# EDGAR Filing Document

**Accession Number:** 0002105139
**File Stem:** 0001213900-26-054148
**Filing Date:** 2026-5
**Character Count:** 2396964
**Document Hash:** 4ce62327c777b2bf6e9513d64bd9acc0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-054148.hdr.sgml**: 20260511

**ACCESSION NUMBER**: 0001213900-26-054148

**CONFORMED SUBMISSION TYPE**: 10-12B

**PUBLIC DOCUMENT COUNT**: 36

**FILED AS OF DATE**: 20260511

**DATE AS OF CHANGE**: 20260511

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ADI GLOBAL DISTRIBUTION INC.
- **CENTRAL INDEX KEY:** 0002105139
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-HARDWARE [5072]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 413033245
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-12B
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-43281
- **FILM NUMBER:** 26960715

**BUSINESS ADDRESS:**
- **STREET 1:** 251 LITTLE FALLS DRIVE
- **CITY:** WILMINGTON
- **STATE:** DE
- **ZIP:** 19808
- **BUSINESS PHONE:** 302-636-5400

**MAIL ADDRESS:**
- **STREET 1:** 275 BROADHOLLOW ROAD, SUITE 400
- **CITY:** MELVILLE
- **STATE:** NY
- **ZIP:** 11747

**As Filed with the Securities and Exchange Commission on May 11, 2026.**

**File No.** 

**UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549**

**FORM 10**

**GENERAL FORM FOR REGISTRATION OF SECURITIES<br> Pursuant to Section 12(b) or (g) of<br> the Securities Exchange Act of 1934**

**ADI Global Distribution Inc.**

(Exact name of Registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **41-3033245** |
| **(State or other jurisdiction of** <br>**incorporation or organization)** <br>**275 Broadhollow Rd Suite 400, Melville, New York** | **(I.R.S. Employer**<br>**Identification No.)**<br>**11747** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**Registrant's telephone number, including area code:<br> (631) 692-1000**

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

---

| | |
|:---|:---|
| **Title of each class to be so registered** | N**ame of each exchange on which** <br> **each class is to be registere**d |
| **Common Stock, par value $0.001 per shar**e | **New York Stock Exchange** |

---

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.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☐ <br> 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 7(a)(2)(B) of the Securities Act. ☐

**ADI Global Distribution Inc.**

**INFORMATION REQUIRED IN REGISTRATION STATEMENT<br> CROSS-REFERENCE SHEET BETWEEN INFORMATION STATEMENT AND ITEMS OF FORM 10**

Certain information required to be included in this Form 10 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. *Business*.**

The information required by this item is contained under the sections of the information statement entitled "Information Statement Summary," "The Separation and Distribution," "Description of Material Indebtedness," "Capitalization," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Business," "Certain Relationships and Related Person Transactions," and "Where You Can Find More Information." Those sections are incorporated herein by reference.

**Item 1A. *Risk Factors*.**

The information required by this item is contained under the sections of the information statement entitled "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements." Those sections are incorporated herein by reference.

**Item 2. *Financial Information.***

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

**Item 3. *Properties.***

The information required by this item is contained under the sections of the information statement entitled "Information Statement Summary," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business." Those sections are incorporated herein by reference.

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

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

**Item 5. *Directors and Executive Officers.***

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

**Item 6. *Executive Compensation.***

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

**Item 7. *Certain Relationships and Related Transactions, and Director Independence.***

The information required by this item is contained under the sections of the information statement entitled "Management," "Certain Relationships and Related Person Transactions," "Risk Factors—Risks Relating to the Spin-Off and Our Relationship with Resideo" and "The Separation and Distribution." Those sections are incorporated herein by reference.

**Item 8. *Legal Proceedings.***

The information required by this item is contained under the section of the information statement entitled "Business—Legal Proceedings" and *Note 12. Commitments and Contingencies* to the combined financial statements. Those sections are incorporated herein by reference.

**Item 9. *Market Price of, and Dividends on, the Registrant's Common Equity and Related Stockholder Matters.***

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

**Item 10. *Recent Sales of Unregistered Securities.***

The information required by this item is contained under the sections of the information statement entitled "Information Statement Summary—The Separation and Distribution—ADI's Post-Separation Relationship with Resideo," "The Separation and Distribution," "Certain Relationships and Related Person Transactions" and "Description of Capital Stock." Those sections are incorporated herein by reference.

**Item 11. *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 Capital Stock." Those sections are incorporated herein by reference.

**Item 12. *Indemnification of Directors and Officers.***

The information required by this item is contained under the section of the information statement entitled "Description of Capital Stock—Limitations on Liability, Indemnification of Officers and Directors and Insurance." That section is incorporated herein by reference.

**Item 13. *Financial Statements and Supplementary Data.***

The information required by this item is contained under the sections of the information statement entitled "Summary Historical and Unaudited Pro Forma Combined Financial Data," "Unaudited Pro Forma Combined Financial Statements" and "Index to the Combined Financial Statements" and the combined financial statements and related notes referenced therein. Those sections and the combined financial statements and related notes referenced therein are incorporated herein by reference.

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

Not applicable.

**Item 15. *Financial Statements and Exhibits.***

(a) Financial Statements

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

(b) Exhibits

The following documents are filed as exhibits hereto:

---

| | |
|:---|:---|
| **Exhibit<br> Number** | **Exhibit Description** |
| 2.1^ | [Form of Separation and Distribution Agreement](ea028883201ex2-1.htm) |
| 3.1 | [Form of Amended and Restated Certificate of Incorporation of ADI Global Distribution Inc.](ea028883201ex3-1.htm) |
| 3.2 | [Form of Amended and Restated Bylaws of ADI Global Distribution Inc.](ea028883201ex3-2.htm) |
| 3.3 | [Form of Certificate of Designations, Preferences and Rights of Series A Cumulative Convertible Participating Preferred Stock of ADI Global Distribution Inc.](ea028883201ex3-3.htm) |
| 10.1^ | [Form of Transition Services Agreement](ea028883201ex10-1.htm) |
| 10.2^ | [Form of Tax Matters Agreement](ea028883201ex10-2.htm) |
| 10.3 | [Form of Employee Matters Agreement](ea028883201ex10-3.htm) |
| 10.4^ | [Form of Intellectual Property Matters Agreement](ea028883201ex10-4.htm) |
| 10.5<sup>+</sup> | [Form of ADI Global Distribution Inc. 2026 Stock Incentive Plan](ea028883201ex10-5.htm) |
| 10.6<sup>+</sup> | [Form of ADI Global Distribution Inc. 2026 Stock Incentive Plan Stock Option Award Agreement](ea028883201ex10-6.htm) |
| 10.7<sup>+</sup> | [Form of ADI Global Distribution Inc. 2026 Stock Incentive Plan Restricted Stock Unit Agreement](ea028883201ex10-7.htm) |
| 10.8<sup>+</sup> | [Form of ADI Global Distribution Inc. 2026 Stock Incentive Plan Performance Stock Unit Agreement](ea028883201ex10-8.htm) |
| 10.9<sup>+</sup> | [Form of ADI Global Distribution Inc. 2026 Stock Incentive Plan Restricted Stock Unit Agreement (Non-Employee Directors)](ea028883201ex10-9.htm) |
| 10.10<sup>+</sup> | [Form of ADI Global Distribution Inc. 2026 Stock Incentive Plan Deferred Stock Unit Agreement (Non-Employee Directors)](ea028883201ex10-10.htm) |
| 10.11<sup>+</sup> | [Form of ADI Global Distribution Inc. Deferred Compensation Plan for Non-Employee Directors](ea028883201ex10-11.htm) |
| 10.12<sup>+</sup> | [Form of ADI Employee Stock Purchase Plan](ea028883201ex10-12.htm) |
| 10.13<sup>+</sup> | [Form of ADI UK Sharebuilder Plan](ea028883201ex10-13.htm) |
| 10.14<sup>+</sup> | [Form of ADI Global Distribution Inc. Severance Plan for Designated Officers](ea028883201ex10-14.htm) |
| 10.15\* | Form of Shareholders Agreement |
| 10.16^ | [Form of Registration Rights Agreement](ea028883201ex10-16.htm) |
| 21.1 | [List of Subsidiaries](ea028883201ex21-1.htm) |
| 99.1 | [Information Statement of ADI Global Distribution Inc., preliminary and subject to completion, dated , 2026](ea028883201ex99-1.htm) |
| 99.2 | [Form of Notice Regarding the Internet Availability of Information Statement Materials](ea028883201ex99-2.htm) |

---

---

| | |
|:---|:---|
| \* | To be filed by amendment. |
| + | Indicates management contract or compensatory plan. |
| ^ | Schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Registrant undertakes to furnish supplemental copies of any of the omitted schedules upon request by the SEC. |

---

**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.

---

| | | |
|:---|:---|:---|
|  | **ADI Global Distribution Inc.** | **ADI Global Distribution Inc.** |
|  | By: | /s/ Robert Aarnes |
|  | Name: | Robert Aarnes |
|  | Title: | President and Chief Executive Officer |
| Date: May 11, 2026 |  |  |

---

## Exhibit 2.1

**Exhibit 2.1**

**SEPARATION AND DISTRIBUTION AGREEMENT**

**by and between**

**RESIDEO TECHNOLOGIES, INC.**

**and**

**ADI GLOBAL DISTRIBUTION INC.**

**Dated as of [●], 2026**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| Article I | Article I | Article I |
| DEFINITIONS AND INTERPRETATION | DEFINITIONS AND INTERPRETATION | DEFINITIONS AND INTERPRETATION |
| Section 1.1 | Definitions | 3 |
| Section 1.2 | Other Defined Terms | 19 |
| Section 1.3 | References; Interpretation | 20 |
| Article II | Article II | Article II |
| THE SEPARATION | THE SEPARATION | THE SEPARATION |
| Section 2.1 | General | 20 |
| Section 2.2 | Restructuring; Transfer of Assets; Assumption of Liabilities | 20 |
| Section 2.3 | Treatment of Shared Contracts | 22 |
| Section 2.4 | Termination of Agreements | 23 |
| Section 2.5 | Transfers Not Effected at or Prior to the Effective Time; Transfers Deemed Effective as of the Effective Time | 23 |
| Section 2.6 | Conveyancing and Assumption Instruments | 25 |
| Section 2.7 | Further Assurances; Ancillary Agreements | 25 |
| Section 2.8 | Novation of Liabilities; Indemnification | 26 |
| Section 2.9 | Guarantees; Credit Support Instruments | 28 |
| Section 2.10 | Disclaimer of Representations and Warranties | 30 |
| Section 2.11 | ADI Financing Arrangements | 31 |
| Section 2.12 | Cash Management; Consideration; Cash Adjustment | 31 |
| Article III | Article III | Article III |
| THE DISTRIBUTION AND ACTIONS PENDING THE DISTRIBUTION;OTHER TRANSACTIONS | THE DISTRIBUTION AND ACTIONS PENDING THE DISTRIBUTION;OTHER TRANSACTIONS | THE DISTRIBUTION AND ACTIONS PENDING THE DISTRIBUTION;OTHER TRANSACTIONS |
| Section 3.1 | Distribution | 33 |
| Section 3.2 | Fractional Shares | 33 |
| Section 3.3 | Actions in Connection with the Distribution | 34 |
| Section 3.4 | Sole Discretion of Resideo | 34 |
| Section 3.5 | Conditions to Distribution | 35 |
| Section 3.6 | Organizational Documents | 36 |
| Section 3.7 | Directors | 36 |
| Section 3.8 | Officers | 37 |
| Section 3.9 | Resignations and Removals | 37 |
| Section 3.10 | Cooperation Regarding the Distribution | 37 |

---

i

---

| | | |
|:---|:---|:---|
| Article IV | Article IV | Article IV |
| CERTAIN COVENANTS | CERTAIN COVENANTS | CERTAIN COVENANTS |
| Section 4.1 | Cooperation | 37 |
| Section 4.2 | Resideo Retained Names | 38 |
| Section 4.3 | ADI Retained Names | 39 |
| Article V | Article V | Article V |
| INDEMNIFICATION | INDEMNIFICATION | INDEMNIFICATION |
| Section 5.1 | Release of Pre-Effective Time Claims | 40 |
| Section 5.2 | Indemnification by Resideo | 42 |
| Section 5.3 | Indemnification by ADI SpinCo | 42 |
| Section 5.4 | Procedures for Indemnification | 43 |
| Section 5.5 | Cooperation in Defense and Settlement | 46 |
| Section 5.6 | Management of Existing Actions | 46 |
| Section 5.7 | Indemnification Payments | 47 |
| Section 5.8 | Indemnification Obligations Net of Insurance Proceeds and Other Amounts | 47 |
| Section 5.9 | Contribution | 48 |
| Section 5.10 | Additional Matters; Survival of Indemnities; Coordination | 48 |
| Article VI | Article VI | Article VI |
| PRESERVATION OF RECORDS; ACCESS TO INFORMATION;CONFIDENTIALITY; PRIVILEGE | PRESERVATION OF RECORDS; ACCESS TO INFORMATION;CONFIDENTIALITY; PRIVILEGE | PRESERVATION OF RECORDS; ACCESS TO INFORMATION;CONFIDENTIALITY; PRIVILEGE |
| Section 6.1 | Preservation of Corporate Records | 49 |
| Section 6.2 | Access to Information | 49 |
| Section 6.3 | Witness Services | 52 |
| Section 6.4 | Reimbursement; Other Matters | 52 |
| Section 6.5 | Confidentiality | 53 |
| Section 6.6 | Privilege Matters | 54 |
| Section 6.7 | Ownership of Information | 56 |
| Section 6.8 | Processing of Personal Information | 56 |
| Section 6.9 | Other Agreements | 56 |
| Article VII | Article VII | Article VII |
| DISPUTE RESOLUTION | DISPUTE RESOLUTION | DISPUTE RESOLUTION |
| Section 7.1 | Arbitration | 57 |
| Section 7.2 | Specific Performance | 58 |
| Section 7.3 | Treatment of Arbitration | 58 |
| Section 7.4 | Continuity of Service and Performance | 59 |
| Section 7.5 | Consolidation | 59 |
| Section 7.6 | Coordination | 59 |

---

ii

---

| | | |
|:---|:---|:---|
| Article VIII | Article VIII | Article VIII |
| INSURANCE | INSURANCE | INSURANCE |
| Section 8.1 | Insurance Matters | 59 |
| Section 8.2 | Certain Matters Relating to Organizational Documents | 63 |
| Section 8.3 | Indemnitor of First Resort | 63 |
| Article IX | Article IX | Article IX |
| MISCELLANEOUS | MISCELLANEOUS | MISCELLANEOUS |
| Section 9.1 | Entire Agreement; Construction | 63 |
| Section 9.2 | Ancillary Agreements | 64 |
| Section 9.3 | Counterparts | 64 |
| Section 9.4 | Survival of Agreements | 64 |
| Section 9.5 | Expenses | 64 |
| Section 9.6 | Notices | 65 |
| Section 9.7 | Amendments | 66 |
| Section 9.8 | Assignment | 66 |
| Section 9.9 | Successors and Assigns | 66 |
| Section 9.10 | Termination | 66 |
| Section 9.11 | Payment Terms | 67 |
| Section 9.12 | Subsidiaries | 68 |
| Section 9.13 | Third Party Beneficiaries | 68 |
| Section 9.14 | Title and Headings | 68 |
| Section 9.15 | Exhibits and Schedules | 68 |
| Section 9.16 | Governing Law | 69 |
| Section 9.17 | Severability | 69 |
| Section 9.18 | Interpretation | 69 |
| Section 9.19 | No Duplication; No Double Recovery | 69 |
| Section 9.20 | Tax Treatment of Payments | 69 |
| Section 9.21 | No Waiver | 69 |
| Section 9.22 | No Admission of Liability | 69 |
| Section 9.23 | Advisors | 70 |
| Section 9.24 | Authority | 70 |
| Section 9.25 | Publicity | 70 |

---

iii

**List of Exhibits**

---

| | |
|:---|:---|
| Exhibit A | Data Privacy Agreement |
| Exhibit B | Employee Matters Agreement |
| Exhibit C | Intellectual Property Matters Agreement |
| Exhibit D | Tax Matters Agreement |
| Exhibit E | Transition Services Agreement |
| Exhibit F | Amended and Restated Certificate of Incorporation of ADI SpinCo |
| Exhibit G | Amended and Restated Bylaws of ADI SpinCo |
| Exhibit H | Certificate of Designations for ADI SpinCo Preferred Stock |

---

iv

**SEPARATION AND DISTRIBUTION AGREEMENT**

This SEPARATION AND DISTRIBUTION AGREEMENT (this "<u>Agreement</u>"), dated as of [●], 2026 is entered into by and between Resideo Technologies, Inc., a Delaware corporation ("<u>Resideo</u>"), and ADI Global Distribution Inc., a Delaware corporation and, as of the date hereof, a wholly owned Subsidiary of Resideo ("<u>ADI SpinCo</u>"). For purposes of this Agreement, "<u>Party</u>" or "<u>Parties</u>" means Resideo or ADI SpinCo, individually or collectively, as the case may be. Capitalized terms used in this Agreement and not otherwise defined herein shall have the meaning set forth in Article I hereof.

W I T N E S S E T H:

WHEREAS, Resideo, acting through its direct and indirect Subsidiaries, currently conducts the Resideo Retained Business and the ADI Business;

WHEREAS, the Board of Directors of Resideo (the "<u>Resideo Board</u>"), has determined that it is appropriate, desirable and in the best interests of Resideo and its stockholders to separate Resideo into two separate, publicly traded companies, one for each of (i) the Resideo Retained Business, which shall be owned and conducted, directly or indirectly, by Resideo and the Persons that will be Subsidiaries thereof immediately following the Distribution (as defined below) and (ii) the ADI Business, which shall be owned and conducted, directly or indirectly, by ADI SpinCo and the Persons that will be Subsidiaries thereof immediately following the Distribution (the "<u>Separation</u>");

WHEREAS, in order to effect the Separation, the Resideo Board has determined that it is appropriate, desirable and in the best interests of Resideo and its stockholders for Resideo to undertake the Internal Reorganization;

WHEREAS, in connection with and as part of the Internal Reorganization, and pursuant to the Separation Plan, Resideo will contribute, or cause to be contributed, to ADI SpinCo or a Subsidiary thereof the assets of, and entities conducting, the ADI Business (the "<u>Contribution</u>") and, in exchange therefor, ADI SpinCo shall, or shall cause a Subsidiary thereof to, as applicable, (i) issue to Resideo shares of ADI SpinCo Common Stock and ADI SpinCo Preferred Stock (which issuances may be actual or constructive), (ii) assume (directly or indirectly) certain Liabilities of Resideo and its Subsidiaries associated with the ADI Business, and (iii) pay Resideo an amount of cash equal to the ADI Cash Payment (and any Cash Adjustment payable by ADI SpinCo to Resideo), each as more fully described and subject to the terms and conditions set forth herein;

WHEREAS, on the terms and subject to the conditions hereof, following the completion of the Internal Reorganization, the Contribution and the receipt of the Consideration, and pursuant to the Separation Plan, Resideo shall distribute, on a pro rata basis, to the Record Date Holders, in accordance with the Distribution Ratio, an aggregate of 100% of the issued and outstanding shares of ADI SpinCo Common Stock (such distribution, the "<u>Distribution</u>");

WHEREAS, Resideo, CD&R Channel Holdings, L.P. ("<u>CD&R</u>") and the other party thereto (the other party thereto that holds shares of Resideo Preferred Stock as of the date hereof, together with CD&R, the "<u>Preferred Holders</u>") are parties to that certain Exchange Agreement, dated as of the date hereof (as may be amended, restated or modified from time to time, the "<u>Exchange Agreement</u>), pursuant to which, subject to the terms and conditions set forth therein, substantially concurrent with the Distribution, Resideo will exchange all of the shares of ADI SpinCo Preferred Stock held by it for the number of shares of Resideo Preferred Stock held by the Preferred Holders as set forth in the Exchange Agreement, and all such shares of Resideo Preferred Stock transferred to Resideo by the Preferred Holders in connection with such exchange shall be retired and cease to be outstanding as of immediately following the Distribution;

WHEREAS, (i) the Resideo Board has, among other things, (x) determined that the transactions contemplated by this Agreement and the Ancillary Agreements have a valid business purpose, are in furtherance of and consistent with its business strategy and are in the best interests of Resideo and its stockholders and (y) approved this Agreement, each of the Ancillary Agreements and the transactions contemplated by this Agreement and each Ancillary Agreement and (ii) the Board of Directors of ADI SpinCo (the "<u>ADI SpinCo Board</u>"), has approved this Agreement, each of the Ancillary Agreements (to the extent ADI SpinCo is a party thereto) and the transactions contemplated by this Agreement and each Ancillary Agreement;

WHEREAS, the Parties desire to set forth the principal corporate transactions required to effect the Internal Reorganization, the Contribution and the Distribution, and certain other agreements relating to the relationship of Resideo and ADI SpinCo and their respective Subsidiaries following the Distribution;

WHEREAS, the Parties acknowledge that this Agreement and the Ancillary Agreements represent the integrated agreement of Resideo and ADI SpinCo and their respective Subsidiaries relating to the Internal Reorganization, the Contribution and the Distribution, are being entered into together, and would not have been entered into independently;

WHEREAS, it is the intention of the Parties that the Contribution, the transactions contemplated by the Exchange Agreement and the Distribution (except to the extent of any cash received in lieu of fractional shares of ADI SpinCo Common Stock), taken together, will qualify as a transaction that is tax-free for U.S. federal income Tax purposes under Section 355 and Section 368(a)(1)(D) of the Internal Revenue Code of 1986, as amended (the "<u>Code</u>"); and

WHEREAS, this Agreement, together with the relevant portions of the Separation Plan, is intended to be a "plan of reorganization" within the meaning of Treas. Reg. Section 1.368-2(g).

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements, provisions and covenants contained in this Agreement, the Parties hereby agree as follows:

**Article I<u><br>DEFINITIONS AND INTERPRETATION</u>**

Section 1.1 <u>Definitions</u>. As used in this Agreement, the following terms shall have the following meanings:

&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;(1) "<u>Action</u>" shall mean any demand, action, claim, suit, countersuit, arbitration, inquiry, subpoena, case, litigation, proceeding or investigation (whether civil, criminal, administrative or investigative) by or before any grand jury, any Governmental Entity or any arbitration or mediation tribunal.

&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;(2) "<u>ADI Asset Transferee</u>" shall mean any Person that is or, following the Effective Time, will be a member of the ADI Group to which ADI Assets shall be or have been Transferred at or prior to the Effective Time, or to which a Transfer is contemplated by the Internal Reorganization, the Separation Plan, this Agreement or the Ancillary Agreements to occur after the Effective Time, by an Asset Transferor in order to consummate the transactions contemplated hereby.

&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;(3) "<u>ADI Assets</u>" shall mean:

&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;(i) all interests in the capital stock of, or any other equity interests in, the Persons set forth on <u>Schedule 1.1(3)(i)</u>, and which are held, directly or indirectly, by Resideo immediately prior to the Effective Time;

&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;(ii) the Assets set forth on <u>Schedule 1.1(3)(ii)</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any and all Assets that are expressly contemplated by this Agreement or any Ancillary Agreement as Assets which have been or are to be Transferred to or retained by any member of the ADI 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any and all Assets (other than Cash Equivalents, which shall be governed solely by <u>Section 2.12)</u> reflected on the ADI Balance Sheet or the accounting records supporting such balance sheet and any Assets acquired by or for ADI SpinCo or any other member of the ADI Group subsequent to the date of the ADI Balance Sheet which, had they been so acquired on or before such date and owned as of such date, would have been reflected on the ADI Balance Sheet if prepared on a consistent basis, excluding any dispositions of any of such Assets subsequent to the date of the ADI Balance Sheet;

&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;(v) all rights, title and interest in and to the owned real property set forth on <u>Schedule 1.1(3)(v)</u>, including all land and land improvements, structures, buildings and building improvements, other improvements and appurtenances located thereon (the "<u>ADI Owned Real 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all rights, title and interest in, and to and under the leases or subleases of the real property set forth on <u>Schedule 1.1(3)(vi)</u> and, to the extent provided for in such leases or subleases, any land and land improvements, structures, buildings and building improvements, other improvements and appurtenances located thereon (the "<u>ADI Leased Real 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all (A) Contracts exclusively related to the ADI Business (and any rights or claims arising thereunder), and (B) Contracts (and any rights or claims arising thereunder) that are not exclusively related to the ADI Business which are set forth on <u>Schedule 1.1(3)(vii)(B)</u> (collectively, the Contracts referred to in the immediately preceding clauses (A) and (B), the "<u>ADI Contracts</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the Intellectual Property applications and registrations (including issued patents) set forth on <u>Schedule 1.1(3)(viii)</u>, together with all unregistered Intellectual Property exclusively related to the ADI Business (collectively, the "<u>ADI Intellectual Property</u>"), together with all rights of priority arising from any ADI Intellectual Property, all goodwill associated with any ADI Intellectual Property, and all rights to sue, and to seek and retain damages, for any past, present or future infringement, misappropriation or other violation of any ADI Intellectual Property. For the avoidance of doubt, Intellectual Property that relates to the product and commercial brands listed in <u>Schedule 1.1(5)</u> shall be considered to exclusively relate to the ADI Business;

&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;(ix) all licenses, permits, registrations, approvals and authorizations, in each case, which have been issued by any Governmental Entity that relate exclusively to or are used exclusively in the ADI Business, and to the extent held by a member of the Resideo Group as of the Effective Time, are transferrable in accordance with their respective terms. For the avoidance of doubt, all licenses, permits, registrations, approvals and authorizations that relate to the product and commercial brands listed in <u>Schedule 1.1(5)</u> shall be considered to exclusively relate to the ADI Business;

&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;(x) all Information, including Personal Information, exclusively related to, or exclusively used in, the ADI Business, or any data that has been collected by a member of the ADI Group in respect of the ADI Business (collectively, "<u>ADI Information</u>"). For the avoidance of doubt, Information that relates to the product and commercial brands listed in <u>Schedule 1.1(5)</u> shall be considered to exclusively relate to the ADI Business;

&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;(xi) excluding any Intellectual Property (which is addressed in <u>Section 1.1(3)(viii)</u> above), all other IT Assets that are exclusively used or exclusively held for use in the ADI Business. For the avoidance of doubt, IT Assets that relate to the product and commercial brands listed in <u>Schedule 1.1(5)</u> shall be considered to exclusively relate to the ADI Business;

&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;(xii) all office equipment and furnishings located at the physical site of which the ownership or a leasehold or sub leasehold interest is being Transferred to or retained by a member of the ADI Group (excluding any office equipment and furnishings owned by Persons other than members of the Resideo Group); and

&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;(xiii) other than as set forth in this Agreement, all rights relating to, arising out of or resulting from (A) any Action exclusively related to the ADI Business, including all Actions listed on <u>Schedule 1.1(12)(viii)(A)</u>, or (B) any Action that is not exclusively related to the ADI Business to the extent (but solely to the extent) such rights relate to the ADI Business, including all Actions listed on <u>Schedule 1.1(12)(viii)(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) all other Assets (other than any Assets relating to the ADI Intellectual Property, ADI Owned Real Property, ADI Leased Real Property, ADI Contracts or Assets that are of the type that would be listed in <u>clauses</u> (<u>ix</u>) through (<u>xiii</u>)) that are held by the ADI Group or the Resideo Group immediately prior to the Effective Time and that are primarily used and primarily held for use in the ADI Business as conducted immediately prior to the Effective Time.

Notwithstanding anything to the contrary herein, the ADI Assets shall not include (i) any Assets that are expressly contemplated by this Agreement or by any Ancillary Agreement (or the Schedules hereto or thereto) as Assets to be retained by or Transferred to any member of the Resideo Group, or (ii) any Assets that are determined by Resideo, in good faith prior to the Distribution, to arise primarily from the business or operations of the Resideo Retained Business.

&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;(4) "<u>ADI Balance Sheet</u>" shall mean ADI SpinCo's most recent unaudited pro forma combined balance sheet, including the notes thereto, included in the Form 10 of ADI SpinCo that is declared effective by the Commission.

&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;(5) "<u>ADI Business</u>" shall mean the business comprising Resideo's ADI Global Distribution segment as such business is expressly described in the Distribution Disclosure Documents and conducted by Resideo and its Subsidiaries (including for the avoidance of doubt, members of the ADI Group) prior to the Effective Time, as well as any former businesses previously conducted by Resideo and its Subsidiaries (including for the avoidance of doubt, members of the ADI Group) prior to the Effective Time that would have been part of Resideo's ADI Global Distribution segment had such businesses been conducted by Resideo and its Subsidiaries as of the Effective Time, with any determination thereof to be made reasonably by Resideo. For the avoidance of doubt, the "ADI Business" (i) includes the distribution of products and solutions designed, manufactured or developed by Resideo's Product and Solutions segment as of the Effective Time, but does not include the design, manufacture or development of any such products or solutions or any related software, and (ii) includes the design, manufacture, development and distribution of the products, platforms, software and services sold under the exclusive brands set forth on Schedule 1.1(5), except to the extent any such product contains Resideo Retained IP. For the avoidance of doubt, (x) subsection (i) above shall not be interpreted as a continued right to distribute any such products or services and (y) the sale of any of Resideo's Products and Solutions products through or under any brand set forth on Schedule 1.1(5) shall not result in a transfer or grant of any rights, title or interest in or to any such Resideo Products and Solutions products.

&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;(6) "<u>ADI Disclosure</u>" shall mean (i) any form, statement, schedule or other material (other than the Distribution Disclosure Documents) filed with or furnished to the Commission, including in connection with ADI SpinCo's obligations under the Securities Act and the Exchange Act, any other Governmental Entity, or holders of any securities of any member of the ADI Group, in each case, on or after the Distribution Date by or on behalf of any member of the ADI Group whether in connection with the registration, sale, or distribution of securities or disclosure related thereto or otherwise (including periodic disclosure obligations), and (ii) any ADI Financing Documents.

&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;(7) "<u>ADI Environmental Liabilities</u>" shall mean any and all Environmental Liabilities, whether arising before, at or after the Effective Time, to the extent relating to or resulting from or arising out of the past, present or future operation, conduct or actions of the ADI Business or the past, present or future use of the ADI Assets, it being understood that the Liabilities set forth on <u>Schedule 1.1(7)</u> shall not constitute "ADI Environmental Liabilities".

&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;(8) "<u>ADI Financing Arrangements</u>" shall mean the financing arrangements described on <u>Schedule 1.1(8)</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) "<u>ADI Financing Documents</u>" shall mean any documents relating to any debt issuance of ADI SpinCo or any other member of the ADI Group whether prior to, on, or after the Distribution Date or otherwise relating to the ADI Financing Arrangements, including any offering memorandum, confidential information memorandum, lender presentation, credit agreement or other bank financing arrangement, exchange agreement, purchase agreement, indenture or notes (including, in each case, the representations, warranties and covenants contained therein), and any other agreements or arrangements entered into in connection with 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) "<u>ADI Group</u>" shall mean (i) ADI SpinCo, (ii) each Person that is set forth on <u>Schedule 1.1(3)(i)</u>, and (iii) each Person that becomes a Subsidiary of ADI SpinCo after the Effective Time.

&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;(11) "<u>ADI Indemnitees</u>" shall mean each member of the ADI Group and each of their respective Affiliates from and after the Effective Time and each member of the ADI Group's and such respective Affiliates' respective current, former and future directors, officers, employees and agents (solely in their respective capacities as current, former and future directors, officers, employees or agents of any member of the ADI Group or their respective Affiliates) and each of the heirs, administrators, executors, successors and assigns of any of the foregoing, except, for the avoidance of doubt, the Resideo Indemnitees.

&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;(12) "<u>ADI Liabilities</u>" shall mean:

&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;(i) any and all Liabilities to the extent relating to, arising out of or resulting from (a) the operation or conduct of the ADI Business, as conducted at any time prior to, at or after the Effective Time (including any Liabilities relating to, arising out of or resulting from any act or failure to act (x) that creates Liability under the Honeywell Separation Agreements to the extent relating to, arising out of or resulting from the operation or conduct of the ADI Business, or (y) by any director, officer, employee, agent or representative (whether or not such act or failure to act is or was within such Person's authority) of the ADI Group); (b) the operation or conduct of any business conducted by any member of the ADI Group at any time after the Effective Time (including any Liabilities relating to, arising out of or resulting from any act or failure to act (x) that creates Liability under the Honeywell Separation Agreements to the extent relating to, arising out of or resulting from the operation or conduct of any member of the ADI Group), or (y) by any director, officer, employee, agent or representative (whether or not such act or failure to act is or was within such Person's authority) of the ADI Group); or (c) any ADI Asset, whether arising before, at or after the Effective Time (including any Liabilities relating to, arising out of or resulting from ADI Contracts or Shared Contracts (to the extent, in the case of Shared Contracts, such Liabilities relate to the ADI Business));

&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;(ii) the Liabilities set forth on <u>Schedule 1.1(12)(ii)</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any and all Liabilities that are expressly provided by this Agreement or any of the Ancillary Agreements as Liabilities to be Assumed by ADI SpinCo or any other member of the ADI Group, and all agreements, obligations and Liabilities of ADI SpinCo or any other member of the ADI Group under this Agreement or any of the Ancillary Agreements;

&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;(iv) without limitation of clause (i) immediately above, any and all Liabilities reflected on the ADI Balance Sheet or the accounting records supporting such balance sheet and any Liabilities incurred by or for ADI SpinCo or any member of the ADI Group subsequent to the date of the ADI Balance Sheet which, had they been so incurred on or before such date, would have been reflected on the ADI Balance Sheet if prepared on a consistent basis, subject to any discharge of any of such Liabilities subsequent to the date of the ADI Balance Sheet;

&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;(v) without limitation of clause (i) immediately above, any and all Liabilities to the extent relating to, arising out of, or resulting from, whether prior to, at or after the Effective Time, any infringement, misappropriation or other violation of any Intellectual Property of any other Person related to the conduct of the ADI Business;

&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;(vi) without limitation of clause (i) immediately above, any and all ADI Environmental Liabilities;

&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;(vii) any and all Liabilities (including under applicable federal and state securities Laws) relating to, arising out of or resulting from (A) the Distribution Disclosure Documents, (B) any ADI Disclosure, or (C) any statements (whether oral or written), press releases or other public disclosures made on or prior to the Distribution Date by or on behalf any member of the Resideo Group or the ADI Group, including by any officer thereof, in respect of the transactions contemplated by this Agreement and the Ancillary Agreements;

&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;(viii) without limitation of clause (i) immediately above, any Liabilities relating to, arising out of or resulting from (A) any Action exclusively related to the ADI Business, including all Actions listed on <u>Schedule 1.1(12)(viii)(A)</u>, or (B) any Action that is not exclusively related to the ADI Business to the extent (but solely to the extent) such Liabilities relate to the ADI Business, including all Actions listed on <u>Schedule 1.1(12)(viii)(B)</u>; and

&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;(ix) without limitation of clause (i) immediately above, any product liability claims or other claims of third parties, including any and all product liabilities, whether such product liabilities are known or unknown, contingent or accrued, or relating to loss of life or injury to persons, in each case, to the extent relating to, arising out of or resulting from any product developed, designed, manufactured, marketed, distributed, leased or sold by the ADI Business.

Notwithstanding the foregoing, the ADI Liabilities shall not include any Liabilities that are (A) expressly contemplated by this Agreement or by any Ancillary Agreement (or the Schedules hereto or thereto) as Liabilities to be Assumed by any member of the Resideo Group, (B) expressly discharged pursuant to <u>Section 2.4</u> of this Agreement or (C) Resideo Retained Liabilities. Without limiting the foregoing, the fact that a Liability shall constitute an ADI Liability hereunder shall not affect the rights and Liabilities of the ADI Group or the Resideo Group, as applicable, in respect of products of the Resideo Group distributed by the ADI Group pursuant to any Ancillary Agreement or Contract, whether prior to, at or after the Effective Time.

&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;(13) "<u>ADI Retained Names</u>" shall mean the names and marks set forth in <u>Schedule 1.1(13)</u> and any other names or marks that are included within the ADI Intellectual Property, together with any Trademarks containing or comprising any of such names or marks, and any Trademarks derivative thereof or confusingly similar thereto, or any telephone numbers or other alphanumeric addresses or mnemonics containing any of the foregoing names or marks.

&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;(14) "<u>ADI SpinCo Common Stock</u>" shall mean shares of common stock, par value $0.001 per share, of ADI SpinCo.

&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;(15) "<u>ADI SpinCo Preferred Stock</u>" shall mean shares of Series A Cumulative Convertible Participating Preferred Stock, par value $0.001 per share, of ADI SpinCo.

&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;(16) "<u>Affiliate</u>" shall mean, when used with respect to a specified Person and at a point in, or with respect to a period of, time, a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person at such point in or during such period of time. For the purposes of this definition, "control", 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, (a) from and after the Effective Time, solely for purposes of this Agreement or any Ancillary Agreement, (i) no member of the ADI Group shall be deemed an Affiliate of any member of the Resideo Group and (ii) no member of the Resideo Group shall be deemed an Affiliate of any member of the ADI Group, and (b) whether before or after the Effective Time, solely for purposes of this Agreement or any Ancillary Agreement, neither CD&R nor any of its Affiliates (other than Resideo, ADI SpinCo and their respective Subsidiaries, as applicable) will be deemed an Affiliate of any member of the Resideo Group or the ADI Group, and *vice versa*.

&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;(17) "<u>Ancillary Agreements</u>" shall mean the Transition Services Agreement, the Employee Matters Agreement, the Tax Matters Agreement, the Intellectual Property Matters Agreement, the Data Privacy Agreement, the Exchange Agreement, any Continuing Arrangements, any and all Conveyancing and Assumption Instruments, and any other agreements to be entered into by and between any member of the Resideo Group, on one hand, and any member of the ADI Group, on the other hand, at, prior to or after the Effective Time in connection with the Distribution, Internal Reorganization, Contribution or the other transactions contemplated by this Agreement or the other Ancillary Agreements referred to herein.

&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;(18) "<u>Asset Transferors</u>" shall mean the Persons (including Resideo and ADI SpinCo, as applicable) Transferring Assets to ADI SpinCo or Resideo, as the case may be, or one of their respective Subsidiaries in order to consummate the transactions contemplated hereby.

&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;(19) "<u>Assets</u>" shall mean all rights, title and ownership interests in and to all properties, claims, Contracts, businesses, entities or assets (including Intellectual Property, goodwill and all direct or indirect interests in the capital stock of, or any other equity interests in, any Person), wherever located (including in the possession of vendors or other third parties or elsewhere), of every kind, character and description, whether real, personal or mixed, tangible or intangible, whether accrued, contingent or otherwise, in each case, whether or not recorded or reflected on the books and records or financial statements of any Person.

&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;(20) "<u>Assume</u>" shall have the meaning set forth in <u>Section 2.2(c)</u>, and the terms "<u>Assumed</u>" and "<u>Assumption</u>" shall have their correlative meanings.

&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;(21) "<u>Business</u>" shall mean the Resideo Retained Business or the ADI Business, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22) "<u>Business Day</u>" shall mean any day other than Saturday or Sunday and any other day on which commercial banking institutions located in New York, New York are required, or authorized by Law, to remain closed.

&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;(23) "<u>Cash Equivalents</u>" shall mean, as of any date of determination, cash and cash equivalents as determined in accordance with GAAP, and to the extent consistent with GAAP, utilizing the accounting principles, methods, policies, practices, procedures, classifications and methodologies used in the preparation of the consolidated balance sheet of Resideo as of fiscal year ended December 31, 2025 included in the Form 10-K of Resideo for fiscal year ended December 31, 2025.

&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;(24) "<u>Commission</u>" shall mean the United States Securities and Exchange Commission.

&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;(25) "<u>Company Policies</u>" shall mean all Policies of Resideo or any of its Subsidiaries, which are in effect at the Effective Time, except all Policies acquired prior to the Effective Time directly by and in the name of ADI SpinCo or a member of the ADI Group and that provide coverage solely for one or more members of the ADI Group or the ADI Business.

&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;(26) "<u>Confidential Information</u>" shall mean all non-public, confidential or proprietary Information to the extent concerning a Party, its Group or its Subsidiaries or with respect to ADI SpinCo, the ADI Business, any ADI Assets or any ADI Liabilities or with respect to Resideo, the Resideo Retained Business, any Resideo Retained Assets or any Resideo Retained Liabilities, including any such Information that was acquired by any Party after the Distribution pursuant to <u>Article VI</u> or otherwise in accordance with this Agreement, or that was provided to a Party by a third party in confidence; except for any Information that is (i) in the public domain or generally known to the public through no fault of the receiving Party or its Subsidiaries in violation of this Agreement, (ii) lawfully acquired after the Distribution by such Party or its Subsidiaries from other sources not known to be subject to confidentiality obligations with respect to such Information or (iii) independently developed by the receiving Party after the Distribution without reference to or use of any Confidential Information. As used herein, by example and without limitation, Confidential Information shall mean any Information of a Party marked as confidential, proprietary or non-public.

&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;(27) "<u>Consents</u>" shall mean any consents, waivers, notices, reports or other filings to be obtained from or made, including with respect to any Contract or any registrations, licenses or permits, any authorizations to be obtained from, or approvals from, or notification requirements to, any third parties 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28) "<u>Continuing Arrangements</u>" shall mean those arrangements set forth on <u>Schedule 1.1(28)(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29) "<u>Contract</u>" shall mean any agreement, contract, subcontract, note, indenture, instrument, lease, license, sublicense, benefit plan, purchase order or other 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30) "<u>Conveyancing and Assumption Instruments</u>" shall mean, collectively, the various Contracts, including the related local asset transfer agreements and local stock transfer agreements, and other documents entered into prior to the Effective Time or to be entered into prior to or after the Effective Time to effect the Transfer of Assets and the Assumption of Liabilities in the manner contemplated by this Agreement, the Internal Reorganization and the Separation Plan, or otherwise relating to, arising out of or resulting from the transactions contemplated by this Agreement, in such form or forms as the applicable Parties thereto agree.

&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;(31) "<u>Credit Support Instruments</u>" shall mean any letters of credit, performance bonds, surety bonds, bankers acceptances, or other similar arrangements.

&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;(32) "<u>Data Privacy Agreement</u>" shall mean the Data Privacy Agreement by and between Resideo and ADI SpinCo, in the form attached hereto as <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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(33) "<u>Data Protection Requirements</u>" shall mean (i) all applicable Laws governing privacy, data protection, cybersecurity, or data security in all relevant jurisdictions, including, without limitation, those Laws relating to the collection, processing, use, disclosure, transfer, security, deletion and retention of Personal Information; (ii) Resideo policies and procedures, published prior to the Distribution Date, regarding collection, processing, use, disclosure, transfer, security, deletion and retention of Personal Information; and (iii) the privacy, data protection, cybersecurity, or data security requirements of any Contracts, codes of conduct, or industry standards by which Resideo or its Subsidiaries has been legally bound prior to the Distribution 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34) "<u>Distribution Agent</u>" shall mean Broadridge Corporate Issuer Solutions, LLC.

&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;(35) "<u>Distribution Date</u>" shall mean the date, as shall be determined by the Resideo Board, on which the Distribution occurs.

&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;(36) "<u>Distribution Date Cash Amount</u>" shall mean Resideo's calculation of the amount of Cash Equivalents of the ADI Group as of the Effective Time (after giving effect to the payment by ADI SpinCo of the Consideration to Resideo pursuant to <u>Section 2.12(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(37) "<u>Distribution Disclosure Documents</u>" shall mean the Form 10 and all exhibits thereto (including the Information Statement), any current reports on Form 8-K and other registration statements (including the registration statement on Form S-8 related to securities to be offered under ADI SpinCo's employee benefit plans), in each case as filed or furnished by ADI SpinCo with or to the Commission in connection with the Distribution or filed or furnished by Resideo with or to the Commission, solely (in the case of such documents filed or furnished by Resideo with or to the Commission) to the extent such documents relate to ADI SpinCo or the Distribution.

&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;(38) "<u>Distribution Ratio</u>" shall mean [●] share of ADI SpinCo Common Stock for every [●] share[s] of Resideo Common Stock.

&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;(39) "<u>Effective Time</u>" shall mean 12:01 a.m., New York time, on the Distribution 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(40) "<u>Employee Matters Agreement</u>" shall mean the Employee Matters Agreement by and between Resideo and ADI SpinCo, in the form attached hereto as <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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(41) "<u>Environmental Laws</u>" shall mean all Laws relating to (i) pollution or protection of human health or safety or the environment, including Laws relating to the exposure to, or Release, threatened Release or the presence of, Hazardous Substances, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, transport or handling of Hazardous Substances, (ii) recordkeeping, notification, disclosure and reporting requirements respecting Hazardous Substances, and (iii) endangered or threatened species of fish, wildlife and plants and the management or use of natural resources.

&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;(42) "<u>Environmental Liabilities</u>" shall mean Liabilities relating to Environmental Law or the Release or threatened Release of or exposure to Hazardous Substances, including the following: (i) actual or alleged violations of or non-compliance with any Environmental Law, including a failure to obtain, maintain or comply with any Environmental Permits; (ii) obligations arising under or pursuant to any applicable Environmental Law or Environmental Permit; (iii) the presence of Hazardous Substances or the introduction of Hazardous Substances to the environment at, in, on, under or migrating from any of the building, facility, structure or real property, including Liabilities relating to, resulting from or arising out of the investigation, remediation, or monitoring of such Hazardous Substances; (iv) natural resource damages, property damages, personal or bodily injury or wrongful death relating to the presence of or exposure to Hazardous Substances (including asbestos-containing materials), at, in, on, under or migrating to or from any building, facility, structure or real property; (v) the transport, disposal, recycling, reclamation, treatment or storage, Release or threatened Release of Hazardous Substances at Off-Site Locations; and (vi) any agreement, decree, judgment, or order relating to the foregoing. The term "Environmental Liabilities" does not include Liabilities arising in connection with claims for injuries to persons or property from products sold by or services provided by the ADI Group, the Resideo Group or their predecessors, including claims related to exposure to asbestos with respect to such products or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(43) "<u>Environmental Permit</u>" shall mean any permit, license, approval or other authorization under any applicable Environmental Law or of any Governmental Entity relating to Environmental Laws or Hazardous Substances.

&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;(44) "<u>Exchange Act</u>" shall mean the United States Securities Exchange Act of 1934, as amended, together with the rules and regulations promulgated thereunder.

&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;(45) "<u>Final Determination</u>" shall have 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(46) "<u>GAAP</u>" shall mean generally accepted accounting principles in the United States in effect from time to time.

&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;(47) "<u>Governmental Approvals</u>" shall mean any notices or reports to be submitted to, or other registrations or filings to be made with, or any consents, approvals, licenses, permits or authorizations to be obtained from, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(48) "<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 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.

&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;(49)<u>"Government Import/Export Accounts</u>" means certain accounts established with the United Stated Customs and Border Patrol agency as set forth on <u>Schedule 1.1(49)</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(50) "<u>Group</u>" shall mean (i) with respect to Resideo, the Resideo Group and (ii) with respect to ADI SpinCo, the ADI 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(51) "<u>Hazardous Substances</u>" shall mean (i) any substances defined, listed, classified or regulated as "hazardous substances," "hazardous wastes," "hazardous materials," "extremely hazardous wastes," "restricted hazardous wastes," "toxic substances," "toxic pollutants," "contaminants," "pollutants," "wastes," "radioactive materials," "petroleum," "oils" or designations of similar import under any Environmental Law, or (ii) any other chemical, material or substance that is regulated or for which liability can be imposed under any Environmental Law.

&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;(52) "<u>Honeywell Separation Agreements</u>" shall mean each of the agreements listed on <u>Schedule 1.1(52)</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(53) "<u>Indebtedness</u>" shall mean, with respect to any Person, (i) the principal amount, prepayment and redemption premiums and penalties (if any), unpaid fees and other monetary obligations in respect of any indebtedness for borrowed money, whether short term or long term, and all obligations evidenced by bonds, debentures, notes, other debt securities or similar instruments, (ii) any indebtedness arising under any capital leases (excluding, for the avoidance of doubt, any real estate leases), whether short term or long term, (iii) all liabilities secured by any Security Interest on any assets of such Person, (iv) all liabilities under any interest rate, currency, commodity or other swap, collar, cap or other hedging or similar agreements or arrangements, (v) all liabilities under any interest rate protection agreement, interest rate future agreement, interest rate option agreement, interest rate swap agreement or other similar agreement designed to protect such Person against fluctuations in interest rates, (vi) all interest bearing indebtedness for the deferred purchase price of property or services, (vii) all liabilities under any Credit Support Instruments, (viii) all interest, fees and other expenses owed with respect to indebtedness described in the foregoing clauses (i) through (vii), and (ix) without duplication, all guarantees of indebtedness referred to in the foregoing clauses (i) through (viii).

&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;(54) "<u>Indemnifiable Loss</u>" and "<u>Indemnifiable Losses</u>" shall mean any and all damages, losses, deficiencies, Liabilities, obligations, penalties, judgments, settlements, claims, payments and fines.

&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;(55) "<u>Information</u>" shall mean information (including Personal Information), content and data in written, oral, electronic, computerized, digital or other tangible or intangible media, including books and records, whether accounting, legal or otherwise, ledgers, studies, reports, surveys, designs, specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow charts, marketing plans, customer names and information (including prospects), product costs, margins and pricing, product marketing studies and strategies, all other methodologies, procedures, techniques and Know-How related to research, engineering, development and manufacturing, communications, correspondence, materials, product literature, artwork, files, documents, and all other technical, financial, employee or business information, content or data, in each case excluding any Intellectual Property therein.

&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;(56) "<u>Information Statement</u>" shall mean the Information Statement attached as Exhibit 99.1 to the Form 10, to be distributed to the holders of shares of Resideo Common Stock in connection with the Distribution, including any amendment or supplement thereto.

&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;(57) "<u>Insurance Proceeds</u>" shall mean those monies (i) received by an insured from an insurance carrier or (ii) paid by an insurance carrier on behalf of an insured, in either case net of any applicable deductible or retention.

&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;(58) "<u>Insured Claims</u>" shall mean those Liabilities that, individually or in the aggregate, are covered within the terms and conditions of any of the Company Policies, whether or not subject to deductibles, co-insurance, uncollectability or retrospectively-rated premium adjustments, but only to the extent that such Liabilities are within applicable Company Policy limits, including aggregates.

&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;(59) "<u>Intellectual Property</u>" shall mean all intellectual property rights arising in any jurisdiction of the world, including in or with respect to, or arising from, any of the following: (i) trademarks, trade dress, service marks, certification marks, logos, slogans, design rights, names, corporate names, trade names, Internet domain names, social media accounts and addresses and other similar designations of source or origin, together with the goodwill symbolized by any of the foregoing (collectively, "<u>Trademarks</u>"); (ii) patents and patent applications, and any and all related national or international counterparts thereto, including any divisionals, continuations, continuations-in-part, reissues, reexaminations, substitutions and extensions thereof (collectively, "<u>Patents</u>"); (iii) copyrights and copyrightable subject matter, excluding Know-How; (iv) trade secrets, and all other confidential or proprietary information, know-how, inventions, processes, formulae, models, and methodologies, excluding Patents (collectively, "<u>Know-How</u>"); and (v) all applications and registrations for 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(60) "<u>Intellectual Property Matters Agreement</u>" shall mean the Intellectual Property Matters Agreement by and between Resideo and ADI SpinCo, in the form attached hereto as <u>Exhibit 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(61) "<u>Internal Reorganization</u>" shall mean the allocation and transfer or assignment of Assets and Liabilities (including entities holding Assets or Liabilities), including by means of the Conveyancing and Assumption Instruments, resulting in (i) the ADI Group owning and operating the ADI Business, and (ii) the Resideo Group continuing to own and operate the Resideo Retained Business, as described in the global plan of internal reorganization provided to ADI SpinCo by Resideo prior to the date hereof, as updated from time to time by Resideo in its sole discretion (the "<u>Separation Plan</u>"), including, for the avoidance of doubt, subject to <u>Section 2.5</u>, the Transfer, directly or indirectly, of all of Resideo's or its Subsidiaries' right, title and interest in and to the ADI Assets, from Resideo or its Subsidiaries to the ADI Group and the Assumption of all of the ADI Liabilities, directly or indirectly, by the ADI Group in connection with or as a result of the transactions contemplated by 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(62) "<u>IT Assets</u>" shall mean all software, computer systems, telecommunications equipment, databases, Internet Protocol addresses, data rights and documentation, reference, resource and training materials relating thereto, and all Contracts (including Contract rights) relating to any of the foregoing (including software license agreements, source code escrow agreements, support and maintenance agreements, electronic database access contracts, domain name registration agreements, website hosting agreements, software or website development agreements, outsourcing agreements, service provider agreements, interconnection agreements, governmental permits, radio licenses and telecommunications agreements).

&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;(63) "<u>Law</u>" shall mean any applicable U.S. or non-U.S. federal, national, supranational, state, provincial, local or similar statute, law, ordinance, regulation, rule, code, treaty (including any income tax treaty), order, approval, consent, decree, injunction, license, permit, administrative interpretation, requirement or rule of law (including common law) or other binding directives promulgated, issued, entered into or taken by 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(64) "<u>Liabilities</u>" shall mean any and all Indebtedness, liabilities, costs, expenses, interest and obligations, whether accrued or fixed, absolute or contingent, matured or unmatured, known or unknown, reserved or unreserved, or determined or determinable, including those arising under any Law (including Environmental Law), Action, whether asserted or unasserted, or order, writ, judgment, injunction, decree, settlement, compromise, stipulation, determination or award entered by or with any Governmental Entity and those arising under any Contract or any fines, damages or equitable relief which may be imposed and including all costs and expenses related thereto (including the costs and expenses of attorneys', accountants', consultants' and other professionals' fees and expenses incurred in the investigation or defense of any of the foregoing or the enforcement of rights hereunder or under any Ancillary 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(65) "<u>NYSE</u>" shall mean the New York Stock Exchange.

&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;(66) "<u>Off-Site Location</u>" shall mean any third party location that is not now nor has ever been owned, leased or operated by the Resideo Group or the ADI Group or any of their respective predecessors. "Off-Site Location" does not include any property that is adjacent to or neighboring any property formerly, currently or in the future owned, leased or operated by the Resideo Group, the ADI Group, or their respective predecessors that has been impacted by Hazardous Substances released from such properties.

&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;(67) "<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(68) "<u>Personal Information</u>" shall mean the same as "personal information," "personally identifiable information," "personal data" or any term of similar intent, in each case, as defined under Data Protection Requirements.

&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;(69) "<u>Policies</u>" shall mean insurance policies and insurance contracts of any kind (other than life and benefits policies or contracts), including primary, excess and umbrella policies, commercial general liability policies, fiduciary liability, directors and officers liability, automobile, property and casualty, workers' compensation, crime, cargo, business travel accident and employee dishonesty insurance policies and bonds, together with the rights, benefits and privileges thereunder.

&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;(70) "<u>Prime Rate</u>" shall mean the rate last quoted as of the time of determination by *The Wall Street Journal* as the "Prime Rate" in the United States or, if *The Wall Street Journal* ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the "bank prime loan" rate as of such time, or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by Resideo) or any similar release by the Federal Reserve Board (as determined by Resideo).

&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;(71) "<u>Record Date</u>" shall mean the date determined by the Resideo Board as the record date for determining the holders of Resideo Common Stock entitled to receive ADI SpinCo Common Stock in the Distribution.

&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;(72) "<u>Record Date Holders</u>" shall mean holders of Resideo Common Stock on the Record 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(73) "<u>Release</u>" shall mean any release, spill, emission, discharge, leaking, pumping, injection, deposit, disposal, dispersal, leaching or migration into the indoor or outdoor environment (including ambient air, surface water, groundwater and surface or subsurface strata) or into or out of any property, including the movement of Hazardous Substances through or in the air, soil, surface water, groundwater or property.

&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;(74) "<u>Resideo Asset Transferee</u>" shall mean any Person that is or, following the Effective Time, will be a member of the Resideo Group to which Resideo Retained Assets shall be or have been Transferred, directly or indirectly, at or prior to the Effective Time, or to which a Transfer is contemplated by the Internal Reorganization, the Separation Plan, this Agreement or the Ancillary Agreements to occur after the Effective Time, by an Asset Transferor in order to consummate the transactions contemplated hereby.

&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;(75) "<u>Resideo Common Stock</u>" shall mean the common stock of Resideo, par value $0.001 per share.

&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;(76) "<u>Resideo Group</u>" shall mean (i) Resideo and each Person that is a direct or indirect Subsidiary of Resideo other than any Subsidiary that is a member of the ADI Group and (ii) each Person that becomes a Subsidiary of Resideo after the Effective Time.

&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;(77) "<u>Resideo Indemnitees</u>" shall mean each member of the Resideo Group and each of their respective Affiliates from and after the Effective Time and each member of the Resideo Group's and such respective Affiliates' respective current, former and future directors, officers, employees and agents (solely in their respective capacities as current, former and future directors, officers, employees or agents of any member of the Resideo Group or their respective Affiliates) and each of the heirs, executors, successors and assigns of any of the foregoing, except, for the avoidance of doubt, the ADI Indemnitees.

&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;(78) "<u>Resideo Preferred Stock</u>" shall mean the Series A Cumulative Convertible Participating Preferred Stock of Resideo, par value $0.001 per share.

&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;(79) "<u>Resideo Retained Assets</u>" shall mean:

&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;(i) any and all Assets that are owned, leased or licensed, at or prior to the Effective Time, by Resideo or any of its Subsidiaries, that are not ADI Assets, including (for the avoidance of doubt) any and all Assets that are expressly contemplated by this Agreement or any Ancillary Agreement as Assets which have been or are to be Transferred to or retained by Resideo or any other member of the Resideo Group, including all Resideo Retained IP (including all rights of priority arising from any Resideo Retained IP, all goodwill associated with any Resideo Retained IP, and all rights to sue, and to seek and retain damages, for any past, present or future infringement, misappropriation or other violation of any Resideo Retained IP) and Resideo Retained Information;

&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;(ii) without limitation of clause (i) immediately above, each Honeywell 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Assets listed or described on <u>Schedule 1.1(79)(iii)</u>; and

&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;(iv) any and all Assets that are acquired or otherwise become Assets of the Resideo Group after the Effective Time.

&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;(80) "<u>Resideo Retained Business</u>" shall mean (i) those businesses operated by Resideo or any of its Subsidiaries prior to the Effective Time other than the ADI Business, and (ii) those businesses acquired or established by or for any member of the Resideo Group after the Effective Time.

&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;(81) "<u>Resideo Retained Information</u>" shall mean any and all Information (including Personal Information) owned, used or held for use by Resideo or any of its Subsidiaries that does not comprise ADI Information.

&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;(82) "<u>Resideo Retained IP</u>" shall mean all Intellectual Property of Resideo or any of its Subsidiaries other than ADI Intellectual Property, including the Resideo Retained Names.

&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;(83) "<u>Resideo Retained Liabilities</u>" shall mean:

&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;(i) any and all Liabilities to the extent relating to, arising out of or resulting from (a) the operation or conduct of the Resideo Retained Business, as conducted at any time prior to, at or after the Effective Time (including any Liabilities relating to, arising out of or resulting from any act or failure to act by any director, officer, employee, agent or representative (whether or not such act or failure to act is or was within such Person's authority) of the Resideo Group); (b) the operation or conduct of any business conducted by any member of the Resideo Group at any time after the Effective Time (including any Liabilities relating to, arising out of or resulting from any act or failure to act by any director, officer, employee, agent or representative (whether or not such act or failure to act is or was within such Person's authority) of the Resideo Group); or (c) any Resideo Retained Asset, whether arising before, at or after the Effective Time (including any Liabilities relating to, arising out of or resulting from Shared Contracts (to the extent such Liabilities relate to the Resideo Retained Business));

&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;(ii) any and all Liabilities that are expressly contemplated by this Agreement or any Ancillary Agreement as Liabilities to be Assumed by Resideo or any other member of the Resideo Group, and all agreements, obligations and other Liabilities of Resideo or any member of the Resideo Group under this Agreement or any of the Ancillary Agreements; and

&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;(iii) the Liabilities listed on <u>Schedule 1.1(83)(iii)</u>.

Notwithstanding the foregoing and for the avoidance of doubt, the Resideo Retained Liabilities shall not include any Liabilities (including for Taxes) for which ADI SpinCo or a member of the ADI Group is responsible pursuant to this Agreement or the Ancillary Agreements (including 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(84) "<u>Resideo Retained Names</u>" shall mean the names and marks set forth in <u>Schedule 1.1(84)</u> and any other names or marks that are included within the Resideo Retained IP, together with any Trademarks containing or comprising any of such names or marks, and any Trademarks derivative thereof or confusingly similar thereto, or any telephone numbers or other alphanumeric addresses or mnemonics containing any of the foregoing names or marks.

&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;(85) "<u>Securities Act</u>" shall mean the Securities Act of 1933, as amended, together with the rules and regulations promulgated thereunder.

&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;(86) "<u>Security Interest</u>" shall mean any mortgage, security interest, pledge, lien, charge, claim, option, right to acquire, voting or other restriction or similar encumbrance, excluding restrictions on transfer under securities Laws. For the avoidance of doubt, licenses, covenants not to sue and similar rights granted with respect to Intellectual Property (other than as a security interest or lien) are not "Security Interests" as defined 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(87) "<u>Shared Contract</u>" shall mean any Contract (other than leases and Company Policies) of any member of Resideo Group or ADI Group, as applicable, that relates in any material respect to both the ADI Business and the Resideo Retained Business, including those set forth on <u>Schedule 1.1(87)</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(88) "<u>Subsidiary</u>" shall mean with respect to any Person (i) a corporation, fifty percent (50%) or more of the voting or capital stock of which is, as of the time in question, directly or indirectly owned by such Person and (ii) any other Person in which such Person, directly or indirectly, owns fifty percent (50%) or more of the equity or economic interest thereof or has the power to elect or direct the election of fifty percent (50%) or more of the members of the governing body of such entity. It is expressly agreed that, from and after the Effective Time, solely for purposes of this Agreement, neither ADI SpinCo nor any other member of the ADI Group shall be deemed a Subsidiary of Resideo or any other member of the Resideo Group, *or vice versa*.

&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;(89) "<u>Target Cash Amount</u>" shall mean $[●].

&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;(90) "<u>Tax</u>" or "<u>Taxes</u>" shall have 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(91) "<u>Tax Contest</u>" shall have the meaning as 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(92) "<u>Tax Matters Agreement</u>" shall mean the Tax Matters Agreement by and between Resideo and ADI SpinCo, in the form attached hereto as <u>Exhibit 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(93) "<u>Tax Records</u>" shall have 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(94) "<u>Tax Returns</u>" shall have 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(95) "<u>Transfer</u>" shall have the meaning set forth in <u>Section 2.2(b)</u>; and the term "<u>Transferred</u>" shall have its correlative meaning.

&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;(96) "<u>Transition Services Agreement</u>" shall mean the Transition Services Agreements by and between Resideo and ADI SpinCo, in the form attached hereto as <u>Exhibit E</u>.

Section 1.2 <u>Other Defined Terms</u>. In addition, the following terms shall have the meanings ascribed to them in the corresponding section of this Agreement:

---

| | |
|:---|:---|
| AAA | 7.1 |
| ADI SpinCo | Preamble |
| ADI SpinCo Board | Recitals |
| ADI Cash Payment | 2.12(b) |
| ADI Intellectual Property | *see* Definition of ADI Assets, 1.1 |
| ADI Owned Real Property | *see* Definition of ADI Assets, 1.1 |
| ADI Released Liabilities | 5.1(a)(ii) |
| Agreement | Preamble |
| Appeal Tribunal | 7.1(h) |
| Appellate Rules | 7.1(h) |
| Arbitral Tribunal | 7.1(a) |
| Assume | 2.2(c) |
| Assumed | 1.1 |
| Assumption | 1.1 |
| Bylaws | 3.6 |
| Cash Adjustment | 2.12(c)(i)(2) |
| Charter | 3.6 |
| Code | Recitals |
| Consideration | 2.12(b) |
| Contribution | Recitals |
| Decision on Interim Relief | 7.1(d) |
| Deferred Assets | 2.5(a) |
| Deferred Liabilities | 2.5(a) |
| Disputes | 7.1(a) |
| Distribution | Recitals |
| Emergency Arbitrator | 7.1(d) |
| First Post-Distribution Report | 9.25 |
| Indemnifying Party | 5.4(a) |
| Indemnitee | 5.4(a) |
| Indemnity Payment | 5.8(a) |
| Interim Relief | 7.1(d) |
| Know-How | *see* Definition of Intellectual Property, 1.1 |
| Liable Party | 2.8(b) |
| Other Party | 2.8(a) |
| Parties | Preamble |
| Party | Preamble |
| Patents | *see* Definition of Intellectual Property, 1.1 |
| Privilege | 6.6(a) |
| Privileged Information | 6.6(a) |
| Released Insurance Matters | 8.1(k) |
| Resideo | Preamble |
| Resideo Board | Recitals |
| Resideo CSIs | 2.9(d) |
| Resideo D&O Indemnitees | 8.3 |
| Resideo Indemnitors | 8.3 |
| Resideo Released Liabilities | 5.1(a)(i) |
| Rules | 7.1 |
| Separation | Recitals |
| Separation Plan | *see* Definition of Internal Reorganization, 1.1 |
| Third Party Claim | 5.4(b) |
| Third Party Proceeds | 5.8(a) |
| Trademarks | *see* Definition of Intellectual Property, 1.1 |
| Transfer | 2.2(b)(i) |
| Transferred | *see* Definition of Transfer, 1.1 |

---

Section 1.3 <u>References; Interpretation</u>. References in this Agreement to any gender include references to all genders, and references to the singular include references to the plural and vice versa. Unless the context otherwise requires, the words "include", "includes" and "including" when used in this Agreement shall be deemed to be followed by the phrase "without limitation". Unless the context otherwise requires, references in this Agreement to Articles, Sections, Annexes, Exhibits and Schedules shall be deemed references to Articles and Sections of, and Annexes, Exhibits and Schedules to, this Agreement. Unless the context otherwise requires, the words "hereof", "hereby" and "herein" and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Article, Section or provision of this Agreement. The word "or" shall have the inclusive meaning represented by the phrase "and/or." Any reference to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and by this Agreement. Any reference to any Law (including statutes and ordinances) means such law (including all rules and regulations promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability. The words "written request" or "in writing" when used in this Agreement shall include email. Reference in this Agreement to any time shall be to New York City, New York time unless otherwise expressly provided herein. Unless the context requires otherwise, references in this Agreement to "Resideo" shall also be deemed to refer to the applicable member of the Resideo Group, references to "ADI SpinCo" shall also be deemed to refer to the applicable member of the ADI Group and, in connection therewith, any references to actions or omissions to be taken, or refrained from being taken, as the case may be, by Resideo or ADI SpinCo shall be deemed to require Resideo or ADI SpinCo, as the case may be, to cause the applicable members of the Resideo Group or the ADI Group, respectively, to take, or refrain from taking, any such action. Unless otherwise expressly provided herein, whenever a Party's consent is required under this Agreement, such consent may be withheld, delayed or conditioned by such Party in its sole and absolute discretion, and whenever any action hereunder is at a Party's discretion, such action shall be at such Party's sole and absolute discretion. In the event of any inconsistency or conflict which may arise in the application or interpretation of any of the definitions set forth in <u>Section 1.1</u> and <u>Section 1.2</u>, for the purpose of determining what is and is not included in such definitions, any item explicitly included on a Schedule referred to in any such definition shall take priority over any provision of the text thereof.

**Article II<u><br>THE SEPARATION</u>**

Section 2.1 <u>General</u>. Subject to the terms and conditions of this Agreement, the Parties shall use, and shall cause their respective Affiliates to use, their respective reasonable best efforts to consummate the transactions contemplated hereby.

Section 2.2 <u>Restructuring; Transfer of Assets; Assumption of Liabilities</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) <u>Internal Reorganization</u>. At or prior to the Effective Time, except, if applicable, for Transfers contemplated by the Internal Reorganization, the Separation Plan, this Agreement or the Ancillary Agreements to occur after the Effective Time, the Parties shall complete the Internal Reorganization, including by taking the actions referred to in <u>Sections 2.2(b)</u> and <u>2.2(c)</u> 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;(b) <u>Transfer of Assets</u>. At or prior to the Effective Time (it being understood that some of such Transfers may occur following the Effective Time in accordance with <u>Section 2.2(a)</u> and <u>Section 2.5</u>), subject to <u>Section 2.5</u> and pursuant to the Separation Plan, the Conveyancing and Assumption Instruments and in connection with the Contribution, ADI SpinCo and Resideo shall, and shall cause the applicable other Asset Transferors to, transfer, contribute, distribute, assign or convey or cause to be transferred, contributed, distributed, assigned or conveyed ("<u>Transfer</u>") to (A) Resideo or the respective Resideo Asset Transferees, all of the applicable Asset Transferors' direct or indirect right, title and interest in and to the applicable Resideo Retained Assets, including all of the outstanding shares of capital stock of, or other ownership interests in, any Person that are included in the Resideo Retained Assets, and the applicable Resideo Asset Transferees shall accept from such applicable Asset Transferors such applicable Asset Transferors' respective direct or indirect right, title and interest in and to the applicable Resideo Retained Assets, and (B) ADI SpinCo or the respective ADI Asset Transferees, all of the applicable Asset Transferors' direct or indirect right, title and interest in and to the applicable ADI Assets, including all of the outstanding shares of capital stock of, or other ownership interests in, any Person that are included in the ADI Assets, and the applicable ADI Asset Transferees shall accept from such applicable Asset Transferors such applicable Asset Transferors' respective direct or indirect right, title and interest in and to the applicable ADI 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;(c) <u>Assumption of Liabilities</u>. At or prior to the Effective Time (it being understood that some of such assumptions may occur following the Effective Time in accordance with <u>Section 2.2(a)</u> and <u>Section 2.5</u>), subject to <u>Section 2.5</u> and pursuant to the Separation Plan, the Conveyancing and Assumption Instruments and in connection with the Contribution, (i) Resideo shall, or shall cause a member of the Resideo Group to, accept, assume (or, as applicable, retain) and perform, discharge, fulfill and satisfy, in accordance with their respective terms ("<u>Assume</u>"), all of the Resideo Retained Liabilities and (ii) ADI SpinCo shall, or shall cause a member of the ADI Group to, Assume all of the ADI Liabilities, in each case, regardless of (A) when or where such Liabilities arose or arise, (B) whether the facts upon which they are based occurred prior to, at or subsequent to the Effective Time, (C) whether accruals for such Liabilities have been Transferred to ADI SpinCo or Resideo or their respective Subsidiaries or included on a combined balance sheet of the ADI Business or the Resideo Retained Business or whether any such accruals are sufficient to cover such Liabilities, (D) where or against whom such Liabilities are asserted or determined, (E) whether arising from or alleged to arise from negligence, gross negligence, recklessness, violation of Law, fraud or misrepresentation by any member of the Resideo Group or the ADI Group, as the case may be, or any of their past or present respective directors, officers, employees, agents, Subsidiaries or Affiliates, (F) which Person is named in any Action associated with any Liability, or (G) any benefits, or lack thereof, that have been or may be obtained by the Resideo Group or the ADI Group in respect of such Liabilities. Without prejudice or limitation to any of the indemnification or liability allocation provisions contained in this Agreement, the Parties acknowledge and agree that, on the basis of all facts and circumstances as of the date hereof and through the Effective Time, (i) ADI SpinCo shall, and is expected to, satisfy any Liability or other obligation (or portion thereof) it Assumes pursuant to this Agreement, whether or not Resideo (or another member of the Resideo Group) has been legally relieved of such Liability, and (ii) Resideo shall, and is expected to, satisfy any Liability or other obligation (or portion thereof) it Assumes pursuant to this Agreement, whether or not ADI SpinCo (or another member of the ADI Group) has been legally relieved of such Liability.

&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) The Parties shall use their reasonable best efforts to obtain the Consents required to Transfer any Assets (including any Contracts and all licenses, permits and authorizations issued by any Governmental Entity) or parts thereof as contemplated by this Agreement; provided, that any such efforts to obtain a Consent shall be subject to <u>Section 9.5(c)</u>. Notwithstanding anything herein to the contrary, no Contract or other Asset shall be transferred if it would violate applicable Law or, in the case of any Contract, the rights of any third party to such Contract or otherwise result in a breach of such Contract; <u>provided</u>, that <u>Section 2.5</u>, to the extent provided therein, shall apply thereto.

&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) It is understood and agreed by the Parties that certain of the Transfers referenced in <u>Section 2.2(b)</u> or Assumptions referenced in <u>Section 2.2(c)</u> have occurred prior to the date hereof and, as a result, no additional Transfers or Assumptions of such Assets or Liabilities, as applicable, by any member of the Resideo Group or the ADI Group, as applicable, shall be deemed to occur after the date hereof and prior to the Effective Time with respect thereto. Moreover, to the extent that any member of the Resideo Group or the ADI Group, as applicable, is liable for any Resideo Retained Liability or ADI Liability, respectively, by operation of Law immediately following any Transfer in accordance with this Agreement or any Conveyancing and Assumption Instruments, there shall be no need for any other member of the Resideo Group or the ADI Group, as applicable, to take further action to Assume such Liability in connection with the operation of <u>Section 2.2(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;(f) Except to the extent otherwise required by applicable Tax Law (as determined by Resideo in good faith), each of Resideo and ADI SpinCo shall, and shall cause the members of its respective Group to, treat for all U.S. federal (and applicable state and local) income Tax purposes any Liabilities of Resideo that are Assumed by ADI SpinCo (whether such Liabilities are Assumed by ADI SpinCo directly or treated as Assumed by ADI SpinCo as a result of a transfer by Resideo to ADI SpinCo of equity interests in an entity treated as a "disregarded entity" for U.S. federal income Tax purposes) pursuant to this Agreement in accordance with Section 5.4(a) of the Tax Matters Agreement. For purposes of this <u>Section 2.2(f</u>), all references to Resideo and ADI SpinCo shall include a reference to any member of the Resideo Group and the ADI Group that is, for U.S. federal income Tax purposes, disregarded as separate from Resideo and ADI SpinCo, respectively.

