Aerospace's targeted debt balance at the time of the separation is being determined based on internal capital planning and considering the following factors and assumptions: anticipated business plan, flexibility for mergers and acquisitions and growth initiatives, optimal debt levels, operating activities, general economic contingencies, credit ratings, and desired financing capacity.

Nothing in this summary or otherwise herein shall constitute or be deemed to constitute an offer to sell or the solicitation of an offer to buy any debt instruments. The description contained herein and the other information in this information statement regarding the anticipated offering of the notes is included in this information statement solely for informational purposes.

The terms of such indebtedness are subject to change and are expected to be finalized prior to the closing of the distribution.

**Notes**

As described above, Aerospace expects to issue approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in aggregate principal amount of senior unsecured notes, which will be offered and sold to qualified institutional buyers in reliance on Rule 144A under the Securities Act and to non-U.S. persons in reliance on Regulation S of the Securities Act. Aerospace expects that the maturities of the notes will range from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;years to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;years. The notes are expected to contain affirmative covenants, negative covenants and events of default, in each case customary for financings of this type and to be redeemable at Aerospace's option in a customary manner.

The foregoing description and the other information in this information statement regarding the potential offering of notes is included in this information statement solely for informational purposes. Nothing in this information statement should be construed as an offer to sell, or the solicitation of an offer to buy, any such notes.

**Revolving Credit Facility**

As described above, Aerospace intends to enter into an approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;billion senior unsecured&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-year revolving credit facility with certain financial institutions to be party thereto as agents and lenders. The revolving credit facility will not be available to Aerospace or its subsidiaries until after the distribution. It is expected that loans under the revolving credit facility will bear interest based on a ratings-based pricing grid. The revolving credit facility is expected to contain affirmative covenants, negative covenants and events of default, in each case customary for financings of this type.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

Before the separation and distribution, all of the outstanding shares of Aerospace common stock will be owned beneficially and of record by Honeywell. Following the separation and distribution, Aerospace expects to have outstanding an aggregate of approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of common stock based upon approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of Honeywell common stock issued and outstanding on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026, excluding treasury shares, assuming no exercise of any shares issued under Honeywell equity compensation awards and applying the distribution ratio.

**Share Ownership Information for Directors and Officers**

The following table shows the number of shares of common stock expected to be beneficially owned by our current directors, named executive officers, and our directors and current executive officers as a group immediately following the completion of the distribution, based on information available as of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 and based on the assumption that, for every share of Honeywell common stock held by such persons, they will receive &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of Aerospace common stock. None of these individuals, or the group as a whole, would be expected to beneficially own more than 1% of our common stock immediately following the completion of the distribution. Each person listed in the following table had sole voting and investment power of the shares shown, except as noted in the footnotes below.

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| | | |
|:---|:---|:---|
| **Directors and Executive Officers** | **Shares** | **Percent of Class** |

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**Certain Beneficial Owners**

The following table shows all holders known to Aerospace that are expected to be beneficial owners of more than 5% of the outstanding shares of common stock immediately following the completion of the distribution, based on information available as of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , 2026 and based upon the assumption that, for every share of Honeywell common stock held by such persons, they will receive &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; share(s) of Aerospace common stock.

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| | | |
|:---|:---|:---|
| **Name and Address** | **Shares** | **Percent of Class** |

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**DESCRIPTION OF AEROSPACE CAPITAL STOCK**

Aerospace's certificate of incorporation and bylaws will be amended and restated prior to the distribution. The following briefly summarizes the material terms of our capital stock that will be contained in our amended and restated certificate of incorporation and amended and restated bylaws. These summaries do not describe every aspect of these securities and documents and are subject to all the provisions of our amended and restated certificate of incorporation or amended and restated bylaws that will be in effect at the time of the distribution, and are qualified in their entirety by reference to these documents, which you should read (along with the applicable provisions of Delaware law) for complete information on our capital stock as of the time of the distribution. The amended and restated certificate of incorporation and amended and restated bylaws, each in a form expected to be in effect at the time of the distribution, will be included as exhibits to Aerospace's registration statement on Form 10, of which this information statement forms a part. We will include our amended and restated certificate of incorporation and amended and restated bylaws, as in effect at the time of the distribution, in a Current Report on Form 8-K filed with the SEC. The following also summarizes certain relevant provisions of the Delaware General Corporation Law (the "DGCL"). Since the terms of the DGCL are more detailed than the general information provided below, you should read the actual provisions of the DGCL for complete information.

**General**

Aerospace's authorized capital stock will consist of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of common stock, par value $0.01 per share, and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of preferred stock, without par value.

Immediately following the distribution, we expect that approximately&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock will be issued and outstanding and that no shares of our preferred stock will be issued and outstanding.

**Common Stock**

Aerospace's common stock is expected to be listed on Nasdaq under the symbol "HONA." Immediately following the distribution, we expect that approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares of our common stock will be issued and outstanding, all of which will be fully paid and nonassessable. The actual number of shares of our common stock outstanding immediately following the distribution will depend on the actual number of shares of Honeywell common stock outstanding on the record date and will reflect any issuance of new shares or exercise of outstanding options pursuant to Honeywell's equity plans and any repurchases of Honeywell shares by Honeywell pursuant to its common stock repurchase program, in each case on or prior to the record date.

Common shareowners will be entitled to one vote for each share held on all matters submitted to a vote of shareowners.

Common shareowners will be entitled to share equally in the dividends, if any, that may be declared by the Board of Directors out of funds that are legally available to pay dividends, but only after payment of any dividends required to be paid on outstanding preferred stock, if any. The timing, declaration, amount and payment of future dividends will depend on our financial condition, earnings, capital requirements and debt service obligations, as well as legal requirements, regulatory constraints, industry practice and other factors that the Board of Directors deems relevant. Additionally, the terms of the indebtedness we intend to incur in connection with the separation will limit our ability to pay cash dividends.

Upon any voluntary or involuntary liquidation, dissolution or winding up of Aerospace, the common shareowners will be entitled to share ratably in all assets of Aerospace remaining after we pay all of our debts and other liabilities and any amounts we may owe to the holders of our preferred stock, if any.

Common shareowners will not have any preemptive, subscription, redemption or conversion rights. The rights, preferences and privileges of common shareowners will be subject to the rights of the shareowners of any series of preferred stock that we may designate and issue.

Delaware law and our amended and restated bylaws will permit us to issue uncertificated shares of common stock.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Preferred Stock**

As noted above, the rights, preferences and privileges of common shareowners may be affected by the rights, preferences and privileges granted to holders of preferred stock. For this reason, you should be aware that Aerospace's Board of Directors will have the authority, without further action by the shareowners, to issue shares of preferred stock in one or more series, and to fix the rights, preferences and privileges (including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences) of each series, which may be greater than the rights of the common stock. It is not possible to state the actual effect of the issuance of any additional series of preferred stock upon the rights of common shareowners until the Board of Directors determines the specific rights of the holders of that series. However, the effects might include, among other things:

• restricting dividends on the common stock;

• diluting the voting power of the common stock;

• impairing the liquidation rights of the common stock; or

• delaying or preventing a change in control of Aerospace without further action by the shareowners.

Immediately following the distribution, we expect no shares of our preferred stock to be issued and outstanding.

**Charter and Bylaw Provisions**

Some provisions of Delaware law and Aerospace's amended and restated certificate of incorporation and amended and restated bylaws, summarized below, are expected to delay, deter, prevent or discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of Aerospace to first negotiate with its Board of Directors. Aerospace believes that these provisions will give its Board of Directors the flexibility to exercise its fiduciary duties in a manner consistent with the interests of its shareowners.

• *Classified Board.* Aerospace's amended and restated certificate of incorporation will provide that, until the annual shareowner meeting in 2030, Aerospace's Board of Directors will be divided into three classes, with each class consisting, as nearly as reasonably possible, of one-third of the total number of directors. The first term of office for the Class I directors will expire at the 2027 annual meeting of shareowners. The first term of office for the Class II directors will expire at the 2028 annual meeting of shareowners. The first term of office for the Class III directors will expire at the 2029 annual meeting of shareowners. Commencing with the 2028 annual meeting until the board is no longer classified, directors elected to succeed those directors whose terms then expire will be elected for a term of office to expire at the 2030 annual meeting. Commencing with the 2030 annual meeting of shareowners, all directors will be elected annually and for a term of office to expire at the next annual meeting of shareowners, and Aerospace's Board of Directors will thereafter no longer be divided into classes. Before Aerospace's Board of Directors is declassified, it would take at least two annual shareowners meetings to occur for any individual or group to gain control of Aerospace's Board of Directors. Accordingly, while the Board of Directors is divided into classes, these provisions could discourage a third-party from initiating a proxy contest, making a tender offer or otherwise attempting to control Aerospace.

• *Removal and Vacancies.* Aerospace's amended and restated certificate of incorporation and bylaws will provide that (i) until the 2030 annual meeting of shareowners (or such other time as Aerospace's Board of Directors is no longer classified under the DGCL), Aerospace shareowners may remove directors only for cause and only by the affirmative vote of the holders of at least 66 2/3% of Aerospace stock outstanding and (ii) from and including the 2030 annual meeting of shareowners (or such other time as Aerospace's Board of Directors is no longer classified under the DGCL), Aerospace shareowners may remove directors with or without cause, only by the affirmative vote of the holders of a majority of Aerospace stock outstanding.

• *Vacancies.* Aerospace's amended and restated certificate of incorporation and bylaws will provide that vacancies occurring in the Board resulting from death, resignation, disqualification, removal or other cause shall be filled by the affirmative vote of a majority of the remaining directors then in office, even if less than a

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

quorum of the Board, or by a sole remaining director. Any director elected in accordance with the preceding sentence shall hold office until the annual meeting of shareowners at which the full term of office of the class to which such director has been elected expires and until such director's successor shall have been elected and qualified or until such director's earlier death, resignation, disqualification or removal.

• *Board Size.* Aerospace's amended and restated certificate of incorporation and bylaws will provide that (i) until the 2030 annual meeting of shareowners, the number of directors on the Board shall be determined from time to time only by the vote of a majority of the then-authorized number of directors and (ii) at or following the 2030 annual meeting of shareowners, the authorized number of directors on the Board may be determined from time to time either by a vote of a majority of the then-authorized number of directors or by the affirmative vote of the holders of a majority of Aerospace stock outstanding.

• *Shareowners Meetings.* Under Aerospace's amended and restated certificate of incorporation and bylaws, prior to the 2030 annual meeting of shareowners, special meetings of shareowners may be called only by (i) the Chief Executive Officer, (ii) the Chairman of the Board or (iii) a majority of the Board. From and including the 2030 annual meeting of shareowners, a special meeting of shareowners may also be called by the Secretary upon the written request of holders owning not less than 15% of Aerospace common stock as of the date of the request.

• *Requirements for Advance Notification of Shareowner Nominations and Proposals.* Aerospace's amended and restated bylaws will establish advance notice procedures with respect to shareowner proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of Aerospace's Board of Directors or a committee thereof.

• *Delaware Law.* Aerospace will be subject to Section 203 of the DGCL. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a "business combination" with an "interested stockholder" for a period of three years following the date the person became an interested stockholder, unless the "business combination" or the transaction in which the person became an interested stockholder is approved in a prescribed manner. Generally, a "business combination" includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. Generally, an "interested stockholder" is a person who, together with affiliates and associates, owns or within three years prior to the determination of interested stockholder status, did own, 15% or more of a corporation's voting stock. The existence of this provision may have an anti-takeover effect with respect to transactions not approved in advance by Aerospace's Board of Directors, including discouraging attempts that might result in a premium over the market price for the shares of Aerospace common stock held by shareowners.

• *Elimination of Shareowner Action by Written Consent.* Aerospace's amended and restated certificate of incorporation will expressly eliminate the right of shareowners to act by written consent without a meeting. Shareowner action must therefore take place at an annual meeting or at a special meeting of Aerospace's shareowners.

• *No Cumulative Voting.* Aerospace's amended and restated certificate of incorporation and bylaws will not provide for cumulative voting in the election of directors.