Section 2.3 <u>Treatment of Shared Contracts</u>. Without limiting the generality of the obligations set forth in <u>Sections 2.2(a)</u> and <u>(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;(a) Unless the Parties otherwise agree in writing or the benefits of any Contract described in this <u>Section 2.3</u> are expressly conveyed to the applicable Party pursuant to an Ancillary Agreement, any Shared Contract shall be assigned in part to the applicable member(s) of the applicable Group, if so assignable, or appropriately amended prior to, at or after the Effective Time, so that each Party or the members of their respective Groups as of the Effective Time shall be entitled to the rights and benefits, and shall Assume the related portion of any Liabilities, inuring to their respective Businesses; <u>provided</u>, <u>however</u>, that (x) in no event shall any member of any Group be required to assign (or amend) any Shared Contract in its entirety or to assign (or amend) a portion of any Shared Contract which is not assignable (or cannot be amended) by its terms (including any terms imposing consents or conditions on an assignment where such consents or conditions have not been obtained or fulfilled, subject to <u>Section 2.2(d)</u>), and (y) if any Shared Contract cannot be so partially assigned by its terms or otherwise cannot be amended or has not for any other reason been assigned or amended, or if such assignment or amendment would impair the benefit the parties thereto derive from such Shared Contract, (A) at the reasonable request of the Party (or the member of such Party's Group) to which the benefit of such Shared Contract inures in part, the Party for which such Shared Contract is, as applicable, a Resideo Retained Asset or ADI Asset shall, and shall cause each of its respective Subsidiaries to, for a period ending not later than twelve (12) months after the Distribution Date, take such other reasonable and permissible actions to cause such member of the ADI Group or the Resideo Group, as the case may be, to receive the benefit of that portion of each Shared Contract that relates to the ADI Business or the Resideo Retained Business, as the case may be (in each case, to the extent so related) as if such Shared Contract had been assigned to (or amended to allow) the applicable member of the applicable Group pursuant to this <u>Section 2.3</u> and to bear the burden of the corresponding Liabilities (including any Liabilities that may arise by reason of such arrangement) as if such Liabilities had been Assumed by a member of the applicable Group pursuant to this <u>Section 2.3</u> (such that the Parties are in the same net economic position as they would have been in had such Liabilities been Assumed by the applicable member of the applicable Group pursuant to this <u>Section 2.3)</u>; <u>provided</u>, that the Party for which such Shared Contract is a Resideo Retained Asset or a ADI Asset, as applicable, shall be indemnified for all Indemnifiable Losses or other Liabilities arising out of any actions (or omissions to act) of such retaining Party taken at the direction of the other Party (or relevant member of its Group) or otherwise pursuant to this <u>Section 2.3(a)</u> in connection with and relating to such Shared Contract, as the case may be, and (B) the Party to which the benefit of such Shared Contract inures in part shall use reasonable best efforts to enter into a separate contract pursuant to which it procures such rights and obligations as are necessary such that it no longer needs to avail itself of the arrangements provided pursuant to this <u>Section 2.3(a)</u>; <u>provided</u>, that the Party for which such Shared Contract is, as applicable, a Resideo Retained Asset or ADI Asset, and such Party's applicable Subsidiaries shall not be liable for any actions or omissions taken in accordance with <u>clause (y)</u> of this <u>Section 2.3(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;(b) Unless otherwise determined by Resideo in good faith, each of Resideo and ADI SpinCo shall, and shall cause the members of its Group to, (i) treat for all Tax purposes the portion of each Shared Contract inuring to its respective Businesses as Assets owned by, or Liabilities of, and that had been Assumed by, as applicable, such Party as of the Effective Time and (ii) neither report nor take any Tax position (on a Tax Return or otherwise) inconsistent with such treatment (except to the extent otherwise required by applicable Law or good faith resolution of a Tax Contest).

Section 2.4 <u>Termination of Agreements</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) Except as set forth in <u>Section 2.4(b)</u>, in furtherance of the releases and other provisions of <u>Section 5.1</u>, ADI SpinCo and each member of the ADI Group, on the one hand, and Resideo and each member of the Resideo Group, on the other hand, hereby terminate any and all Contracts between or among ADI SpinCo or any member of the ADI Group, on the one hand, and Resideo or any member of the Resideo Group, on the other hand, effective as of the Effective Time. No such terminated Contract (including any provision thereof which purports to survive termination) shall be of any further force or effect after the Effective Time. Each Party shall, at the reasonable request of the other Party, take, or cause to be taken, such other actions as may be necessary to effect 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;(b) The provisions of <u>Section 2.4(a)</u> shall not apply to any of the following Contracts (or to any of the provisions thereof): (i) this Agreement or any of the Ancillary Agreements; (ii) any Contracts to which any Person other than the Parties or any members of their respective Groups is a party; (iii) any intercompany accounts payable, accounts receivable or other indebtedness accrued or otherwise outstanding as of the Effective Time that are reflected in the books and records of the applicable Party or otherwise documented in writing in accordance with past practices, which shall be settled in the manner contemplated by <u>Section 2.4(c)</u>; and (iv) any Shared Contracts.

&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) Except as set forth on Schedule 2.4(c), all of the intercompany accounts receivable, accounts payable and other indebtedness between any member of the Resideo Group, on the one hand, and any member of the ADI Group, on the other hand, accrued or otherwise outstanding as of the Effective Time shall, as of the Effective Time, be repaid, settled or otherwise eliminated by means of cash payments, a dividend, capital contribution, a combination of the foregoing, or otherwise as determined by Resideo in good faith, but the foregoing shall not effect or impact the rights and obligations of the Parties under this Agreement and the Ancillary Agreements.

Section 2.5 <u>Transfers Not Effected at or Prior to the Effective Time; Transfers Deemed Effective as of the Effective Time</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) To the extent that any Transfers of any Assets (including the capital stock or equity interest of any members of the ADI Group or the Resideo Group) or Assumptions of any Liabilities contemplated by this <u>Article II</u> shall not have been consummated at or prior to the Effective Time (such Assets subject to such delayed Transfer, the "<u>Deferred Assets</u>" and such Liabilities subject to such delayed Assumptions, the "<u>Deferred Liabilities"</u>), the Parties shall, except as contemplated by the Internal Reorganization or the Separation Plan, use reasonable best efforts to effect such Transfers or Assumptions as promptly as practicable following the Effective Time. Nothing herein shall be deemed to require or constitute the Transfer of any Assets or the Assumption of any Liabilities which by their terms or operation of Law cannot be Transferred or Assumed; <u>provided</u>, <u>however</u>, that the Parties and their respective Subsidiaries shall cooperate and use reasonable best efforts to seek to obtain, in accordance with applicable Law, any necessary Consents or Governmental Approvals for the Transfer of all Assets and Assumption of all Liabilities contemplated to be Transferred and Assumed pursuant to this <u>Article II</u> to the fullest extent permitted by applicable Law. In the event that any such Transfer of Assets or Assumption of Liabilities has not been consummated by the Effective Time, from and after the Effective Time, (i) the Party (or relevant member in its Group) retaining such Deferred Assets shall thereafter, insofar as reasonably possible and to the extent permitted by applicable Law, hold (or shall cause such member in its Group to hold) such Deferred Assets in trust for the use and benefit of the Party entitled thereto (at the expense of the Party entitled thereto), and (ii) the Party intended to Assume such Deferred Liabilities shall, or shall cause the applicable member of its Group to, pay or reimburse the Party retaining such Deferred Liabilities for all amounts paid or incurred in connection with the retention of such Deferred Liabilities, as if the Party intended to Assume such Deferred Liabilities had Assumed such Deferred Liabilities at the Effective Time and such that the Parties are in the same net economic position as they would have been in if the Party intended to Assume such Deferred Liabilities had Assumed such Deferred Liabilities. To the extent the foregoing applies to any Contracts (other than Shared Contracts, which shall be governed solely by <u>Section 2.3</u>) to be assigned for which any necessary Consents or Governmental Approvals are not received prior to the Effective Time, the treatment of such Contracts shall, for the avoidance of doubt, be subject to <u>Section 2.7</u> and <u>Section 2.8</u>, to the extent applicable. In addition, the Party retaining such Deferred Assets or Deferred Liabilities (or relevant member of its Group) shall (or shall cause such member in its Group to) treat or operate, insofar as reasonably possible and to the extent permitted by applicable Law, such Deferred Assets or Deferred Liabilities in the ordinary course of business and take such other actions as may be reasonably requested by the Party to which such Deferred Assets are to be Transferred or the Party to be Assuming such Deferred Liabilities, in order to place such Party, insofar as reasonably possible and to the extent permitted by applicable Law, in the same position as if such Deferred Assets or Deferred Liabilities had been Transferred or Assumed as contemplated hereby and so that all the benefits and burdens relating to such Deferred Assets or Deferred Liabilities, including possession, use, risk of loss, potential for income and gain, and dominion, control and command over such Deferred Assets or Deferred Liabilities, are to inure from and after the Effective Time to the relevant member or members of the Resideo Group or the ADI Group, as applicable, entitled to the receipt of such Deferred Assets or required to Assume such Deferred Liabilities. In furtherance of the foregoing, the Parties agree that, as of the Effective Time, subject to <u>Section 2.2(c)</u> and <u>Section 2.8(b)</u>, each Party shall be deemed to have acquired complete and sole beneficial ownership over all of the Deferred Assets, together with all rights, powers and privileges incident thereto, and shall be deemed to have Assumed in accordance with the terms of this Agreement all of the Deferred Liabilities, and all duties, obligations and responsibilities incident thereto, which such Party is entitled to acquire or required to Assume pursuant to 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) If and when the Consents, Governmental Approvals or conditions, the absence or non-satisfaction of which caused the deferral of Transfer of any Asset or deferral of Assumption of any Liability pursuant to <u>Section 2.5(a)</u>, are obtained or satisfied, the Transfer, assignment, Assumption or novation of the applicable Asset or Liability shall be effected without further consideration in accordance with and subject to the terms of this Agreement (including <u>Section 2.2</u>) or the applicable Ancillary Agreement, and shall, to the extent possible without the imposition of any undue cost on any Party, be deemed to have become effective as of the Effective Time.

&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) The Party (or relevant member of its Group) retaining any Deferred Assets or Deferred Liabilities pursuant to <u>Section 2.5(a)</u> or otherwise, shall (i) not be obligated, in connection with the foregoing, to expend any money unless the necessary funds are advanced, assumed, or agreed in advance to be reimbursed by the Party (or relevant member of its Group) entitled to such Deferred Assets or the Party (or relevant member of its Group) intended to Assume such Deferred Liabilities, other than reasonable attorneys' fees and recording or similar or other incidental fees, all of which shall be promptly reimbursed by the Party (or relevant member of its Group) entitled to such Deferred Assets or the Person intended to be subject to such Deferred Liabilities and (ii) be indemnified for all Indemnifiable Losses or other Liabilities arising out of any actions (or omissions to act) of such retaining Party taken at the direction of the other Party (or relevant member of its Group) in connection with and relating to such retained Deferred Assets or Deferred Liabilities, as the case may be.

&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) After the Effective Time, each Party (or any member of its Group) may receive mail, packages, electronic mail and any other written communications properly belonging to another Party (or any member of its Group). Accordingly, at all times after the Effective Time, each Party (or any member of its Group) is hereby authorized to receive and, if reasonably necessary to identify the proper recipient in accordance with this <u>Section 2.5(d)</u>, open all mail, packages, electronic mail and any other written communications received by such Party (or any member of its Group) that belongs to such other Party (or any member of its Group), and to the extent that they do not relate to the business of the receiving Party (or any member of its Group), the receiving Party (or any member of its Group) shall promptly deliver such mail, packages, electronic mail or any other written communications (or, in case the same also relates to the business of the receiving Party or another Party, copies thereof) to such other Party (or any member of its Group) as provided for in <u>Section 9.6</u>; it being understood that if a Party (or any member of its Group) receives a telephone call that relates to the business of the other Party (or any member of its Group), then the receiving Party (or any member of its Group) shall inform the person making such telephone call to contact the other Party (or any member of its Group). The provisions of this <u>Section 2.5(d)</u> are not intended to, and shall not, be deemed to constitute an authorization by any Party (or any member of its Group) to permit the other to accept service of process on its behalf and no Party (or any member of its Group) is or shall be deemed to be the agent of any other Party (or any member of its Group) for service of process purposes.

&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) Unless otherwise determined by Resideo in good faith, with respect to Assets and Liabilities described in <u>Section 2.5(a)</u>, each of Resideo and ADI SpinCo shall, and shall cause the members of its respective Group to, (i) treat for all Tax purposes (A) the Deferred Assets as Assets having been Transferred to and owned by the Party entitled to such Deferred Assets not later than the Effective Time and (B) the Deferred Liabilities as liabilities having been Assumed and owned by the Person intended to be subject to such Liabilities not later than the Effective Time and (ii) neither report nor take any Tax position (on a Tax Return or otherwise) inconsistent with such treatment (except to the extent otherwise required by applicable Law or good faith resolution of a Tax Contest).

Section 2.6 <u>Conveyancing and Assumption Instruments</u>. In connection with, and in furtherance of, the Transfers of Assets and the Assumptions of Liabilities contemplated by this Agreement, the Ancillary Agreements and the Separation Plan, the Parties shall execute or cause to be executed, on or after the date hereof by the appropriate entities to the extent not executed prior to the date hereof, any Conveyancing and Assumption Instruments necessary to evidence the valid Transfer to the applicable Party or member of such Party's Group of all right, title and interest in and to its accepted Assets and the valid and effective Assumption by the applicable Party or member of such Party's Group of the applicable Liabilities to be Assumed hereunder for Transfers and Assumptions to be effected pursuant to Delaware Law or the Laws of one of the other states of the United States or, if not appropriate for a given Transfer or Assumption, and for Transfers or Assumptions to be effected pursuant to non-U.S. Laws, in such form as the Parties shall reasonably agree, including the Transfer of real property by mutually acceptable conveyance deeds as may be appropriate and in form and substance as may be required by the jurisdiction in which the real property is located. The Transfer of capital stock shall be effected by means of executed stock powers and notation on the stock record books of the corporation or other legal entities involved, or by such other means as may be required (including in any non-U.S. jurisdiction) to Transfer title to stock and, only to the extent required by applicable Law, by notation on public registries.

Section 2.7 <u>Further Assurances; Ancillary Agreements</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) In addition to and without limiting the actions specifically provided for elsewhere in this Agreement and subject to the limitations expressly set forth in this Agreement, including <u>Section 2.5</u>, each of the Parties shall cooperate with each other and use (and shall cause each other member of its Group to use) reasonable best efforts, at and after the Distribution Date, to take, or to cause to be taken, all actions, and to do, or to cause to be done, all things reasonably necessary on its part under applicable Law or contractual obligations to consummate and make effective the transactions contemplated by this Agreement, the Ancillary Agreements and the Separation Plan.

&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) Without limiting the foregoing, at and after the Distribution Date, subject to <u>Section 9.5(c)</u>, each Party shall (and shall cause each other member of its Group to) cooperate with the other Party (and each other member of its Group) to execute and deliver, or use reasonable best efforts to cause to be executed and delivered, all instruments, including instruments of Transfer or title, and to make all filings with relevant Governmental Entities or other Persons, and to obtain all Consents or Governmental Approvals with respect to any permit, license or Contract, and to take all such other actions as such Party (or other member of its Group) may reasonably be requested to take by the other Party (or other member of its Group) from time to time, consistent with the terms of this Agreement and the Ancillary Agreements, in order to effectuate the provisions and purposes of this Agreement, the Ancillary Agreements, the Separation Plan and the Transfers of the applicable Assets and the assignment and Assumption of the applicable Liabilities and the other transactions contemplated hereby and thereby. Without limiting the foregoing, subject to <u>Section 9.5(c)</u>, each Party shall (and shall cause each other member of its Group to) take such other actions as may be reasonably necessary to vest in such other Party (or other member of its Group) such title and such rights as possessed by the transferring Party (or other member of its Group) to the Assets allocated to the other Party (or other member of its Group) under this Agreement or any of the Ancillary Agreements, free and clear of any Security Interest.

&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) Without limiting the foregoing, in the event that any Party (or member of such Party's Group) receives any Assets (including the receipt of payments made pursuant to Contracts and proceeds from accounts receivable with respect to such Asset) or is liable for any Liability that is otherwise allocated to any Person that is a member of the other Group pursuant to this Agreement or the Ancillary Agreements, such Party agrees to promptly Transfer, or cause to be Transferred such Asset or Liability to the other Party so entitled thereto (or member of such other Party's Group as designated by such other Party) at such other Party's expense. Prior to any such Transfer, such Asset or Liability, as the case may be, shall be held in accordance with the provisions of <u>Section 2.5</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) On or prior to the Distribution Date, each of Resideo and ADI SpinCo shall enter into, or (where applicable) shall cause a member or members of their respective Group to enter into, the Ancillary Agreements and any other Contracts reasonably necessary or appropriate in connection with the transactions contemplated hereby and thereby.

&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) On or prior to the Distribution Date, Resideo and ADI SpinCo in their respective capacities as direct or indirect stockholders of their respective Subsidiaries, shall each ratify any actions that are reasonably necessary or desirable to be taken by any Subsidiary of Resideo or Subsidiary of ADI SpinCo, as the case may be, to effectuate the transactions contemplated by this Agreement and the Ancillary Agreements.

&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) The Parties agree that any and all determinations as to whether an Asset or Liability is an ADI Asset, Resideo Retained Asset, ADI Liability or Resideo Retained Liability, as applicable, (i) shall be made by Resideo after reasonable inquiry and in good faith to the extent the value of such Asset or Liability (as reasonably determined by Resideo) is $500,000 or less and such determination shall be binding on the Parties, and (ii) shall be discussed in good faith with the intent of agreeing on the allocation of such Asset or Liability between the Parties to the extent the value of such Asset or Liability (as reasonably determined by Resideo) is in excess of $500,000, it being understood that if the Parties are unable to mutually agree on the allocation of such Asset or Liability after a reasonable period of time, the Parties shall resolve such disagreement in accordance with the dispute resolution provisions set forth in Article VII 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;(g) Following the Distribution Date, the Parties acknowledge that the Government Import/Export Accounts will remain with the ADI Group, provided, that, (i) any Assets, benefits, rights, claims or Liabilities in connection therewith will be apportioned between the ADI Group and Resideo Group pursuant to the terms of this Agreement (including the Schedules hereto), and (ii) Resideo shall have access to, and control of, the portion of the Government Import/Export Customs Account in respect of the Resideo Retained Business, including any necessary login credentials and the ability to upload any required documentation to any customs portal associated with the Government Import/Export Customs Accounts. To the extent there are any claims in respect of the Resideo Retained Business (including any administrative claims, drawback and refund claims) or Resideo wishes to make any such claims in respect of the Resideo Retained Business, in each case, related to the Government Import/Export Customs Accounts, ADI SpinCo shall act at the direction of Resideo with respect thereto and ADI SpinCo shall be indemnified for all Indemnifiable Losses arising out of any such actions. The Parties acknowledge and agree that any documentation relating to the Resideo Retained Business uploaded to any customs portal in respect of the Government Import/Export Customs Accounts shall be deemed "Confidential Information" of Resideo hereunder.

Section 2.8 <u>Novation of Liabilities; Indemnification</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) <u>Subject to Section 9.5(c)</u>, each Party, at the request of any member of the other Party's Group (such other Party, the "<u>Other Party</u>"), shall use reasonable best efforts to obtain, or to cause to be obtained, any Consent, Governmental Approval, substitution or amendment required to novate or assign to the fullest extent permitted by applicable Law all obligations under Contracts (other than Shared Contracts, which shall be governed by <u>Section 2.3</u>) and Liabilities (other than with regard to guarantees or Credit Support Instruments, which shall be governed by <u>Section 2.9</u>), but solely to the extent that the Parties (or applicable members of their respective Groups) are jointly or each severally liable with regard to any such Contracts or Liabilities and such Contracts or Liabilities have been, in whole, but not in part, allocated to the first Party, or, if permitted by applicable Law, to obtain in writing the unconditional release of the applicable Other Party so that, in any such case, the members of the applicable Group shall be solely responsible for such Contracts or Liabilities. In addition, with respect to any Action where any Party hereto is a defendant, when and if requested by such Party, the Other Party at its own expense will use commercially reasonable efforts to remove the requesting Party as a defendant to the extent that such Action relates solely to Assets or Liabilities that the Other Party (or any member of such requesting Party's Group) has been allocated pursuant to this <u>Article II</u>, and the Other Party will cooperate and assist in any required communication with any plaintiff or other related 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;(b) If the Parties are unable to obtain, or to cause to be obtained, any required Consent, Governmental Approval, release, substitution or amendment referenced in <u>Section 2.8(a)</u>, the Other Party or a member of such Other Party's Group shall continue to be bound by such Contract, license or other obligation that does not constitute a Liability of such Other Party and, unless not permitted by applicable Law or the terms thereof, as agent or subcontractor for such Party, the Party or member of such Party's Group who Assumed or retained such Liability as set forth in this Agreement (the "<u>Liable Party</u>") shall, or shall cause a member of its Group to, pay, perform and discharge fully all the obligations or other Liabilities of such Other Party or member of such Other Party's Group thereunder from and after the Effective Time. For the avoidance of doubt, in furtherance of the foregoing, the Liable Party or a member of such Liable Party's Group, as agent or subcontractor of the Other Party or a member of such Other Party's Group, to the extent reasonably necessary to pay, perform and discharge fully any Liabilities, or retain the benefits (including pursuant to <u>Section 2.5</u>) associated with such Contract, license or other obligation, is hereby granted the right to, among other things, (i) prepare, execute and submit invoices under such Contract or license in the name of the Other Party (or the applicable member of such Other Party's Group), (ii) send correspondence relating to matters under such Contract, license or other obligation in the name of the Other Party (or the applicable member of such Other Party's Group), (iii) upon prior written notice, file Actions in the name of the Other Party (or the applicable member of such Other Party's Group) in connection with such Contract, license or other obligation and (iv) otherwise exercise all rights in respect of such Contract, license or other obligation in the name of the Other Party (or the applicable member of such Other Party's Group); <u>provided</u> that (x) such actions shall be taken in the name of the Other Party (or the applicable member of such Other Party's Group) only to the extent reasonably necessary or advisable in connection with the foregoing, (y) to the extent that there shall be a conflict between the provisions of this <u>Section 2.8(b)</u> and the provisions of any more specific arrangement between a member of such Liable Party's Group and a member of such Other Party's Group, such more specific arrangement shall control, and (z) the Liable Party, on behalf of itself and the members of its Group, agrees not to renew or extend the term of, increase its obligations under, or Transfer to a third party, any such Contract, license or other obligation for which Other Party or member of such Party's Group is or may be liable without the prior written consent of the Other Party, unless all obligations of the Other Party and the other members of such Party's Group with respect thereto are thereupon terminated by documentation reasonably satisfactory in form and substance to the Other Party. The Liable Party shall indemnify each Other Party and hold each of them harmless against any Liabilities (other than Liabilities of such Other Party) arising in connection therewith; <u>provided</u>, that the Liable Party shall have no obligation to indemnify the Other Party with respect to any matter to the extent that such Liabilities arise from such Other Party's willful breach, knowing violation of Law, fraud, misrepresentation or gross negligence in connection therewith, in which case such Other Party shall be responsible for such Liabilities; it being understood that any exercise of rights under this Agreement by such Other Party shall not be deemed to be willful breach, knowing violation of Law, fraud, misrepresentation or gross negligence. The Other Party shall, without further consideration, promptly pay and remit, or cause to be promptly paid or remitted, to the Liable Party or, at the direction of the Liable Party, to another member of the Liable Party's Group, all money, rights and other consideration received by it or any member of its Group in respect of such performance by the Liable Party (unless any such consideration is an Asset of such Other Party pursuant to this Agreement). If and when any such Consent, Governmental Approval, release, substitution or amendment shall be obtained or such agreement, lease, license or other rights or obligations shall otherwise become assignable or able to be novated, the Other Party shall, to the fullest extent permitted by applicable Law, promptly Transfer or cause the Transfer of all rights, obligations and other Liabilities thereunder of such Other Party or any member of such Other Party's Group to the Liable Party or to another member of the Liable Party's Group without payment of any further consideration and the Liable Party, or another member of such Liable Party's Group, without the payment of any further consideration, shall Assume such rights and Liabilities to the fullest extent permitted by applicable Law. Each of the applicable Parties shall, and shall cause their respective Subsidiaries to, take all actions and do all things reasonably necessary on its part, or such Subsidiaries' part, under applicable Law or contractual obligations to consummate and make effective the transactions contemplated by this <u>Section 2.8</u>.

Section 2.9 <u>Guarantees; Credit Support Instruments</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) Except as otherwise specified in any Ancillary Agreement, on or prior to the Distribution Date or as soon as practicable thereafter, (i) Resideo shall (with the reasonable cooperation of the applicable member of the ADI Group) use its reasonable best efforts to have each member of the ADI Group removed as guarantor of any Resideo Retained Liability to the fullest extent permitted by applicable Law, including in respect of those guarantees set forth on <u>Schedule 2.9(a)(i)</u>, and (ii) ADI SpinCo shall (with the reasonable cooperation of the applicable member of the Resideo Group) use reasonable best efforts to have each member of the Resideo Group removed as guarantor of any ADI Liability, to the fullest extent permitted by applicable Law, including in respect of those guarantees set forth on <u>Schedule 2.9(a)(ii)</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) On or prior to the Distribution Date or as soon as practicable thereafter, to the extent required to obtain a release from a guaranty:

&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;(i) of any member of the Resideo Group, ADI SpinCo shall execute a guaranty agreement substantially in the form of the existing guaranty or such other form as is agreed to by the relevant parties to such guaranty agreement, except to the extent that such existing guaranty contains representations, covenants or other terms or provisions either (A) with which ADI SpinCo would be reasonably unable to comply or (B) which would be reasonably expected to be breached; and

&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;(ii) of any member of the ADI Group, Resideo shall execute a guaranty agreement substantially in the form of the existing guaranty or such other form as is agreed to by the relevant parties to such guaranty agreement, except to the extent that such existing guaranty contains representations, covenants or other terms or provisions either (A) with which Resideo would be reasonably unable to comply or (B) which would be reasonably expected to be breached.

&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) If Resideo or ADI SpinCo is unable to obtain, or to cause to be obtained, any such required removal as set forth in <u>clauses (a)</u> and <u>(b)</u> of this <u>Section 2.9</u>, (i) Resideo, to the extent a member of the Resideo Group has assumed the underlying Liability with respect to such guaranty or ADI SpinCo, to the extent a member of the ADI Group has assumed the underlying Liability with respect to such guaranty, as the case may be, shall indemnify and hold harmless the guarantor for any Indemnifiable Loss arising from or relating thereto (in accordance with the provisions of <u>Article V</u>) and shall or shall cause one of its Subsidiaries, as agent or subcontractor for such guarantor to pay, perform and discharge fully all the obligations or other Liabilities of such guarantor thereunder, (ii) ADI SpinCo or Resideo, as applicable, shall reimburse the applicable member of the Resideo Group or ADI Group, as applicable, for all documented out-of-pocket expenses incurred by it arising out of or related to any such guaranty; and (iii) each of Resideo and ADI SpinCo, on behalf of themselves and the members of their respective Groups, agree not to renew or extend the term of, increase its obligations under, or Transfer to a third party, any loan, guaranty, lease, Contract or other obligation for which another Party or member of such Party's Group is or may be liable as a guarantor without the prior written consent of such other Party, unless all obligations of such other Party and the other members of such Party's Group with respect thereto are thereupon terminated by documentation reasonably satisfactory in form and substance to such 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) Resideo and ADI SpinCo shall reasonably cooperate with respect to the replacement of, and ADI SpinCo shall use reasonable best efforts to replace, all Credit Support Instruments issued by Resideo or other members of the Resideo Group on behalf of or in favor of any member of the ADI Group or the ADI Business (the "<u>Resideo CSIs</u>") with Credit Support Instruments from ADI SpinCo or a member of the ADI Group, such replacement to occur as promptly as practicable prior to, on or following the Distribution Date. With respect to any Resideo CSIs that remain outstanding after the Distribution Date, (i) ADI SpinCo shall, and shall cause the members of the ADI Group to, indemnify and hold harmless the Resideo Indemnitees for any Liabilities arising from or relating to such Resideo CSIs, including any fees in connection with the issuance and maintenance thereof and any funds drawn by (or for the benefit of), or disbursements made to, the beneficiaries of such Resideo CSIs in accordance with the terms thereof, (ii) ADI SpinCo shall reimburse the applicable member of the Resideo Group for all documented out-of-pocket expenses incurred by it arising out of or related to any such Resideo CSIs, and (iii) without the prior written consent of Resideo, ADI SpinCo shall not, and shall not permit any member of the ADI Group to, enter into, renew or extend the term of, increase its obligations under, or transfer to a third party, any loan, guaranty, lease, Contract or other obligation in connection with which Resideo or any member of the Resideo Group has issued any Resideo CSIs which remain outstanding. Neither Resideo nor any member of the Resideo Group will have any obligation to renew any Resideo CSIs issued on behalf of or in favor of any member of the ADI Group or the ADI Business after the expiration of any such Resideo CSIs.

&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) Resideo and ADI SpinCo shall reasonably cooperate with respect to the replacement of, and Resideo shall use reasonable best efforts to replace, all Credit Support Instruments issued by ADI SpinCo or other members of the ADI Group on behalf of or in favor of any member of the Resideo Group or the Resideo Retained Business (the "<u>ADI CSIs</u>") with Credit Support Instruments from Resideo or a member of the Resideo Group, such replacement to occur as promptly as practicable prior to, on or following the Distribution Date. With respect to any ADI CSIs that remain outstanding after the Distribution Date, (i) Resideo shall, and shall cause the members of the Resideo Group to, indemnify and hold harmless the ADI Indemnitees for any Liabilities arising from or relating to such ADI CSIs, including any fees in connection with the issuance and maintenance thereof and any funds drawn by (or for the benefit of), or disbursements made to, the beneficiaries of such ADI CSIs in accordance with the terms thereof, (ii) Resideo shall reimburse the applicable member of the ADI Group for all documented out-of-pocket expenses incurred by it arising out of or related to any such ADI CSIs, and (iii) without the prior written consent of ADI SpinCo, Resideo shall not, and shall not permit any member of the Resideo Group to, enter into, renew or extend the term of, increase its obligations under, or transfer to a third party, any loan, guaranty, lease, Contract or other obligation in connection with which ADI SpinCo or any member of the ADI Group has issued any ADI CSIs which remain outstanding. Neither ADI SpinCo nor any member of the ADI Group will have any obligation to renew any ADI CSIs issued on behalf of or in favor of any member of the Resideo Group or the Resideo Retained Business after the expiration of any such ADI CSIs.

Section 2.10 <u>Disclaimer of Representations and Warranties</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) EACH OF RESIDEO (ON BEHALF OF ITSELF AND EACH MEMBER OF THE RESIDEO GROUP) AND ADI SPINCO (ON BEHALF OF ITSELF AND EACH MEMBER OF THE ADI GROUP) UNDERSTANDS AND AGREES THAT, EXCEPT AS EXPRESSLY SET FORTH HEREIN, IN ANY ANCILLARY AGREEMENT OR IN ANY CONTINUING ARRANGEMENT, NO PARTY TO THIS AGREEMENT, ANY ANCILLARY AGREEMENT OR ANY OTHER AGREEMENT OR DOCUMENT CONTEMPLATED BY THIS AGREEMENT, ANY ANCILLARY AGREEMENT OR OTHERWISE, IS REPRESENTING OR WARRANTING IN ANY WAY, AND HEREBY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, AS TO THE ASSETS, BUSINESSES OR LIABILITIES CONTRIBUTED, TRANSFERRED OR ASSUMED AS CONTEMPLATED HEREBY OR THEREBY, AS TO ANY CONSENTS OR GOVERNMENTAL APPROVALS REQUIRED IN CONNECTION HEREWITH OR THEREWITH, AS TO THE VALUE OR FREEDOM FROM ANY SECURITY INTERESTS OF, AS TO NONINFRINGEMENT, VALIDITY OR ENFORCEABILITY OR ANY OTHER MATTER CONCERNING, ANY ASSETS OR BUSINESS OF SUCH PARTY, OR AS TO THE ABSENCE OF ANY DEFENSES OR RIGHT OF SETOFF OR FREEDOM FROM COUNTERCLAIM WITH RESPECT TO ANY ACTION OR OTHER ASSET, INCLUDING ACCOUNTS RECEIVABLE, OF ANY PARTY, OR AS TO THE LEGAL SUFFICIENCY OF ANY CONTRIBUTION, ASSIGNMENT, DOCUMENT, CERTIFICATE OR INSTRUMENT DELIVERED HEREUNDER OR THEREUNDER TO CONVEY TITLE TO ANY ASSET OR THING OF VALUE UPON THE EXECUTION, DELIVERY AND FILING HEREOF OR THEREOF. EXCEPT AS MAY EXPRESSLY BE SET FORTH HEREIN, IN ANY ANCILLARY AGREEMENT OR IN ANY CONTINUING ARRANGEMENT, ALL SUCH ASSETS ARE BEING TRANSFERRED ON AN "AS IS, WHERE IS" BASIS (AND, IN THE CASE OF ANY REAL PROPERTY, BY MEANS OF A QUITCLAIM OR SIMILAR FORM DEED OR CONVEYANCE) AND THE RESPECTIVE TRANSFEREES SHALL BEAR THE ECONOMIC AND LEGAL RISKS THAT (I) ANY CONVEYANCE SHALL PROVE TO BE INSUFFICIENT TO VEST IN THE TRANSFEREE GOOD TITLE, FREE AND CLEAR OF ANY SECURITY INTEREST AND (II) ANY NECESSARY CONSENTS OR GOVERNMENTAL APPROVALS ARE NOT OBTAINED OR THAT ANY REQUIREMENTS OF LAWS OR JUDGMENTS ARE NOT COMPLIED WITH.

&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) Each of Resideo (on behalf of itself and each member of the Resideo Group) and ADI SpinCo (on behalf of itself and each member of the ADI Group) further understands and agrees that if the disclaimer of express or implied representations and warranties contained in <u>Section 2.10(a)</u> is held unenforceable or is unavailable for any reason under the Laws of any jurisdiction outside the United States or if, under the Laws of a jurisdiction outside the United States, both Resideo or any member of the Resideo Group, on the one hand, and ADI SpinCo or any member of the ADI Group, on the other hand, are jointly or severally liable for any Resideo Retained Liability or any ADI Liability, respectively, then, the Parties intend that, notwithstanding any provision to the contrary under the Laws of such foreign jurisdictions, the provisions of this Agreement and the Ancillary Agreements (including the disclaimer of all representations and warranties, allocation of Liabilities among the Parties and their respective Subsidiaries, releases, indemnification and contribution of Liabilities) shall prevail for any and all purposes among the Parties and their respective Subsidiaries.

&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) Resideo hereby waives compliance by itself and each and every member of the Resideo Group with the requirements and provisions of any "bulk-sale" or "bulk transfer" Laws of any jurisdiction that may otherwise be applicable with respect to the transfer or sale of any or all of the Resideo Retained Assets to Resideo or any member of the Resideo 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;(d) ADI SpinCo hereby waives compliance by itself and each and every member of the ADI Group with the requirements and provisions of any "bulk-sale" or "bulk transfer" Laws of any jurisdiction that may otherwise be applicable with respect to the transfer or sale of any or all of the ADI Assets to ADI SpinCo or any member of the ADI Group.

Section 2.11 <u>ADI Financing Arrangements</u>. On or prior to the Distribution Date, ADI SpinCo (or other relevant members of the ADI Group) shall enter into the ADI Financing Arrangements, on such terms and conditions as determined by Resideo in good faith (including the amount that shall be borrowed pursuant to the ADI Financing Arrangements and the terms and interest rates for such borrowings) and the ADI Financing Arrangements shall have been consummated in accordance therewith. Resideo and ADI SpinCo shall participate in the preparation of all materials and presentations as may be reasonably necessary to secure funding pursuant to the ADI Financing Arrangements, including rating agency presentations necessary to obtain the requisite ratings needed to secure the financing under any of the ADI Financing Arrangements. The Parties agree that ADI SpinCo or other applicable members of the ADI Group, and not Resideo or other applicable members of the Resideo Group, shall be ultimately responsible for all costs and expenses associated with the ADI Financing Arrangements incurred by, and for reimbursement of such costs and expenses to, any member of the Resideo Group or the ADI Group.

Section 2.12 <u>Cash Management; Consideration; Cash Adjustment</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) <u>Cash Management</u>. Subject to any adjustment in accordance with this <u>Section 2.12</u>, all Cash Equivalents held by any member of the ADI Group as of the Effective Time shall be an ADI Asset and all Cash Equivalents held by any member of the Resideo Group as of the Effective Time shall be a Resideo Retained Asset. To the extent that following the Effective Time any Cash Equivalents are required to be transferred from any member of the Resideo Group to any member of the ADI Group or from any member of the ADI Group to any member of the Resideo Group to make effective the Internal Reorganization or the Contribution pursuant to this Agreement and the Ancillary Agreements (including if required by Law or regulation to effect the foregoing, but excluding for the avoidance of doubt, the transfer of Cash Equivalents contemplated by <u>Section 2.12(b)</u>), the Party receiving such Cash Equivalents shall promptly transfer an amount in cash equal to such transferred Cash Equivalents back to the transferring Party so as not to override the allocations of Assets, Liabilities and expenses related to the Internal Reorganization and the Contribution contemplated by this Agreement and the Ancillary Agreements.

&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) <u>Consideration</u>. In exchange for the Contribution, ADI SpinCo agrees to, on or prior to the Distribution Date, (i) issue to Resideo [●] newly issued, fully paid and non-assessable shares of ADI SpinCo Common Stock, (ii) issue to Resideo [●] newly issued, fully paid and non-assessable shares of ADI SpinCo Preferred Stock, and (iii) subject to any adjustment in accordance with <u>Section 2.12(c)</u>, pay to Resideo $[·] out of the net proceeds of the ADI Financing Arrangements received by ADI SpinCo at or prior to the consummation of the Distribution (the "<u>ADI Cash Payment</u>") (such issuances and payment, collectively, the "<u>Consideration</u>"). The payment of cash made by ADI SpinCo to Resideo pursuant to this <u>Section 2.12(b)</u> shall be made by wire transfer of immediately available funds to an account designated by Resideo to ADI SpinCo in writing.

&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) <u>Cash Adjustment</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Adjustment</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) As promptly as practicable following the Distribution Date, Resideo shall calculate the Distribution Date Cash Amount and shall promptly notify ADI SpinCo of such calculation (the date on which such notification is delivered, the "<u>Cash Adjustment Notification Date</u>"). The calculation of the Distribution Date Cash Amount shall be made by Resideo in good faith and shall be final and binding on ADI SpinCo, and shall not be subject to any challenge or dispute (pursuant to the procedures set forth in <u>Article VII</u> or otherwise). ADI SpinCo shall provide Resideo with such information and access as is reasonably requested by Resideo to calculate the Distribution Date Cash Amount.

&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;(2) If Resideo determines that (A) the Distribution Date Cash Amount exceeds the Target Cash Amount, the amount of such excess, shall be paid by ADI SpinCo to Resideo in accordance with <u>Section 2.12(c)(i)(3)</u>, or (B) the Target Cash Amount exceeds the Distribution Date Cash Amount, the amount of such excess, shall be paid by Resideo to ADI SpinCo in accordance with <u>Section 2.12(c)(i)(3)</u> (the amount of any such payment under clause (A) or (B), as the case may be, the "<u>Cash Adjustment</u>"). If the Cash Adjustment is equal to zero, no payment in respect of such amount shall be made by either 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If payment is required to be made by ADI SpinCo in accordance with <u>Section 2.12(c)(i)(2)(A)</u>, ADI SpinCo shall, within five (5) Business Days of the Cash Adjustment Notification Date, make payment to Resideo by wire transfer in immediately available funds to an account designated in writing by Resideo within five (5) Business Days after the Cash Adjustment Notification Date of an amount equal to the Cash Adjustment. If payment is required to be made by Resideo in accordance with <u>Section 2.12(c)(i)(2)(B)</u>, Resideo shall, within five (5) Business Days of the Cash Adjustment Notification Date, make payment to ADI SpinCo by wire transfer in immediately available funds to an account designated in writing by ADI SpinCo within five (5) Business Days after the Cash Adjustment Notification Date of an amount equal to the Cash Adjustment.

**Article III<u><br>THE DISTRIBUTION AND ACTIONS PENDING THE DISTRIBUTION;OTHER TRANSACTIONS</u>**

Section 3.1 <u>Distribution</u>. At or prior to the Effective Time, in connection with the the Contribution, ADI SpinCo shall pay or issue the Consideration to Resideo (or Resideo and ADI SpinCo shall take or cause to be taken such other appropriate actions to ensure that Resideo has the requisite number of shares of ADI SpinCo Common Stock and ADI SpinCo Preferred Stock) and take any other action as may be requested by Resideo in order to effect the Distribution. Subject to the conditions and other terms set forth in this <u>Article III</u>, Resideo shall cause the Distribution Agent on the Distribution Date to make the Distribution, including by crediting the appropriate number of shares of ADI SpinCo Common Stock to book-entry accounts for each Record Date Holder. For Record Date Holders who own Resideo Common Stock through a broker or other nominee, their shares of ADI SpinCo Common Stock will be credited to their respective accounts by such broker or nominee. No action by any Record Date Holder (or such Record Date Holder's designated transferee or transferees) shall be necessary to receive the applicable number of shares of ADI SpinCo Common Stock (and, if applicable, cash in lieu of any fractional shares) such stockholder is entitled to in the Distribution.

Section 3.2 <u>Fractional Shares</u>. Record Date Holders who, after aggregating the number of shares of ADI SpinCo Common Stock (or fractions thereof) to which such stockholder would be entitled on the Record Date, would be entitled to receive a fraction of a share of ADI SpinCo Common Stock in the Distribution, will receive cash in lieu of fractional shares. Fractional shares of ADI SpinCo Common Stock will not be distributed in the Distribution nor credited to book-entry accounts. As soon as practicable after the Distribution Date, Resideo shall direct the Distribution Agent to (a) determine the number of whole shares and fractional shares of ADI SpinCo Common Stock allocable to each Record Date Holder, (b) aggregate all such fractional shares into whole shares and sell the whole shares obtained thereby in open market transactions at then prevailing trading prices on behalf of holders who would otherwise be entitled to fractional share interests, and (c) distribute to each Record Date Holder, such holder's ratable share of the net proceeds of such sale, based upon the average gross selling price per share of ADI SpinCo Common Stock after making appropriate deductions for any Taxes required to be withheld and applicable transfer Taxes, and after deducting the costs and expenses of such sale and distribution, including brokerage fees and commissions. Such sales shall occur as soon after the Distribution Date as practicable and as determined by the Distribution Agent. None of Resideo, ADI SpinCo or the applicable Distribution Agent will guarantee any minimum sale price for the fractional shares of ADI SpinCo Common Stock. Neither Resideo nor ADI SpinCo will pay any interest on the proceeds from the sale of fractional shares. The Distribution Agent will have the sole discretion to select the broker-dealers through which to sell the aggregated fractional shares and to determine when, how and at what price to sell such shares. Neither the Distribution Agent nor the selected broker-dealers will be Affiliates of Resideo or ADI SpinCo.

Section 3.3 <u>Actions in Connection with the Distribution</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) Prior to the Distribution Date, ADI SpinCo shall file such amendments and supplements to the Form 10 as Resideo may reasonably request, and such amendments as may be necessary in order to cause the same to become and remain effective as required by Law, including filing such amendments and supplements to the Form 10 as may be required by the Commission or federal, state or foreign securities Laws. Resideo shall, or at Resideo's election, ADI SpinCo shall, mail (or deliver by electronic means where not prohibited by Law) to the holders of Resideo Common Stock, at such time on or prior to the Distribution Date as Resideo shall determine, the Information Statement (or a Notice of Internet Availability of the Information Statement). Promptly after receiving a request from Resideo, ADI SpinCo shall prepare and, in accordance with applicable Law, file with the Commission any such documentation that Resideo reasonably determines is necessary or desirable to effectuate the Distribution, and Resideo and ADI SpinCo shall each use reasonable best efforts to obtain all necessary approvals from the Commission with respect thereto as soon 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;(b) ADI SpinCo shall use reasonable best efforts in preparing, filing with the Commission and causing to become effective, as soon as reasonably practicable a registration statement or amendments thereof which are required in connection with the establishment of, or amendments to, any employee benefit plans of ADI SpinCo.

&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) To the extent not already approved and effective, ADI SpinCo shall use reasonable best efforts to have approved and made effective, the application for the original listing on the NYSE of the ADI SpinCo Common Stock to be distributed in the Distribution, and the shares of ADI SpinCo Common Stock to be reserved for issuance pursuant to any director or employee benefit plan or arrangement on the NYSE, subject to official notice of distribution.

&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) To the extent not already completed, ADI SpinCo shall use its reasonable best efforts to take all actions to effectuate the transactions contemplated by the ADI Financing Arrangements, pursuant to the terms and conditions of the agreements governing 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;(e) Nothing in this <u>Section 3.3</u> shall be deemed to shift or otherwise impose Liability for any portion of ADI SpinCo's Form 10 or Information Statement to Resideo, it being understood that all such Liabilities shall constitute ADI Liabilities hereunder.

Section 3.4 <u>Sole Discretion of Resideo</u>. Resideo, in its sole and absolute discretion, shall be entitled to determine the Distribution Date and all other terms of the Distribution, including the form, structure and terms of any transactions to effect the Distribution and the timing of and conditions to the consummation thereof. In addition, Resideo may, in accordance with <u>Section 9.10</u>, at any time and from time to time until the completion of the Distribution decide to abandon the Distribution or modify or change the terms of the Distribution, including by accelerating or delaying the timing of the consummation of all or part of the Distribution. Without limiting the foregoing, Resideo shall have the right not to complete the Distribution if, at any time prior to the Effective Time, the Resideo Board shall have determined, in its sole discretion, that the Distribution is not in the best interests of Resideo or its stockholders, that a sale or other alternative is in the best interests of Resideo or its stockholders or that it is not advisable at that time to separate the ADI Business from Resideo.

Section 3.5 <u>Conditions to Distribution</u>. Without limiting <u>Section 3.4</u>, the obligation of Resideo to consummate the Distribution is subject to the prior or simultaneous satisfaction or, to the extent permitted by applicable Law, waiver by Resideo, in its sole and absolute discretion, of the following conditions. None of ADI SpinCo, any other member of the ADI Group, or any third party shall have any right or claim to require the consummation of the Distribution, which shall be effected at the sole discretion of the Resideo Board. Any determination made by Resideo prior to the Distribution concerning the satisfaction or waiver of any or all of the conditions set forth in this <u>Section 3.5</u> shall be conclusive and binding on the Parties hereto. The conditions are for the sole benefit of Resideo and shall not give rise to or create any duty on the part of Resideo or the Resideo Board to waive or not waive any such condition. Each Party will use its reasonable best efforts to keep the other Party apprised of its efforts with respect to, and the status of, each of the following conditions:

&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) the Commission shall have declared effective the Form 10, of which the Information Statement forms a part, and no stop order relating to the registration statement will be in effect, no proceedings seeking such stop order shall be pending before or threatened by the Commission, and the Information Statement (or the Notice of Internet Availability of the Information Statement) shall have been distributed to holders of Resideo Common Stock;

&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) the ADI SpinCo Common Stock to be distributed in the Distribution shall have been approved and accepted for listing by the NYSE, subject to official notice of issuance;

&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) Resideo shall have received (A) a private letter ruling from the Internal Revenue Service and/or (B) an opinion of PricewaterhouseCoopers LLP (which private letter ruling and/or opinion continue to be valid), in form and substance acceptable to the Resideo Board, regarding the qualification of the Distribution and the transactions contemplated by the Exchange Agreement, together with certain related transactions, as a "reorganization" within the meaning of Sections 368(a)(1)(D) and 355 of Code, and which ruling or opinion, as applicable, shall not have been withdrawn, rescinded, or modified in any material respect;

&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) all registrations, consents and filings required under the securities or blue sky laws of states or other political subdivisions of the United States or of other foreign jurisdictions in connection with the Distribution shall have been received or made;

&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) no order, injunction or decree issued by any Governmental Entity of competent jurisdiction, or other legal restraint or prohibition, preventing the consummation of the Distribution or any of the related transactions shall be pending, threatened, issued or in effect, and no other event outside of Resideo's control shall have occurred or failed to occur that prevents the consummation of all or any portion of the Distribution or any related transactions contemplated hereby, including the Internal Reorganization;

&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) the Internal Reorganization shall have been effectuated prior to the Distribution, except for such steps (if any) as Resideo in its sole discretion shall have determined need not be completed or may be completed after the Effective Time;

&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) the Resideo Board shall have declared the Distribution and approved all related transactions (and such declaration or approval shall not have been withdrawn);

&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) ADI SpinCo and Resideo shall have executed and delivered all Ancillary Agreements contemplated by this Agreement to be entered into prior to or concurrently with the Distribution;

&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) the transactions contemplated by the Exchange Agreement shall have consummated in accordance with its terms;

&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) an independent appraisal firm shall have delivered an opinion to the Resideo Board that (i) after giving effect to the ADI Cash Payment and immediately prior to giving effect to the Separation and pursuant to Section 170 of the Delaware General Corporation Law (as may be amended from time to time, the "<u>DGCL</u>"), the surplus of Resideo exceeds the value of the ADI SpinCo Common Stock being distributed to Resideo common stockholders pursuant to the Distribution; (ii) after giving effect to the financing contemplated by the ADI Financing Arrangements and immediately prior to giving effect to the ADI Cash Payment and pursuant to Section 170 of the DGCL, the surplus of ADI SpinCo exceeds the ADI Cash Payment; and (iii) after giving effect to the Separation, (a) the assets of each of Resideo and ADI SpinCo, at a fair valuation, exceed its respective debts (including contingent liabilities), (b) each of Resideo and ADI SpinCo will be able to pay its respective debts (including contingent liabilities) as they become due, and (c) each of Resideo and ADI SpinCo will not have an unreasonably small amount of assets (or capital) for the businesses in which it is engaged or in which management has indicated it intends to engage;

&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) the ADI Financing Arrangements shall have been consummated and the ADI Cash Payment shall have been paid to Resideo; and

&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) no events or developments shall have occurred or shall exist that, in the sole and absolute judgment of the Resideo Board, make it inadvisable to effect the Internal Reorganization, Distribution and other transactions contemplated by this Agreement or would result in the Internal Reorganization, Distribution and other transactions contemplated by this Agreement not being in the best interest of Resideo or its stockholders.

Section 3.6 <u>Organizational Documents</u>. On or prior to the Distribution Date, Resideo and ADI SpinCo shall each take all actions that may be required to provide for the adoption by ADI SpinCo of the Amended and Restated Certificate of Incorporation of ADI SpinCo substantially in the form attached as <u>Exhibit F</u> (the "<u>Charter</u>"), the Amended and Restated Bylaws of ADI SpinCo substantially in the form attached as <u>Exhibit G</u> (the "<u>Bylaws</u>"), and the Certificate of Designations for the Series A Cumulative Convertible Participating Preferred Stock of ADI SpinCo substantially in the form attached hereto as <u>Exhibit H</u>, in each case, to be effective as of or prior to the Distribution Date.

Section 3.7 <u>Directors</u>. On or prior to the Distribution Date, Resideo and ADI SpinCo shall each take all necessary actions to cause the ADI SpinCo Board to include, as of the Distribution Date, the individuals identified in the Distribution Disclosure Documents as directors of ADI SpinCo upon completion of the Distribution.

Section 3.8 <u>Officers</u>. On or prior to the Distribution Date, Resideo and ADI SpinCo shall each take all necessary action to cause the individuals identified as officers of ADI SpinCo in the Distribution Disclosure Documents to be officers of ADI SpinCo as of the Distribution Date.

Section 3.9 <u>Resignations and Removals</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) Except as provided in <u>Section 3.9(b)</u>, on or prior to the Distribution Date or as soon thereafter as practicable, (i) Resideo shall cause all its employees and any employees of its Subsidiaries (excluding any employees of any member of the ADI Group) to resign or be removed, effective as of the Effective Time, from all positions as officers or directors of any member of the ADI Group in which they serve, and (ii) ADI SpinCo shall cause all its employees and any employees of its Subsidiaries to resign, effective as of the Effective Time, from all positions as officers or directors of any members of the Resideo Group in which they serve. Each Party shall reasonably cooperate with the other to effect the resignations and removals contemplated in the preceding sentence, including by delivering or causing to be delivered such documentation as may be reasonably necessary to effect 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;(b) No Person shall be required by any Party to resign or be removed from any position or office with another Party if such Person is disclosed in the Distribution Disclosure Documents as a Person who is to hold such position or office following the Distribution Date.

Section 3.10 <u>Cooperation Regarding the Distribution</u>. ADI SpinCo shall cooperate with Resideo in all respects to accomplish the Distribution and shall, at Resideo's direction, promptly take any and all actions necessary or desirable to effect the Distribution, including the filing of any necessary documents pursuant to the Exchange Act and the prompt provision of such financial and other information that may be requested by Resideo pursuant to <u>Section 6.2(b)</u> of this Agreement. Resideo shall select any investment bank(s), manager(s), underwriter(s) or dealer-manager(s) in connection with the Distribution, as well as any financial printer, solicitation or exchange agent and financial, legal, accounting, tax and other advisors and service providers in connection with the Distribution, as applicable. ADI SpinCo and Resideo, as the case may be, will provide to the Distribution Agent all share certificates (to the extent certificated) or book-entry authorizations (to the extent not certificated) and ADI SpinCo will provide to Resideo and the Distribution Agent (as directed by Resideo) any information required in order to complete the Distribution.

**Article IV<u><br>CERTAIN COVENANTS</u>**

Section 4.1 <u>Cooperation</u>. From and after the Distribution Date, and subject to the terms of and limitations contained in this Agreement and the Ancillary Agreements, including <u>Section 9.5(d)</u>, each Party shall, and shall cause each other member of its Group and employees to, (i) reasonably assist the other Party in the orderly and efficient transition in becoming a separate company to the extent set forth in the Transition Services Agreement or as otherwise set forth herein (including, but not limited to, complying with <u>Articles V</u>, <u>VI</u> and <u>VIII</u>) and (ii) reasonably assist the other Party to the extent such Party is providing or has provided services, as applicable, pursuant to the Transition Services Agreement in connection with requests for information from, audits or other examinations of, such other Party by a Governmental Entity.

Section 4.2 <u>Resideo Retained Names</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) ADI SpinCo acknowledges and agrees that, except for the licensed rights expressly set forth in this <u>Section 4.2</u> or pursuant to any Ancillary Agreement or Continuing Arrangement, neither ADI SpinCo nor any of its Subsidiaries shall have any right, title or interest in any of the Resideo Retained Names. Other than as set forth on <u>Schedule 4.2,</u> no later than ninety (90) days following the Distribution Date, ADI SpinCo shall, and shall cause the members of the ADI Group to, change their names and cause their certificates of incorporation and bylaws (or equivalent organizational documents), as applicable, to be amended to remove any reference to the Resideo Retained Names.

&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) Without limitation of the terms of any Ancillary Agreement or Continuing Arrangement, Resideo, on behalf of itself and the other members of the Resideo Group, hereby grants to the ADI Group, effective as of the Distribution Date, a limited, temporary, non-exclusive, non-transferable, non-sublicensable, worldwide, royalty-free license under the Resideo Retained Names that are used in the ADI Business immediately prior to Distribution Date, to use and display such Resideo Retained Names, for a period of up to six (6) months (or such other period of time set forth in <u>Schedule 4.2</u> in respect of the applicable member of the ADI Group set forth therein) immediately following Distribution Date, solely in a manner that complies with all applicable Laws and is consistent with the manner used in the operation of the ADI Business immediately prior to Distribution Date, and in the case of any Resideo Retained Name that is licensed by any member of the Resideo Group from a third party (including pursuant to the Honeywell Separation Agreements), solely to the extent such license permits Resideo (or any other member of its Group) to license such Resideo Retained Name as contemplated herein, and ADI SpinCo shall, and shall cause each other member of the ADI Group, to comply with the terms of each such license; <u>provided</u>, that, following the Distribution Date, unless otherwise directed by Resideo or as otherwise permitted pursuant to any Ancillary Agreement or Continuing Arrangement, ADI SpinCo shall, and shall cause the members of the ADI Group to: (i) immediately cease to hold themselves out as having any affiliation with Resideo or any members of the Resideo Group; (ii) as soon as practicable, but in no event later than six (6) months (or such other period of time set forth in <u>Schedule 4.2</u> in respect of the applicable member of the ADI Group set forth therein) following the Distribution Date, (A) cease to make any use of any Resideo Retained Names, and (B) remove, strike over, or otherwise obliterate all Resideo Retained Names from all assets and other materials displayed or intended for distribution by any member of the ADI Group, including any vehicles, business cards, schedules, stationery, packaging materials, displays, signs, promotional materials, manuals, forms, websites, email, computer software and other materials and systems; and (iii) promptly after the Distribution Date post a disclaimer in a form and manner reasonably acceptable to Resideo on the "[ADI URL]" website informing its customers that ADI SpinCo or the applicable member(s) of the ADI Group, and not Resideo or any other member of the Resideo Group, is responsible for the operation of the ADI Business, including such website and any applicable services. Notwithstanding anything to the contrary, and for greater clarity, nothing in this <u>Section 4.2(b)</u> shall prohibit or prevent the ADI Group's use of Resideo Retained Names (i) on internal historical documents held as of the Distribution Date, in a descriptive or factually accurate manner constituting fair or other permitted non-trademark use, or for similar purposes, in each case, that would not, even in the absence of a license or similar permission, constitute infringement or any other violation of a Trademark under applicable Law and, in the case of any such Resideo Retained Name that is licensed by any member of the Resideo Group from a third party (including pursuant to the Honeywell Separation Agreements), solely to the extent such license permits Resideo (or any other member of its Group) to license such Resideo Retained Name as contemplated herein, or (ii) as permitted by any Ancillary Agreement or Continuing Arrangement.

&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) Without limitation of any obligations set forth in any Ancillary Agreement or Continuing Arrangement, ADI SpinCo shall, and shall cause the other members of the ADI Group to, (i) use the Resideo Retained Names following the Distribution Date only in a form and manner, and with standards of quality, of that in effect for the Resideo Retained Names as of the Distribution Date, and (ii) not use the Resideo Retained Names in a manner that reflects negatively on the Resideo Retained Names or the goodwill associated therewith or on Resideo or any member of the Resideo Group. ADI SpinCo shall indemnify, defend and hold harmless Resideo and the members of the Resideo Group from and against any and all Indemnifiable Losses arising from or relating to the use by any member of the ADI Group of the Resideo Retained Names pursuant to <u>Section 4.2(b),</u> including for the avoidance of doubt any Indemnifiable Losses arising from the ADI Group's use of the Resideo Retained IP that is licensed by a member of the Resideo Group from a 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) Each of the Parties acknowledges and agrees that the remedy at Law for any breach of the requirements of this <u>Section 4.2</u> would be inadequate and agrees and consents that without intending to limit any additional remedies that may be available, Resideo and the members of the Resideo Group shall be entitled to a temporary or permanent injunction, without proof of actual damage or inadequacy of legal remedy, and without posting any bond or other undertaking, in any Action which may be brought to enforce any of the provisions of this <u>Section 4.2</u>.

Section 4.3 <u>ADI Retained Names</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) Resideo acknowledges and agrees that, except for the licensed rights expressly set forth in this <u>Section 4.3</u> or pursuant to any Ancillary Agreement or Continuing Arrangement, neither Resideo nor any of its Subsidiaries shall have any right, title or interest in any of the ADI Retained Names. No later than ninety (90) days following the Distribution Date, Resideo shall, and shall cause the members of the Resideo Group to, change their names and cause their certificates of incorporation and bylaws (or equivalent organizational documents), as applicable, to be amended to remove any reference to the ADI Retained Names.

&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) ADI SpinCo, on behalf of itself and the other members of the ADI Group, hereby grants to the Resideo Group, effective as of the Distribution Date, a limited, temporary, non-exclusive, non-transferable, non-sublicensable, worldwide, royalty-free license under the ADI Retained Names that are used in the Resideo Retained Business immediately prior to Distribution Date, to use and display such ADI Retained Names, for a period of up to six (6) months immediately following Distribution Date, solely in a manner that complies with all applicable Laws and is consistent with the manner used in the operation of the Resideo Retained Business immediately prior to Distribution Date, and in the case of any ADI Retained Name that is licensed by any member of the ADI Group from a third party, solely to the extent such license permits ADI SpinCo (or any other member of its Group) to license such ADI Retained Name as contemplated herein, and Resideo shall, and shall cause each other member of the Resideo Group to, comply with the terms of each such license; <u>provided</u>, that, following the Distribution Date, unless otherwise directed by ADI SpinCo or as otherwise permitted pursuant to any Ancillary Agreement or Continuing Arrangement, Resideo shall, and shall cause the members of the Resideo Group to: (i) immediately cease to hold themselves out as having any affiliation with ADI SpinCo or any members of the ADI Group; (ii) as soon as practicable, but in no event later than six (6) months following the Distribution Date, (A) cease to make any use of any ADI Retained Names, and (B) remove, strike over, or otherwise obliterate all ADI Retained Names from all assets and other materials displayed or intended for distribution by any member of the Resideo Group, including any vehicles, business cards, schedules, stationery, packaging materials, displays, signs, promotional materials, manuals, forms, websites, email, computer software and other materials and systems; and (iii) promptly after the Distribution Date post a disclaimer on the "[Resideo URL]" website informing its customers that Resideo and the other members of the Resideo Group, and not ADI SpinCo or the other members of the ADI Group, is responsible for the operation of the Resideo Retained Business, including such website and any applicable services. Notwithstanding anything to the contrary, and for greater clarity, nothing in this <u>Section 4.3(b)</u> shall prohibit or prevent the Resideo Group's use of ADI Retained Names (i) on internal historical documents held as of the Distribution Date, in a descriptive or factually accurate manner constituting fair or other permitted non-trademark use, or for similar purposes, in each case, that would not, even in the absence of a license or similar permission, constitute infringement or any other violation of a Trademark under applicable Law, and, in the case of any such ADI Retained Name that is licensed by any member of the ADI Group from a third party, solely to the extent such license permits ADI SpinCo (or any other member of its Group) to license such ADI Retained Name as contemplated herein or (ii) as permitted by any Ancillary Agreement or Continuing Arrangement.

&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) Without limitation of any obligations set forth in any Ancillary Agreement or Continuing Arrangement, Resideo shall, and shall cause the other members of the Resideo Group to, (i) use the ADI Retained Names following the Distribution Date only in a form and manner, and with standards of quality, of that in effect for the ADI Retained Names as of the Distribution Date, and (ii) not use the ADI Retained Names in a manner that reflects negatively on the ADI Retained Names or the goodwill associated therewith or on Resideo or any member of the Resideo Group. Resideo shall indemnify, defend and hold harmless ADI SpinCo and the members of the ADI Group from and against any and all Indemnifiable Losses arising from or relating to the use by any member of the Resideo Group of the ADI Retained Names pursuant to <u>Section 4.3(b</u>), including for the avoidance of doubt any Indemnifiable Losses arising from the Resideo Group's use of the ADI Intellectual Property that is licensed by a member of the ADI Group from a 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) Each of the Parties acknowledges and agrees that the remedy at Law for any breach of the requirements of this <u>Section 4.3</u> would be inadequate and agrees and consents that without intending to limit any additional remedies that may be available, ADI SpinCo and the members of the ADI Group shall be entitled to a temporary or permanent injunction, without proof of actual damage or inadequacy of legal remedy, and without posting any bond or other undertaking, in any Action which may be brought to enforce any of the provisions of this <u>Section 4.3</u>.

**Article V<u><br>INDEMNIFICATION</u>**

Section 5.1 <u>Release of Pre-Effective Time Claims</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) Except (i) as provided in <u>Section 5.1(b)</u>, (ii) as may be otherwise expressly provided in, or any rights or remedies arising pursuant to, this Agreement or in any Ancillary Agreement and (iii) for any matter for which any Party is entitled to indemnification pursuant to this <u>Article V</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. Effective as of the Effective Time, Resideo, for itself and each member of the Resideo Group, its Affiliates as of the Effective Time and, to the extent permitted by Law, all Persons who at any time prior to the Effective Time were directors, officers, agents or employees of any member of the Resideo Group (in their respective capacities as such), in each case, together with their respective heirs, executors, administrators, successors and assigns, does hereby remise, release and forever discharge ADI SpinCo and the other members of the ADI Group, their respective Affiliates as of the Effective Time and all Persons who at any time prior to the Effective Time were directors, officers, agents or employees of any member of the ADI Group (in their respective capacities as such), in each case, together with their respective heirs, executors, administrators, successors and assigns (collectively, the "<u>ADI Released Parties</u>"), from any and all Liabilities, whether at Law or in equity (including any right of contribution), whether arising under any Contract, by operation of Law or otherwise, in each case, 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 existed on or before the Distribution Date (such liabilities, the "<u>Resideo Released Liabilities</u>") and, except as set forth in clauses (i)-(iii) of this <u>Section 5.1(a)</u>, in any event shall not, and shall cause the other members of the Resideo Group not to, bring any Action against any ADI Released Party in respect of any Resideo Released Liabilities. Notwithstanding the foregoing, any Liability relating to, arising out of, or resulting from the fraud or willful misconduct of any directors, officers, agents or employees of any member of the ADI Group shall not be deemed a Resideo Released Liability for any purpose hereunder and nothing in this Agreement shall be deemed to limit Resideo, any member of the Resideo Group, or their respective Affiliates from commencing any Actions against any such Persons with respect thereto.

&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. Effective as of the Effective Time, ADI SpinCo, for itself and each member of the ADI Group, its Affiliates as of the Effective Time and, to the extent permitted by Law, all Persons who at any time prior to the Effective Time were directors, officers, agents or employees of any member of the ADI Group (in their respective capacities as such), in each case, together with their respective heirs, executors, administrators, successors and assigns, does hereby remise, release and forever discharge Resideo and the other members of the Resideo Group, their respective Affiliates as of the Effective Time and all Persons who at any time prior to the Effective Time were directors, officers, agents or employees of any member of the Resideo Group (in their respective capacities as such), in each case, together with their respective heirs, executors, administrators, successors and assigns (collectively, the "<u>Resideo Released Parties</u>"), from any and all Liabilities, whether at Law or in equity (including any right of contribution), whether arising under any Contract, by operation of Law or otherwise, in each case, 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 existed on or before the Distribution Date (such liabilities, the "<u>ADI Released Liabilities</u>") and, except as set forth in clauses (i)-(iii) of this <u>Section 5.1(a)</u>, in any event shall not, and shall cause the other members of the Resideo Group not to, bring any Action against any Resideo Released Party. Notwithstanding the foregoing, any Liability relating to, arising out of, or resulting from the fraud or willful misconduct of any directors, officers, agents or employees of any member of the Resideo Group shall not be deemed an ADI Released Liability for any purpose hereunder and nothing in this Agreement shall be deemed to limit ADI SpinCo, any member of the ADI Group, or their respective Affiliates from commencing any Actions against any such Persons with respect thereto.

&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) Nothing contained in this Agreement, including <u>Section 5.1(a)</u>, shall impair or otherwise affect any right of any Party and, as applicable, a member of such Party's Group, as well as their respective heirs, executors, administrators, successors and assigns, to enforce this Agreement, any Ancillary Agreement or any agreements, arrangements, commitments or understandings contemplated in this Agreement or in any Ancillary Agreement to continue in effect after the Effective Time. In addition, nothing contained in <u>Section 5.1(a)</u> shall release any Person from:

&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;(i) any Liability Assumed, Transferred or allocated to a Party or a member of such Party's Group pursuant to or as contemplated by, or any other Liability of any member of such Group under, this Agreement or any Ancillary Agreement, including (A) with respect to Resideo, any Resideo Retained Liability and (B) with respect to ADI SpinCo, any ADI Liability;

&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;(ii) any Liability provided for in or resulting from any other Contract or arrangement that is entered into after the Effective Time between any Party (or a member of such Party's or Parties' Group), on the one hand, and any other Party or Parties (or a member of such Party's or Parties' Group), on the other hand;

&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;(iii) any Liability with respect to any Continuing Arrangements or any intercompany liabilities set forth on <u>Schedule 2.4(c)</u>; and

&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;(iv) any Liability the release of which would result in a release of any Person other than the Persons released in <u>Section 5.1(a)</u>; <u>provided</u>, that the Parties agree not to bring any Action or permit any other member of their respective Group to bring any Action against a Person released in <u>Section 5.1(a)</u> with respect to such Liability.

In addition, nothing contained in <u>Section 5.1(a)</u> shall release: (i) Resideo from indemnifying any director, officer or employee of the ADI Group who was a director, officer or employee of Resideo or any other member of the Resideo Group prior to the Distribution Date, as the case may be, to the extent such director, officer or employee is or becomes a named defendant in any Action with respect to which he or she was entitled to such indemnification in accordance with the organizational documents of Resideo or the applicable member of the Resideo Group; it being understood that if the underlying obligation giving rise to such Action is an ADI Liability, ADI SpinCo shall indemnify Resideo for such Liability (including Resideo's costs to indemnify the director, officer or employee) in accordance with the provisions set forth in this <u>Article V</u>; and (ii) ADI SpinCo from indemnifying any director, officer or employee of the Resideo Group who was a director, officer or employee of ADI SpinCo or any other member of the ADI Group prior to the Distribution Date, as the case may be, to the extent such director, officer or employee is or becomes a named defendant in any Action with respect to which he or she was entitled to such indemnification in accordance with the organizational documents of ADI SpinCo or the applicable member of the ADI Group; it being understood that if the underlying obligation giving rise to such Action is a Resideo Retained Liability, Resideo shall indemnify ADI SpinCo for such Liability (including ADI SpinCo's costs to indemnify the director, officer or employee) in accordance with the provisions set forth in this <u>Article V</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) Following the Effective Time, to the extent a Party has released claims on behalf of another Person pursuant to <u>Section 5.1</u> and such other Person initiates any Action with respect to claims released by this <u>Section 5.1</u>, the Party with which such Person is associated shall be responsible for the fees and expenses of counsel of the other Party (or the members of such Party's Group, as applicable) and such other Party shall be indemnified for all Liabilities incurred in connection with such Action in accordance with the provisions set forth in this <u>Article V</u>.

Section 5.2 <u>Indemnification by Resideo</u>. In addition to any other provisions of this Agreement or any Ancillary Agreement requiring indemnification and except as otherwise specifically set forth in any provision of this Agreement or of any Ancillary Agreement, following the Effective Time, Resideo shall, and shall cause the other members of the Resideo Group to, indemnify, defend and hold harmless the ADI Indemnitees from and against any and all Indemnifiable Losses of the ADI Indemnitees to the extent relating to, arising out of, by reason of or otherwise in connection with (a) the Resideo Retained Liabilities, including the failure of any member of the Resideo Group or any other Person to pay, perform or otherwise discharge any Resideo Retained Liability in accordance with its respective terms, whether arising prior to, at or after the Effective Time, (b) any Resideo Retained Asset or the Resideo Retained Business, whether arising prior to, at or after the Effective Time, or (c) any breach by Resideo or any other member of the Resideo Group of any provision of this Agreement or any Ancillary Agreement unless such Ancillary Agreement expressly provides for separate indemnification therein, in which case any such indemnification claims shall be made thereunder.

Section 5.3 <u>Indemnification by ADI SpinCo</u>. In addition to any other provisions of this Agreement or any Ancillary Agreement requiring indemnification and except as otherwise specifically set forth in any provision of this Agreement or of any Ancillary Agreement, following the Effective Time, ADI SpinCo shall, and shall cause the other members of the ADI Group to, indemnify, defend and hold harmless the Resideo Indemnitees from and against any and all Indemnifiable Losses of the Resideo Indemnitees to the extent relating to, arising out of, by reason of or otherwise in connection with (a) the ADI Liabilities, including the failure of any member of the ADI Group or any other Person to pay, perform or otherwise discharge any ADI Liability in accordance with its respective terms, whether arising prior to, at or after the Effective Time, (b) any ADI Asset or the ADI Business or any other business of the ADI Group, whether arising prior to, at or after the Effective Time, or (c) any breach by ADI SpinCo or any other member of the ADI Group of any provision of this Agreement or any Ancillary Agreement unless such Ancillary Agreement expressly provides for separate indemnification therein, in which case any such indemnification claims shall be made thereunder.