• *Undesignated Preferred Stock.* The authorization of undesignated preferred stock will make it possible for Aerospace's Board of Directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of Aerospace.

• *Amendments to Certificate of Incorporation.* Aerospace's amended and restated certificate of incorporation will provide that the provisions of our amended and restated certificate of incorporation may only be amended in the manner prescribed by the DGCL, except that until the 2030 annual meeting of shareowners, the affirmative vote of the holders of at least 66 2/3% of the voting power of the shares of our capital stock entitled to vote on such amendment will be required to amend certain provisions relating to: (i) the classification, size, term, election, removal, nomination and filling of vacancies with respect to our Board; (ii) the ability to call special meetings of shareowners; (iii) the amendment of certain provisions of our bylaws (as further described below); and (iv) any provision relating to the amendment of such provisions.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

• *Amendments to Bylaws.* Aerospace's amended and restated certificate of incorporation and bylaws will provide that the provisions of our amended and restated bylaws may only be amended by the Board or by the affirmative vote of the holders of a majority of all of the shares of our capital stock then entitled to vote thereon, voting together as a single class, except that until the 2030 annual meeting of shareowners, the affirmative vote of the holders of at least 66 2/3% of the voting power of the shares of our capital stock entitled to vote on such amendment will be required to amend certain provisions relating to: (i) the ability to call special meetings of shareowners; (ii) the size, removal and filling of vacancies with respect to our Board; and (iii) any provision relating to the amendment of such provisions.

**Limitation on Liability and Indemnification of Directors and Officers**

Delaware law authorizes corporations, subject to certain limitations, to limit or eliminate the personal liability of directors and officers to corporations and their shareowners for monetary damages for breaches of directors' and officers' fiduciary duties as directors or officers, as applicable. Aerospace's amended and restated certificate of incorporation will include such an exculpation provision limiting or eliminating such liability to fullest extent permitted under Delaware law.

Aerospace's amended and restated certificate of incorporation will generally require Aerospace to provide indemnification and advancement of expenses for its directors and officers to the fullest extent permitted by the DGCL.

The limitation of liability and indemnification provisions that will be included in our amended and restated certificate of incorporation may discourage shareowners from bringing a lawsuit against our directors or officers, as applicable, for breach of their fiduciary duty. These provisions may also have the effect of reducing the likelihood of derivative litigation against our directors and officers, even though such an action, if successful, might otherwise benefit us and our shareowners. However, these provisions will not limit or eliminate our rights, or those of any shareowner, to seek non-monetary relief such as injunction or rescission in the event of a breach of a director's or officer's duty of care. The provisions will not alter the liability of directors or officers under the federal securities laws. In addition, your investment may be adversely affected to the extent that in a class action, derivative or direct suit, we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. There is currently no pending material litigation or proceeding against any of our directors, officers or employees for which indemnification is sought.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Listing**

We intend to apply to have our shares of common stock listed on the Nasdaq under the symbol "HONA."

**Sale of Unregistered Securities**

On June 6, 2025, Honeywell Aerospace LLC issued 100 units to Honeywell pursuant to Section 4(a)(2) of the Securities Act. We did not register the issuance of the issued shares under the Securities Act because such issuance did not constitute a public offering.

**Transfer Agent and Registrar**

After the distribution, the transfer agent and registrar for our common stock will be&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed a registration statement on Form 10 with the SEC with respect to the shares of our common stock being distributed as contemplated by this information statement. This information statement is a part of, and does not contain all of the information set forth in, the registration statement and the exhibits and schedules to the registration statement. For further information with respect to Aerospace and Aerospace common stock, please refer to the registration statement, including its exhibits and schedules. Statements made in this information statement relating to any contract or other document filed do not necessarily include complete information regarding such contract or other document, and you should refer to the exhibits attached to the registration statement for copies of the actual contract or document. You may review a copy of the registration statement, including its exhibits and schedules, on the Internet website maintained by the SEC at www.sec.gov. Information contained on or connected to any website referenced in this information statement is not incorporated into this information statement or the registration statement of which this information statement forms a part, or in any other filings with, or any information furnished or submitted to, the SEC.

As a result of the distribution, Aerospace will become subject to the information and reporting requirements of the Exchange Act and, in accordance with the Exchange Act, will file periodic reports, proxy statements, and other information with the SEC.

We intend to furnish holders of our common stock with annual reports containing consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles and audited and reported on, with an opinion expressed, by an independent registered public accounting firm.

You should rely only on the information contained in this information statement or to which this information statement has referred you. We have not authorized any person to provide you with different information or to make any representation not contained in this information statement.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**AEROSPACE**

**(A BUSINESS OF HONEYWELL INTERNATIONAL, INC.)**

**INDEX TO COMBINED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| <u>[REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID No. 34)](#iaf36d807e40f46578ba0649b3b7197a7_278)</u> | <u>[F-2](#iaf36d807e40f46578ba0649b3b7197a7_278)</u> |
| <u>[COMBINED STATEMENTS OF OPERATIONS](#iaf36d807e40f46578ba0649b3b7197a7_294)</u> | <u>[F-6](#iaf36d807e40f46578ba0649b3b7197a7_294)</u> |
| <u>[COMBINED STATEMENTS OF COMPREHENSIVE INCOME](#iaf36d807e40f46578ba0649b3b7197a7_309)</u> | <u>[F-7](#iaf36d807e40f46578ba0649b3b7197a7_309)</u> |
| <u>[COMBINED BALANCE SHEET](#iaf36d807e40f46578ba0649b3b7197a7_4)</u> | <u>[F-8](#iaf36d807e40f46578ba0649b3b7197a7_4)</u> |
| <u>[C](#iaf36d807e40f46578ba0649b3b7197a7_339)[OM](#iaf36d807e40f46578ba0649b3b7197a7_339)[BINED STATEMENTS OF CASH FLOWS](#iaf36d807e40f46578ba0649b3b7197a7_339)</u> | <u>[F-](#iaf36d807e40f46578ba0649b3b7197a7_339)[9](#iaf36d807e40f46578ba0649b3b7197a7_339)</u> |
| <u>[COMBINED STATEMENTS OF EQUITY](#iaf36d807e40f46578ba0649b3b7197a7_1199)</u> | <u>[F-](#iaf36d807e40f46578ba0649b3b7197a7_1199)[10](#iaf36d807e40f46578ba0649b3b7197a7_1199)</u> |
| <u>[NOTES TO THE COMBINED FINANCIAL STATEMENTS](#iaf36d807e40f46578ba0649b3b7197a7_367)</u> | <u>[F-11](#iaf36d807e40f46578ba0649b3b7197a7_367)</u> |

---

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Shareowners and Board of Directors of Honeywell International Inc.

**Opinion on the Financial Statements** 

We have audited the accompanying combined balance sheet of Honeywell Aerospace (A Business of Honeywell International Inc.) (the "Company") as of December 31, 2024, and the related combined statements of operations, comprehensive income, equity, and cash flows for each of the two years in the period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Emphasis of a Matter**

As described in Note 1 to the financial statements, the accompanying combined financial statements have been derived from the historical accounting records maintained by Honeywell International Inc. ("Honeywell") as if the operations of the Company had been conducted independently from Honeywell and were prepared on a stand-alone basis in accordance with accounting principles generally accepted in the United States of America. These financial statements may not be indicative of what they would have been had the Company operated as an independent, stand-alone entity.

**Critical Audit Matters**

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters do not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***Completeness of Carve-Out Adjustments – Refer to Note 1 and Note 3 to the financial statements***

*Critical Audit Matter Description*

The Company recorded an allocation of expenses related to certain Honeywell corporate functions based on a proportion of net sales and includes certain assets and liabilities held by Honeywell that are specifically identifiable or otherwise attributable to the Company (the "carve-out adjustments"). The identification of these expenses, assets, and liabilities requires significant judgement by the Company's management.

Given the complexity in identifying certain of these expenses, assets, and liabilities, auditing the carve-out adjustments required both extensive audit effort due to the volume and complexity of the adjustments and a high degree of auditor judgement when performing audit procedures and evaluating the results of those procedures.

*How the Critical Audit Matter Was Addressed in the Audit*

Our audit procedures related to the completeness of certain carve out related adjustments included the following, among others:

• We assessed the completeness of carve-out adjustments by developing an expectation based on adjustments recorded in prior carve-out financial statements prepared by Honeywell.

• We read and evaluated Company prepared analyses over the identification of assets, liabilities, and expenses attributable to the Company.

• We assessed the reasonableness of management's methods and assumptions for allocating expenses related to certain Honeywell corporate functions.

• We performed detail transaction testing over carve-out adjustments recorded.

***Acquisition of CAES Systems Holdings LLC – Refer to Note 4 to the financial statements***

*Critical Audit Matter Description*

The Company completed the acquisition of CAES Systems Holdings LLC for $1,930 million, net of cash acquired on August 30, 2024. The Company recognizes acquisition-related definite-lived intangible assets in conjunction with business combinations, with amounts being recorded at their respective fair values upon the closing of a transaction. The Company recorded $1,205 million of intangible assets in connection with the acquisition of CAES Systems Holdings LLC, primarily including customer relationships and trademarks. The determination of the fair value of customer relationships requires accounting estimates and assumptions. The assumptions used in developing the accounting estimates for customer relationships may include business growth rates, sales volume, selling prices and costs, cash flows, and the discount rate selected.

Given the fair value determination of customer relationships requires management to make significant estimates and assumptions related to the forecasts of future revenue and costs and the selection of the discount rate, performing audit procedures to evaluate the reasonableness of these estimates and assumptions requires a high degree of auditor judgment and an increased extent of effort, including the need to involve our fair value specialists.

*How the Critical Audit Matter Was Addressed in the Audit*

Our audit procedures related to the forecasts of future revenue and costs and the selection of the discount rate for acquired definite-lived intangible assets included the following, among others:

• We tested the effectiveness of internal controls over the valuation of acquired definite-lived intangible assets, including management's controls over forecasts of future revenue and costs and selection of the discount rate.

• We assessed the reasonableness of management's forecasts of future revenue and costs by comparing the projections to historical results, certain peer companies and industry reports.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

• With the assistance of our fair value specialists, we evaluated the reasonableness of the (1) valuation methodology and (2) discount rate by:

–Testing the source information underlying the determination of the discount rate and testing the mathematical accuracy of the calculation.

–Developing a range of independent estimates and comparing those to the discount rate selected by management.

***Environmental Matters – Refer to Note 18 to the financial statements***

*Critical Audit Matter Description*

The Company records liabilities for environmental matters when remedial efforts or damage claim payments are probable and the costs can be reasonably estimated. Such liabilities are based on the Company's best estimate of the undiscounted future costs required to complete the remedial work. As of December 31, 2024, the Company has accrued $581 million related to environmental liabilities. Estimated liabilities are determined based on existing remediation laws and technologies and the Company's planned remedial responses, which are derived from environmental studies, sampling, testing and analyses. Inherent uncertainties exist in such evaluations, primarily due to unknown environmental conditions, changing governmental regulations regarding liability, and emerging remediation technologies. These liabilities are adjusted periodically as remediation efforts progress and as additional technology, regulatory, and legal information become available.

Given the subjectivity of estimating environmental liabilities, performing audit procedures to evaluate whether environmental liabilities were appropriately recorded as of December 31, 2024, required a high degree of auditor judgment and an increased extent of effort, including the need to involve our environmental specialists.

*How the Critical Audit Matter Was Addressed in the Audit*

Our audit procedures related to environmental liabilities included the following, among others:

• We tested the effectiveness of internal controls over the review of environmental liabilities, including management's controls over the identification of remedial sites and the monitoring and evaluation of developments that may affect the estimated liability.

• We evaluated the methods and assumptions used by management to estimate environmental liabilities by:

–Inspecting and evaluating the results of public domain searches and inquiring with external counsel to evaluate the completeness of management's identification of remedial sites.

–Testing the underlying data that served as a basis for management's estimates, including actual environmental expenditures.

–Selecting environmental sites where cleanup was completed in the current year and comparing management's initial estimates of the environmental liability to the actual expenditures to identify potential bias in the determination of environmental liabilities.

• We selected sites and involved our environmental specialists to:

–Confirm our understanding of the remediation plans and to evaluate the impact of current year investigation and remediation activities on the Company's methodology and assumptions used to estimate the costs and extent of remediation in accordance with industry practice, applicable laws and regulations.

–Reconcile the extent of remediation identified in communications between the Company and regulatory authorities, such as the Environmental Protection Agency (EPA), including agreed upon remediation plans with the EPA, to the Company's remediation cost estimates. Conduct a search for publicly available information that might indicate facts contrary to the information used by management to develop the remediation cost estimates.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

/S/ DELOITTE & TOUCHE LLP

Tempe, Arizona

December 22, 2025, except for Note 18, as to which the date is January 28, 2026

We have served as the Company's auditor since 2025.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**AEROSPACE**

**(A BUSINESS OF HONEYWELL INTERNATIONAL, INC.)**

**COMBINED STATEMENTS OF OPERATIONS**

**(Dollars in millions)**

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| &nbsp;&nbsp;&nbsp;&nbsp;Product sales | $8135 | $7098 |
| &nbsp;&nbsp;&nbsp;&nbsp;Service sales | 7310 | 6692 |
| **Net sales**  | **15445** | **13790** |
| Costs, expenses and other |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of products sold | 6441 | 5361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of services sold | 3502 | 3146 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total cost of products and services sold**  | **9943** | **8507** |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses | 567 | 506 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 1426 | 1213 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net | 141 | 93 |
| **Total costs, expenses and other**  | **12077** | **10319** |
| **Income before taxes**  | **3368** | **3471** |
| Income tax expense | 519 | 557 |
| **Net income**  | **2849** | **2914** |
| Less: Net income attributable to noncontrolling interest | 32 | 28 |
| **Net income attributable to Aerospace**  | $**2817** | $**2886** |

---

The Notes to the Combined Financial Statements are an integral part of this statement.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**AEROSPACE**

**(A BUSINESS OF HONEYWELL INTERNATIONAL, INC.)**

**COMBINED STATEMENTS OF COMPREHENSIVE INCOME**

**(Dollars in millions)**

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Net income | $2849 | $2914 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive (loss) income, net of tax |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange translation adjustment  | (38) | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pension adjustments | 3 | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in fair value of cash flow hedges  | (6) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total other comprehensive (loss) income, net of tax**  | **(41)** | **15** |
| **Comprehensive income**  | **2808** | **2929** |
| Less: Comprehensive income attributable to the noncontrolling interest | 32 | 28 |
| **Comprehensive income attributable to Aerospace**  | $**2776** | $**2901** |

---

The Notes to the Combined Financial Statements are an integral part of this statement.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**AEROSPACE**

**(A BUSINESS OF HONEYWELL INTERNATIONAL, INC.)**

**COMBINED BALANCE SHEET**

**(Dollars in millions)**

---

| | |
|:---|:---|
| | **December 31,** |
| | **2024** |
| **ASSETS** |  |
| Current assets: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $244 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, less allowance of $37 | 2019 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 3889 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current contract assets | 1210 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets**  | **7670** |
| Property, plant and equipment, net | 2033 |
| Goodwill | 3028 |
| Other intangible assets, net | 2135 |
| Deferred tax assets | 485 |
| Other assets  | 1494 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**16845** |
| **LIABILITIES** |  |
| Current liabilities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $2667 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current contract liabilities | 1359 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 1793 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities**  | **5819** |
| Contract liabilities | 1042 |
| Other liabilities | 1156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities**  | **8017** |
| **EQUITY** |  |
| Net Parent investment | 9048 |
| Accumulated other comprehensive loss | (312) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total equity attributable to Aerospace**  | **8736** |
| Noncontrolling interest | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total equity**  | **8828** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and equity**  | $**16845** |

---

The Notes to the Combined Financial Statements are an integral part of this statement.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**AEROSPACE**

**(A BUSINESS OF HONEYWELL INTERNATIONAL, INC.)**

**COMBINED STATEMENTS OF CASH FLOWS**

**(Dollars in millions)**

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| **Net income**  | $**2849** | $**2914** |
| Adjustments to reconcile net income to net cash provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 246 | 226 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 100 | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense | 74 | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (264) | (152) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other |  | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities, net of the effects of acquisitions |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (254) | (193) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (557) | (508) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract assets | (141) | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (160) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 282 | 524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | (75) | (157) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 438 | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by operating activities**  | **2538** | **2984** |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| Capital expenditures | (488) | (387) |
| Cash paid for acquisitions, net of cash acquired | (2130) |  |
| Increase in investments | (15) |  |
| Amounts advanced for related party loans receivable | (18) | (59) |
| Repayments received from related party loans receivable | 52 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used for investing activities**  | **(2599)** | **(443)** |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| Net transfers from (to) Parent | 176 | (2454) |
| Other | (12) | (66) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used for) financing activities**  | **164** | **(2520)** |
| Effect of foreign exchange rate changes on cash and cash equivalents | (4) | 1 |
| **Net increase in cash and cash equivalents**  | **99** | **22** |
| **Cash and cash equivalents at beginning of period**  | **145** | **123** |
| **Cash and cash equivalents at end of period**  | $**244** | $**145** |
| **Supplemental cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid, net of refunds | $161 | $84 |

---

The Notes to the Combined Financial Statements are an integral part of this statement.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**AEROSPACE**

**(A BUSINESS OF HONEYWELL INTERNATIONAL, INC.)**

**COMBINED STATEMENTS OF EQUITY**

**(Dollars in millions)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Net Parent Investment** | **Accumulated Other Comprehensive Loss** | **Noncontrolling Interest** | **Total Equity** |
| **Balance as of January 1, 2023**  | $**5459** | $**(286)** | $**129** | $**5302** |
| Net income | 2886 |  | 28 | 2914 |
| Foreign exchange translation adjustment |  | 16 |  | 16 |
| Pension adjustments |  | (2) |  | (2) |
| Changes in fair value of cash flow hedges |  | 1 |  | 1 |
| Dividends to noncontrolling interest |  |  | (61) | (61) |
| Net transfers to Parent | (2364) |  |  | (2364) |
| **Balance as of December 31, 2023**  | $**5981** | $**(271)** | $**96** | $**5806** |
| Net income | 2817 |  | 32 | 2849 |
| Foreign exchange translation adjustment |  | (38) |  | (38) |
| Pension adjustments |  | 3 |  | 3 |
| Changes in fair value of cash flow hedges |  | (6) |  | (6) |
| Dividends to noncontrolling interest |  |  | (36) | (36) |
| Net transfers from Parent | 250 |  |  | 250 |
| **Balance as of December 31, 2024**  | $**9048** | $**(312)** | $**92** | $**8828** |

---

The Notes to the Combined Financial Statements are an integral part of this statement.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**AEROSPACE**

**(A BUSINESS OF HONEYWELL INTERNATIONAL, INC.)**

**NOTES TO THE COMBINED FINANCIAL STATEMENTS**

**(Dollars in millions, unless otherwise noted)**

**Note 1. Business Overview and Basis of Presentation**

On February 6, 2025, Honeywell International Inc. ("Honeywell" or the "Parent") announced its intention to separate its Aerospace Business into a standalone publicly traded company. The accompanying Combined Financial Statements and notes present the combined results of operations, financial position and cash flows of the Aerospace Business ("<u>Aerospace</u>", the "<u>Business</u>" or the "<u>Company</u>") of Honeywell. The separation will occur through the distribution of all of the outstanding shares of common stock of Aerospace to Honeywell's shareowners on a pro rata basis in a distribution intended to be tax-free for U.S. federal income tax purposes.

Aerospace is a leading global tier-1 aerospace and defense supplier of mission critical systems and technologies that enable the production, maintenance, and safe operation of aerospace and defense platforms. Aerospace's systems and technologies support original equipment manufacturer ("OEM"), government, defense prime contractors, and aircraft operator customers across the Commercial Aviation, Defense and Space, and Business Aviation end markets.

For the years presented in these Combined Financial Statements, the Company historically operated as Honeywell's Aerospace Business; consequently, separate financial statements have not historically been prepared for the Company. These Combined Financial Statements were derived from the consolidated financial statements and accounting records of Honeywell. These Combined Financial Statements reflect the combined historical results of operations, financial position and cash flows of Aerospace as they were prepared on a stand-alone basis in accordance with accounting principles generally accepted in the United States of America ("GAAP").

In accordance with Accounting Standards Codification ("ASC") 280, *Segment Reporting*, Aerospace manages and reports its operating results through its three reportable segments: Electronic Solutions, Engines & Power Systems, and Control Systems. The remainder of Aerospace's operations are presented in Corporate and All Other, which is not a reportable business segment.

The Combined Financial Statements include certain assets and liabilities that have historically been held at the Honeywell corporate level but are specifically identifiable or otherwise attributable to Aerospace. Honeywell uses a centralized approach to cash management and financing of its operations. Accordingly, a substantial portion of the Company's cash accounts are regularly cleared to the Parent at Honeywell's discretion and Honeywell funds the Company's operating and investing activities as needed. The Cash and cash equivalents held by Honeywell at the corporate level are not specifically identifiable to Aerospace and therefore were not attributed for any of the periods presented. Honeywell third party debt and the related interest expense are not attributed to Aerospace for any of the periods presented as Aerospace is not the legal obligor of such borrowings and Honeywell's borrowings were not directly attributable to the Aerospace Business. Honeywell provides certain services, such as legal, accounting, technology, human resources, and other infrastructure support, on behalf of Aerospace. The Combined Financial Statements include all revenues and costs directly attributable to the Business and an allocation of expenses related to certain Honeywell corporate functions (refer to Note 3 Related Party Transactions). These expenses are allocated to the Business based on a proportion of Net sales. Aerospace and Honeywell consider allocations of these costs to be a reasonable reflection of the benefits received by Aerospace. However, the financial information presented in these Combined Financial Statements may not reflect the combined financial position, operating results, and cash flows of Aerospace had Aerospace been a separate standalone entity during the periods presented. Actual costs that would have been incurred if Aerospace had been a standalone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure. The Company considers the basis on which the expenses have been allocated to be a reasonable reflection of the utilization of services provided to or the benefits received by Aerospace during the periods presented.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

All intracompany transactions and balances within Aerospace have been eliminated. Transactions between Honeywell and Aerospace that will not be cash settled are included within Net Parent investment. The total net effect of the settlement of these intercompany transactions is reflected in the Combined Statements of Cash Flows as a financing activity and in the Combined Balance Sheet as Net Parent investment. Transactions between Aerospace and other businesses of Honeywell are considered related party transactions. See Note 3 Related Party Transactions for more information.

**Note 2. Summary of Significant Accounting Policies**

***Principles of Combination***

Aerospace's Combined Financial Statements include entities in which a controlling interest is maintained. For those entities controlled by Aerospace in which its ownership is less than 100%, the outside shareowners' interests are shown as Noncontrolling interest in the Combined Balance Sheet. Investments in companies in which Aerospace owns, directly or indirectly, a 20% to 50% interest, or has the ability to exercise significant influence over the operating and financial policies of the investee, are accounted for using the equity method of accounting. As a result, Aerospace's share of the earnings or losses of such equity affiliates is included within Other expense, net in the Combined Statements of Operations, and Aerospace's investment is reflected within Other assets in the Combined Balance Sheet.

Aerospace assesses the requirements related to variable interest entities ("VIE"), including a qualitative assessment of power and economics that considers which entity has the power to direct the activities that most significantly impact the VIEs economic performance, and has the right to receive any benefits or the obligation to absorb any losses of the VIE. Aerospace consolidates all VIEs where Aerospace is the primary beneficiary.

***Recent Accounting Pronouncements***

Aerospace considers the applicability and impact of all Accounting Standards Updates ("ASU") issued by the Financial Accounting Standards Board ("FASB"). ASUs not listed below were assessed and determined to be either not applicable or are expected to have a minimal impact on Aerospace's Combined Statements of Operations, Combined Balance Sheet, and Combined Statements of Cash Flows.