Section 5.4 <u>Procedures for Indemnification</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) Other than with respect to Third Party Claims, which shall be governed by <u>Section 5.4(b)</u>, each Resideo Indemnitee and ADI Indemnitee (each, an "<u>Indemnitee</u>") shall notify in writing, with respect to any matter that such Indemnitee has determined has given or could give rise to a right of indemnification under this Agreement or any Ancillary Agreement (unless such Ancillary Agreement expressly provides for separate indemnification therein, in which case any such indemnification claims shall be made thereunder), the Party which is or may be required pursuant to this <u>Article V</u> or pursuant to any Ancillary Agreement to make such indemnification (the "<u>Indemnifying Party</u>"), within forty-five (45) days of such determination, stating in such written notice the amount of the Indemnifiable Loss claimed, if known, and, to the extent practicable, the method of computation thereof, and referring to the provisions of this Agreement or such Ancillary Agreement in respect of which such right of indemnification is claimed by such Indemnitee or arises; <u>provided</u>, <u>however</u>, that the failure to provide such written notice shall not release the Indemnifying Party from any of its obligations except and solely to the extent the Indemnifying Party shall have been actually materially prejudiced as a result of such failure. The Indemnifying Party will have a period of forty-five (45) days after receipt of a notice under this <u>Section 5.4(a)</u> within which to respond thereto. If the Indemnifying Party fails to respond within such period, the Liability specified in such notice from the Indemnitee shall be deemed rejected by the Indemnifying Party and the disputed matter shall be resolved in accordance with <u>Article VII</u>. If such Indemnifying Party responds within such period and rejects such claim in whole or in part, the disputed matter shall be resolved in accordance with <u>Article VII</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) If a claim or demand is made against an Indemnitee by any Person who is not a Party (or otherwise a member of its Group) to this Agreement or any Ancillary Agreement (a "<u>Third Party Claim</u>") as to which such Indemnitee is or may be entitled to indemnification pursuant to this Agreement or any Ancillary Agreement (unless such Ancillary Agreement expressly provides for separate indemnification therein, in which case any such indemnification claims shall be made thereunder), such Indemnitee shall notify the Indemnifying Party in writing, and in reasonable detail, of the Third Party Claim promptly (and in any event within forty-five (45) days) after the receipt of notice by such Indemnitee of the Third Party Claim or after the Indemnitee has determined such claim has given or could give rise to a right of indemnification under this Agreement or any Ancillary Agreement (unless such Ancillary Agreement expressly provides for separate indemnification therein, in which case any such indemnification claims shall be made thereunder), but in no event after two (2) Business Days prior to the final date of the applicable response period in respect of such Third Party Claim; <u>provided</u>, <u>however</u>, that the failure to provide notice of any such Third Party Claim pursuant to this sentence shall not release the Indemnifying Party from any of its obligations except and solely to the extent the Indemnifying Party shall have been actually materially prejudiced as a result of such failure. Thereafter, the Indemnitee shall deliver to the Indemnifying Party, promptly (and in any event within five (5) Business Days) after the Indemnitee's receipt thereof, copies of all notices and documents (including court papers) received by the Indemnitee relating to the Third Party Claim, and the proviso to the immediately preceding sentence shall apply, *mutatis mutandis*, to this sentence. For all purposes of this <u>Section 5.4(b)</u>, each Party shall be deemed to have notice of the matters set forth on <u>Schedule 5.6(a)</u>, <u>Schedule 5.6(b)</u>, and <u>Schedule 5.6(c</u>) for which it is an Indemnifying 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;(c) Other than in the case of (i) Taxes addressed in the Tax Matters Agreement, which shall be addressed as set forth therein, or as otherwise set forth in this Agreement or any other Ancillary Agreement, or (ii) any Third Party Claim set forth on <u>Schedule 5.6(a)</u>, <u>Schedule 5.6(b)</u>, and <u>Schedule 5.6(c)</u>, the Indemnifying Party shall be entitled, if it so chooses, to assume the defense thereof, and if it does not assume the defense of such Third Party Claim, to participate in the defense of any Third Party Claim in accordance with the terms of <u>Section 5.5</u> at such Indemnifying Party's own cost and expense and by such Indemnifying Party's own counsel, that is (if the Indemnifying Party assumes such defense) reasonably acceptable to the Indemnitee, within thirty (30) days of the receipt of an indemnification notice from such Indemnitee (it being understood that if the Indemnifying Party does not elect to assume the defense within such thirty (30) day period, it shall no longer have the right to assume the defense with respect to such Third Party Claim); <u>provided</u>, <u>however</u>, that the Indemnifying Party shall not be entitled to assume the defense of any Third Party Claim to the extent such Third Party Claim (x) is an Action by a Governmental Entity, (y) involves an allegation of a criminal violation or (z) seeks injunctive relief against the Indemnitee other than injunctive relief that is ancillary to the primary relief sought and not reasonably likely to be material to the Indemnitee. In connection with the Indemnifying Party's defense of a Third Party Claim, such Indemnitee shall have the right to employ separate counsel and to reasonably participate in (but not control) the defense, compromise or settlement thereof, at its own expense and, in any event, shall reasonably cooperate with the Indemnifying Party in such defense and make available to the Indemnifying Party, at the Indemnifying Party's expense, all witnesses, pertinent Information, materials and information in such Indemnitee's possession or under such Indemnitee's control relating thereto as are reasonably required by the Indemnifying Party; <u>provided</u>, <u>however</u>, that in the event of a conflict of interest between the Indemnifying Party and the applicable Indemnitee(s) or in respect of any matter for which the Indemnifying Party is not entitled to assume the defense as set forth herein, such Indemnitee(s) shall be entitled to retain, at the Indemnifying Party's expense, separate counsel with respect to such matter. The Indemnifying Party shall have the right to compromise or settle a Third Party Claim the defense of which it shall have assumed pursuant to this <u>Section 5.4(c)</u> and any such settlement or compromise made or caused to be made of a Third Party Claim in accordance with this <u>Article V</u> shall be binding on the Indemnitee, in the same manner as if a final judgment or decree had been entered by a court of competent jurisdiction in the amount of such settlement or compromise. Notwithstanding the foregoing sentence, the Indemnifying Party shall not settle any such Third Party Claim without the written consent of the Indemnitee unless such settlement (A) completely and unconditionally releases the Indemnitee in connection with such matter, (B) provides relief consisting solely of money damages borne by the Indemnifying Party and (C) does not involve any admission by the Indemnitee of any wrongdoing or violation of Law.

&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) If an Indemnifying Party fails for any reason to assume responsibility for defending a Third Party Claim within the period specified in this <u>Section 5.4</u>, such Indemnitee may defend such Third Party Claim at the cost and expense of the Indemnifying Party to the extent the Indemnifying Party is determined to be required to provide indemnification hereunder in respect thereof. If an Indemnifying Party has failed to assume the defense of the Third Party Claim within the time period specified in clause (c) above, subject to compliance with the terms set forth in <u>Section 5.5</u> and the terms set forth in the immediately preceding sentence and, as applicable, any relevant Ancillary Agreement, it shall not be a defense to any obligation to pay any amount in respect of such Third Party Claim that the Indemnifying Party was not consulted in the defense thereof, that such Indemnifying Party's views or opinions as to the conduct of such defense were not accepted or adopted, that such Indemnifying Party does not approve of the quality or manner of the defense thereof or that such Third Party Claim was incurred by reason of a settlement rather than by a judgment or other determination of liability. No Indemnitee may settle, compromise or admit liability with respect to any Third Party Claim without the consent of the Indemnifying Party, which consent shall not be unreasonably withheld, conditioned or delayed.

&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) Except as otherwise set forth herein, or to the extent set forth in any Ancillary Agreement, absent fraud or willful misconduct by an Indemnifying Party, the indemnification provisions of this <u>Article V</u> shall be the sole and exclusive remedy of an Indemnitee for any monetary or compensatory damages or Indemnifiable Losses resulting from any breach of this Agreement or any Ancillary Agreement or any other matter subject to indemnification under this <u>Article V</u>, and each Indemnitee expressly waives and relinquishes any and all rights, claims or remedies such Person may have with respect to the foregoing other than under this <u>Article V</u> against any Indemnifying Party, without limitation (for the avoidance of doubt) for any rights, claims or remedies under other provisions of this Agreement or the Ancillary Agreements. For the avoidance of doubt, all disputes in respect of this <u>Article V</u> shall be resolved in accordance with <u>Article VII</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;(f) Each Party hereby covenants and agrees that none of it or its Subsidiaries or any Person claiming through it shall bring suit or otherwise assert any claim against any Indemnitee, or assert a defense against any claim asserted by any Indemnitee, before any court, arbitrator, mediator or administrative agency anywhere in the world, alleging that: (a) the Assumption or retention of any ADI Liabilities by the ADI Group pursuant to the terms and conditions set forth in this Agreement and the Ancillary Agreements is void or unenforceable for any reason; (b) the Assumption or retention of any Resideo Retained Liabilities by the Resideo Group pursuant to the terms and conditions set forth in this Agreement and the Ancillary Agreements is void or unenforceable for any reason, or (c) the provisions of this <u>Article V</u> are void or unenforceable for any reason.

&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) Notwithstanding the foregoing, to the extent (i) any claim for indemnification is made pursuant to an Ancillary Agreement and such Ancillary Agreement provides procedures for indemnification that differ from the provisions set forth in this <u>Section 5.4</u>, the terms of such Ancillary Agreement will govern, and (ii) any claim for indemnification is made pursuant to any other provisions of this Agreement or any Ancillary Agreement and such provision or Ancillary Agreement is silent on procedures for indemnification, the terms of this <u>Section 5.4</u> shall apply *mutatis mutandis* in respect of such indemnification matters.

&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) The Parties acknowledge that Liabilities for Actions or other matters subject to indemnification pursuant to this <u>Article V</u> (regardless of the parties to the Actions or nature of such other matters) may be partly the responsibility and/or Liability of the Resideo Group and partly the responsibility and/or Liability of the ADI Group, as further set forth in this Agreement or the Ancillary Agreements. If the Parties cannot agree on the allocation of any such responsibilities or Liabilities, they shall resolve the matter pursuant to the procedures set forth in <u>Article VII</u>.

Section 5.5 <u>Cooperation in Defense and Settlement</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) Other than as set forth in <u>Section 5.6</u> with respect to any Third Party Claim addressed therein, with respect to any Third Party Claim that implicates both Parties in any material respect due to the allocation of Liabilities, responsibilities for management of defense and related indemnities pursuant to this Agreement or any of the Ancillary Agreements, the Parties agree to use reasonable best efforts to cooperate fully and maintain a joint defense (in a manner that, to the extent reasonably practicable, will preserve for all Parties any Privilege with respect thereto). The Party that is not responsible for managing the defense of any such Third Party Claim shall, upon reasonable request, be consulted with respect to significant matters relating thereto and may, if necessary or helpful, retain counsel to assist in the defense of such claims. Notwithstanding the foregoing, nothing in this <u>Section 5.5(a)</u> shall derogate from any Party's rights to control the defense of any Action in accordance with <u>Section 5.4</u> or as set forth in an Ancillary 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) Each of Resideo and ADI SpinCo agrees that at all times from and after the Distribution, if an Action is commenced by a third party naming two (2) or more Parties (or any member of such Parties' respective Groups) as defendants and with respect to which one or more named Parties (or any member of such Party's respective Group) is a nominal defendant or such Action is otherwise not a Liability allocated to such named Party under this Agreement or any Ancillary Agreement, then the other Party or Parties shall use reasonable best efforts at its own expense to cause such nominal defendant to be removed from such Action, as soon as reasonably practicable.

Section 5.6 <u>Management of Existing Actions.</u> This <u>Section 5.6</u> shall govern the management and direction of pending Third Party Claims set forth in <u>Schedule 5.6(a)</u>, <u>Schedule 5.6(b)</u> or <u>Schedule 5.6(c)</u>, in which members of the Resideo Group or ADI Group are named as parties, but shall not alter the allocation of Liabilities which are deemed to be Resideo Retained Liabilities or ADI Liabilities, as applicable, unless otherwise expressly set forth in this <u>Section 5.6</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) From and after the Distribution, the Resideo Group shall control and direct the defense or prosecution of any Third Party Claims set forth on <u>Schedule 5.6(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;(b) From and after the Distribution, the ADI Group shall control and direct the defense or prosecution of any Third Party Claims set forth on <u>Schedule 5.6(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;(c) From and after the Distribution, with respect to the Third Party Claims set forth on <u>Schedule 5.6(c)</u> ("<u>Joint Actions</u>"), the Party specified on such <u>Schedule 5.6(c)</u> shall be solely responsible for controlling and directing the defense and prosecution of any such Third Party Claim (the "<u>Managing Party</u>") and the Parties shall, and shall cause members of their Group to, cooperate in good faith and take all reasonable actions to permit the applicable Managing Party to control and direct each such Third Party Claim. The Party who hereunder is, or whose member of its Group is, the Managing Party, shall consult with the other Party (the "<u>Non-Managing Party</u>") from time to time with respect to the Joint Actions; provided that the Managing Party shall have sole authority to select counsel for any Joint Action and be reimbursed for reasonable fees and expenses of such counsel in accordance with the allocation of Liability for such Joint Action as set forth in this Agreement or any Ancillary Agreement, as applicable, and the Non-Managing Party, if it elects to retain its own counsel, shall do so solely at its own expense.

&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) To the maximum extent permitted by applicable Law, the rights to recovery of each Party's Subsidiaries in respect of any past, present or future Third Party Claim is hereby delegated to such Party. It is the intent of the Parties that the foregoing delegation shall satisfy any Law requiring such delegation to be effected pursuant to a power of attorney or similar instrument. The Parties and their respective Subsidiaries shall execute such further instruments or documents as may be necessary to effect such delegation.

&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) With respect to any Third Party Claim managed pursuant to this <u>Section 5.6</u> that involves both a Resideo Retained Liability and an ADI Liability, no Party managing such Third Party Claim pursuant to this <u>Section 5.6</u> shall consent to entry of any judgment or enter into any settlement of any such Third Party Claim without the prior written consent of the other Party (not to be unreasonably withheld, conditioned or delayed), provided no such consent shall be required if the judgment or settlement (i) contains no finding or admission of any violation of Law or any violation of the rights of any Person, (ii) involves only monetary relief which the Managing Party has agreed to pay and (iii) includes a full and unconditional release of the Non-Managing Party and other members of its Group.

Section 5.7 <u>Indemnification Payments</u>. Subject to <u>Section 9.11(b)</u>, indemnification required by this <u>Article V</u> shall be made by periodic payments of the amount of Indemnifiable Losses in a timely fashion during the course of the investigation or defense, as and when bills are received or an Indemnifiable Loss incurred; provided, that, any Party receiving any such amounts undertakes to promptly reimburse the other Party in respect of such amounts to the extent it is finally determined pursuant to the dispute resolution provisions set forth in Article VII of this Agreement that such amounts are not Indemnifiable Losses that are subject to indemnification hereunder.

Section 5.8 <u>Indemnification Obligations Net of Insurance Proceeds and Other Amounts</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) Any recovery by any Indemnitee for any Indemnifiable Loss subject to indemnification pursuant to this <u>Article V</u> shall be calculated (i) net of Insurance Proceeds actually received by such Indemnitee with respect to any Indemnifiable Loss and (ii) net of any proceeds actually received by such Indemnitee from any unaffiliated third party with respect to any such Liability corresponding to the Indemnifiable Loss ("<u>Third Party Proceeds</u>"). Accordingly, the amount which any Indemnifying Party is required to pay pursuant to this <u>Article V</u> to any Indemnitee pursuant to this <u>Article V</u> shall be reduced by any Insurance Proceeds or Third Party Proceeds theretofore actually recovered by or on behalf of the Indemnitee corresponding to the related Indemnifiable Loss. If an Indemnitee receives a payment required by this Agreement from an Indemnifying Party corresponding to any Indemnifiable Loss (an "<u>Indemnity Payment</u>") and subsequently receives Insurance Proceeds or Third Party Proceeds, then the Indemnitee shall pay to the Indemnifying Party an amount equal to the excess of the Indemnity Payment received over the amount of the Indemnity Payment that would have been due if the Insurance Proceeds or Third Party Proceeds (in each case, net of any documented out-of-pocket costs or expenses incurred in the collection thereof or taxes imposed with respect thereto) had been received, realized or recovered before the Indemnity Payment was made.

&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) Any Indemnity Payment shall be adjusted in accordance with <u>Section 5.4(d)</u> of the Tax Matters Agreement as necessary so that after making all payments corresponding to Taxes imposed on or attributable to such Indemnity Payment (but net of any Tax benefits resulting from the payment of such Taxes), the Indemnitee receives an amount equal to the sum it would have received had no such Taxes been imposed.

&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) The Parties hereby agree that an insurer or other third party that would otherwise be obligated to pay any amount shall not be relieved of the responsibility with respect thereto or have any subrogation rights with respect thereto by virtue of any provision contained in this Agreement or any Ancillary Agreement, and that no insurer or any other third party shall be entitled to a "windfall" (*e.g.*, a benefit they would not otherwise be entitled to receive, or the reduction or elimination of an insurance coverage obligation that they would otherwise have, in the absence of the indemnification or release provisions) by virtue of any provision contained in this Agreement or any Ancillary Agreement. Each Party shall, and shall cause its Subsidiaries to, use reasonable best efforts to collect or recover, or allow the Indemnifying Party to collect or recover, or cooperate with each other in collecting or recovering, any Insurance Proceeds or Third Party Proceeds that may be collectible or recoverable respecting the Liabilities for which indemnification may be available under this <u>Article V</u>. Notwithstanding the foregoing, an Indemnifying Party may not delay making any indemnification payment required under the terms of this Agreement, or otherwise satisfying any indemnification obligation, pending the outcome of any Actions to collect or recover Insurance Proceeds or Third Party Proceeds, and an Indemnitee need not attempt to collect any Insurance Proceeds or Third Party Proceeds prior to making a claim for indemnification or receiving any Indemnity Payment otherwise owed to it under this Agreement or any Ancillary Agreement.

Section 5.9 <u>Contribution</u>. If the indemnification provided for in this <u>Article V</u> or elsewhere in this Agreement or any Ancillary Agreement is unavailable for any reason to an Indemnitee (other than failure to provide notice with respect to any Third Party Claims in accordance with <u>Section 5.4(b)</u>) in respect of any Indemnifiable Loss, then the Indemnifying Party shall, in accordance with this <u>Section 5.9</u>, contribute to the Indemnifiable Losses incurred, paid or payable by such Indemnitee as a result of such Indemnifiable Loss in such proportion as is appropriate to reflect the relative fault of ADI SpinCo and each other member of the ADI Group, on the one hand, and Resideo and each other member of the Resideo Group, on the other hand, in connection with the circumstances which resulted in such Indemnifiable Loss, it being understood that with respect to any Indemnifiable Losses arising out of or related to information contained in the Distribution Disclosure Documents or other securities law filing, the relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact relates to information supplied by the ADI Business of a member of the ADI Group, on the one hand, or the Resideo Retained Business or a member of the Resideo Group, on the other hand.

Section 5.10 <u>Additional Matters; Survival of Indemnities; Coordination</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) The indemnity agreements contained in this <u>Article V</u> or elsewhere in this Agreement or any Ancillary Agreement shall remain operative and in full force and effect, regardless of (i) any investigation made by or on behalf of any Indemnitee; and (ii) the knowledge by the Indemnitee of Indemnifiable Losses for which it might be entitled to indemnification hereunder. The indemnity agreements contained in this <u>Article V</u> or elsewhere in this Agreement or any Ancillary Agreement shall survive the Distribution.

&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) The rights and obligations of any member of the Resideo Group or any member of the ADI Group, in each case, under this <u>Article V</u> or elsewhere in this Agreement or any Ancillary Agreement shall survive (i) the sale or other Transfer by any Party or its Affiliates of any Assets or businesses or the assignment by it of any Liabilities and (ii) any merger, consolidation, business combination, restructuring, recapitalization, reorganization or similar transaction involving either Party or any of its Subsidiaries.

**Article VI<u><br>PRESERVATION OF RECORDS; ACCESS TO INFORMATION;CONFIDENTIALITY; PRIVILEGE</u>**

Section 6.1 <u>Preservation of Corporate Records</u>. Except as otherwise required by applicable Law or agreed in writing signed by the Parties, or as otherwise provided in any Ancillary Agreement, with regard to any Information referenced in <u>Section 6.2</u> or otherwise in a Party's possession, each Party shall use its reasonable best efforts, at such Party's sole cost and expense, to retain such Information, until the latest of, as applicable, (i) the date on which such Information is no longer required to be retained pursuant to the applicable record retention policy of Resideo or such other member of the Resideo Group, respectively, as in effect immediately prior to the Distribution, including pursuant to any "litigation hold" issued by Resideo or such other member of the Resideo Group prior to the Distribution, (ii) the concluding date of any period as may be required by any applicable Law or Data Protection Requirement, (iii) the concluding date of any period during which such Information relates to a pending or threatened Action which is known to the members of the Resideo Group or the ADI Group, as applicable, in possession of such Information at the time any retention obligation with regard to such Information would otherwise expire, and (iv) the concluding date of any period during which the destruction of such Information could interfere with a pending or threatened investigation by a Governmental Entity which is known to the members of the Resideo Group or the ADI Group, as applicable, in possession of such Information at the time any retention obligation with regard to such Information would otherwise expire; <u>provided</u>, that with respect to any pending or threatened Action arising after the Distribution, clause (iii) of this sentence applies only to the extent that whichever member of the Resideo Group or the ADI Group, as applicable, is in possession of such Information has been notified in writing pursuant to a "litigation hold" by the other Party of the relevant pending or threatened Action. The Parties agree that upon written request from the other that certain ADI Information, Resideo Retained Information, or other Information relating to the transactions contemplated hereby be retained in connection with an Action, the Parties shall use reasonable efforts to preserve and not to destroy or dispose of such Information without the consent of the requesting Party.

Section 6.2 <u>Access to Information</u>. Other than in circumstances in which indemnification is sought pursuant to <u>Article V</u> or elsewhere in this Agreement or any Ancillary Agreement (in which event the provisions of such <u>Article V</u> or such other provisions of this Agreement or any such Ancillary Agreement shall govern) or for matters related to provision of Tax Records (in which event the provisions of the Tax Matters Agreement shall govern) and subject to appropriate restrictions for Privileged Information or Confidential Information as agreed to amongst 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;(a) After the Distribution, and subject to compliance with the terms of the Ancillary Agreements, upon the prior written reasonable and bona fide request by, and at the expense of, ADI SpinCo for specific and identified Resideo Retained Information:

&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;(i) that (x) relates to ADI SpinCo or the ADI Business, as the case may be, prior to the Distribution or (y) is necessary for ADI SpinCo to comply with the terms of, or otherwise perform under, this Agreement or any Ancillary Agreement to which Resideo or ADI SpinCo are parties, Resideo shall provide (or cause to be provided), as soon as reasonably practicable following the receipt of such request, appropriate copies of such Information (or the originals thereof if ADI SpinCo has a reasonable need for such originals) in the possession or control of Resideo or any other member of the Resideo Group, but only to the extent such items so relate and are not already in the possession or control of ADI SpinCo or other members of the ADI Group; <u>provided</u>, that to the extent any originals are delivered to ADI SpinCo pursuant to this Agreement or the Ancillary Agreements, ADI SpinCo shall, at its own expense, return them to Resideo within a reasonable time after the need to retain such originals has ceased; <u>provided</u>, <u>further</u>, that such obligation to provide any requested Information shall terminate and be of no further force and effect on the date that is the second anniversary of the Distribution Date; <u>provided</u>, <u>further</u>, that in the event that Resideo, in its sole discretion, determines that any such access or the provision of any such Information would violate any Law or Contract with a third party or could reasonably result in the waiver of any Privilege, Resideo shall not be obligated to provide such Information requested by ADI SpinCo; <u>provided</u>, <u>however</u>, that Resideo will reasonably cooperate with ADI SpinCo to provide such Information in a manner that would not result in violation of such Law or Contract or the loss or waiver of such Privilege.

&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;(ii) that (x) is required by ADI SpinCo with regard to reasonable compliance with reporting, disclosure, filing or other requirements imposed on ADI SpinCo (including under applicable securities laws) by a Governmental Entity having jurisdiction over ADI SpinCo, or (y) is for use in any other judicial, regulatory, administrative or other proceeding or in order to satisfy audit, accounting, claims, regulatory, litigation, Action or other similar requirements, as applicable, Resideo shall provide (or cause to be provided), as soon as reasonably practicable following the receipt of such request, appropriate copies of such Information (or the originals thereof if ADI SpinCo has a reasonable need for such originals) in the possession or control of Resideo or any other member of the Resideo Group, but only to the extent such items so relate and are not already in the possession or control of ADI SpinCo or other members of the ADI Group; <u>provided</u>, <u>that</u> to the extent any originals are delivered to ADI SpinCo pursuant to this Agreement or the Ancillary Agreements, ADI SpinCo shall, at its own expense, return them to Resideo within a reasonable time after the need to retain such originals has ceased; <u>provided</u>, <u>further</u>, that in the event that Resideo, in its sole discretion, determines that any such access or the provision of any such Information would violate any Law or Contract with a third party or waive any Privilege, Resideo shall not be obligated to provide such Information requested by ADI SpinCo; <u>provided</u>, <u>however</u>, that Resideo will reasonably cooperate with ADI SpinCo to provide such Information in a manner that would not result in violation of such Law or Contract or the loss or waiver of such Privilege.

&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) After the Distribution, and subject to compliance with the terms of the Ancillary Agreements, upon the prior written reasonable and bona fide request by, and at the expense of, Resideo for specific and identified ADI Information:

&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;(i) that (x) relates to matters prior to the Distribution or (y) is necessary for Resideo to comply with the terms of, or otherwise perform under, this Agreement or any Ancillary Agreement to which Resideo or ADI SpinCo are parties, ADI SpinCo shall provide (or cause to be provided), as soon as reasonably practicable following the receipt of such request, appropriate copies of such Information (or the originals thereof if Resideo has a reasonable need for such originals) in the possession or control of ADI SpinCo or any other member of the ADI Group, but only to the extent such items so relate and are not already in the possession or control of Resideo or other members of the Resideo Group; <u>provided</u>, that to the extent any originals are delivered to Resideo pursuant to this Agreement or the Ancillary Agreements, Resideo shall, at its own expense, return them to ADI SpinCo within a reasonable time after the need to retain such originals has ceased; <u>provided</u>, <u>further</u>, that such obligation to provide any requested Information shall terminate and be of no further force and effect on the date that is the second anniversary of the Distribution Date; <u>provided</u>, <u>further</u>, that in the event that ADI SpinCo, in its sole discretion, determines that any such access or the provision of any such Information would violate any Law or Contract with a third party or could reasonably result in the waiver of any Privilege, ADI SpinCo shall not be obligated to provide such Information requested by Resideo; <u>provided</u>, <u>however</u>, that ADI SpinCo will reasonably cooperate with Resideo to provide such Information in a manner that would not result in violation of such Law or Contract or the loss or waiver of such Privilege.

&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;(ii) that (x) is required by Resideo with regard to reasonable compliance with reporting, disclosure, filing or other requirements imposed on Resideo (including under applicable securities laws) by a Governmental Entity having jurisdiction over Resideo, or (y) is for use in any other judicial, regulatory, administrative or other proceeding or in order to satisfy audit, accounting, claims, regulatory, litigation, Action or other similar requirements, as applicable, ADI SpinCo shall provide (or cause to be provided), as soon as reasonably practicable following the receipt of such request, appropriate copies of such Information (or the originals thereof if Resideo has a reasonable need for such originals) in the possession or control of ADI SpinCo or any other member of the ADI Group, but only to the extent such items so relate and are not already in the possession or control of Resideo or other members of the Resideo Group; <u>provided</u>, that to the extent any originals are delivered to Resideo pursuant to this Agreement or the Ancillary Agreements, Resideo shall, at its own expense, return them to ADI SpinCo within a reasonable time after the need to retain such originals has ceased; <u>provided</u>, <u>further</u>, that in the event that ADI SpinCo, in its sole discretion, determines that any such access or the provision of any such Information would violate any Law or Contract with a third party or waive any Privilege, ADI SpinCo shall not be obligated to provide such Information requested by Resideo; <u>provided</u>, <u>however</u>, that ADI SpinCo will reasonably cooperate with Resideo to provide such Information in a manner that would not result in violation of such Law or Contract or the loss or waiver of such Privilege.

&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) Each of Resideo and ADI SpinCo shall inform their respective officers, employees, agents, consultants, advisors, authorized accountants, counsel and other designated representatives who have had or have access to the other Party's Confidential Information or other information provided pursuant to this <u>Article VI</u> of their obligation to hold such information confidential in accordance with the provisions 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;(d) Without limiting the generality of the foregoing, until the end of the first full fiscal year for Resideo occurring after the Distribution Date (and for a reasonable period of time afterwards or as required by Law for Resideo to prepare consolidated financial statements or complete a financial statement audit for any period during which the financial results of the ADI Group were consolidated with those of Resideo), ADI SpinCo shall use its reasonable best efforts to cooperate with Resideo so as to enable Resideo to meet its timetable for dissemination of its financial statements pursuant to applicable Law and to enable Resideo's auditors to timely complete their annual audit and quarterly reviews of financial statements, including by providing such access to ADI Information as may be appropriate and necessary to that end. As part of such efforts, to the extent reasonably necessary for the preparation of financial statements or completing an audit or review of financial statements or an audit of internal control over financial reporting, (i) ADI SpinCo shall authorize and direct its auditors to make available to Resideo's auditors, within a reasonable time prior to the date of Resideo's auditors' opinion or review report, both (x) the personnel who performed or will perform the annual audits and quarterly reviews of ADI SpinCo and (y) work papers related to such annual audits and quarterly reviews, to enable Resideo's auditors to perform any procedures they consider reasonably necessary to take responsibility for the work of ADI SpinCo's auditors as it relates to Resideo's auditors' opinion or report and (ii) until such audits are complete, ADI SpinCo shall provide reasonable access during normal business hours for Resideo's internal auditors, counsel and other designated representatives to (x) the premises of ADI SpinCo and its Subsidiaries and all Information (and duplicating rights) within the knowledge, possession or control of ADI SpinCo and its Subsidiaries and (y) the officers and employees of ADI SpinCo and its Subsidiaries, so that Resideo may conduct reasonable audits relating to the financial statements provided by ADI SpinCo and its Subsidiaries; <u>provided</u>, <u>however</u>, that such access shall not be unreasonably disruptive to the business and affairs of the ADI 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;(e) Without limiting the generality of the foregoing, until the end of the first full fiscal year for ADI SpinCo occurring after the Distribution Date (and for a reasonable period of time afterwards or as required by Law), Resideo shall use its reasonable best efforts cooperate with ADI SpinCo so as to enable ADI SpinCo to meet its timetable for dissemination of its financial statements pursuant to applicable Law and to enable ADI SpinCo's auditors to timely complete their annual audit and quarterly reviews of financial statements, including by providing such access to Resideo Retained Information as may be appropriate or necessary to that end. As part of such efforts, to the extent reasonably necessary for the preparation of financial statements or completing an audit or review of financial statements or an audit of internal control over financial reporting, (i) Resideo shall authorize and direct its auditors to make available to ADI SpinCo's auditors, within a reasonable time prior to the date of ADI SpinCo's auditors' opinion or review report, both (x) the personnel who performed or will perform the annual audits and quarterly reviews of Resideo and (y) work papers related to such annual audits and quarterly reviews, to enable ADI SpinCo's auditors to perform any procedures they consider reasonably necessary to take responsibility for the work of Resideo's auditors as it relates to ADI SpinCo's auditors' opinion or report and (ii) until such audits are complete, Resideo shall provide reasonable access during normal business hours for ADI SpinCo's internal auditors, counsel and other designated representatives to (x) the premises of Resideo and its Subsidiaries and all Information (and duplicating rights) within the knowledge, possession or control of Resideo and its Subsidiaries and (y) the officers and employees of Resideo and its Subsidiaries, so that ADI SpinCo may conduct reasonable audits relating to the financial statements provided by Resideo and its Subsidiaries; <u>provided</u>, <u>however</u>, that such access shall not be unreasonably disruptive to the business and affairs of the Resideo 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;(f) In order to enable the principal executive officer(s) and principal financial officer(s) (as such terms are defined in the rules and regulations of the Commission) of Resideo to make any certifications required of them under Section 302 or 906 of the Sarbanes-Oxley Act of 2002, ADI SpinCo shall, within a reasonable period of time following a request from Resideo in anticipation of filing such reports, cause its principal executive officer(s) and principal financial officer(s) to provide Resideo with certifications of such officers in support of the certifications of Resideo's principal executive officer(s) and principal financial officer(s) required under Section 302 or 906 of the Sarbanes-Oxley Act of 2002 with respect to Resideo's Quarterly Report on Form 10-Q filed with respect to the fiscal quarter during which the Distribution Date occurs (unless such quarter is the fourth fiscal quarter), each subsequent fiscal quarter through the third fiscal quarter of the year in which the Distribution Date occurs and Resideo's Annual Report on Form 10-K filed with respect to the fiscal year during which the Distribution Date occurs. Such certifications shall be provided in substantially the same form and manner as such ADI SpinCo officers provided prior to the Distribution (reflecting any changes in certifications necessitated by the Distribution or any other transactions related thereto) or as otherwise agreed upon between Resideo and ADI SpinCo.

Section 6.3 <u>Witness Services</u>. At all times from and after the Distribution, each of Resideo and ADI SpinCo shall use its reasonable best efforts to make available to the other, upon reasonable written request, its and its Subsidiaries' officers, directors, employees and agents (taking into account the business demands of such individuals) as witnesses to the extent that (i) such Persons may reasonably be required to testify in connection with the prosecution or defense of any Action in which the requesting Party may from time to time be involved (except for claims, demands or Actions in which one or more members of one Group is adverse to one or more members of the other Group) and (ii) there is no conflict in the Action between the requesting Party and the other Party. A Party providing a witness to the other Party under this <u>Section 6.3</u> shall be entitled to receive from the recipient of such witness services, upon the presentation of invoices therefor, payments for documented out-of-pocket expenses, including travel and lodging costs and expenses (but such costs and expenses shall not include the costs of salaries and benefits of employees who are witnesses or any pro rata portion of overhead or other costs of employing such employees which would have been incurred by such employees' employer regardless of the employees' service as witnesses), as may be reasonably incurred as part of the provision of such services and properly paid under applicable Law.

Section 6.4 <u>Reimbursement; Other Matters</u>. Except to the extent otherwise contemplated by this Agreement or any Ancillary Agreement, a Party providing Information or access to Information to the other Party under this <u>Article VI</u> shall be entitled to receive from the recipient, upon the presentation of invoices therefor, payments for such amounts, relating to supplies, disbursements and other documented out-of-pocket expenses (which shall not include the costs of salaries and benefits of employees of such Party or any pro rata portion of overhead or other costs of employing such employees which would have been incurred by such employees' employer regardless of the employees' service with respect to the foregoing), as may be reasonably incurred in providing such Information or access to such Information.

Section 6.5 <u>Confidentiality</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) From and after the Distribution until three (3) year anniversary following the Distribution, except as otherwise provided in the Ancillary Agreements, each of Resideo and ADI SpinCo shall hold, and shall cause their respective Affiliates and their officers, employees, agents, consultants and advisors to hold, in strict confidence (and not to disclose or release or, except as otherwise permitted by this Agreement or any Ancillary Agreement, use, without the prior written consent of the Party to whom the Confidential Information relates (which may be withheld in such Party's sole and absolute discretion, except where disclosure is required by applicable Law)), any and all Confidential Information concerning or belonging to the other Party or its Affiliates; <u>provided</u>, that each Party may disclose, or may permit disclosure of, Confidential Information (i) to its respective employees, officers, directors, auditors, attorneys, financial advisors, lenders, bankers, counsel and other consultants and advisors who have a need to know such Information for auditing or other bona fide business purposes and who are informed of the obligation to hold such Information confidential and in respect of whose failure to comply with such obligations, the applicable Party will be responsible, (ii) if any Party or any of its respective Subsidiaries is required or compelled to disclose any such Confidential Information by judicial or administrative process or by other requirements of Law or stock exchange rule or is advised by outside counsel in connection with a proceeding brought by a Governmental Entity that it is advisable to do so, (iii) as required in connection with any legal or other proceeding by one Party against the other Party or in respect of claims by one Party against the other Party brought in a proceeding, (iv) as necessary in order to permit a Party to prepare and disclose its financial statements in connection with any regulatory filings or Tax Returns, (v) as necessary for a Party to enforce its rights or perform its obligations under this Agreement or an Ancillary Agreement, or (vi) to other Persons in connection with their evaluation of, and negotiating and consummating, a potential strategic or investment transaction, to the extent reasonably necessary in connection therewith, provided that an appropriate and customary confidentiality agreement has been entered into with the Person receiving such Confidential Information. Notwithstanding the foregoing, in the event that any demand or request for disclosure of Confidential Information is made by a third party pursuant to <u>clauses (ii</u>) or <u>(iii)</u> above, each Party, as applicable, shall promptly notify (to the extent permissible by Law) the Party to whom the Confidential Information relates of the existence of such request, demand or disclosure requirement and shall provide such affected Party a reasonable opportunity to seek an appropriate protective order or other remedy, which, at the expense of the affected Party, such Party will cooperate in obtaining to the extent legally permissible and commercially practicable. In the event that such appropriate protective order or other remedy is not obtained, the Party which faces the disclosure requirement shall furnish only that portion of the Confidential Information that is required to be disclosed and shall take commercially reasonable steps, at the other Party's expense, to ensure that confidential treatment is accorded such Confidential Information.

&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) Each Party acknowledges that it and the other members of its Group may have in its or their possession confidential or proprietary Information of third parties that was received under confidentiality or non-disclosure agreements with such third party while such Party or members of its Group were Subsidiaries of Resideo. Each Party shall comply, and shall cause the other members of its Group to comply, and shall cause its and their respective officers, employees, agents, consultants and advisors to comply, with all terms and conditions of any such third-party agreements entered into prior to the Distribution, with respect to any confidential and proprietary Information of third parties to which it or any other member of its Group has had access.

&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) Notwithstanding anything to the contrary set forth herein, (i) the Parties shall be deemed to have satisfied their obligations hereunder with respect to keeping Confidential Information confidential if they exercise at least the same degree of care that applies to Resideo's confidential and proprietary information pursuant to policies in effect as of the Effective Time and (ii) confidentiality obligations provided for in any Contract between each Party or its Subsidiaries and their respective employees that survive the consummation of the Distribution on the terms set forth herein shall remain in full force and effect. Notwithstanding anything to the contrary set forth herein, Confidential Information of any Party in the possession of and used by any other Party as of the Effective Time may continue to be used by such Party in possession of the Confidential Information in and only in the operation of the ADI Business (in the case of the ADI Group) or the Resideo Retained Business (in the case of the Resideo Group); <u>provided</u>, that such Confidential Information may only be used by such Party and its officers, employees, agents, consultants and advisors in the specific manner and for the specific purposes for which it is used as of the Effective Time; and <u>provided</u>, <u>further</u>, that such Confidential Information may be used only so long as the Confidential Information is maintained in confidence and not disclosed in violation of <u>Section 6.5(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;(d) For the avoidance of doubt and notwithstanding any other provision of this <u>Section 6.5</u>, (i) the disclosure and sharing of Privileged Information shall be governed solely by <u>Section 6.6</u>, and (ii) Information that is subject to any confidentiality provision or other disclosure restriction in any Ancillary Agreement shall be governed by the terms of such Ancillary 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) For the avoidance of doubt and notwithstanding any other provision of this <u>Section 6.5</u>, following the Distribution Date, the confidentiality obligations under this Agreement shall continue to apply to any and all Confidential Information concerning or belonging to each Party or its Group that is shared or disclosed with the other Party or its Group, whether or not such Confidential Information is shared pursuant to this Agreement, any Ancillary Agreement or otherwise.

Section 6.6 <u>Privilege Matters</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) The Parties recognize that legal and other professional services that have been and will be provided prior to the Distribution (whether by on behalf of outside counsel, in-house counsel or other legal professionals) have been and will be rendered for the collective benefit of the Resideo Group , and that each of the members of the Resideo Group and the ADI Group shall be deemed to be the client in connection with such services with respect to periods prior to the Distribution for the purposes of asserting all privileges, immunities or other protections from disclosure which may be asserted under applicable Law, including attorney-client privilege, business strategy privilege, joint defense privilege, common interest privilege, and protection under the work-product doctrine ("<u>Privilege</u>"). The Parties recognize that legal and other professional services will be provided following the Distribution, which services will be rendered solely for the benefit of the Resideo Group or the ADI Group, as the case may be.

&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) Resideo shall be entitled to control the assertion or waiver of all privileges and immunities in connection with any Information subject to Privilege ("<u>Privileged Information</u>") that relates solely to the Resideo Retained Business or the Distribution and not to the operations of the ADI Business, whether or not the Privileged Information is in possession or under the control of any member of the Resideo Group or any member of the ADI Group. Resideo shall also be entitled to control the assertion or waiver of all privileges and immunities in connection with any Privileged Information that relates solely to any Resideo Retained Assets or Resideo Retained Liabilities, and not any ADI Assets or ADI Liabilities, in connection with any Actions that are now pending or may be asserted in the future, whether or not the Privileged Information is in the possession or under the control of any member of the Resideo Group or any member of the ADI 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) ADI SpinCo shall be entitled to control the assertion or waiver of all privileges and immunities in connection with any Privileged Information that relates solely to the operations of the ADI Business and not to the Resideo Retained Business or the Distribution, whether or not the Privileged Information is in possession or under the control of any member of the ADI Group or any member of the Resideo Group. ADI SpinCo shall also be entitled to control the assertion or waiver of all privileges and immunities in connection with any Privileged Information that relates solely to any ADI Assets or ADI Liabilities, and not any Resideo Retained Assets or Resideo Retained Liabilities, in connection with any Actions that are now pending or may be asserted in the future, whether or not the Privileged Information is in the possession or under the control of any member of the ADI Group or any member of the Resideo 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;(d) Subject to the remaining provisions of this <u>Section 6.6</u>, the Parties agree that Resideo shall be entitled to control the assertion or waiver of all privileges and immunities in connection with any Actions, or threatened or contemplated Actions, or other matters that involve both Parties (or one or more members of their respective Groups) and in respect of which both Parties have Liabilities under 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) If any dispute arises between the Parties or any members of their respective Group regarding whether a privilege or immunity should be waived to protect or advance the interests of either Party or any member of their respective Groups, each Party agrees that it shall: (i) negotiate with the other Party in good faith; (ii) endeavor to minimize any prejudice to the rights of the other Party and the members of its Group; and (iii) not unreasonably withhold, delay or condition consent to any request for waiver by the other 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;(f) Upon receipt by either Party, or by any member of its respective Group, of any subpoena, discovery or other request (or of written notice that it will receive or has received such subpoena, discovery or other request) that may reasonably be expected to result in the production or disclosure of Privileged Information subject to a shared privilege or immunity or as to which the other Party has the sole right hereunder to assert a privilege or immunity, or if either Party obtains knowledge or becomes aware that any of its, or any member of its respective Group's, current or former directors, officers, agents or employees have received any subpoena, discovery or other requests (or have received written notice that they will receive or have received such subpoena, discovery or other request) that may reasonably be expected to result in the production or disclosure of such Privileged Information, such Party shall promptly notify the other Party of the existence of any such subpoena, discovery or other request and shall provide the other Party a reasonable opportunity to review the Privileged Information and to assert any rights it or they may have, under this <u>Section 6.6</u> or otherwise, to prevent the production or disclosure of such Privileged Information; <u>provided</u> that if such Party is prohibited by applicable Law from disclosing the existence of such subpoena, discovery or other request, such Party shall provide written notice of such related information for which disclosure is not prohibited by applicable Law and use reasonable best efforts to inform the other Party of any related information such Party reasonably determines is necessary or appropriate for the other Party to be informed of to enable the other Party to review the Privileged Information and to assert its rights, under this <u>Section 6.6</u> or otherwise, to prevent the production or disclosure of such Privileged Information.

&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) The transfer of all Information pursuant to this Agreement is made in reliance on the agreement of Resideo or ADI SpinCo as set forth in <u>Section 6.5</u> and this <u>Section 6.6</u>, to maintain the confidentiality of Privileged Information and to assert and maintain any applicable Privilege. The access to Information being granted pursuant to <u>Section 5.5</u> and <u>Section 6.2</u>, the agreement to provide witnesses and individuals pursuant to <u>Section 5.5</u> and <u>Section 6.3</u>, the furnishing of notices and documents and other cooperative efforts contemplated by <u>Section 5.5</u>, and the transfer of Privileged Information between the Parties and their respective Subsidiaries pursuant to this Agreement shall not be deemed a waiver of any Privilege that has been or may be asserted under this Agreement or otherwise. The Parties further agree that: (i) the exchange by one Party to the other Party of any Information that should not have been exchanged pursuant to the terms of <u>Section 6.5</u> shall not be deemed to constitute a waiver of any privilege or immunity that has been or may be asserted under this Agreement or otherwise with respect to such Privileged Information; and (ii) the Party receiving such Privileged Information shall promptly return such Privileged Information to the Party who has the right to assert the privilege or immunity.

Section 6.7 <u>Ownership of Information</u>. Any Information owned by one Party or any of its Subsidiaries that is provided to a requesting Party pursuant to this <u>Article VI</u> shall be deemed to remain the property of the providing Party. Unless expressly set forth herein, nothing contained in this Agreement shall be construed as granting a license or other rights to any Party with respect to any such Information, whether by implication, estoppel or otherwise.

Section 6.8 <u>Processing of Personal Information</u>. The Parties acknowledge and agree that certain matters concerning the processing, sharing, transfer and security of Personal Information may arise in connection with the transactions contemplated by this Agreement and the Ancillary Agreements. As of the Distribution Date, the Data Privacy Agreement shall govern such matters solely for the period and in the manner set out therein.

Section 6.9 <u>Other Agreements</u>. The rights and obligations granted under this <u>Article VI</u> are subject to any specific limitations, qualifications or additional provisions on the sharing, exchange or confidential treatment of Information set forth in any Ancillary Agreement.

**Article VII<u><br>DISPUTE RESOLUTION</u>**

Section 7.1 <u>Arbitration</u>. Unless an Ancillary Agreement provides for an alternative dispute resolution mechanism (in which case, such alternative dispute resolution shall apply in respect of any Dispute under such Ancillary Agreement), any controversy, dispute or Action arising out of, in connection with, or in relation to the interpretation, performance, nonperformance, validity or breach of this Agreement or the Ancillary Agreements or otherwise arising out of, or in any way related to, this Agreement or the Ancillary Agreements or the transactions contemplated hereby, including any Action based on contract, tort, statute or constitution (collectively, "<u>Disputes</u>") shall be submitted to final and binding arbitration administered in accordance with the Commercial Arbitration Rules and Mediation Procedures of the American Arbitration Association ("<u>AAA</u>") then in effect (the "<u>Rules</u>"), except as modified herein.

&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) Unless otherwise agreed by the Parties in writing, any Dispute to be decided pursuant to this <u>Section 7.1</u> will be decided (x) before a sole arbitrator if the amount in dispute, inclusive of all claims and counterclaims, totals less than $2,500,000, or (y) by a panel of three (3) arbitrators if the amount in dispute, inclusive of all claims and counterclaims, totals $2,500,000 or more (such arbitrator, collectively, the "<u>Arbitral Tribunal</u>"), it being understood that if the Parties cannot agree on whether the threshold in clause (y) has been satisfied, the Arbitral Tribunal shall consist of three (3) arbitrators. The panel of three (3) arbitrators shall be selected as follows: (1) the claimant shall nominate one arbitrator in accordance with the Rules, (2) the respondent shall nominate one arbitrator in accordance with the Rules within twenty-one days (21) after the appointment of the first arbitrator, and (3) the third arbitrator, who shall serve as chair, shall be jointly nominated by the two party-nominated arbitrators within twenty-one (21) days of the confirmation of the appointment of the second arbitrator. If any arbitrator is not appointed within the time limit provided herein, such arbitrator shall be appointed by the AAA in accordance with the listing, striking and ranking procedure in the Rules.

&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) The arbitration shall be held, and the award shall be rendered, in New York, New York, in the English language.

&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) For the avoidance of doubt, by submitting their dispute to arbitration under the Rules, the Parties expressly agree that all issues of arbitrability, including all issues concerning the propriety and timeliness of the commencement of the arbitration (including any defense based on a statute of limitation, if applicable), the jurisdiction of the Arbitral Tribunal, and the procedural conditions for arbitration, shall be finally and solely determined by the Arbitral Tribunal.

&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) Without derogating from <u>Section 7.1(e)</u> below, the Arbitral Tribunal shall have the full authority to grant any pre-arbitral injunction, pre-arbitral attachment, interim or conservatory measure or other order in aid of arbitration proceedings ("<u>Interim Relief</u>"). The Parties shall submit any application for Interim Relief to: (A) the Arbitral Tribunal; or (B) prior to the constitution of the Arbitral Tribunal, an emergency arbitrator appointed in the manner provided for in the Rules (the "<u>Emergency Arbitrator</u>"). Any Interim Relief so issued shall, to the extent permitted by applicable Law, be deemed a final arbitration award for purposes of enforceability, and, moreover, shall also be deemed a term and condition of this Agreement subject to specific performance in <u>Section 7.2</u> below. The Arbitral Tribunal shall have the power to continue, review, vacate or modify any Interim Relief granted by an Emergency Arbitrator. In the event an Emergency Arbitrator or the Arbitral Tribunal issues an order granting, denying or otherwise addressing Interim Relief (a "<u>Decision on Interim Relief</u>"), any Party may apply to enforce or require specific performance of such Decision on Interim Relief in any court of competent jurisdiction. Notwithstanding the foregoing, the Parties specifically reserve the right to seek a judicial temporary restraining order, preliminary injunction, or other similar short term equitable relief, and grant the Arbitral Tribunal the right to make a final determination of the Parties' rights, including whether to make permanent or dissolve such court order.

&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) The Arbitral Tribunal shall have the power to grant any remedy or relief that it deems just and equitable and that is in accordance with the terms of this Agreement, including specific performance and temporary or final injunctive relief, <u>provided</u>, <u>however</u>, that the Arbitral Tribunal shall have no authority or power to limit, expand, alter, amend, modify, revoke or suspend any condition or provision of this Agreement or any Ancillary Agreement, nor any right or power to award punitive, exemplary or treble damages. The limitations on the Arbitral Tribunal's authority and powers set forth in this <u>Section 7.1(e)</u> shall also apply to any Appeal Tribunal constituted under <u>Section 7.1(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;(f) The Arbitral Tribunal shall have the power to allocate the costs and fees of the arbitration, including reasonable attorneys' fees and costs as well as those costs and fees addressed in the Rules, between the Parties in the manner it deems fit.

&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) Other than as set forth in <u>Section 7.1(d)</u>, Arbitration under this <u>Article VII</u> shall be the sole and exclusive remedy for any Dispute, and any award rendered thereby shall be final and binding upon the Parties as from the date rendered, subject to the appellate review rights set forth in <u>Section 7.1(h)</u>. Judgment on the award rendered by the Arbitral Tribunal may be entered in any court having jurisdiction thereof, including any court having jurisdiction over the relevant Party or its Assets, provided that no Party shall seek entry of judgement on an award that remains subject to appellate review under <u>Section 7.1(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;(h) Notwithstanding <u>Section 7.1(g)</u>, any award rendered by the Arbitral Tribunal pursuant to this <u>Article VII</u> (other than any Decision on Interim Relief rendered under <u>Section 7.1(d)</u>) shall be subject to appellate review in accordance with the Optional Appellate Arbitration Rules of the AAA then in effect (the "<u>Appellate Rules</u>"). The appeal tribunal shall be constituted in accordance with the Appellate Rules and shall consist of a panel of three arbitrators, none of whom shall have served on the Arbitral Tribunal that rendered the underlying award (the "<u>Appeal Tribunal</u>"). The substantive standard for review shall be as set for in the Appellate Rules. The Appeal Tribunal shall have the power to allocate the costs and fees of the entire arbitration, including any appellate review process under this <u>Section 7.1(h)</u>, and may modify any award of costs by the Arbitral Tribunal under <u>Section 7.1(f)</u>. For the avoidance of doubt, no award subject to this <u>Section 7.1(h)</u> shall be considered final and binding for purposes of <u>Section 7.1(g)</u>, and no Party shall seek to confirm or enforce such award in any court, until (i) the time for filing a notice of appeal under the Appellate Rules has expired without any Party having filed such notice, or (ii) if an appeal is filed, the Appeal Tribunal has rendered a final decision on the appeal.

Section 7.2 <u>Specific Performance</u>. From and after the Distribution Date, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement or any Ancillary Agreement, the Parties agree that the Party or Parties to this Agreement or such Ancillary Agreement who are or are to be thereby aggrieved shall, subject and pursuant to the terms of this <u>Article VII</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 or such Ancillary 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, from and after the Distribution Date, the remedies at law for any breach or threatened breach of this Agreement or any Ancillary Agreement, including monetary damages, are inadequate compensation for any Indemnifiable Loss, 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 7.3 <u>Treatment of Arbitration</u>. The Parties agree that any arbitration hereunder shall be kept confidential, and that the existence of the proceeding and all of its elements (including any pleadings, briefs or other documents submitted or exchanged, any testimony or other oral submissions, and any awards) shall be deemed confidential, and shall not be disclosed beyond the Arbitral Tribunal, the Parties, their counsel, and any Person necessary to the conduct of the proceeding, except as and to the extent required by Law and to defend or pursue any legal right. In the event any Party makes application to any court in connection with this <u>Section 7.3</u> (including any proceedings to enforce a final award or any Interim Relief), that party shall take all steps reasonably within its power to cause such application, and any exhibits (including copies of any award or decisions of the Arbitral Tribunal or Emergency Arbitrator) to be filed under seal, shall oppose any challenge by any third party to such sealing, and shall give the other Party immediate notice of such challenge. The confidentiality obligations set forth in this <u>Section 7.3</u> shall apply to any appellate proceeding conducted in accordance with <u>Section 7.1(h)</u>, including all briefs, submissions, and decisions rendered on appeal.

Section 7.4 <u>Continuity of Service and Performance</u>. Unless otherwise agreed in writing, the Parties shall continue to provide service and honor all other commitments under this Agreement and each Ancillary Agreement during the course of dispute resolution pursuant to the provisions of this <u>Article VII</u> with respect to all matters not subject to such dispute resolution.

Section 7.5 <u>Consolidation</u>. The arbitrator may consolidate an arbitration under this Agreement with any arbitration arising under or relating to the Ancillary Agreements or any other agreement between the Parties entered into pursuant hereto, as the case may be, if the subject of the Disputes thereunder arises out of or relates essentially to the same set of facts or transactions. Such consolidated arbitration shall be determined by the arbitrator appointed for the arbitration proceeding that was commenced first in time.

Section 7.6 <u>Coordination</u>. Except to the extent provided in Article IX of the Tax Matters Agreement, the provisions of this <u>Article VII</u> (other than this <u>Section 7.6</u>) shall not apply with respect to the resolution of any dispute, controversy or claim arising out of or relating to Taxes or Tax matters, which shall be governed by the Tax Matters Agreement.

**Article VIII<u><br>INSURANCE</u>**

Section 8.1 <u>Insurance Matters</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) ADI SpinCo acknowledges and agrees that, from and after the Effective Time, neither ADI SpinCo nor any member of the ADI Group shall have any rights to or under any Company Policies other than as expressly provided in <u>Section 5.8</u> or this <u>Article VIII</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) Notwithstanding <u>Section 8.1(a)</u>, from and after the Effective Time, with respect to any Liability accrued or incurred by ADI SpinCo or its predecessors prior to the Effective Time, ADI SpinCo shall have access to the Company Policies if and solely to the extent that the terms of such policies provide for such coverage to ADI SpinCo or its predecessors with respect to any ADI Liabilities accrued or incurred prior to the Effective Time, and subject to the terms and conditions of such insurance policies, including any limits on coverage or scope, any deductibles and other fees and expenses, and subject to the following additional conditions:

&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;(i) ADI SpinCo shall inform Resideo of any potential claim under any of the Company Policies with regard to any ADI Liability and Resideo shall determine whether and at what time to report any such claims under such Company Policies directly to the applicable insurance company, and to submit a claim for coverage thereunder, and Resideo shall provide a copy of all such claim reports and submissions to ADI SpinCo; <u>provided</u>, that with respect to any such claims, ADI SpinCo shall provide Resideo with the information regarding the claims and provide recommendations with regard to the reporting and submission of such claims, and Resideo shall consult with ADI SpinCo with regard to the timing 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If and to the extent that ADI SpinCo is the sole entity recovering insurance proceeds under one or more of the Company Policies in respect of a particular claim for coverage, ADI SpinCo shall exclusively bear and be responsible for (and Resideo shall have no obligation to repay or reimburse ADI SpinCo for) and pay the applicable insurers as required under the applicable Company Policies for any and all costs as a result of having access to, or making claims under, such Company Policies, including any amounts of deductibles and self-insured retention associated with such claims, claim handling and administrative costs, collateral requirements and costs, Taxes, surcharges, additional premiums, state assessments, reinsurance costs, and other related costs, relating to all open, closed or re-opened claims covered by the applicable Company Policies, whether such claims are made by ADI SpinCo, its employees or third parties, and ADI SpinCo shall indemnify, hold harmless and reimburse Resideo for any such amounts incurred by Resideo to the extent resulting from any access to, any claims made by ADI SpinCo under, any Company Policies provided pursuant to this <u>Section 8.1</u>. If Resideo and ADI SpinCo jointly make a claim for coverage under the Company Policies for amounts that have been or may in the future be incurred partially by Resideo and partially by ADI SpinCo, each of Resideo and ADI SpinCo shall proportionally bear (based on the relative losses experienced by each in respect of such claim) the amount of any deductibles under any such Company Policies and any insurance recovery resulting therefrom shall first be allocated to reimburse Resideo and ADI SpinCo for their respective costs, legal and consulting fees, and other documented out-of-pocket expenses incurred in pursuing such insurance recovery, with the remaining net proceeds from the insurance recovery to be allocated as between Resideo and ADI SpinCo in proportion to the relative losses experienced by each in respect of such 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) ADI SpinCo shall exclusively bear (and Resideo shall have no obligation to repay or reimburse ADI SpinCo for) and shall be liable for all uninsured, uncovered, unavailable or uncollectible amounts, incurred from and after the Effective Time, of all such claims pursued by ADI SpinCo under the Company Policies as provided for in this <u>Section 8.1(b)</u>; and

&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;(iv) in connection with making any joint claim under any Company Policies pursuant to this <u>Section 8.1(b)</u>, Resideo shall control the administration of all such claims, including the timing of any assertion and pursuit of coverage (provided that Resideo shall reasonably consult with ADI in the administration of such claims), and ADI SpinCo shall not take any action that would be reasonably likely to: (A) have an adverse impact on the then-current relationship between Resideo and the applicable insurance company; (B) result in the applicable insurance company terminating or reducing coverage to Resideo or ADI SpinCo, or increasing the amount of any premium owed by Resideo under the applicable Company Policies; (C) otherwise compromise, jeopardize or interfere with the rights of Resideo under the applicable Company Policies; or (D) otherwise compromise or impair Resideo's ability to enforce its rights with respect to any indemnification under or arising out of this Agreement, and Resideo shall have the right, in its sole discretion, to cause ADI SpinCo to desist from any action that Resideo determines, in its sole discretion, would compromise or impair Resideo's rights in accordance with this clause (D). Notwithstanding the foregoing, if Resideo shall have acted in bad faith in connection with the administration of any claim, ADI SpinCo shall be permitted to administer such particular claim subject to the limitations set forth herein.

At all times, Resideo and ADI SpinCo shall, subject to the limitations set forth in <u>Section 6.5</u>, cooperate with reasonable requests for information by the other Party or the insurance companies regarding any such insurance policy 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) Notwithstanding <u>Section 8.1(b)</u>, from and after the Effective Time, any director or officer of ADI SpinCo or any member of the ADI Group who served as a director or officer of Resideo or any member of the Resideo Group prior to the Effective Time shall be entitled to pursue coverage under the director and officer liability insurance policies maintained by Resideo or any member of the Resideo Group to the extent that such policies provide coverage for such director's or officer's acts and omissions in his or her respective capacity as director or officer of Resideo or any member of the Resideo Group prior to the Effective Time, subject to the terms and conditions of such policies (including but not limited to any limits on coverage or scope, any deductibles or retention amounts and other fees and expenses). On or prior to the Distribution Date, Resideo shall purchase and obtain directors and officers liability "tail" insurance, and may in its reasonable discretion purchase fiduciary liability and employment practices liability insurance, covering the ADI Group and its respective insured persons with respect to claims or other matters arising out of acts, omissions or other matters occurring at or prior to the Distribution 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) Any payments, costs and adjustments required pursuant to <u>Section 8.1(b)</u> shall at Resideo's election either be billed by Resideo to ADI SpinCo on a monthly basis and ADI SpinCo shall pay such billed payments, costs and adjustments to Resideo within sixty (60) days from receipt of invoice, or billed directly by the applicable third party to ADI SpinCo. If Resideo incurs costs to enforce ADI SpinCo's obligations under this <u>Section 8.1</u>, ADI SpinCo agrees to indemnify Resideo for such enforcement costs, including reasonable attorneys' fees.

&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) Notwithstanding anything to the contrary in this Agreement, from and after the Effective Time, neither ADI SpinCo nor any member of the ADI Group shall have any rights or claims against or with respect to any self-insurance arrangement of Resideo or any member of the Resideo Group. In addition, as of the Effective Time, ADI SpinCo, for itself and each member of the ADI Group does hereby remise, release and forever discharge Resideo and the other members of the Resideo Group of any rights or claims against or with respect to any self-insurance arrangement of Resideo or any member of the Resideo 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;(f) On the Distribution Date, ADI SpinCo shall have in effect all insurance programs required to comply with ADI SpinCo's statutory obligations as of the Distribution 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;(g) This Agreement shall not be considered as an attempted assignment of any policy of insurance in its entirety, nor is it considered to be itself a contract of insurance, and further this Agreement shall not be construed to waive any right or remedy of Resideo under or with respect to any of the Company Policies and programs or any other contract or policy of insurance, and Resideo reserves all of its rights under such Policies.

&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) Resideo shall not be liable to ADI SpinCo for claims (or portions thereof) not reimbursed by insurers for any reason, including coinsurance provisions, deductibles, quota share deductibles, exhaustion of aggregates, self-insured retentions, bankruptcy or insolvency of an insurance carrier, Company Policy limitations or restrictions, any coverage disputes, any failure to timely claim by Resideo or any defect in such claim or its processing.

&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) In the event of any Action by any Party (or both of the Parties) to recover or obtain insurance proceeds, or to defend against any Action by an insurance carrier to deny any Policy benefits, both Parties may join in any such Action and be represented by joint counsel and both Parties shall waive any conflict of interest to the extent necessary to conduct any such Action. Nothing in this <u>Section 8.1(j)</u> shall be construed to limit or otherwise alter in any way the obligations of the Parties, including those created under <u>Article V</u> of this Agreement or otherwise, by operation of Law, or otherwise.

&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) Notwithstanding anything contained in this <u>Section 8.1</u>, to the extent Resideo has entered into or agrees to enter into, whether on its own or with respect to the any arrangement provided for under this <u>Section 8.1</u>, any settlement agreement or other arrangement with any insurance provider regarding coverage under any Company Policy that provides for any limitation of coverage or release of such insurance provider with regard to any coverage thereunder, whether in whole or in part (collectively, the "<u>Released Insurance Matters</u>"), ADI SpinCo agrees that it shall (i) abide by the terms of and, to the extent required, consent to, any such settlement or arrangement relating to the Released Insurance Matters as a condition to receiving any coverage under any Company Policy related thereto, (ii) have no rights to any such coverage under the Company Policies with respect to any Released Insurance Matters and (iii) make no claims under any Company Policies with respect to any Released Insurance Matters.

Section 8.2 <u>Certain Matters Relating to Organizational Documents</u>. From the Distribution Date until six (6) years following the Distribution Date, the certificate of incorporation and bylaws of ADI SpinCo shall contain provisions no less favorable with respect to indemnification of directors and officers than those set forth in the Charter or Bylaws, which provisions shall not be amended, repealed or otherwise modified for such period in any manner that would affect adversely the rights thereunder of individuals who, at or prior to the Effective Time, were indemnified under the Charter or Bylaws, unless such amendment, repeal, or other modification shall be required by Law and then only to the minimum extent required by Law or approved by ADI SpinCo's stockholders.

Section 8.3 <u>Indemnitor of First Resort</u>. As a result of agreements or obligations arising out of this Agreement, certain of the directors and officers of ADI SpinCo and its Subsidiaries designated by Resideo or its Affiliates (the "<u>Resideo D&O Indemnitees</u>") have or will have rights to indemnification, advancement of expenses or insurance provided by Resideo or certain of its Affiliates (collectively, the "<u>Resideo Indemnitors</u>") in connection with their service as directors or officers of ADI SpinCo or its Subsidiaries. Notwithstanding any such rights to indemnification, advancement of expenses or insurance provided by any Resideo Indemnitor, (a) ADI SpinCo is the indemnitor of first resort (*i.e.*, ADI SpinCo's obligations to the Resideo D&O Indemnitees are primary, and any obligation of the Resideo Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by any Resideo D&O Indemnitee are secondary), (b) ADI SpinCo shall be required to advance the full amount of expenses incurred by the Resideo D&O Indemnitees and shall be liable for the full amount of all Indemnifiable Losses paid in settlement to the extent legally permitted and as required by the terms of this Agreement, any other agreement between ADI SpinCo and the Resideo D&O Indemnitees or the certificate of incorporation or bylaws of ADI SpinCo and (c) ADI SpinCo hereby irrevocably waives, relinquishes and releases each of the Resideo Indemnitors from any and all claims against any of the Resideo Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. In addition, notwithstanding any advancement or payment by the Resideo Indemnitors to or on behalf of any Resideo D&O Indemnitee with respect to any claim for which a Resideo D&O Indemnitee has sought or may seek indemnification from ADI SpinCo, (i) ADI SpinCo's obligations hereunder shall not be affected, (ii) the Resideo Indemnitors shall have a right of contribution or be subrogated to the extent of such advancement or payment to all of the rights of recovery of such Resideo D&O Indemnitee, as applicable, against ADI SpinCo and (iii) for the avoidance of doubt, all damages, costs losses and other Liabilities incurred by any Resideo D&O Indemnitee in connection with his or her service as a director or officer of ADI SpinCo or any of its Subsidiaries shall constitute ADI Liabilities.

**Article IX**

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

Section 9.1 <u>Entire Agreement; Construction</u>. This Agreement, including the Exhibits and Schedules, and the 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. In the event of any inconsistency between this Agreement and any Schedule hereto, this Agreement shall prevail. In the event and to the extent that there shall be a conflict or inconsistency between the provisions of (a) this Agreement and the provisions of any Ancillary Agreement or Continuing Arrangement, such Ancillary Agreement or Continuing Arrangement shall control with respect to the subject matter addressed by such Ancillary Agreement or Continuing Arrangement to the extent of such conflict or inconsistency (except with respect to any Conveyancing and Assumption Instruments, in which case this Agreement shall control) and (b) this Agreement and any agreement which is not an Ancillary Agreement, this Agreement shall control unless specifically stated otherwise in such agreement. For the avoidance of doubt, the Conveyancing and Assumption Instruments are intended to be ministerial in nature and only to effect the transactions contemplated by this Agreement with respect to the applicable local jurisdiction and shall not expand or modify the rights and obligations of the Parties or their Affiliates under this Agreement or any of the Ancillary Agreements that are not Conveyancing and Assumption Instruments. Notwithstanding anything herein to the contrary, except as expressly set forth otherwise in this Agreement or any Ancillary Agreement, all matters relating to Taxes and Tax Returns of the Parties and their respective Subsidiaries shall be governed exclusively by the Tax Matters Agreement.

Section 9.2 <u>Ancillary Agreements</u>. Except as expressly set forth herein, this Agreement is not intended to address, and should not be interpreted to address, the matters specifically and expressly covered by the Ancillary Agreements.

Section 9.3 <u>Counterparts</u>. This Agreement may be executed in more than one counterpart, all of which shall be considered one and the same agreement, 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 9.4 <u>Survival of Agreements</u>. Except as otherwise contemplated by this Agreement or any Ancillary Agreement, all covenants and agreements of the Parties contained in this Agreement and each Ancillary Agreement shall survive the Effective Time and remain in full force and effect in accordance with their applicable terms.

Section 9.5 <u>Expenses</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) Except as otherwise expressly provided in this Agreement or any Ancillary Agreement, or as otherwise agreed to in writing by the Parties, all out-of-pocket fees and expenses incurred at or prior to the Distribution by any member of the Resideo Group or the ADI Group that are in connection with, or as required by, the preparation, execution, delivery and implementation of this Agreement, any Ancillary Agreement and the Distribution Disclosure Documents and the consummation of the Internal Reorganization, the Contribution and the Distribution shall be borne and paid by Resideo.

&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) The Resideo Group shall have no responsibility for, and ADI SpinCo shall indemnify the Resideo Group in respect of, any out-of-pocket fees and expenses incurred by any member of the ADI Group following the Distribution in connection with, or as required by, the preparation, execution, delivery and implementation of this Agreement any Ancillary Agreement and the Distribution Disclosure Documents and the consummation of the Internal Reorganization, the Contribution and the Distribution (except to the extent such fees and expenses were incurred in connection with services expressly requested by Resideo in writing following the Distribution).

&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) Except as otherwise expressly provided in this Agreement or any Ancillary Agreement, or as otherwise agreed to in writing by the Parties, any costs and expenses incurred in obtaining any Consents or novation from a third party in connection with the Transfer by a Party or its Subsidiary of any Contracts (or portions thereof) contemplated by this Agreement (including <u>Sections 2.2</u>, <u>2.3</u>, <u>2.5</u>, and <u>2.8</u>) shall be borne by the Party or its Subsidiary to which such Contract (or portion thereof) is being assigned, and no Party nor any of its Subsidiaries in exercising any efforts to obtain any such Consent pursuant to this Agreement shall be required to incur any material obligation or grant any material concession for the benefit of any other Person in order to obtain such Consent.

&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) Except as otherwise expressly provided in this Agreement or any Ancillary Agreement, or as otherwise agreed to in writing by the Parties, with respect to any expenses incurred pursuant to a request for further assurances granted under <u>Section 2.7</u> or a request in connection with cooperation under this Agreement, including under <u>Section 4.1</u>, the Parties agree that any and all fees and expenses incurred by either Party shall be borne and paid by the requesting Party; it being understood that no Party shall be obliged to incur any third party accounting, consulting, advisor, banking or legal fees, costs or expenses, and the requesting Party shall not be obligated to pay such fees, costs or expenses, unless such fee, cost or expense shall have had the prior written approval of the requesting Party. Notwithstanding the foregoing, each Party shall be responsible for paying its own internal fees, costs and expenses (*e.g.*, salaries of personnel).

Section 9.6 <u>Notices</u>. All notices, requests, claims, demands and other communications under this Agreement and, to the extent applicable and unless otherwise provided therein, under each of the Ancillary Agreements shall be in English, shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by email or by facsimile with receipt confirmed (followed by delivery of an original via overnight courier service) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this <u>Section 9.6</u>):

To Resideo:

Resideo Technologies, Inc.<br> 16100 N 71st St, Suite 550<br> Scottsdale, Arizona, 85254<br> Attention: [●]<br> E-mail: [●]<br>

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

Willkie Farr & Gallagher LLP<br> 787 Seventh Avenue<br> New York, NY 10019-6099<br> Attention: Russell L. Leaf; Jared N. Fertman; Tej Prakash<br> E-mail: rleaf@willkie.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;jfertman@willkie.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;tprakash@willkie.com

To ADI SpinCo:

ADI Global Distribution Inc.<br> 275 Broadhollow Rd Suite 400<br> Melville, NY 11747<br> Attention: [●]<br> E-mail: [●]

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

Willkie Farr & Gallagher LLP<br> 787 Seventh Avenue<br> New York, NY 10019-6099<br> Attention: Russell L. Leaf; Jared N. Fertman; Tej Prakash<br> E-mail: rleaf@willkie.com<br> jfertman@willkie.com<br> tprakash@willkie.com

Section 9.7 <u>Amendments</u>. No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by a Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representatives of the Parties against whom it is sought to enforce such waiver, amendment, supplement or modification.

Section 9.8 <u>Assignment</u>. This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any Party without the prior written consent of the other Party, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void. Notwithstanding the foregoing, this Agreement shall be assignable to (i) with respect to Resideo, an Affiliate of Resideo, or (ii) a bona fide third party in connection with a merger, reorganization, consolidation or the sale of all or substantially all the assets of a Party so long as the resulting, surviving or transferee entity assumes all the obligations of the relevant Party by operation of law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party to this Agreement; <u>provided</u>, <u>however</u>, that in the case of each of the preceding clauses (i) and (ii), no assignment permitted by this <u>Section 9.8</u> shall release the assigning Party from liability for the full performance of its obligations under this Agreement.

Section 9.9 <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 assigns.

Section 9.10 <u>Termination</u>. This Agreement (including <u>Article V</u> hereof) may be terminated at any time prior to the Effective Time by and in the sole discretion of Resideo without the approval of ADI SpinCo or the stockholders of Resideo. In the event of such termination prior to the Effective Time, no Party (nor any of its directors, officers or employees) shall have any liability of any kind to the other Party or any other Person by reason of this Agreement. After the Effective Time, this Agreement may not be terminated except by an agreement in writing signed by Resideo and ADI SpinCo.

Section 9.11 <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) Except as set forth in <u>Article V</u> or as otherwise expressly provided to the contrary in this Agreement or in any Ancillary Agreement, any amount to be paid or reimbursed by a Party (or a member of such Party's Group), on the one hand, to the other Party (or a member of such Party's Group), on the other hand, under this Agreement shall be paid or reimbursed hereunder within sixty (60) days after presentation of an invoice or a written demand therefor and setting forth, or accompanied by, reasonable documentation or other reasonable explanation supporting such amount.

&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) Notwithstanding anything to the contrary herein, any amount to be paid by ADI SpinCo in respect of an ADI Liability or other Liability or obligation of Resideo that is Assumed, or otherwise treated as a Liability or obligation of Resideo that is assumed by ADI SpinCo within the meaning of Section 357(d) of the Code, pursuant to this Agreement, in each case, as determined by Resideo in its sole discretion, shall be paid, at Resideo's option and in its sole discretion, in the following manner:

&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;(i) to the applicable third-party creditor or obligor of such Liability or obligation directly;

&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;(ii) to an independent trustee or escrow agent that is not affiliated with Resideo, which agent shall pay the applicable third-party creditor or obligor of such Liability or obligation directly; provided that (x) the payment is not made to any account of Resideo or any member of the Resideo Group or any person through which Resideo or any member of the Resideo Group could direct the payment, (y) Resideo and ADI SpinCo shall treat any income, gain or loss for U.S. federal income Tax purposes on the payment proceeds as income, gain or loss of ADI SpinCo and (z) any excess of the payment amount (and any income or gain thereon) over the amount paid to satisfy such Liability or obligation shall revert and be repaid to ADI SpinCo;

&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;(iii) to Resideo; provided, that (x) Resideo has made in its sole discretion a determination that ADI SpinCo is prohibited from assuming such Liability or obligation, (y) Resideo has already satisfied or paid such Liability or obligation to the applicable third-party creditor or obligor of such Liability or obligation directly, and (z) after receiving such payment from ADI SpinCo, Resideo is in the same net economic position that it would have been in if ADI SpinCo were able to assume such obligation; or

&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;(iv) in any other manner as determined by Resideo in its sole discretion.

&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) The Parties acknowledge and agree that, for U.S. federal (and applicable state and local) income Tax purposes, the payment procedures described in <u>Section 9.11(b)</u> are intended to comply with Section 357(a) of the Code (and the Treasury Regulations promulgated thereunder as of the date of this Agreement) with respect to the Contribution. Each Party shall, and shall cause each of its respective Affiliates and employees to, reasonably cooperate to cause any applicable payments to be made by ADI SpinCo pursuant to this Agreement to be made in accordance with <u>Section 9.11(b)</u> or otherwise as directed by Resideo so as to be in accordance with the tax treatment described in the immediately preceding sentence.

&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) Except as set forth in <u>Article V</u> or as expressly provided to the contrary in this Agreement or in any Ancillary Agreement, any amount not paid when due pursuant to this Agreement (and any amount billed or otherwise invoiced or demanded and properly payable that is not paid within sixty (60) days of such bill, invoice or other demand) shall bear interest at a rate equal to the Prime Rate, from time to time in effect, calculated for the actual number of days elapsed, accrued from the date on which such payment was due up to the date of the actual receipt of payment.

&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) Unless otherwise consented to by the Party receiving any payment under this Agreement specifying otherwise, all payments to be made by either Resideo or ADI SpinCo under this Agreement shall be made in US Dollars. Except as expressly provided herein, any amount which is not expressed in US Dollars shall be converted into US Dollars by using the exchange rate published on Bloomberg at 5:00 p.m. Eastern time (ET) on the day before the relevant date or in *The Wall Street Journal* on such date if not so published on Bloomberg. Except as expressly provided herein, in the event that any indemnification payment required to be made hereunder or under any Ancillary Agreement may be denominated in a currency other than US Dollars, the amount of such payment shall be converted into US Dollars on the date in which notice of the claim is given to the Indemnifying Party.

Section 9.12 <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 Time, to the extent such Subsidiary remains a Subsidiary of the applicable Party.

Section 9.13 <u>Third Party Beneficiaries</u>. Except (i) as provided in <u>Article V</u> relating to Indemnitees and for the release under <u>Section 5.1</u> of any Person provided therein and (ii) as specifically provided in any Ancillary Agreement, this Agreement is solely for the benefit of the Parties and should not be deemed to confer upon third parties any remedy, claim, liability, reimbursement, claim of Action or other right in excess of those existing without reference to this Agreement.

Section 9.14 <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. Unless otherwise indicated, all "Section" references in this Agreement are to sections of this Agreement.

Section 9.15 <u>Exhibits and Schedules</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) The Exhibits and Schedules shall be construed with and as an integral part of this Agreement to the same extent as if the same had been set forth verbatim herein. Nothing in the Exhibits or Schedules constitutes an admission of any liability or obligation of any member of the Resideo Group or the ADI Group or any of their respective Affiliates to any third party, nor, with respect to any third party, an admission against the interests of any member of the Resideo Group or the ADI Group or any of their respective Affiliates. The inclusion of any item or liability or category of item or liability on any Exhibit or Schedule is made solely for purposes of allocating potential liabilities among the Parties and shall not be deemed as or construed to be an admission that any such liability exists.

&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) Subject to the prior written consent of the other Party (not to be unreasonably withheld or delayed), each Party shall be entitled to update the Schedules from and after the date hereof until the Effective Time.

Section 9.16 <u>Governing Law</u>. This Agreement and any dispute arising 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 9.17 <u>Severability</u>. In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The Parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

Section 9.18 <u>Interpretation</u>. The Parties have participated jointly in the negotiation and drafting of this Agreement. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting or causing any instrument to be drafted.

Section 9.19 <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 (including with respect to the rights, entitlements, obligations and recoveries that may arise out of <u>Article V</u>.

Section 9.20 <u>Tax Treatment of Payments</u>. Unless otherwise required by a Final Determination, for U.S. federal income Tax purposes and all other applicable Tax purposes, any payment made pursuant to this Agreement (other than any payment of interest pursuant to <u>Section 9.11</u>) shall be treated in accordance with Section 5.4 of the Tax Matters Agreement.

Section 9.21 <u>No Waiver</u>. No failure to exercise and no delay in exercising, on the part of any Party, any right, remedy, power or privilege hereunder or under the other Ancillary Agreements shall operate as a waiver hereof or thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

Section 9.22 <u>No Admission of Liability</u>. The allocation of Assets and Liabilities herein (including on the Schedules hereto) is solely for the purpose of allocating such Assets and Liabilities between Resideo and ADI SpinCo and is not intended as an admission of liability or responsibility for any alleged Liabilities vis-à-vis any third party, including with respect to the Liabilities of any non-wholly owned subsidiary of Resideo or ADI SpinCo.

Section 9.23 <u>Advisors</u>. It is acknowledged and agreed by each of the Parties that Resideo, on behalf of itself and the other members of the Resideo Group, has retained each of the Persons identified on <u>Schedule 9.23</u> to act as counsel or an advisor in connection with this Agreement, the Ancillary Agreements, the Internal Reorganization, the Contribution, the Distribution and the other transactions contemplated hereby and thereby and that the Persons listed on <u>Schedule 9.23</u> have not acted as counsel or advisor for ADI SpinCo or any other member of the ADI Group in connection with this Agreement, the Ancillary Agreements, the Internal Reorganization, the Contribution, the Distribution and the other transactions contemplated hereby and thereby and that none of ADI SpinCo or any member of the ADI Group has the status of a client of the Persons listed on <u>Schedule 9.23</u> for conflict of interest or any other purposes as a result thereof. ADI SpinCo hereby agrees, on behalf of itself and each other member of the ADI Group that, in the event that a dispute arises after the Effective Time in connection with this Agreement, the Ancillary Agreements, the Internal Reorganization, the Contribution, the Distribution or any of the other transactions contemplated hereby and thereby between Resideo and ADI SpinCo or any of the members of their respective Groups, each of the Persons listed on <u>Schedule 9.23</u> may represent any or all of the members of the Resideo Group in such dispute even though the interests of the Resideo Group may be directly adverse to those of the ADI Group. ADI SpinCo further agrees, on behalf of itself and each other member of the ADI Group that, with respect to this Agreement, the Ancillary Agreements, the Internal Reorganization, the Contribution, the Distribution and the other transactions contemplated hereby and thereby, the attorney-client privilege and the expectation of client confidence belongs to Resideo or the applicable member of the Resideo Group and may be controlled by Resideo or such member of the Resideo Group and shall not pass to or be claimed by ADI SpinCo or any member of the ADI Group. Without limiting the foregoing, ADI SpinCo acknowledges and agrees that Willkie Farr & Gallagher LLP is representing Resideo, and not ADI SpinCo, in connection with the transactions contemplated hereby.

Section 9.24 <u>Authority</u>. Resideo represents on behalf of itself and each other member of the Resideo Group, and ADI SpinCo represents on behalf of itself and each other member of the ADI Group, as follows:

&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) each such Person has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order to execute, deliver and perform this Agreement and each Ancillary Agreement to which it is a party and to consummate the transactions contemplated hereby and thereby; and

&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) this Agreement and each Ancillary Agreement to which it is a party has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable in accordance with the terms thereof.

Section 9.25 <u>Publicity</u>. Each of Resideo and ADI SpinCo shall consult with the other, and shall, subject to the requirements of <u>Section 6.5</u>, provide the other Party the opportunity to review and comment upon, any press releases or other public statements in connection with transactions contemplated hereby and any filings with any Governmental Entity or national securities exchange with respect thereto, in each case prior to the issuance or filing thereof, as applicable (including the Information Statement, the Parties' respective Current Reports on Form 8-K to be filed on the Distribution Date, the Parties' respective Quarterly Reports on Form 10-Q filed with respect to the fiscal quarter during which the Distribution Date occurs, or if such quarter is the fourth fiscal quarter, the Parties' respective Annual Reports on Form 10-K filed with respect to the fiscal year during which the Distribution Date occurs (each such Quarterly Report on Form 10-Q or Annual Report on Form 10-K, a "<u>First Post-Distribution Report</u>")). Each Party's obligations pursuant to this <u>Section 9.25</u> shall terminate on the date on which such Party's First Post-Distribution Report is filed with the Commission.

[*Signature Page Follows*]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day and year first above written.

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| |
|:---|
| RESIDEO TECHNOLOGIES, INC. |
| By: |
| Name: |
| Title: |
| ADI GLOBAL DISTRIBUTION INC. |
| By: |
| Name: |
| Title: |

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*[Separation and Distribution Agreement Signature Page]*

## Exhibit 3.1

**Exhibit 3.1**

**AMENDED AND RESTATED**

**CERTIFICATE OF INCORPORATION**

**OF**

**ADI GLOBAL DISTRIBUTION INC.**

ADI GLOBAL DISTRIBUTION INC., a corporation organized and existing under the laws of the State of Delaware, DOES HEREBY CERTIFY AS FOLLOWS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The name of the corporation is ADI Global Distribution Inc. The original Certificate of Incorporation of the corporation was filed with the Secretary of State of the State of Delaware on December 10, 2025 (as amended and in effect immediately prior to the adoption and effectiveness hereof, the "<u>Original Certificate of Incorporation</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. This Amended and Restated Certificate of Incorporation has been duly adopted in accordance with Sections 242 and 245 of the General Corporation Law of the State of Delaware (the "<u>DGCL</u>"), and by the written consent of its sole stockholder in accordance with Section 228 of the DGCL, and shall be effective as of 12:01 a.m., New York City time, on [●], 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Original Certificate of Incorporation is hereby amended and restated to read in its entirety as follows:

ARTICLE I

The name of the corporation (hereinafter called the "<u>Corporation</u>") is ADI Global Distribution Inc.

ARTICLE II

The address of the Corporation's registered office in the State of Delaware is 251 Little Falls Drive, Wilmington, New Castle County, Delaware 19808. The name of the Corporation's registered agent at such address is Corporation Service Company.

ARTICLE III

The purpose of the Corporation is to engage in any lawful act or activity for which corporations may be organized under the DGCL.

ARTICLE IV

SECTION 1. The total number of shares of all classes of stock which the Corporation shall have authority to issue is [●] shares of capital stock, consisting of (1) [●] shares of Preferred Stock, par value $0.001 per share ("<u>Preferred Stock</u>"), and (2) [●] shares of Common Stock, par value $0.001 per share ("<u>Common Stock</u>"). The number of authorized shares of either the Preferred Stock or the Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by a vote of the stockholders entitled to vote thereon irrespective of the provisions of Section 242(b)(2) of the DGCL (or any successor provision thereto), voting as a single class, and no vote of the holders of either the Preferred Stock or the Common Stock voting separately as a class shall be required therefor, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock.

SECTION 2. The Board of Directors of the Corporation (the "<u>Board of Directors</u>") is hereby expressly authorized, by resolution or resolutions and without stockholder approval, to provide, out of the unissued shares of Preferred Stock, for series of Preferred Stock and, with respect to each such series, to fix the number of shares constituting such series and the designation of such series, the voting powers (if any) of the shares of such series, and the preferences and relative, participating, optional or other special rights, if any, and any qualifications, limitations or restrictions thereof, of the shares of such series. The powers, preferences and relative, participating, optional and other special rights of each series of Preferred Stock, and the qualifications, limitations or restrictions thereof, if any, may differ from those of any and all other series at any time outstanding.

SECTION 3. (a) Each holder of Common Stock, as such, shall be entitled to one vote for each share of Common Stock held of record by such holder on all matters on which stockholders generally are entitled to vote; <u>provided</u>, <u>however</u>, that, except as otherwise required by law, holders of Common Stock, as such, shall not be entitled to vote on any amendment to this Amended and Restated Certificate of Incorporation (including any Certificate of Designation relating to any series of Preferred Stock) that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to this Amended and Restated Certificate of Incorporation (including any Certificate of Designation relating to any series of Preferred Stock) or pursuant to the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise required by law, holders of a series of Preferred Stock, as such, shall be entitled only to such voting rights, if any, as shall expressly be granted to such holders by this Amended and Restated Certificate of Incorporation (including any Certificate of Designation relating to such series).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to applicable law and the rights, if any, of the holders of any outstanding series of Preferred Stock, dividends may be declared and paid on the Common Stock at such times and in such amounts as the Board of Directors in its discretion shall determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the dissolution, liquidation or winding up of the Corporation, subject to the rights, if any, of the holders of any outstanding series of Preferred Stock, the holders of the Common Stock, as such, shall be entitled to receive the assets of the Corporation available for distribution to its stockholders ratably in proportion to the number of shares held by them. For the avoidance of doubt, a dissolution, liquidation or winding up shall not be deemed to be occasioned by or to include, without limitation, any voluntary consolidation, reorganization, conversion or merger of the Corporation with or into any other corporation or entity or other corporation or entities or a sale, lease, transfer, exchange or conveyance of all or a part of the Corporation's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Shares of Common Stock shall not entitle any holder thereof to any pre-emptive, subscription, redemption or conversion rights.

ARTICLE V

SECTION 1. (a) The business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors. Except as otherwise fixed pursuant to the terms of any outstanding series of Preferred Stock pursuant to this Amended and Restated Certificate of Incorporation (including any Certificate of Designation relating to such series of Preferred Stock), the number of directors of the Corporation shall be fixed from time to time by the Board of Directors. In no event shall a decrease in the number of directors constituting the Board of Directors shorten the term of any incumbent director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The directors, other than those who may be elected by the holders of any series of Preferred Stock voting separately pursuant to this Amended and Restated Certificate of Incorporation (including any Certificate of Designation relating to such series of Preferred Stock), shall be elected by the stockholders entitled to vote thereon at each annual meeting of the stockholders. From the effective date of this Amended and Restated Certificate of Incorporation until the election of the directors at the 2032 annual meeting of stockholders, the directors of the Corporation shall be divided into three classes, designated Class I, Class II and Class III. Each class shall consist, as nearly as may be possible, of one-third of the total number of directors constituting the entire Board of Directors. If the number of directors has changed, any increase or decrease shall be apportioned among the classes so as to maintain the number of directors in each class as nearly equal as possible, and any additional director of any class elected to fill a vacancy resulting from an increase in such class shall hold office for a term that shall coincide with the remaining term of that class. The initial assignment of directors to each such class shall be made by the Board of Directors. The term of office of the initial Class I directors shall expire at the 2027 annual meeting of stockholders. At the 2027 annual meeting of stockholders, the successors of the Class I directors shall be elected for a term expiring at the 2030 annual meeting of stockholders. At the 2030 annual meeting of stockholders, the successors of the Class I directors shall be elected for a term expiring at the 2032 annual meeting of stockholders. The term of office of the initial Class II directors shall expire at the 2028 annual meeting of stockholders. At the 2028 annual meeting of stockholders, the successors of the Class II directors shall be elected for a term expiring at the 2031 annual meeting of stockholders. At the 2031 annual meeting of stockholders, the successors of the Class II directors shall be elected for a term expiring at the 2032 annual meeting of stockholders. The term of office of the initial Class III directors shall expire at the 2029 annual meeting of stockholders. At the 2029 annual meeting of stockholders, the successors of the Class III directors shall be elected for a term expiring at the 2032 annual meeting of stockholders. Each director in each such class shall hold office until his or her respective successor shall have been duly elected and qualified or until his or her earlier resignation or removal. Commencing with the 2032 annual meeting of stockholders, each director shall be elected annually and shall hold office until the next annual meeting of stockholders and until his or her respective successor shall have been duly elected and qualified or until his or her earlier resignation or removal. Pursuant to such procedures, commencing with the 2032 annual meeting of stockholders, the Board of Directors will no longer be classified under Section 141(d) of the DGCL and directors shall no longer be divided into three classes. The election of directors need not be by written ballot.

SECTION 2. Advance notice of nominations for the election of directors shall be given in the manner and to the extent provided in the By-laws of the Corporation.

SECTION 3. (a) Except as otherwise provided for or fixed by or pursuant to the provisions of this Amended and Restated Certificate of Incorporation relating to the rights of the holders of any outstanding series of Preferred Stock (including any Certificate of Designation relating to such series of Preferred Stock), newly created directorships resulting from any increase in the number of directors and any vacancies on the Board of Directors resulting from death, resignation, removal or other cause shall only be filled by the Board of Directors by the affirmative vote of a majority of the remaining directors then in office, even though less than a quorum of the Board of Directors, or by a sole remaining director, or if not so filled, by the stockholders at the next annual meeting thereof. Any director elected in accordance with the first sentence of this Section 3 shall hold office for a term that shall coincide with the remaining term of the class such director is elected to and until such director's successor shall have been duly elected and qualified or until his or her earlier resignation or removal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) From the effective date of this Amended and Restated Certificate of Incorporation until the election of directors at the 2032 annual meeting of stockholders, any director or the entire Board of Directors may only be removed for cause, such removal to require the affirmative vote of shares representing at least a majority of the votes entitled to be cast by the then outstanding shares of all classes and series of capital stock of the Corporation entitled generally to vote on the election of directors of the Corporation. From and after the 2032 annual meeting of stockholders, any director or the entire Board of Directors may be removed with or without cause, and, in either case, such removal shall require the affirmative vote of shares representing at least a majority of the votes entitled to be cast by the then outstanding shares of all classes and series of capital stock of the Corporation entitled generally to vote on the election of directors of the Corporation. Notwithstanding the foregoing, whenever holders of outstanding shares of one or more series of Preferred Stock voting separately are entitled to elect directors of the Corporation pursuant to the provisions of this Amended and Restated Certificate of Incorporation (including any Certificate of Designation relating to such series of Preferred Stock), any such director of the Corporation so elected may be removed in accordance with this Amended and Restated Certificate of Incorporation (including such Certificate of Designation).

ARTICLE VI

Subject to the rights of the holders of any outstanding series of Preferred Stock, any action required or permitted to be taken by the stockholders of the Corporation must be effected at a duly called annual or special meeting of stockholders of the Corporation and may not be effected by any consent in writing by such stockholders. Except as otherwise required by law and subject to the rights of the holders of any outstanding series of Preferred Stock, special meetings of stockholders of the Corporation may only be called by the Chairman of the Board of Directors or the Board of Directors pursuant to a resolution approved by a majority of the entire Board of Directors (the entire Board of Directors being the total number of authorized directors, whether or not there exist any vacancies or unfilled previously authorized directorships) or as otherwise provided in the By-laws of the Corporation.

ARTICLE VII

In furtherance and not in limitation of the powers conferred upon it by law, the Board of Directors is expressly authorized to adopt, repeal, alter or amend the By-laws of the Corporation by the vote of a majority of the entire Board of Directors. In addition to any requirements of law and any other provision of this Amended and Restated Certificate of Incorporation (and notwithstanding the fact that a lesser percentage may be specified by law), the affirmative vote of the holders of at least a majority of the combined voting power of the then outstanding shares of all classes and series of capital stock of the Corporation entitled generally to vote in the election of directors of the Corporation, voting together as a single class, shall be required for stockholders to adopt, amend, alter or repeal any provision of the By-laws of the Corporation.

ARTICLE VIII

The Corporation reserves the right to amend, alter or repeal any provision contained in this Amended and Restated Certificate of Incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are subject to this reservation.

ARTICLE IX

SECTION 1. To the fullest extent permitted by the DGCL as it now exists or may hereafter be amended, no director or officer of the Corporation shall be personally liable to the Corporation or its stockholders for monetary damages arising from a breach of fiduciary duty as a director or officer, as applicable. If the DGCL is amended after approval by the stockholders of this Article IX to authorize corporate action further eliminating or limiting the personal liability of directors or officers, then the liability of a director or officer of the Corporation shall be eliminated or limited to the fullest extent permitted by the DGCL as so amended, automatically, and without further action, upon the date of such amendment.

SECTION 2. To the fullest extent that the DGCL or any other law of the State of Delaware as it exists or as it may hereafter be amended permits, including to the extent that such law or amendment permits the Corporation to provide broader indemnification rights than permitted prior to such law or amendment, the Corporation may provide indemnification of (and advancement of expenses to) its current and former directors, officers and agents (and any other persons to which the DGCL permits the Corporation to provide indemnification) through By-law provisions, agreements with such agents or other persons, votes of stockholders or disinterested directors or otherwise.

SECTION 3. No amendment to or repeal of any Section of this Article IX, nor the adoption of any provision of this Amended and Restated Certificate of Incorporation inconsistent with this Article IX, shall eliminate or reduce the effect of this Article IX in respect of any matter occurring, or any action or proceeding accruing or arising, prior to such amendment, repeal or adoption of an inconsistent provision.

ARTICLE X

SECTION 1. Unless the Corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for any current or former stockholder (including a current or former beneficial owner) to bring (a) any derivative action, suit or proceeding brought on behalf of the Corporation, (b) any action, suit or proceeding asserting a claim that is based upon a violation of a duty owed by any current or former director, officer or stockholder of the Corporation to the Corporation or the Corporation's stockholders, (c) any action, suit or proceeding asserting a claim against the Corporation, or any current or former director, officer or stockholder of the Corporation, arising pursuant to any provision of the DGCL (or any successor provision thereto), this Amended and Restated Certificate of Incorporation or the By-laws of the Corporation (as either may be amended from time to time), (d) any action, suit or proceeding asserting a claim related to or involving the Corporation that is governed by the internal affairs doctrine or (e) any action, suit or proceeding asserting an "internal corporate claim" as that term is defined in Section 115 of the DGCL shall be the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have, or declines to accept, jurisdiction, the federal court for the District of Delaware). To the fullest extent permitted by law, if any action the subject matter of which is within the scope of this Section is filed in a court other than the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have, or declines to accept, jurisdiction, the federal court for the District of Delaware) (a "<u>foreign action</u>") by or on behalf of any current or former stockholder (including a current or former beneficial owner), such stockholder shall be deemed to have consented to (x) the personal jurisdiction of the Court of Chancery (or the federal court for the District of Delaware, as applicable) in connection with any action brought in any such court to enforce this Section and (y) having service of process made upon such stockholder in any such action by service upon such stockholder's counsel in the foreign action as agent for such stockholder.

SECTION 2. Unless the Corporation consents in writing to the selection of an alternative forum, the federal district courts of the United States shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended.

SECTION 3. Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Article X. Failure to enforce the foregoing provisions would cause the Corporation irreparable harm and the Corporation shall be entitled to equitable relief, including injunction and specific performance, to enforce the foregoing provisions.

ARTICLE XI

The Corporation is to have perpetual existence.

ARTICLE XII

If any provision (or any part thereof) of this Amended and Restated Certificate of Incorporation shall be held invalid, illegal or unenforceable as applied to any circumstance for any reason whatsoever: (i) the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this Amended and Restated Certificate of Incorporation (including, without limitation, each portion of any section of this Amended and Restated Certificate of Incorporation containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and (ii) to the fullest extent possible, the provisions of this Amended and Restated Certificate of Incorporation (including, without limitation, each such portion of any section containing any such provision held to be invalid, illegal or unenforceable) shall be construed so as to permit the Corporation to protect its directors, officers, employees and agents from personal liability in respect of their good faith service or for the benefit of the Corporation to the fullest extent permitted by law.

IN WITNESS WHEREOF, the undersigned has executed this Amended and Restated Certificate of Incorporation on the date set forth below.

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| ADI GLOBAL DISTRIBUTION INC. | ADI GLOBAL DISTRIBUTION INC. |
| By: |  |
|  | Name: |
|  | Title: |
| Date: |  |

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## Exhibit 3.2

**Exhibit 3.2**

**ADI GLOBAL DISTRIBUTION INC.**

**AMENDED AND RESTATED BY-LAWS**

**Effective as of [ ], 2026**

Article I<u><br>Offices</u>

**SECTION 1.1** <u>Registered Office</u>. The registered office of ADI Global Distribution Inc. (hereinafter, the "<u>Corporation</u>") in the State of Delaware shall be at 251 Little Falls Drive, Wilmington, New Castle County, Delaware 19808, and the registered agent shall be Corporation Service Company, or such other office or agent as the Board of Directors of the Corporation (the "<u>Board</u>") shall from time to time select.

SECTION 1.2 <u>Other Offices</u>. The Corporation may also have an office or offices, and keep the books and records of the Corporation, except as may otherwise be required by law, at such other place or places, either within or outside of the State of Delaware, as the Board may from time to time determine or the business of the Corporation may require.

Article II<u><br>Meetings of Stockholders</u>

SECTION 2.1 <u>Place of Meetin</u>g. All meetings of the stockholders of the Corporation (the "<u>stockholders</u>") shall be at a place either within or outside of the State of Delaware, or by means of remote communication, to be determined by the Board and as specified in the notice of meeting. In the absence of such a determination, a meeting of stockholders shall be held at the principal executive office of the Corporation.

SECTION 2.2 <u>Annual Meetin</u>gs. The annual meeting of the stockholders for the election of directors and for the transaction of such other business as may properly come before the meeting shall be held on such date and at such hour as shall from time to time be fixed by the Board. Any previously scheduled annual meeting of the stockholders may be postponed, rescheduled or cancelled by action of the Board taken prior to the time previously scheduled for such annual meeting of the stockholders.

SECTION 2.3 <u>Special Meetin</u>gs.

&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) Except as otherwise required by law or the Amended and Restated Certificate of Incorporation of the Corporation (the "<u>Certificate</u>"), and subject to the rights of the holders of any outstanding series of Preferred Stock, special meetings of the stockholders for any purpose or purposes may be called only by (i) the Chairman of the Board, (ii) a majority of the Whole Board (as defined below), or (iii) subject to the provisions of this Section 2.3, the Secretary (as defined below) upon the written request (a "<u>Stockholder Requested Special Meeting</u>") of one or more stockholders of record of the Corporation that together hold for their own account or on behalf of others, beneficial ownership of at least a 25% "net long position" of the outstanding shares of the Corporation's common stock (the "<u>Requisite Percent</u>") for at least 30 days as of the Delivery Date (as defined below). Only such business as is specified in the Corporation's notice of any special meeting of stockholders shall come before such meeting; provided, that the Board shall have the authority in its discretion to submit additional matters to the stockholders and to cause other business to be transacted pursuant to the Corporation's notice of meeting for any Stockholder Requested Special Meeting.

For purposes of determining the Requisite Percent, "net long position" shall be determined with respect to each requesting stockholder in accordance with the definition thereof set forth in Rule 14e-4 under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"); provided, that (x) for purposes of such definition, (1) "the date that a tender offer is first publicly announced or otherwise made known by the bidder to the stockholders of the security to be acquired" shall be the date of the relevant Special Meeting Request (as defined below), (2) the "highest tender offer price or stated amount of the consideration offered for the subject security" shall refer to the closing sales price of the Corporation's common stock on the New York Stock Exchange (or such other securities exchange designated by the Board if the Corporation's common stock is not listed for trading on the New York Stock Exchange) on such date (or, if such date is not a trading day, the next succeeding trading day), (3) the "person whose securities are the subject of the offer" shall refer to the Corporation, and (4) a "subject security" shall refer to the outstanding common stock of the Corporation; and (y) the "net long position" of such stockholder shall be reduced by the number of shares of common stock of the Corporation as to which the Board determines that such stockholder does not, or will not, have the right to vote or direct the vote at the special meeting or as to which the Board determines that such stockholder has entered into any derivative or other agreement, arrangement or understanding that hedges or transfers, in whole or in part, directly or indirectly, any of the economic consequences of ownership of such shares.

Whether the requesting stockholders have complied with the requirements of this Section 2.3 shall be determined in good faith by the Board.

&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) In order for a Stockholder Requested Special Meeting to be called, one or more requests for a special meeting (each, a "<u>Special Meeting Request</u>," and collectively, the "<u>Special Meeting Requests</u>") must be signed by the Requisite Percent of stockholders submitting such request and by each of the beneficial owners, if any, on whose behalf the Special Meeting Request is being made and must be delivered to the Secretary. The Special Meeting Request(s) shall be delivered to or mailed to and received by the Secretary at the principal executive offices of the Corporation. Each Special Meeting Request shall (i) set forth a statement of the specific purpose(s) of the meeting and the matters proposed to be acted upon at such meeting, (ii) bear the date of signature of each such stockholder signing the Special Meeting Request, (iii) set forth (1) the name and address, as they appear in the Corporation's books, of each stockholder signing such request and the beneficial owners, if any, on whose behalf such request is made, and (2) the class, if applicable, and the number of shares of the Corporation's common stock that are owned of record and beneficially (within the meaning of Rule 13d-3 under the Exchange Act) by each such stockholder and the beneficial owners, if any, on whose behalf such request is made, (iv) include documentary evidence that the stockholders requesting the special meeting own the Requisite Percent as of the date that the Special Meeting Request is delivered to the Secretary (the "<u>Delivery Date</u>"); provided, that if the stockholders of record submitting the Special Meeting Request are not the beneficial owners of the shares constituting all or part of the Requisite Percent, then to be valid, the Special Meeting Request must also include documentary evidence (or, if not simultaneously provided with the Special Meeting Request, such documentary evidence must be delivered to the Secretary within 10 days after the Delivery Date) that the beneficial owners on whose behalf the Special Meeting Request is made beneficially own such shares as of the Delivery Date, (v) an agreement by each of the stockholders requesting the special meeting and each beneficial owner, if any, on whose behalf the Special Meeting Request is being made to notify the Corporation promptly in the event of any decrease in the "net long position" held by such stockholder or beneficial owner following the delivery of such Special Meeting Request and prior to the special meeting and an acknowledgement that any such decrease shall be deemed to be a revocation of such Special Meeting Request by such stockholder or beneficial owner to the extent of such reduction, (vi) contain all of the information required by (A) Section 2.7(c) if the purpose of the Special Meeting Request relates to any business other than nominations for election of directors and (B) Section 3.3 if the purpose of the Special Meeting Request relates to nominations for election of directors, including, in each case, with respect to each requesting stockholder. The Corporation will provide the requesting stockholders with notice of the record date for the determination of stockholders entitled to vote at the special meeting. Each requesting stockholder is required to update the notice delivered pursuant to this Section 2.3(b) not later than 10 business days after such record date to provide any material changes in the foregoing information as of such record date and, with respect to the information required under clause (iv) above, also as of a date not more than five business days before the scheduled date of the Stockholder Requested Special Meeting. Any requesting stockholder may revoke his, her or its Special Meeting Request at any time prior to the special meeting by written revocation delivered to the Secretary at the principal executive offices of the Corporation. If at any time after such revocation (whether by specific written revocation by the stockholder or pursuant to clause (v) of this Section 2.3(b)) there are unrevoked valid Special Meeting Requests representing in the aggregate less than the Requisite Percent, then the requesting stockholder(s) or beneficial owner(s) shall be deemed to have withdrawn such request (in connection with which the Board may cancel the meeting).

In determining whether a special meeting of stockholders has been requested by stockholders holding in the aggregate at least the Requisite Percent, multiple Special Meeting Requests delivered to the Secretary will be considered together only if (i) each Special Meeting Request identifies substantially the same purpose or purposes of the special meeting and substantially the same matters proposed to be acted on at the special meeting (in each case as determined in good faith by the Board), and (ii) such Special Meeting Requests have been delivered to the Secretary within 60 days of the earliest dated Special Meeting Request.

&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) Except as provided in the next sentence, any special meeting of stockholders shall be held at such place (or remotely), and at such time as the Board shall fix; provided, however, that the date of any such Stockholder Requested Special Meeting shall be not more than 90 days after the Delivery Date. The Board may postpone or reschedule any such meeting. Notwithstanding the foregoing, the Secretary shall not be required to call a special meeting of stockholders if (i) the Board calls an annual meeting of stockholders, or a special meeting of stockholders at which a Similar Item (as defined below) is to be presented pursuant to the notice of such meeting, in either case to be held not later than 60 days after the Delivery Date; (ii) the Delivery Date is during the period commencing ninety 90 days prior to the first anniversary of the date of the immediately preceding annual meeting and ending on the earlier of (1) the date of the next annual meeting and (2) 30 days after the first anniversary of the date of the immediately preceding annual meeting; or (iii) the Special Meeting Request(s) (1) contain an identical or substantially similar item (as determined in good faith by the Board, a "Similar Item") to an item that was presented at any meeting of stockholders held not more than 120 days before the Delivery Date (and for purposes of this clause (c), the election of directors shall be deemed a Similar Item with respect to all items of business involving the election or removal of directors); (2) relate to an item of business that is not a proper subject for action by the stockholders under applicable law and this Section 2.3; (3) were made in a manner that involved a violation of Regulation 14A under the Exchange Act or other applicable law; or (4) do not comply with the provisions of this Section 2.3.

&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) Notwithstanding the foregoing provisions of this Section 2.3, if none of the stockholders who submitted a Special Meeting Request appears at or sends a duly authorized representative to the Stockholder Requested Special Meeting to present the matters submitted by such stockholders for consideration and that were specified in the Special Meeting Request, the Corporation need not present such matters for a vote at such meeting.

SECTION 2.4 <u>Notice of Meetin</u>gs. Except as otherwise provided by law, notice, including by electronic transmission in the manner provided by the General Corporation Law of the State of Delaware (the "<u>DGCL</u>"), of each meeting of the stockholders, whether annual or special, shall be given by the Corporation not less than 10 days nor more than 60 days before the date of the meeting to each stockholder of record entitled to notice of the meeting. If mailed, such notice shall be deemed given when deposited in the United States mail, postage prepaid, directed to the stockholder at such stockholder's address as it appears on the records of the Corporation. Each such notice shall state the place (or, if applicable, that the meeting will be held remotely), the date and the hour of the meeting, and, in the case of a special meeting, the purpose or purposes for which the meeting is called. Notice of any meeting of the stockholders shall not be required to be given to any stockholder who shall attend such meeting in person or by proxy without protesting, prior to or at the commencement of the meeting, the lack of proper notice to such stockholder, or who shall waive notice thereof as provided in Article X of these By-laws. Notice of adjournment of a meeting of the stockholders need not be given if the time and place, if any, to which it is adjourned are announced at such meeting, unless the adjournment is for more than 30 days or, after adjournment, a new record date is fixed for the adjourned meeting.

SECTION 2.5 <u>Quorum</u>. Except as otherwise provided by law or by the Certificate, the holders of a majority in voting power of the shares of capital stock of the Corporation entitled to vote at the meeting, present in person or by proxy, shall constitute a quorum at any meeting of the stockholders; p<u>rovided</u>, <u>however</u>, that in the case of any vote to be taken by classes or series, the holders of a majority in voting power of the shares of any such class or series of capital stock of the Corporation entitled to vote at the meeting, present in person or by proxy, shall constitute a quorum of such class or series. A quorum, once established, shall not be broken by the withdrawal of enough votes to leave less than a quorum.

SECTION 2.6 <u>Adjournments</u>. The chairman of the meeting or the holders of a majority in voting power of the shares of capital stock of the Corporation entitled to vote and who are present in person or by proxy may adjourn the meeting from time to time whether or not a quorum is present. In the event that a quorum does not exist with respect to any vote to be taken by a particular class or series, the chairman of the meeting or the holders of a majority in voting power of the shares of such class or series who are present in person or by proxy may adjourn the meeting with respect to the vote(s) to be taken by such class or series. At any such adjourned meeting at which a quorum may be present, any business may be transacted which might have been transacted at the meeting as originally called.

SECTION 2.7 <u>Order of Business</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) At each meeting of the stockholders, the Chairman of the Board or, in the absence of the Chairman of the Board, the Chief Executive Officer or, in the absence of the Chairman of the Board and the Chief Executive Officer, such person as shall be selected by the Board, shall act as chairman of the meeting. The order of business at each such meeting shall be as determined by the chairman of the meeting. The chairman of the meeting shall have the right and authority to prescribe such rules, regulations and procedures and to do all such acts and things as are necessary or desirable for the proper conduct of the meeting, including, without limitation, the establishment of procedures for the maintenance of order and safety, limitations on the time allotted to questions or comments on the affairs of the Corporation, restrictions on entry to such meeting after the time prescribed for the commencement thereof and the opening and closing of the voting polls.

&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) At any annual meeting of the stockholders, only such business (other than nominations for election of directors, which are governed by Sections 3.3 and 3.15) shall be conducted as shall have been brought before the annual meeting (i) by or at the direction of the chairman of the meeting or (ii) by any stockholder who is a holder of record at the time of the giving of the notice provided for in this Section 2.7, who is entitled to vote at the meeting and who complies with the procedures set forth in this Section 2.7 (such business, "<u>Stockholder Business</u>"). This Section 2.7 is the exclusive means by which a stockholder may bring such business before a meeting of stockholders.

&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) For business (other than nominations for election of directors, which are governed by Sections 3.3 and 3.15) properly to be brought before an annual meeting of stockholders by a stockholder, the stockholder must have given timely notice thereof (a "<u>Notice of Business</u>") in proper written form to the Secretary of the Corporation (the "<u>Secretar</u>y"). To be timely, a Notice of Business must be delivered to or mailed and received by the Secretary at the principal executive offices of the Corporation not less than 90 days nor more than 120 days prior to the first anniversary of the date of the immediately preceding annual meeting as first specified in the Corporation's notice of meeting (without regard to any postponements or adjournments of such meeting after such notice was first sent); p<u>rovided</u>, <u>however</u>, that in the event that the date of the annual meeting is more than 30 days earlier or more than 60 days later than such anniversary date, a Notice of Business to be timely must be so delivered or received not earlier than the 120th day prior to such annual meeting and not later than the close of business on the later of the 90th day prior to such annual meeting or the 10th day following the day on which public announcement of the date of such meeting is first made; p<u>rovided</u>, <u>further</u>, that for the purpose of calculating the timeliness of a Notice of Business for the 2027 annual meeting of stockholders, the date of the immediately preceding annual meeting shall be deemed to be [•], 2026. In no event shall the public announcement of an adjournment or postponement, or an adjournment or postponement, of a meeting commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above. To be in proper written form, the Notice of Business must set forth:

&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;(i) the name and address of each stockholder proposing to bring business before the annual meeting (each, a "<u>Proponent</u>"), as they appear on the Corporation's books;

&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;(ii) the name and address of each Stockholder Associated Person (as defined 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) as to each Proponent and each Stockholder Associated Person, (A) the class or series and number of shares of stock directly or indirectly held of record and beneficially by such Proponent and Stockholder Associated Person, (B) a description of any agreement, arrangement or understanding, direct or indirect, with respect to the business to be brought before the annual meeting, between or among any Proponent and any Stockholder Associated Person, or between or among any Proponent and/or Stockholder Associated Person, on the one hand, and any other person or entity on the other hand, (C) a description of any agreement, arrangement or understanding (including any derivative or short positions, profit interests, options, hedging transactions and borrowed or loaned shares) that has been entered into, directly or indirectly by, or on behalf of, any Proponent or any Stockholder Associated Person, the effect or intent of which is to mitigate loss to, manage risk or benefit of share price changes for, or increase or decrease the voting power of, any Proponent or any Stockholder Associated Person with respect to shares of stock of the Corporation (a "<u>Derivative</u>"), (D) a description in reasonable detail of any proxy (including revocable proxies), contract, arrangement, understanding or other relationship pursuant to which any Proponent or any Stockholder Associated Person has a right to vote any shares of stock of the Corporation and (E) any profit-sharing or any performance-related fees (other than an asset-based fee) that any Proponent or any Stockholder Associated Person is entitled to, based on any increase or decrease in the value of stock of the Corporation or Derivatives thereof, if any. The information specified in Section 2.7(c)(i) to (iii) of this Article II is referred to herein as "<u>Stockholder Information</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a representation that each Proponent is a holder of record of stock of the Corporation entitled to vote at the annual meeting and intends to appear in person or by proxy at the annual meeting to propose such proposed business;

&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;(v) a brief description of the business desired to be brought before the annual meeting, the text of the proposal (including the text of any resolutions proposed for consideration and, if such business includes a proposal to amend the By-laws, the language of the proposed amendment) and the reasons for conducting such business at the annual meeting;

&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;(vi) any material interest of any Proponent and any Stockholder Associated Person in such proposed business;

&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;(vii) a representation as to whether the Proponent(s) intend (A) to deliver a proxy statement and form of proxy to holders of at least the percentage of the Corporation's outstanding capital stock required to approve or adopt such Stockholder Business or (B) otherwise to solicit proxies from stockholders in support of such Stockholder Business;

&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;(viii) all other information that would be required to be filed with the U.S. Securities and Exchange Commission ("<u>SEC</u>") if the Proponent(s) or Stockholder Associated Persons were participants in a solicitation subject to Section 14 of the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>") (or any successor of such Section); and

&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;(ix) a representation that each Proponent shall provide any other information reasonably requested by the Corporation.

&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) In addition, each Proponent shall affirm as true and correct the information provided to the Corporation in the Notice of Business or at the Corporation's request pursuant to Section 2.7(c)(ix) of this Article II (and shall update or supplement such information as needed so that such information shall be true and correct) as of (i) the record date for the meeting and (ii) the date that is 10 business days prior to the announced date of the annual meeting to which the Notice of Business relates. Such affirmation, update and/or supplement must be delivered personally or mailed to, and received at the principal executive offices of the Corporation, addressed to the Secretary, by no later than five business days after the applicable date specified in clause (i) and (ii) of the foregoing sentence.

&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) The person presiding over the meeting shall, if the facts warrant, determine and declare to the meeting, that business was not properly brought before the meeting in accordance with the procedures set forth in this Section 2.7, and, if he or she should so determine, he or she shall so declare to the meeting and any such business not properly brought before the meeting shall not be transacted.

&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) If the Proponent (or a qualified representative of the Proponent) does not appear at the meeting of stockholders to present the Stockholder Business such business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Corporation. A "qualified representative" of the Proponent or any stockholder means a person who is a duly authorized officer, manager or partner of such stockholder or has been authorized by a writing executed by such stockholder or an electronic transmission delivered by such stockholder to act for such stockholder as proxy with respect to the specific matter to be considered at the meeting of stockholders and such person must produce such writing or electronic transmission, or a reliable reproduction (to the reasonable satisfaction of the person presiding over the meeting) of the writing or electronic transmission, at the meeting of stockholders prior to the taking of action by such person on behalf of the stockholder.

&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) "<u>Stockholder Associated Person</u>" means with respect to any Proponent or Nominating Stockholder, (i) any other beneficial owner of stock of the Corporation owned of record or beneficially by such Proponent or Nominating Stockholder and (ii) any person that directly, or indirectly through one or more intermediaries, controls, is controlled by, is under common control with such Proponent or Nominating Stockholder.

&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) "<u>Control</u>" (including the terms "controlling," "controlled by" and "under common control with") means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract or otherwise.

&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) The notice requirements of this Section 2.7 shall be deemed satisfied with respect to stockholder proposals that have been properly brought under Rule 14a-8 of the Exchange Act (or any such successor rule) and that are included in a proxy statement that has been prepared by the Corporation to solicit proxies for such annual meeting. Further, nothing in this Section 2.7 shall be deemed to affect any rights of the holders of any series of preferred stock of the Corporation pursuant to any applicable provision of the Certificate.

SECTION 2.8 <u>List of Stockholders</u>. It shall be the duty of the Secretary or other officer who has charge of the stock ledger to prepare and make, at least 10 days before each meeting of the stockholders, a complete list of the stockholders entitled to vote thereat, arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in such stockholder's name. Such list shall be produced and kept available at the times and places required by law.

SECTION 2.9 <u>Voting</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) Except as otherwise provided by law or by the Certificate, each stockholder of record of any series of Preferred Stock shall be entitled at each meeting of the stockholders to such number of votes, if any, for each share of such stock as may be fixed in the Certificate (or relevant Certificate of Designation) or in the resolution or resolutions adopted by the Board providing for the issuance of such stock, and each stockholder of record of Common Stock shall be entitled at each meeting of the stockholders to one vote for each share of such stock, in each case, registered in such stockholder's name on the books of the Corporation:

&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;(i) on the date fixed pursuant to Section 7.6 of these By-laws as the record date for the determination of stockholders entitled to notice of and to vote at such meeting; or

&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;(ii) if no such record date shall have been so fixed, then at the close of business on the day before the day on which notice of such meeting is given, or, if notice is waived, at the close of business on the day before the day on which the meeting is held.

&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) Each stockholder entitled to vote at any meeting of the stockholders may authorize another person or persons to act for such stockholder by proxy. Any such proxy shall be delivered to the secretary of such meeting at or prior to the time designated for holding such meeting, but in any event not later than the time designated in the order of business for so delivering such proxies. No such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. Any stockholder directly or indirectly soliciting proxies from other stockholders must use a proxy card color other than white, which shall be reserved for the exclusive use by the Board.

&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) Except as otherwise required by law and except as otherwise provided in the Certificate, these By-laws, the rules or regulations of any stock exchange applicable to the Corporation, or any law, rule or regulation applicable to the Corporation or its securities, at each meeting of the stockholders, all corporate actions to be taken by vote of the stockholders shall be authorized by holders of a majority in voting power of the shares of capital stock of the Corporation entitled to vote thereon and who are present in person or represented by proxy, and where a separate vote by class or series is required, by holders of a majority in voting power of the shares of such class or series who are entitled to vote thereon and are present in person or represented by proxy shall be the act of such class or series.

&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) Unless required by law or determined by the chairman of the meeting to be advisable, the vote on any matter, including, without limitation, the election of directors, need not be by written ballot.

SECTION 2.10 <u>Inspectors</u>. The chairman of the meeting shall appoint one or more inspectors to act at any meeting of the stockholders. Such inspectors shall perform such duties as shall be required by law or specified by the chairman of the meeting. Inspectors need not be stockholders. No director or nominee for the office of director shall be appointed such inspector.

SECTION 2.11 <u>Public Announcements</u>. For the purpose of Section 2.7 of this Article II and Section 3.2(d), "p<u>ublic announcement</u>" shall mean disclosure (i) in a press release reported by the Dow Jones Newswire, Business Wire, Reuters Information Service or any similar or successor news wire service or (ii) in a communication distributed generally to stockholders and in a document publicly filed by the Corporation with the SEC pursuant to Sections 13, 14 or 15(d) of the Exchange Act.

Article III<u><br>Board of Directors</u>

SECTION 3.1 <u>General Powers</u>. The business and affairs of the Corporation shall be managed by or under the direction of the Board, which may exercise all such powers of the Corporation (or grant authority to exercise such powers) and do all such lawful acts and things as are not by law or by the Certificate directed or required to be exercised or done by the stockholders.

SECTION 3.2 <u>Number, Qualification and Election</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) The number of directors constituting the Whole Board shall be determined in accordance with the Certificate. The term "<u>Whole Board</u>" shall mean the total number of authorized directors, whether or not there exist any vacancies or unfilled previously authorized directorships. The terms of office of directors shall be governed by the Certificate.

&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) Each director shall be at least 21 years of age. Directors need not be stockholders of the Corporation. No person shall qualify for service as a director of the Corporation (i) if he or she is a party to any compensatory, payment, indemnification or other financial agreement, arrangement or understanding with any person or entity other than the Corporation, or has received any such compensation or other payment from any person or entity other than the Corporation, in each case in connection with candidacy or service as a director of the Corporation, unless he or she discloses such compensatory, payment or other financial agreement, arrangement or understanding, or receipt of any such compensation or other payment, to the Corporation pursuant to the requirements and procedures set forth in Section 3.3(a)(iv) of this Article III as if such person were a Stockholder Nominee thereunder or (ii) unless such person agrees to submit upon appointment, election or re-nomination to the Board an irrevocable resignation effective upon (x) such person's failure to receive a majority of the votes cast in an uncontested election and (y) the acceptance of such resignation by the Board.

&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) In any uncontested election of directors, each person receiving a majority of the votes cast shall be deemed elected. For purposes of this paragraph, a "majority of the votes cast" shall mean that the number of votes cast "for" a director must exceed the number of votes cast "against" that director (with "abstentions" and "broker non-votes" not counted as a vote cast with respect to that director). In any contested election of directors, the persons receiving a plurality of the votes cast, up to the number of directors to be elected in such election, shall be deemed elected. A contested election is one in which, as of the date that is 14 calendar days in advance of the date the Corporation files its definitive proxy statement with the SEC (regardless of whether or not it is thereafter revised or supplemented), the number of nominees exceeds the number of directors to be elected. An uncontested election is any election that is not a contested election.

&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) With respect to a resignation provided pursuant to Section 3.2(b)(ii), the Board shall consider such resignation and may either (i) accept the resignation or (ii) reject the resignation and seek to address the underlying cause(s) of the majority-withheld vote. While the Board may delegate to a committee the authority to assist the Board in its review of the matter, the Board shall decide whether to accept or reject the resignation within 90 days following the certification of the stockholder vote. Once the Board makes this decision, the Corporation will promptly make a public announcement of the Board's decision in the manner described in Section 2.11 or pursuant to a filing made with the SEC. If the Board rejects the resignation, the public announcement will include a statement regarding the reasons for its decision.

&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) The chairman of the nominating and governance committee established pursuant to Section 4.1 will have the authority to manage the Board's review of the resignation. In the event it is the chairman of the nominating and governance committee who received a majority-withheld vote, the independent directors who did not receive majority-withheld votes shall select a director or group of directors to manage the process, and such director or directors shall have the authority otherwise delegated to the chairman of the nominating and governance committee by this Section 3.2. Any director whose resignation is being considered as a result of a majority-withheld vote shall not participate in the committee's or the Board's deliberations or vote on whether to accept or reject his or her resignation; p<u>rovided</u> that any director, regardless of whether such director received a majority-withheld vote, may participate in such deliberations or vote regarding another director's resignation.

SECTION 3.3 <u>Notification of Nominations</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) Subject to the rights of the holders of any outstanding series of Preferred Stock, nominations for the election of directors may be made by the Board or by any stockholder pursuant to (i) this Section 3.3 who is a stockholder of record at the time of giving of the notice of nomination provided for in this Section 3.3 and who is entitled to vote for the election of directors or (ii) Section 3.15. This Section 3.3 and Section 3.15 are the exclusive means by which a stockholder may nominate a person for election to the Board. Any stockholder of record entitled to vote for the election of directors at a meeting may nominate persons for election as directors only if timely written notice (a "<u>Notice of Nomination</u>") of such stockholder's intent to make such nomination is given in proper written form to the Secretary. To be timely, a Notice of Nomination must be delivered to or mailed and received at the principal executive offices of the Corporation (i) with respect to an election to be held at an annual meeting of the stockholders, not less than 90 days nor more than 120 days prior to the first anniversary of the date of the immediately preceding annual meeting as first specified in the Corporation's notice of meeting (without regard to any postponements or adjournments of such meeting after such notice was first sent); p<u>rovided</u>, <u>however</u>, that in the event that the date of the annual meeting is more than 30 days earlier or more than 60 days later than such anniversary date, a Notice of Nomination to be timely must be so delivered or received not earlier than the 120th day prior to such annual meeting and not later than the close of business on the later of the 90th day prior to such annual meeting or the 10th day following the day on which public announcement of the date of such meeting is first made; p<u>rovided</u>, <u>further</u>, that for the purpose of calculating the timeliness of stockholder notices for the 2027 annual meeting of stockholders, the date of the immediately preceding annual meeting shall be deemed to be [•], 2026 and (ii) with respect to an election to be held at a special meeting of the stockholders for the election of directors, not earlier than the 90th day prior to such special meeting and not later than the close of business on the later of the 60th day prior to such special meeting or the 10th day following the day on which public announcement is first made of the date of the special meeting. In no event shall the public announcement of an adjournment or postponement, or an adjournment or postponement, of a meeting commence a new time period (or extend any time period) for the giving of a stockholder's notice as described above. To be in proper written form, the Notice of Nomination shall set forth:

&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;(i) the Stockholder Information with respect to each stockholder nominating persons for election to the Board (each, a "<u>Nominating Stockholder</u>") and each Stockholder Associated Person;

&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;(ii) a representation that each Nominating Stockholder is a holder of record of stock of the Corporation entitled to vote at the meeting and intends to appear in person or by proxy at the meeting to propose such nomination;

&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;(iii) all information regarding each Nominating Stockholder, each nominee (each, a "<u>Stockholder Nominee</u>") and each Stockholder Associated Person that would be required to be disclosed in a solicitation of proxies subject to Section 14 of the Exchange 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) (A) each Stockholder Nominee's written consent to being named in any proxy materials as a nominee and to serving as a director if elected; (B) a completed and duly executed written questionnaire completed and signed by each Stockholder Nominee with respect to the background, qualifications and independence of such Stockholder Nominee (in the form provided by the Secretary upon written request); (C) a completed and duly executed written questionnaire with respect to the background and qualification with respect to such Nominating Stockholder and any other person or entity on whose behalf, directly or indirectly, the nomination is being made (in the form provided by the Secretary upon written request); and (D) each Stockholder Nominee's written representation and agreement (in the form provided by the Secretary upon written request), (i) that if elected as a director of the Corporation, such person will submit an irrevocable resignation effective upon (x) such person's failure to receive a majority of the votes cast in an uncontested election and (y) the acceptance of such resignation by the Board, (ii) that such person currently intends to serve as a director for the full term for which such person is standing for election, (iii) that such person is not and will not become party to any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how such person, if elected as a director of the Corporation, will act or vote on any issue or question (a "<u>Voting Commitment</u>") that has not been disclosed to the Corporation or any Voting Commitment that could limit or interfere with such person's ability to comply, if elected as a director of the Corporation, with such person's fiduciary duties under applicable law, (iv) that such person is not and will not become a party to any agreement, arrangement, or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement, or indemnification in connection with service or action as a director that has not been disclosed to the Corporation, and (v) that in the person's individual capacity and on behalf of any person or entity on whose behalf the nomination is being made, would be in compliance, if elected as a director of the Corporation, and will comply with all applicable corporate governance, conflict of interest, confidentiality and stock ownership and trading policies and guidelines of the Corporation, and any other Corporation policies and guidelines applicable to Corporation directors;

&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;(v) a description of all direct and indirect compensation and other material monetary agreements, arrangements and understandings during the past three years, and any other material relationships, between or among a Stockholder Nominee, Nominating Stockholder, Stockholder Associated Person or others acting in concert therewith, including all information that would be required to be disclosed pursuant to Rule 404 promulgated under Regulation S-K (or any such successor rule) if such Stockholder Nominee, Nominating Stockholder, Stockholder Associated Person or any person acting in concert therewith, were the "registrant" for purposes of such rule and the Stockholder Nominee were a director or executive of such registrant;

&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;(vi) a duly executed representation as to whether the Nominating Stockholder(s) intend (A) to deliver a proxy statement and form of proxy to holders of at least the percentage of the Corporation's outstanding capital stock required to approve the nomination or (B) otherwise to solicit proxies from stockholders in support of such nomination;

&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;(vii) all other information that would be required to be filed with the SEC if the Nominating Stockholder(s) and Stockholder Associated Person were participants in a solicitation subject to Section 14 of the Exchange Act (or any such successor section); and

&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;(viii) a duly executed representation that each Nominating Stockholder shall provide any other information reasonably requested by the Corporation.

&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) In addition, each Nominating Stockholder shall affirm as true and correct the information provided to the Corporation in the Notice of Nomination or, at the Corporation's request, such information provided pursuant to Section 3.3(a) (viii) of this Article III (and shall update or supplement such information as needed so that such information shall be true and correct) as of (i) the record date for the meeting and (ii) the date that is 10 business days prior to the announced date of the meeting to which the Notice of Nomination relates. Such affirmation, update and/or supplement must be delivered personally or mailed to, and received at the principal executive offices of the Corporation, addressed to the Secretary, by no later than five business days after the applicable date specified in clause (i) and (ii) of the foregoing sentence. A Nominating Stockholder who intends to solicit proxies in support of director nominees other than the Corporation's director nominees and who has delivered a Notice of Nomination pursuant to this Section 3.3 shall promptly certify to the Corporation, and notify the Corporation in writing, that such Nominating Stockholder has complied with or will comply with the requirements of Rule 14a-19 under the Exchange Act, and upon request of the Corporation, shall, not later than five business days prior to the date of the applicable meeting of stockholders, deliver to the Corporation reasonable evidence of such compliance.

&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) The person presiding over the meeting shall, if the facts warrant, determine and declare to the meeting, that the nomination was not made in accordance with the procedures set forth in this Section 3.3, and, if he or she should so determine, he or she shall so declare to the meeting and the defective nomination shall be disregarded. Unless otherwise required by law, if any Nominating Stockholder (i) provides notice pursuant to Rule 14a-19 under the Exchange Act and (ii) subsequently (A) notifies the Corporation that such Nominating Stockholder no longer intends to solicit proxies in support of director nominees other than the Corporation's director nominees in accordance with Rule 14a-19, (B) fails to comply with the requirements of Rule 14a-19, or (C) fails to provide reasonable evidence sufficient to satisfy the Corporation that such requirements have been met, then such Nominating Stockholder's nominations shall be deemed null and void and the corporation shall disregard any proxies or votes solicited for any nominee proposed by such Nominating Stockholder.

&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) If the Nominating Stockholder (or a qualified representative of the stockholder) does not appear at the applicable stockholder meeting to nominate the Stockholder Nominees, such nomination shall be disregarded and such business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Corporation.

&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) Nothing in this Section 3.3 shall be deemed to affect any rights of the holders of any series of preferred stock of the Corporation pursuant to any applicable provision of the Certificate or any Certificate of Designation.

SECTION 3.4 <u>Quorum and Manner of Actin</u>g. Except as otherwise provided by law, the Certificate or these By-laws, a majority of the Whole Board shall constitute a quorum for the transaction of business at any meeting of the Board, and, except as so provided, the vote of a majority of the directors present at any meeting at which a quorum is present shall be the act of the Board. The chairman of the meeting or a majority of the directors present may adjourn the meeting to another time and place, if any, whether or not a quorum is present. At any adjourned meeting at which a quorum is present, any business may be transacted which might have been transacted at the meeting as originally called.

SECTION 3.5 <u>Place of Meetin</u>g. Subject to Sections 3.6 and 3.7 of this Article III, the Board may hold its meetings at such place or places, if any, either within or outside of the State of Delaware, as the Board may from time to time determine, or as shall be specified or fixed in the respective notices or waivers of notice thereof.

SECTION 3.6 <u>Regular Meetin</u>gs. Regular meetings of the Board shall be held at such times as the Board shall from time to time determine, at such locations as the Board may determine. No fewer than four meetings of the Board shall be held per year.

SECTION 3.7 <u>Special Meetin</u>gs. Special meetings of the Board shall be held whenever called by the Chairman of the Board, the Chief Executive Officer or by a majority of the non-employee directors, and shall be held at such place, if any, on such date and at such time as he, she or they, as applicable, shall fix.

SECTION 3.8 <u>Notice of Meetin</u>gs. Notice of regular meetings of the Board or of any adjourned meeting thereof need not be given. Notice of each special meeting of the Board shall be given by overnight delivery service or mailed to each director, in either case addressed to such director at such director's residence or usual place of business, at least 48 hours before the day on which the meeting is to be held or shall be sent to such director at such place by telecopy or by electronic transmission or shall be given personally or by telephone, not later than 24 hours before the meeting is to be held, but notice need not be given to any director who shall, either before or after the meeting, submit a waiver of such notice or who shall attend such meeting without protesting, prior to or at its commencement, the lack of notice to such director. Unless otherwise required by these By-laws, every such notice shall state the time and place, if any, but need not state the purpose of the meeting.

SECTION 3.9 <u>Rules and Regulations</u>. The Board may adopt such rules and regulations not inconsistent with the provisions of law, the Certificate or these By-laws for the conduct of its meetings and management of the affairs of the Corporation as the Board may deem proper.

SECTION 3.10 <u>Participation in Meeting b</u>y <u>Means of Communications Equipment</u>. Any one or more members of the Board or any committee thereof may participate in any meeting of the Board or of any such committee by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other or as otherwise permitted by law, and such participation in a meeting shall constitute presence in person at such meeting.

SECTION 3.11 <u>Action Without Meetin</u>g. Any action required or permitted to be taken at any meeting of the Board or any committee thereof may be taken without a meeting if all of the members of the Board or of any such committee consent thereto in writing and, if required by law, the writing or writings are filed with the minutes or proceedings of the Board or of such committee.

SECTION 3.12 <u>Chairman</u>. The Board of Directors shall annually select one of its members to be Chairman and shall fill any vacancy in the position of Chairman at such time and in such manner as the Board of Directors shall determine.

SECTION 3.13 <u>Resignations</u>. Any director of the Corporation may at any time resign by giving written notice to the Board, the Chairman of the Board, the Chief Executive Officer or the Secretary. Such resignation shall take effect at the time specified therein or, if the time be not specified therein, upon receipt thereof; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

SECTION 3.14 <u>Compensation</u>. Each director, in consideration of such person serving as a director, shall be entitled to receive from the Corporation such amount per annum and such fees (payable in cash or stock-based compensation) for attendance at meetings of the Board or of committees of the Board, or both, and for acting as a chair of a committee of the Board, and/or any other compensation in each case as the Board or a committee thereof shall from time to time determine. In addition, each director shall be entitled to receive from the Corporation reimbursement for the reasonable expenses incurred by such person in connection with the performance of such person's duties as a director. Nothing contained in this Section 3.14 shall preclude any director from serving the Corporation or any of its subsidiaries in any other capacity and receiving compensation therefor.

SECTION 3.15 <u>Proxy 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) The Corporation shall include in its proxy statement and on its form of proxy for an annual meeting of stockholders the name of, and the Required Information (as defined below) relating to, any nominee for election or reelection to the Board who satisfies the eligibility requirements in this Section 3.15 (a "<u>Proxy Access Nominee</u>") and who is identified in a notice that complies with Section 3.15(f) of this Article III and that is timely delivered pursuant to Section 3.15(g) of this Article III (the "<u>Stockholder Notice</u>") by one stockholder, or a group of no more than twenty stockholders, who:

&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;(i) elects at the time of delivering the Stockholder Notice to have such Proxy Access Nominee included in the Corporation's proxy materials;

&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;(ii) as of the date of the Stockholder Notice and the record date for determining stockholders entitled to vote at the annual meeting of stockholders, Owns (as defined below in Section 3.15(c) of this Article III) a number of shares of the Corporation that represents at least 3% of the outstanding shares of the Corporation entitled to vote generally in the election of directors (the "<u>Required Shares</u>") and has Owned continuously the Required Shares (as adjusted for any stock splits, stock dividends or similar events) for at least three years; and

&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;(iii) satisfies the additional requirements in these By-laws (such stockholder or group of stockholders, collectively, an "<u>Eligible Stockholder</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) For purposes of satisfying the Ownership requirement under Section 3.15(a) of this Article III:

&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;(i) the outstanding shares of the Corporation Owned by a group of one or more stockholders may be aggregated (for the avoidance of doubt, the number of stockholders and other beneficial owners whose ownership of shares is aggregated for such purpose shall not exceed twenty); and

&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;(ii) two or more funds that are (A) under common management and investment control, (B) under common management and funded primarily by the same employer, or (C) a "group of investment companies," as such term is defined in Section 12(d)(1)(G)(ii) of the Investment Company Act of 1940, as amended, shall, in each case, be treated as one stockholder.

&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) For purposes of this Section 3.15, an Eligible Stockholder "Owns" only those outstanding shares of the Corporation as to which the stockholder or group of stockholders possesses both:

&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;(i) the full voting and investment rights pertaining to the shares, and

&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;(ii) the full economic interest in (including, without limitation, the opportunity for profit and risk of loss on) such shares;

<u>provided</u> that the number of shares calculated in accordance with clauses (i) and (ii) of this Section 3.15(c) shall not include any shares:

&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;(A) sold by such stockholder or any affiliate (as defined below in this Section 3.15(c)) in any transaction that has not been settled or closed, including, without limitation, any short sale;

&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;(B) borrowed by such stockholder or any affiliate for any purposes or purchased by such stockholder or any affiliate pursuant to an agreement to resell; or

&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;(C) subject to any option, warrant, forward contract, swap, contract of sale, other derivative or similar agreement entered into by such stockholder or any of its affiliates, whether any such instrument or agreement is to be settled with shares or with cash based on the notional amount or value of outstanding shares of the Corporation, in any such case which instrument or agreement has, or is intended to have, or if exercised would have, the purpose or effect of:

&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;(1) reducing in any manner, to any extent or at any time in the future, such stockholder's or any of its affiliates' full right to vote or direct the voting of any such shares; and/or

&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;(2) hedging, offsetting or altering to any degree gain or loss arising from the full economic interest in such shares by such stockholder or affiliate.

A stockholder "Owns" shares held in the name of a nominee or other intermediary so long as the stockholder retains the right to instruct how the shares are voted with respect to the election of directors and possesses the full economic interest in the shares. A stockholder's Ownership of shares shall be deemed to continue during any period in which the stockholder has delegated any voting power by means of a proxy, power of attorney or other instrument or arrangement that is revocable at any time by the stockholder. A stockholder's Ownership of shares shall be deemed to continue during any period in which the stockholder has loaned such shares, p<u>rovided</u> that the stockholder has the power to recall such loaned shares on five business days' notice and has recalled such loaned shares as of the date of the Stockholder Notice and through the date of the annual meeting of stockholders. The terms "Owned," "Owning" and other variations of the word "Own" shall have correlative meanings. Whether outstanding shares of the Corporation are "Owned" for these purposes shall be determined by the Board.

For purposes of this Section 3.15, the term "affiliate" or "affiliates" shall have the meaning ascribed thereto under the General Rules and Regulations under the Exchange 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;(d) No stockholder may be a member of more than one group of stockholders constituting an Eligible Stockholder under this Section 3.15, and no shares of the Corporation may be attributed to more than one Eligible Stockholder or group constituting an Eligible Stockholder.

&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) For purposes of this Section 3.15, the "Required Information" that the Corporation will include in its proxy materials is:

&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;(i) the information concerning the Proxy Access Nominee and the Eligible Stockholder that is required to be disclosed in the Corporation's proxy materials by the applicable requirements of the Exchange Act and the rules and regulations thereunder; and

&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;(ii) if the Eligible Stockholder so elects, a written statement of the Eligible Stockholder, not to exceed 500 words, in support of its Proxy Access Nominee, which must be provided at the same time as the Stockholder Notice for inclusion in the Corporation's proxy materials for the annual meeting of stockholders.

Notwithstanding anything to the contrary contained in this Section 3.15, the Corporation may omit from its proxy materials any information or statement that it, in good faith, believes would violate any applicable law, rule, regulation or listing standard. Nothing in this Section 3.15 shall limit the Corporation's ability to solicit against a stockholder nominee and include in its proxy materials its own statements relating to any Eligible Stockholder or Proxy Access Nominee.

&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) The Stockholder Notice shall set forth the information required under Section 3.3(a) of this Article III (replacing the term "Nominating Stockholder" with "Eligible Stockholder" and the term "Stockholder Nominee" with "Proxy Access Nominee"), including the questionnaire, agreement and other materials required by Section 3.3(a)(iv), and, in addition, shall include:

&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;(i) a copy of the Schedule 14N that has been or concurrently is filed with the SEC under Exchange Act Rule 14a-18 (or any successor schedule or rule); and

&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;(ii) the written agreement of the Eligible Stockholder (or in the case of a group, each stockholder whose shares are aggregated for purposes of constituting an Eligible Stockholder) addressed to the Corporation (in the form provided by the Secretary upon written request), setting forth the following additional agreements, representations and warranties:

&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;(A) a certification as to the number of shares of the Corporation it Owns and has Owned continuously for at least three years as of the date of the Stockholder Notice and agreeing to continue to Own such shares through the date of the annual meeting of stockholders, which statement shall also be included in the written statements set forth in Item 4 of the Schedule 14N (or any successor schedule) filed by the Eligible Stockholder with the SEC;

&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;(B) the Eligible Stockholder's agreement to provide the information required under Section 3.3(a) of this Article III and the written statements from the record holder and intermediaries as required under Section 3.15(h) of this Article III verifying the Eligible Stockholder's continuous Ownership of the Required Shares through and as of the business day immediately preceding the date of the annual meeting of stockholders;

&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;(C) the Eligible Stockholder's representation and agreement that the Eligible Stockholder (including each member of any group of stockholders that together is an Eligible Stockholder under this Section 3.15):

&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;(1) acquired the Required Shares in the ordinary course of business and not with the intent to change or influence control of the Corporation, and does not presently have such intent;

&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;(2) will provide facts, statements and other information in all communications with the Corporation and stockholders of the Corporation that are true and correct in all material respects and do not omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading;

&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;(3) has not nominated and will not nominate for election to the Board at the annual meeting of stockholders any person other than the Proxy Access Nominee(s) being nominated pursuant to this Section 3.15;

&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;(4) has not engaged and will not engage in a, and has not been and will not be a "participant" (as defined in Item 4 of the Exchange Act Schedule 14A) (or any successor schedule) in other person's, "solicitation" within the meaning of Exchange Act Rule 14a-1(l) (or any successor rule), in support of the election of any individual as a director at the annual meeting of stockholders other than its Proxy Access Nominee or a nominee of the Board; and

&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;(5) will not distribute to any stockholder any form of proxy for the annual meeting of stockholders other than the form distributed by the Corporation.

&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;(D) the Eligible Stockholder's agreement to:

&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;(1) assume all liability stemming from any legal or regulatory violation arising out of the Eligible Stockholder's communications with the stockholders of the Corporation or out of the information that the Eligible Stockholder provided to the Corporation;

&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;(2) indemnify and hold harmless the Corporation and each of its directors, officers and employees individually against any liability, loss or damages in connection with any threatened or pending action, suit or proceeding, whether legal, administrative or investigative, against the Corporation or any of its directors, officers or employees arising out of any nomination submitted by the Eligible Stockholder pursuant to this Section 3.15; p<u>rovided</u>, <u>however</u>, that the indemnification by the Eligible Stockholder under this Section 3.15(f)(ii)(D)(2) shall no longer be required or apply with respect to any acts or omissions by the Proxy Access Nominee that occur after such Proxy Access Nominee's election to the Board;

&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;(3) comply with all other laws, rules, regulations and listing standards applicable to any solicitation in connection with the annual meeting of stockholders;

&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;(4) file all materials described below in Section 3.15(h)(iii) of this Article III with the SEC, regardless of whether any such filing is required under Exchange Act Regulation 14A (or any successor regulation), or whether any exemption from filing is available for such materials under Exchange Act Regulation 14A (or any successor regulation);

&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;(5) provide to the Corporation prior to the annual meeting of stockholders such additional information as necessary or reasonably requested by the Corporation;

&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;(6) promptly disclose to the Corporation if the Eligible Stockholder does not intend to continue to Own the Required Shares for at least one year following the annual meeting of stockholders; and

&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;(7) in the case of a nomination by a group of stockholders that together is an Eligible Stockholder, the designation by all group members of one group member that is authorized to act on behalf of all such members with respect to the nomination and matters related thereto, including, without limitation, any withdrawal of the nomination.

&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) To be timely under this Section 3.15, the Stockholder Notice must be delivered to or mailed and received at the principal executive offices of the Corporation (i) with respect to an election to be held at an annual meeting of the stockholders, not less than 120 days nor more than 150 days prior to the first anniversary of the date the definitive proxy statement was first released to stockholders in connection with the previous year's annual meeting of stockholders; p<u>rovided</u>, <u>however</u>, that in the event that the date of the annual meeting of stockholders is more than 30 days earlier or more than 60 days later than such anniversary date, the Stockholder Notice to be timely must be so delivered or received not earlier than the 150th day prior to such annual meeting of stockholders and not later than the close of business on the later of the 120th day prior to such annual meeting of stockholders or the 10th day following the day on which public announcement of the date of such meeting is first made; p<u>rovided</u>, <u>further</u>, that for the purpose of calculating the timeliness of the Stockholder Notice for the 2027 annual meeting of stockholders, the date of the immediately preceding annual meeting of stockholders shall be deemed to be [•], 2026 and (ii) with respect to an election to be held at a special meeting of the stockholders for the election of directors, not earlier than the 90th day prior to such special meeting and not later than the close of business on the later of the 60th day prior to such special meeting or the 10th day following the day on which public announcement is first made of the date of the special meeting. In no event shall any adjournment or postponement of an annual meeting of stockholders, or the announcement thereof, commence a new time period (or extend any time period) for the giving of the Stockholder Notice as described above. For purposes of Rule 14a-18 under the Exchange Act (or any successor rule), the applicable "date specified by the registrant's advance notice provision" shall be the date determined pursuant to this Section 3.15(g).

&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) An Eligible Stockholder (or in the case of a group, each stockholder whose shares are aggregated for purposes of constituting an Eligible Stockholder) must:

&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;(i) within five business days after the date of the Stockholder Notice provide one or more written statements from the record holder(s) of the Required Shares and from each intermediary through which the Required Shares are or have been held, in each case during the requisite three-year holding period, verifying that the Eligible Stockholder Owns, and has Owned continuously for the preceding three years, the Required Shares;

&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;(ii) include in the written statements provided pursuant to Item 4 of Schedule 14N (or any successor schedule) filed with the SEC a statement certifying that it Owns and continuously has Owned the Required Shares for at least three years;

&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;(iii) file with the SEC any solicitation or other communication relating to the current year annual meeting of stockholders, one or more of the Corporation's directors or director nominees or any Proxy Access Nominee, regardless of whether any such filing is required under Exchange Act Regulation 14A (or any successor regulation) or whether any exemption from filing is available for such solicitation or other communication under Exchange Act Regulation 14A (or any successor regulation); and

&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;(iv) as to any group of funds whose shares are aggregated for purposes of constituting an Eligible Stockholder, within five business days after the date of the Stockholder Notice, provide documentation reasonably satisfactory to the Corporation that demonstrates that the funds satisfy Section 3.15(b)(ii) of this Article III.

&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) Notwithstanding anything to the contrary contained in this Section 3.15, the Corporation may omit from its proxy materials any Proxy Access Nominee, and such nomination shall be disregarded and no vote on such Proxy Access Nominee will occur, notwithstanding that proxies in respect of such vote may have been received by the Corporation, if:

&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;(i) the Secretary receives notice that a stockholder intends to nominate a person for election to the Board which stockholder does not elect to have its nominee(s) included in the Corporation's proxy materials pursuant to this Section 3.15;

&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;(ii) the Eligible Stockholder or Proxy Access Nominee breaches any of its respective agreements, representations or warranties set forth in the Stockholder Notice or otherwise required by this Section 3.15, or if any of the information in the Stockholder Notice (or otherwise submitted pursuant to this Section 3.15) was not, when provided, true, correct and complete or the requirements of this Section 3.15 have otherwise not been met;

&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;(iii) the Proxy Access Nominee or the stockholder or group of stockholders (including any member thereof) who has nominated such Proxy Access Nominee has engaged in or is currently engaged in, or has been or is a "participant" in another person's, "solicitation" within the meaning of Rule 14a-1(l) under the Exchange Act, in support of the election of any individual as a director at the meeting other than such Proxy Access Nominee or a nominee of the Board;

&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;(iv) the Proxy Access Nominee (A) is not independent under the listing standards of the principal U.S. exchange upon which the shares of the Corporation are listed, any applicable rules of the SEC and any publicly disclosed standards used by the Board in determining and disclosing the independence of the Corporation's directors, (B) does not qualify as independent under the audit committee independence requirements set forth in the rules of the principal U.S. exchange on which shares of the Corporation are listed or as a "non-employee director" under Exchange Act Rule 16b-3 (or any successor rule), (C) is or has been, within the three years preceding the date the Corporation first mails to the stockholders its notice of the meeting that includes the Proxy Access Nominee, an officer or director of a competitor, as defined in Section 8 of the Clayton Antitrust Act of 1914, as amended, (D) is an officer, director or general partner of any legal entity where a fellow officer, director or general partner of such legal entity is an officer or director of a competitor, as defined in Section 8 of the Clayton Antitrust Act of 1914, as amended, (E) is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses) or has been convicted in a criminal proceeding within the 10 years preceding the date the Corporation first mails to the stockholders its notice of the meeting that includes the Proxy Access Nominee, or (F) is subject to any order of the type specified in Rule 506(d) of Regulation D (or any successor rule) promulgated under the Securities Act of 1933, as amended; or

&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;(v) the election of the Proxy Access Nominee to the Board would cause the Corporation to be in violation of the Certificate, these By-laws or any applicable state or federal law, rule, regulation or listing standard.