In September 2025, the FASB issued ASU 2025-06, *Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software,* which modernizes the accounting for internal-use software costs by removing all references to prescriptive and sequential software development stages. The new standard requires entities to consider whether significant development uncertainty has been resolved before starting to capitalize software costs and aligns disclosure requirements with ASC 360, *Property, Plant, and Equipment*. The ASU is effective for annual and interim reporting periods beginning after December 15, 2027, and can be applied prospectively, retrospectively, or using a modified prospective transition method, with early adoption permitted. Aerospace is currently evaluating the impacts of this guidance on Aerospace's Combined Financial Statements.

In November 2024, the FASB issued ASU 2024-03, *Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*, which requires companies to disclose additional information about the types of expenses in commonly presented expense captions. The new standard requires tabular disclosure of specified natural expenses in certain expense captions, a qualitative description of amounts that are not separately disaggregated, and disclosure of Aerospace's definition and total amount of selling expenses. The ASU should be applied prospectively for annual reporting periods beginning after December 15, 2026, with retrospective application and early adoption permitted. Aerospace is currently evaluating the impacts of this guidance on Aerospace's Combined Financial Statements.

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Taxes Disclosures*, which requires greater disaggregation of income tax disclosures. The new standard requires additional information to be disclosed with respect to the income tax rate reconciliation and income taxes paid disaggregated by jurisdiction. For public business entities, this ASU should be applied prospectively for fiscal years beginning

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

after December 15, 2024, with retrospective application permitted. Aerospace is currently evaluating the impacts of this guidance on Aerospace's Combined Financial Statements.

In November 2023, the FASB issued ASU 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,* which requires companies to enhance the disclosures about segment expenses. The new standard requires the disclosure of Aerospace's Chief Operating Decision Maker ("CODM"), expanded incremental line-item disclosures of significant segment expenses used by the CODM for decision-making, and the inclusion of previous annual only segment disclosure requirements on a quarterly basis. This ASU should be applied retrospectively for fiscal years beginning after December 15, 2023, and early adoption is permitted. Aerospace adopted this guidance for the year beginning January 1, 2024 and provided the required disclosure for the years ended December 31, 2024 and 2023. Refer to Note 19 Segment Financial Data.

In September 2022, the FASB issued ASU 2022-04, *Liabilities – Supplier Finance Programs (Topic 405): Disclosure of Supplier Finance Program Obligations*, which enhances the transparency of supplier finance programs. The new standard requires annual disclosure of the key terms of the program, a description of where in the financial statements amounts outstanding under the program are presented, a rollforward of such amounts, and interim disclosure of amounts outstanding as of the end of each period. The guidance does not affect recognition, measurement, or financial statement presentation of supplier finance programs. The ASU is effective on January 1, 2023, except for the rollforward, which is effective on January 1, 2024. Aerospace adopted this guidance for the year beginning January 1, 2023. The adoption of this standard does not have a material impact on Aerospace's Combined Financial Statements.

***Use of Estimates***

Aerospace prepares its Combined Financial Statements in conformity with GAAP. In doing so, Aerospace is required to make estimates and assumptions that affect the amounts reported in the Combined Financial Statements and accompanying notes. Aerospace bases these estimates on historical experience and on various other assumptions that Aerospace believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Aerospace's actual results may differ materially from these estimates. Significant estimates inherent in the preparation of these Combined Financial Statements include, but are not limited to, those related to over time and licensing revenue recognition, evaluation of goodwill, other intangible assets, and other long-term assets for impairment, environmental liabilities, and income taxes.

***Research and Development***

Research and development costs are expensed as incurred, unless these costs relate to contracts with customers. When a customer provides reimbursement, costs are capitalized as non-recurring engineering. When costs related to contracts with customers where a distinct performance obligation is transferred to the customer, costs are included in Cost of products and services sold when revenue from such contracts is recognized, consistent with the Company's sales recognition policies.

***Cash and Cash Equivalents***

Cash and cash equivalents include cash on hand and highly liquid investments having an original maturity of three months or less. Aerospace participates in Honeywell's cash management and financing programs. With the exception of certain of the Company's subsidiaries that participate in a notional cash pooling arrangement to manage global liquidity requirements, the cash reflected in the Combined Balance Sheet represents cash on hand at certain foreign and domestic locations which do not participate in Honeywell's centralized cash management program and are specifically identifiable to the Aerospace. See Note 3 Related Party Transactions for additional information.

***Inventories***

Inventories are stated at the lower of cost or net realizable value, which incorporates the estimated selling price in the ordinary course of business after taking into consideration anticipated future value derived from associated aftermarket parts and services, with cost primarily determined on first-in, first-out or average cost methods. Carrying

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

value adjustments for obsolete inventory are estimated by comparing inventory levels to estimated future demand or recent prior consumption.

***Property, Plant and Equipment***

Property, plant and equipment are recorded at cost, less accumulated depreciation. Significant improvements are capitalized, while routine maintenance and repairs are expensed as incurred. For financial reporting, the straight-line method of depreciation is used over the estimated useful lives of 10 to 50 years for buildings and improvements and three to 16 years for machinery and equipment. Recognition of the fair value of obligations associated with the retirement of tangible long-lived assets is required when there is a legal obligation to incur such costs. Upon initial recognition of a liability, the cost is capitalized as part of the related long-lived asset and depreciated over the corresponding asset's useful life.

***Goodwill***

Aerospace recognizes goodwill in conjunction with business combinations, with amounts being recorded at their respective fair values upon the closing of a transaction. Subsequent to the closing of a business combination, Aerospace evaluates and records adjustments, as applicable, to the preliminary amounts recorded over the relevant measurement period, which is not to exceed one year from the acquisition date.

Goodwill is subject to impairment testing annually as of the first day of the fourth quarter, or if a triggering event occurs or changes in circumstances indicate that the carrying amount may not be fully recoverable. This testing compares carrying values to fair values and, when appropriate, the carrying value of these assets is reduced to fair value. Aerospace completed its annual goodwill impairment tests for the years ended December 31, 2024 and 2023 and determined that there was no impairment as of each of those dates.

***Definite-Lived Intangible Assets***

Aerospace recognizes acquisition-related definite-lived intangible assets in conjunction with business combinations, with amounts being recorded at their respective fair values upon the closing of a transaction. Subsequent to the closing of a business combination, Aerospace evaluates and records adjustments, as applicable, to the preliminary amounts recorded over the relevant measurement period, which is not to exceed one year from the acquisition date.

Acquisition-related intangible assets consist of customer lists, technology and patents, and other intangibles and are amortized on a straight line basis over their estimated useful lives, ranging from two to 20 years, except for individually significant customer-related intangible assets, which are amortized over 15 years in a manner reflecting the pattern in which the economic benefits of the assets are consumed.

Payments to customers are capitalized to Other intangible assets to the extent that they are allocable to arrangements which secure incremental contractual rights on platforms and that are anticipated to be recoverable via future original equipment or services sales directly to the same customer. These assets are amortized against future sales over the estimated period in which they will be transferred to the customer. Customer-related intangible assets are subject to impairment testing which considers estimates of the likely future sales on the relevant platforms. When payments are not directly recoverable they are recorded as a reduction to revenue in the period when the commitment to pay is recognizable as a liability.

***Capitalized Software***

The Company capitalizes costs of software developed or obtained for internal use during the application development stage of a project and amortizes those costs using the straight-line method over the expected useful life of the software, not to exceed seven years. Costs incurred during the preliminary and post-implementation stages are expensed as incurred. Development costs for software held for sale are capitalized once a project has reached the point of technological feasibility. Completed projects are amortized after reaching the point of general availability using the straight-line method based on the expected useful life, not to exceed seven years. At each balance sheet date, or earlier if an indicator of an impairment exists, the Company evaluates the recoverability of unamortized capitalized software costs based on estimated future undiscounted revenues net of estimated related costs over the

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

remaining amortization period. Capitalized software held for internal use and held for sale is included in Other intangible assets, net in the Combined Balance Sheet.

***Foreign Currency Translation***

Assets and liabilities of operations outside of the U.S. with a functional currency other than the U.S. dollar are translated into U.S. dollars using year-end exchange rates. Sales, costs, and expenses are translated at the average exchange rates in effect during the year. Foreign currency translation gains and losses are included as a component of Accumulated other comprehensive loss.

***Leases***

At the inception of a contract, Aerospace assesses whether the contract is, or contains, a lease. This assessment evaluates (i) whether the contract involves the use of a distinct identified asset, (ii) whether Aerospace obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (iii) whether Aerospace has the right to direct the use of the asset.

All significant lease arrangements are recognized at lease commencement. Operating lease right-of-use ("ROU") assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short-term leases), and Aerospace recognizes lease expense for these leases as incurred over the lease term.

ROU assets represent the Company's right to use an underlying asset during the reasonably certain lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Lease terms may include options to extend or terminate the lease when it is reasonably certain that Aerospace will exercise that option. Aerospace evaluates lease classification at the lease commencement date. Operating lease ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term.

Aerospace primarily uses Honeywell's incremental borrowing rate in determining the present value of the lease payments. In determining the borrowing rate, Aerospace considers the lease term, the secured incremental borrowing rate, and for leases denominated in a currency different than the U.S. dollar, the collateralized borrowing rate in the foreign currency using the U.S. dollar and foreign currency swap spread, when available.

***Defined Benefit Plans***

*Honeywell-Sponsored Defined Benefit Plans*

Certain employees of Aerospace participate in defined benefit pension plans administered and sponsored by Honeywell. Aerospace does not record assets or liabilities to recognize the funded status of these plans because Aerospace is not the legal sponsor of these plans. The Combined Financial Statements reflect the cost for these plans as if they were multi-employer plans. Costs are allocated to Aerospace on a pro rata basis of Net sales, utilizing Aerospace's proportion of total Honeywell Net sales in each respective year. These allocated costs reflect Aerospace's employees' proportionate share of total costs in the Honeywell plans in which they participate as well as an allocation of Honeywell's corporate costs for these plans. These allocated costs are recorded in Selling, general and administrative expenses in the Combined Statements of Operations.

*Aerospace-Sponsored Defined Benefit Plans*

Certain employees of Aerospace participate in unfunded defined benefit plans administered and sponsored by Aerospace. These plans cover non-U.S. employees and retirees in certain jurisdictions, principally in Germany and France. The related liabilities of these plans are included in Accrued liabilities and Other liabilities in the Combined Balance Sheet (refer to Note 17 Postretirement Benefit Plans). Aerospace records the service cost component in Selling, general and administrative expenses and the non-service cost component in Other expense, net in the Combined Statements of Operations.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***Accounts Receivable Factoring***

The Company sells trade accounts receivable at a discount under uncommitted trade accounts receivable sale programs to third party financial institutions without recourse. As these accounts receivable are sold without recourse, the Company does not retain the associated risks following the transfer of such accounts receivable to the financial institutions.

Transfers of accounts receivable are accounted for as sales and, accordingly, accounts receivables sold are excluded from Accounts receivable, net on the Combined Balance Sheet and cash proceeds are reflected in Cash flows provided by operating activities on the Combined Statements of Cash Flows. The difference between the carrying amount of the trade accounts receivables sold and the cash received, or discount, is recorded in the Cost of products and services sold on the Combined Statements of Operations.

For the years ended 2024 and 2023, respectively, the Company sold $13 million and $178 million of trade accounts receivable. The fees associated with trade accounts receivables sold are insignificant.

***Supply Chain Financing***

Honeywell maintains agreements with third-party financial institutions that offer voluntary supply chain financing ("SCF") programs to suppliers of Aerospace. The SCF programs enable suppliers, at their sole discretion, to sell their receivables to third-party financial institutions in order to receive payment on receivables earlier than the negotiated commercial terms between suppliers and Aerospace. Supplier sale of receivables to third-party financial institutions is on terms negotiated between the supplier and the respective third-party financial institution. Aerospace agrees on commercial terms for the goods and services procured from suppliers, including prices, quantities, and payment terms, which normally range between 60 to 120 days, regardless of whether the supplier elects to participate in the SCF programs. A suppliers' voluntary participation in the SCF programs has no bearing on Aerospace's payment terms and Aerospace has no economic interest in a supplier's decision to participate in the SCF programs. Aerospace agrees to pay participating third-party financial institutions the stated amounts of confirmed invoices from suppliers on the original maturity dates of the invoices.