Any such determination by the Board (or any other person or body authorized by the Board) regarding a nomination's satisfaction of this Section 3.15(i) shall be binding on the Corporation and its stockholders.

&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) The maximum number of Proxy Access Nominees appearing in the Corporation's proxy materials with respect to an annual meeting of stockholders pursuant to this Section 3.15 (including, without limitation, any Proxy Access Nominee whose name was submitted for inclusion in the Corporation's proxy materials for such annual meeting of stockholders but who is nominated by the Board as a Board nominee for such annual meeting of stockholders), together with:

&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;(i) any nominees who were previously elected to the Board as (A) Proxy Access Nominees pursuant to this Section 3.15 (including, without limitation, any Proxy Access Nominee whose name was submitted for inclusion in the Corporation's proxy materials for such prior annual meeting of stockholders but who was nominated by the Board as a Board nominee for such prior annual meeting of stockholders) or (B) a nominee of any stockholder in any other manner, in either case at any of the preceding two annual meetings of stockholders and who are re-nominated for election at such annual meeting of stockholders by the Board, and

&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;(ii) any Proxy Access Nominee who was qualified for inclusion in the Corporation's proxy materials for such annual meeting of stockholders but whose nomination is subsequently withdrawn, shall not exceed the greater of (x) two or (y) 20% of the number of directors in office as of the last day on which a Stockholder Notice may be delivered pursuant to this Section 3.15 with respect to such annual meeting of stockholders, or if such amount as calculated in clause (y) of this Section 3.15(j) is not a whole number, the closest whole number below 20%; p<u>rovided</u> that if there is a vacancy on the Board and the number of directors is decreased prior to such annual meeting of stockholders, then the 20% of the number of directors shall be calculated based on the number of directors in office as of the date of such decrease in the number of directors. In the event that the number of Proxy Access Nominees submitted by Eligible Stockholders pursuant to this Section 3.15 exceeds this maximum number, each Eligible Stockholder will select one Proxy Access Nominee for inclusion in the Corporation's proxy materials until the maximum number is reached, going in order of the number (largest to smallest) of shares of the Corporation each Eligible Stockholder disclosed as Owned in its respective Stockholder Notice submitted to the Corporation. If the maximum number is not reached after each Eligible Stockholder has selected one Proxy Access Nominee, this selection process will continue as many times as necessary, following the same order each time, until the maximum number is reached.

&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) Notwithstanding the foregoing provisions of this Section 3.15, unless otherwise required by law or otherwise determined by the person presiding over the meeting, if none of (i) the Eligible Stockholder or (ii) a qualified representative of the Eligible Stockholder appears at the annual meeting of stockholders to present such Eligible Stockholder's Proxy Access Nominees, such nomination or nominations shall be disregarded and conclusively deemed withdrawn, notwithstanding that proxies in respect of the election of the Proxy Access Nominees may have been received by the Corporation.

&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) Any Proxy Access Nominee who is included in the Corporation's proxy materials for a particular annual meeting of stockholders but either (i) withdraws from or becomes ineligible or unavailable for election at the annual meeting of stockholders, or (ii) does not receive at least 25% of the votes cast in favor of the Proxy Access Nominee's election, will be ineligible to be a Proxy Access Nominee pursuant to this Section 3.15 for the next two annual meetings of stockholders.

&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) The Corporation may request such additional information as necessary to permit the Board to determine if each Proxy Access Nominee is independent under the listing standards of the principal United States exchange upon which the shares of the Corporation are listed, any applicable rules of the SEC and any publicly disclosed standards used by the Board in determining and disclosing the independence of the Corporation's directors.

&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) This Section 3.15 shall be the exclusive method for stockholders to include nominees for director election in the Corporation's proxy materials (including, without limitation, any proxy card or written ballot), other than with respect to Rule 14a-19 under the Exchange Act to the extent applicable with respect to form of proxies).

Article IV<u><br>Committees of the Board of Directors</u>

SECTION 4.1 <u>Committees of the Board</u>. The Board shall designate such committees as may be required by the listing standards of the principal United States exchange upon which the shares of the Corporation are listed and may from time to time designate other committees of the Board (including, without limitation, an executive committee), with such lawfully delegable powers and duties as it thereby confers, to serve at the pleasure of the Board and shall, for those committees and any others provided for herein, elect a director or directors to serve as the member or members, designating, if it desires, other directors as alternate members who may replace any absent or disqualified member at any meeting of the committee.

SECTION 4.2 <u>Conduct of Business</u>. Any committee, to the extent allowed by law and provided in the resolution establishing such committee or the charter of such committee, shall have and may exercise all the duly delegated powers and authority of the Board in the management of the business and affairs of the Corporation. The Board shall have the power to prescribe the manner in which proceedings of any such committee shall be conducted. In the absence of any such prescription, any such committee shall have the power to prescribe the manner in which its proceedings shall be conducted. Unless the Board or such committee shall otherwise provide, regular and special meetings and other actions of any such committee shall be governed by the provisions of Article III applicable to meetings and actions of the Board. Each committee shall keep regular minutes and report on its actions to the Board.

Article V<u><br>Officers</u>

SECTION 5.1 <u>Number; Term of Office</u>. The officers of the Corporation shall be elected by the Board and may consist of: a Chief Executive Officer, a President, a Chief Operating Officer, a Chief Financial Officer and one or more Vice Presidents (including, without limitation, Senior Vice Presidents) and a Treasurer, Controller and Secretary and such other officers and agents with such titles and such duties as the Board may from time to time determine, each to have such authority, functions or duties as in these By-laws provided or as the Board may from time to time determine, and each to hold office for such term as may be prescribed by the Board and until such person's successor shall have been chosen and shall qualify, or until such person's death or resignation, or until such person's removal in the manner hereinafter provided. One person may hold the offices and perform the duties of any two or more of said officers; p<u>rovided</u>, <u>however</u>, that no officer shall execute, acknowledge or verify any instrument in more than one capacity if such instrument is required by law, the Certificate or these By-laws to be executed, acknowledged or verified by two or more officers. The Board may require any officer or agent to give security for the faithful performance of such person's duties.

SECTION 5.2 <u>Removal</u>. Subject to Section 5.13 of this Article V, any officer may be removed, either with or without cause, by the Board at any meeting thereof called for the purpose, by the Chief Executive Officer, or by any other superior officer upon whom such power may be conferred by the Board.

SECTION 5.3 <u>Res</u>ig<u>nation</u>. Any officer may resign at any time by giving notice to the Board, the Chief Executive Officer or the Secretary. Any such resignation shall take effect at the date of receipt of such notice or at any later date specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

SECTION 5.4 <u>Chief Executive Officer</u>. The Chief Executive Officer shall have general supervision and direction of the business and affairs of the Corporation, subject to the control of the Board, and shall report directly to the Board.

SECTION 5.5 <u>President</u>. The President shall perform such senior duties as he or she may agree with the Chief Executive Officer (if the position is held by an individual other than the Chief Executive Officer) or as the Board shall from time to time determine.

SECTION 5.6 <u>Chief Operating Officer</u>. The Chief Operating Officer shall perform such senior duties in connection with the operations of the Corporation as he or she may agree with the Chief Executive Officer or as the Board shall from time to time determine. The Chief Operating Officer shall, when requested, counsel with and advise the other officers of the Corporation.

SECTION 5.7 <u>Chief Financial Officer</u>. The Chief Financial Officer shall perform all the powers and duties of the office of the chief financial officer and in general have overall supervision of the financial operations of the Corporation. The Chief Financial Officer shall, when requested, counsel with and advise the other officers of the Corporation and shall perform such other duties as he or she may agree with the Chief Executive Officer or as the Board may from time to time determine.

SECTION 5.8 <u>Vice Presidents</u>. Any Vice President shall have such powers and duties as shall be prescribed by his or her superior officer or the Board. A Vice President shall, when requested, counsel with and advise the other officers of the Corporation and shall perform such other duties as he or she may agree with the Chief Executive Officer or as the Board may from time to time determine. A Vice President need not be an officer of the Corporation and shall not be deemed an officer of the Corporation unless elected by the Board.

SECTION 5.9 <u>Treasurer</u>. The Treasurer shall supervise and be responsible for all the funds and securities of the Corporation; the deposit of all moneys and other valuables to the credit of the Corporation in depositories of the Corporation; borrowings and compliance with the provisions of all indentures, agreements and instruments governing such borrowings to which the Corporation is a party; the disbursement of funds of the Corporation and the investment of its funds; and in general shall perform all of the duties incident to the office of the Treasurer. The Treasurer shall, when requested, counsel with and advise the other officers of the Corporation and shall perform such other duties as he or she may agree with the Chief Executive Officer or the Chief Financial Officer or as the Board may from time to time determine.

SECTION 5.10 <u>Controller</u>. The Controller shall be the chief accounting officer of the Corporation. The Controller shall, when requested, counsel with and advise the other officers of the Corporation and shall perform such other duties as he or she may agree with the Chief Executive Officer or the Chief Financial Officer or as the Board may from time to time determine.

SECTION 5.11 <u>Secretar</u>y. It shall be the duty of the Secretary to act as secretary at all meetings of the Board, of the committees of the Board and of the stockholders and to record the proceedings of such meetings in a book or books to be kept for that purpose; the Secretary shall see that all notices required to be given by the Corporation are duly given and served; the Secretary shall be custodian of the seal of the Corporation and when deemed necessary shall affix the seal or cause it to be affixed to all certificates of stock, if any, of the Corporation (unless the seal of the Corporation on such certificates shall be a facsimile, as hereinafter provided) and to all documents, the execution of which on behalf of the Corporation under its seal is duly authorized in accordance with the provisions of these By-laws; the Secretary shall have charge of the books, records and papers of the Corporation and shall see that the reports, statements and other documents required by law to be kept and filed are properly kept and filed; and in general shall perform all of the duties incident to the office of Secretary. The Secretary shall, when requested, counsel with and advise the other officers of the Corporation and shall perform such other duties as he or she may agree with the Chief Executive Officer or as the Board may from time to time determine.

SECTION 5.12 <u>Assistant Treasurers, Assistant Controllers and Assistant Secretaries</u>. Any Assistant Treasurers, Assistant Controllers and Assistant Secretaries shall perform such duties as shall be assigned to them by the Board or by the Treasurer, Controller or Secretary, respectively, or by the Chief Executive Officer. An Assistant Treasurer, Assistant Controller or Assistant Secretary need not be an officer of the Corporation and shall not be deemed an officer of the Corporation unless elected by the Board.

SECTION 5.13 <u>Additional Matters</u>. The Chief Executive Officer, the President, the Chief Operating Officer and the Chief Financial Officer of the Corporation shall have the authority to designate employees of the Corporation to have the title of Vice President, Assistant Vice President, Assistant Treasurer, Assistant Controller or Assistant Secretary. Any employee so designated shall have the powers and duties determined by the officer making such designation. The persons upon whom such titles are conferred shall not be deemed officers of the Corporation unless elected by the Board or appointed by any duly elected officer or assistant officer authorized by the Board to appoint such person.

Article VI<u><br>Indemnification</u>

SECTION 6.1 <u>Right to Indemnification</u>. The Corporation, to the fullest extent permitted or required by the DGCL or other applicable law, as the same exists or may hereafter be amended (but, in the case of any such amendment and unless applicable law otherwise requires, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than such law permitted the Corporation to provide prior to such amendment), shall indemnify and hold harmless any person who is or was a director or officer of the Corporation and who is or was involved in any manner (including, without limitation, as a party or a witness) or is threatened to be made so involved in any threatened, pending or completed investigation, claim, action, suit or proceeding, whether civil, criminal, administrative or investigative (including, without limitation, any action, suit or proceedings by or in the right of the Corporation to procure a judgment in its favor) (a "<u>Proceedin</u>g") by reason of the fact that such person, or another person of whom such person is the legal representative, is or was a director, officer or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer or agent of another corporation, partnership, joint venture, trust or other enterprise (including, without limitation, any employee benefit plan) (a "<u>Covered Enti</u>ty"), whether the basis of such Proceeding is alleged action in an official capacity as a director, officer or agent or in any other capacity while serving as a director, officer or agent, against all expenses, liabilities and losses (including, without limitation, attorneys' fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) actually and reasonably incurred by such person in connection with such Proceeding and such indemnification shall continue as to a person who has ceased to be a director, officer or agent of the Corporation or a Covered Entity; p<u>rovided</u>, <u>however</u>, that, except as provided in Section 6.4(d) of this Article VI with respect to an adjudication of entitlement to indemnification, the Corporation shall indemnify and hold harmless any such Indemnitee in connection with a Proceeding initiated by such Indemnitee only if such Proceeding was authorized by the Board. Any person entitled to indemnification as provided in this Section 6.1 is hereinafter called an "<u>Indemnitee</u>". Any right of an Indemnitee to indemnification shall be a contract right and shall include the right to receive, prior to the conclusion of any Proceeding, payment of any expenses incurred by the Indemnitee in connection with such Proceeding, consistent with the provisions of the DGCL or other applicable law, as the same exists or may hereafter be amended (but, in the case of any such amendment and unless applicable law otherwise requires, only to the extent that such amendment permits the Corporation to provide broader rights to payment of expenses than such law permitted the Corporation to provide prior to such amendment), and the other provisions of this Article VI; p<u>rovided</u> that payment of expenses incurred by a person other than a director or officer of the Corporation prior to the conclusion of any Proceeding shall be made, unless otherwise determined by the Board, only upon delivery to the Corporation of an undertaking by or on behalf of such person to the same effect as any undertaking required to be delivered to the Corporation by any director or officer of the Corporation pursuant to the DGCL or other applicable law.

SECTION 6.2 <u>Insurance, Contracts and Fundin</u>g. The Corporation may purchase and maintain insurance to protect itself and any director, officer, employee or agent of the Corporation or of any Covered Entity against any expenses, liabilities or losses as specified in Section 6.1 of this Article VI or incurred by any such director, officer, employee or agent in connection with any Proceeding referred to in Section 6.1 of this Article VI, whether or not the Corporation would have the power to indemnify such person against such expense, liability or loss under the DGCL. The Corporation may enter into contracts with any director, officer, employee or agent of the Corporation or of any Covered Entity in furtherance of the provisions of this Article VI and may create a trust fund, grant a security interest or use other means (including, without limitation, a letter of credit) to ensure the payment of such amounts as may be necessary to effect indemnification as provided or authorized in this Article VI.

SECTION 6.3 <u>Indemnification Not Exclusive Right</u>. The right of indemnification provided in this Article VI shall not be exclusive of any other rights to which an Indemnitee may otherwise be entitled, and the provisions of this Article VI shall inure to the benefit of the heirs and legal representatives of any Indemnitee under this Article VI and shall be applicable to Proceedings commenced or continuing after the adoption of this Article VI, whether arising from acts or omissions occurring before or after such adoption.

SECTION 6.4 <u>Advancement of Expenses; Procedures; Presumptions and Effect of Certain Proceedin</u>gs; <u>Remedies</u>. In furtherance, but not in limitation, of the foregoing provisions, the following procedures, presumptions and remedies shall apply with respect to advancement of expenses and the right to indemnification under this Article VI:

&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) <u>Advancement of Expenses</u>. All reasonable expenses (including, without limitation, attorneys' fees) incurred by or on behalf of the Indemnitee in connection with any Proceeding shall be advanced to the Indemnitee by the Corporation within 20 days after the receipt by the Corporation of a statement or statements from the Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the expenses incurred by the Indemnitee and, if required by law or the provisions of this Article VI at the time of such advance, shall include or be accompanied by an undertaking by or on behalf of the Indemnitee to repay the amounts advanced if ultimately it should be determined that the Indemnitee is not entitled to be indemnified against such expenses pursuant to this Article VI.

&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) <u>Procedure for Determination of Entitlement to Indemnification</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To obtain indemnification under this Article VI, an Indemnitee shall submit to the Secretary a written request including such documentation and information as is reasonably available to the Indemnitee and reasonably necessary to determine whether and to what extent the Indemnitee is entitled to indemnification (the "<u>Supportin</u>g <u>Documentation</u>"). The determination of the Indemnitee's entitlement to indemnification shall be made not later than 60 days after receipt by the Corporation of the written request for indemnification together with the Supporting Documentation. The Secretary shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that the Indemnitee has requested indemnification.

&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;(ii) The Indemnitee's entitlement to indemnification under this Article VI shall be determined in one of the following ways: (A) by a majority vote of the Disinterested Directors (as hereinafter defined in Section 6.4(e) of this Article VI), whether or not they constitute a quorum of the Board, or by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors; (B) by a written opinion of Independent Counsel (as hereinafter defined in Section 6.4(e) of this Article VI) if there are no Disinterested Directors or a majority of such Disinterested Directors so directs; (C) by the stockholders of the Corporation; or (D) as provided in Section 6.4(c) of this Article VI.

&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;(iii) In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 6.4(b)(ii) of this Article VI, a majority of the Disinterested Directors shall select the Independent Counsel, but only an Independent Counsel to which the Indemnitee does not reasonably object.

&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) <u>Presumptions and Effect of Certain Proceedin</u>gs. If the person or persons empowered under Section 6.4(b) of this Article VI to determine entitlement to indemnification shall not have been appointed or shall not have made a determination within 60 days after receipt by the Corporation of the request therefor, together with the Supporting Documentation, the Indemnitee shall be deemed to be, and shall be, entitled to indemnification unless (A) the Indemnitee misrepresented or failed to disclose a material fact in making the request for indemnification or in the Supporting Documentation or (B) such indemnification is prohibited by law. The termination of any Proceeding described in Section 6.1 of this Article VI, or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of *nolo contendere* or its equivalent, shall not, of itself, adversely affect the right of the Indemnitee to indemnification or create a presumption that the Indemnitee did not act in good faith and in a manner which the Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation or, with respect to any criminal proceeding, that the Indemnitee had reasonable cause to believe that such conduct was unlawful.

&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) <u>Remedies of Indemnitee</u>. (i) In the event that a determination is made pursuant to Section 6.4(b) of this Article VI that the Indemnitee is not entitled to indemnification under this Article VI, (A) the Indemnitee shall be entitled to seek an adjudication of entitlement to such indemnification either, at the Indemnitee's sole option, in (x) an appropriate court of the State of Delaware or any other court of competent jurisdiction or (y) an arbitration to be conducted by a single arbitrator pursuant to the rules of the American Arbitration Association and (B) any such judicial proceeding or arbitration shall be *de novo* and the Indemnitee shall not be prejudiced by reason of such adverse determination.

&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;(i) If a determination shall have been made or deemed to have been made, pursuant to Section 6.4(b) or (c) of this Article VI, that the Indemnitee is entitled to indemnification, the Corporation shall be obligated to pay the amounts constituting such indemnification within 45 days after such determination has been made or deemed to have been made and shall be conclusively bound by such determination unless (A) the Indemnitee misrepresented or failed to disclose a material fact in making the request for indemnification or in the Supporting Documentation or (B) such indemnification is prohibited by law. In the event that (X) advancement of expenses is not timely made pursuant to Section 6.4(a) of this Article VI or (Y) payment of indemnification is not made within 45 days after a determination of entitlement to indemnification has been made or deemed to have been made pursuant to Section 6.4(b) or (c) of this Article VI, the Indemnitee shall be entitled to seek judicial enforcement of the Corporation's obligation to pay to the Indemnitee such advancement of expenses or indemnification. Notwithstanding the foregoing, the Corporation may bring an action, in an appropriate court in the State of Delaware or any other court of competent jurisdiction, contesting the right of the Indemnitee to receive indemnification hereunder due to the occurrence of an event described in sub-clause (A) or (B) of this clause (ii) (a "<u>Disqualifying Event</u>"); p<u>rovided</u>, <u>however</u>, that in any such action the Corporation shall have the burden of proving the occurrence of such Disqualifying Event.

&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;(ii) The Corporation shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 6.4(d) that the procedures and presumptions of this Article VI are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Corporation is bound by all the provisions of this Article VI.

&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;(iii) In the event that the Indemnitee, pursuant to this Section 6.4(d), seeks a judicial adjudication of or an award in arbitration to enforce rights under, or to recover damages for breach of, this Article VI, or in the event of a suit brought by the Corporation to recover an advancement of expenses pursuant to the terms of an undertaking, the Indemnitee shall be entitled to recover from the Corporation, and shall be indemnified by the Corporation against, any expenses actually and reasonably incurred by the Indemnitee if the Indemnitee prevails in such judicial adjudication, arbitration or suit. If it shall be determined in such judicial adjudication, arbitration or suit that the Indemnitee is entitled to receive part but not all of the indemnification or advancement of expenses sought, the expenses incurred by the Indemnitee in connection with such judicial adjudication, arbitration or action shall be prorated accordingly.

&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) <u>Definitions</u>. For purposes of this Article VI:

&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;(i) "<u>Disinterested Director</u>" means a director of the Corporation who is not or was not a party to the Proceeding in respect of which indemnification is sought by the Indemnitee.

&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;(ii) "<u>Independent Counsel</u>" means a law firm or a member of a law firm that neither presently is, nor in the past five years has been, retained to represent: (x) the Corporation or the Indemnitee in any matter material to either such party or (y) any other party to the Proceeding giving rise to a claim for indemnification under this Article VI. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing under the law of the State of Delaware, would have a conflict of interest in representing either the Corporation or the Indemnitee in an action to determine the Indemnitee's rights under this Article VI.

SECTION 6.5 <u>Indemnification of Agents</u>. Notwithstanding any other provision or provisions of this Article VI, the Corporation, to the fullest extent of the provisions of this Article VI with respect to the indemnification of directors, officers and employees of the Corporation or any Covered Entity, may indemnify any person other than a director, officer or employee of the Corporation or any Covered Entity, who is or was an agent of the Corporation or a Covered Entity and who is or was involved in any manner (including, without limitation, as a party or a witness) or is threatened to be made so involved in any threatened, pending or completed Proceeding by reason of the fact that such person, or another person of whom such person is the legal representative, is or was a director, officer, employee or agent of the Corporation or of a Covered Entity, whether the basis of such Proceeding is alleged action in an official capacity as a director, officer, employee or agent or in any other capacity while serving as a director, officer, employee or agent, against all expenses, liabilities and losses (including, without limitation, attorneys' fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) actually and reasonably incurred by such person in connection with such Proceeding. The Corporation may also advance expenses incurred by such employee or agent in connection with any such Proceeding, consistent with the provisions of this Article VI with respect to the advancement of expenses of directors, officers and employees of the Corporation.

Article VII<u><br>Capital Stock</u>

SECTION 7.1 <u>Certificates for Shares and Uncertificated Shares</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) The shares of stock of the Corporation shall be uncertificated shares that may be evidenced by a book-entry system maintained by the registrar of such stock, or shall be represented by certificates, or a combination of both. To the extent that shares are represented by certificates, such certificates whenever authorized by the Board shall be in such form as shall be approved by the Board. The certificates representing shares of stock of each class shall be signed by, or in the name of, the Corporation by any two authorized officers of the Corporation, and sealed with the seal of the Corporation, which may be a facsimile thereof. Any or all such signatures may be facsimiles if countersigned by a transfer agent or registrar. Although any officer, transfer agent or registrar whose manual or facsimile signature is affixed to such a certificate ceases to be such officer, transfer agent or registrar before such certificate has been issued, it may nevertheless be issued by the Corporation with the same effect as if such officer, transfer agent or registrar were still such at the date of its issue. Within a reasonable time after the issuance or transfer of uncertificated shares, the Corporation shall send to the registered owner thereof a written notice in accordance with Section 151(f) of the DGCL.

&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) The stock ledger and blank share certificates, if any, shall be kept by the Secretary or by a transfer agent or by a registrar or by any other officer or agent designated by the Board.

SECTION 7.2 <u>Transfer of Shares</u>. Transfers of shares of stock of each class of the Corporation shall be made only on the books of the Corporation upon authorization by the registered holder thereof, or by such holder's attorney thereunto authorized by a power of attorney duly executed and filed with the Secretary or a transfer agent for such stock, if any, and if such shares are represented by a certificate, upon surrender of the certificate or certificates for such shares properly endorsed or accompanied by a duly executed stock transfer power (or by proper evidence of succession, assignment or authority to transfer) and the payment of any taxes thereon; p<u>rovided</u>, <u>however</u>, that the Corporation shall be entitled to recognize and enforce any lawful restriction on transfer. The person in whose name shares are registered on the books of the Corporation shall be deemed the owner thereof for all purposes as regards the Corporation; p<u>rovided</u>, <u>however</u>, that whenever any transfer of shares shall be made for collateral security and not absolutely, and written notice thereof shall be given to the Secretary or to such transfer agent, such fact shall be stated in the entry of the transfer. No transfer of shares shall be valid as against the Corporation, its stockholders and creditors for any purpose, except to render the transferee liable for the debts of the Corporation to the extent provided by law, until it shall have been entered in the stock records of the Corporation by an entry showing from and to whom transferred.

SECTION 7.3 <u>Registered Stockholders and Addresses of Stockholders</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) The Corporation shall be entitled to recognize the exclusive right of a person registered on its records as the owner of shares of stock to receive dividends and to vote as such owner, shall be entitled to hold liable for calls and assessments a person registered on its records as the owner of shares of stock, and shall not be bound to recognize any equitable or other claim to or interest in such share or shares of stock on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of the State of Delaware.

&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) Each stockholder shall designate to the Secretary or transfer agent of the Corporation an address at which notices of meetings and all other corporate notices may be given to such person, and, if any stockholder shall fail to designate such address, corporate notices may be given to such person by mail directed to such person at such person's post office address, if any, as the same appears on the stock record books of the Corporation or at such person's last known post office address.

SECTION 7.4 <u>Lost, Destroyed and Mutilated Certificates</u>. The holder of any certificate representing any shares of stock of the Corporation shall immediately notify the Corporation of any loss, theft, destruction or mutilation of such certificate; the Corporation may issue to such holder a new certificate or certificates for shares, upon the surrender of the mutilated certificate or, in the case of loss, theft or destruction of the certificate, upon satisfactory proof of such loss, theft or destruction; the Board, or a committee designated thereby, or the transfer agents and registrars for the stock, may, in their discretion, require the owner of the lost, stolen or destroyed certificate, or such person's legal representative, to give the Corporation a bond in such sum and with such surety or sureties as they may direct to indemnify the Corporation and said transfer agents and registrars against any claim that may be made on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate.

SECTION 7.5 <u>Regulations</u>. The Board may make such additional rules and regulations as it may deem expedient concerning the issue, transfer and registration of certificated or uncertificated shares of stock of each class and series of the Corporation and may make such rules and take such action as it may deem expedient concerning the issue of certificates in lieu of certificates claimed to have been lost, destroyed, stolen or mutilated.

SECTION 7.6 <u>Fixing Date for Determination of Stockholders of Record</u>. In order that the Corporation may determine the stockholders entitled to notice of or to vote at any meeting of the stockholders or any adjournment thereof, or entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board may fix, in advance, a record date, which shall not be more than 60 days nor less than 10 days before the date of such meeting, nor more than 60 days prior to any other action. A determination of stockholders entitled to notice of or to vote at a meeting of the stockholders shall apply to any adjournment of the meeting; p<u>rovided</u>, <u>however</u>, that the Board may fix a new record date for the adjourned meeting.

SECTION 7.7 <u>Transfer Agents and Registrars</u>. The Board may appoint, or authorize any officer or officers to appoint, one or more transfer agents and one or more registrars.

Article VIII<u><br>Seal</u>

The Board shall approve a suitable corporate seal. The seal may be used by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced.

Article IX<u><br>Fiscal Year</u>

The fiscal year of the Corporation shall be as fixed by the Board from time to time. If the Board makes no determination to the contrary, the fiscal year of the Corporation shall end on the 31st day of December in each year.

Article X<u><br>Waiver of Notice</u>

Whenever any notice whatsoever is required to be given by these By-laws, by the Certificate or by law, the person entitled thereto may, either before or after the meeting or other matter in respect of which such notice is to be given, waive such notice in writing or as otherwise permitted by law, which shall be filed with or entered upon the records of the meeting or the records kept with respect to such other matter, as the case may be, and in such event such notice need not be given to such person and such waiver shall be deemed equivalent to such notice.

Article XI<u><br>Amendments</u>

These By-laws may be altered, amended or repealed, in whole or in part, or new By-laws may be adopted by the stockholders or by the Board at any meeting thereof; p<u>rovided</u>, <u>however</u>, that notice of such alteration, amendment, repeal or adoption of new By-laws is contained in the notice of such meeting of the stockholders or in the notice of such meeting of the Board and, in the latter case, such notice is given not less than 24 hours prior to the meeting. Unless a higher percentage is required by the Certificate, all such amendments must be approved by either the holders of a majority of the combined voting power of the outstanding shares of all classes and series of capital stock of the Corporation entitled generally to vote in the election of directors of the Corporation, voting as a single class, or by a majority of the directors present at any meeting of the Board.

Article XII<u><br>Miscellaneous</u>

SECTION 12.1 <u>Execution of Documents</u>*.* The Board or any committee thereof shall designate the officers, employees and agents of the Corporation who shall have power to execute and deliver deeds, contracts, mortgages, bonds, debentures, indentures, notes, checks, drafts and other orders for the payment of money and other documents for and in the name of the Corporation and may authorize (including, without limitation, authority to redelegate) by written instrument to other officers, employees or agents of the Corporation. Such delegation may be by resolution or otherwise and the authority granted shall be general or confined to specific matters, all as the Board or any such committee may determine. In the absence of such designation referred to in the first sentence of this Section, the officers of the Corporation shall have such power so referred to, to the extent incident to the normal performance of their duties.

SECTION 12.2 <u>Deposits</u>. All funds of the Corporation not otherwise employed shall be deposited from time to time to the credit of the Corporation or otherwise as the Board or any committee thereof or any officer of the Corporation to whom power in respect of financial operations shall have been delegated by the Board or any such committee or in these By-laws shall select.

SECTION 12.3 <u>Checks</u>. All checks, drafts and other orders for the payment of money out of the funds of the Corporation, and all notes or other evidences of indebtedness of the Corporation, shall be signed on behalf of the Corporation in such manner as shall from time to time be determined by resolution of the Board or of any committee thereof or by any officer of the Corporation to whom power in respect of financial operations shall have been delegated by the Board or any such committee thereof or as set forth in these By-laws.

SECTION 12.4 <u>Proxies in Respect of Stock or Other Securities of Other Corporations</u>. The Board or any committee thereof shall designate the officers of the Corporation who shall have authority from time to time to appoint an agent or agents of the Corporation to exercise in the name and on behalf of the Corporation the powers and rights which the Corporation may have as the holder of stock or other securities in any other corporation or other entity, and to vote or consent in respect of such stock or securities; such designated officers may instruct the person or persons so appointed as to the manner of exercising such powers and rights; and such designated officers may execute or cause to be executed in the name and on behalf of the Corporation and under its corporate seal, or otherwise, such written proxies, powers of attorney or other instruments as they may deem necessary or proper in order that the Corporation may exercise its said powers and rights.

SECTION 12.5 <u>Sub</u>j<u>ect to Law and Certificate of Incorporation</u>. All powers, duties and responsibilities provided for in these By-laws, whether or not explicitly so qualified, are qualified by the provisions of the Certificate and applicable laws.

SECTION 12.6 <u>Severability</u>. If any provision or provisions of these By-laws shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of these By-laws (including, without limitation, all portions of any paragraph of these By-laws containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (b) to the fullest extent possible, the provisions of these By-laws (including, without limitation, all portions of any paragraph of these By-laws containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or enforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

## Exhibit 3.3

**Exhibit 3.3**

**CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RIGHTS OF<br> SERIES A CUMULATIVE CONVERTIBLE PARTICIPATING PREFERRED STOCK<br> OF ADI GLOBAL DISTRIBUTION INC.**

 

*Pursuant to Section 151 of the<br> General Corporation Law of the State of Delaware*

The undersigned, pursuant to the provisions of Section 151 of the General Corporation Law of the State of Delaware (the "<u>DGCL</u>"), does hereby certify that, pursuant to the authority expressly vested in the Board of Directors of ADI Global Distribution Inc., a Delaware corporation (the "<u>Corporation</u>"), by the Certificate of Incorporation, the Board of Directors has by resolution duly provided for the issuance of and created a series of preferred stock of the Corporation, par value $0.001 per share, and in order to fix the designation and amount and the voting powers, preferences and relative, participating, optional and other special rights, and the qualifications, limitations and restrictions, of such series of preferred stock, has duly adopted resolutions setting forth such rights, powers and preferences, and the qualifications, limitations and restrictions thereof, of such series of preferred stock as set forth in this Certificate of Designations, Preferences and Rights of Series A Cumulative Convertible Participating Preferred Stock (this "<u>Certificate</u>").

 

*Section 1. Number of Shares and Designation*. [·] shares of preferred stock of the Corporation shall constitute a series of preferred stock designated as Series A Cumulative Convertible Participating Preferred Stock (the "<u>Preferred Stock</u>"). Subject to and in accordance with the provisions of <u>Section 11(b)</u>, the number of shares of Preferred Stock may be increased (to the extent of the Corporation's authorized and unissued preferred stock) by further resolution duly adopted by the Board of Directors and the filing of a certificate of increase with the Secretary of State of the State of Delaware.

 

*Section 2. Rank*. Each share of Preferred Stock shall rank equally in all respects and shall be subject to the provisions herein. The Preferred Stock shall, with respect to payment of dividends, redemption payments, rights (including as to the distribution of assets) upon liquidation, dissolution or winding up of the affairs of the Corporation, or otherwise (<u>i</u>) rank senior and prior to the Corporation's common stock, par value $0.001 per share (the "<u>Common Stock</u>"), and each other class or series of equity securities of the Corporation, whether currently issued or issued in the future, that by its terms does not expressly rank senior to, or on parity with, the Preferred Stock as to payment of dividends, redemption payments, rights (including as to the distribution of assets) upon liquidation, dissolution or winding up of the affairs of the Corporation, or otherwise (all of such equity securities, including the Common Stock, are collectively referred to herein as "<u>Junior Securities</u>"), (<u>ii</u>) rank junior to each class or series of equity securities of the Corporation, whether currently issued or issued in the future without violation of this Certificate, that by its terms expressly ranks senior to the Preferred Stock as to payment of dividends, redemption payments, rights (including as to the distribution of assets) upon liquidation, dissolution or winding up of the affairs of the Corporation, or otherwise (all of such equity securities are collectively referred to herein as "<u>Senior Securities</u>"), and (<u>iii</u>) rank on parity with each class or series of equity securities of the Corporation, whether currently issued or issued in the future without violation of this Certificate, that expressly provides that it ranks on parity with the Preferred Stock as to payment of dividends, redemption payments or rights (including as to the distribution of assets) upon liquidation, dissolution or winding up of the affairs of the Corporation (all of such equity securities are collectively referred to herein as "<u>Parity Securities</u>"). The respective definitions of Junior Securities, Senior Securities and Parity Securities shall also include any securities, rights or options exercisable or exchangeable for or convertible into any of the Junior Securities, Senior Securities or Parity Securities, as the case may be.

 

 

*Section 3. Definitions*.

&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) As used herein, the following terms shall have the meanings set forth below or in the section cross-referenced below, as applicable, whether used in the singular or the plural:

"<u>Acceptable Exchanges</u>" means The NASDAQ Global Select Market and NYSE (or either of their respective successors).

"<u>Accrued Dividends</u>" means, as of any date, with respect to any share of Preferred Stock, all dividends that have accrued pursuant to <u>Section 4(a)(ii)</u>, whether or not declared, but that have not, as of such date, been paid as Cash Dividends. "Accrued Dividends" shall include Interim Accrued Dividends and Compounded Dividends on such share. For the avoidance of doubt, for all purposes of this Certificate, any Preferred Dividends that accrue in a Payment Period shall be Interim Accrued Dividends prior to the Preferred Dividend Payment Date and, to the extent not paid as Cash Dividends on a Preferred Dividend Payment Date, shall as of such Preferred Dividend Payment Date be Compounded Dividends and added to the Accumulated Amount.

"<u>Accumulated Amount</u>" means, with respect to any share of Preferred Stock, as of any date of determination, the sum of (a) the Liquidation Preference plus (b) the Compounded Dividends with respect to such share of Preferred Stock as of such date.

"<u>Affiliate</u>" has the meaning given to such term in the Shareholders Agreement.

"<u>As-Converted Common Stock</u>" means at the time of determination (i) the issued and outstanding Common Stock, (ii) shares of Common Stock issuable upon conversion of all issued and outstanding shares of Preferred Stock (including shares of Preferred Stock issued as dividends thereon pursuant to this Certificate), and (iii) shares of Common Stock issuable upon the conversion, exchange or settlement of any other issued and outstanding securities or rights of or issued by the Corporation but only to the extent at the time of determination the holder thereof has the right to so convert, exchange or settle such securities or rights.

"<u>Beneficially Own</u>" and "<u>Beneficial Ownership</u>" has the meaning given such term in Rule 13d-3 under the Exchange Act, and a Person's beneficial ownership of Capital Stock of any Person shall be calculated in accordance with the provisions of such rule, but without taking into account any contractual restrictions or limitations on voting or other rights; <u>provided</u>, <u>however</u>, that for purposes of determining beneficial ownership, a Person shall be deemed to be the beneficial owner of any security which may be acquired by such Person, whether within sixty (60) days or thereafter, upon the conversion, exchange or exercise of any warrants, options, rights or other securities.

"<u>Board of Directors</u>" means the board of directors of the Corporation or (other than for purposes of <u>Section 12</u> of this Certificate) any committee thereof duly authorized to act on behalf of such board of directors for the purposes in question.

"<u>Business Day</u>" means any day that is not a Saturday, a Sunday or any other day on which commercial banks are generally required or authorized by Law to be closed in New York City, New York.

"<u>By-laws</u>" means the Amended and Restated By-Laws of the Corporation, as amended from time to time.

"<u>Capital Stock</u>" of any Person means any and all shares, interests (including partnership interests), rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such Person, including any preferred stock, but excluding any debt securities convertible into such equity.

"<u>Cash Dividend</u>" has the meaning set forth in <u>Section 4(a)(ii).</u>

"<u>CD&R</u>" shall mean Clayton, Dubilier & Rice, LLC or a successor thereto.

"<u>CD&R Affiliate</u>" shall mean any of CD&R, any private equity fund managed or advised by CD&R or any general partner thereof, or any of their respective Affiliates.

"<u>CD&R Designee</u>" has the meaning set forth in <u>Section 12(a).</u>

"<u>CD&R Group</u>" shall mean the CD&R Shareholder together with its Affiliates, including CD&R Affiliates.

"<u>CD&R Person</u>" has the meaning given to such term in the Shareholders Agreement.

"<u>CD&R Shareholder</u>" has the meaning given to such term in the Shareholders Agreement.

"<u>CD&R Shareholder Parties</u>" has the meaning given to such term in the Shareholders Agreement.

"<u>Certificate</u>" has the meaning set forth in the preamble.

"<u>Certificate of Incorporation</u>" means the Amended and Restated Certificate of Incorporation of the Corporation, as amended from time to time.

"<u>Change of Control</u>" means, following the Distribution Date the occurrence, directly or indirectly, of any of the following:

&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;(i) any purchase, merger, acquisition or other transaction or series of related transactions immediately following which any Person or Group (excluding the Investor or its Affiliates or any Group including the Investor or its Affiliates) shall Beneficially Own, directly or indirectly, Voting Stock entitling such Person or Group to exercise more than 50% of the total voting power of all classes of Voting Stock of the Corporation, other than as a result of any such transaction in which (x) the holders of securities that represented 100% of the Voting Stock of the Corporation immediately prior to such transaction are substantially the same as the holders of securities that represent a majority of the total voting power of all classes of Voting Stock of the surviving Person or any parent entity thereof immediately after such transaction and (y) the holders of securities that represented 100% of the Voting Stock of the Corporation immediately prior to such transaction own directly or indirectly Voting Stock of the surviving Person or any parent entity thereof in substantially the same proportion to each other as immediately prior to such transaction;

&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;(ii) any transaction or series of related transactions immediately following which the Persons who Beneficially Own 100% of the Voting Stock of the Corporation immediately prior to such transaction or transactions cease to Beneficially Own more than 50% of the Voting Stock of the Corporation, any successor thereto or any parent entity thereof immediately following such transaction or transactions; or

&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;(iii) (<u>x</u>) the Corporation merges or consolidates with or into any other Person, another Person merges with or into the Corporation, or the Corporation conveys, sells, transfers or leases (including through a division) all or substantially all of the Corporation's assets to another Person or (<u>y</u>) the Corporation engages in any recapitalization, reclassification or other transaction in which all or substantially all of the Common Stock is exchanged for or converted into cash, securities or other property, in each case other than any such transaction:

&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;(A) which is effected solely to change the Corporation's jurisdiction of incorporation and results in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of common stock of the surviving 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;&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) a sale, lease or transfer to a Subsidiary or a Person that becomes a Subsidiary of the Corporation; or

&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;(C) where the Voting Stock outstanding immediately prior to such transaction is converted into or exchanged for Voting Stock of the surviving or transferee Person constituting a majority of the outstanding shares of such Voting Stock of such surviving or transferee Person (immediately after giving effect to such merger or consolidation).

"<u>Change of Control Effective Date</u>" has the meaning set forth in <u>Section 10(b)</u>.

"<u>Change of Control Redemption</u>" has the meaning set forth in <u>Section 10(b)</u>.

"<u>COC Redemption Date</u>" has the meaning set forth in <u>Section 10(b)</u>.

"<u>COC Redemption Notice</u>" has the meaning set forth in <u>Section 10(b)</u>.

"<u>COC Redemption Price</u>" has the meaning set forth in <u>Section 10(b)</u>.

"<u>Code</u>" means the U.S. Internal Revenue Code of 1986, as amended.

"<u>Common Stock</u>" has the meaning set forth in <u>Section 2</u>.

"<u>Common Stock Dividend Record Date</u>" has the meaning set forth in <u>Section 4(a)(iv)</u>.

"<u>Common Stock Liquidity Conditions</u>" will be satisfied if and only if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the offer and sale of all shares of Common Stock by such Holder are registered pursuant to an effective
registration statement under the Securities Act and such registration statement is reasonably expected by the Corporation to remain effective
and usable, by such Holder to sell all such shares of Common Stock, continuously during the period from, and including, the Conversion
Option Date or Redemption Date, as applicable, to, and including, the two (2) year anniversary after the date each such share of
Common Stock is issued ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each share of Common Stock referred to in <u>clause (a)</u> above (i) will, when issued and
when sold or otherwise transferred pursuant to the registration statement referred to in such <u>clause (a)</u> (1) be admitted for
book-entry settlement through The Depository Trust Company with an "unrestricted" CUSIP number; and (2) unless sold to
the Corporation or an Affiliate of the Corporation, not be evidenced by any certificate that bears a legend referring to transfer restrictions
under the Securities Act or other securities laws, and (ii) will, when issued, be listed and admitted for trading, without suspension
or material limitation on trading, on an Acceptable Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Corporation has not received any written threat or notice of delisting or suspension by the applicable
exchange referred to in clause (b)(ii) for which the applicable or threatened delisting or suspension has not been cured, remediated or
otherwise removed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the number of shares of Common Stock issuable upon conversion of all shares of Preferred Stock pursuant
to such Conversion Option, or at the time of such Redemption Notice, would not exceed the number of authorized, but unissued, shares of
Common Stock then available to be issued by the Corporation.

"<u>Common Stock Trading Price</u>" means, as of any Trading Day, the closing price of a share of Common Stock on such Trading Day (as reported on Bloomberg, based on composite transactions for the Acceptable Exchange on which the Common Stock is then listed).

"<u>Compounded Dividends</u>" means, with respect to any share of Preferred Stock, as of any date of determination, (a) if a Preferred Dividend Payment Date has occurred since the Issuance Date, the aggregate Accrued Dividends with respect to such share as of the Preferred Dividend Payment Date immediately preceding such date of determination (determined, for the avoidance of doubt, after giving effect to the payment of Cash Dividends, if any, on such immediately preceding Preferred Dividend Payment Date) or (b) if no Preferred Dividend Payment Date has occurred since the Issuance Date of such share, zero.

"<u>control</u>" (including the terms "<u>controlling</u>", "<u>controlled by</u>" and "<u>under common control with</u>"), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee or executor, by contract or otherwise.

"<u>Conversion Date</u>" has the meaning set forth in <u>Section 6(b)(iii)</u>.

"<u>Conversion Notice</u>" has the meaning set forth in <u>Section 6(b)(ii)</u>.

"<u>Conversion Option</u>" has the meaning set forth in <u>Section 6(a)(i)(A)</u>.

"<u>Conversion Option Date</u>" has the meaning set forth in <u>Section 6(a)(i)(A)</u>.

"<u>Conversion Option Measurement Period</u>" has the meaning set forth in <u>Section 6(a)(i)(A)</u>.

"<u>Conversion Price</u>" means, as of any date, the Initial Conversion Price, as adjusted pursuant to <u>Section 9</u>.

"<u>Conversion Right</u>" has the meaning set forth in <u>Section 6(a)(i)(B)</u>.

"<u>Convertible Securities</u>" means indebtedness or shares of Capital Stock convertible into or exchangeable for Common Stock.

"<u>Corporation</u>" has the meaning set forth in the preamble.

"<u>Covered Persons</u>" has the meaning set forth in <u>Section 12(d)</u>.

"<u>Debt Financing Documents</u>" means the [__].

"<u>DGCL</u>" has the meaning set forth in the preamble.

"<u>Distribution Date</u>" has the meaning set forth in the Separation Agreement.

"<u>Dividend Rate</u>" means 7.00% *per annum;* provided that, upon the occurrence and during the continuation of a Triggering Event, the Dividend Rate shall be increased to 10.00% *per annum* (the "<u>Noncompliance Additional Rate</u>") in accordance with <u>Section 4(b)</u>.

"<u>Ex-Date</u>" means, with respect to an issuance, dividend or distribution on shares of Common Stock, the first date on which shares of Common Stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such issuance, dividend or distribution (including pursuant to due bills or similar arrangements required by the relevant stock exchange).

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended from time to time.

"<u>Exchange Agreement</u>" has the meaning given to such term in the Shareholders Agreement.

"<u>Exchange Property</u>" has the meaning set forth in <u>Section 7(a)</u>.

"<u>Exempted Securities</u>" has the meaning given to such term in the Shareholders Agreement.

"<u>Group</u>" means any "group" as such term is used in <u>Section 13(d)(3)</u> of the Exchange Act.

"<u>Holder</u>" means, at any time, any Person in whose name shares of Preferred Stock are registered, which may be treated by the Corporation as the absolute owner of such shares of Preferred Stock for the purpose of making payment and settling the related conversions and for all other purposes.

"<u>Implied Quarterly Dividend Amount</u>" means, with respect to any share of Preferred Stock, as of any date, the product of (a) the Accumulated Amount of such share on the first day of the applicable Payment Period (or in the case of the first Payment Period for such share, as of the Issuance Date of such share) multiplied by (b) one-fourth of the Dividend Rate applicable on such date; provided that if the Dividend Rate adjusts in accordance with the definition thereof, clause (b) of this definition shall be appropriately adjusted to reflect such adjusted Dividend Rate.

"<u>Initial Conversion Price</u>" means $[·] per share of Common Stock.

"<u>Interim Accrued Dividends</u>" means with respect to any share of Preferred Stock outstanding during a Payment Period with respect to which the Preferred Dividend Payment Date has not yet occurred, the aggregate Preferred Dividends that have accrued on such share of Preferred Stock as of the date of determination.

"<u>Investor</u>" means, collectively, one or more CD&R Affiliates (as defined in the Shareholders Agreement) who acquire shares of Preferred Stock pursuant to the Exchange Agreement.

"<u>Issuance Date</u>" means, with respect to a share of Preferred Stock, the date of issuance of such share of Preferred Stock, it being understood that with respect to the shares of Preferred Stock received by the Holders pursuant to the terms of the Exchange Agreement, the date of issuance in respect of such shares of Preferred Stock shall be deemed the Distribution Date.

"<u>Junior Securities</u>" has the meaning set forth in <u>Section 2</u>.

"<u>Law</u>" has the meaning set forth in the Shareholders Agreement.

"<u>Liquidation</u>" means the voluntary or involuntary liquidation, dissolution or winding up of the Corporation, including any reorganization or liquidation of the Corporation pursuant to applicable federal, state or local bankruptcy or insolvency law.

"<u>Liquidation Preference</u>" means, with respect to each share of Preferred Stock, $1,000.00 per share, as appropriately adjusted for any stock split, stock division or stock combination affecting the Preferred Stock.

"<u>Majority Vote</u>" means the vote or written consent of holders of outstanding shares of Preferred Stock, voting as a separate class on an as-converted basis, representing a majority of the aggregate Accumulated Amount on all outstanding shares of Preferred Stock.

"<u>Market Price</u>" means, with respect to any particular security on any particular date, (<u>i</u>) if such security is listed or quoted on a principal U.S. national or regional securities exchange or traded on an over-the-counter market, the volume weighted average price per share (as reported on Bloomberg based, in the case of a listed security, on composite transactions for the principal U.S. national or regional securities exchange on which such security is listed or quoted) of such security for the period of ten (10) consecutive Trading Days preceding the date of determination (or for any other period specified for this purpose in the applicable provision of this Certificate), or (<u>ii</u>) if such security is not listed or quoted on a principal U.S. national or regional securities exchange or traded on an over-the-counter market, the fair market value of such security on the date of determination, as determined by a nationally recognized independent investment banking firm that has for this purpose (<u>x</u>) been selected by the Board of Directors and (<u>y</u>) been consented to by Majority Vote.

"<u>NYSE</u>" means the New York Stock Exchange (or its successor).

"<u>Options</u>" means rights, options or warrants to subscribe for, purchase or otherwise acquire Common Stock or Convertible Securities.

"<u>Original Issuance Date</u>" means the date of closing of the transactions contemplated by the Exchange Agreement, it being understood that such date is the Distribution Date.

"<u>Parity Securities</u>" has the meaning set forth in <u>Section 2</u>.

"<u>Participating Dividends</u>" has the meaning set forth in <u>Section 4(a)(i)</u>.

"<u>Payment Period</u>" means, with respect to a share of Preferred Stock, the period beginning on the day after the preceding Preferred Dividend Payment Date (or if no Preferred Dividend Payment Date has occurred since the Issuance Date of such share of Preferred Stock, the day that would have been the day after the preceding Preferred Dividend Payment Date had the Issuance Date with respect to such share of Preferred Stock occurred prior to such date) to and including the next Preferred Dividend Payment Date.

"<u>Person</u>" means an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act).

"<u>Preferred Dividend Payment Date</u>" means, with respect to any share of Preferred Stock, January 15, April 15, July 15 and October 15 of each year (each, a "<u>Quarterly Date</u>"), commencing on the first Quarterly Date immediately following the Issuance Date; <u>provided</u>, that if any such Quarterly Date is not a Business Day then the "Preferred Dividend Payment Date" shall be the next Business Day immediately following such Quarterly Date.

"<u>Preferred Dividends</u>" has the meaning set forth in <u>Section 4(a)(ii)</u>.

"<u>Preferred Stock</u>" has the meaning set forth in <u>Section 1</u>.

"<u>Pro Rata Repurchase</u>" means any purchase of shares of Common Stock by the Corporation or any Affiliate thereof (other than, if applicable, the Investor or any of its Affiliates) pursuant to any tender offer or exchange offer subject to Section 13(e) of the Exchange Act, or pursuant to any other offer available to substantially all holders of Common Stock, whether for cash, shares of capital stock of the Corporation, other securities of the Corporation, evidences of indebtedness of the Corporation or any other Person or any other property (including shares of capital stock, other securities or evidences of indebtedness of a Subsidiary of the Corporation), or any combination thereof, effected while any shares of Preferred Stock are outstanding; <u>provided</u>, <u>however</u>, that "Pro Rata Repurchase" shall not include any purchase of shares by the Corporation or any Affiliate thereof made in accordance with the requirements of Rule 10b-18 as in effect under the Exchange Act. The "<u>Effective Date</u>" of a Pro Rata Repurchase means the date of acceptance of shares for purchase or exchange under any tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with respect to any Pro Rata Repurchase that is not a tender or exchange offer.

"<u>Purchased Shares</u>" has the meaning set forth in <u>Section 9(a)(iv)</u>.

"<u>Redemption Date</u>" has the meaning set forth in <u>Section 10(b)</u>.

"<u>Redemption Notice</u>" has the meaning set forth in <u>Section 10(b)</u>.

"<u>Redemption Price</u>" has the meaning set forth in <u>Section 10(b)</u>.

"<u>Register</u>" means the securities register maintained in respect of the Preferred Stock by the Corporation, or to the extent the Corporation has engaged a transfer agent, such transfer agent.

"<u>Reorganization Event</u>" means any of the following transactions, but in all cases shall not include a spin-off transaction:

&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;(i) any reorganization, consolidation, merger, share exchange, statutory exchange, tender or exchange offer or other similar business combination involving the Corporation and another Person, in each case, pursuant to which the Common Stock will be converted into, or exchanged for, cash, securities or other property of the Corporation or another Person;

&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;(ii) any reclassification, recapitalization or reorganization of the Common Stock into securities other than the Common Stock; or

&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;(iii) any direct or indirect sale, assignment, conveyance, transfer, lease or other disposition (including in connection with any Liquidation and including by division) by the Corporation of all or substantially all of its assets or business, in each case under this clause (<u>iii</u>), pursuant to which the Common Stock will be converted into cash, securities or other property.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended.

"<u>Senior Securities</u>" has the meaning set forth in <u>Section 2</u>.

"<u>Separation Agreement</u>" has the meaning given to such term in the Shareholders Agreement; <u>provided</u> that solely for purposes hereof, any amendment, modification, supplement or waiver of the Separation Agreement shall be disregarded unless consented to in writing by the CD&R Shareholder.

"<u>Shareholders Agreement</u>" means that certain Shareholders Agreement, dated as of [__], 2026, by and among the Corporation, the CD&R Shareholder, Clayton, Dubilier & Rice Fund XII, L.P. (solely for purposes of <u>Section 3.6</u> thereof), CD&R Channel Holdings II, L.P. and the other party named therein, as the same may be amended from time to time in accordance with its terms.

"<u>Stockholder Voting Power</u>" means the aggregate number of shares of Voting Stock of the Corporation (on an as-converted to Common Stock basis), with the calculation of such aggregate number of shares of Voting Stock being conclusively made for all purposes under this Certificate and the Certificate of Incorporation, absent manifest error, by the Corporation based on the Corporation's review of the Register, the Corporation's other books and records, each Holder's public filings pursuant to Section 13 or Section 16 of the Exchange Act and any other written evidence reasonably satisfactory to the Corporation regarding any Holder's beneficial ownership of any securities of the Corporation.

"<u>Subsidiary</u>" or "<u>Subsidiaries</u>" means, with respect to any Person, any other Person of which (<u>i</u>) if a corporation, a majority of the total voting power of shares of capital stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (<u>ii</u>) if a limited liability company, partnership, association or other business entity (other than a corporation), a majority of partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more other Subsidiaries of that Person or a combination thereof and for this purpose, a Person or Persons owns a majority ownership interest in such a business entity (other than a corporation) if such Person or Persons shall be allocated a majority of such business entity's gains or losses or shall be or control any managing director or general partner of such business entity (other than a corporation). For the purposes hereof, the term "Subsidiary" shall include all Subsidiaries of such Subsidiary.

"<u>Trading Day</u>" means a day on which the Acceptable Exchange on which the Common Stock is then listed is open for the transaction of business.

"<u>Transfer Restrictions</u>" means, when and as applicable to such Transfer, the restrictions on Transfer (as defined in the Shareholders Agreement) set forth in Section 3.3 of the Shareholders Agreement.

"<u>Triggering Event</u>" means: (<u>i</u>) the Corporation's failure to pay any Participating Dividends when required pursuant to, and in accordance with, <u>Section 4(a)(i)</u> or to pay (or accrue and compound, as applicable) Preferred Dividends on each Preferred Dividend Payment Date pursuant to, and in accordance with, <u>Section 4(a)(ii)</u> and <u>Section 4(a)(iii)</u>; (<u>ii</u>) the Corporation's failure to comply with its obligations to effect the conversion of shares of Preferred Stock (including to reserve and keep available for issuance the requisite number of shares of Common Stock and Preferred Stock) in compliance with <u>Section 6</u>, (<u>iii</u>) the Corporation's violation of any restrictions set forth in this Certificate relating to payment of dividends or distributions to the holders of Common Stock or other Capital Stock, (<u>iv</u>) the Corporation taking any action described in <u>Section 11(b)</u> without the prior Majority Vote, or (<u>v</u>) the Corporation's failure to maintain the listing of the Common Stock on an Acceptable Exchange (or, in the case of any Exchange Property in connection with any Reorganization Event (other than a Reorganization Event that (a) constitutes a Change of Control and (b) results in the equity securities of the Corporation (or any successor thereto) being exchanged or, in the case of the Preferred Stock, redeemed for cash), such applicable Exchange Property).

"<u>Voting Stock</u>" means (a) with respect to the Corporation, the Common Stock, the Preferred Stock and any other Capital Stock of the Corporation having the right to vote generally in any election of directors of the Board of Directors and (b) with respect to any other Person, all Capital Stock of such Person having the right to vote generally in any election of directors of the board of directors of such Person or other similar governing body.

&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) In addition to the above definitions, unless the context requires otherwise:

&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;(i) any reference to any statute, regulation, rule or form as of any time shall mean such statute, regulation, rule or form as amended or modified and shall also include any successor statute, regulation, rule or form from time to time;

&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;(ii) the word "including" shall be deemed to be followed by the words "without limitation";

&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;(iii) references to "$" or "dollars" means the lawful coin or currency the United States of America;

&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;(iv) the phrase "to the extent" means the degree to which something extends (and not "if"); and

&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;(v) references to "Section" are references to Sections of this Certificate.

 

*Section 4. Dividends*.

&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) Holders of the issued and outstanding shares of Preferred Stock shall be entitled to receive dividends on the terms described 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Holders of shares of Preferred Stock shall be entitled to participate equally and ratably with the holders of shares of Common Stock in all dividends paid on the shares of Common Stock (other than dividends paid in the form of Common Stock, Convertible Securities or Options with respect to which adjustments to the Conversion Price shall be made in accordance with this Certificate) as if immediately prior to each Common Stock Dividend Record Date, all shares of Preferred Stock then outstanding were converted into shares of Common Stock. Dividends payable pursuant to this <u>Section 4(a)(i)</u> (the "<u>Participating Dividends</u>") shall be payable on the same date that such dividends are payable to holders of shares of Common Stock, and no dividends shall be payable to holders of shares of Common Stock unless the full dividends contemplated by this <u>Section 4(a)(i)</u> are paid at the same time to the Holders of the Preferred Stock.

&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;(ii) In addition to any dividends pursuant to <u>Section 4(a)(i)</u>, dividends on each share of Preferred Stock shall accrue and accumulate on a daily basis, whether or not declared and whether or not the Corporation has funds legally available for the payment of such dividends, at the Dividend Rate multiplied by the Accumulated Amount on such share from and after the Issuance Date of such share until the redemption, conversion or other cancellation thereof (the "<u>Preferred Dividends</u>"). At the election of the Corporation with respect to each Preferred Dividend Payment Date, all Preferred Dividends accrued on a share of Preferred Stock since the immediately preceding Preferred Dividend Payment Date (as determined in accordance with the remaining provisions of this clause (ii) and clause (iii) below) shall either (x) if, as and when so authorized and declared by the Board of Directors, be paid in cash to the holder thereof on such Preferred Dividend Payment Date (any Preferred Dividend or portion of a Preferred Dividend paid in such manner, a "<u>Cash Dividend</u>"), or (y) to the extent not so paid in cash in accordance with the foregoing clause (x) automatically become Compounded Dividends and added to the Accumulated Amount for such share as of such Preferred Dividend Payment Date. The amount of Preferred Dividends accruing with respect to any share of Preferred Stock for any day shall be determined by dividing (x) the Implied Quarterly Dividend Amount as of such day by (y) the actual number of days in the Payment Period in which such day falls; <u>provided</u>, however, that if during any Payment Period the Dividend Rate is increased, then after the date of such increase the amount of Preferred Dividends accruing with respect to any share of Preferred Stock for any day shall be determined by dividing (x) the Implied Quarterly Dividend Amount (recalculated to take into account such increased Dividend Rate) by (y) the actual number of days in such Payment Period. The amount of Preferred Dividends payable with respect to any share of Preferred Stock for any Payment Period shall equal the sum of the daily Preferred Dividends amounts calculated in accordance with the prior sentence of this <u>Section 4(a)(ii)</u> with respect to such share during such Payment Period; provided, that, (i) to the extent the Issuance Date in respect of a share of Preferred Stock falls within such Payment Period, the Preferred Dividends payable in respect of such share of Preferred Stock for such Payment Period shall equal the sum of the daily Preferred Dividends calculated in accordance with the prior sentence of this Section 4(a)(ii) in respect of such share from and after the Issuance Date through the end of such Payment Period, and (ii) the amount of Preferred Dividends payable with respect to any share of Preferred Stock for any Payment Period shall be reduced by the amount of Preferred Dividends previously paid on such share of Preferred Stock in respect of such Payment Period. Preferred Dividend payments shall be aggregated per Holder and shall be made to the nearest cent (with $.005 being rounded upward).

&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;(iii) Any election by the Corporation to pay a Cash Dividend with respect to any Payment Period shall be applied consistently to all Preferred Dividends paid to all Holders with respect to such Payment Period. For the avoidance of doubt, it is understood that no Preferred Dividends may be declared and paid in securities or otherwise "in kind."

&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;(iv) Each Participating Dividend or Preferred Dividend shall be paid pro rata to the Holders of shares of Preferred Stock entitled thereto based on the ownership of such Preferred Stock. Each Participating Dividend or Preferred Dividend shall be payable to the Holders of Preferred Stock as they appear on the Register at the close of business on the record date designated by the Board of Directors for such dividends, which (<u>i</u>) with respect to Participating Dividends, shall be the same day as the record date for the payment of dividends to the holders of shares of Common Stock (the "<u>Common Stock Dividend Record Date</u>"), and (<u>ii</u>) with respect to Preferred Dividends, shall be not more than thirty (30) days nor less than ten (10) days preceding the applicable Preferred Dividend Payment 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;(b) Upon the occurrence of a Triggering Event, the Dividend Rate shall increase to the Noncompliance Additional Rate from and including the date on which the Triggering Event shall occur and be continuing through but excluding the date on which all then occurring Triggering Events are no longer continuing. The Dividend Rate shall not be increased further pursuant to this <u>Section 4(b)</u> for a subsequent Triggering Event occurring while the Noncompliance Additional Rate is in effect pursuant to this <u>Section 4(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;(c) At any time during which a Triggering Event shall occur and be continuing, without the consent of the Holders by Majority Vote, no dividends shall be declared or paid or set apart for payment, or other distributions declared or made, upon any Junior Securities, nor shall any Junior Securities be redeemed, purchased or otherwise acquired for any consideration (nor shall any moneys be paid to or made available for a sinking fund for the redemption of any shares of any such Junior Securities) by the Corporation, directly or indirectly (except, subject to and in accordance with the provisions of <u>Section 6</u> hereof, by conversion into or exchange for Junior Securities or the payment of cash in lieu of fractional shares in connection therewith) (other than repurchases of shares of Common Stock from applicable employees, officers or directors of the Corporation, in the ordinary course of business, following such employees', officers' and directors' termination of employment or engagement with the Corporation and its Subsidiaries). Without limiting the foregoing, without the consent of the Holders by Majority Vote, the Corporation shall not (<u>i</u>) declare, pay or set aside for payment any dividends or distributions upon any Junior Securities or (<u>ii</u>) repurchase, redeem or otherwise acquire any Junior Securities (other than repurchases of shares of Common Stock from employees, officers or directors of the Corporation in the ordinary course of business) for any consideration or pay any moneys or make available for a sinking fund for the redemption of any shares of such Junior Securities, unless, in each case, the Corporation, in its good faith judgment, reasonably determines that (<u>A</u>) immediately before and after the taking of such action, the fair value of the Corporation's assets would exceed the sum of its debts (including, for this purpose, the aggregate Accumulated Amount and the aggregate Interim Accrued Dividends of the Preferred Stock), (<u>B</u>) immediately after the taking of such action, the Corporation would be able to pay all of its debts (including, for this purpose, the aggregate Accumulated Amount and the aggregate Interim Accrued Dividends of the Preferred Stock) as they are reasonably expected to come due and (<u>C</u>) such action is otherwise in compliance with applicable Law.

 

*Section 5. Liquidation Right*s.

&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) In the event of any Liquidation, each Holder shall be entitled to receive liquidating distributions out of the assets of the Corporation, before any payment or distribution of any assets of the Corporation shall be made or set apart for holders of any Junior Securities, including the Common Stock, for such Holder's shares of Preferred Stock in an amount equal to the greater of (<u>i</u>) the sum of (<u>A</u>) the aggregate Accumulated Amount and (<u>B</u>) the aggregate Interim Accrued Dividends of such shares as of the date of the Liquidation and (<u>ii</u>) the amount such Holder would have received had such shares of Preferred Stock, immediately prior to such Liquidation, been converted into shares of Common Stock pursuant to <u>Section 6</u>, without regard to any of the limitations on conversion or convertibility contained therein; provided that, any such distributions or payments shall be made solely to the extent of funds legally available for distribution to its stockholders.

&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) In the event the assets of the Corporation available for distribution to stockholders upon a Liquidation shall be insufficient to pay in full the amounts payable with respect to all outstanding shares of Preferred Stock pursuant to <u>Section 5(a)</u>, such assets, or the proceeds thereof, shall be distributed among the Holders ratably in proportion to the full respective liquidating distributions to which they would otherwise be respectively entitled upon such Liquidation.

&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) Neither the sale, conveyance, exchange or transfer (for cash, shares of stock, securities or other consideration) of all or substantially all of the assets, capital stock or business of the Corporation (other than in connection with the liquidation, dissolution or winding up of the Corporation) nor the merger, consolidation, share exchange, statutory exchange or any other business combination transaction of the Corporation into or with any other Person shall by itself be deemed to be a Liquidation for purposes of this <u>Section 5</u>.

 

*Section 6. Conversion*.

&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) <u>Conversion of Preferred Stock</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to and in accordance with the provisions of this <u>Section 6</u> (including in the case of <u>clause (A)</u>, subject to the proviso to the first sentence of <u>clause (A)</u>), shares of Preferred Stock may be converted into shares of Common Stock as follows:

&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;(A) If (<u>a</u>) at any time after the Original Issuance Date, the Common Stock Trading Price exceeds 200% of the then applicable Conversion Price for at least 20 Trading Days (whether or not consecutive) during any 30 consecutive Trading Day period (such period, the "<u>Conversion Option Measurement Period</u>") and (<u>b</u>) the Corporation, at its option, delivers a written notice of conversion to the Holders of the Preferred Stock within 10 Business Days following the conclusion of the applicable Conversion Option Measurement Period, then each share of Preferred Stock outstanding shall be converted (the "<u>Conversion Option</u>"), as of the date of such notice (the "<u>Conversion Option Date</u>"), into such number of fully paid and non-assessable shares of Common Stock (calculated as to each conversion to the nearest 1/10,000th of a share) equal to the quotient of (<u>A</u>) the sum of (<u>1</u>) the Accumulated Amount and (<u>2</u>) the Interim Accrued Dividends on such share as of the Conversion Option Date, divided by (<u>B</u>) the Conversion Price of such share in effect as of the Conversion Option Date; <u>provided</u> that the Corporation shall not be entitled to exercise the Conversion Option unless (x) as of the Conversion Option Date all of the Common Stock Liquidity Conditions are satisfied and (y) the Lock-Up Period (as defined in the Shareholders Agreement) has terminated (or deemed to have terminated in respect of a portion of the Preferred Stock in accordance with the terms set forth in the Shareholders Agreement) or expired in accordance with the terms set forth in the Shareholders Agreement. The election by the Corporation not to exercise the Conversion Option with respect to any Conversion Option Measurement Period shall not limit the right of the Corporation to make such an election with respect to any subsequent Conversion Option Measurement Period.

&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;(B) Each Holder of shares of Preferred Stock shall have the right (the "<u>Conversion Right</u>"), at any time and from time to time, at such Holder's option, to convert all or any portion of such Holder's shares of Preferred Stock into fully paid and non-assessable shares of Common Stock. Upon a Holder's election to exercise its Conversion Right, each share of Preferred Stock for which the Conversion Right is exercised shall be converted into such number of shares of Common Stock (calculated as to each conversion to the nearest 1/10,000th of a share) equal to the quotient of (<u>A</u>) the sum of (<u>1</u>) the Accumulated Amount and (<u>2</u>) the Interim Accrued Dividends on such share as of the Conversion Date, divided by (<u>B</u>) the Conversion Price of such share in effect at the time of conversion.

&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;(ii) No fractional shares of Common Stock shall be issued upon the conversion of any shares of Preferred Stock. If more than one share of Preferred Stock subject to conversion is held by the same Holder, the number of full shares of Common Stock issuable upon conversion thereof shall be computed on the basis of the sum of (<u>A</u>) the aggregate Accumulated Amount and (<u>B</u>) the aggregate Interim Accrued Dividends as of the Conversion Date on all shares of Preferred Stock so subject. If the conversion of any share or shares of Preferred Stock results in a fractional share of Common Stock issuable after application of the immediately preceding sentence, the Corporation shall pay a cash amount in lieu of issuing such fractional share in an amount equal to the amount of such fractional interest multiplied by the Market Price of a share of Common Stock on the Trading Day immediately prior to the Conversion 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Corporation will at all times reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of effecting conversions of the Preferred Stock into shares of Common Stock, a number of shares of Common Stock equal to 110% of the number of shares of Common Stock issuable upon conversion of all then outstanding shares of Preferred Stock. The Corporation shall take all action permitted by Law, including calling meetings of stockholders of the Corporation and soliciting proxies for any necessary vote of the stockholders of the Corporation, to amend the Certificate of Incorporation to increase the number of authorized and unissued shares of Common Stock, if at any time there shall be insufficient authorized and unissued shares of Common Stock to permit such reservation. The Corporation covenants that the Preferred Stock and all Common Stock that may be issued upon conversion of Preferred Stock shall upon issuance be duly authorized, fully paid and non-assessable and will not be subject to preemptive rights or subscription rights of any other stockholder of the Corporation. The Corporation further covenants that the Corporation shall, at its sole expense, cause to be authorized for listing or quotation on an Acceptable Exchange, all Common Stock issuable upon conversion of the Preferred Stock, subject to official notice of issuance. The Corporation will use its reasonable best efforts to ensure that such Common Stock may be issued without violation of any applicable Law.

&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) <u>Mechanics of Conversion</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If the Corporation exercises the Conversion Option and delivers notice thereof in accordance with <u>Section 6(a)(i)(A)</u>, the Corporation shall promptly following the Conversion Option Date update or cause to be updated the Register, effective as of the Conversion Option Date, to reflect the shares of Common Stock held by such Holders as a result of the Conversion Option and shall comply with clause (b) of Common Stock Liquidity Conditions.

&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;(ii) The Conversion Right of a Holder of Preferred Stock pursuant to <u>Section 6(a)(i)(B)</u> shall be exercised by such Holder by delivering written notice to the Corporation that such Holder elects to convert all or a portion of the shares of Preferred Stock held by such Holder (a "<u>Conversion Notice</u>") and specifying the name or names (with address or addresses) in which shares of Common Stock are to be issued and (if so required by the Corporation or the Corporation's transfer agent) by a written instrument or instruments of transfer in form reasonably satisfactory to the Corporation or the transfer agent, as applicable, duly executed by such Holder or its legal representative. As promptly as practicable after the receipt of the Conversion Notice, and the payment of required taxes or duties pursuant to <u>Section 14(a),</u> if applicable, and in no event later than three Trading Days thereafter, the Corporation shall update or cause to be updated the Register to reflect the shares of Common Stock held by such Holder as a result of such conversion and shall issue and shall deliver or cause to be issued and delivered to such Holder, or to such other Person on such Holder's written order (<u>A</u>) evidence of such issuance reasonably satisfactory to such Holder, and (<u>B</u>) cash for any fractional interest in respect of a share of Common Stock arising upon such conversion settled as provided in <u>Section 6(a)(ii)</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The conversion of any share of Preferred Stock shall be deemed to have been made (i) in connection with any Conversion Option, at the close of business on the Conversion Option Date, and (ii) in connection with any exercise of the Conversion Right, at the close of business on the date of giving the Conversion Notice or, if later, the payment of required taxes or duties pursuant to <u>Section 14(a)</u>, if applicable (the "<u>Conversion Date</u>"). Until the Conversion Date with respect to any share of Preferred Stock has occurred, such share of Preferred Stock will remain outstanding and will be entitled to all of the powers, designations, preferences and other rights provided herein, including that such share shall (<u>A</u>) accrue and accumulate Preferred Dividends and participate in Participating Dividends pursuant to <u>Section 4</u> and (<u>B</u>) entitle the applicable Holder thereof to the voting rights provided in <u>Section 11</u>; <u>provided</u>, <u>however</u>, that any such shares that are redeemed pursuant to <u>Section 10</u> shall not be entitled to be converted.

&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) <u>Corporation's Obligations to Issue Common Stock</u>. Subject to <u>Section 6(a)(i)(A)</u> and the compliance with the terms and conditions of this Certificate applicable to the conversion of Preferred Stock, the Corporation's obligations to issue and deliver shares of Common Stock upon conversion of shares of Preferred Stock in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by any Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by any Holder or any other Person of any obligation to the Corporation or any violation or alleged violation of Law by any Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Corporation to any Holder in connection with the issuance of such shares of Common Stock.

 

 

*Section 7. Reorganization Events*.

&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) <u>Treatment of Preferred Stock Upon a Reorganization Event</u>. Subject to applicable Law and <u>Section 7(f)</u>, upon the occurrence of any Reorganization Event, (<u>i</u>) if the Corporation is the surviving company in such Reorganization Event, each share of Preferred Stock outstanding immediately prior to such Reorganization Event shall remain outstanding following such Reorganization Event (or be exchanged for an equivalent share of another class or series of preferred stock having rights, powers and preferences, and the qualifications, limitations and restrictions substantially identical to those set forth herein); <u>provided</u>, that (<u>x</u>) each share of Preferred Stock or any such replacement preferred stock as applicable shall become convertible into the kind and amount of securities, cash and other property that the applicable Holder of such share of Preferred Stock (other than the counterparty to the Reorganization Event or an Affiliate of such other party) would have received in such Reorganization Event had such share of Preferred Stock, immediately prior to such Reorganization Event, been converted into the applicable number of shares of Common Stock using the Conversion Price immediately prior to such Reorganization Event (such securities, cash and other property, the "<u>Exchange Property</u>"), without interest on such Exchange Property, and (<u>y</u>) appropriate adjustments shall be made to the conversion provisions set forth in <u>Section 6</u> and the adjustment to conversion price provisions set forth in <u>Section 9</u> and the other provisions of this Certificate as determined reasonably and in good faith by the Board of Directors to place the Holders (whether with respect to the Preferred Stock or any such replacement preferred stock as applicable) in as nearly as equal of a position as possible with respect to such matters following such Reorganization Event as compared to immediately prior to such Reorganization Event, or (<u>ii</u>) if the Corporation is not the surviving company in such Reorganization Event or will be dissolved in connection with such Reorganization Event, each share of Preferred Stock outstanding immediately prior to such Reorganization Event shall be converted or exchanged into a security of the Person surviving such Reorganization Event or such other continuing parent entity in such Reorganization Event having rights, powers and preferences, and the qualifications, limitations and restrictions thereof, as nearly equal as possible to those provided herein (with such adjustments as are appropriate to place the Holders in as nearly as equal of a position as possible following such Reorganization Event as compared to immediately prior to such Reorganization Event).

&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) <u>Form of Consideration</u>. In the event that shares of Preferred Stock become convertible into Exchange Property in connection with a Reorganization Event and the holders of Common Stock have the opportunity to elect the form of consideration to be received in such Reorganization Event, the Exchange Property shall be based on the types and amounts of consideration available for election by the holders of Common Stock and the holders of Preferred Stock shall be entitled to the same election on as nearly equal as possible terms applicable to the Common Stock; <u>provided</u>, <u>however</u>, that, to the extent the applicable transaction agreement provides for adjustments or limitations to such elected types and amounts of consideration that are generally applicable to holders of Common Stock making such elections, the Exchange Property will be subject to such adjustments and limitations.

&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) <u>Successive Reorganization Events</u>. The provisions of this <u>Section 7</u> shall similarly apply to successive Reorganization Events.

&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) <u>Notice of Reorganization Events</u>. The Corporation (or any successor) shall, no later than 10 days following the execution of definitive agreements in respect of any Reorganization Event, provide written notice thereof to the Holders and of the kind and amount of the cash, securities or other property that constitutes the Exchange Property, and any available election with respect to the Exchange Property that may be made. Failure to deliver such notice shall not affect the operation of this <u>Section 7</u> except to the extent such failure prejudices the Holders.

&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) <u>Requirements of Reorganization Events</u>. The Corporation shall not, without consent of the Holders acting by Majority Vote, enter into any agreement for, or consummate, any transaction or series of transactions constituting a Reorganization Event unless (i) such agreement provides for or does not interfere with or prevent (as applicable) conversion of the Preferred Stock into the Exchange Property in a manner that is consistent with and gives effect to this <u>Section 7</u>, (ii) to the extent that the Corporation is not the surviving company in such Reorganization Event or will be dissolved in connection with such Reorganization Event, proper provision shall be made in the agreements governing such Reorganization Event for the conversion of the Preferred Stock into a security of the Person surviving such Reorganization Event or such other continuing entity in such Reorganization Event, (iii) if the primary Exchange Property in any Reorganization Event consists of securities, such Exchange Property (and only such Exchange Property) shall be listed (or, as applicable, be convertible into securities listed) on an Acceptable Exchange and (iv) the issuer(s) of the Preferred Stock or any replacement preferred stock contemplated by Section 7(a) of this Certificate owns after such Reorganization Event, directly or indirectly, a substantial portion of the assets of the Corporation immediately preceding such Reorganization Event (and, if applicable, immediately preceding the first of the series of related transactions that included the Reorganization Event) (the "<u>Pre-Reorg Assets</u>") and cash or other consideration in lieu thereof with respect to the Pre-Reorg Assets not so owned 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;(f) <u>Partial Tender Offer</u>. Notwithstanding anything to the contrary stated herein, to the extent the Reorganization Event is structured as a tender offer that is for less than for all of the outstanding shares of Common Stock then outstanding, the Holders shall not be entitled to receive cash as Exchange Property in respect of the Preferred Stock held thereby and instead such Preferred Stock will continue to remain outstanding as if such Reorganization Event had not occurred, provided, that, if such tender offer constitutes a Change of Control and the Corporation has elected to effect a Change of Control Redemption by delivering a COC Redemption Notice to the Holders in accordance with <u>Section 10</u>, nothing herein shall preclude the Holders from receiving cash in respect of their Preferred Stock as part of the Change of Control Redemption; provided, further, that any Holder may elect to convert all or any portion of the shares of Preferred Stock held by such Holder into Common Stock in accordance with the provisions of <u>Section 6</u> at any time prior to the consummation of such Reorganization Event and receive cash in such tender offer in respect of the shares of Common Stock then held by such Holder following such conversion.

&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) <u>Change of Control</u>. For the sake of clarity, if a Reorganization Event constitutes a Change of Control and the Corporation has delivered a COC Redemption Notice, then <u>Section 10(b)</u> shall take precedence over this <u>Section 7</u> to the extent there is any inconsistency between such sections.

 

*Section 8. [Reserved]*.

 

 

*Section 9. Adjustments to Conversion Price*.

&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) <u>Adjustments to Conversion Price</u>. Except as provided in <u>Section 9(d)</u>, the Conversion Price shall be subject to the following adjustments:

&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;(i) <u>Stock Dividends and Distributions</u>. If the Corporation declares a dividend or makes a distribution on the Common Stock payable in shares of Common Stock, then the Conversion Price in effect at the opening of business on the Ex-Date for such dividend or distribution shall be adjusted to the price determined by multiplying the Conversion Price at the opening of business on such Ex-Date by the following fraction:

<u>OS<sub>0</sub></u><br>OS<sub>1</sub>

where,

OS<sub>0</sub> = the number of shares of Common Stock outstanding at the close of business on the Business Day immediately preceding the Ex-Date for such dividend or distribution.

OS<sub>1</sub> = the sum of the number of shares of Common Stock outstanding at the close of business on the Business Day immediately preceding the Ex-Date for such dividend or distribution plus the total number of shares of Common Stock constituting such dividend or distribution.

If any dividend or distribution described in this <u>Section 9(a)(i)</u> is declared but not so paid or made, the Conversion Price shall be readjusted, effective as of the date and time the Board of Directors determines not to make such dividend or distribution, to such Conversion Price that would exist had such adjustment not been made.

&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;(ii) <u>Subdivisions, Splits and Combination of the Common Stock</u>. If the Corporation subdivides, splits or combines the shares of Common Stock, then the Conversion Price in effect immediately prior to the effective date of such share subdivision, split or combination shall be adjusted to the price determined by multiplying the Conversion Price in effect immediately prior to the effective date of such share subdivision, split or combination by the following fraction:

<u>OS<sub>0</sub></u><br>OS<sub>1</sub>

where,

OS<sub>0</sub> = the number of shares of Common Stock outstanding immediately prior to the effective date of such share subdivision, split or combination.

OS<sub>1</sub> = the number of shares of Common Stock outstanding immediately after the opening of business on the effective date of such share subdivision, split or combination.

If the Conversion Price is adjusted in connection with any subdivision, split or combination described in this <u>Section 9(a)(ii)</u> but the outstanding shares of Common Stock are, for any reason, not subdivided, split or combined, the Conversion Price shall be readjusted, effective as of the date the Board of Directors determines not to subdivide, split or combine the outstanding shares of Common Stock, to such Conversion Price that would exist had such adjustment not been made.

&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;(iii) <u>Other Distributions</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;&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) If the Corporation distributes to all holders of shares of Common Stock any Convertible Securities or Options or any other assets for which there is no corresponding distribution in respect of the Preferred Stock pursuant to <u>Section 4(a)(i)</u> (other than pursuant to (x) a "spin-off", whereupon the Conversion Price will be equitably adjusted to allocate the economic value associated with the Preferred Stock as between the Corporation and the entity that is "spun-off", or (y) a rights plan which is subject to <u>Section 9(a)(v)</u> below), then the Conversion Price in effect immediately prior to the Ex-Date for such distribution shall be adjusted to the price determined by multiplying the Conversion Price in effect immediately prior to the Ex-Date for such distribution by the following fraction:

<u>SP<sub>0</sub> – FMV</u> <br>SP<sub>0</sub>

where,

SP<sub>0</sub> = the Market Price of a share of Common Stock on the date immediately prior to the Ex-Date for such distribution.

FMV = the fair market value of the portion of the distribution applicable to one share of Common Stock on the Ex-Date for such distribution, in the case of a non-cash distribution or with respect to the non-cash portion of a distribution, if any, as determined (i) by the good faith determination of the Board of Directors or (ii) if, within five Business Days following notice from the Corporation of the value determined by the Board of Directors pursuant to clause (i), the Holders of a majority of the outstanding shares of Preferred Stock object in good faith to such determination, then the fair market value will be determined by a nationally recognized independent investment banking firm that has for this purpose (x) been selected by the Board of Directors, and (y) is reasonably acceptable to the Holders acting by Majority Vote; <u>provided</u>, that such value, whether determined pursuant to the foregoing clause (i) or (ii), shall not for the purposes hereof in any event be equal to or greater than the Market Price of a share of Common Stock on such date.

In the event that such distribution described in this Section 9(a)(iii) is not so paid or made, the Conversion Price shall be readjusted, effective as of the date the Board of Directors publicly announces its decision not to pay or make such dividend or distribution, to the Conversion Price that would then be in effect if such dividend or distribution had not been declared.

&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;(iv) <u>Certain Repurchases of Common Stock</u>. If the Corporation effects a Pro Rata Repurchase of Common Stock that involves the payment by the Corporation of consideration per share of Common Stock that exceeds the Market Price of a share of Common Stock on the Effective Date of such Pro Rata Repurchase; <u>provided</u> that if part or all of the consideration is not cash, the fair market value of the non-cash consideration shall be determined by a nationally recognized independent investment banking firm that has for this purpose (x) been selected by the Board of Directors, and (y) been consented to by the Holders by Majority Vote, then the Conversion Price in effect immediately prior to the Effective Date of such Pro Rata Repurchase shall be adjusted (such adjustment to become effective immediately prior to the opening of business on the day following the Effective Date of such Pro Rata Repurchase) by multiplying the Conversion Price in effect immediately prior to the Effective Date of such Pro Rata Repurchase by the following fraction:

<u>(OS<sub>0</sub> x SP<sub>0</sub>) – AC</u><br>SP<sub>0</sub> x OS<sub>1</sub>

Where,

SP<sub>0</sub> = the Market Price of a share of Common Stock on the Trading Day immediately preceding the first public announcement of the intent to effect such Pro Rata Repurchase.

OS<sub>0</sub> = the number of shares of Common Stock outstanding at the Effective Date of such Pro Rata Repurchase, including, if applicable, any shares validly tendered and not withdrawn or exchanged shares.

OS<sub>1</sub>= the number of shares of Common Stock outstanding at the Effective Date of such Pro Rata Repurchase, including, if applicable, any shares validly tendered or exchanged and not withdrawn, <u>minus</u> the number of shares purchased in such Pro Rata Repurchase (which shares shall equal the Purchased Shares (as defined below) if such Pro Rata Repurchase is effected pursuant to a tender offer or exchange offer).

AC = the aggregate cash and fair market value of the other consideration payable in such Pro Rata Repurchase, and in the case of non-cash consideration, as determined by a nationally recognized independent investment banking firm that has for this purpose (x) been selected by the Board of Directors, and (y) been consented to by Holders by Majority Vote, based, in the case of a tender offer or exchange offer, on the number of shares actually accepted for purchase (the "<u>Purchased Shares</u>").

In the event that the Conversion Price is adjusted in connection with any Pro Rata Repurchase described in this <u>Section 9(a)(iv)</u> and such Pro Rata Repurchase is not, for any reason, consummated, the Conversion Price shall be readjusted, effective as of the date the Board of Directors determines such Pro Rata Repurchase, to such Conversion Price that would exist had such adjustment not been made.

In the event that the Corporation, or one of its Affiliates, is obligated to purchase shares of Common Stock pursuant to any such Pro Rata Repurchase, but the Corporation, or such Affiliate, is permanently prevented by applicable Law from effecting any such purchases, or all such purchases are rescinded, then the Conversion Price shall be readjusted to be such Conversion Price that would then be in effect if such Pro Rata Repurchase had not been made.

&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;(v) <u>Rights Plans</u>. To the extent that the Corporation has a rights plan in effect with respect to the Common Stock on any Conversion Date, upon conversion of any shares of the Preferred Stock into Common Stock, the Holders will receive, in addition to the shares of Common Stock, the rights under the rights plan, unless, prior to such Conversion Date, the rights have separated from the shares of Common Stock, in which case (and only in such case) the Conversion Price will be adjusted at the time of separation as if the Corporation had issued the rights to all holders of the Common Stock in an issuance triggering an adjustment pursuant to <u>Section 9(a)(iii)</u>, subject to readjustment in the event of the expiration, termination or redemption of such rights.

&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) <u>Other Adjustments</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Corporation may make decreases in the Conversion Price, in addition to any other decreases required by this <u>Section 9</u>, if the Board of Directors deems it advisable to avoid or diminish any income tax to holders of the Common Stock resulting from any dividend or distribution of shares of Common Stock (or issuance of Options for Common Stock) or from any event treated as such for income tax purposes.

&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;(ii) If the Corporation takes any action affecting the Common Stock, other than an action described in <u>Section 9(a)</u>, which upon a determination by the Board of Directors, in its good faith discretion (such determination intended to be a "fact" for purposes of Section 151(a) of the DGCL), would materially adversely affect the conversion rights of the Holders of shares of Preferred Stock, the Conversion Price shall be adjusted, to the extent permitted by Law, in such manner, if any, and at such time, as the Board of Directors determines in good faith to be equitable in the circumstances.

&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) <u>Successive Adjustments</u>. Successive adjustments in the Conversion Price shall be made, without duplication, whenever any event specified in <u>Section 9(a)</u> or <u>Section 9(b)</u> shall occur.

&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) <u>Rounding of Calculations; Minimum Adjustments</u>. All adjustments to the Conversion Price shall be calculated to the nearest one-tenth (1/10th) of a cent. No adjustment in the Conversion Price shall be required if such adjustment would be less than $0.01; <u>provided</u>, that any adjustments which by reason of this <u>Section 9(d)</u> are not required to be made shall be carried forward and taken into account in any subsequent adjustment; <u>provided</u>, <u>further</u> that on any Conversion Date adjustments to the Conversion Price will be made with respect to any such adjustment carried forward and which has not been taken into account before such 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;(e) <u>Statement Regarding Adjustments; Notices</u>. Whenever the Conversion Price is to be adjusted in accordance with one or more of <u>Section 9(a)</u> or <u>Section 9(b)</u>, the Corporation shall: (<u>i</u>) compute the Conversion Price in accordance with <u>Section 9(a)</u> or <u>Section 9(b)</u>, taking into account the one cent threshold set forth in <u>Section 9(d)</u>; (<u>ii</u>) (<u>x</u>) in the event that the Corporation shall give notice or make a public announcement to the holders of Common Stock of any action of the type described in <u>Section 9(a)</u> (but only if the action of the type described in <u>Section 9(a)</u> would result in an adjustment to the Conversion Price or a change in the type of securities or property to be delivered upon conversion of the Preferred Stock), the Corporation shall, at the time of such notice or announcement, and in the case of any action which would require the fixing of a record date, at least ten (10) days prior to such record date, give notice to each Holder by mail, first class postage prepaid, at the address appearing in the Register, which notice shall specify the record date, if any, with respect to any such action, the approximate date on which such action is to take place and the facts with respect to such action as shall be reasonably necessary to indicate the effect on the Conversion Price and the number, kind or class of shares or other securities or property which shall be deliverable upon conversion or redemption of the Preferred Stock or (<u>y</u>) in the event that the Corporation does not give notice or make a public announcement as set forth in subclause (x) of this clause (ii), the Corporation shall, as soon as practicable following the occurrence of an event that requires an adjustment to the Conversion Price pursuant to one or more of <u>Section 9(a)</u> or <u>Section 9(b)</u>, taking into account the one cent threshold set forth in <u>Section 9(d)</u> (or if the Corporation is not aware of such occurrence, as soon as practicable after becoming so aware), provide, or cause to be provided, a written notice to the Holders of the occurrence of such event, in the same manner and with the same detail as the notice set forth in subclause (x) of this clause (ii); and (<u>iii</u>) whenever the Conversion Price shall be adjusted pursuant to one or more of <u>Section 9(a)</u> or <u>Section 9(b)</u>, the Corporation shall, as soon as practicable following the determination of the revised Conversion Price, (<u>x</u>) file at the principal office of the Corporation, a statement showing in reasonable detail the facts requiring such adjustment, the Conversion Price that shall be in effect after such adjustment and the method by which the adjustment to the Conversion Price was determined and (<u>y</u>) cause a copy of such statement to be sent in the manner set forth in subclause (x) of clause (ii) to each Holder.

&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) <u>Certain Adjustment Rules</u>. If an adjustment in the Conversion Price made hereunder would reduce the Conversion Price to an amount below par value of the Common Stock, then such adjustment in Conversion Price made hereunder shall reduce the Conversion Price to the par value of the Common Stock. As a condition precedent to the taking of any action which would require an adjustment pursuant to this <u>Section 9</u>, the Corporation shall use its reasonable best efforts to take any and all actions which may be necessary, including obtaining regulatory, NYSE (or such exchange or automated quotation system on which the Common Stock is then listed) or stockholder approvals or exemptions, in order that the Corporation may thereafter validly and legally issue as fully paid and nonassessable all shares of Common Stock issuable upon conversion of the Preferred Stock in compliance with the applicable listing standards of NYSE (or such exchange or automated quotation system on which the Common Stock is then listed).

 

*Section 10. Redemption*.

&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) <u>Optional Redemption</u>. Subject to and in accordance with the provisions of this <u>Section 10</u> (including, for the avoidance of doubt, the final further proviso to this <u>Section 10(a)</u>) the Corporation shall have the right, at its option, at any time following June 14, 2027, to redeem (i) all or (ii) any portion of the shares of Preferred Stock then outstanding at a redemption price per share in cash (the "<u>Optional Redemption Price</u>") equal to two times (2x) the sum of (<u>A</u>) the Accumulated Amount and (<u>B</u>) the Interim Accrued Dividends of each such share of Preferred Stock as of the date of such redemption; <u>provided</u>, that any Interim Accrued Dividends that have accrued since the most recent Preferred Dividend Payment Date shall instead be calculated at one times (1x) (not 2X) the amount of such current period Interim Accrued Dividends; <u>provided</u>, <u>further</u>, that any redemption under this <u>Section 10</u> for less than all of the shares of Preferred Stock then outstanding must redeem sufficient shares of Preferred Stock such that the redemption will be treated as a payment in exchange for stock pursuant to Section 302(b) of the Code for United States federal income tax purposes (for the avoidance of doubt, taking into account any equity interests held in the Corporation by the Investor) and must not result in the Investor's Beneficial Ownership of the Common Stock (on an as-converted to Common Stock basis) falling below three percent (3%) of the Common Stock then outstanding as of the Redemption Date (on an as-converted to Common Stock basis); <u>provided</u>, <u>further</u>, that the Corporation shall not be entitled to exercise its option to redeem pursuant to this <u>Section 10(a)</u> unless (x) as of the Optional Redemption Date all of the Common Stock Liquidity Conditions are satisfied and (y) the Lock-Up Period (as defined in the Shareholders Agreement) has terminated (or deemed to have terminated in respect of a portion of the Preferred Stock in accordance with the terms set forth in the Shareholders Agreement) or expired in accordance with the terms set forth in the Shareholders Agreement. The Corporation may exercise its right to require redemption under this <u>Section 10</u> by sending a written notice to each Holder of Preferred Stock (the "<u>Optional Redemption Notice</u>") specifying (x) the date on which the redemption shall occur (the "<u>Optional Redemption Date</u>"), which shall be a Business Day that is no earlier than 10 days and no later than 60 days from the date the Redemption Notice is sent and (y) the aggregate number of shares of Preferred Stock which are being redeemed pursuant to such redemption and the aggregate and per-share purchase price therefor. If fewer than all of the shares of Preferred Stock then outstanding are to be redeemed pursuant to this <u>Section 10(a)</u>, then such redemption shall occur on a *pro rata* basis with respect to all Holders of Preferred Stock based on the total number of shares of Preferred Stock then held by such Holder relative to the total number of shares of Preferred Stock then outstanding.

&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) <u>Redemption in Connection with a Change of Control</u>. In the event of a Change of Control, the Corporation (or its successor in the Change of Control, or an Affiliate thereof) shall have the option, exercisable during the period beginning on the effective date of the Change of Control (the "<u>Change of Control Effective Date</u>") and ending on the date that is 20 Business Days after the Change of Control Effective Date, to purchase all (but not less than all) of the shares of Preferred Stock then outstanding at a purchase price per share, payable in cash (the "<u>COC Redemption Price</u>" and together with the Optional Redemption Price, each (as applicable) the "<u>Redemption Price</u>"), equal to one hundred fifty percent (150%) of the sum of (<u>A</u>) the Accumulated Amount and (<u>B</u>) the Interim Accrued Dividends of each such share of Preferred Stock as of the date of such purchase (a "<u>Change of Control Redemption</u>"); <u>provided</u>, that any Interim Accrued Dividends that have accrued since the most recent Preferred Dividend Payment Date shall instead be calculated at 100% (not 150%) of the amount of such current period Interim Accrued Dividends. In order to exercise the Change of Control Redemption, the Corporation shall deliver written notice (a "<u>COC Redemption Notice</u>" and together with an Optional Redemption Notice, a "<u>Redemption Notice</u>") to the Holders specifying that the Change of Control Redemption is being exercised, the number of shares of Preferred Stock to be acquired in connection therewith, the aggregate and per share purchase price therefor and the date which such redemption shall occur (the "<u>COC Redemption Date</u>" and together with the Optional Redemption Date, each (as applicable) a "<u>Redemption Date</u>") on the Change of Control Effective Date; <u>provided</u>, <u>further</u>, that, as a condition to the Corporation's exercise of its redemption option pursuant to this <u>Section 10(b)</u>, the Corporation must provide written notice of the Change of Control to each Holder within 10 days following the execution of the definitive agreements with respect to such Change of Control.

&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) <u>Effectiveness of Redemption</u>. Redemption pursuant to <u>Section 10(a)</u> or <u>Section 10(b)</u> shall become effective on the applicable Redemption Date and the aggregate Redemption Price for such redeemed shares shall be due and payable in cash to the record Holder of the shares of Preferred Stock being redeemed on such date. From and after the applicable Redemption Date, dividends and distributions will cease to accrue on such redeemed shares of Preferred Stock, such redeemed shares of Preferred Stock shall no longer be deemed outstanding and all rights of the Holders with respect to such redeemed shares of Preferred Stock will terminate, except the right to receive the aggregate Redemption Price for such redeemed shares of Preferred Stock held by each such Holder.

&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) <u>Information</u>. During the period between the delivery of the Optional Redemption Notice and the Optional Redemption Date, if requested by any Holder, the Corporation shall provide reasonable access to the books and records of the Corporation, and provide a reasonable opportunity for such Holder to meet with the executive officers of the Corporation for the purpose of assisting such Holder in evaluating whether to convert the Preferred Stock into Common Stock in lieu of the redemption of such Preferred Stock; provided that in no event shall the Corporation be required to provide any information that would cause such information to no longer be subject to the attorney-client privilege (or a similar privilege) or where disclosure is prohibited by Law, but if any such disclosure is so limited, the Corporation shall cooperate with such Holder to determine a reasonable manner to allow for prompt disclosure of such information to such Holder.

&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) <u>Contingencies</u>. Any Redemption Notice or Conversion Notice may be delivered subject to contingencies set forth therein (which may include, for the avoidance of doubt, the actual consummation of a Change of Control) and may be revoked if any such contingencies are not satisfied or as otherwise set forth therein.

&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) <u>Partial Redemption</u>. If a portion, but less than all, of the shares of Preferred Stock held by any Holder are purchased in accordance with this <u>Section 10</u> on any particular Redemption Date, the Corporation shall promptly thereafter reflect in the Register the remaining shares of Preferred Stock held by such Holder. Such shares of Preferred Stock shall remain subject to the terms of this Certificate, including with respect to the Corporation's right to redeem such shares (including in connection with a subsequent Change of Control). The election of the Corporation not to redeem the Preferred Stock at any time or in connection with any Change of Control shall not limit the Corporations right to exercise a future redemption in accordance with the terms of this Certificate.

&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) <u>Conversion</u>. Notwithstanding anything to the contrary in this <u>Section 10</u>, each Holder of shares of Preferred Stock to be redeemed by the Corporation may elect to convert all or any portion of the shares of Preferred Stock held by such Holder into Common Stock in accordance with the provisions of <u>Section 6</u> (taking into account any contingencies contemplated by <u>Section 10(e)</u>) at any time prior to the Redemption Date, which election, for the avoidance of doubt, may be made subject to the same or similar contingencies to which any such redemption by the Corporation is made subject. Without limiting the generality of the foregoing, in the event that any such conversion is being effected in connection with, or as part of a Change of Control or any redemption by the Corporation in accordance with this <u>Section 10</u> is otherwise made conditional on another event or happening (or the absence of any event or happening), any Holder may condition such conversion on the effectiveness of such Change of Control (or such earlier time as the consideration payable to holders of Common Stock in respect of such Change of Control is determined) or such other event or happening (or the absence of such event or happening), in which case such conversion shall be deemed effective as of immediately prior to any such redemption of such shares.

 

*Section 11. Voting Rights*.

&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) <u>General</u>. The Holders of shares of Preferred Stock shall be entitled to vote with the holders of the Common Stock on all matters submitted to a vote of stockholders of the Corporation, except as otherwise provided herein or as required by applicable Law, voting together with the holders of Common Stock as a single class. For such purposes, each Holder shall be entitled to a number of votes in respect of the shares of Preferred Stock owned of record by it equal to the number of shares of Common Stock into which such shares of Preferred Stock could be converted as of the record date for the determination of stockholders entitled to vote on such matters or, if no such record date is established, as of the date such vote is taken or any written consent of stockholders is solicited. The Holders of shares of Preferred Stock shall be entitled to notice of any stockholders' meeting in accordance with the Certificate of Incorporation and the By-laws as if they were holders of record of Common Stock for such meeting.

&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) <u>Class Voting Rights</u>. So long as any shares of Preferred Stock are outstanding, in addition to any other vote required by applicable Law, the Corporation may not take any of the following actions (including by means of merger, consolidation, division, reorganization, recapitalization or otherwise) without the prior approval of the Holders by Majority Vote (it being understood that this Section 11(b) shall not limit the ability of the Corporation to undertake a redemption or conversion of the Preferred Stock as provided for in this Certificate or to consummate a Change of Control or Reorganization Event that complies with the terms of this Certificate (including, without limitation, the provisions of this Section 11(b)):

&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;(i) amend, alter, repeal or otherwise modify any provision of the Certificate of Incorporation, this Certificate or the By-laws in a manner that would alter or change the terms or the powers, preferences, rights or privileges of the Preferred Stock as to affect them adversely;

&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;(ii) authorize, create, increase the authorized amount of, or issue any class or series of Senior Securities or Parity Securities, including any debt securities convertible by their terms into shares Senior Securities or Parity Securities;

&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;(iii) redeem, repurchase or pay dividends on Junior Securities except as permitted in accordance with Section 4(c) of this Certificate;

&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;(iv) increase or decrease the authorized number of shares of Preferred Stock (except for the cancellation and retirement of shares set forth in <u>Section 14(c)</u>) or issue additional shares of Preferred Stock;

&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;(v) (<u>1</u>) amend, restate, supplement, modify or replace the Debt Financing Documents to include limitations on the ability of the Corporation to accrue Preferred Dividends as Compounded Dividends in accordance with <u>Section 4(a)</u> that are more restrictive in any material respect than those set forth in the Debt Financing Documents in effect as of the Original Issuance Date or (<u>2</u>) enter into any agreements or arrangements relating to indebtedness (<u>a</u>) containing provisions relating to the ability of the Corporation or its Subsidiaries to accrue Preferred Dividends as Compounded Dividends in accordance with <u>Section 4(a)</u> that are more restrictive in any material respect than those set forth in the Debt Financing Documents as of the Original Issuance Date (or subsequently amend, restate, supplement or otherwise modify any such agreements to include limitations on the ability of the Corporation to accrue Preferred Dividends as Compounded Dividends in accordance with <u>Section 4(a)</u> that are more restrictive in any material respect than those set forth in the Debt Financing Documents as of the Original Issuance Date); or

&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;(vi) adopt any plan of Liquidation or file any voluntary petition for bankruptcy, receivership or any similar proceeding.

&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) The consent or votes required in <u>Section 11(b)</u> shall be in addition to any approval of stockholders of the Corporation which may be required by Law or pursuant to any provision of the Certificate of Incorporation or the By-laws. Each Holder of shares of Preferred Stock will have one vote per share on any matter on which Holders of shares of Preferred Stock are entitled to vote separately as a class, whether at a meeting or by written consent.

 

*Section 12. Board Designation and Other Rights*.

&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) From and after the Original Issuance Date, and for as long as the Preferred Stock and Common Stock that is owned by the CD&R Shareholder Parties represents (<u>i</u>) at least ten percent (10%) of the outstanding shares of Common Stock, determined on an As-Converted Common Stock basis, the CD&R Shareholder shall be entitled to designate two (2) persons, who shall be Partners, Managing Directors, Advisors or Principals of the CD&R Shareholder, CD&R or any CD&R Affiliate and reasonably acceptable to the Corporation at the time of such designation, to serve on the Board of Directors (such individuals who are so reasonably acceptable to the Corporation, the "<u>CD&R Designees</u>" and each a "<u>CD&R Designee</u>"), it being understood and agreed that, without the prior written consent of the Corporation, a CD&R Designee shall not be an individual that is (or will) be concurrently a member of the Board of Directors and the board of directors of Resideo Technologies, Inc., and (<u>ii</u>) at least five percent (5%) (but less than the 10% contemplated in the foregoing clause (i)) of the outstanding shares of Common Stock, determined on an As-Converted Common Stock basis, the CD&R Shareholder shall be entitled to designate one (1) CD&R Designee; provided, that, for purposes of calculating the percentage As-Converted Common Stock ownership for this <u>Section 12</u>, any Exempted Securities issued pursuant to clauses (1), (2) and (5) of the definition thereof shall be excluded and deemed not outstanding. At such time that the CD&R Shareholder is no longer entitled to designate one or both CD&R Designees pursuant to the previous sentence, the CD&R Shareholder shall promptly cause one or both CD&R Designees, as applicable, to offer to resign from the Board of Directors. The CD&R Designees shall initially be Nathan Sleeper and William Galvin, each of whom has been determined to be reasonably acceptable to the Corporation. A person that is a CD&R Designee shall remain and be regarded as a CD&R Designee for purposes of this Certificate for the remainder of such person's term on the Board of Directors or, if earlier, death or resignation. The Corporation's obligations to have any CD&R Designee appointed to the Board of Directors or nominate any CD&R Designee for election as a director at any meeting of the Corporation's stockholders pursuant to this <u>Section 12</u>, as applicable, shall in each case be subject to such CD&R Designee's satisfaction of all requirements regarding service as a director of the Corporation under applicable Law, stock exchange rules regarding service as a director of the Corporation, and the Corporation's corporate governance or other guidelines and director onboarding and membership requirements, in each case, that are generally applicable to all directors. The CD&R Shareholder Parties will cause each CD&R Designee to make himself or herself reasonably available for interviews and to consent to such reference and background checks or other investigations and provide such information as the Board of Directors may reasonably request to determine the CD&R Designee's eligibility and qualification to serve as a director of the Board of Directors and otherwise comply with the corporate governance or other guidelines and director onboarding and membership requirements of the Corporation that are generally applicable to all directors 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;(b) From and after the Original Issuance Date, subject to <u>Section 12(a)</u> of this Certificate, the Corporation shall take such actions as are reasonably necessary to cause the CD&R Designees to be nominated as members of the Board of Directors and shall, subject to applicable Law and the exercise of the fiduciary duties of the Board of Directors, include in any proxy statement prepared, used, delivered or publicly filed by the Corporation to solicit the vote of its stockholders in connection with any meeting of stockholders of the Corporation the recommendation of the Board of Directors that stockholders of the Corporation vote in favor of the CD&R Designees and solicit votes in favor of the election of the CD&R Designees to the Board of Directors consistent with the Corporation's efforts to solicit votes in favor of the election of the Corporation's other nominees to the Board of Directors.

&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) For so long as a CD&R Designee is serving on the Board of Directors, (i) the Corporation shall not implement or maintain any trading policy, equity ownership guidelines (including with respect to the use of Rule 10b5-1 plans and preclearance or notification to the Corporation of any trades in the Corporation's securities) or similar guideline or policy with respect to the trading of securities of the Corporation that applies to any CD&R Shareholder Party (including a policy that limits, prohibits or restricts any CD&R Shareholder Party from entering into any hedging or derivative arrangements), in each case other than with respect to any CD&R Person or CD&R Designee solely in his or her individual capacity, except as provided herein, (ii) any share ownership requirement for any CD&R Designee serving on the Board of Directors will be deemed satisfied by the securities owned by any CD&R Shareholder Party and under no circumstances shall any of such policies, procedures, processes, codes, rules, standards and guidelines impose any restrictions on any CD&R Shareholder Party's transfers of securities pursuant to the Registration Rights Agreement or otherwise, subject to compliance with applicable securities Laws, (iii) under no circumstances shall any policy, procedure, code, rule, standard or guideline applicable to the Board of Directors be violated by any CD&R Designee receiving compensation from any CD&R Shareholder Party and (iv) no CD&R Designee shall be excluded or required to recuse himself or herself from any meetings or materials of the Board of Directors as a result of or in connection with his or her affiliation with the CD&R Group or the CD&R Group's ownership of any Preferred Stock or Common Stock except in connection with a transaction with, or dispute involving, the CD&R Shareholder or any other member of the CD&R Group, and, in each case of the foregoing clauses (i), (ii), (iii) and (iv), it is agreed that any such policies in effect from time to time that purport to impose terms inconsistent with this <u>Section 12</u> shall not apply to the extent inconsistent with this <u>Section 12</u> (but shall otherwise be applicable to the CD&R Designee).

&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) To the fullest extent permitted by the DGCL and subject to any express agreement that may from time to time be in effect, including the confidentiality provisions set forth in the Shareholders Agreement, to the extent in compliance with applicable Law, the Corporation agrees that any CD&R Designee, any member of the CD&R Group and any CD&R Affiliate or any portfolio company thereof (collectively, "<u>Covered Persons</u>") may, and none of the foregoing shall have any duty not to, (i) invest in, carry on and conduct, whether directly, or as a partner in any partnership, or as a joint venturer in any joint venture, or as an officer, director, stockholder, equityholder or investor in any person, or as a participant in any syndicate, pool, trust or association, any business of any kind, nature or description, whether or not such business is competitive with or in the same or similar lines of business as the Corporation or any of its Subsidiaries, (ii) do business with any client, customer, vendor or lessor of any of the Corporation or its Affiliates, and/or (iii) make investments in any kind of property in which the Corporation may make investments. To the fullest extent permitted by the DGCL, to the extent in compliance with applicable Law, the Corporation renounces any interest or expectancy to participate in any business or investments of any Covered Person as currently conducted or as may be conducted in the future, and waives any claim against a Covered Person. Except as set forth below, the Corporation agrees that in the event that a Covered Person acquires knowledge of a potential transaction or matter which may constitute a corporate opportunity for both (x) the Covered Person and (y) the Corporation or its Subsidiaries, the Covered Person shall not have any duty to offer or communicate information regarding such corporate opportunity to the Corporation or its Subsidiaries. To the fullest extent permitted by the DGCL, the Corporation hereby renounces any interest or expectancy in any potential transaction or matter of which the Covered Person acquires knowledge and waives any claim against each Covered Person that such Covered Person is liable to the Corporation or its stockholders for breach of any fiduciary duty solely by reason of the fact that such Covered Person (A) pursues or acquires any corporate opportunity for its own account or the account of any Affiliate or other person, (B) directs, recommends, sells, assigns or otherwise transfers such corporate opportunity to another person or (C) does not communicate information regarding such corporate opportunity to the Corporation, in each case, except for any corporate opportunity which is expressly offered to a Covered Person in his or her capacity as a member of the Board of Directors, it being understood that any such corporate opportunity shall belong to the Corporation.

&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) The provisions of this Section 12 shall survive the repurchase, redemption, conversion and cancellation of the Preferred Stock; provided that from and after the time that no shares of Preferred Stock are outstanding, this Section 12 may be amended, modified or waived with the prior written consent of CD&R. Each of the CD&R Shareholder, the CD&R Shareholder Parties, the CD&R Designees and the other Covered Persons are express third party beneficiaries of the applicable portions of this Section 12 referencing such Persons.

 

*Section 13. Transfers and Transfer Agent*. The Corporation shall appoint a transfer agent of recognized standing with respect to the Preferred Stock (which may be the same transfer agent with respect to the Common Stock) and may remove such transfer agent in accordance with the agreement between the Corporation and such transfer agent; <u>provided</u> that the Corporation shall appoint a successor transfer agent of recognized standing who shall accept such appointment prior to the effectiveness of such removal. Upon any such removal or appointment, the Corporation shall send notice to the Holders. When a Holder requests to register the transfer of shares of Preferred Stock, provided that such transfer is not in violation of the Transfer Restrictions, the Corporation or the Corporation's transfer agent, as applicable, shall register the transfer as requested if its reasonable requirements for such transaction are met. Any transfer made not in compliance with the forgoing shall be disregarded and deemed void.

 

*Section 14. Miscellaneous*.

&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) <u>Taxes</u>. The issuance or delivery of shares of Preferred Stock, shares of Common Stock or other securities issued on account of Preferred Stock pursuant hereto, or certificates representing such shares or securities, shall be made without charge to the Holder for such shares or certificates or for any tax in respect of the issuance or delivery of such certificates or the securities represented thereby, including any share transfer, documentary, stamp or similar tax; <u>provided</u>, <u>however</u>, that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance or delivery of shares of Preferred Stock, shares of Common Stock or other securities in a name other than that in which the shares of Preferred Stock with respect to which such shares or other securities were issued, delivered or registered, or in respect of any payment to any Person other than a payment to the applicable Holder thereof, and the transferee or payee, as the case may be, shall pay or bear the cost of any such tax, and the Corporation shall not be required to make any such issuance, delivery or payment unless and until the Person otherwise entitled to such issuance, delivery or payment has paid to the Corporation the amount of any such tax or has established, to the satisfaction of the Corporation, that such tax has been paid or is not payable. Without limiting Section 3.2(b) of the Shareholders Agreement, all payments and distributions (or deemed distributions) on the shares of Preferred Stock (and any share of Common Stock issued upon the conversion of any share of Preferred Stock) shall be subject to withholding and backup withholding of taxes to the extent required by applicable Law, subject to applicable exemptions, and amounts withheld, if any, shall be treated as received by the Holders.

&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) <u>Good Faith</u>. The Corporation shall not, by amendment of the Certificate of Incorporation or through reorganization, consolidation, merger, dissolution, sale of assets, or otherwise, take any action the primary purpose of which is to avoid the observance or performance of any of the terms of this Certificate.

&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) <u>Status of Shares</u>. Shares of Preferred Stock which have been converted, redeemed, repurchased or otherwise cancelled shall be retired and, following the filing of any certificate required by the DGCL, have the status of authorized and unissued shares of Preferred Stock, without designation as to series until such shares are once more, subject to and in accordance with the provisions of <u>Section 11</u>, designated as part of a particular series of Preferred Stock by the Board of Directors.

&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) <u>Notices</u>. All notices referred to herein shall be in writing, and, unless otherwise specified herein, all notices hereunder shall be deemed to have been given upon the earlier of receipt thereof or three Business Days after the mailing thereof if sent by registered or certified mail with postage prepaid, addressed: (<u>i</u>) if to the Corporation, to its office at 275 Broadhollow Rd, Suite 400, Melville, NY 11747, Attention: [General Counsel ([__]), with a copy (which may be delivered by email but in all cases shall not constitute notice) to Willkie Farr & Gallagher LLP, 787 Seventh Avenue, New York, NY 10019 attn: Russell Leaf, Esq. and Jared Fertman, Esq. (rleaf@willkie.com; jfertman@willkie.com), or (<u>ii</u>) if to any Holder, to such Holder at the address of such Holder as listed in the Register or (<u>iii</u>) to such other address as the Corporation or any such Holder, as the case may be, shall have designated by written notice similarly 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;(e) <u>Waiver and Modifications</u>. Subject to <u>Section 12(e)</u>, the powers (including voting powers), if any, of the Preferred Stock and the preferences and relative, participating, optional, special or other rights, if any, and the qualifications, limitations or restrictions, if any, of the Preferred Stock may be waived or modified as to all shares of Preferred Stock in any instance (without the necessity of calling, noticing or holding a meeting of stockholders) by the Holders acting by Majority Vote.

&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) <u>Severability</u>. If any right, preference or limitation of the Preferred Stock set forth in this Certificate (as amended from time to time) is invalid, unlawful or incapable of being enforced by reason of any rule of Law or public policy, all other rights, preferences and limitations set forth in this Certificate (as so amended) which can be given effect without the invalid, unlawful or unenforceable right, preference or limitation shall, nevertheless, remain in full force and effect, and no right, preference or limitation herein set forth shall be deemed dependent upon any other such right, preference or limitation unless so expressed herein.

&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) <u>Other Rights</u>. Except as expressly provided in any agreement between a Holder and the Corporation, the shares of Preferred Stock shall not have any voting powers, preferences or relative, participating, optional or other special rights, or qualifications, limitations or restrictions thereof, other than as set forth herein or in the Certificate of Incorporation or as provided by applicable Law.

&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) <u>Headings</u>. The headings of the various subdivisions hereof are for convenience of reference only and shall not affect the interpretation of any of the provisions hereof.

&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) <u>Facts Ascertainable</u>. When the terms of this Certificate refers to a specific agreement or other document to determine the meaning or operation of a provision hereof, the Corporation shall maintain a copy of such agreement or document at the principal executive offices of the Corporation and a copy thereof shall be provided free of charge to any Holder who makes a written demand therefore.

&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) <u>Effectiveness</u>. This Certificate shall become effective upon the filing thereof with the Secretary of State of the State of Delaware.

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IN WITNESS WHEREOF, the Corporation has caused this Certificate to be duly executed and acknowledged by its undersigned duly authorized officer this _____ day of ____, 2026.

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| ADI GLOBAL DISTRIBUTION INC. |
| By: |
| Name: |
| Title: |

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## Exhibit 10.1

**Exhibit 10.1**

**TRANSITION SERVICES AGREEMENT**

This TRANSITION SERVICES AGREEMENT (this "<u>Agreement</u>"), dated as of [●], 2026, is entered into by and between Resideo Technologies, Inc., a Delaware corporation ("<u>Resideo</u>"), and ADI Global Distribution Inc., a Delaware corporation and a wholly owned subsidiary of Resideo ("<u>ADI SpinCo</u>"). "<u>Party</u>" or "<u>Parties</u>" means Resideo or ADI SpinCo, individually or collectively, as the case may be.

<u>W I T N E S S E T H</u>:

WHEREAS, the Board of Directors of Resideo (the "<u>Resideo Board</u>") has determined that it is appropriate, desirable and in the best interests of Resideo and its stockholders to create a new publicly traded company that shall operate the ADI Business;

WHEREAS, in furtherance of the foregoing, the Resideo Board has determined that it is appropriate, desirable and in the best interests of Resideo and its stockholders to separate the ADI Business from the Resideo Retained Business (the "<u>Separation</u>") and, following the Separation, make a distribution, in accordance with the Distribution Ratio, to Record Date Holders, of all of the issued and outstanding shares of ADI SpinCo Common Stock owned by Resideo (the "<u>Distribution</u>");

WHEREAS, in order to effectuate the Separation and the Distribution, the Parties have entered into that certain Separation and Distribution Agreement, dated as of the date hereof (together with the schedules, exhibits and appendices thereto, the "<u>Separation Agreement</u>");

WHEREAS, pursuant to the Separation Agreement, in order to facilitate and provide for an orderly transition in connection with the Separation and the Distribution, certain services are to continue to be provided by the Resideo Group to the ADI Group and by the ADI Group to the Resideo Group after the Distribution Date upon the terms and conditions set forth in this Agreement; and

WHEREAS, the Parties acknowledge that this Agreement, the Separation and Distribution Agreement, and the other Ancillary Agreements represent the integrated agreement of Resideo and ADI SpinCo relating to the Separation and the Distribution, are being entered into together, and would not have been entered into independently.

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements, provisions and covenants contained in this Agreement, the Parties hereby agree as follows:

**Article I<u><br>DEFINITIONS</u>**

Section 1.01 <u>Certain Defined Terms</u>.

Article I. Unless otherwise defined herein, all capitalized terms used herein shall have the same meanings as 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;(a) The following capitalized terms used in this Agreement shall have the meanings set forth below:

"<u>ADI Provider</u>" means ADI SpinCo or a Provider that is a member of the ADI Group.

"<u>Force Majeure</u>" means, with respect to a Party, an event beyond the reasonable control of such Party (or any Person acting on its behalf), which event (a) does not arise or result from the fault or negligence of such Party (or any Person acting on its behalf), and (b) by its nature would not reasonably have been foreseen by such Party (or such Person), or, if it would reasonably have been foreseen, was unavoidable, including acts of God, acts of civil or military authority, embargoes, epidemics, pandemics, war, riots, insurrections, fires, explosions, earthquakes, floods, unusually severe weather conditions, unavailability of parts, or, in the case of computer systems, any significant and prolonged failure in electrical or air conditioning equipment. Notwithstanding the foregoing, the receipt by a Party of an unsolicited takeover offer or other acquisition proposal, even if unforeseen or unavoidable, and such Party's response thereto shall not be deemed an event of Force Majeure.

"<u>Prime Rate</u>" means the rate last quoted as of the time of determination by The Wall Street Journal as the "Prime Rate" in the United States or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the "bank prime loan" rate as of such time, or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by Resideo) or any similar release by the Federal Reserve Board (as determined by Resideo).

"<u>Provider</u>" means the Party or its Affiliates providing a Service under this Agreement.

"<u>Recipient</u>" means the Party to whom a Service is being provided under this Agreement.

"<u>Resideo Provider</u>" means Resideo or a Provider that is a member of the Resideo Group.

"<u>Virus(es)</u>" means any computer instructions (i) that have a material adverse effect on the operation, security or integrity of a computing telecommunications or other digital operating or processing system or environment, including other programs, data, databases, computer libraries and computer and communications equipment, by altering, destroying, disrupting or inhibiting such operation, security or integrity; (ii) that without functional purpose, self-replicate without manual intervention; or (iii) that purport to perform a useful function but which actually either perform a destructive or harmful function, or perform no useful function and utilize substantial computer, telecommunications or memory resources.

**Article II<u><br>SERVICES AND DURATION</u>**

Section 2.01 <u>Services</u>. Subject to the terms and conditions of this Agreement, Resideo shall provide (or cause to be provided) to the ADI Group all of the services listed in <u>Schedule 2.01-1</u> attached hereto (as such Schedule may be amended pursuant to <u>Section 2.03</u>, the "<u>Resideo Provided Services</u>"). Subject to the terms and conditions of this Agreement, ADI SpinCo shall provide (or cause to be provided) to the Resideo Group all of the services listed in <u>Schedule 2.01-2</u> attached hereto (as such Schedule may be amended pursuant to <u>Section 2.03</u>, the "<u>ADI Provided Services</u>", and collectively with the Resideo Provided Services and any Additional Services, the "<u>Services</u>").

Section 2.02 <u>Duration 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) <u>Term</u>. Subject to <u>Section 6.01</u> hereof, each of Resideo and ADI SpinCo shall provide or cause to be provided to the respective Recipients each Service until the expiration of the period set forth next to such Service on the applicable Schedule hereto or, if no such period is provided with respect to a particular Service on such Schedule, on the second (2nd) anniversary of the Distribution Date (the "<u>Term</u>"); <u>provided</u>, <u>however</u>, to the extent that a Resideo Provider's ability to provide a Resideo Provided Service is dependent on the continuation of a ADI Provided Service, Resideo's obligation to provide, or cause to be provided, such Resideo Provided Service shall terminate automatically with the termination of such supporting ADI Provided Service; <u>provided</u>, <u>further</u>, to the extent that an ADI Provider's ability to provide an ADI Provided Service is dependent on the continuation of a Resideo Provided Service, ADI SpinCo's obligation to provide, or cause to be provided, such ADI Provided Service shall terminate automatically with the termination of such supporting Resideo Provided 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;(b) <u>Extensions</u>. Unless otherwise set forth in the applicable Services Schedule, each Party in its capacity as a Recipient shall be entitled to request up to two (2) extensions of the Term for any Service for no longer than three (3) months' each by providing the other Party with no less than thirty (30) days' written notice. Such other Party shall consider each such extension request in good faith and respond to such notice within ten (10) days of its receipt of same. Such other Party may accept or deny each extension request in its sole discretion. The extension of any Service shall include an extension of each other Service on which such extended Service is dependent.

Section 2.03 <u>Additional Services</u>. If, within nine (9) months after the Distribution Date, Resideo or ADI SpinCo (or the Resideo Transition Manager or ADI Transition Manager, as applicable) identifies a service that (a) the Resideo Group provided to the ADI Group during the one (1)-year period prior to the Distribution Date that the ADI Group reasonably needs in order for the ADI Business to continue to operate in substantially the same manner in which the ADI Business operated prior to the Distribution Date, and such service was not included in <u>Schedule 2.01-1</u> (other than because the Parties agreed such services shall not be provided), or (b) the ADI Group provided to the Resideo Group prior to the Distribution Date that the Resideo Group reasonably needs in order for the Resideo Group to continue to operate their businesses other than the ADI Business (the "<u>Resideo Business</u>") in substantially the same manner in which such businesses operated prior to the Distribution Date, and such service was not included in <u>Schedule 2.01-2</u> (other than because the Parties agreed such services shall not be provided), and in each case (i) such service is not an Excluded Service and (ii) the proposed Recipient of such service is unable to reasonably obtain such service from a Third Party, then, in each case, ADI SpinCo and Resideo shall use commercially reasonable efforts to agree on terms, including fees, pursuant which such requested services shall be provided or caused to be provided (such additional services, the "<u>Additional Services</u>"). Unless specifically agreed in writing to the contrary, the Parties shall amend the appropriate Schedule in writing to include such Additional Services (including the termination date with respect to such services, which, for clarity, shall be no later than the end of the Term) and such Additional Services shall be deemed Services, hereunder, and accordingly, the Party requested to provide such Additional Services shall provide such Additional Services, or cause such Additional Services to be provided, in accordance with the terms and conditions of this Agreement.

Section 2.04 <u>Exception to Obligation to Provide Services; Excluded 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) Notwithstanding anything in this Agreement to the contrary, including Resideo's and ADI SpinCo's obligations set forth in <u>Section 2.01</u> hereof, the relevant Providers shall not be obligated to (and neither Resideo nor ADI SpinCo shall be obligated to cause any Provider to) provide any Services if the provision of such Services would violate any Law or any Contract to which Resideo, ADI SpinCo, any of Resideo's or ADI SpinCo's Affiliates or any of the Providers are subject; <u>provided</u>, <u>however</u>, that Resideo and ADI SpinCo shall comply with <u>Section 7.02</u> in obtaining any Consents necessary to provide such 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) Notwithstanding anything to the contrary set forth herein, the Services shall in no event include those services set forth on <u>Schedule 2.04(b)</u> (the "<u>Excluded Services</u>").

Section 2.05 <u>Standard of the Provision of Services</u>. The provision of Services shall be provided in the manner and at a level substantially consistent with that provided by the Providers immediately preceding the Distribution Date. All of the Resideo Provided Services shall be for the sole use and benefit of ADI Group, and all of the ADI Provided Services shall be for the sole use and benefit of the Resideo Group.

Section 2.06 <u>Change in 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) <u>Recipient Changes</u>. Each Party in its capacity as a Recipient may request a change to the Services it is receiving (a "<u>Service Change</u>") by delivering a written notice describing such change to the other Party. Such request shall be in sufficient detail to explain the nature of the proposed change and the impact (if any) on the scope and delivery of the Services. Such other Party shall consider each such Service Change request in good faith and respond to such notice within ten (10) Business Days of its receipt of same. If such other Party agrees to implement such Service Change, the Parties shall negotiate an amendment to the applicable Service Schedule in good faith to add such Service Change, and such Service Change shall become effective as of the effective date of such amendment. If such other Party rejects such Service Change request or the Parties fail to agree on an amendment to the applicable Service Schedule to include such Service Change, such Service Change shall not be effective. The Parties acknowledge that any Service Change may result in the other Party in its capacity as a Provider being unable to continue the provision of another Service(s) (in whole or in part) that is dependent on the Service that is subject to the Service Change.

&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) <u>Provider Changes</u>. Each Party in its capacity as a Provider may from time-to-time reasonably supplement, modify, substitute or otherwise alter the Services it is providing on no less than thirty (30) days' notice to the other Party; provided that such supplementation, modification, substitution or other alteration does not materially adversely affect the quality or availability of the applicable Services or increase the cost of using such 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;(c) <u>Change Costs</u>. The costs of the applicable Provider relating to any Service Change shall be borne by (i) the applicable Recipient for requests made by such Recipient or (ii) the applicable Provider for requests made by such Provider. Any Service Change shall be subject to, if applicable, any necessary consents from third parties, which shall be sought in accordance with <u>Section 7.02</u>.

Section 2.07 <u>Subcontractors</u>. A Provider may subcontract any of the Services or portion thereof to any other Person, including any Affiliate of the Provider; <u>provided</u>, <u>however</u>, that such other Person shall be subject to service standards and confidentiality provisions at least equivalent to those set forth herein, and such Provider shall in all cases remain primarily responsible for all of its obligations hereunder with respect to the Services provided by such subcontractor.

Section 2.08 <u>Data Protection.</u> The provision of the Services, to the extent that they involve the transfer of Personal Information from one Party to another or the processing of Personal Information by one Party on behalf of the other, shall be governed by and subject to the terms of the Data Privacy Agreement.

Section 2.09 <u>Migration</u>. Each Party in its capacity as a Recipient shall be responsible for the migration from each Service it receives under this Agreement to the performance of such Service by such Party or by a third-party at its sole cost and expense. As part of such migration, the other Party agrees to use, and to cause its Affiliates to use, commercially reasonable efforts to cooperate with and assist such migrating Party in connection with such migration (such cooperation and assistance, the "<u>Migration Services</u>"). The migrating Party shall reimburse such other Party for any reasonable expenses incurred by such other Party in connection with providing Migration Services. The Parties shall take into account the need to minimize both the cost of such migration and the disruption to the ongoing business activities of each Party in connection with the activities contemplated under this <u>Section 2.09</u>.

Section 2.10 <u>Electronic 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) To the extent that the performance or receipt of Services hereunder requires access to a Group's intranet or other internal systems by the other Group (the "<u>Accessing Group</u>"), the Party whose Group intranet or other internal systems is being accessed shall provide or cause to be provided limited access to such systems, subject to policies, procedures and limitations to be determined by such Party. From and after the Distribution Date, a Party shall cause its Accessing Group to comply with all security guidelines (including physical security, network access, internet security, confidentiality and personal data security guidelines) of the other Party, copies of which shall be made available to the Accessing Group upon reasonable request.

&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) While Services are being provided hereunder, the Parties shall take commercially reasonable measures to ensure that no Virus or similar items are coded or introduced into the Services. With respect to Services provided by third parties, compliance with the applicable agreement with such third party shall be deemed sufficient commercially reasonable measures. If a Virus is found to have been introduced into such Services, the Parties shall use commercially reasonable efforts to cooperate and to diligently work together and with each Provider providing the Services to eliminate the effects of the Virus.

&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) The Parties shall, and shall cause their respective Providers to, exercise reasonable care in providing, accessing and using the Services to prevent access to the Services by unauthorized Persons.

**Article III<u><br>COSTS AND DISBURSEMENTS</u>**

Section 3.01 <u>Costs and Disbursements</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) Each Party (or its designee) shall pay to the other Party providing, or causing to be provided, the applicable Service a monthly fee for providing such Service as set forth therefor in the applicable Schedule hereto (each aggregate fee calculated in accordance with this provision constituting a "<u>Service Charge</u>" and, collectively, the "<u>Service Charges</u>"); <u>provided</u>, <u>however</u>, that a fee for a Service not provided or made available hereunder for a full month shall be pro-rated for the portion of such month provided or made available. During the Term, the amount of a Service Charge for any Services shall not increase, except to the extent that there is an increase after the Distribution Date in the costs actually incurred by the Provider in providing such Services, including as a result of (i) an increase in the amount of such Services being provided to the Recipient (as compared to the amount of the Services underlying the determination of a Service Charge), (ii) an increase in the rates or charges imposed by any third-party provider that is providing goods or services used by the Provider in providing the Services (as compared to the rates or charges underlying a Service Charge), (iii) an increase in the payroll or benefits for any personnel used by the Provider in providing the Services, or (iv) any increase in costs relating to any changes requested by the Recipient in the nature of the Services provided (including relating to newly installed products or equipment or any upgrades to existing products or equipment).

&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) As of or prior to the Distribution Date, the Parties shall mutually agree on a form of invoice to be issued for the aggregate of Service Charges by each Party. Each of Resideo and ADI SpinCo (or any of their respective designees), as applicable, shall deliver invoices to the other Party (or its designees) in accordance with the terms hereof, beginning on or prior to the tenth (10th) day following the first fiscal month end following the Distribution Date and, thereafter, on or prior to the tenth (10th) day following the fiscal month end for each succeeding month or week (in accordance with the terms hereof) for the duration of this Agreement (or with such other frequency as is consistent with the basis on which the Service Charges are determined and, if applicable, charged to Affiliates of each Party) in arrears for the Service Charges due under this Agreement. Each of Resideo or ADI SpinCo (or any of their respective designees) shall pay, or cause to be paid, the amount of such invoice by wire transfer or check to the other Party (or its designees) within thirty (30) days of the date of such invoice; <u>provided</u> that (i) if a Party disputes any invoiced amount in good faith by written notice to the other Party within such thirty (30) day period, such Party may withhold payment of the disputed amount, which dispute the Parties shall use commercially reasonable efforts to expeditiously resolve in accordance with the dispute resolution procedures set forth in this Agreement, (ii) any Contracts that prescribe other payment terms for any other individual Service shall continue to govern, and (iii) to the extent consistent with past practice with respect to Services rendered outside the United States, payments may be required in local currency. If Resideo or ADI SpinCo (or any of their respective designees), as applicable, fails to pay such amount by such date, such Party shall be obligated to pay to the other Party providing, or causing to be provided, the Services, in addition to the amount due, interest on such amount at a rate per annum equal to the Prime Rate, from time to time in effect, calculated for the actual number of days elapsed, accrued from the date on which such payment was due up to the date of the actual receipt of payment.

Section 3.02 <u>Taxes</u>. Except as expressly noted in the applicable Schedule hereto, the fees set forth on the applicable Schedule hereto with respect to each Service do not include any sales, use, value added, excise, goods and services or similar taxes, charges, fees, levies or imposts (collectively, and together with any interest, penalties or additions to tax imposed with respect thereto, "<u>Service Taxes</u>"). In addition to the amounts required to be paid as set forth on the applicable Schedule hereto or otherwise pursuant to this Agreement, the applicable Recipient (or its designee) (the "<u>Applicable Payor</u>") shall pay and be responsible for and shall promptly reimburse the applicable Provider (or its designee) (the "<u>Applicable Payee</u>") for any Service Taxes imposed on or with respect to such amounts (including by way of withholding or deductions) or the provision of Services to the Recipient hereunder, which reimbursement shall be in addition to such amounts and any other amounts required to be paid pursuant to this Agreement. Any and all payments hereunder shall be made free and clear of, and without deduction or withholding for or on account of, any Taxes; provided, that if the Applicable Payor is required by applicable Law to deduct or withhold any Taxes from such payments, then (a) the Applicable Payor shall make such deductions or withholdings as are required by applicable Law, (b) the Applicable Payor shall timely pay the full amount deducted or withheld to the relevant Governmental Entity and (c) to the extent withholding or deduction is required to be made on account of Taxes, the amount payable by the Applicable Payor to the Applicable Payee shall be increased as necessary so that after all required deductions and withholdings have been made (including deductions or withholdings applicable to additional sums payable hereunder) the Applicable Payee shall receive an amount equal to the sum it would have received had no such deductions or withholdings been made. At the Applicable Payee's request, the Applicable Payor shall provide the Applicable Payee with reasonably satisfactory documentation evidencing payment to the applicable Governmental Entity of any amounts so withheld or deducted. Each of the Parties shall provide to the other, prior to the commencement of any Services hereunder, a properly completed and duly executed copy of IRS Form W-9.

Section 3.03 <u>Right of Set-Off</u>. Each of Resideo or ADI SpinCo, as applicable, shall pay the full amount of Service Charges and shall not set-off, counterclaim or otherwise withhold any amount owed to the other Party under this Agreement, on account of any obligation owed by the other Party to Resideo or ADI SpinCo, as applicable, under this Agreement, the Separation Agreement or any other Ancillary Agreement that has not been finally adjudicated, settled or otherwise agreed upon by the Parties in writing; <u>provided</u>, <u>however</u>, that Resideo or ADI SpinCo, as applicable, shall be permitted to assert a set-off right with respect to any obligation that has been so finally adjudicated, settled or otherwise agreed upon by the Parties in writing against amounts owed by the other Party under this Agreement.

Section 3.04 <u>Inspection Rights</u>. Each Party in its capacity as a Provider shall maintain records for all invoiced Services for a period of no less than two (2) years after the invoice date for such Services. Upon the written request of the other Party, it shall make such records reasonably available to such other Party for the sole purpose of permitting such other Party to confirm such invoiced amounts. Any disputes with respect to such amounts shall be subject to the dispute resolution procedures set forth in this Agreement.

**Article IV<u><br>WARRANTIES AND COMPLIANCE; LIMITATION OF LIABILITY</u>**

Section 4.01 <u>Disclaimer of Warranties</u>. Except as expressly set forth herein, the Parties acknowledge and agree that (a) the Services are provided as-is, (b) the Recipients assume all risks and Liability arising from or relating to their use of and reliance upon the Services and (c) each Party and their respective Providers make no representation or warranty with respect thereto. EXCEPT AS EXPRESSLY SET FORTH HEREIN, EACH PARTY AND THEIR RESPECTIVE PROVIDERS HEREBY EXPRESSLY DISCLAIM ALL REPRESENTATIONS AND WARRANTIES REGARDING THE SERVICES, WHETHER EXPRESS OR IMPLIED, INCLUDING ANY REPRESENTATION OR WARRANTY IN REGARD TO QUALITY, PERFORMANCE, NONINFRINGEMENT, MISAPPROPRIATION, COMMERCIAL UTILITY, OR MERCHANTABILITY OR FITNESS OF THE SERVICES FOR A PARTICULAR PURPOSE.

Section 4.02 <u>Compliance with Laws and Regulations</u>. Each Party hereto shall be responsible for its own compliance with any and all Laws applicable to its performance under this Agreement. FOR THE AVOIDANCE OF DOUBT AND NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, EACH PARTY EXPRESSLY DISCLAIMS ANY EXPRESS OR IMPLIED OBLIGATION OR WARRANTY WITH RESPECT TO THE SERVICES THAT COULD BE CONSTRUED TO REQUIRE PROVIDER TO DELIVER SERVICES HEREUNDER IN SUCH A MANNER TO ALLOW A RECIPIENT TO ITSELF COMPLY WITH ANY LAW APPLICABLE TO THE ACTIONS OR FUNCTIONS OF SUCH RECIPIENT (OR ITS AFFILIATES).

Section 4.03 <u>Limitations of 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) EXCEPT IN CONNECTION WITH EACH PARTY'S RESPECTIVE OBLIGATIONS UNDER <u>SECTIONS 5.01</u> OR <u>5.02</u> OR A PARTY'S GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR FRAUD, NEITHER PARTY SHALL HAVE ANY LIABILITY TO THE OTHER PARTY HERETO OR ANY THIRD PARTY FOR ANY INDIRECT, INCIDENTAL, EXEMPLARY, MORAL, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF DATA, LOSS OF USE, CLAIMS OF THIRD PARTIES OR LOST PROFITS, REVENUES OR OPPORTUNITIES OR LOST OR DELAYED GENERATION OR DIMINUTION IN VALUE OF ASSETS OR SECURITIES OR ANY LOSSES CALCULATED BASED ON A MULTIPLE OF REVENUES, EARNINGS OR OTHER ECONOMIC OR FINANCIAL MEASURE BY THE OTHER PARTY OR ANY THIRD PARTY), ARISING IN ANY MANNER OUT OF OR IN CONNECTION WITH THIS AGREEMENT, ITS PERFORMANCE OR BREACH HEREOF, OR INCIDENT TO ANY RECIPIENT'S OR THIRD PARTY'S USE OF (OR ANY INABILITY TO USE) THE SERVICES OR ANY OTHER INFORMATION OR MATERIALS PROVIDED TO THE RECIPIENTS HEREUNDER, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE, AND WHETHER OR NOT THE PARTY HAS BEEN ADVISED OF OR OTHERWISE MIGHT HAVE ANTICIPATED THE POSSIBILITY OF SUCH LOSSES.

&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) Except in connection with each Party's respective obligations under <u>Sections 5.01</u> or <u>5.02</u> or a Party's gross negligence, willful misconduct or fraud, in no event will either Party's maximum aggregate liability to the other Party or any of its Affiliates or Representatives for any and all claims arising out of or in connection with this Agreement, its termination, or expiration, whether in contract, tort or otherwise, be greater than an amount equal to the aggregate Service Charges received by the Parties in the preceding three (3) months as of the time of calculation, (or (i) if, as of the time of calculation, this Agreement has been in effect for less than three (3) months, the period from the Distribution Date until the time of calculation, or (ii) if, as of the time of calculation, this Agreement has been terminated pursuant to <u>Section 6.01</u>, the three (3) months prior to such termination).

**Article V<u><br>INDEMNIFICATION</u>**

Section 5.01 <u>Indemnification by Recipient</u>. Each Party as Recipient shall indemnify, defend, save and hold harmless the Providers and any of their personnel, successors and assigns (collectively, the "<u>Provider Indemnified Parties</u>"), from and against any and all losses, damages, liabilities, claims, costs and expenses (collectively, "<u>Losses</u>") to the extent resulting from or arising out of any third party claim to the extent resulting from or arising out of the subject matter of this Agreement or any operations or activities of the Recipient affected by the Services provided to it, including the use of (or inability to use) the Services, except to the extent resulting from or arising out of the Provider's gross negligence or intentional misconduct in the provision of Services by the Provider hereunder.

Section 5.02 <u>Indemnification by Provider</u>. Each Party as Provider shall indemnify, defend, save and hold harmless the Recipients and any of their personnel, successors and assigns (collectively, the "<u>Recipient Indemnified Parties</u>" and, together with the Provider Indemnified Parties, the "<u>Indemnified Parties</u>"), from and against any and all Losses to the extent resulting from or arising out of any third party claim to the extent resulting from or arising out of the Provider's gross negligence or intentional misconduct in the provision of Services by the Provider hereunder.

Section 5.03 <u>Indemnification Procedures</u>. The Indemnified Party shall provide the Party providing indemnification (the "<u>Indemnifying Party</u>") with reasonably prompt notice concerning the existence of the indemnifiable event, grant authority to the Indemnifying Party to defend or settle any related action or claim, and provide, at the Indemnifying Party's expense, such information, cooperation and assistance to the Indemnifying Party as may be reasonably necessary for the Indemnifying Party to defend or settle the claim or action; <u>provided</u> that failure to comply with the foregoing shall not constitute a waiver of the right to indemnification and shall affect the Indemnifying Party's indemnification obligations only to the extent that it is materially prejudiced by such failure or delay. Notwithstanding anything to the contrary set forth herein, (a) the Indemnifying Party shall not settle any such action or claim without the Indemnified Party's consent (not to be unreasonably withheld, conditioned or delayed), unless the settlement (i) is limited to the payment of monetary damages, (ii) includes a full release of liability with respect to the Indemnified Party, and (iii) does not include an admission of fault on the part of the Indemnified Party, and (b) the Indemnified Party (i) may participate, at its own expense, in any defense and settlement directly or through counsel of its choice and (ii) will not enter into any settlement agreement on terms that would impact the Indemnifying Party's rights or obligations, without the prior written consent of the Indemnifying Party.

**Article VI<u><br>TERMINATION</u>**

Section 6.01 <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) Notwithstanding <u>Section 2.02</u>, this Agreement may be terminated earlier by Resideo: (i) if ADI SpinCo, any ADI Provider or any of the ADI Group are in material breach of the terms of this Agreement and such breach is not cured within thirty (30) days of a written notice from Resideo or the Resideo Transition Manager of such breach; (ii) immediately upon written notice from Resideo or the Resideo Transition Manager, with respect to any Resideo Provided Service, if the continued performance of such Resideo Provided Service would be a violation of any Law or any Contract in effect prior to the Distribution Date; or (iii) upon any failure of ADI SpinCo to pay any outstanding Service Charge due to Resideo, except to the extent any part of an outstanding Service Charge is not paid due to a good faith dispute of such Service Charge by ADI SpinCo.

&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) Notwithstanding <u>Section 2.02</u>, this Agreement may be terminated earlier by ADI SpinCo: (i) if Resideo or any Resideo Provider or any of the Resideo Group is in material breach of the terms of this Agreement and such breach is not cured within thirty (30) days of a written notice from ADI SpinCo or the ADI Transition Manager of such breach; (ii) immediately upon written notice from ADI SpinCo or the ADI Transition Manager, with respect to any ADI Provided Service, if the continued performance of such ADI Provided Service would be a violation of any Law or any Contract in effect prior to the Distribution Date; or (iii) upon the failure of Resideo to pay any outstanding Service Charge due to ADI SpinCo, except to the extent any part of an outstanding Service Charge is not paid due to a good faith dispute of such Service Charge by Resideo.

&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) Without prejudice to any rights with respect to a Force Majeure: (i) a Recipient may from time to time terminate this Agreement with respect to any Service, in whole but not in part: (A) for any reason or no reason upon providing at least thirty (30) days' prior written notice to the Transition Manager of the Provider of such termination (unless a longer notice period is specified in the Schedules attached hereto or in a third party Contract to provide Services); (B) if the Provider of such Service has failed to perform any of its material obligations under this Agreement with respect to such Service, and such failure shall continue to exist thirty (30) days after receipt by the Provider's Transition Manager of written notice of such failure from the Recipient's Transition Manager; or (C) immediately upon mutual written agreement of the Parties; and (ii) a Provider may terminate this Agreement with respect to one or more Services, in whole but not in part, at any time upon prior written notice to the Recipient's Transition Manager if the Recipient has failed to perform any of its material obligations under this Agreement relating to such Services, and such failure shall be continued uncured for a period of thirty (30) days after receipt by the Recipient's Transition Manager of a written notice of such failure from the Provider's Transition Manager. The relevant Schedule shall be updated to reflect any terminated Service. In the event that the effective date of the termination of any Service is a day other than at the end of a month, the Service Charge associated with such Service shall be pro-rated appropriately.

&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) A Recipient may from time to time request a reduction in part of the scope or amount of any Service. If requested to do so by the Recipient's Transition Manager, the other Party, through its Transition Manager agrees to discuss in good faith appropriate reductions to the relevant Service Charges in light of all relevant factors including the costs and benefits to the Provider of any such reductions. The relevant Schedule shall be updated to reflect any reduced Service agreed to in writing by the Parties. In the event that any Service is so reduced other than at the end of a month, the Service Charge associated with such Service for the month in which such Service is reduced shall be pro-rated appropriately.

&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) To the extent that a Recipient is not in compliance with <u>Section 7.01(b)</u> and such non-compliance remains unremedied for a period of ten (10) days, the Provider may terminate the provision of any Services provided under such third-party Contract.

Section 6.02 <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) Upon termination of any Service pursuant to this Agreement, the Provider of the terminated Service or its Affiliate shall have no further obligation to provide the terminated Service, and Resideo or ADI SpinCo, as applicable, shall have no obligation to pay any Service Charges relating to any such Service; <u>provided</u> that Resideo or ADI SpinCo, as applicable, shall remain obligated to the other Party for the Service Charges owed and payable in respect of Services provided prior to the effective date of termination. In connection with termination of any Service, the provisions of this Agreement not relating solely to such terminated Service shall survive any such 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;(b) In connection with a termination of this Agreement, <u>Article IV</u>, <u>Article V</u>, this <u>Section 6.02</u>, <u>Article VIII</u>, and Liability for all due and unpaid Service Charges shall continue to survive indefinitely.

Section 6.03 <u>Force Majeure</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) No Party (or any Person acting on its behalf) shall have any Liability or responsibility for failure to fulfill any obligation (other than a payment obligation) under this Agreement so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure; <u>provided</u> that (i) such Party (or such Person) shall have exercised commercially reasonable efforts to minimize the effect of Force Majeure on its obligations; and (ii) the nature, quality and standard of care that the Provider shall provide in delivering a Service after a Force Majeure shall be substantially the same as the nature, quality and standard of care that the Provider provides prior to the Force Majeure. In the event of an occurrence of a Force Majeure, the Party whose performance is affected thereby shall give notice of suspension as soon as reasonably practicable to the other stating the date and extent of such suspension and the cause thereof, and such Party shall resume the performance of such obligations as soon as reasonably practicable after the removal of the cause, and if the Provider is the Party so prevented then the Recipient shall not be obligated to pay the Service Charge for a Service to the extent and for so long as such Service is not made available to the Recipient hereunder as a result of such Force Majeure.

&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) During the period of a Force Majeure, the Recipient shall be entitled to seek an alternative service provider at its own cost with respect to such Services, and Resideo or ADI SpinCo, as applicable, shall be entitled to permanently terminate such Services (and shall be relieved of the obligation to pay Service Charges for the provision of such Services throughout the duration of such Force Majeure or, in the event of such permanent termination, thereafter) if a Force Majeure shall continue to exist for more than fifteen (15) consecutive days.