Amounts outstanding related to SCF programs are included in Accounts payable in the Combined Balance Sheet. The following table summarizes Aerospace's outstanding obligations confirmed as valid related to the SCF programs for the year ended December 31, 2024:

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| | |
|:---|:---|
| | **Year Ended December 31,** |
| | **2024** |
| Confirmed obligations outstanding at the beginning of the year | $456 |
| &nbsp;&nbsp;Invoices confirmed during the year | 1647 |
| &nbsp;&nbsp;Less: Confirmed invoices paid during the year | 1559 |
| **Confirmed obligations outstanding at the end of the year**  | $**544** |

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***Sales Recognition***

Product and services sales are recognized when, or as, Aerospace transfers control of the promised products or services to its customers. Revenue is measured as the amount of consideration Aerospace expects to receive in exchange for the promised products or services. Aerospace recognizes contract assets for the promised products or services transferred under a contract that are not yet billable to the customer.

Revenues may include estimates of variable consideration. Aerospace measures variable consideration at the most likely amount Aerospace will receive from customers. The terms of a contract or the historical business practice can give rise to variable consideration due to, but not limited to, cash-based incentives, rebates, performance awards, or credits. Aerospace estimates variable consideration using forecasts of Company performance and other relevant information. Customers do not have the right to return products, except in limited circumstances, such as the exercise of warranty rights.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

*Revenue from Sale of Products*

Revenue is recognized for most commercial products including propulsion engines, avionics, and other manufactured products, including the sale of spare parts without associated maintenance services, at the point in time that the customer obtains control of the goods. Recognition will depend on the commercial and shipping terms of the contract, when the contract indicates that control transfers upon actual delivery at a customer site, and estimated in-transit periods (time between shipment and delivery). Aerospace does not provide for anticipated losses on point-in-time transactions prior to transferring control of the equipment to the customer.

Revenue is recognized for certain equipment contracts, primarily for our Defense and Space customers, on an over time basis, as control of the equipment is transferred to the customer. For these contracts, the progress towards completion of the contract is estimated using a cost-to-cost input measure of progress in order to recognize revenue, which may require judgment.

***Revenue from Sale of Services***

*Repair, overhaul, and maintenance*

Revenue is recognized for repair and maintenance services over the contractual period or as services are rendered.

For certain commercial long-term maintenance contracts, Aerospace accounts for such contracts as a series of daily performance obligations to stand ready to provide spare parts and maintenance. For these contracts, revenue is recognized on a right to invoice basis with expenses recognized when incurred and estimable.

*Licensing revenue and intellectual property transactions*

Aerospace sells licenses and intellectual property to other parties, which is recognized as Services sales. In arrangements where a distinct perpetual license is sold, and are determined to be part of our ordinary activities, the Company recognizes revenue at the point in time when the customer obtains control. In licensing arrangements where the Company becomes entitled to a sales-based royalty, revenue is recognized at the occurrence of the licensees' subsequent sales. Aerospace also provides term-based licenses to certain channel partners and other parties for use in repair and overhaul services; revenue for such licenses is recognized ratably over time when the license is not separable from our continuing obligations.

*Engineering services*

Revenue is recognized for engineering services contracts over time, as the services are performed. Contracts that include both physical deliverables and engineering activities are included in Service sales when the engineering activities are qualitatively or quantitatively significant to the overall performance obligation. Revenue for engineering service contracts is recognized using a cost-to-cost input method. Under this method, the extent of progress towards completion is measured based on the proportion of costs incurred to date to the total estimated costs at completion of the performance obligation. Impacts from changes in estimates of net sales and cost of sales are recognized on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a performance obligation's percentage of completion.

***Non-recurring Engineering Costs***

Aerospace incurs costs for engineering and development of products directly related to contracts with customers. The customer funding for costs incurred for nonrecurring engineering and development activities of the Company's products under agreements with commercial customers is deferred and subsequently recognized as revenue as products are delivered to customers. Additionally, expenses incurred, up to the customer agreed funded amount, are deferred as an asset and recognized as Cost of products sold when products are delivered to customers.

Capitalized engineering costs are included in Other assets while customer funding for engineering costs are included in Contract liabilities and Current contract liabilities. Both amounts amortize ratably over each unit sold, not to exceed 10 years. Amortized costs are recorded in Cost of products sold and amortized funding is recorded in Product

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

sales. The Company periodically assesses the recoverability of capitalized non-recurring engineering costs and records impairments if the costs are no longer probable of recovery.

***Collaborative Arrangements***

The Company enters into collaborative arrangements with manufacturers and suppliers of components used to build and maintain certain original equipment. Under these arrangements, Aerospace and its collaborative partners share in the risks and rewards of these programs through various revenue, cost, and profit-sharing payment structures. We recognize revenue and costs for these arrangements based on the scope of work Aerospace is responsible for transferring to customers.

***Income Taxes***

Income taxes, as presented in the Combined Financial Statements, attribute current and deferred income taxes of Honeywell to Aerospace's standalone financial statements in a manner that is systematic, rational and consistent with the asset and liability method prescribed by ASC 740, *Income Taxes* ("ASC 740"). Accordingly, Aerospace's income tax provision was prepared following the separate return method. The separate return method applies ASC 740 to the standalone financial statements of each member of the consolidated group as if the group members were separate taxpayers. As a result, actual transactions included in the consolidated financial statements of Honeywell may not be included in the separate Combined Financial Statements of Aerospace. Similarly, the tax treatment of certain items reflected in the Combined Financial Statements of Aerospace may not be reflected in the consolidated financial statements and tax returns of Honeywell. Therefore, items such as net operating losses, credit carryforwards and valuation allowances may exist in the standalone financial statements that may or may not exist in Honeywell's consolidated financial statements. As such, the income taxes of Aerospace as presented in the Combined Financial Statements may not be indicative of the income taxes that Aerospace will generate in the future.

Aerospace's deferred tax assets and liabilities represent differences between the tax bases of assets and liabilities and their reported amounts in the Combined Financial Statements, applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. Aerospace reduces deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all the deferred tax assets will not be realized.

Since Aerospace's results are included in the Parent's consolidated tax returns, payments to certain tax authorities are made by the Parent and not by Aerospace. For tax jurisdictions where Aerospace is included with the Parent in a consolidated tax filing, Aerospace does not maintain taxes payable to or from the Parent. The payments are deemed to be settled immediately with the legal entities paying the tax in the respective tax jurisdictions and are reflected in the Combined Statements of Cash Flows as Net transfers from (to) Parent within financing activities and in the Combined Balance Sheet as Net Parent investment.

Aerospace uses significant judgment to evaluate tax positions. Aerospace establishes reserves for income taxes when, despite the belief that tax positions are fully supportable, certain positions remain that do not meet the minimum recognition threshold. Aerospace establishes reserves for income taxes when, despite the belief that tax positions are fully supportable, certain positions remain that do not meet the minimum recognition threshold. The approach for evaluating certain and uncertain tax positions is defined by the authoritative guidance which determines when a tax position is more likely than not to be sustained upon examination by the applicable taxing authority. In the normal course of business, Aerospace and its subsidiaries are examined by various federal, state, and foreign tax authorities. Aerospace assesses the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of the provision for income taxes. Aerospace continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provision, the current tax liability, and deferred taxes in the period in which the facts that give rise to a change in estimate become known.

***Litigation***

Aerospace accrues for litigation matters when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Where the available information is only sufficient to establish a range of

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

probable liability, and no point within the range is more likely than any other, the lower end of the range has been used. When a material loss contingency is reasonably possible, but not probable, Aerospace does not record a liability, but instead discloses the nature of the matter and an estimate of the loss or range of loss, to the extent such estimate can be made. Legal costs, such as outside counsel fees and expenses, are charged to expense in the period that services are rendered.

***Environmental***

Aerospace accrues costs related to environmental matters when it is probable that it has incurred a liability related to a contaminated site and the amount can be reasonably estimated. See Note 18 Commitments and Contingencies for additional information.

**Note 3. Related Party Transactions**

***Related Party Sales and Purchases***

For all periods presented, the Company had no material related party sales and purchase transactions that required disclosure.

***Related Party Loans***

Related party debt due to and due from Honeywell or its affiliates are recorded in Accounts receivable and Accrued liabilities in the Combined Balance Sheet, respectively. Related party loans receivable of $24 million and related party loans payable of $34 million are reflected in the Combined Balance Sheet as of December 31, 2024. The interest income and expense related to the loan activity is recorded in Other expense, net in the Combined Statements of Operations.

***Corporate Allocations***

The Combined Financial Statements reflect allocations of certain expenses from Honeywell including, but not limited to, legal, accounting, information technology, human resources, and other infrastructure support. The cost of these services has been allocated to Aerospace on the basis of the proportion of Net sales. Aerospace and Honeywell consider the allocations to be a reasonable reflection of the benefits received by Aerospace. Allocations for management costs and corporate support services provided to Aerospace totaled $649 million and $571 million for the years ended December 31, 2024 and 2023, respectively, and such amounts are included within Cost of products and services sold, Research and development expenses, and Selling, general and administrative expenses in the Combined Statements of Operations.

***Cash Management and Net Parent Investment***

Honeywell uses a centralized approach for the purpose of cash management and financing of its operations. Aerospace's excess cash in participating bank accounts is transferred to Honeywell daily, and Honeywell funds Aerospace's operating and investing activities as needed. Honeywell operates a centralized non-interest-bearing cash pool in the U.S. and regional interest-bearing cash pools outside of the U.S. The total net effect of the settlement of these intercompany transactions is reflected in the Combined Statements of Cash Flows as a financing activity and in the Combined Balance Sheet as Net Parent investment.

***Derivatives and Hedging***

Honeywell centrally hedges its exposure to changes in foreign exchange rates principally with forward contracts. The Company monitors its collective foreign currency exposure and enters into foreign currency exchange contracts, when necessary, to minimize the impact of changes in foreign currency exchange rates. Certain contracts are specifically designated to and entered into on behalf of Aerospace with Honeywell as a counterparty. As of December 31, 2024 the net derivative liability position for Aerospace was not material.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

***Parent Company Credit Support***

Honeywell provides Aerospace with Parent credit support in certain jurisdictions. To support Aerospace in selling products and services globally, Honeywell enters into contracts on behalf of Aerospace or issues Parent guarantees. Honeywell provides similar credit support for some non-customer related activities of Aerospace, including Parent guarantees for environmental remediation of certain sites (refer to Note 18 Commitments and Contingencies for further details). There are no instances under Aerospace's existing customer contracts requiring payments or performance under Parent company guarantees.

**Note 4. Acquisitions**

***CAES Systems Holdings LLC***

On August 30, 2024, Aerospace acquired 100% of the outstanding equity interests of CAES Systems Holdings LLC, a provider of systems that enable complex sensing, protection, targeting and communications operations in the electromagnetic spectrum across national security missions and warfighting domains, for total consideration of $1,930 million, net of cash acquired. The business is included within the Electronic Solutions reportable business segment. The following table summarizes the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed that are included in the Combined Balance Sheet as of December 31, 2024:

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| | |
|:---|:---|
| Current assets | $324 |
| Intangible assets | 1205 |
| Other noncurrent assets | 182 |
| Current liabilities | (124) |
| Noncurrent liabilities | (167) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net assets acquired**  | **1420** |
| Goodwill | 553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Purchase price**  | $**1973** |

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The CAES identifiable intangible assets primarily include customer relationships and trademarks which will amortize over their estimated useful lives ranging from two to 15 years using straight line and accelerated amortization methods. The goodwill is not deductible for tax purposes. As of December 31, 2024, the purchase accounting for CAES is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, working capital adjustments, and tax balances. The CAES acquisition contributed $306 million to Net sales for the year ended December 31, 2024.