**Article VII<u><br>MANAGEMENT AND CONTROL</u>**

Section 7.01 <u>Cooperation</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) During the Term, each Party shall, and shall cause its Affiliate Recipients to, use its commercially reasonable efforts to cooperate with the relevant Provider and its Affiliates with respect to such Provider providing the Services and responding to such Provider's reasonable requests for information related to the functionality or operation of the Services. Neither Party nor any of its Affiliates shall knowingly take any action which would substantially interfere with or substantially increase the cost of the other Party providing (or causing to be provided) any of the Services. After the Distribution Date, each Party and its Affiliates shall use its commercially reasonable efforts to enable the other Party or its Affiliates to provide the Services as soon as possible after the Distribution Date. Without limiting the foregoing, each Party shall provide the relevant Provider with reasonable access (during reasonable business hours) to (i) records related to the provision of the Services; and (ii) the relevant Party's personnel and facilities for the purpose of training and consultation with respect to 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) To the extent the Parties or a member of their respective Group have entered into any third-party Contracts in connection with any of the Services, the Recipients shall comply with the terms of such Contract to the extent the Recipients or their ADI Transition Manager or Resideo Transition Manager, as applicable, have been informed of such terms.

Section 7.02 <u>Required Consents</u>. Each Party shall use commercially reasonable efforts to obtain any and all third party Consents necessary or advisable to allow the relevant Provider to provide the Services (the "<u>Required Consents</u>"); <u>provided</u>, <u>however</u>, that the costs of such third-party Consents shall be paid by the Recipient of such Services. Each Party shall provide written evidence of receipt of Required Consents to the other Party upon such other Party's request.

Section 7.03 <u>Services Management</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) <u>Service Coordinators</u>. Each Party shall appoint an individual to act as the primary point of operational contact for the day-to-day administration and operation of this Agreement, as follows:

&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;(i) ADI SpinCo shall appoint an individual as the primary point of day-to-day operational contact pursuant to this <u>Section 7.03(a)</u> (the "<u>ADI Service Coordinator</u>"), who shall initially be [●], and who shall have day-to-day operational responsibility for coordinating, on behalf of ADI SpinCo, all activities undertaken by ADI SpinCo and its Providers, Affiliates and Representatives hereunder, including the performance of ADI SpinCo's obligations hereunder, the coordinating of the day-to-day provision of the ADI Provided Services and the receipt of the Resideo Provided Services, in each case, with Resideo, acting as a day-to-day contact with the Resideo Service Coordinator and making available to Resideo the data, facilities, resources and other support services from ADI SpinCo required for Resideo Providers to be able to provide the Resideo Provided Services in accordance with the requirements of this Agreement. ADI SpinCo may change ADI Service Coordinator from time to time upon written notice to Resideo. ADI SpinCo shall use commercially reasonable efforts to provide at least thirty (30) days' prior written notice of any such change.

&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;(ii) Resideo shall appoint an individual as the primary point of day-to-day operational contact pursuant to this <u>Section 7.03(a)</u> (the "<u>Resideo Service Coordinator</u>" and each of the ADI Service Coordinator and the Resideo Service Coordinator, a "<u>Service Coordinator</u>"), who shall initially be [●], and who shall have day-to-day operational responsibility for coordinating, on behalf of Resideo, all activities undertaken by Resideo and its Providers, Affiliates and Representatives hereunder, including the performance of Resideo's obligations hereunder, the coordinating of the day-to-day provision of the Resideo Provided Services and the receipt of the ADI Provided Services, in each case, with ADI SpinCo, acting as a day- to-day contact with ADI Service Coordinator and making available to ADI SpinCo the data, facilities, resources and other support services from Resideo required for ADI Providers to be able to provide the ADI Provided Services in accordance with the requirements of this Agreement. Resideo may change Resideo Service Coordinator from time to time upon written notice to ADI SpinCo. Resideo shall use commercially reasonable efforts to provide at least thirty (30) days' prior written notice of any such change.

&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;(iii) The Resideo Service Coordinator and ADI Service Coordinator shall meet either via telephone or video conference or as otherwise agreed between Resideo Service Coordinator and ADI Service Coordinator at least weekly to review Resideo's and ADI SpinCo's provision of the Services as required under 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) <u>Transition Managers</u>. Each Party shall appoint an individual to act as the primary point of managerial contact for the administration and operation of this Agreement, as follows:

&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;(i) ADI SpinCo shall appoint an individual as the primary point of managerial contact pursuant to this <u>Section 7.03(b)</u> (the "<u>ADI Transition Manager</u>"), who shall initially be [●], and who shall have overall responsibility for managing, on behalf of ADI SpinCo, all activities undertaken by ADI SpinCo and its Providers, Affiliates and Representatives hereunder, including the performance of ADI SpinCo's obligations hereunder, receiving and approving requests from the ADI Service Coordinator (including additional services, terminations and reductions in scope), attending to escalated disputes from the Service Coordinators with the Resideo Transition Manager and liaising with the Separation Management Committee. ADI SpinCo may change ADI Transition Manager from time to time upon written notice to Resideo. ADI SpinCo shall use commercially reasonable efforts to provide at least thirty (30) days' prior written notice of any such change.

&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;(ii) Resideo shall appoint an individual as the primary point of managerial contact pursuant to this <u>Section 7.03(b)</u> (the "<u>Resideo Transition Manager</u>" and each of the ADI Transition Manager and the Resideo Transition Manager, a "<u>Transition Manager</u>"), who shall initially be [●], and who shall have overall responsibility for managing, on behalf of Resideo, all activities undertaken by Resideo and its Providers, Affiliates and Representatives hereunder, including the performance of Resideo's obligations hereunder, receiving and approving requests from the Resideo Service Coordinator (including additional services, terminations and reductions in scope), attending to escalated disputes from the Service Coordinators with the ADI Transition Manager and liaising with the Separation Management Committee. Resideo shall use commercially reasonable efforts to provide at least thirty (30) days' prior written notice of any such change.

&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;(iii) The Resideo Transition Manager and ADI Transition Manager shall meet either via telephone or video conference or as otherwise agreed between Resideo Transition Manager and ADI Transition Manager at least monthly to review Resideo's and ADI SpinCo's provision of the Services as required under this Agreement.

Section 7.04 <u>Separation Management Committee</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) <u>Size and Composition</u>. Resideo shall appoint three (3) members of its management staff, who shall initially be [●], and ADI SpinCo shall appoint three (3) members of its management staff to serve on a separation management committee, who shall initially be [●] (the "<u>Separation Management Committee</u>"). Either Party may change its Separation Management Committee members from time to time upon written notice to the other Party; <u>provided</u>, <u>however</u>, that Resideo Transition Manager and ADI Transition Manager shall at all times remain as members of the Separation Management Committee. In addition, the Parties may mutually agree to increase or decrease the size, purpose or composition of the Separation Management Committee in an effort for the Providers to better provide, and for the Recipients to better utilize, the Services. The Separation Management Committee shall disband automatically upon termination of this Agreement in accordance with its terms.

&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) <u>Responsibilities</u>. The Separation Management Committee's responsibilities include:

&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;(i) generally overseeing the performance of each Party's obligations under this Agreement; and

&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;(ii) making, and providing continuity for making, decisions for the Recipients with respect to the establishment, prioritization and use 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;(c) <u>Meetings</u>. The Separation Management Committee shall meet once a month or with such other frequency as mutually agreed by the Parties. Each Separation Management Committee meeting shall be via telephone or video conference or as otherwise agreed by the members of the Separation Management Committee.

Section 7.05 <u>Personnel</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) The Provider of any Service shall make available to the Recipient of such Service such personnel as may be reasonably necessary to provide such Service, in accordance with such Provider's standard business practices. The Provider shall have the right, in its reasonable discretion, to (i) designate which personnel it will assign to perform such Service, and (ii) remove and replace such personnel at any time.

&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) The Provider of any Service shall be solely responsible for all salary, employment and other benefits of and Liabilities relating to the employment of persons employed by such Provider. In performing their respective duties hereunder, all such employees and representatives of any Provider shall be under the direction, control and supervision of such Provider, and such Provider shall have the sole right to exercise all authority with respect to the employment (including termination of employment), assignment and compensation of such employees and representatives.

Section 7.06 <u>No Agency</u>. Nothing in this Agreement shall be deemed in any way or for any purpose to constitute any Party or its Affiliates acting as an agent of another unaffiliated Person in the conduct of such other Person's business. A Provider of any Service hereunder shall act as an independent contractor and not as the agent of the Recipient or its Affiliates in performing such Service.

**Article VIII<u><br>MISCELLANEOUS</u>**

Section 8.01 <u>Treatment of Confidential Information</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) The provisions of Section 6.5 of the Separation Agreement shall govern the treatment of Confidential Information 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;(b) Each Party shall comply with all applicable state, federal and foreign privacy and data protection Laws that are or that may in the future be applicable to the provision of Services hereunder.

Section 8.02 <u>Entire Agreement; Construction</u>. This Agreement, including the Exhibits and Schedules hereto, 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. In the event of any conflict or inconsistency between this Agreement and any Schedule hereto, the Schedule shall prevail.

Section 8.03 <u>Notices</u>. All notices, requests, claims, demands and other communications under this Agreement shall be in English, shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by email or by facsimile with receipt confirmed (followed by delivery of an original via overnight courier service) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this <u>Section 8.03</u>):

To Resideo:

Resideo Technologies, Inc.

16100 N. 71st St., Suite 550

Scottsdale, Arizona 85254

Attention: [●]

Email: [●]

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

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019

---

| | |
|:---|:---|
| Attention: | Russell L. Leaf |
|  | Jared Fertman |
|  | Tej Prakash |
| Email: | rleaf@willkie.com |
|  | jfertman@willkie.com |
|  | tprakash@willkie.com |

---

To ADI SpinCo:

ADI Global Distribution Inc.

275 Broadhollow Rd., Suite 400<br> Melville, NY 11747

Attention: [●]

Email: [●]

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

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019

---

| | |
|:---|:---|
| Attention: | Russell L. Leaf |
|  | Jared Fertman |
|  | Tej Prakash |
| Email: | rleaf@willkie.com |
|  | jfertman@willkie.com |
|  | tprakash@willkie.com |

---

Section 8.04 <u>Amendments</u>. No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by a Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representatives of the Parties against whom it is sought to enforce such waiver, amendment, supplement or modification.

Section 8.05 <u>No Waiver</u>. 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 or thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

Section 8.06 <u>Assignment</u>. This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any Party hereto without the prior written consent of the other Party, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void. Notwithstanding the foregoing, this Agreement shall be assignable to (i) an Affiliate of a Party, or (ii) a bona fide third party in connection with a merger, reorganization, consolidation or the sale of all or substantially all the assets of a Party hereto so long as the resulting, surviving or transferee entity assumes all the obligations of the relevant Party hereto by operation of law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party; <u>provided</u>, <u>however</u>, that in the case of each of the preceding clauses (i) and (ii), no assignment permitted by this <u>Section 8.06</u> shall release the assigning Party from Liability for the full performance of its obligations under this Agreement.

Section 8.07 <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 assigns.

Section 8.08 <u>Payment Terms</u>. Unless otherwise consented to by the Party receiving any payment under this Agreement specifying otherwise, all payments to be made by either Resideo or ADI SpinCo under this Agreement shall be made in US Dollars. Except as expressly provided herein, any amount which is not expressed in US Dollars shall be converted into US Dollars by using the exchange rate published on Bloomberg at 5:00 pm Eastern time (ET) on the day before the relevant date or in The Wall Street Journal on such date if not so published on Bloomberg.

Section 8.09 <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 Distribution Date, to the extent such Subsidiary remains a Subsidiary of the applicable Party.

Section 8.10 <u>Third Party Beneficiaries</u>. Except as set forth in <u>Section 5.01</u> or <u>Section 5.02</u>, this Agreement is solely for the benefit of the Parties and should not be deemed to confer upon third parties any remedy, claim, Liability, reimbursement, claim of Action or other right in excess of those existing without reference to this Agreement.

Section 8.11 <u>Exhibits and Schedules</u>. The Exhibits and Schedules shall be construed with and as an integral part of this Agreement to the same extent as if the same had been set forth verbatim herein.

Section 8.12 <u>Governing Law</u>. This Agreement and any dispute arising 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 8.13 <u>Dispute Resolution</u>. The Parties agree that any disputes arising with respect to this Agreement, including the interpretation, enforcement, termination or invalidity hereof (each, a "<u>Dispute</u>") shall first be addressed by each Party's Service Coordinator. If the Service Coordinators are unable to resolve such Dispute within thirty (30) days of the referral of such Dispute to them (or such longer period as the Parties may agree), such Dispute shall be referred to the Transition Managers for resolution. If the Transition Managers are unable to resolve such Dispute within three (3) Business Days of the referral of such Dispute to them (or such longer period as the Parties may agree), such Dispute shall be referred to the Separation Management Committee for resolution. If the Separation Management Committee is unable to resolve such Dispute with five (5) Business Days of such referral (or such longer period as the Parties may agree), the provisions of Article VII of the Separation Agreement shall govern. Each Party agrees to continue to fulfill its obligations under this Agreement during the pendency of any Dispute.

Section 8.14 <u>Termination</u>. This Agreement may be terminated at any time prior to the Effective Time by and in the sole discretion of Resideo without the approval of ADI SpinCo or the stockholders of Resideo. In the event of such termination prior to the Effective Time, no Party (nor any of its directors, officers or employees) shall have any liability of any kind to the other Party or any other Person by reason of this Agreement. Following the Effective Time, this Agreement may be terminated pursuant to <u>Article VI</u>.

Section 8.15 <u>Severability</u>. In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The Parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

Section 8.16 <u>Interpretation</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) The Parties have participated jointly in the negotiation and drafting of this Agreement. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting or causing any instrument to be drafted.

&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) Titles and headings to Articles and 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.

&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) When a reference is made in this Agreement to an Article, Section or Exhibit such reference shall be to an Article or Section of, or Exhibit to, this Agreement unless otherwise indicated. Wherever the words "include," "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation." References to "dollar" or "$" contained herein are to United States Dollars (unless otherwise specified). The words "hereof," "herein," "hereto" and "hereunder" and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement.

Section 8.17 <u>Counterparts</u>. This Agreement may be executed in more than one counterpart, all of which shall be considered one and the same agreement, 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.

[Signature page follows]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the date first written above by their respective duly authorized officers.

---

| | |
|:---|:---|
| RESIDEO TECHNOLOGIES, INC. | RESIDEO TECHNOLOGIES, INC. |
| By:<u> </u> |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
| ADI GLOBAL DISTRIBUTION INC. | ADI GLOBAL DISTRIBUTION INC. |
| By:<u> </u> |  |
|  | Name: |
|  | Title: |

---

## Exhibit 10.2

**Exhibit 10.2**

**Tax Matters Agreement**

by and between

**RESIDEO TECHNOLOGIES, INC.**

and

**ADI GLOBAL distribution INC.**

**Dated as of [●], 2026**

**Table of Contents**

---

| | | |
|:---|:---|:---|
| |  | **Page** |
| Article I | Definitions | 2 |
| 1.1 | General | 2 |
| Article II | Payments and Tax Refunds | 11 |
| 2.1 | Taxes Relating to Joint Returns | 11 |
| 2.2 | Taxes Relating to Separate Returns | 11 |
| 2.3 | Certain Indemnified Taxes; Integration; Satisfaction | 12 |
| 2.4 | Determination of Tax Attributable to the ADI Business | 12 |
| 2.5 | Allocation of Employment Taxes | 12 |
| 2.6 | Tax Refunds | 12 |
| 2.7 | Tax Benefits | 13 |
| 2.8 | Certain Carrybacks | 13 |
| 2.9 | Tax Adjustments | 13 |
| 2.10 | Prior Agreements | 13 |
| 2.11 | Resideo and ADI SpinCo Income Tax Deductions in Respect of Certain Equity Awards and Incentive Compensation | 13 |
| Article III | Preparation and Filing of Tax Returns | 14 |
| 3.1 | Resideo's Responsibility | 14 |
| 3.2 | ADI SpinCo's Responsibility | 14 |
| 3.3 | Right to Review Tax Returns | 14 |
| 3.4 | Cooperation | 15 |
| 3.5 | Tax Reporting Practices | 15 |
| 3.6 | Reporting of Separation | 15 |
| 3.7 | Distribution Straddle Period Tax Allocation | 16 |
| 3.8 | Payment of Taxes | 16 |
| 3.9 | Amended Returns and Carrybacks | 17 |
| 3.10 | Tax Attributes | 17 |
| 3.11 | Section 245A Election | 17 |
| 3.12 | Information for Joint Returns and Resideo Separate Returns | 17 |
| Article IV | Tax-Free Status of the Distribution | 18 |
| 4.1 | Representations and Warranties | 18 |
| 4.2 | Restrictions Relating to the Distribution | 19 |
| Article V | Indemnity Obligations | 21 |
| 5.1 | Indemnity Obligations | 21 |
| 5.2 | Indemnification Payments | 22 |
| 5.3 | Payment Mechanics | 23 |
| 5.4 | Treatment of Liabilities and Payments; Gross-Up | 23 |

---

i

---

| | | |
|:---|:---|:---|
| Article VI | Tax Contests | 24.0 |
| 6.1 | Notice | 24.0 |
| 6.2 | Separate Returns | 24.0 |
| 6.3 | Joint Returns | 24.0 |
| 6.4 | Mixed Contests | 24.0 |
| 6.5 | Distribution-Related Tax Contests | 25.0 |
| 6.6 | Obligation of Continued Notice | 25.0 |
| 6.7 | Settlement Rights | 26.0 |
| 6.8 | Costs and Expenses | 26.0 |
| Article VII | Cooperation | 26.0 |
| 7.1 | General | 26.0 |
| 7.2 | Timely Compliance | 27.0 |
| 7.3 | Consistent Treatment | 27.0 |
| 7.4 | Impact of Cooperation | 27.0 |
| Article VIII | Retention of Records; Access | 28.0 |
| 8.1 | Retention of Records | 28.0 |
| 8.2 | Access to Tax Records | 28.0 |
| Article IX | Dispute Resolution | 28.0 |
| 9.1 | Dispute Resolution | 28.0 |
| 9.2 | Injunctive Relief | 29.0 |
| Article X | Miscellaneous Provisions | 29.0 |
| 10.1 | Disposition of ADI SpinCo Subsidiaries | 29.0 |
| 10.2 | Conflicting Agreements | 29.0 |
| 10.3 | Interest on Late Payments | 29.0 |
| 10.4 | Expenses | 29.0 |
| 10.5 | Successors | 29.0 |
| 10.6 | Subsidiaries | 29.0 |
| 10.7 | Assignability | 30.0 |
| 10.8 | No Fiduciary Relationship | 30.0 |
| 10.9 | Further Assurances | 30.0 |
| 10.10 | Survival | 30.0 |
| 10.11 | Notices | 30.0 |
| 10.12 | Distribution Date | 31.0 |
| 10.13 | No Waiver | 31.0 |
| 10.14 | Severability | 31.0 |
| 10.15 | Interpretation | 31.0 |
| 10.16 | Integration | 31.0 |
| 10.17 | Title and Headings | 32.0 |
| 10.18 | Counterparts | 32.0 |
| 10.19 | Governing Law | 32.0 |
| 10.20 | Amendments | 32.0 |
| 10.21 | No Duplication; No Double Recovery | 32.0 |
| 10.22 | Specific Performance | 32.0 |
| 10.23 | Authority | 32.0 |

---

ii

**Tax Matters Agreement**

This Tax Matters Agreement (this "<u>Agreement</u>"), is entered into as of [●], 2026 between Resideo Technologies, Inc., a Delaware corporation ("<u>Resideo</u>"), and ADI Global Distribution Inc., a Delaware corporation ("<u>ADI SpinCo</u>" and, together with Resideo, the "<u>Parties</u>," and each, a "<u>Party</u>"). Capitalized terms used in this Agreement and not defined herein shall have the meanings ascribed to such terms in the Separation and Distribution Agreement, dated as of the date hereof, between the Parties (as may be amended, modified or restated from time to time, the "<u>Separation Agreement</u>").

**Recitals**

**Whereas,** the board of directors of Resideo has determined that it is appropriate, desirable and in the best interests of Resideo and its stockholders to separate the ADI Business from Resideo's other businesses, creating ADI SpinCo as a new subsidiary company to which Resideo will transfer, directly or indirectly, the assets and liabilities of the ADI Business (the "<u>Separation</u>") and, following the Separation, to undertake the Distribution;

**Whereas,** ADI SpinCo has been incorporated for these purposes and has not engaged in activities except those incidental to its formation and in preparation for the Distribution;

**Whereas,** Resideo will effect certain restructuring transactions described in the Separation Plan for the purpose of aggregating the ADI Business, the ADI Assets and the ADI Liabilities in the ADI Group prior to the Distribution (collectively, the "<u>Reorganization</u>");

**Whereas,** in connection with the Reorganization and pursuant to the Separation Plan, Resideo will contribute, or cause to be contributed, to ADI SpinCo or a Subsidiary thereof, the assets of, and entities conducting, the ADI Business (the "<u>Contribution</u>") and, in exchange therefor, ADI SpinCo shall, or shall cause a Subsidiary thereof to, as applicable, (i) issue to Resideo shares of ADI SpinCo Common Stock and ADI SpinCo Preferred Stock (which issuances may be actual or constructive), (ii) assume (directly or indirectly) certain Liabilities of Resideo and its Subsidiaries associated with the ADI Business, and (iii) pay Resideo an amount of cash equal to the ADI Cash Payment (and any Cash Adjustment payable by ADI SpinCo to Resideo), each as more fully described and subject to the terms and conditions set forth in the Separation Agreement;

**Whereas,** Resideo (i) will distribute all of the outstanding ADI SpinCo Common Stock to the holders of Resideo common stock as a pro rata dividend (the "<u>Common Distribution</u>") and (ii) pursuant to the Exchange Agreement, cause the exchange of certain shares of Resideo Preferred Stock held by CD&R and the other party thereto for shares of ADI SpinCo Preferred Stock (the "<u>Preferred Exchange</u>," and, taken together with the Common Distribution, the "<u>Distribution</u>");

**Whereas,** Resideo intends to effect the Distribution in a transaction, that, taken together with the Contribution, is intended to qualify as tax-free for U.S. federal income Tax purposes under Sections 368(a)(1)(D), 355 and 361(c) of the Code;

**Whereas,** certain members of the Resideo Group, on the one hand, and certain members of the ADI Group, on the other hand, file certain Tax Returns on a consolidated, combined, unitary or similar basis for certain federal, state, local and foreign Tax purposes; and

**Whereas,** the Parties desire to (i) provide for the payment of Tax liabilities and entitlement to refunds thereof, allocate responsibility for, and cooperation in, the filing of Tax Returns, and provide for certain other matters relating to Taxes and (ii) set forth certain covenants and indemnities relating to the preservation of the tax-free status of the relevant Transactions.

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

**<u>Article I</u>**

**Definitions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>General</u>. As used in this Agreement, the following terms shall have the following meanings:

"<u>Action</u>" shall have the meaning set forth in the Separation Agreement.

"<u>ADI Active Trade or Business</u>" shall mean the active conduct (as defined in Section 355(b)(2) of the Code and the Treasury Regulations thereunder) by ADI SpinCo and its "separate affiliated group" (as defined in Section 355(b)(3)(B) of the Code) of the trade or business (as defined in the Tax Opinion and as further described in the Tax Materials) as conducted immediately prior to the Distribution.

"<u>ADI Assets</u>" shall have the meaning set forth in the Separation Agreement.

"<u>ADI Business</u>" shall have the meaning set forth in the Separation Agreement.

"<u>ADI Carryback</u>" shall mean any net operating loss, net capital loss, excess tax credit, or other similar Tax Item of any member of the ADI Group which may or must be carried from one taxable period to another prior taxable period under the Code or other applicable Tax Law.

"<u>ADI Cash Payment</u>" shall have the meaning set forth in the Separation Agreement.

"<u>ADI Disqualifying Action</u>" shall mean (i) any action (or the failure to take any action) by any member of the ADI Group after the Distribution (including entering into any agreement, understanding or arrangement or any negotiations with respect to any transaction or series of transactions), (ii) any event (or series of events) after the Distribution involving the ADI SpinCo Capital Stock or any stock or assets of any member of the ADI Group, (iii) any action, failure to act or transaction prohibited or required, as applicable, pursuant to <u>Section 4.2(b)</u> (regardless of whether the requirements of <u>Section 4.2(e)</u> are satisfied with respect to such action, failure to act or transaction) or <u>Section 4.2(c)</u> (regardless of whether Resideo consents to any such action, failure to act or transaction), or (iv) any breach by ADI SpinCo or any member of the ADI Group after the Distribution of any representation, warranty or covenant made by it in this Agreement, the Separation Agreement or any Ancillary Agreement, that, in each case of the foregoing clauses (i) through (iv), would adversely affect the Tax-Free Status of the Transactions or the Tax Treatment of the Transactions; <u>provided</u>, <u>however</u>, that the term "ADI Disqualifying Action" shall not include any action required pursuant to any Ancillary Agreement (other than this Agreement) or that is expressly contemplated by the Separation or the Distribution.

"<u>ADI Group</u>" shall have the meaning set forth in the Separation Agreement.

"<u>ADI Liabilities</u>" shall have the meaning set forth in the Separation Agreement.

"<u>ADI Pre-Distribution Period Taxes</u>" shall mean any and all Taxes due with respect to all Pre-Distribution Periods imposed on the Resideo Group arising out of, based upon, or attributable to the ADI Business, including, for the avoidance of doubt, any Taxes resulting from any Internal Distributions.

"<u>ADI Separate Return</u>" shall mean any Tax Return of or including any member of the ADI Group (including any consolidated, combined, unitary or similar return) that does not include any member of the Resideo Group.

"<u>ADI SpinCo</u>" shall have the meaning set forth in the preamble hereto.

"<u>ADI SpinCo Capital Stock</u>" shall mean all classes or series of capital stock of ADI SpinCo, including (i) the ADI SpinCo Common Stock, (ii) ADI SpinCo Preferred Stock, (iii) all options, warrants and other rights to acquire such capital stock and (iv) all instruments properly treated as stock in ADI SpinCo for U.S. federal income Tax purposes.

"<u>ADI SpinCo Common Stock</u>" shall have the meaning set forth in the Separation Agreement.

"<u>ADI SpinCo Preferred Stock</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Adjustment</u>" shall mean an adjustment of any item of income, gain, loss, deduction, credit or any other item affecting Taxes of a taxpayer pursuant to a Final Determination.

"<u>Affiliate</u>" shall mean, when used with respect to a specified Person and at a point in, or with respect to a period of, time, a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person at such point in or during such period of time. For the purposes of this definition, "control," 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, (a) from and after the Effective Time, solely for purposes of this Agreement, (i) no member of the ADI Group shall be deemed an Affiliate of any member of the Resideo Group and (ii) no member of the Resideo Group shall be deemed an Affiliate of any member of the ADI Group, and (b) whether before or after the Effective Time, solely for purposes of this Agreement, neither CD&R nor any of its Affiliates (other than Resideo, ADI SpinCo and their respective Subsidiaries, as applicable) will be deemed an Affiliate of any member of the Resideo Group or the ADI Group, and *vice versa*.

"<u>Agreement</u>" shall have the meaning set forth in the preamble hereto.

"<u>Ancillary Agreement</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Business Day</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Capital Stock</u>" shall mean all classes or series of capital stock, including (i) common stock, (ii) preferred stock, (iii) all options, warrants and other rights to acquire such capital stock and (iv) all instruments properly treated as stock for U.S. federal income Tax purposes.

"<u>Cash Adjustment</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Code</u>" shall mean the Internal Revenue Code of 1986, as amended.

"<u>Common Distribution</u>" shall have the meaning set forth in the recitals hereto.

"<u>Contract</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Contribution</u>" shall have the meaning set forth in the recitals hereto.

"<u>Controlling Party</u>" shall mean, with respect to a Tax Contest, the Party entitled to control such Tax Contest pursuant to <u>Sections 6.2</u>, <u>6.3</u>, <u>6.4</u> and <u>6.5</u> of this Agreement.

"<u>CD&R</u>" shall have the meaning set forth in the Separation Agreement.

"<u>CD&R Agreements</u>" shall mean (i) that certain Shareholders Agreement entered into by and among ADI SpinCo, CD&R and the various other parties thereto on [__], 2026, and (ii) any other agreement entered into between ADI SpinCo and CD&R (or any of the Affiliates of CD&R) in connection with the Separation, Reorganization or Distribution.

"<u>Dispute Resolution Firm</u>" shall have the meaning set forth in <u>Section 9.1</u>.

"<u>Distribution</u>" shall have the meaning set forth in the recitals hereto.

"<u>Distribution Date</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Distribution Taxes</u>" shall mean any Taxes incurred as a result of the failure of any of the Transactions to qualify for the Tax-Free Status of the Transactions or the Tax Treatment of the Transactions.

"<u>Distribution-Related Tax Contest</u>" shall mean any Tax Contest in which the IRS, another Taxing Authority, or any other Person asserts a position that could reasonably be expected to (i) adversely affect, jeopardize or prevent (x) the Tax-Free Status of the Transactions or (y) the Tax Treatment of the Transactions or (ii) otherwise affect the amount of Taxes imposed with respect to any of the Transactions.

"<u>Effective Time</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Employee Matters Agreement</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Employment Tax</u>" shall mean those Liabilities (as defined in the Separation Agreement) for Taxes which are allocable pursuant to the provisions of the Employee Matters Agreement.

"<u>Employment Tax Credit</u>" shall mean any Tax credit allocated to Resideo or a member of the Resideo Group pursuant to the provisions of the Employee Matters Agreement.

"<u>Federal Tax</u>" shall mean any Tax imposed by the federal government of the United States (other than any Employment Taxes).

"<u>Final Determination</u>" shall mean the final resolution of liability for any Tax for any taxable period, by or as a result of (i) IRS Form 870 or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the taxpayer, or by a comparable form under the Laws of a state, local, or foreign taxing jurisdiction, except that a Form 870 or 870-AD or comparable form shall not constitute a Final Determination to the extent that it reserves (whether by its terms or by operation of Law) the right of the taxpayer to file a claim for a Tax Benefit or the right of the Taxing Authority to assert a further deficiency in respect of the relevant issue or adjustment or for such taxable period (as the case may be), (ii) a final decision, judgment, decree or other order by any court of competent jurisdiction that can no longer be appealed, (iii) a final settlement with the IRS, a closing agreement or accepted offer in compromise under Section 7121 or 7122 of the Code, or a comparable agreement under the Laws of other jurisdictions, which resolves the entire Tax liability for any taxable period, (iv) any allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration of all periods during which such refund or credit may be recovered (including by way of offset) by the jurisdiction imposing the Tax, or (v) any other final resolution, including by reason of the expiration of the applicable statute of limitations or the execution of a pre-filing agreement with the IRS or other Taxing Authority.

"<u>Foreign Tax</u>" shall mean any Tax imposed by any foreign country or any possession of the United States, or by any political subdivision of any foreign country or United States possession.

"<u>Group</u>" shall mean either the Resideo Group or the ADI Group, as the context requires.

"<u>Honeywell TMA</u>" shall have the meaning set forth in <u>Section 5.1(e)</u>.

"<u>Indemnification Threshold</u>" shall have the meaning set forth in <u>Section 5.1(d)</u>.

"<u>Indemnifying Party</u>" shall have the meaning set forth in <u>Section 5.2(a)</u>.

"<u>Indemnitee</u>" shall have the meaning set forth in <u>Section 5.2(a)</u>.

"<u>Internal Distribution</u>" shall mean, with respect to the pre-Distribution reorganization of ADEMCO III Ltd, any distribution or exchange of stock of ADEMCO III Ltd or any other Subsidiary of Resideo (determined prior to the Distribution), or other transaction having the same effect, in each case, together with related transactions, that is intended to qualify as a reorganization described in Sections 368(a)(1)(D) and 355 of the Code or a distribution described in Section 355(a) of the Code.

"<u>IRS</u>" shall mean the United States Internal Revenue Service or any successor thereto, including, but not limited to, its agents, representatives, and attorneys.

"<u>IRS Ruling</u>" shall mean any U.S. federal income Tax ruling, and any supplements thereto, issued to Resideo by the IRS in connection with the Transactions.

"<u>IRS Ruling Request</u>" shall mean the letter filed by Resideo with the IRS on April 1, 2026 (including all attachments, exhibits, and other materials submitted with such letter) requesting a ruling regarding certain tax consequences of the Transactions and any amendment or supplement to such ruling request letter.

"<u>Joint Return</u>" shall mean any Tax Return that includes, by election or otherwise, one or more members of the Resideo Group together with one or more members of the ADI Group.

"<u>Law</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Non-Controlling Party</u>" shall mean, with respect to a Tax Contest, the Party that is not entitled to control such Tax Contest pursuant to <u>Sections 6.2</u>, <u>6.3</u>, <u>6.4</u> and <u>6.5</u> of this Agreement.

"<u>Parties</u>" shall have the meaning set forth in the preamble hereto.

"<u>Past Practices</u>" shall have the meaning set forth in <u>Section 3.5</u>.

"<u>Person</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Post-Distribution Period</u>" shall mean any taxable period (or portion thereof) beginning after the Distribution Date, including, for the avoidance of doubt, the portion of any Straddle Period beginning after the Distribution Date.

"<u>Pre-Distribution Period</u>" shall mean any taxable period (or portion thereof) ending on or before the Distribution Date, including for the avoidance of doubt, the portion of any Straddle Period ending at the end of the day on the Distribution Date.

"<u>Preferred Exchange</u>" shall have the meaning set forth in the recitals hereto.

"<u>Proposed Acquisition Transaction</u>" shall mean a transaction or series of transactions (or any agreement, understanding or arrangement, within the meaning of Section 355(e) of the Code and Treasury Regulations Section 1.355-7, or any other regulations promulgated thereunder, to enter into a transaction or series of transactions), whether such transaction is supported by ADI SpinCo management or shareholders, is a hostile acquisition, or otherwise, as a result of which ADI SpinCo would merge or consolidate with any other Person or as a result of which one or more Persons would (directly or indirectly) acquire, or have the right to acquire, from ADI SpinCo and/or one or more holders of ADI SpinCo Capital Stock, respectively, any amount or number of shares of ADI SpinCo Capital Stock, that would, when combined with any other direct or indirect changes in ownership of ADI SpinCo Capital Stock pertinent for purposes of Section 355(e) of the Code and/or the Treasury Regulations promulgated thereunder, comprise forty percent (40%) or more of (i) the value of all outstanding shares of stock of ADI SpinCo as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of such series, in each case determined after giving effect to the transaction or series of transactions, or (ii) the total combined voting power of all outstanding shares of voting stock of ADI SpinCo as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of such series, in each case determined after giving effect to the transaction or series of transactions. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (x) the adoption by ADI SpinCo of a shareholder rights plan or (y) issuances by ADI SpinCo that satisfy Safe Harbor VIII (relating to acquisitions in connection with a person's performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulations Section 1.355-7(d). For purposes of determining whether a transaction constitutes an indirect acquisition, any recapitalization resulting in a shift of voting power or any redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by the non-exchanging shareholders. This definition and the application thereof is intended to monitor compliance with Section 355(e) of the Code and the Treasury Regulations promulgated thereunder and shall be interpreted accordingly. Any clarification of, or change in, the statute or regulations promulgated under Section 355(e) of the Code shall be incorporated in this definition and its interpretation. For the avoidance of doubt, any references to ADI SpinCo in this definition and related provisions of this Agreement shall include a reference to any successor thereto.

"<u>Reasonable Basis</u>" shall mean reasonable basis within the meaning of Section 6662(d)(2)(B)(ii)(II) of the Code and the Treasury Regulations promulgated thereunder (or such other level of confidence required by the Code at that time to avoid the imposition of penalties).

"<u>Refund</u>" shall mean any refund, reimbursement, offset, credit, or other similar benefit in respect of Taxes (including any overpayment of Taxes that can be refunded or, alternatively, applied against other Taxes payable), including any interest paid on or with respect to such refund of Taxes.

"<u>Reorganization</u>" shall have the meaning set forth in the recitals.

"<u>Resideo</u>" shall have the meaning set forth in the preamble hereto.

"<u>Resideo Capital Stock</u>" shall mean all classes or series of capital stock of Resideo, including (i) the Resideo Common Stock, (ii) Resideo Preferred Stock, (iii) all options, warrants and other rights to acquire such capital stock and (iv) all instruments properly treated as stock in Resideo for U.S. federal income Tax purposes.

"<u>Resideo Common Stock</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Resideo Group</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Resideo Preferred Stock</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Resideo Pre-Distribution Period Taxes</u>" shall mean any and all Taxes due with respect to all Pre-Distribution Periods imposed on the ADI Group arising out of, based upon, or attributable to those businesses, other than the ADI Business, historically conducted by Resideo and its Subsidiaries prior to the Effective Time.

"<u>Resideo Retained Assets</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Resideo Retained Business</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Resideo Retained Liabilities</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Resideo Separate Return</u>" shall mean any Tax Return of or including any member of the Resideo Group (including any consolidated, combined, unitary or similar return) that does not include any member of the ADI Group.

"<u>Responsible Company</u>" shall mean, with respect to any Tax Return, the Party having responsibility for preparing and filing such Tax Return pursuant to this Agreement.

"<u>Restricted Period</u>" shall mean the period beginning (and including) the Distribution Date and ending on (and including) the first Business Day after the two-year anniversary of the Distribution Date.

"<u>Reviewing Company</u>" shall have the meaning set forth in <u>Section 3.3(a)</u>.

"<u>Section 4.2(d) Acquisition Transaction</u>" shall mean any transaction or series of transactions that is not a Proposed Acquisition Transaction but would be a Proposed Acquisition Transaction if the percentage reflected in the definition of Proposed Acquisition Transaction were ten percent (10%) instead of forty percent (40%).

"<u>Separate Return</u>" shall mean a Resideo Separate Return or an ADI Separate Return, as the case may be.

"<u>Separation</u>" shall have the meaning set forth in the recitals.

"<u>Separation Agreement</u>" shall have the meaning set forth in the preamble hereto.

"<u>Separation Plan</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Specific Indemnities</u>" shall have the meaning set forth in <u>Section 2.3</u>.

"<u>State Tax</u>" shall mean any Tax imposed by any state of the United States or by any political subdivision of any such state or the District of Columbia, or any city or municipality located therein.

"<u>Straddle Period</u>" shall mean any taxable year or other taxable period that begins on or before the Distribution Date and ends after the Distribution Date.

"<u>Subsidiary</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Tax</u>" or "<u>Taxes</u>" shall mean (i) all taxes, charges, fees, duties, levies, imposts, rates and other similar assessments and governmental charges of any kind imposed by any federal, state, local or non-United States Taxing Authority, including, without limitation, income, gross receipts, employment, estimated, excise, severance, stamp, occupation, premium, windfall profits, environmental, custom duties, property, sales, use, license, capital stock, transfer, franchise, registration, payroll, withholding, social security, unemployment, disability, value added, alternative, add-on minimum and other taxes, whether disputed or not, and including any interest, penalties, charges or additions attributable thereto, (ii) liability for the payment of any amount of the type described in clause (i) above arising as a result of being (or having been) a member of any Tax group or being (or having been) included or required to be included in any Tax Return related thereto, or as transferee or successor, and (iii) liability for the payment of any amount of the type described in clause (i) or (ii) above as a result of any express or implied obligation to indemnify or otherwise assume or succeed to the liability of any other Person.

"<u>Tax Advisor</u>" shall mean any Tax counsel or accounting firm of recognized national standing in the United States (or, in the case of any Tax Opinion regarding the Tax treatment of any of the Transactions under the Laws of a foreign jurisdiction, in the relevant foreign jurisdiction).

"<u>Tax Advisor Dispute</u>" shall have the meaning set forth in <u>Section 9.1</u>.

"<u>Tax Attribute</u>" shall mean net operating losses, capital losses, research and experimentation credit carryovers, excess charitable contributions, investment tax credit carryovers, earnings and profits, foreign tax credit carryovers, overall foreign losses, overall domestic losses, previously taxed earnings and profits, separate limitation losses and any other similar losses, deductions, credits or other comparable items that could reduce a Tax liability for a past or future taxable period; <u>provided</u>, <u>however</u>, that the term "Tax Attribute" shall not include tax basis.

"<u>Taxing Authority</u>" shall mean any governmental authority or any subdivision, agency, commission or entity thereof or any quasi-governmental or private body having jurisdiction over the assessment, determination, collection or imposition of any Tax (including the IRS).

"<u>Tax Benefit</u>" shall mean a cash tax benefit actually realized due to any reduction in liability for Taxes (or increase in a Refund) as a result of any loss, deduction, Refund, reimbursement, offset, credit, or other item reducing any Taxes otherwise payable.

"<u>Tax Representation Letters</u>" shall mean any representation letters of officers of Resideo and/or ADI SpinCo provided to any Tax Advisor in connection with any Tax Opinion issued in connection with the Transactions.

"<u>Tax Contest</u>" shall mean any pending or threatened audit, claim, dispute, suit, action, litigation, proposed assessment or other proceeding with respect to Taxes or Tax Benefits (including any administrative or judicial review of any claim for Refund).

"<u>Tax Item</u>" shall mean any item of income, gain, loss, deduction, or credit.

"<u>Tax Law</u>" shall mean the law of any Taxing Authority or political subdivision thereof relating to any Tax.

"<u>Tax Materials</u>" shall have the meaning set forth in <u>Section 4.1(a)</u>.

"<u>Tax Matter</u>" shall have the meaning set forth in <u>Section 7.1(a)</u>.

"<u>Tax Opinion</u>" shall mean any written opinion or memorandum of any Tax Advisor regarding certain tax consequences of certain transactions executed as part of the Transactions.

"<u>Tax Records</u>" shall mean any (i) Tax Returns, (ii) Tax Return work papers, (iii) documentation relating to any Tax Contests and (iv) any other books of account or records (whether or not in written, electronic, or other tangible or intangible forms and whether or not stored on electronic or any other medium) maintained or required to be maintained under the Code or other applicable Tax Laws or under any record retention agreement with any Taxing Authority.

"<u>Tax Return</u>" shall mean any return, report, certificate, form or similar statement or document (including any related supporting information or schedule attached thereto and any information return, amended tax return, claim for refund or declaration of estimated tax) supplied to or filed with, or required to be supplied to or filed with, a Taxing Authority, including any amendment thereof or supplement thereto, or any bill for or notice related to ad valorem or other similar Taxes received from a Taxing Authority, in each case, in connection with the determination, assessment or collection of any Tax or the administration of any laws, regulations or administrative requirements relating to any Tax.

"<u>Tax-Related Losses</u>" shall mean, with respect to any Taxes (or any reduction in a Refund), (i) all accounting, legal and other professional fees, and court costs incurred in connection with such Taxes (or reduction in a Refund), as well as any other out-of-pocket costs, expenses or other liabilities incurred in connection with such Taxes (or reduction in a Refund); and (ii) all costs, expenses and damages associated with stockholder litigation or controversies and any amount paid by Resideo (or any of its Affiliates) or ADI SpinCo (or any of its Affiliates) in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Taxing Authority, in each case of this clause (ii), resulting from the failure of the Transactions to qualify for the Tax-Free Status of the Transactions or the Tax Treatment of the Transactions.

"<u>Tax-Free Status of the Transactions</u>" shall mean, with respect to the Contribution and the Distribution, taken together, and each Internal Distribution, the qualification thereof as (i) in the case of the Contribution and the Distribution, taken together, as a "reorganization" described in Sections 368(a)(1)(D) and 355(a) of the Code and, in the case of each Internal Distribution, as a "reorganization" described in Sections 368(a)(1)(D) and 355(a) of the Code or a distribution described in Section 355(a) of the Code, as applicable, and (ii) as a transaction in which (x) cash or other property received is property with respect to which no gain is recognized pursuant to Section 361(a) or (b) of the Code, (y) stock distributed (or deemed distributed) thereby is "qualified property" with respect to which no gain is recognized pursuant to Section 361(c) or Section 355(c)(2) of the Code, as applicable (and neither Section 355(d) nor Section 355(e) applies to treat such property as other than "qualified property" for such purposes) and (z) as a transaction in which no income or gain is recognized by any member of the Resideo Group, any member of the ADI Group or the holders of Resideo Capital Stock pursuant to Sections 355, 361 and/or 1032 of the Code, other than, in the case of Resideo, ADI SpinCo and the members of their respective Groups (as relevant), income or gain recognized as a result of intercompany items or excess loss accounts taken into account pursuant to the Treasury Regulations promulgated pursuant to Section 1502 of the Code.

"<u>Tax Treatment of the Transactions</u>" shall mean the Tax treatment of the Transactions (for the avoidance of doubt, other than the Tax treatment of the Transactions described in the definition of "Tax-Free Status of the Transactions") set forth on <u>Schedule 1.1(c)</u>.

"<u>Transactions</u>" shall mean the Separation (including any transactions undertaken pursuant to the Separation Plan, the Reorganization and the Contribution), the Distribution, the Internal Distributions, any transactions related to any of the foregoing and any transaction described on <u>Schedule 1.1(c)</u>.

"<u>Transition Services Agreement</u>" shall have the meaning set forth in the Separation Agreement.

"<u>Treasury Regulations</u>" shall mean the regulations promulgated from time to time under the Code as in effect for the relevant tax period.

"<u>Unqualified Tax Opinion</u>" shall mean a "will" opinion, without substantive qualifications, of a Tax Advisor, which Tax Advisor is reasonably acceptable to Resideo, on which Resideo may rely to the effect that a transaction will not (i) affect the Tax-Free Status of the Transactions or (ii) adversely affect any of the conclusions set forth in any Tax Opinion or IRS Ruling regarding the Tax-Free Status of the Transactions. Any such tax opinion must assume that the Contribution and Distribution and each Internal Distribution would have qualified for the Tax-Free Status of the Transactions if the transaction in question did not occur.

**<u>Article II</u>**

**Payments and Tax Refunds**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Taxes Relating to Joint Returns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Resideo shall pay and be responsible for any and all Federal Taxes, State Taxes and Foreign Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) for all Pre-Distribution Periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ADI SpinCo shall pay and be responsible for any and all Federal Taxes, State Taxes and Foreign Taxes due with respect to or required to be reported on any Joint Return (including any increase in such Tax as a result of a Final Determination) which Taxes are attributable to the ADI Business for all Post-Distribution Periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Taxes Relating to Separate Returns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Resideo shall pay and be responsible for any and all Federal Taxes, State Taxes and Foreign Taxes due with respect to or required to be reported on any Resideo Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ADI SpinCo shall pay and be responsible for any and all Federal Taxes, State Taxes and Foreign Taxes due with respect to or required to be reported on any ADI Separate Return (including any increase in such Tax as a result of a Final Determination) for all Tax periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Certain Indemnified Taxes; Integration; Satisfaction</u>. For the avoidance of doubt, notwithstanding the provisions set forth in <u>Sections 2.1</u> and <u>2.2</u>, nothing in this <u>Article II</u> shall be interpreted as limiting in any way the Parties' indemnification obligations pursuant to <u>Section 5.1(a)(ii)</u> through <u>(iv)</u>, <u>Section 5.1(b)(ii)</u> through <u>(b)(v)</u> (taking into account <u>Section 5.1(c)</u> and <u>Section 5.1(d)</u>) or <u>Section 5.1(e)</u> (the "<u>Specific Indemnities</u>"), and, in the case of any conflict between the allocation of liability for Taxes set forth in this <u>Article II</u> and the Specific Indemnities, the Specific Indemnities shall govern (and the conflicting liability allocations set forth in this <u>Article II</u> shall not apply). Without prejudice or limitation to any of the indemnification or liability allocation provisions contained in this Agreement, the Parties acknowledge and agree that, on the basis of all facts and circumstances as of the date hereof and through the Effective Time, (i) ADI SpinCo shall, and is expected to, satisfy any liability or other obligation (or portion thereof) it assumes pursuant to this Agreement, whether or not Resideo (or another member of the Resideo Group) has been legally relieved of such liability, and (ii) Resideo shall, and is expected to, satisfy any liability or other obligation (or portion thereof) it assumes pursuant to this Agreement, whether or not ADI SpinCo (or another member of the ADI Group) has been legally relieved of such liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Determination of Tax Attributable to the ADI Business</u>. For purposes of this Agreement (except as expressly provided otherwise herein), the amount of Federal Taxes, State Taxes and Foreign Taxes, or any items thereof, attributable to the ADI Business shall be determined by Resideo in its reasonable discretion and, to the extent relevant, in a manner consistent with Past Practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Allocation of Employment Taxes</u>. Liability for Employment Taxes and the allocation of any Employment Tax Credit shall be determined pursuant to the Employee Matters Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Tax Refunds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section 2.5</u>, <u>Section 2.6(b)</u>, <u>Section 2.7</u> and <u>Section 2.8</u>, Resideo shall be entitled to all Refunds related to Taxes the liability for which is allocated to Resideo pursuant to this Agreement and ADI SpinCo shall be entitled to all Refunds related to Taxes the liability for which is allocated to ADI SpinCo pursuant to this Agreement, in each case, after giving effect to any indemnification obligations under <u>Article V</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ADI SpinCo shall pay to Resideo any Refund received by ADI SpinCo or any member of the ADI Group that is allocable to Resideo pursuant to <u>Section 2.6(a)</u>, net of any costs and expenses incurred in connection with, and any Taxes imposed by any Taxing Authority on, related to, or attributable to, the receipt, accrual or realization of such Refund (including any Taxes imposed by way of withholding or offset), no later than five (5) Business Days after the receipt of such Refund. Resideo shall pay to ADI SpinCo any Refund received by Resideo or any member of the Resideo Group that is allocable to ADI SpinCo pursuant to <u>Section 2.6(a)</u>, net of any costs and expenses incurred in connection with, and any Taxes imposed by any Taxing Authority on, related to, or attributable to, the receipt, accrual or realization of such Refund (including any Taxes imposed by way of withholding or offset), no later than five (5) Business Days after the receipt of such Refund. For purposes of this <u>Section 2.6(b)</u>, any Refund that arises as a result of an offset, credit, or other similar benefit in respect of Taxes other than a receipt of cash shall be deemed to be received on the earlier of (i) the date on which a Tax Return is filed claiming such offset, credit, or other similar benefit and (ii) the date on which payment of the Tax which would have otherwise been paid absent such offset, credit, or other similar benefit is due (determined without taking into account any applicable extensions).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Tax Benefits</u>. Without prejudice to (or duplication of any amounts payable pursuant to) <u>Section 2.8</u>, if Resideo determines, in its reasonable discretion, that: (i) one Party bears a Tax pursuant to this Agreement or under applicable Law and (ii) the other Party is entitled to a Tax Benefit relating to such Tax, then the Party entitled to the Tax Benefit shall pay to the Party responsible for such Tax the amount of the Tax Benefit, net of any costs and expenses incurred in connection with, and any Taxes imposed by any Taxing Authority on, related to, or attributable to, the receipt or realization of such Tax Benefit (including any Taxes imposed by way of withholding or offset), in each case, as determined by Resideo in its reasonable discretion, <u>provided</u>, <u>however</u>, that any obligation under this <u>Section 2.7</u> shall only arise (x) in the event Resideo is subject to an indemnity obligation described in <u>Section 5.1(a)(iii)</u> hereof or (y) in respect of an adjustment to Taxes resulting from a Tax Contest described in <u>Article VI</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Certain Carrybacks</u>. In the event that any member of the ADI Group is required by applicable Law to carry back an ADI Carryback to a Tax Return described in <u>Section 3.1</u> for a Pre-Distribution Period, then (i) no payment with respect to such a carryback shall be due to any member of the ADI Group from any member of the Resideo Group and (ii) if any member of the ADI Group receives a Tax Benefit in connection with such ADI Carryback, ADI SpinCo shall promptly pay to Resideo the full amount of such Tax Benefit, net of any costs and expenses incurred in connection with, and any Taxes imposed by any Taxing Authority on, related to, or attributable to, the receipt or realization of such Tax Benefit (including any Taxes imposed by way of withholding or offset), as determined by Resideo in its reasonable discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>Tax Adjustments</u>. If Resideo or ADI SpinCo (or one of their respective Affiliates) pays to the other Party any amount pursuant to <u>Section 2.5</u>, <u>Section 2.6</u>, <u>Section 2.7</u> or <u>Section 2.8</u>, in respect of a Refund or Tax Benefit and all or a portion of such Refund or Tax Benefit is subsequently disallowed or adjusted by a Taxing Authority or in a Tax Contest, such disallowance or adjustment shall be allocated to the Resideo Group and the ADI Group in the same manner in which such Refund or Tax Benefit was allocated pursuant to <u>Section 2.5</u>, <u>Section 2.6</u>, <u>Section 2.7</u> or <u>Section 2.8</u>, as applicable, and an appropriate adjusting payment shall be promptly made (including in respect of any interest paid or imposed by any Taxing Authority) to reflect such disallowance or adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>Prior Agreements</u>. Except as set forth in this Agreement and in consideration of the mutual indemnities and other obligations of this Agreement, any and all prior Tax sharing or allocation agreements, arrangements or practices between any member of the Resideo Group and any member of the ADI Group shall be terminated with respect to the ADI Group and the Resideo Group as of the Distribution Date. No member of either the ADI Group or the Resideo Group shall have any continuing rights or obligations under any such agreement, arrangement or practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <u>Resideo and ADI SpinCo Income Tax Deductions in Respect of Certain Equity Awards and Incentive Compensation</u>. To the extent permitted by applicable Law, (i) in the case of an active or former employee, solely the member of the Group for which the relevant individual is employed or, if such individual is not employed by a member of the Group, was most recently employed at the time of the vesting, exercise, disqualifying disposition, payment or other relevant taxable event, as appropriate, in respect of the equity awards and other incentive compensation described in <u>Article IV</u> or <u>Article V</u> of the Employee Matters Agreement shall be entitled to claim, in a Post-Distribution Period, any income Tax deduction in respect of such equity awards and other incentive compensation on its Tax Return associated with such event; and (ii) in the case of a non-employee director, any income Tax deduction in respect of such equity awards and other incentive compensation shall be claimed by the Party for which the director serves as a director following the Distribution (<u>provided</u> that, in the case of any non-employee director who is to be assigned to both Resideo and ADI SpinCo, each Party shall be entitled to the deductions arising in respect of its own stock or equity awards).

**<u>Article III</u>**

**Preparation and Filing of Tax Returns**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Resideo's Responsibility</u>. Resideo shall prepare and file when due (taking into account any applicable extensions), or shall cause to be prepared and filed, (a) all Joint Returns, (b) all Tax Returns pursuant to which there is a claim to group relief by one or more members of the ADI Group in respect of losses generated by one or more members of the Resideo Group, and (c) all Resideo Separate Returns, including any amendments to such Tax Returns. Notwithstanding any provision in this Agreement to the contrary, with respect to any Joint Return, to the extent that any expenses related to a previously filed Joint Return for similar Taxes were customarily paid by a member of the ADI Group, as determined by Resideo in its reasonable discretion, then any similar expenses shall be paid and borne by ADI SpinCo after the Distribution, including, for the avoidance of doubt, any expenses related to the preparation of transfer pricing documentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>ADI SpinCo's Responsibility</u>. ADI SpinCo shall prepare and file when due (taking into account any applicable extensions), or shall cause to be prepared and filed, all Tax Returns, including any amended Tax Returns, required to be filed by or with respect to members of the ADI Group other than those Tax Returns which Resideo is required to prepare and file under <u>Section 3.1</u>. The Tax Returns required to be prepared and filed by ADI SpinCo under this <u>Section 3.2</u> shall include any ADI Separate Returns and any amended ADI Separate Returns. For the avoidance of doubt, ADI SpinCo shall prepare any transfer pricing documentation required to be prepared with respect to a Tax Return described in this <u>Section 3.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Right to Review Tax Returns</u>.

The Responsible Company for any material Tax Return shall make such Tax Return (or the relevant portions thereof) available for review by the other Party (the "<u>Reviewing Company</u>"), if requested, to the extent that the requesting Party (i) is or would reasonably be expected to be liable for Taxes reflected on such Tax Return, (ii) is or would reasonably be expected to be liable for any additional Taxes owing as a result of adjustments to the amount of such Taxes reported on such Tax Return, or (iii) has or would reasonably be expected to have a claim for Tax Benefits under this Agreement in respect of items reflected on such Tax Return. The Responsible Company shall use reasonable efforts to make any such Tax Return (or the relevant portions thereof) available for review as required under this paragraph sufficiently in advance of the due date for the filing of such Tax Return (taking into account extensions) to provide the Reviewing Company with a meaningful opportunity to review and comment on such Tax Return (which, in the case of any Tax Return with respect to income Taxes, shall be no later than thirty (30) days prior to the due date for such Tax Return (taking into account extensions)). The Responsible Company shall consider in good faith any reasonable comments provided by the Reviewing Company reasonably in advance of the due date for such Tax Return (taking into account extensions) (which, in the case of any Tax Return with respect to income Taxes, shall be no later than fifteen (15) days following the Reviewing Company's receipt of the draft of such return from the Responsible Company). The Parties shall attempt in good faith to resolve any material disagreement arising out of the review of such Tax Return and, failing such resolution, any material disagreement shall be resolved in accordance with the provisions of <u>Article IX</u> as promptly as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Cooperation</u>. The Parties shall provide, and shall cause their Affiliates to provide, assistance and cooperation to one another in accordance with <u>Article VII</u> with respect to the preparation and filing of Tax Returns, including providing information required to be provided under <u>Article VIII</u>. Notwithstanding anything to the contrary in this Agreement, Resideo shall not be required to disclose to ADI SpinCo any consolidated, combined, unitary, or other similar Joint Return of which a member of the Resideo Group is the common parent or any information related to such a Joint Return other than information relating solely to the ADI Group; <u>provided</u> that Resideo shall provide such additional information that is reasonably required in order for ADI SpinCo to determine Taxes attributable to the ADI Business. If an amended Separate Return for State Taxes for which ADI SpinCo is the Responsible Company is required to be filed as a result of an amendment made to a Joint Return for Federal Income Tax pursuant to an audit adjustment, then the Parties shall cooperate to ensure that such amended Separate Return can be prepared and filed in a manner that preserves confidential information including through the use of third-party preparers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Tax Reporting Practices</u>. Except as provided in <u>Section 3.6</u>, with respect to any Tax Return for any taxable period that begins on or before the second anniversary of the Distribution Date with respect to which ADI SpinCo is the Responsible Company, such Tax Return shall be prepared in a manner (i) consistent with past practices, accounting methods, elections and conventions ("<u>Past Practices</u>") used with respect to the Tax Returns in question (unless there is no Reasonable Basis for the use of such Past Practices), and to the extent any items are not covered by Past Practices (or in the event that there is no Reasonable Basis for the use of such Past Practices), in accordance with reasonable Tax accounting practices selected by ADI SpinCo that are consistent with Resideo's accounting practices with respect to similar Tax Items and otherwise acceptable to Resideo, in Resideo's reasonable discretion; and (ii) that, to the extent consistent with clause (i), minimizes the overall amount of Taxes due and payable on such Tax Return for all of the Parties by cooperating in making such elections or applications for group or other relief or allowances available in the taxing jurisdiction in which such Tax Return is filed. Notwithstanding anything herein to the contrary (but subject to <u>Section 3.6</u>), ADI SpinCo shall not, and shall not cause or permit its Affiliates to, (i) take any action or Tax position inconsistent with (x) the assumptions made (including with respect to any Tax Item) in determining all estimated or advance payments of Taxes on or prior to the Distribution Date or (y) any position taken on any Tax Return with respect to which Resideo is the Responsible Company with respect to similar Tax Items or (ii) without Resideo's prior written consent, make a change in any of its methods of accounting for Tax purposes until all applicable statutes of limitations for all Pre-Distribution Periods have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <u>Reporting of Separation</u>. The Tax treatment of any step or portion of the Transactions and any Tax Item related thereto shall be reported on each applicable Tax Return consistently with the Tax-Free Status of the Transactions and the Tax Treatment of the Transactions, taking into account the jurisdiction in which such Tax Returns are filed; <u>provided</u> that, notwithstanding anything to the contrary herein, if Resideo determines that there is no Reasonable Basis for such Tax treatment, then Resideo shall notify ADI SpinCo no later than twenty (20) Business Days prior to filing the relevant Tax Return and the Parties shall attempt in good faith to agree on the manner in which the relevant step or portion of the Transactions or related Tax Item shall be reported (with any disagreements resolved in accordance with the provisions of <u>Article IX</u> as promptly as practicable); <u>provided</u>, <u>further</u>, that in the case of any step or portion of the Transactions or any Tax Item related thereto that is not covered by the Tax-Free Status of the Transactions or the Tax Treatment of the Transactions, such step or portion of the Transactions and any Tax Item related thereto shall be treated and reported as determined by Resideo in its reasonable discretion. If Resideo determines, in its reasonable discretion, that a protective election under Section 336(e) of the Code shall be made with respect to the Distribution, ADI SpinCo agrees to take any such action that is necessary to effect such election, including any corresponding election with respect to any of its Subsidiaries, as determined by Resideo. If such a protective election is made, this Agreement shall be amended in such a manner, if any, as is determined by Resideo in its reasonable discretion (including by requiring that, in the event the Transactions fail to qualify for the Tax-Free Status of the Transactions or the Tax Treatment of the Transactions, ADI SpinCo shall pay over to Resideo any Tax Benefits realized by ADI SpinCo or any member of the ADI Group arising from the step-up in Tax basis resulting from such election).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 <u>Distribution Straddle Period Tax Allocation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the case of any Straddle Period, Tax Items shall be apportioned between Pre-Distribution Periods and Post-Distribution Periods in accordance with the principles of Treasury Regulations Section 1.1502-76(b) as interpreted and applied by Resideo in its sole discretion. With respect to the Joint Return for the Tax period that includes the Distribution, Resideo may determine in its sole discretion whether to make a ratable election under Treasury Regulations Section 1.1502-76(b)(2)(ii) with respect to ADI SpinCo or any other relevant member of the ADI Group. ADI SpinCo shall, and shall cause each member of the ADI Group to, take all actions necessary to give effect to such election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In determining the apportionment of Tax Items between Pre-Distribution Periods and Post-Distribution Periods, any Tax Items relating to the Transactions shall be treated as extraordinary items described in Treasury Regulations Section 1.1502-76(b)(2)(ii)(C) and shall (to the extent arising on or prior to the Distribution Date) be allocated to the Pre-Distribution Period, and any Taxes related to such items shall be treated under Treasury Regulations Section 1.1502-76(b)(2)(iv) as relating to such extraordinary item and shall (to the extent arising on or prior to the Distribution Date) be allocated to the Pre-Distribution Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 <u>Payment of Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With respect to any Tax Return required to be filed pursuant to this Agreement, the Responsible Company shall remit or cause to be remitted to the applicable Taxing Authority in a timely manner any Taxes due in respect of any such Tax Return. In the case of any adjustment pursuant to a Final Determination with respect to any Tax Return, the Responsible Company with respect to such Tax Return shall pay to the applicable Taxing Authority when due (taking into account any automatic or validly elected extensions, deferrals, or postponements) any additional Tax due with respect to such Tax Return required to be paid as a result of such adjustment pursuant to a Final Determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of any Tax Return for which the Party that is not the Responsible Company is obligated pursuant to this Agreement to pay all or a portion of the Taxes reported as due on such Tax Return, the Responsible Company shall notify the other Party, in writing, of its obligation to pay such Taxes and, in reasonably sufficient detail, its calculation of the amount due by such other Party and the Party receiving such notice shall pay such amount to the Responsible Company upon the later of five (5) Business Days prior to the date on which such payment is due and fifteen (15) Business Days after the receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to any estimated Taxes, the Party that is or will be the Responsible Company with respect to any Tax Return that will reflect (or otherwise give credit for) such estimated Taxes shall remit or cause to be remitted to the applicable Taxing Authority in a timely manner any estimated Taxes due. In the case of any estimated Taxes for which the Party that is not the Responsible Company is obligated pursuant to this Agreement to pay all or a portion of the Taxes that will be reported as due on any Tax Return that will reflect (or otherwise give credit for) such estimated Taxes, the Responsible Company shall notify the other Party, in writing, of its obligation to pay such estimated Taxes and, in reasonably sufficient detail, its calculation of the amount due by such other Party and the Party receiving such notice shall pay such amount to the Responsible Company upon the later of five (5) Business Days prior to the date on which such payment is due and fifteen (15) Business Days after the receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary herein (including, for the avoidance of doubt, <u>Sections 3.8(a)</u>, <u>3.8(b)</u> and <u>3.8(c)</u>), any amount to be paid by ADI SpinCo in respect of any liability or obligation of Resideo for Taxes that is assumed by ADI SpinCo, or otherwise treated as a liability or obligation of Resideo that is assumed by ADI SpinCo within the meaning of Section 357(d) of the Code, pursuant to this Agreement, in each case, as determined by Resideo in its sole discretion, shall be paid, at Resideo's option and in its sole discretion, in the manner set forth in Section 9.11(b) of the Separation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 <u>Amended Returns and Carrybacks</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ADI SpinCo shall not, and shall not permit any member of the ADI Group to, file or allow to be filed any request for an Adjustment for any Pre-Distribution Period without the prior written consent of Resideo, such consent to be exercised in Resideo's reasonable discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ADI SpinCo shall, and shall cause each member of the ADI Group to, make any available elections to waive the right to carry back any ADI Carryback arising in a Post-Distribution Period to a Pre-Distribution Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ADI SpinCo shall not, and shall cause each member of the ADI Group not to, without the prior written consent of Resideo, make any affirmative election to carry back any ADI Carryback arising in a Post-Distribution Period to a Pre-Distribution Period, such consent to be exercised in Resideo's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Receipt of consent by ADI SpinCo or a member of the ADI Group from Resideo pursuant to the provisions of this <u>Section 3.9</u> shall in no way limit or modify ADI SpinCo's indemnification obligations pursuant to this Agreement (including <u>Article V</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 <u>Tax Attributes</u>. Resideo shall in its reasonable discretion advise ADI SpinCo in writing of the amount (if any) of any Tax Attributes, which Resideo determines, in its good faith discretion, shall be allocated or apportioned to the ADI Group under applicable Law. ADI SpinCo and all members of the ADI Group shall prepare all Tax Returns in accordance with such written notice. ADI SpinCo agrees that it shall not dispute Resideo's reasonable determination of Tax Attributes. For the avoidance of doubt, Resideo shall not be required in order to comply with this <u>Section 3.10</u> or otherwise to create or cause to be created any books and records or reports or other documents based thereon (including, without limitation, "earnings & profits studies," "basis studies" or similar determinations) that it does not maintain or prepare in the ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 <u>Section 245A Election</u>. With respect to any member of the ADI Group that is a "controlled foreign corporation" within the meaning of Section 957(a) of the Code immediately prior to the Distribution, Resideo may, in its sole discretion, determine that an election under Treasury Regulations Section 1.245A-5(e)(3)(i) (or any successor provision of Tax Law that allows a closing of the books election) shall be made to close such entity's taxable year for Federal Income Tax purposes as of the Effective Time. If Resideo determines that such election shall be made with respect to any such member of the ADI Group, ADI SpinCo shall, and shall cause its Affiliates to, cooperate with Resideo and its Affiliates to make and give effect to such election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 <u>Information for Joint Returns and Resideo Separate Returns</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ADI SpinCo shall promptly, and in any event no later than thirty (30) days following the close of each fiscal quarter (or, with respect to information requested less than ten (10) days prior to the close of the relevant fiscal quarter, as promptly as reasonably practicable), provide Resideo with all information with respect to ADI SpinCo, the members of the ADI Group, and their respective assets and operations as requested by Resideo in order to enable Resideo to timely prepare and file all Tax Returns for which Resideo is the Responsible Company and to timely pay any and all Taxes (including estimated Taxes) payable with respect to such Tax Returns. Where applicable, such information shall be provided in a manner consistent with Past Practices of Resideo and its Subsidiaries prior to the Distribution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Resideo shall promptly, and in any event no later than thirty (30) days following the close of each fiscal quarter (or, with respect to information requested less than ten (10) days prior to the close of the relevant fiscal quarter, as promptly as reasonably practicable), provide ADI SpinCo with all information with respect to Resideo, the members of the Resideo Group, and their respective assets and operations as requested by ADI SpinCo in order to enable ADI SpinCo to timely prepare and file all Tax Returns for which ADI SpinCo is the Responsible Company and to timely pay any and all Taxes (including estimated Taxes) payable with respect to such Tax Returns. Where applicable, such information shall be provided in a manner consistent with Past Practices of ADI SpinCo and its Subsidiaries prior to the Distribution.

For the avoidance of doubt, a Party's failure to timely provide information required to be provided under this <u>Section 3.12</u> shall be subject to the provisions set forth in <u>Section 7.2</u>.

**<u>Article IV</u>**

**Tax-Free Status of the Distribution**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Resideo, on behalf of itself and all other members of the Resideo Group, hereby represents and warrants that (i) it has examined the IRS Ruling Request, the IRS Ruling (if any), the Tax Opinion(s), the Tax Representation Letters and any other materials delivered or deliverable in connection with the issuance of any IRS Ruling and the rendering of any Tax Opinion, in each case, as they exist as of the date hereof (all documents and materials described in this clause (i), including, for the avoidance of doubt, the IRS Ruling Request, the IRS Ruling (if any), the Tax Opinion and the Tax Representation Letters, collectively, the "<u>Tax Materials</u>") and (ii) the facts presented and statements and representations made therein, to the extent descriptive of or otherwise relating to Resideo or any member of the Resideo Group or the Resideo Retained Business, were or will be, at the time presented or represented and from such time until and including the Distribution Date, true, correct, and complete in all material respects. Resideo, on behalf of itself and all other members of the Resideo Group, hereby confirms and agrees to comply with any and all covenants and agreements in the Tax Materials applicable to Resideo or any member of the Resideo Group or the Resideo Retained Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ADI SpinCo, on behalf of itself and all other members of the ADI Group, hereby represents and warrants that (i) it has examined the Tax Materials and (ii) the facts presented and statements and representations made therein, to the extent descriptive of or otherwise relating to ADI SpinCo or any member of the ADI Group or the ADI Business, were or will be, at the time presented or represented and from such time until and including the Distribution Date, true, correct, and complete in all material respects. ADI SpinCo, on behalf of itself and all other members of the ADI Group, hereby confirms and agrees to comply with any and all covenants and agreements in the Tax Materials applicable to ADI SpinCo or any member of the ADI Group or the ADI Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ADI SpinCo, on behalf of itself and all other members of the ADI Group, hereby represents and warrants that during the two-year period ending on the date of any Internal Distribution or the Distribution Date, there was no "agreement, understanding, arrangement, substantial negotiations or discussions" (as such terms are defined in Treasury Regulations Section 1.355-7(h)) by any one or more officers or directors of ADI SpinCo or any member of the ADI Group or by any other person or persons with the implicit or explicit permission of one or more of such officers or directors regarding an acquisition of all or a significant portion of the ADI SpinCo Capital Stock (or any predecessor of ADI SpinCo) or the Capital Stock of ADEMCO III Ltd or any other member of the ADI Group which underwent an Internal Distribution; <u>provided</u> that no representation or warranty is made regarding the absence of any "agreement, understanding, arrangement, substantial negotiations" or "discussions" (as such terms are defined in Treasury Regulations Section 1.355-7(h)) by any one or more present or former officers or directors of any member of the Resideo Group (or by any other person or persons with the implicit or explicit permission of one or more of such officers or directors) who are not officers or directors of any member of the ADI Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each of Resideo, on behalf of itself and all other members of the Resideo Group, and ADI SpinCo, on behalf of itself and all other members of the ADI Group, represents and warrants that it knows of no fact (after due inquiry) that may cause the Tax treatment of the Transactions to be other than the Tax-Free Status of the Transactions and the Tax Treatment of the Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each of Resideo, on behalf of itself and all other members of the Resideo Group, and ADI SpinCo, on behalf of itself and all other members of the ADI Group, represents and warrants that it has no plan or intent to take any action, or fail to take any action (or to cause or permit any member of its Group to take or fail to take any action) which is inconsistent with any facts presented or statements or representations made in the Tax Materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Restrictions Relating to the Distribution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ADI SpinCo, on behalf of itself and all other members of the ADI Group, hereby covenants and agrees that no member of the ADI Group will take, fail to take, or permit to be taken: (i) any action where such action or failure to act would be inconsistent with or cause to be untrue any statement, information, covenant or representation in the Tax Materials or would reasonably be expected to result in a failure to preserve the Tax-Free Status of the Transactions or the Tax Treatment of the Transactions or (ii) any action which constitutes an ADI Disqualifying Action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the Restricted Period, ADI SpinCo:

&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) shall continue and shall cause each member of the ADI Group to continue the active conduct of the ADI Active Trade or Business for purposes of Section 355(b)(2) of the Code, taking into account Section 355(b)(3) of the Code, as conducted immediately prior to the Distribution;

&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) shall not voluntarily dissolve or liquidate (wholly or partially) itself or, if such action could or could be expected to jeopardize or impede the Tax-Free Status of the Transactions, any of its Affiliates (including, in each case, any action that is a liquidation for U.S. federal income Tax purposes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall not (1) enter into any Proposed Acquisition Transaction or, to the extent ADI SpinCo has the right to prohibit any Proposed Acquisition Transaction, permit any Proposed Acquisition Transaction to occur, (2) redeem or otherwise repurchase (directly or through an Affiliate) any ADI SpinCo Capital Stock except to the extent such repurchases are in connection with the net exercise of stock options issued to a person for the performance of services, (3) amend its certificate of incorporation (or other organizational documents), or take any other action, whether through a stockholder vote or otherwise, affecting the relative voting rights of ADI SpinCo Capital Stock (including through the conversion of any capital stock into another class of capital stock, other than a conversion of the ADI SpinCo Preferred Stock pursuant to its terms), (4) merge, amalgamate or consolidate with any other Person or (5) take any other action or actions (including any action or transaction that would be reasonably likely to be inconsistent with any representation made in the Tax Materials) which in the aggregate would, when combined with any other direct or indirect changes in ownership of ADI SpinCo Capital Stock pertinent for purposes of Section 355(e) of the Code, have the effect of causing or permitting one or more Persons (whether or not acting in concert) to acquire directly or indirectly stock representing a fifty percent (50%) or greater interest in ADI SpinCo or would reasonably be expected to result in a failure to preserve the Tax-Free Status of the Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) shall not and shall not permit any member of the ADI Group, in a single transaction or a series of transactions, to sell, transfer, or otherwise dispose of or agree to sell, transfer or otherwise dispose (including in any transaction treated for U.S. federal income Tax purposes as a sale, transfer or disposition) of assets (including, any shares of capital stock of a Subsidiary) that, in the aggregate, constitute more than twenty percent (20%) of the gross assets of ADI SpinCo or the consolidated gross assets of the ADI Group. The foregoing sentence shall not apply to (1) sales, transfers, or dispositions of inventory in the ordinary course of business, (2) any cash paid to acquire assets from an unrelated Person in an arm's-length transaction, (3) any assets transferred to a Person that is disregarded as an entity separate from the transferor for U.S. federal income Tax purposes or (4) any mandatory or optional repayment (or pre-payment) of any indebtedness of ADI SpinCo or any member of the ADI Group. The percentages of gross assets or consolidated gross assets of ADI SpinCo or the ADI Group, as the case may be, sold, transferred, or otherwise disposed of, shall be based on the fair market value of the gross assets of ADI SpinCo and the members of the ADI Group as of the Distribution Date. For purposes of this <u>Section 4.2(b)(iv)</u>, a merger of ADI SpinCo or one of its Subsidiaries with and into any Person that is not a wholly owned Subsidiary of ADI SpinCo shall constitute a disposition of all of the assets of ADI SpinCo or such Subsidiary; and

&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) shall not permit any holder of ADI SpinCo Capital Stock to become a "controlling shareholder" within the meaning of Treasury Regulations Section 1.355-7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without the prior written consent of Resideo (such consent to be provided in Resideo's sole discretion), ADI SpinCo shall not, and shall not cause or permit any member of the ADI Group to, waive or amend any provisions, obligations or restrictions under the CD&R Agreements in such a manner that would, as determined in Resideo's sole discretion, jeopardize or impede the Tax-Free Status of the Transactions or the Tax Treatment of the Transactions.