***Civitanavi Systems S.p.A.***

On August 19, 2024, Aerospace completed the acquisition of Civitanavi Systems S.p.A., a producer of position navigation and timing technology for the aerospace, defense, and industrial markets, for total consideration of $200 million, net of cash acquired. The business is included within the Electronic Solutions reportable business segment. The assets acquired and liabilities assumed with Civitanavi Systems S.p.A. are included in the Combined Balance Sheet as of December 31, 2024, including $75 million of intangible assets and $107 million of goodwill, which is not deductible for tax purposes. As of December 31, 2024, the purchase accounting is subject to final adjustment, primarily for the valuation of intangible assets, amounts allocated to goodwill, and tax balances.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Note 5. Revenue Recognition and Contracts with Customers**

Aerospace maintains a diverse offering of products and services sold to a variety of customers in multiple channels. See the following disaggregated revenue table and related discussions by channels for details:

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Defense and Space | $6138 | $5068 |
| Commercial Aviation Aftermarket | 4676 | 3914 |
| Business Aviation Aftermarket | 2470 | 2389 |
| Commercial Aviation Original Equipment | 1264 | 1291 |
| Business Aviation Original Equipment | 897 | 1128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net sales**  | $**15445** | $**13790** |

---

Aerospace is a global supplier of products and services that it sells to OEMs and other customers in a variety of end markets including Defense and Space, Business Aviation, and Commercial Aviation. Aerospace products and services include auxiliary power units, propulsion engines, environmental control systems, integrated avionics, wireless connectivity services, electric power systems, engine controls, flight safety, communications, navigation hardware, data applications, radar and surveillance systems, aircraft lighting, management and technical services, advanced systems and instruments, satellite and space components, aircraft wheels and brakes, and thermal systems. Aerospace also provides spare parts, repair, overhaul, and maintenance services (principally to aircraft operators).

The Company recognizes revenue arising from performance obligations outlined in contracts with its customers that are satisfied at a point in time and over time. The disaggregation of the Company's revenue based off timing of recognition is as follows:

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Products, transferred point in time | 46% | 47% |
| Products, transferred over time | 7 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net product sales**  | **53** | **51** |
| Services, transferred point in time | 4 | 4 |
| Services, transferred over time | 43 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net service sales**  | **47** | **49** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net sales**  | **100%** | **100%** |

---

***Contract Balances***

Aerospace tracks progress on satisfying performance obligations under contracts with customers. The related billings and cash collections are recorded in the Combined Balance Sheet within Current contract assets, Other assets, Current contract liabilities, and Contract liabilities. Contract assets (unbilled receivables) arise when the timing of cash collected from customers differs from the timing of revenue recognition, such as when contract provisions require specific milestones to be met before a customer can be billed. Contract assets are recognized when the revenue associated with the contract is recognized prior to billing and derecognized when billed in accordance with the contract. Contract liabilities are recorded when customers remit contractual cash payments in advance of the Company satisfying performance obligations under contractual arrangements, including those performance obligations to be satisfied over time. Contract liabilities are derecognized when revenue is recorded.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period. The following table summarizes Aerospace's contract assets and liabilities balances:

---

| | |
|:---|:---|
| | **December 31,** |
| | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract assets - January 1 | $931 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract assets - December 31 | 1219 |
| **Change in Contract assets - increase**  | **288** |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities - January 1 | (2451) |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities - December 31 | (2401) |
| **Change in Contract liabilities - decrease**  | **50** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net change**  | $**338** |

---

For the year ended December 31, 2024, Aerospace recognized revenue of $936 million that was previously included in the beginning balance of contract liabilities.

When contracts are modified to account for changes in contract specifications and requirements, Aerospace considers whether the modification either creates new or changes the existing enforceable rights and obligations. Contract modifications for goods or services which are not distinct from the existing contract are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and Aerospace's measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. When the modifications include additional performance obligations that are distinct and at a standalone selling price, they are accounted for as a new contract and performance obligations, which are recognized prospectively.

***Performance Obligations***

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is defined as the unit of account. Aerospace allocates a contract's transaction price to each distinct performance obligation and recognizes revenue when, or as, the performance obligation is satisfied. When contracts with customers require highly complex integration or manufacturing services not separately identifiable from other promises in the contracts and, therefore, not distinct, then the entire contract is accounted for as a single performance obligation. For contracts with multiple performance obligations, Aerospace allocates the contract's transaction price to each performance obligation based on the estimated relative standalone selling price of each distinct good or service in the contract. For product sales, each product sold to a customer typically represents a distinct performance obligation. In such cases, the observable standalone sales are used to determine the standalone selling price.

The Company's disclosure of the timing for satisfying the performance obligation is based on the requirements of contracts with customers. However, from time to time these contracts may be subject to modifications, impacting the timing of satisfying the performance obligations. Remaining performance obligations exclude performance obligations associated with revenue which is recognized on a right to invoice basis for certain long-term contracts.

The timing of satisfaction of the Company's performance obligations does not significantly vary from the typical timing of payment. Typical payment terms of the Company's fixed price over time contracts include progress payments based on specified events or milestones or based on project progress. For some contracts, the Company may be entitled to receive an advance payment.

As of December 31, 2024, Aerospace's remaining performance obligations, which is the aggregate amount of total contract transaction price that is unsatisfied or partially unsatisfied, was approximately $15,909 million. Aerospace's disclosure of the timing for satisfying the performance obligation is based on the requirements of contracts with customers. Performance obligations expected to be satisfied within one year and greater than one year are 58% and 42%, respectively.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Note 6. Other Expense, Net**

Other expense, net consists of the following:

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Environmental remediation expenses | $183 | $157 |
| Equity income of affiliated companies | (27) | (46) |
| Other (income) expense, net | (15) | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Other expense, net**  | $**141** | $**93** |

---

**Note 7. Income Taxes**

***Income Before Taxes***

The sources of income from continuing operations before income taxes are as follows:

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| U.S. | $1343 | $1738 |
| Non-U.S. | 2025 | 1733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Income before taxes**  | $**3368** | $**3471** |

---

***Tax Expense***

Tax expense consists of the following:

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Current |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Federal | $376 | $399 |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. State | 107 | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-U.S. | 300 | 220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current tax expense**  | **783** | **709** |
| Deferred |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Federal | (247) | (134) |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. State | (25) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-U.S. | 8 | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total deferred tax (benefit) expense**  | **(264)** | **(152)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Tax expense**  | $**519** | $**557** |

---

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows:

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| U.S. federal statutory income tax rate | 21.0% | 21.0% |
| Taxes on non-U.S. earnings<sup>1, 2</sup> | (3.5) | (3.5) |
| Foreign-derived intangible income benefit | (2.2) | (2.1) |
| Employee stock compensation | (0.5) | 0.1 |
| U.S. state income taxes | 1.8 | 2.0 |
| Research and development credits | (1.4) | (1.7) |
| Other | 0.3 | 0.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Effective income tax rate**  | **15.5%** | **16.0%** |

---

__________________

1. Includes U.S. taxes on non-U.S. earnings, net of foreign tax credits, and net of changes in valuation allowances.

2.2023 includes (4.0)% deferred tax benefit resulting from a non-U.S. legislative change, offset by 3.4% deferred tax expense resulting from a full valuation allowance.

The effective tax rate decreased by 0.5 percentage points in 2024 compared to 2023. The decrease was primarily attributable to an increase in the stock-based compensation benefit.

***Deferred Tax Assets (Liabilities)***

The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and payables are as follows:

---

| | |
|:---|:---|
| | **December 31,** |
| **Deferred tax assets** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;Pension liabilities | $26 |
| &nbsp;&nbsp;&nbsp;&nbsp;Environmental liabilities | 141 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other accruals and reserves | 335 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax credit carryforwards and other attributes | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 55 |
| &nbsp;&nbsp;&nbsp;&nbsp;Capitalized research & development | 610 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Gross deferred tax assets**  | **1345** |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation allowance | (127) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total deferred tax assets**  | **1218** |
| **Deferred tax liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets | (51) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (248) |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets | (208) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unremitted earnings of foreign subsidiaries | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment | (258) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total deferred tax liabilities**  | **(792)** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net deferred tax assets**  | $**426** |

---

Deferred tax assets as of December 31, 2024 were reduced by a valuation allowance provided for certain non-U.S. tax credit carryforwards and attributes. The change in the valuation allowance resulted in an increase of $1 million and an increase of $119 million to income tax expense in 2024 and 2023, respectively. If the Company determines that the likelihood of realization of existing deferred tax assets changes, a corresponding increase or decrease to the

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

valuation allowance will be recognized as an increase or reduction to income tax expense in the period that determination is made.

The Company has available non-U.S. loss carry-forwards of $29 million and other non-U.S. attribute carryforwards of $118 million as of December 31, 2024. If not utilized, $142 million of losses have expiration periods through 2036, and $5 million of losses do not expire.

On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act ("OBBBA") was enacted. The OBBBA includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key Tax Cuts & Jobs Act provisions (both domestic and international), expanding certain Inflation Reduction Act incentives, and accelerating the phase-out of or repealing others.

***Unrecognized Tax Benefits***

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| **Change in unrecognized tax benefits**  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at beginning of year | $163 | $164 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross increases related to current period tax positions | 27 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expiration of the statute of limitations for the assessment of taxes | (2) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease related to resolutions of audits with tax authorities |  | (21) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation | (3) | 1 |
| **Balance at end of year**  | $**185** | $**163** |

---

As of December 31, 2024 and December 31, 2023, there were $185 million and $163 million, respectively, of unrecognized tax benefits that if recognized would affect the effective tax rate.

The following table summarizes tax years that remain subject to examination by major tax jurisdictions as of December 31, 2024:

---

| | | |
|:---|:---|:---|
| | **Open Tax Years** | **Open Tax Years** |
| **Jurisdiction** | **Examination in progress** | **Examination not yet initiated** |
| U.S. Federal | 2017-2021 | 2022-2024 |
| U.S. State | 2013-2022 | 2023-2024 |
| Canada | 2019-2021 | 2022-2024 |
| China | 2013-2024 | N/A |
| Germany | 2013-2020 | 2021-2024 |
| Malaysia | 2018-2021 | 2022-2024 |
| Puerto Rico | N/A | 2020-2024 |
| Switzerland | 2019-2022 | 2023-2024 |
| United Kingdom | 2014-2022 | 2023-2024 |

---

Based on the outcome of these examinations, or as a result of the expiration of statute of limitations for specific jurisdictions, it is reasonably possible that certain unrecognized tax benefits for tax positions taken on previously filed tax returns will materially change from those recorded as liabilities in Aerospace's financial statements. It is not reasonably possible to estimate the increase or decrease in unrecognized tax benefits within the next 12 months.

Unrecognized tax benefits for examinations in progress were $116 million and $118 million as of December 31, 2024 and 2023, respectively. Estimated interest and penalties related to the underpayment of income taxes are classified as a component of Income tax expense in the Combined Statements of Operations and totaled $10 million

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

and $1 million for the years ended December 31, 2024 and 2023, respectively. Accrued interest and penalties, recorded within Other liabilities, were $50 million as of December 31, 2024.

Aerospace's unrecognized tax positions are recorded within Other liabilities in the Combined Balance Sheet.

**Note 8. Inventories**

---

| | |
|:---|:---|
| | **December 31,** |
| | **2024** |
| Raw materials | $981 |
| Finished products and work in process<sup>1</sup> | 2908 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Inventories**  | $**3889** |

---

__________________

1. Work in process inventories not separately reported as work in process includes components which can be either sold as spares in end-market sales or included in larger assemblies that are in process.

**Note 9. Property, Plant and Equipment, Net**

---

| | |
|:---|:---|
| | **December 31,** |
| | **2024** |
| Machinery and equipment | $4193 |
| Buildings and improvements | 1443 |
| Construction in progress | 366 |
| Land and improvements | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Property, plant and equipment**  | **6079** |
| Less: Accumulated depreciation | 4046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Property, plant and equipment, net**  | $**2033** |

---

Aerospace recorded depreciation expense for property, plant, and equipment, of $246 million and $226 million for the years ended December 31, 2024 and 2023, respectively.

**Note 10. Goodwill and Other Intangible Assets, Net**

The below table summarizes the change in goodwill for the year ended December 31, 2024 by segment:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2023** | **Acquisitions** | **Currency Translation Adjustment** | **December 31, 2024** |
| Electronic Solutions | $1045 | $660 | $(7) | $1698 |
| Engine & Power Systems | 643 |  | (4) | 639 |
| Control Systems | 696 |  | (5) | 691 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Goodwill**  | $**2384** | $**660** | $**(16)** | $**3028** |

---

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

Other intangible assets are comprised of the following:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Gross Carrying Amount** | **Accumulated Amortization** | **Net Carrying Amount** |
| **Other intangible assets, net** | | | |
| &nbsp;&nbsp;Customer relationships | $1330 | $(94) | $1236 |
| &nbsp;&nbsp;Capitalized software | 1152 | (698) | 454 |
| &nbsp;&nbsp;Customer-related intangible assets | 338 | (45) | 293 |
| &nbsp;&nbsp;Patents and technology | 333 | (213) | 120 |
| &nbsp;&nbsp;Trademarks | 36 | (19) | 17 |
| &nbsp;&nbsp;Other intangible assets | 55 | (40) | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Other intangible assets, net**  | $**3244** | $**(1109)** | $**2135** |

---

Amortization expense related to intangible assets was $100 million and $76 million for the years ended December 31, 2024 and 2023, respectively. Estimated intangible asset amortization expense for each of the next five years are as follows:

---

| | |
|:---|:---|
| | **Amount** |
| 2025 | $107 |
| 2026 | 128 |
| 2027 | 130 |
| 2028 | 133 |
| 2029 | 145 |

---

**Note 11. Other Assets**

---

| | |
|:---|:---|
| | **December 31,** |
| | **2024** |
| Non-recurring engineering costs | $1146 |
| Right-of-use assets | 220 |
| Other | 128 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Other assets**  | $**1494** |

---

**Note 12. Leases**

Aerospace's operating lease portfolio includes corporate offices, research and development facilities, manufacturing sites, IT equipment, rail cars, automobiles, and certain other equipment. The majority of Aerospace's leases have remaining lease terms of one year to 20 years, some of which include options to extend the leases for five years or more. Operating lease ROU assets are included within Other assets. Aerospace includes the current portion of operating lease liabilities within Accrued liabilities, and the non- current portion of operating lease liabilities within Other liabilities. Operating lease costs of $38 million and $26 million were recognized in the Combined Statements of Operations for the periods ended December 31, 2024 and December 31, 2023, respectively. The finance leases are not considered significant to the Combined Balance Sheet or Combined Statements of Operations.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

A portion of Aerospace's real estate leases are subject to annual changes in the Consumer Price Index ("CPI"). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred.

Supplemental cash flow information related to leases was as follows:

---

| | |
|:---|:---|
| | **December 31,** |
| | **2024** |
| **Cash paid for amounts included in the measurement of lease liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash flows for operating leases | $38 |
| **Right-of-use assets obtained in exchange for lease obligations** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating leases | 30 |

---

Supplemental balance sheet information related to leases was as follows:

---

| | |
|:---|:---|
| | **December 31,** |
| | **2024** |
| **Operating leases** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | $220 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | $34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total operating lease liabilities**  | $**237** |

---

---

| | |
|:---|:---|
| | **December 31,** |
| | **2024** |
| Weighted-average remaining lease term (in years): | 11 |
| Weighted-average discount rate | 5% |

---

As of December 31, 2024, maturities of operating lease liabilities were as follows:

---

| | |
|:---|:---|
| | **Amount** |
| 2025 | $48 |
| 2026 | 47 |
| 2027 | 41 |
| 2028 | 39 |
| 2029 | 29 |
| Thereafter | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total operating lease payments**  | **294** |
| Less: Interest | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total maturities of operating lease liabilities**  | $**237** |

---

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Note 13. Accrued Liabilities**

---

| | |
|:---|:---|
| | **December 31,** |
| | **2024** |
| Customer-related liabilities | $558 |
| Real estate, VAT, and other taxes | 291 |
| Compensation, benefits and other employee-related | 253 |
| Supplier-related liabilities | 206 |
| Environmental costs | 169 |
| Warranty reserves | 101 |
| Operating lease liabilities | 34 |
| Other | 181 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Accrued liabilities** | $**1793** |

---

**Note 14. Other Liabilities**

---

| | |
|:---|:---|
| | **December 31,** |
| | **2024** |
| Environmental costs | $412 |
| Income taxes | 235 |
| Pension and other employee-related | 193 |
| Operating lease liabilities | 203 |
| Deferred tax liabilities | 59 |
| Other | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Other liabilities**  | $**1156** |

---

**Note 15. Stock-Based Compensation Plans**

Honeywell maintains stock-based compensation plans under which it grants stock options and restricted stock units to certain management level employees, including certain employees of Aerospace. The Combined Statements of Operations reflect an allocation of these expenses on a specific identification basis for employees who exclusively supported Aerospace or, when specific identification is not practicable, a proportional cost allocation method primarily based on revenue, depending on the nature of the services. The amounts presented are not necessarily indicative of future awards and do not necessarily reflect the costs that Aerospace would have incurred as an independent company for the periods presented.

For the years ended December 31, 2024 and 2023, the Company recognized $74 million and $73 million of stock-based compensation cost within Selling, general and administrative expenses in the Combined Statements of Operations, respectively, of which $36 million and $37 million related to compensation costs for direct employees of Aerospace, respectively, and $38 million and $36 million related to compensation costs allocated from Honeywell, respectively. Refer to Note 3 Related Party Transactions – Corporate Allocations for further details.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Note 16. Accumulated Other Comprehensive Loss**

The changes in Accumulated other comprehensive loss are provided in the following table:

---

| | | | |
|:---|:---|:---|:---|
| | **Pre-tax** | **Tax** | **After-tax** |
| **Year Ended December 31, 2023** | | | |
| Foreign exchange translation adjustment | $(16) | $— | $(16) |
| Pension adjustments | 3 | (1) | 2 |
| Changes in fair value of effective cash flow hedges | (1) |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total net current period other comprehensive income (loss)**  | $**(14)** | $**(1)** | $**(15)** |
| **Year Ended December 31, 2024** |  |  |  |
| Foreign exchange translation adjustment | $38 | $— | $38 |
| Pension adjustments | (4) | 1 | (3) |
| Changes in fair value of effective cash flow hedges | 8 | (2) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total net current period other comprehensive income (loss)**  | $**42** | $**(1)** | $**41** |

---

***Components of Accumulated Other Comprehensive Loss***

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Foreign exchange translation adjustment | $(312) | $(274) |
| Pension adjustments | 1 | (2) |
| Changes in fair value of cash flow hedges | (1) | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Accumulated other comprehensive loss**  | $**(312)** | $**(271)** |

---

***Changes in Accumulated Other Comprehensive Loss by Component***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Foreign Exchange Translation Adjustment** | **Pension Adjustments** | **Changes in Fair Value of Cash Flow Hedges** | **Total** |
| **Balance at January 1, 2023**  | $**(290)** | $**—** | $**4** | $**(286)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | 16 | (2) |  | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts reclassified from accumulated other comprehensive loss |  |  | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net current period other comprehensive income (loss)**  | **16** | **(2)** | **1** | **15** |
| **Balance at December 31, 2023**  | **(274)** | **(2)** | **5** | **(271)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | (38) | 3 | (5) | (40) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amounts reclassified from accumulated other comprehensive loss |  |  | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net current period other comprehensive income (loss)**  | (38) | 3 | (6) | (41) |
| **Balance at December 31, 2024**  | $**(312)** | $**1** | $**(1)** | $**(312)** |

---

Amounts reclassified out of Accumulated other comprehensive loss relate to pension adjustments are included within Other expense, net in the Combined Statements of Operations. Amounts reclassified out of Accumulated other comprehensive loss related to cash flow hedges are included within Net sales or Cost of products and services sold in the Combined Statements of Operations, depending on the nature of the underlying transaction being hedged.

------

**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Note 17. Postretirement Benefit Plans**

***Honeywell Sponsored Pension Plans***

Certain employees of the Aerospace participate in U.S. pension plans sponsored by Honeywell. For the purposes of the Combined Financial Statements, Aerospace accounts for these plans as multiemployer plans as they are not sponsored by Aerospace. Therefore, the related assets and liabilities are not reflected in the Combined Balance Sheet. The Combined Statements of Operations reflect an allocation of $11 million and $11 million for the years ended December 31, 2024 and 2023, respectively, related to service costs for the multiemployer plans associated with Aerospace's employees. These allocated costs are recorded within Selling, general and administrative expenses in the Combined Statements of Operations.

***Aerospace Sponsored Pension and Postretirement Benefit Plans***

Aerospace sponsors a number of unfunded non-U.S. defined benefit pension plans. The largest plans are closed to new participants. The plans use a December 31 measurement date consistent with Aerospace's fiscal year. As of December 31, 2024, these pension plans were not material to the Combined Financial Statements.

**Note 18. Commitments and Contingencies**

***Environmental Matters***

Aerospace is subject to various federal, state, local, and foreign government requirements relating to the protection of the environment. Aerospace believes that, as a general matter, Aerospace's policies, practices, and procedures are properly designed to prevent unreasonable risk of environmental damage and personal injury and that the handling, manufacture, use, and disposal of hazardous substances are in accordance with environmental and safety laws and regulations. However, mainly because of past operations and operations of predecessor companies, Aerospace, like other companies engaged in similar businesses, incurred remedial response and voluntary cleanup costs for site contamination and is a party to lawsuits and claims associated with environmental and safety matters, including past production of products containing hazardous substances. Additional lawsuits, claims, and costs involving environmental matters are likely to continue to arise in the future.

With respect to environmental matters involving site contamination, Aerospace continually conducts studies, individually or jointly with other potentially responsible parties, to determine the feasibility of various remedial techniques. It is Aerospace's policy to record appropriate liabilities for environmental matters when remedial efforts or damage claim payments are probable and the costs can be reasonably estimated. Such liabilities are based on Aerospace's best estimate of the undiscounted future costs required to complete the remedial work. The recorded liabilities are adjusted periodically as remediation efforts progress or as additional technical, regulatory, or legal information becomes available. Given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other potentially responsible parties, technology, and information related to individual sites, Aerospace does not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of Aerospace's recorded liabilities. Aerospace expects to fund expenditures for these matters from operating cash flows. The timing of cash expenditures depends on a number of factors, including the timing of remedial investigations and feasibility studies, the timing of litigation and settlements of remediation liability, personal injury and property damage claims, regulatory approval of cleanup projects, remedial techniques to be utilized, and agreements with other parties.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

The following table summarizes information concerning Aerospace's recorded liabilities for environmental costs across approximately 324 sites:

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| | |
|:---|:---|
| | **December 31,** |
| | **2024** |
| **Beginning of year**  | $**536** |
| &nbsp;&nbsp;&nbsp;&nbsp;Accruals for environmental matters deemed probable and reasonably estimable | 235 |
| &nbsp;&nbsp;&nbsp;&nbsp;Environmental liability payments | (190) |
| **End of year**  | $**581** |

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Environmental liabilities are included in the following balance sheet accounts:

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| | |
|:---|:---|
| | **December 31,** |
| | **2024** |
| Accrued liabilities | $169 |
| Other liabilities | 412 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total environmental liabilities**  | $**581** |

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Aerospace does not currently possess sufficient information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation, or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined, although they could be material to Aerospace's combined results of operations and operating cash flows in the periods recognized or paid. However, considering Aerospace's past experience and existing reserves, Aerospace does not expect that environmental matters will have a material adverse effect on its combined financial position.

***Litigation Matters***

*Flexjet v. Honeywell International Inc.*

Flexjet, LLC ("Flexjet") provides private jet services to customers. Aerospace maintains aircraft engine maintenance service contracts with Flexjet. During the COVID-19 pandemic, a customer dispute arose over delayed engine deliveries and specified engine enrollments under these maintenance service contracts. In 2021, Parent notified Flexjet that it was invoking force majeure provisions in response to the pandemic. On March 1, 2023, Flexjet brought suit against Parent, alleging breach of the parties' aircraft engine maintenance service agreement (the "MSA"), seeking liquidated damages for delayed engine repairs, and claiming that its liquidated damages continue to accrue monthly related to engines awaiting repair.

The suit was filed in the Supreme Court of the State of New York, County of New York, Commercial Division. On December 12, 2024, the court issued a partial summary judgment order holding that the MSA could not be terminated for convenience. On May 8, 2025, the court ruled on the remaining issues in the parties' motions for summary judgment, finding that the MSA's liquidated damages provision is enforceable and dismissing the Parent's force majeure defense, among other rulings. The court's second summary judgment order also held that a trial is necessary to determine whether and to what extent specific engines are covered by the MSA. In court filings, Flexjet claimed that it is entitled to liquidated damages of at least $500 million, and further claimed that it is owed additional liquidated damages substantially in excess of that amount, in each case before pre-judgment interest. Parent filed notices of appeal of the court's summary judgment decisions on January 10, 2025 and June 17, 2025.

In two related cases filed by third-party aircraft repair and services companies, Duncan Aviation, Inc. ("Duncan") and StandardAero Business Aviation Services, LLC ("StandardAero") brought suit against Flexjet for amounts allegedly owed for services provided. The Duncan litigation was filed in the U.S. District Court of Nebraska and Flexjet purported to join Parent as a third-party defendant in the Duncan litigation. Flexjet's third-party suit against Parent was transferred to the U.S. District Court for the Southern District of New York and was subsequently dismissed. The StandardAero litigation was filed in the Supreme Court of the State of New York, County of New York, Commercial Division. Flexjet filed amended pleadings in the Duncan and StandardAero cases on January 10,

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

2025 and June 10, 2025, purporting to join Parent as a third-party defendant and claiming that amounts allegedly owed to the respective plaintiffs are the liabilities of Parent.

Aerospace has recorded accruals in accordance with ASC 450, *Contingencies*, with respect to the Flexjet-related matters, which accruals as of December 31, 2024 were not material. In December 2025, Parent announced it was in ongoing settlement negotiations with Flexjet and the other parties to the litigation matters. Based on negotiations as of December 22, 2025, Aerospace increased the accrual for this matter by approximately $370 million in the fourth quarter of 2025.

On January 16, 2026, Parent completed a comprehensive settlement relating to its lawsuit with Flexjet. As part of this comprehensive settlement, Parent entered into settlement agreements with Duncan, StandardAero, and Flexjet. As of January 21, 2026, each of these cases have been dismissed. These settlements resolve all legal disputes among the parties arising out of the alleged breach of the MSA.

In connection with these settlements, Aerospace paid $59 million in December 2025 associated with the Duncan and StandardAero settlements. Aerospace paid $375 million in the first quarter of 2026 associated with a settlement payment to Flexjet.

Contemporaneous with Parent's entry into the settlement agreement with Flexjet, Flexjet and Parent amended the MSA to extend the term through 2035.

***Other Matters***

Aerospace is subject to a number of other lawsuits, investigations, and disputes (some of which involve substantial amounts claimed) arising out of the conduct of Aerospace's business, including matters relating to commercial transactions, intellectual property, and environmental, health, and safety matters. Aerospace recognizes liabilities for any contingency that is probable of occurrence and reasonably estimable. Aerospace continually assesses the likelihood of adverse judgments or outcomes in such matters, as well as potential ranges of probable losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter, and if appropriate, with the assistance of outside legal counsel and other experts.

Given the uncertainty inherent in litigation and investigations, Aerospace cannot predict when or how these matters will be resolved and does not believe it is possible to develop estimates of reasonably possible loss (or a range of possible loss) in excess of current accruals for commitment and contingency matters. Considering Aerospace's past experience and existing accruals, Aerospace does not expect the outcome of such matters, either individually or in the aggregate, to have a material adverse effect on Aerospace's Combined financial position. Because most contingencies are resolved over long periods of time, potential liabilities are subject to change due to new developments (including new discovery of facts, changes in legislation, and outcomes of similar cases through the judicial system) or changes in assumptions, which could cause Aerospace to pay damage awards or settlements (or become subject to equitable remedies) that could have a material adverse effect on Aerospace's combined results of operations or operating cash flows in the periods recognized or paid.

**Note 19. Segment Financial Data**

Aerospace globally manages its business operations through three operating segments, each of which also qualifies as a reportable segment. Segment information is consistent with how the President and Chief Executive Officer of Aerospace, who is the CODM, and management reviews Aerospace's business, makes investing and resource allocation decisions, and assesses operating performance.

**Electronic Solutions** – The Electronic Solutions product portfolio is organized into five offerings: Avionics, Navigation and Sensors, Services and Connectivity, Electromagnetic Defensive Solutions, and Space. The products include avionics, radars, flight management systems, precision inertial navigation systems, high-performance space components, solutions that enable complex sensing protection, targeting and communications operations in the electromagnetic spectrum, electronic warfare solutions, as well as solutions that focus on in-flight connectivity, cockpit safety, defense radiofrequency, and counter unmanned aerial systems. Customers include OEMs, airlines,

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

defense prime contractors, space-system integrators, and aftermarket maintenance, repair, and overhaul providers. Offerings include sales of perpetual licenses to OEM customers to manufacture certain products.

**Engines & Power Systems** – The Engines & Power Systems product portfolio is organized into two offerings: Engines and Power Systems. Its products include propulsion engines, small and military auxiliary power units, narrowbody and widebody APUs, electric power systems, and fuel cells and adjacencies. Engines & Power Systems serves a balance of all aerospace end markets. Principal customers include major aerospace OEMs, U.S. military branches, and scaled aftermarket service providers.

**Control Systems** – The Control Systems product portfolio is organized into three offerings: Air and Thermal Control, Motion Control, and Honeywell Federal Solutions. Its products include environmental control systems, cabin pressure control systems, thermal management systems, engine start systems, fuel control systems, flight control actuation systems, and wheels and braking systems. Offerings include sales of perpetual licenses to OEM customers to manufacture certain products. Additionally, the Honeywell Federal Solutions offering provides site-management services for government-owned facilities.

The CODM evaluates segment performance based on Segment Profit, by comparing budget-to-actual and period-over-period results. Each Segment's Profit excludes taxes, interest, amortization of acquisition-related intangibles, stock compensation expense, environmental remediation expense, pension income (expense), repositioning and other charges, and other items within Other expense, net.

Aerospace does not report asset information by segment for internal or external reporting purposes as Aerospace's CODM does not assess performance, make strategic decisions, or allocate resources based on assets.

The below table summarizes information about significant segment net sales and expenses and other segment items, for each historical period:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| | **Electronic Solutions** | **Engines & Power Systems** | **Control Systems** | **Corporate and All Other** | **Total Aerospace** |
| **Net sales** | | | | | |
| &nbsp;&nbsp;Products<sup>1</sup> | $3542 | $1881 | $2712 |  | $**8135** |
| &nbsp;&nbsp;Services | 2483 | 2850 | 1977 |  | **7310** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Net sales**  | **6025** | **4731** | **4689** |  | **15445** |
| **Less** |  |  |  |  |  |
| &nbsp;&nbsp;Cost of products and services sold<sup>2</sup> | 3275 | 3530 | 3053 |  |  |
| &nbsp;&nbsp;Other segment items<sup>3</sup> | 838 | 509 | 410 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Segment Profit**  | $**1912** | $**692** | $**1226** | $**(122)** | $**3708** |
| Depreciation and amortization | $119 | $101 | $92 | $— | $312 |

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__________________

1. Net sales for Engines & Power Systems was reduced $372 million due to the strategic agreement with Bombardier to provide advanced technology for current and future Bombardier aircraft in avionics, propulsion, and satellite communications technologies.

2. Amounts exclude acquisition-related intangibles amortization, repositioning charges, and environmental remediation expenses.

3. For each reportable segment, the other segment items category includes corporate allocations, equity income of affiliated companies, Selling, general and administrative, and Research and development expenses.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
| | **Electronic Solutions** | **Engines & Power Systems** | **Control Systems** | **Corporate and All Other** | **Total Aerospace** |
| **Net sales** | | | | | |
| &nbsp;&nbsp;Products | $2787 | $1985 | $2326 |  | $**7098** |
| &nbsp;&nbsp;Services | 2311 | 2610 | 1771 |  | **6692** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Net sales**  | **5098** | **4595** | **4097** | $— | **13790** |
| **Less** |  |  |  |  |  |
| &nbsp;&nbsp;Cost of products and services sold<sup>1</sup> | 2823 | 3114 | 2487 |  |  |
| &nbsp;&nbsp;Other segment items<sup>2</sup> | 695 | 460 | 343 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Segment Profit**  | $**1580** | $**1021** | $**1267** | $**(93)** | $**3775** |
| Depreciation and amortization | $114 | $88 | $83 | $— | $285 |

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__________________

1. Amounts exclude acquisition-related intangibles amortization, repositioning charges, and environmental remediation expenses.

2. For each reportable segment, the other segment items category includes corporate allocations, equity income of affiliated companies, Selling, general and administrative, and Research and development expenses.

A reconciliation of Segment Profit to Income before taxes is as follows:

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| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2024** | **2023** |
| Electronic Solutions | $1912 | $1580 |
| Engine & Power Systems | 692 | 1021 |
| Control Systems | 1226 | 1267 |
| Corporate and All Other | (122) | (93) |
| **Total Segment Profit**  | 3708 | 3775 |
| Amortization of acquisition-related intangibles<sup>1</sup> | (34) | (17) |
| Stock compensation expense<sup>2</sup> | (74) | (73) |
| Environmental remediation expenses<sup>3</sup> | (235) | (204) |
| Other, net<sup>4</sup> | 3 | (10) |
| **Income before taxes**  | $3368 | $3471 |

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1. Amounts included in Cost of products and services sold and Selling, general and administrative expenses.

2. Amounts included in Selling, general and administrative expenses.

3. Amounts included in Cost of products and services sold and Other expense, net.

4. Amounts include interest and other financial charges, pension income (expense), repositioning charges, and other expenses.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Note 20. Geographic Areas**

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| | | | |
|:---|:---|:---|:---|
| | **Net Sales**<sup>1</sup> | **Net Sales**<sup>1</sup> | **Long-lived Assets**<sup>2</sup> |
| | **Years Ended December 31,** | **Years Ended December 31,** | **Year Ended December 31,** |
| | **2024** | **2023** | **2024** |
| United States | $10873 | $10017 | $1564 |
| Switzerland | 2787 | 2263 | 1 |
| Europe, Middle East and Africa (excluding Switzerland) | 386 | 305 | 126 |
| Other International | 1399 | 1205 | 342 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total**  | $**15445** | $**13790** | $**2033** |

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__________________

1. Sales between geographic areas approximate market value and are not significant. Net sales are classified according to their country of origin. Included in United States Net sales are export sales of $3,744 million and $3,317 million for the years ended December 31, 2024 and 2023, respectively.

2. Long-lived assets are comprised of Property, plant and equipment, net.

**Note 21. Subsequent Events**

The Combined Financial Statements of Aerospace were derived from the consolidated financial statements of Honeywell, which issued its annual financial statements as of and for the year ended December 31, 2024 on February 14, 2025. Accordingly, the Company has evaluated transactions for consideration as recognized subsequent events in these financial statements through the date of February 14, 2025. Additionally, the Company has evaluated transactions that occurred through December 22, 2025, the date the Combined Financial Statements were available for issuance, for the purposes of unrecognized subsequent events. The Company has updated its evaluation of unrecognized subsequent events through January 28, 2026, the date the Combined Financial Statements were reissued, see Note 18 as it relates to Flexjet litigation claims that were settled on January 21, 2026. Other than the items discussed within the Notes to Combined Financial Statements, no matters were identified that required adjustment of the Combined Financial Statements or additional disclosure.

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**Confidential Treatment Requested by Honeywell Aerospace LLC**

**Pursuant to 17 C.F.R. Section 200.83**

**Honeywell Aerospace LLC**

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