Any consent provided by Resideo in connection with this <u>Section 4.2(c)</u> shall in no way limit or modify ADI SpinCo's indemnification obligations pursuant to <u>Article V</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If ADI SpinCo proposes to enter into any Section 4.2(d) Acquisition Transaction or, to the extent ADI has the right to prohibit any Section 4.2(d) Acquisition Transaction, proposes to permit any Section 4.2(d) Acquisition Transaction to occur, in each case, during the Restricted Period, ADI SpinCo shall provide Resideo, no later than ten (10) days prior to the signing of any written agreement with respect to the Section 4.2(d) Acquisition Transaction, with a written description of such transaction (including the type and amount of ADI SpinCo Capital Stock to be issued in such transaction) and a certificate of the Chief Financial Officer of ADI SpinCo to the effect that the Section 4.2(d) Acquisition Transaction is not a Proposed Acquisition Transaction or any other transaction to which the requirements of <u>Section 4.2(b)</u> apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding the restrictions imposed by <u>Section 4.2(a)</u>, <u>(b)</u> and <u>(c)</u>, ADI SpinCo or a member of the ADI Group may take any of the actions or transactions described therein (in the case of <u>Section 4.2(a)</u>, other than any actions or transactions described therein relating to the Tax Treatment of the Transactions) if ADI SpinCo either (i) obtains an Unqualified Tax Opinion in form and substance reasonably satisfactory to Resideo or (ii) obtains the prior written consent of Resideo waiving the requirement that ADI SpinCo obtain an Unqualified Tax Opinion, such waiver to be provided in Resideo's sole discretion. Resideo's evaluation of an Unqualified Tax Opinion may consider, among other factors, the appropriateness of any underlying assumptions, representations, and covenants made in connection with such opinion. ADI SpinCo shall bear all costs and expenses of securing any such Unqualified Tax Opinion and shall reimburse Resideo for all reasonable out-of-pocket expenses that Resideo or any of its Affiliates may incur in good faith in seeking to obtain or evaluate any such Unqualified Tax Opinion. Neither the delivery of an Unqualified Tax Opinion nor Resideo's waiver of ADI SpinCo's obligation to deliver an Unqualified Tax Opinion shall in any way limit or modify ADI SpinCo's indemnification obligations pursuant to <u>Article V</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) ADI SpinCo agrees that Resideo shall have the sole and exclusive control over the process of obtaining any private letter ruling with respect to the Transactions and any related transaction, and only Resideo shall be entitled to apply for any such private letter ruling (whether prior to or following the Distribution). Resideo shall have the right to obtain a private letter ruling from the IRS (and/or any other Taxing Authority) (and/or if applicable, any supplemental private letter ruling) at any time in its sole discretion. If Resideo determines to obtain a private letter ruling or supplemental private letter ruling, ADI SpinCo shall (and shall cause its Affiliates to) cooperate with Resideo and take any and all actions reasonably requested by Resideo in connection with obtaining such private letter ruling or supplemental private letter ruling (including, without limitation, by making any representation or covenant or providing any materials or information requested by the IRS or other applicable Taxing Authority; <u>provided</u> that ADI SpinCo shall not be required to make (or cause any of its Affiliates to make) any representation or covenant that is inconsistent with historical facts or as to future matters or events over which it has no control). After the Distribution, Resideo and ADI SpinCo shall each bear its own costs and expenses incurred in connection with obtaining any such private letter ruling or supplemental private letter ruling.

**<u>Article V</u>**

**Indemnity Obligations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Indemnity Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Resideo shall indemnify and hold harmless ADI SpinCo from and against, and will reimburse ADI SpinCo for, (i) any and all Taxes allocated to Resideo pursuant to <u>Article II</u>, after giving effect to <u>Section 5.1(b)(v)</u>, (ii) any and all Taxes and Tax-Related Losses arising out of, based upon, or relating or attributable to any breach of or inaccuracy in, or failure to perform, as applicable, any representation, covenant, or obligation of any member of the Resideo Group pursuant to this Agreement, (iii) any and all Distribution Taxes and Tax-Related Losses to the extent such amounts are not attributable to ADI SpinCo or the ADI Group, as set forth in <u>Section 5.1(b)</u> and (iv) any and all Resideo Pre-Distribution Period Taxes and all Tax-Related Losses arising out of, based upon, or attributable to Resideo Pre-Distribution Period Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without regard to whether an Unqualified Tax Opinion may have been provided, the existence of any private letter ruling or whether any action is permitted or consented to hereunder, and notwithstanding anything else to the contrary contained herein, ADI SpinCo shall indemnify and hold harmless Resideo from and against, and will reimburse Resideo for, (i) any and all Taxes allocated to ADI SpinCo pursuant to <u>Article II</u>, after giving effect to <u>Section 5.1(a)(iv)</u>, (ii) any and all Taxes and Tax-Related Losses arising out of, based upon, or relating or attributable to any breach of or inaccuracy in, or failure to perform, as applicable, any representation, covenant, or obligation of any member of the ADI Group pursuant to this Agreement, (iii) any and all Distribution Taxes and Tax-Related Losses attributable to an ADI Disqualifying Action (regardless of whether the conditions set forth in <u>Section 4.2(e)</u> are satisfied and regardless of any consent provided by Resideo), (iv) any and all Distribution Taxes and Tax-Related Losses arising out of, based upon, or relating or attributable to (A) the acquisition (other than pursuant to the Contribution and the Distribution) of all or a portion of the ADI SpinCo Capital Stock and/or ADI SpinCo's or its Subsidiaries' stock or assets by any means whatsoever by any Person, (B) any "agreement, understanding, arrangement, substantial negotiations, or discussions" (as such terms are defined in Treasury Regulations Section 1.355-7(h)) by any one or more officers or directors of any member of the ADI Group or by any other person or persons with the implicit or explicit permission of one or more such officers or directors regarding transactions or events that cause the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire, directly or indirectly, ADI SpinCo Capital Stock representing a fifty percent (50%) or greater interest in ADI SpinCo, or (C) any action or failure to act by ADI SpinCo or any other member of the ADI Group after the Distribution (including, without limitation, any amendment to ADI SpinCo's certificate of incorporation (or other organizational documents), whether through a stockholder vote or otherwise) affecting the voting rights of ADI SpinCo stock (including, without limitation, but other than a conversion of the ADI SpinCo Preferred Stock pursuant to its terms, through the conversion of one class of ADI SpinCo Capital Stock into another class of ADI SpinCo Capital Stock), and (v) any and all ADI Pre-Distribution Period Taxes and all Tax-Related Losses arising out of, based upon, or attributable to ADI Pre-Distribution Period Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent that any Tax or Tax-Related Loss is subject to indemnity pursuant to both <u>Sections 5.1(a)(ii)</u> through <u>(iv)</u> and <u>5.1(b)(ii)</u> through <u>(b)(v)</u>, responsibility for such Tax or Tax-Related Loss shall be shared by Resideo and ADI SpinCo according to relative fault.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything else to the contrary contained in this Agreement, Resideo and ADI SpinCo, as applicable, shall not have any right to obtain indemnification payments under this Agreement unless the aggregate amounts received by such Party as indemnification payments hereunder would exceed $5,000,000 in the aggregate (the "<u>Indemnification Threshold</u>"); <u>provided</u>, <u>however</u>, that if amounts indemnified under this Agreement would exceed the Indemnification Threshold in the aggregate, the Party responsible for such amounts shall be responsible for all such amounts from the first dollar thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Parties agree that any liabilities arising under the Tax Matters Agreement dated as of October 19, 2018, by and between Honeywell International, Inc., a Delaware corporation, and Resideo Technologies, Inc., a Delaware corporation (the "<u>Honeywell TMA</u>") shall be allocated between Resideo and ADI SpinCo in accordance with <u>Schedule 5.1(e)</u>, and each Party agrees to indemnify and hold harmless the other Party from and against, and will reimburse the other Party for, any liability allocated to such Party under <u>Schedule 5.1(e)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Indemnification Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided in this Agreement, if either Party (the "<u>Indemnitee</u>") is required to pay to a Taxing Authority a Tax or to another Person a payment in respect of a Tax that the other Party (the "<u>Indemnifying Party</u>") is liable for under this Agreement, including as the result of a Final Determination, the Indemnitee shall notify the Indemnifying Party, in writing, of its obligation to pay such Tax and, in reasonably sufficient detail, its calculation of the amount due by such Indemnifying Party to the Indemnitee, including any Tax-Related Losses attributable thereto. The Indemnifying Party shall pay such amount, including any Tax-Related Losses attributable thereto, to the Indemnitee no later than the later of (i) five (5) Business Days prior to the date on which such payment is due to the applicable Taxing Authority or (ii) fifteen (15) Business Days after the receipt of notice from the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, as a result of any change or redetermination, any amount previously allocated to and borne by one Party pursuant to the provisions of <u>Article II</u> is thereafter allocated to the other Party, then, no later than five (5) Business Days after such change or redetermination, such other Party shall pay to such Party the amount previously borne by such Party which is allocated to such other Party as a result of such change or redetermination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary herein (including, for the avoidance of doubt, <u>Sections 5.2(a)</u> and <u>Section 5.3</u>), any amount to be paid by ADI SpinCo in respect of a liability or obligation of Resideo that is assumed by ADI SpinCo, or otherwise treated as a liability or obligation of Resideo that is assumed by ADI SpinCo within the meaning of Section 357(d) of the Code, pursuant to this Agreement, in each case, as determined by Resideo in its sole discretion, shall be paid, at Resideo's option and in its sole discretion, in the manner set forth in Section 9.11(b) of the Separation Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Payment Mechanics</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments under this Agreement required to be made by one Party to the other Party shall be made by Resideo directly to ADI SpinCo and by ADI SpinCo directly to Resideo; <u>provided</u>, <u>however</u>, that if the Parties mutually agree with respect to any such indemnification payment, any member of the Resideo Group, on the one hand, may make such indemnification payment to any member of the ADI Group, on the other hand, and vice versa. All indemnification payments shall be treated in the manner described in <u>Section 5.4</u> and, for the avoidance of doubt, all payments shall be made in accordance with <u>Section 5.2(c)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of any payment of Taxes made by a Responsible Company or Indemnitee pursuant to this Agreement for which such Responsible Company or Indemnitee, as the case may be, has received or will receive a payment from the other Party, such Responsible Company or Indemnitee shall provide to the other Party a copy of any official government receipt received with respect to the payment of such Taxes to the applicable Taxing Authority (or, if no such official governmental receipts are available, executed bank payment forms or other reasonable evidence of payment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Treatment of Liabilities and Payments; Gross-Up</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except to the extent otherwise required by applicable Tax Law (as determined by Resideo in its sole discretion), each of Resideo and ADI SpinCo shall, and shall cause the members of its Group to, treat for all U.S. federal (and applicable state and local) income Tax purposes any Liabilities of Resideo that are assumed or otherwise accepted by ADI SpinCo pursuant to this Agreement, the Separation Agreement or the Employee Matters Agreement or, to the extent involving Liabilities attributable to Pre-Distribution Periods, otherwise in connection with the Separation (whether such Liabilities are assumed or accepted by ADI SpinCo directly or treated as assumed or accepted by ADI SpinCo as a result of a transfer by Resideo to ADI SpinCo of equity interests in an entity treated as a "disregarded entity" for U.S. federal income Tax purposes) as assumed, within the meaning of Section 357(d) of the Code, by ADI SpinCo pursuant to the Contribution. For purposes of this <u>Section 5.4(a)</u>, all references to Resideo and ADI SpinCo shall include a reference to any member of the Resideo Group or the ADI Group that is, for U.S. federal income Tax purposes, disregarded as separate from Resideo and ADI SpinCo, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties agree that, in the absence of any change in applicable U.S. federal income Tax Law or except as otherwise required by other applicable Tax Law, (i) any indemnity or other similar payment made among the Parties pursuant to this Agreement, the Separation Agreement or any Ancillary Agreement (other than any payment of interest or penalties (whether pursuant to this Agreement, the Separation Agreement or any Ancillary Agreement or to or by a Taxing Authority) or State Income Taxes by or to a Taxing Authority) shall be treated, for all income Tax purposes, as (A) a payment with respect to an assumed or retained liability (with, if and as applicable, one Party acting as agent for the other Party or its Subsidiaries), or, if the treatment described in clause (A) is not available under applicable Law (as determined by Resideo in its sole discretion), (B) a non-taxable contribution by Resideo to ADI SpinCo or a distribution by ADI SpinCo to Resideo, as applicable, and, in the case of this clause (B), such contribution or distribution shall be treated as having been made immediately prior to the Distribution, and (ii) any payment of interest, penalties or State Income Taxes pursuant to this Agreement, the Separation Agreement or any Ancillary Agreement or by or to a Taxing Authority shall be reported for Tax purposes by the Parties as taxable or deductible (to the extent a deduction is available), as the case may be, to the Party entitled under this Agreement to retain such payment or required under this Agreement to make such payment. Notwithstanding the foregoing, Resideo shall notify ADI SpinCo if it reasonably determines that any payment made pursuant to this Agreement is to be treated, for any Tax purposes, as a payment made by one Party acting as an agent of one of such Party's Subsidiaries to the other Party acting as an agent of one of such other Party's Subsidiaries, and the Parties agree to treat any such payment accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) None of Resideo or ADI SpinCo shall, and each shall cause its Affiliates not to, report or take any position (on a Tax Return or otherwise) inconsistent with the treatment described in <u>Sections 5.4(a)</u> or <u>5.4(b)</u> (unless otherwise required by a Final Determination or a good faith resolution of a Tax Contest).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If, notwithstanding the manner in which payments described in <u>Section 5.4(b)</u> were reported, there is a Tax liability or an adjustment to a Tax liability of a Party as a result of its receipt of a payment pursuant to this Agreement or the Separation Agreement, such payment shall be appropriately adjusted so that the amount of such payment, reduced by the amount of all Taxes payable with respect to the receipt thereof (but taking into account all correlative Tax Benefits resulting from the payment of such Taxes), shall equal the amount of the payment which the Party receiving such payment would otherwise be entitled to receive.

**<u>Article VI</u>**

**Tax Contests**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Notice</u>. Each Party shall notify the other Party in writing within ten (10) days after receipt by such Party or any member of its Group of a written communication from any Taxing Authority with respect to a Tax Contest concerning any Taxes for which the other Party may be liable pursuant to this Agreement, and thereafter shall promptly forward or make available to such Party copies of notices and communications relating to such Tax Contest. The failure of one Party to notify the other of such communication in accordance with the immediately preceding sentence shall not relieve the other Party of any liability or obligation to pay such Tax or make indemnification payments under this Agreement, except to the extent that the failure to timely provide such notification actually and materially prejudices the ability of such other Party to contest such Tax liability and increases the amount of such Tax liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Separate Returns</u>. Subject to <u>Section 6.4</u>, <u>Section 6.5</u> and <u>Section 6.7</u>, in the case of any Tax Contest with respect to any Separate Return, the Responsible Company with respect to such Separate Return shall have the sole responsibility and right to control the prosecution of such Tax Contest, including the exclusive right to communicate with agents of the applicable Taxing Authority and to control, resolve, settle, or agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection with or as a result of such Tax Contest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Joint Returns</u>. Subject to <u>Section 6.4</u>, <u>Section 6.5</u> and <u>Section 6.7</u>, in the case of any Tax Contest with respect to any Joint Return, Resideo shall have the sole responsibility and right to control the prosecution of such Tax Contest, including the exclusive right to communicate with agents of the applicable Taxing Authority and to control, resolve, settle or agree to any deficiency, claim or adjustment proposed, asserted, or assessed in connection with or as a result of such Tax Contest. Notwithstanding the foregoing, to the extent a portion of any such Tax Contest with respect to a Joint Return with respect to Foreign Taxes relates to a matter which was customarily controlled by a member of the ADI Group, as determined by Resideo in its reasonable discretion, then Resideo may elect that ADI SpinCo shall be responsible for conduct of such portion of such Tax Contest and any expenses related thereto, including expenses relating to any supporting transfer pricing analysis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Mixed Contests</u>. Subject to <u>Section 6.5</u> and <u>Section 6.7</u>, in the event of any Tax Contest with respect to both an ADI Separate Return, on the one hand, and a Resideo Separate Return or a Joint Return, on the other hand, the Parties shall use their reasonable efforts to cause such Tax Contest to be severed into separate Tax Contests, each relating solely to ADI Separate Returns and Resideo Separate Returns or Joint Returns, as applicable. If such Tax Contest is not so severable, then Resideo shall determine which Party shall be the Controlling Party with respect to such Tax Contest, and such Controlling Party selected by Resideo shall, subject to <u>Section 6.5</u> and <u>Section 6.7</u>, have the sole responsibility and right to control the prosecution of such Tax Contest, including the exclusive right to communicate with agents of the applicable Taxing Authority and to control, resolve, settle, or agree to any deficiency, claim or adjustment proposed, asserted or assessed in connection with or as a result of such Tax Contest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Distribution-Related Tax Contests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of any Distribution-Related Tax Contest as a result of which ADI SpinCo could reasonably be expected to become liable for any Tax or Tax-Related Losses and which Resideo has the right to administer and control pursuant to <u>Section 6.2</u> or <u>Section 6.3</u>, (i) Resideo shall consult with ADI SpinCo reasonably in advance of taking any significant action in connection with such Tax Contest, (ii) Resideo shall offer ADI SpinCo a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such Tax Contest, (iii) Resideo shall defend such Tax Contest diligently and in good faith as if it were the only party in interest in connection with such Tax Contest, (iv) Resideo shall provide ADI SpinCo copies of any written materials relating to such Tax Contest received from the relevant Taxing Authority and (v) if ADI SpinCo would have liability for a material amount of Taxes as a result of the proposed settlement of any such Tax Contest, Resideo shall not settle such Tax Contest without the consent of ADI SpinCo (not to be unreasonably withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of any Distribution-Related Tax Contest with respect to any ADI Separate Return, (i) ADI SpinCo shall consult with Resideo reasonably in advance of taking any significant action in connection with such Tax Contest, (ii) ADI SpinCo shall consult with Resideo and offer Resideo a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such Tax Contest, (iii) ADI SpinCo shall defend such Tax Contest diligently and in good faith as if it were the only party in interest in connection with such Tax Contest, (iv) Resideo shall be entitled to participate in such Tax Contest and receive copies of any written materials relating to such Tax Contest received from the relevant Taxing Authority, and (v) ADI SpinCo shall not settle, compromise or abandon any such Tax Contest without obtaining the prior written consent of Resideo (not unreasonably withheld, conditioned or delayed); <u>provided</u>, <u>however</u>, that in the case of any Distribution-Related Tax Contest with respect to an ADI Separate Return as a result of which Resideo could reasonably be expected to become liable for or be required to pay any Taxes or Tax-Related Losses, whether pursuant to this Agreement or otherwise, Resideo shall have the right to elect to assume control of such Tax Contest, in which case the provisions of <u>Section 6.5(a)</u> shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Obligation of Continued Notice</u>. During the pendency of any Tax Contest or threatened Tax Contest, each of the Parties shall provide prompt notice to the other Party of any written communication received by it or a member of its respective Group from a Taxing Authority regarding any Tax Contest for which it is indemnified by the other Party hereunder or for which it may be required to indemnify the other Party hereunder. Such notice shall attach copies of the pertinent portion of any written communication from a Taxing Authority and contain factual information (to the extent known) describing any asserted Tax liability in reasonable detail and shall be accompanied by copies of any notice and other documents received from any Taxing Authority in respect of any such matters. Such notice shall be provided in a reasonably timely fashion. The failure of one Party to notify the other of such communication in accordance with the preceding provisions of this <u>Section 6.6</u> shall not relieve the other Party of any liability or obligation to pay such Tax or make indemnification payments under this Agreement, except to the extent that the failure to timely provide such notification actually and materially prejudices the ability of such other Party to contest such Tax liability, and increases the amount of such Tax liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Settlement Rights</u>. Unless waived by the Parties in writing, in connection with any potential adjustment in a Tax Contest as a result of which adjustment the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment to the Controlling Party under this Agreement: (i) the Controlling Party shall keep the Non-Controlling Party informed in a timely manner of all actions taken or proposed to be taken by the Controlling Party with respect to such potential adjustment in such Tax Contest; (ii) the Controlling Party shall timely provide the Non-Controlling Party with copies of any correspondence or filings submitted to any Taxing Authority or judicial authority in connection with such potential adjustment in such Tax Contest; and (iii) the Controlling Party shall defend such Tax Contest diligently and in good faith. The failure of the Controlling Party to take any action specified in the preceding sentence with respect to the Non-Controlling Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement, and in no event shall such failure relieve the Non-Controlling Party from any other liability or obligation which it may have to the Controlling Party except to the extent that such failure actually and materially prejudices the ability of such other Party to contest the relevant Tax liability and increases the amount of such Tax liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Costs and Expenses</u>. Except for any costs and expenses incurred by a Non-Controlling Party in the exercise of any participation rights that such Non-Controlling Party possesses with respect to a Tax Contest pursuant to this <u>Article VI</u>, all costs and expenses incurred in connection with the defense of a Tax Contest shall be borne by the Controlling Party.

**<u>Article VII</u>**

**Cooperation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>General</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Party shall fully cooperate, and shall cause all members of such Party's Group to fully cooperate, with all reasonable requests in writing from the other Party, or from an agent, representative or advisor to such Party, in connection with the preparation and filing of any Tax Return, claims for Refunds, the conduct of any Tax Contest, and calculations of amounts required to be paid pursuant to this Agreement, in each case, related or attributable to or arising in connection with Taxes of either Party or any member of either Party's Group covered by this Agreement and the establishment of any reserve required in connection with any financial reporting (a "<u>Tax Matter</u>"). Such cooperation shall include the provision of any information reasonably necessary or helpful in connection with a Tax Matter and shall include, without limitation:

&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) the timely provision of any Tax Returns of either Party or any member of either Party's Group, books, records (including information regarding ownership and Tax basis of property), documentation and other information relating to such Tax Returns, including accompanying schedules, related work papers, and documents relating to rulings or other determinations by Taxing 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;(ii) the execution of any document (including any power of attorney) in connection with any Tax Contest of either Party or any member of either Party's Group, or the filing of a Tax Return or a Refund claim of either Party or any member of either Party's 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;(iii) the use of the Party's reasonable best efforts to promptly obtain any documentation in connection with a Tax Matter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the use of the Party's reasonable best efforts to promptly obtain any Tax Returns (including accompanying schedules, related work papers, and documents), documents, books, records or other information in connection with the filing of any Tax Returns of any of either Party or any member of either Party's Group.

Each Party shall make its employees and facilities available, without charge, on a mutually convenient basis to facilitate such cooperation. In addition, each Party shall timely comply with all of its obligations pursuant to this Agreement to provide cooperation and information with respect to Tax Matters to the other Party, including, without limitation, the foregoing provision of this <u>Section 7.1(a)</u>, and <u>Section 3.12</u>. A Party providing cooperation under this <u>Section 7.1(a)</u> shall bear its own cost incurred in providing such cooperation; <u>provided</u>, <u>however</u>, that, if a Party's request to cooperate pursuant to this <u>Section 7.1(a)</u> causes the other Party to incur out-of-pocket expenses paid to third parties outside the ordinary course of business, the requesting Party shall bear any reasonable out-of-pocket expense of the responding Party and the requesting Party shall reimburse the responding Party of any such reasonable out-of-pocket expenses no later than thirty (30) days following delivery of a notice from the responding Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Timely Compliance</u>. Each of ADI SpinCo and Resideo acknowledges that time is of the essence in relation to any request for information, assistance, or cooperation made by Resideo or ADI SpinCo pursuant to <u>Section 7.1(a)</u>, and any other obligations of ADI SpinCo or Resideo pursuant to this Agreement to provide information, assistance or cooperation (including <u>Section 3.12</u>). Each of ADI SpinCo and Resideo acknowledges that failure to conform to the deadlines set forth in this Agreement or reasonable deadlines otherwise set by ADI SpinCo or Resideo, in each case, with respect to the provision of information, assistance and cooperation with respect to Tax Matters, could cause irreparable harm. If either ADI SpinCo or Resideo fails to comply with any such deadlines, then, notwithstanding anything to the contrary set forth in this Agreement, such non-complying Party shall be liable for, and shall indemnify and hold harmless the other Party for, any Taxes and Tax-Related Losses to the extent arising solely out of such failure to comply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Consistent Treatment</u>. Unless and until there has been a Final Determination to the contrary, except as expressly and specifically provided otherwise in this Agreement, each Party agrees not to take any position on any Tax Return, in connection with any Tax Contest or otherwise that is inconsistent with (a) the treatment of liabilities and payments as set forth in <u>Section 5.4</u>, (b) the Tax Materials, (c) the Tax-Free Status of the Transactions or the Tax Treatment of the Transactions or (d) any other tax treatment set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Impact of Cooperation</u>. For the avoidance of doubt, the existence of a Party's obligation to cooperate with the other Party pursuant to this Agreement with respect to the preparation of any Tax Return, the conduct of any Tax Contest or otherwise, or such Party's satisfaction of such cooperation obligation, shall under no circumstances be interpreted as imposing any additional obligations on such Party that are not otherwise provided for in this Agreement, including, for the avoidance of doubt, any additional procedural obligations with respect to Tax Return preparation and filing or the conduct of any Tax Contest, and any indemnification or other payment obligation with respect to any Taxes for which such Party is not otherwise responsible hereunder. In addition, the existence of any such cooperation obligations of one Party, or its compliance therewith, shall in no way limit or modify any obligations of the other Party pursuant to this Agreement, including, without limitation, any of its indemnification obligations pursuant to <u>Article V</u> or any of its obligations with respect to Tax Return filing and preparation or Tax Contest control.

**<u>Article VIII</u><br>Retention of Records; Access**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Retention of Records</u>. For so long as the contents thereof may become material in the administration of any matter under applicable Tax Law, but in any event until the later of (i) sixty (60) days after the expiration of any applicable statutes of limitation (including any waivers or extensions thereof) and (ii) seven (7) years after the Distribution Date, the Parties shall retain all Tax Records in respect of Taxes of any member of either the Resideo Group or the ADI Group for any Pre-Distribution Period or Post-Distribution Period or for any Tax Contests relating to such Tax Returns. At any time after the Distribution Date when the Resideo Group proposes to destroy any Tax Records (other than any Tax Records to the extent solely relating to Resideo, any member of the Resideo Group, their respective operations, the Resideo Retained Assets and/or the Resideo Retained Liabilities), Resideo shall first notify ADI SpinCo in writing and the ADI Group shall be entitled to receive such records or documents proposed to be destroyed. At any time after the Distribution Date when the ADI Group proposes to destroy any Tax Records, ADI SpinCo shall first notify Resideo in writing and the Resideo Group shall be entitled to receive such records or documents proposed to be destroyed. The Parties will notify each other in writing of any waivers or extensions of the applicable statute of limitations that may affect the period for which the foregoing records or other documents must be retained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Access to Tax Records</u>. The Parties and their respective Affiliates shall make available to each other for inspection and copying during normal business hours upon reasonable notice all Tax Records in their possession pertaining to Pre-Distribution Periods to the extent reasonably required by the other Party in connection with the preparation of financial accounting statements, audits, litigation, or the resolution of items under this Agreement. The Party seeking access to the records of the other Party shall bear all costs and expenses associated with such access, including any professional fees.

**<u>Article IX</u><br>Dispute Resolution**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Dispute Resolution</u>. The Parties mutually desire that friendly collaboration will continue between them. Accordingly, they will endeavor, and they will cause their respective Group members to endeavor, to resolve in good faith and in an amicable manner all disagreements and misunderstandings connected with their respective rights and obligations under this Agreement, including any amendments hereto. In furtherance thereof, in the event of any dispute or disagreement between any member of the Resideo Group, on the one hand, and any member of the ADI Group, on the other hand, as to the interpretation of any provision of this Agreement or the performance of obligations hereunder (a "<u>Tax Advisor Dispute</u>"), the Tax departments of the Parties shall negotiate in good faith to resolve the dispute. If, within thirty (30) days, such good faith negotiations do not resolve such Tax Advisor Dispute, the Parties shall appoint a nationally recognized law firm or independent public accounting firm (the "<u>Dispute Resolution Firm</u>") to resolve such dispute. In this regard, the Dispute Resolution Firm shall make determinations with respect to the disputed items based solely on representations made by Resideo, ADI SpinCo and their respective representatives, and not by independent review, and shall function only as an expert and not as an arbitrator and shall be required to make a determination in favor of one Party only. The Parties shall request that the Dispute Resolution Firm resolve all disputes no later than thirty (30) days after the submission of such dispute to the Dispute Resolution Firm, but in no event later than the due date for the payment of Taxes or the filing of the applicable Tax Return, if applicable, and agree that all decisions by the Dispute Resolution Firm with respect thereto shall be final and conclusive and binding on the Parties. The Dispute Resolution Firm shall resolve all disputes in a manner consistent with this Agreement and, to the extent not inconsistent with this Agreement, in a manner consistent with the Past Practices of Resideo and its Subsidiaries, except as otherwise required by applicable Law. The Parties shall require the Dispute Resolution Firm to render all determinations in writing and to set forth, in reasonable detail, the basis for such determination. The fees and expenses of the Dispute Resolution Firm shall be borne equally by the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Injunctive Relief</u>. Nothing in this <u>Article IX</u> shall prevent either Party from seeking injunctive relief if any delay resulting from the efforts to resolve any Tax Advisor Dispute in accordance with the provisions of <u>Section 9.1</u> could result in serious and irreparable injury to either Party or the members of its Group. Notwithstanding anything to the contrary in this Agreement, the Separation Agreement or any Ancillary Agreement, Resideo and ADI SpinCo are the only members of their respective Groups entitled to commence a dispute resolution procedure under this Agreement, and each of Resideo and ADI SpinCo will cause its respective Group members not to commence any dispute resolution procedure other than through such Party as provided in this <u>Article IX</u>.

**<u>Article X</u><br>Miscellaneous Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Disposition of ADI SpinCo Subsidiaries</u>. In the event that ADI SpinCo disposes of the stock of a Subsidiary that is not a Party to this Agreement (i) without receiving compensation equal to the fair market value of such Subsidiary, prior to the disposition, such Subsidiary shall deliver to Resideo an executed agreement, in a form reasonably acceptable to Resideo, agreeing to be bound by this Agreement as if it had been an original Party hereto or (ii) in an exchange intended to result in the receipt of compensation equal to the fair market value of such Subsidiary, prior to the disposition, such Subsidiary shall deliver to Resideo an executed agreement, in a form reasonably acceptable to Resideo, agreeing to be bound by <u>Section 7.1</u> and <u>Article X</u> of this Agreement as if it had been an original Party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Conflicting Agreements</u>. 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, this Agreement shall control with respect to the subject matter thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Interest on Late Payments</u>. With respect to any payment between the Parties pursuant to this Agreement not made by the due date set forth in this Agreement for such payment, the outstanding amount will accrue interest at a rate per annum equal to the rate in effect for underpayments under Section 6621 of the Code from such due date to and including the payment date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>Expenses</u>. Except as otherwise provided in this Agreement, each Party and its Affiliates shall bear their own expenses incurred in connection with the preparation of Tax Returns, Tax Contests, and other matters related to Taxes under the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Successors</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 assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <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 Time, to the extent such Subsidiary remains a Subsidiary of the applicable Party (and provided that the terms of <u>Section 10.1</u> have been complied with).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <u>Assignability</u>. This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any Party hereto without the prior written consent of the other Party, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void. Notwithstanding the foregoing, this Agreement shall be assignable to (i) with respect to Resideo, an Affiliate of Resideo, or (ii) a bona fide third party in connection with a merger, reorganization, consolidation or the sale of all or substantially all the assets of a Party hereto so long as the resulting, surviving or transferee entity assumes all the obligations of the relevant party hereto by operation of law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party to this Agreement; <u>provided</u>, <u>however</u>, that in the case of each of the preceding clauses (i) and (ii), no assignment permitted by this <u>Section 10.7</u> shall release the assigning Party from liability for the full performance of its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 <u>No Fiduciary Relationship</u>. The duties and obligations of the Parties, and their respective successors and permitted assigns, contained herein are the extent of the duties and obligations contemplated by this Agreement; nothing in this Agreement is intended to create a fiduciary relationship between the Parties hereto, or any of their successors and permitted assigns, or create any relationship or obligations other than those explicitly described.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 <u>Further Assurances</u>. Prior to, on, and after the Effective Time, each Party hereto shall cooperate with the other Party, at the expense of the requesting Party, to execute and deliver, or use its reasonable best efforts to cause to be executed and delivered, all instruments, including the execution and delivery to the other Party and its Affiliates and representatives of such powers of attorney or other authorizing documentation as is reasonably necessary or appropriate in connection with Tax Contests (or portions thereof) under the control of such other Party in accordance with <u>Article VI</u>, and to make all filings with any Governmental Entity, and to take all such other actions, as such Party may reasonably be requested to take by the other Party from time to time, consistent with the terms of this Agreement, in order to effectuate the provisions and purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 <u>Survival</u>. Notwithstanding any other provision of this Agreement to the contrary, all representations, covenants and obligations contained in this Agreement shall be unconditional and absolute and shall remain in effect without limitation as to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 <u>Notices</u>. All notices, requests, claims, demands and other communications under this Agreement shall be in English, shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by email or by facsimile with receipt confirmed (followed by delivery of an original via overnight courier service) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this <u>Section 10.11</u>):

If to Resideo, to:

Resideo Technologies, Inc.<br> 16100 N 71st St., Suite 550<br> Scottsdale, AZ, 85254

Attention: [●]

E-mail: [●]

with a copy to:

Willkie Farr & Gallagher LLP<br> 787 Seventh Avenue<br> New York, NY 10019-6099

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| | |
|:---|:---|
| Attention: | Russell L. Leaf; Jared N. Fertman; Tej Prakash |
| E-mail: | rleaf@willkie.com |
|  | jfertman@willkie.com |
|  | tprakash@willkie.com |

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If to ADI SpinCo, to:

ADI Global Distribution Inc.<br> 275 Broadhollow Rd Suite 400<br> Melville, NY 11747

Attention: [●]

E-mail: [●]

 [●]

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

Willkie Farr & Gallagher LLP<br> 787 Seventh Avenue<br> New York, NY 10019-6099

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| | |
|:---|:---|
| Attention: | Russell L. Leaf; Jared N. Fertman; Tej Prakash |
| E-mail: | rleaf@willkie.com |
|  | jfertman@willkie.com |
|  | tprakash@willkie.com |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12 <u>Distribution Date</u>. This Agreement shall become effective only upon the Distribution Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13 <u>No Waiver</u>. 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 or thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.14 <u>Severability</u>. In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The Parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.15 <u>Interpretation</u>. The Parties have participated jointly in the negotiation and drafting of this Agreement. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting or causing any instrument to be drafted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.16 <u>Integration</u>. This Agreement, together with each of the exhibits and schedules appended hereto, contain the entire agreement among the Parties with respect to the subject matter hereof, supersede all previous agreements, negotiations, discussions, writings, understandings, commitments and conversations with respect to such subject matter, and there are no agreements or understandings among the Parties other than those set forth herein and in the Separation Agreement and the other Ancillary Agreements. This Agreement, the Separation Agreement, and the other Ancillary Agreements together govern the arrangements in connection with the Separation and the Distribution and would not have been entered independently. In the event of any inconsistency between this Agreement and the Separation Agreement, or any other agreements relating to the transactions contemplated by the Separation Agreement, with respect to matters addressed herein, the provisions of this Agreement shall control (it being understood that the terms pursuant to which any transition services related to Tax matters shall be provided under the Transition Services Agreement shall be governed by the Transition Services Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.17 <u>Title and Headings</u>. Titles and headings to sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. Unless otherwise indicated, all "Section" references in this Agreement are to sections of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.18 <u>Counterparts</u>. This Agreement may be executed in more than one counterpart, all of which shall be considered one and the same agreement, 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.19 <u>Governing Law</u>. This Agreement and any dispute arising 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.20 <u>Amendments</u>. No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by a Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representatives of the Parties against whom it is sought to enforce such waiver, amendment, supplement or modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.21 <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 (including with respect to the rights, entitlements, obligations and recoveries that may arise out of <u>Article V</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.22 <u>Specific Performance</u>. Subject to the provisions of <u>Article IX</u>, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Party or Parties who are, or are to be, thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief in respect 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 the remedies at law for any breach or threatened breach, including monetary damages, are inadequate compensation for any loss and that any defense in any Action for specific performance for which a remedy at law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are waived by each of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.23 <u>Authority</u>*.* Resideo represents on behalf of itself and each other member of the Resideo Group and ADI SpinCo represents on behalf of itself and each other member of the ADI Group, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each such Person has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order to execute, deliver and perform this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) this Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable in accordance with the terms hereof.

[Remainder of this page intentionally left blank]

**In witness whereof,** the Parties hereto have duly executed this Agreement as of the day and year first above written.

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| | | |
|:---|:---|:---|
| **Resideo TECHNOLOGIES, INC.** | **Resideo TECHNOLOGIES, INC.** | **Resideo TECHNOLOGIES, INC.** |
| By: |  |  |
|  | Name: | [ ] |
|  | Title: | [ ] |
| **ADI GLOBAL DISTRIBUTION INC.** | **ADI GLOBAL DISTRIBUTION INC.** | **ADI GLOBAL DISTRIBUTION INC.** |
| By: |  |  |
|  | Name: | [ ] |
|  | Title: | [ ] |

---

[Signature Page to Tax Matters Agreement]

## Exhibit 10.3

**Exhibit 10.3**

EMPLOYEE MATTERS AGREEMENT

by and between

RESIDEO TECHNOLOGIES, INC.

and

ADI GLOBAL DISTRIBUTION INC.

Dated as of [●], 2026

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | Page |
| ARTICLE I | DEFINITIONS AND INTERPRETATION | 1 |
| &nbsp;&nbsp;&nbsp;Section 1.1 | &nbsp;&nbsp;&nbsp;General | 1 |
| &nbsp;&nbsp;&nbsp;Section 1.2 | &nbsp;&nbsp;&nbsp;References; Interpretation | 9 |
| ARTICLE II | GENERAL PRINCIPLES | 10 |
| &nbsp;&nbsp;&nbsp;Section 2.1 | &nbsp;&nbsp;&nbsp;Nature of Liabilities | 10 |
| &nbsp;&nbsp;&nbsp;Section 2.2 | &nbsp;&nbsp;&nbsp;Transfers of Employees and Independent Contractors Generally | 10 |
| &nbsp;&nbsp;&nbsp;Section 2.3 | &nbsp;&nbsp;&nbsp;Assumption and Retention of Liabilities Generally | 11 |
| &nbsp;&nbsp;&nbsp;Section 2.4 | &nbsp;&nbsp;&nbsp;Participation in Benefit Plans | 12 |
| &nbsp;&nbsp;&nbsp;Section 2.5 | &nbsp;&nbsp;&nbsp;Service Recognition | 12 |
| &nbsp;&nbsp;&nbsp;Section 2.6 | &nbsp;&nbsp;&nbsp;Collective Bargaining Agreements | 13 |
| &nbsp;&nbsp;&nbsp;Section 2.7 | &nbsp;&nbsp;&nbsp;Information and Consultation | 14 |
| &nbsp;&nbsp;&nbsp;Section 2.8 | &nbsp;&nbsp;&nbsp;WARN | 14 |
| &nbsp;&nbsp;&nbsp;Section 2.9 | &nbsp;&nbsp;&nbsp;Individual Agreements | 14 |
| &nbsp;&nbsp;&nbsp;Section 2.10 | &nbsp;&nbsp;&nbsp;Payroll Services | 15 |
| &nbsp;&nbsp;&nbsp;Section 2.11 | &nbsp;&nbsp;&nbsp;No Change in Control | 15 |
| ARTICLE III | CERTAIN BENEFIT PLAN PROVISIONS | 15 |
| &nbsp;&nbsp;&nbsp;Section 3.1 | &nbsp;&nbsp;&nbsp;Health and Welfare Benefit Plans | 15 |
| &nbsp;&nbsp;&nbsp;Section 3.2 | &nbsp;&nbsp;&nbsp;401(k) Plans | 17 |
| &nbsp;&nbsp;&nbsp;Section 3.3 | &nbsp;&nbsp;&nbsp;U.S. Defined Benefit Pension Plans | 17 |
| &nbsp;&nbsp;&nbsp;Section 3.4 | &nbsp;&nbsp;&nbsp;Deferred Compensation Arrangements | 18 |
| &nbsp;&nbsp;&nbsp;Section 3.5 | &nbsp;&nbsp;&nbsp;Non-U.S. Plans | 19 |
| &nbsp;&nbsp;&nbsp;Section 3.6 | &nbsp;&nbsp;&nbsp;Chargeback of Certain Costs | 19 |
| ARTICLE IV | EQUITY INCENTIVE AWARDS | 19 |
| &nbsp;&nbsp;&nbsp;Section 4.1 | &nbsp;&nbsp;&nbsp;Treatment of Resideo Stock Options | 19 |
| &nbsp;&nbsp;&nbsp;Section 4.2 | &nbsp;&nbsp;&nbsp;Treatment of Unvested Resideo Time-Based Restricted Stock Units | 20 |
| &nbsp;&nbsp;&nbsp;Section 4.3 | &nbsp;&nbsp;&nbsp;Treatment of Resideo Director Unvested Deferred RSU Awards | 20 |
| &nbsp;&nbsp;&nbsp;Section 4.4 | &nbsp;&nbsp;&nbsp;Treatment of Unvested Resideo Performance Stock Units | 21 |
| &nbsp;&nbsp;&nbsp;Section 4.5 | &nbsp;&nbsp;&nbsp;Treatment of Resideo Director DSU Awards | 22 |
| &nbsp;&nbsp;&nbsp;Section 4.6 | &nbsp;&nbsp;&nbsp;ADI SpinCo Stock Plan | 24 |
| &nbsp;&nbsp;&nbsp;Section 4.7 | &nbsp;&nbsp;&nbsp;General Terms | 24 |
| ARTICLE V | ADDITIONAL MATTERS | 25 |
| &nbsp;&nbsp;&nbsp;Section 5.1 | &nbsp;&nbsp;&nbsp;Cash Incentive Programs | 25 |
| &nbsp;&nbsp;&nbsp;Section 5.2 | &nbsp;&nbsp;&nbsp;Time-Off Benefits | 25 |
| &nbsp;&nbsp;&nbsp;Section 5.3 | &nbsp;&nbsp;&nbsp;Workers' Compensation Liabilities | 26 |
| &nbsp;&nbsp;&nbsp;Section 5.4 | &nbsp;&nbsp;&nbsp;COBRA Compliance in the United States | 26 |

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i

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;Section 5.5 | &nbsp;&nbsp;&nbsp;Retention Bonuses | 26.0 |
| &nbsp;&nbsp;&nbsp;Section 5.6 | &nbsp;&nbsp;&nbsp;Code Section 409A | 26.0 |
| &nbsp;&nbsp;&nbsp;Section 5.7 | &nbsp;&nbsp;&nbsp;Payroll Taxes and Reporting; CARES Act and ARP Act | 27.0 |
| &nbsp;&nbsp;&nbsp;Section 5.8 | &nbsp;&nbsp;&nbsp;Regulatory Filings | 27.0 |
| &nbsp;&nbsp;&nbsp;Section 5.9 | &nbsp;&nbsp;&nbsp;Disability | 27.0 |
| &nbsp;&nbsp;&nbsp;Section 5.10 | &nbsp;&nbsp;&nbsp;Certain Requirements | 28.0 |
| &nbsp;&nbsp;&nbsp;Section 5.11 | &nbsp;&nbsp;&nbsp;No Hire of Employees | 28.0 |
| ARTICLE VI | GENERAL AND ADMINISTRATIVE | 29.0 |
| &nbsp;&nbsp;&nbsp;Section 6.1 | &nbsp;&nbsp;&nbsp;Employer Rights | 29.0 |
| &nbsp;&nbsp;&nbsp;Section 6.2 | &nbsp;&nbsp;&nbsp;Effect on Employment | 29.0 |
| &nbsp;&nbsp;&nbsp;Section 6.3 | &nbsp;&nbsp;&nbsp;Consent of Third Parties | 29.0 |
| &nbsp;&nbsp;&nbsp;Section 6.4 | &nbsp;&nbsp;&nbsp;Access to Employees | 29.0 |
| &nbsp;&nbsp;&nbsp;Section 6.5 | &nbsp;&nbsp;&nbsp;Beneficiary Designation/Release of Information/Right to Reimbursement | 30.0 |
| &nbsp;&nbsp;&nbsp;Section 6.6 | &nbsp;&nbsp;&nbsp;No Third-Party Beneficiaries | 30.0 |
| &nbsp;&nbsp;&nbsp;Section 6.7 | &nbsp;&nbsp;&nbsp;Employee Benefits Administration | 30.0 |
| &nbsp;&nbsp;&nbsp;Section 6.8 | &nbsp;&nbsp;&nbsp;Sharing of Records; Cooperation | 30.0 |
| ARTICLE VII | MISCELLANEOUS | 31.0 |
| &nbsp;&nbsp;&nbsp;Section 7.1 | &nbsp;&nbsp;&nbsp;Entire Agreement | 31.0 |
| &nbsp;&nbsp;&nbsp;Section 7.2 | &nbsp;&nbsp;&nbsp;Counterparts | 31.0 |
| &nbsp;&nbsp;&nbsp;Section 7.3 | &nbsp;&nbsp;&nbsp;Survival of Agreements | 31.0 |
| &nbsp;&nbsp;&nbsp;Section 7.4 | &nbsp;&nbsp;&nbsp;Notices | 31.0 |
| &nbsp;&nbsp;&nbsp;Section 7.5 | &nbsp;&nbsp;&nbsp;Amendment | 32.0 |
| &nbsp;&nbsp;&nbsp;Section 7.6 | &nbsp;&nbsp;&nbsp;Assignment | 32.0 |
| &nbsp;&nbsp;&nbsp;Section 7.7 | &nbsp;&nbsp;&nbsp;Successors and Assigns | 32.0 |
| &nbsp;&nbsp;&nbsp;Section 7.8 | &nbsp;&nbsp;&nbsp;Termination | 32.0 |
| &nbsp;&nbsp;&nbsp;Section 7.9 | &nbsp;&nbsp;&nbsp;Subsidiaries | 33.0 |
| &nbsp;&nbsp;&nbsp;Section 7.10 | &nbsp;&nbsp;&nbsp;Title and Headings | 33.0 |
| &nbsp;&nbsp;&nbsp;Section 7.11 | &nbsp;&nbsp;&nbsp;Governing Law | 33.0 |
| &nbsp;&nbsp;&nbsp;Section 7.12 | &nbsp;&nbsp;&nbsp;Dispute Resolution | 33.0 |
| &nbsp;&nbsp;&nbsp;Section 7.13 | &nbsp;&nbsp;&nbsp;Severability | 33.0 |
| &nbsp;&nbsp;&nbsp;Section 7.14 | &nbsp;&nbsp;&nbsp;Interpretation | 33.0 |
| &nbsp;&nbsp;&nbsp;Section 7.15 | &nbsp;&nbsp;&nbsp;No Duplication; No Double Recovery | 33.0 |
| &nbsp;&nbsp;&nbsp;Section 7.16 | &nbsp;&nbsp;&nbsp;No Waiver | 33.0 |
| &nbsp;&nbsp;&nbsp;Section 7.17 | &nbsp;&nbsp;&nbsp;No Admission of Liability | 33.0 |
| &nbsp;&nbsp;&nbsp;Section 7.18 | &nbsp;&nbsp;&nbsp;Tax Treatment of Payments | 33.0 |

---

ii

EMPLOYEE MATTERS AGREEMENT

This EMPLOYEE MATTERS AGREEMENT (this "<u>Agreement</u>"), dated as of [●], 2026, is entered into by and between Resideo Technologies, Inc., a Delaware corporation ("<u>Resideo</u>"), and ADI Global Distribution Inc., a Delaware corporation and a wholly owned subsidiary of Resideo ("<u>ADI SpinCo</u>"). "<u>Party</u>" or "<u>Parties</u>" means Resideo or ADI SpinCo, individually or collectively, as the case may be. Capitalized terms used in this Agreement, but not otherwise defined in this Agreement or the Separation Agreement, shall have the meaning set forth in <u>Section 1.1</u>.

W I T N E S S E T H:

WHEREAS, Resideo, acting through its direct and indirect Subsidiaries, currently conducts the Resideo Retained Business and the ADI Business;

WHEREAS, the Board of Directors of Resideo (the "<u>Resideo Board</u>") has determined that it is appropriate, desirable and in the best interests of Resideo and its stockholders to separate Resideo into two separate, publicly traded companies, one for each of (a) the Resideo Retained Business, which shall be owned and conducted, directly or indirectly, by Resideo and its Subsidiaries (other than ADI SpinCo and its Subsidiaries), and (b) the ADI Business, which shall be owned and conducted, directly or indirectly, by ADI SpinCo and its Subsidiaries, in the manner contemplated by the Separation and Distribution Agreement by and between the Parties, dated as of [●], 2026 (the "<u>Separation Agreement</u>");

WHEREAS, the Separation Agreement sets forth the terms and conditions applicable to the Distribution; and

WHEREAS, pursuant to the Separation Agreement, Resideo and ADI SpinCo have agreed to enter into this Agreement for the purpose of allocating Assets, Liabilities and responsibilities with respect to certain employee matters and employee compensation and benefit plans and programs between them and to address certain other employment-related matters.

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements, provisions and covenants contained in this Agreement, the Parties hereby agree as follows:

**ARTICLE I<u><br>DEFINITIONS AND INTERPRETATION</u>**

Section 1.1 <u>General</u>. As used in this Agreement, the following terms shall have the following meanings:

"<u>2024 PSUs</u>" shall have the meaning set forth in <u>Section 4.4(a)</u>.

"<u>2025 PSUs</u>" shall have the meaning set forth in <u>Section 4.4(a)</u>.

"<u>2025 ROIC PSUs</u>" shall have the meaning set forth in <u>Section 4.4(c)(i)</u>.

"<u>2025 rTSR PSUs</u>" shall have the meaning set forth in <u>Section 4.4(c)(ii)</u>.

"<u>2026 PSUs</u>" shall have the meaning set forth in <u>Section 4.4(a)</u>.

"<u>Accrued Incentive Amount</u>" shall have the meaning set forth in <u>Section 5.1</u>.

"<u>Acquired Rights Directive</u>" shall have the meaning set forth in the definition "<u>Transfer Regulations</u>."

"<u>ADI SpinCo</u>" shall have the meaning set forth in the Preamble.

"<u>ADI SpinCo 2026 Stock Plan</u>" shall mean the ADI SpinCo 2026 Stock Incentive Plan, as may be amended or amended and restated from time to time.

"<u>ADI SpinCo 401(k) Plan</u>" shall have the meaning set forth in <u>Section 3.2(a)</u>.

"<u>ADI SpinCo Benefit Plan</u>" shall mean any Benefit Plan sponsored, maintained or contributed to exclusively by any member of the ADI Group.

"<u>ADI SpinCo Board</u>" shall mean the Board of Directors of ADI SpinCo.

"<u>ADI SpinCo Cafeteria Plan</u>" shall have the meaning set forth in <u>Section 3.1(c)</u>.

"<u>ADI SpinCo Conversion Ratio</u>" shall mean the quotient obtained by dividing (a) the Post-Distribution ADI SpinCo Stock Value, by (b) the Resideo Pre-Spin Stock Value.

"<u>ADI SpinCo Director DSU Award</u>" shall mean an award of deferred stock units relating to shares of ADI SpinCo Common Stock as described in <u>Section 4.5</u>.

"<u>ADI SpinCo Employee</u>" shall mean (a) each individual employed by a member of the ADI Group as of the Effective Time and (b) each Delayed Transfer ADI SpinCo Employee, in each case regardless of whether any such employee is actively at work or is not actively at work as a result of disability or illness, an approved leave of absence (including military leave with reemployment rights under federal Law and leave under the Family and Medical Leave Act of 1993), vacation, personal day or similar short- or long-term absence.

"<u>ADI SpinCo Independent Contractor</u>" shall mean, as of immediately prior to the Effective Time, each individual who is engaged as an independent contractor or consultant by ADI SpinCo or any member of the ADI Group.

"<u>ADI SpinCo Non-Employee Director</u>" shall mean a member of the ADI SpinCo Board (including any ADI SpinCo Transferred Non-Employee Director) who is not an ADI SpinCo Employee.

"<u>ADI SpinCo Post-Spin Award</u>" shall have the meaning set forth in <u>Section 4.4(a)</u>.

"<u>ADI SpinCo Time-Based Restricted Stock Unit</u>" shall have the meaning set forth in <u>Section 4.2</u>.

"<u>ADI SpinCo Transferred Non-Employee Director</u>" shall mean each ADI SpinCo Non-Employee Director immediately after the Effective Time, who served on the Resideo Board immediately prior to the Effective Time.

"<u>ADI SpinCo Unvested Deferred RSU Award</u>" shall have the meaning set forth in <u>Section 4.3</u>.

"<u>ADI SpinCo Welfare Plan Effective Date</u>" shall have the meaning set forth in <u>Section 3.1(a)</u>.

"<u>ADI SpinCo Welfare Plans</u>" shall mean any Welfare Plan maintained by ADI SpinCo or any member of the ADI Group.

"<u>Agreement</u>" shall have the meaning set forth in the Preamble.

"<u>ARP Act</u>" shall have the meaning set forth in <u>Section 5.7(b)</u>.

"<u>Automatic Transfer Employees</u>" shall mean any ADI SpinCo Employee, where local employment Laws, including the Transfer Regulations, provide for an automatic transfer of such employees to a member of the ADI Group by operation of Law upon the transfer or demerger of a business and/or activities (or part thereof) as a going concern and such transfer or demerger occurs as a result of the transactions contemplated by the Separation Agreement.

"<u>Benefit Plan</u>" shall mean, with respect to an entity, each compensation or employee benefit plan, program, policy, agreement or other arrangement, whether or not "employee benefit plans" (within the meaning of Section 3(3) of ERISA, whether or not subject to ERISA), including any benefit plan, program, policy, agreement or arrangement providing cash- or equity-based compensation or incentives, health, medical, dental, vision, disability, accident or life insurance benefits or vacation, paid or unpaid leave, severance, retention, change in control, termination, deferred compensation, individual employment or consulting, retirement, pension or savings benefits, supplemental income, retiree benefit or other fringe benefit (whether or not taxable), or employee loans, that are sponsored or maintained by such entity (or to which such entity contributes or is required to contribute or in which it participates), and excluding workers' compensation plans, policies, programs and arrangements.

"<u>CARES Act</u>" shall have the meaning set forth in <u>Section 5.7(b)</u>.

"<u>Collective Bargaining Agreement</u>" shall mean each agreement with the collective bargaining representative, employee representative, trade union, labor or management organization, group of employees, or works council or similar representative body of ADI SpinCo Employees, including any national, industry or sector specific collective agreement which is applicable to ADI SpinCo Employees, ADI SpinCo Independent Contractors, Former ADI SpinCo Service Providers, or Other Service Providers in respect of the ADI Business or ADI Former Business, and all modifications of, or amendments to, such agreement and any rules, procedures, awards or decisions of competent jurisdiction interpreting or applying such agreement.

"<u>Delayed Transfer ADI SpinCo Employee</u>" shall mean each individual employed by Resideo or a member of the Resideo Group as of the Effective Time (a) whom Resideo determines in its sole discretion is either (i) exclusively or primarily engaged in the ADI Business, or (ii) necessary for the ongoing operation of the ADI Business on and following the Effective Time, and (b) whose employment is determined by Resideo to not be eligible to be transferred to a member of the ADI Group at or prior to the Effective Time as a result of (i) requirements under applicable Law, (ii) participation in a disability plan or similar arrangement that is a Resideo Benefit Plan, or (iii) a delay in setting up ADI Business operations in a particular jurisdiction sufficient to employ such individual.

"<u>Delayed Transfer Date</u>" shall mean the date on which it is determined by Resideo that either (a) a Delayed Transfer ADI SpinCo Employee or Delayed Transfer Resideo Employee is permitted to transfer from the Resideo Group to the ADI Group or from the ADI Group to the Resideo Group, respectively, in accordance with applicable Law, or (b) the necessary business operations are set up in the relevant jurisdiction to enable employment of the ADI SpinCo Employee or Resideo Employee by the ADI Group or Resideo Group, as applicable.

"<u>Delayed Transfer Resideo Employee</u>" shall mean each individual employed by ADI SpinCo or a member of the ADI Group as of the Effective Time (a) whom Resideo determines in its sole discretion is either (i) exclusively or primarily engaged in the Resideo Retained Business, or (ii) necessary for the ongoing operation of the Resideo Retained Business on and following the Effective Time, and (b) whose employment is determined by Resideo to not be eligible to be transferred from a member of the ADI Group to a member of the Resideo Group at or prior to the Effective Time as a result of (i) requirements under applicable Law or (ii) a delay in setting up Resideo Retained Business operations in a particular jurisdiction sufficient to employ such Resideo Employee.

"<u>Distribution Ratio</u>" shall mean the quotient of the total number of shares of ADI SpinCo Common Stock divided by the total number of shares of Resideo Common Stock, in each case, outstanding as of the Effective Time.

"<u>Earned 2024 PSUs</u>" shall have the meaning set forth in <u>Section 4.4(b)</u>.

"<u>Earned 2025 ROIC PSUs</u>" shall have the meaning set forth in <u>Section 4.4(c)(i)</u>.

"<u>Earned 2025 rTSR PSUs</u>" shall have the meaning set forth in <u>Section 4.4(c)(ii)</u>.

"<u>Employee Representative</u>" shall mean any works council, including national trade union, employee representative, trade union, labor or management organization, group of employees or similar representative body.

"<u>ERISA</u>" shall mean the Employee Retirement Income Security Act of 1974, as amended.

"<u>Former ADI SpinCo Service Provider</u>" shall mean:

&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) each individual (i) whose employment or service with Resideo or any of its Subsidiaries or Affiliates terminated for any reason prior to the Effective Time, and (ii) (A) who was employed or engaged by ADI SpinCo or a member of the ADI Group immediately prior to such termination, or (B) whom Resideo determines was exclusively or primarily engaged in the ADI Business as of immediately prior to such termination; or

&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) any former employee, independent contractor or consultant of Resideo or any of its Subsidiaries or Affiliates who was exclusively or primarily engaged in an ADI Former Business (i) at the time either (A) such business was sold, conveyed, assigned, transferred, spun-off, split-off or otherwise disposed of or divested (in whole or in part) to a Person that is not a member of the ADI Group, or the Resideo Group, or (B) the operations, activities or production of which were discontinued, abandoned, completed or otherwise terminated (in whole or in part), or (ii) at any other time, but in such case only to the extent relating to his or her service with such ADI Former Business.

"<u>FSA</u>" shall have the meaning set forth in <u>Section 3.1(c)</u>.

"<u>Individual Agreement</u>" shall mean any Benefit Plan which is (a) an employment contract, (b) a retention, severance or change in control agreement, or (c) any other agreement containing restrictive covenants (including confidentiality, noncompetition, non-solicitation or similar provisions) between a member of the Resideo Group and an ADI SpinCo Employee or any Former ADI SpinCo Service Provider, as in effect immediately prior to the Effective Time.

"<u>Key Role</u>" shall have the meaning set forth in <u>Section 5.11(a)</u>.

"<u>Non-Assignable Individual Agreement</u>" shall have the meaning set forth in <u>Section 2.9(a)</u>.

"<u>Non-Automatic Transfer Employees</u>" shall mean any ADI SpinCo Employee who is not an Automatic Transfer Employee.

"<u>Non-U.S. Plans</u>" shall have the meaning set forth in <u>Section 3.5</u>.

"<u>NYSE</u>" shall mean the New York Stock Exchange.

"<u>Other Service Provider</u>" shall mean each individual who (a) (i) is or was engaged as an independent contractor or consultant by Resideo or any of its Subsidiaries or Affiliates, or (ii) is a current or former employee of Resideo or any of its Subsidiaries or Affiliates, and (b) is not a Resideo Employee, an ADI SpinCo Employee, an ADI SpinCo Independent Contractor, or a Former ADI SpinCo Service Provider.

"<u>Party</u>" and "<u>Parties</u>" shall have the meanings set forth in the Preamble.

"<u>Post-Distribution ADI SpinCo Stock Value</u>" shall mean the average of the volume weighted average per share price (as determined by Bloomberg Finance L.P.) of ADI SpinCo Common Stock trading on the NYSE on each of the first two trading days following the Distribution Date.

"<u>Post-Distribution Incentives</u>" shall have the meaning set forth in <u>Section 5.1</u>.

"<u>Post-Distribution Resideo Stock Value</u>" shall mean the average of the volume weighted average per share price (as determined by Bloomberg Finance L.P.) of Resideo Common Stock trading on the NYSE on each of the first two trading days following the Distribution Date.

"<u>Resideo</u>" shall have the meaning set forth in the Preamble.

"<u>Resideo 2018 Stock Plan</u>" shall mean the Amended and Restated 2018 Stock Incentive Plan of Resideo Technologies, Inc. and its Affiliates, as may be amended or amended and restated from time to time.

"<u>Resideo 401(k) Plan</u>" shall mean the Resideo Technologies, Inc. 401(k) Plan, as may be amended or amended and restated from time to time.

"<u>Resideo Adjustment Ratio</u>" shall mean the quotient obtained by dividing (a) the Post-Distribution Resideo Stock Value, by (b) the Resideo Pre-Spin Stock Value.

"<u>Resideo Benefit Plan</u>" shall mean any Benefit Plan sponsored, maintained or contributed to by any member of the Resideo Group.

"<u>Resideo Board</u>" shall have the meaning set forth in the Recitals.

"<u>Resideo CHCMC</u>" shall mean the Compensation and Human Capital Management Committee of the Resideo Board.

"<u>Resideo Deferred Compensation Plans</u>" shall mean, collectively, (a) the Resideo Technologies Supplemental Savings Plan, including the Deferred Incentive Compensation Program (the "<u>Resideo DICP</u>") and the Supplemental Savings Program components thereunder, and (b) the Resideo Supplemental Executive Retirement Plan, as each may be amended or amended and restated from time to time.

"<u>Resideo DICP</u>" shall have the meaning set forth in the definition of "Resideo Deferred Compensation Plans."

"<u>Resideo Director Deferred Compensation Plan</u>" shall mean the Resideo Deferred Compensation Plan for Non-Employee Directors, as may be amended or amended and restated from time to time.

"<u>Resideo Director DSU Award</u>" shall mean, collectively, an award of (a) vested deferred stock units under the Resideo Director Stock Plan relating to shares of Resideo Common Stock, granted in connection with an election made under the Resideo Director Deferred Compensation Plan to defer all or a portion of the Non-Employee Director's annual cash fee and (b) restricted stock units under the Resideo Director Stock Plan relating to shares of Resideo Common Stock that, pursuant to an election made in accordance with the Resideo Director Stock Plan, is subject to deferred settlement, and that has vested as of the Effective Time.

"<u>Resideo Director Stock Plan</u>" shall mean the 2018 Stock Plan for Non-Employee Directors of Resideo Technologies, Inc., as may be amended or amended and restated from time to time.

"<u>Resideo Director Unvested Deferred RSU Award</u>" shall mean an award of restricted stock units under the Resideo Director Stock Plan relating to shares of Resideo Common Stock that is unvested as of immediately prior to the Effective Time and that, pursuant to an election made in accordance with the Resideo Director Stock Plan, is subject to deferred settlement.

"<u>Resideo Employee</u>" shall mean (a) each individual employed by Resideo or a member of the Resideo Group as of the Effective Time who is not a Delayed Transfer ADI SpinCo Employee, and (b) each Delayed Transfer Resideo Employee, in each case regardless of whether any such employee is actively at work or is not actively at work as a result of disability or illness, an approved leave of absence (including military leave with reemployment rights under federal Law and leave under the Family and Medical Leave Act of 1993), vacation, personal day or similar short- or long-term absence.

"<u>Resideo Employee DSU Award</u>" shall mean restricted stock units under the Resideo 2018 Stock Plan relating to shares of Resideo Common Stock that, pursuant to an election made in accordance with the Resideo 2018 Stock Plan, is subject to deferred settlement, and that has vested as of the Effective Time.

"<u>Resideo Equity Awards</u>" shall mean each outstanding Resideo Option, Resideo Director Unvested Deferred RSU Award, Resideo Director DSU Award, Resideo Employee DSU Award, Resideo Time-Based Restricted Stock Unit and Resideo Performance Stock Unit.

"<u>Resideo Equity Plans</u>" shall mean the Resideo 2018 Stock Plan, the Resideo Director Stock Plan, and any other stock option, stock incentive compensation plan or arrangement, including equity award agreements, that is a Resideo Benefit Plan, as in effect as of the time relevant to the applicable provision of this Agreement.

"<u>Resideo Investment Committee</u>" shall mean the Resideo Technologies, Inc. Retirement Investment Committee.

"<u>Resideo Non-Employee Director</u>" shall mean a member of the Resideo Board who is not a Resideo Employee.

"<u>Resideo Option</u>" shall mean an option to purchase shares of Resideo Common Stock granted pursuant to the Resideo 2018 Stock Plan.

"<u>Resideo Pension Plan</u>" shall mean the Resideo Technologies, Inc. Pension Plan, as may be amended or amended and restated from time to time.

"<u>Resideo Performance Stock Unit</u>" shall mean an award granted by Resideo pursuant to a Resideo Equity Plan, that was denominated as a "Performance Stock Unit" under the terms of such plan and the related award agreement.

"<u>Resideo Pre-Spin Stock Value</u>" shall mean the closing price per share of Resideo Common Stock trading on the NYSE on the final trading day immediately prior to the Distribution Date.

"<u>Resideo Time-Based Restricted Stock Unit</u>" shall mean an award granted by Resideo pursuant to a Resideo Equity Plan, as amended and restated, that was denominated as a "Restricted Stock Unit" under the terms of such plan and the related award agreement and as of the Distribution Date vests (a) solely based on the continued employment or service of the recipient, or (b) based on a combination of continued employment or service of the recipient and the achievement of applicable performance targets over a one-year performance period.

"<u>Resideo Welfare Plans</u>" shall mean any Welfare Plan maintained by Resideo or any member of the Resideo Group.

"<u>ROIC</u>" shall have the meaning set forth in <u>Section 4.4(c)(i)</u>.

"<u>rTSR</u>" shall have the meaning set forth in <u>Section 4.4(c)(i)</u>.

"<u>Separation Agreement</u>" shall have the meaning set forth in the Recitals.

"<u>Transfer Regulations</u>" shall mean (a) all Laws of any EU Member State implementing the EU Council Directive 2001/23/EC of 12 March 2001 on the approximation of the Laws of the Member States relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses or parts of undertakings or businesses (the "<u>Acquired Rights Directive</u>") and legislation and regulations of any EU Member State implementing such Acquired Rights Directive, and (b) any similar Laws in any jurisdiction providing for an automatic transfer, by operation of Law, of employment in the event of a transfer of business.

"<u>Transferred Account Balances</u>" shall have the meaning set forth in <u>Section 3.1(c)</u>.

"<u>Welfare Plan</u>" shall mean, where applicable, a "welfare plan" (as defined in Section 3(1) of ERISA and in 29 C.F.R. §2510.3-1) whether or not subject to ERISA or a "cafeteria plan" under Section 125 of the Code, and any benefits offered thereunder, and any other plan offering health benefits (including medical, prescription drug, dental, vision and mental health and substance use disorder), disability benefits, or life, accidental death and disability, pre-Tax premium conversion benefits, dependent care assistance programs, employee assistance programs, contribution funding toward a health savings account, flexible spending accounts, tuition reimbursement or adoption assistance programs or cashable credits.

Section 1.2 <u>References; Interpretation</u>. References in this Agreement to any gender include references to all genders, and references to the singular include references to the plural and vice versa. Unless the context otherwise requires, the words "include", "includes" and "including" when used in this Agreement shall be deemed to be followed by the phrase "without limitation". Unless the context otherwise requires, references in this Agreement to Articles, Sections, Annexes, Exhibits and Schedules shall be deemed references to Articles and Sections of, and Annexes, Exhibits and Schedules to, this Agreement. Unless the context otherwise requires, the words "hereof", "hereby" and "herein" and words of similar meaning when used in this Agreement refer to this Agreement in its entirety and not to any particular Article, Section or provision of this Agreement. The word "or" shall have the inclusive meaning represented by the phrase "and/or." Any reference to any agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and by this Agreement. Any reference to any Law (including statutes and ordinances) means such law (including all rules and regulations promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability. The words "written request" or "in writing" when used in this Agreement shall include email. Reference in this Agreement to any time shall be to New York City, New York time unless otherwise expressly provided herein. Unless the context requires otherwise, references in this Agreement to "Resideo" shall also be deemed to refer to the applicable member of the Resideo Group, references to "ADI SpinCo" shall also be deemed to refer to the applicable member of the ADI Group and, in connection therewith, any references to actions or omissions to be taken, or refrained from being taken, as the case may be, by Resideo or ADI SpinCo shall be deemed to require Resideo or ADI SpinCo, as the case may be, to cause the applicable members of the Resideo Group or the ADI Group, respectively, to take, or refrain from taking, any such action. Unless otherwise expressly provided herein, whenever a Party's consent is required under this Agreement, such consent may be withheld, delayed or conditioned by such Party in its sole and absolute discretion, and whenever any action hereunder is at a Party's discretion, such action shall be at such Party's sole and absolute discretion. In the event of any inconsistency or conflict which may arise in the application or interpretation of any of the definitions set forth in <u>Section 1.1</u>, for the purpose of determining what is and is not included in such definitions, any item explicitly included on a Schedule referred to in any such definition shall take priority over any provision of the text thereof.

**ARTICLE II<u><br>GENERAL PRINCIPLES</u>**

Section 2.1 <u>Nature of Liabilities</u>. All Liabilities assumed or retained by a member of the Resideo Group under this Agreement shall be Resideo Retained Liabilities for purposes of the Separation Agreement. All Liabilities assumed or retained by a member of the ADI Group under this Agreement shall be ADI Liabilities for purposes of the Separation Agreement. Without prejudice or limitation to any of the indemnification or liability allocation provisions contained in this Agreement or the Separation Agreement, the Parties acknowledge and agree that, on the basis of all facts and circumstances as of the date hereof and through the Effective Time, ADI SpinCo shall, and is expected to, satisfy any Liability or other obligation (or portion thereof) it assumes or retains pursuant to this Agreement, whether or not Resideo has been legally relieved of such Liability or other obligation.

Section 2.2 <u>Transfers of Employees and Independent Contractors Generally</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) Subject to the requirements of applicable Law, through and until immediately before the Effective Time, Resideo shall use its reasonable best efforts to (i) cause the employment of any ADI SpinCo Employee and the contract of services of any ADI SpinCo Independent Contractor to be transferred to a member of the ADI Group no later than the Effective Time, and (ii) cause the employment of any Resideo Employee who is employed by a member of the ADI Group and the contract of services between any independent contractor or consultant that does not qualify as an ADI SpinCo Independent Contractor and a member of the ADI Group to be transferred to a member of the Resideo Group no later than the Effective Time.

&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) Resideo shall use its reasonable best efforts to cause each Automatic Transfer Employee to be employed by a member of the ADI Group no later than the Effective Time in accordance with applicable Law, or as of the applicable Delayed Transfer Date, if applicable, and ADI SpinCo agrees to take all actions reasonably necessary to cause the ADI SpinCo Employees to be so employed. If an Automatic Transfer Employee objects to the transfer of employment to a member of the ADI Group as permitted under applicable law and consequently does not become an employee of the ADI Group and is terminated by Resideo as a result, then ADI SpinCo shall reimburse Resideo in accordance with <u>Section 2.3(c)</u> for any severance or termination costs incurred by Resideo in connection with such termination of employment.

&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) ADI SpinCo shall make a qualifying offer of employment to each Non-Automatic Transfer Employee who is not already employed by a member of the ADI Group prior to the Effective Time to become employed by a member of the ADI Group effective as of no later than the Effective Time, or as of the applicable Delayed Transfer Date, if applicable; <u>provided</u> that (i) if ADI SpinCo fails to make such a qualifying offer of employment to a Non-Automatic Transfer Employee or (ii) such Non-Automatic Transfer Employee does not accept such qualifying offer of employment, and in each case such Non-Automatic Transfer Employee does not become employed by ADI SpinCo and is terminated by Resideo as a result, then ADI SpinCo shall reimburse Resideo in accordance with <u>Section 2.3(c)</u> for any severance or termination costs incurred by Resideo in connection with such termination of employment.

&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) The Resideo Group and ADI Group agree to execute, and to seek to have the applicable ADI SpinCo Employees execute, such documentation, if any, as may be necessary to reflect the transfer of employment described in this <u>Section 2.2</u>.

Section 2.3 <u>Assumption and Retention of Liabilities Generally</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) Except as otherwise set forth in this Agreement, in connection with the Internal Reorganization and the Contribution, or, if applicable, from and after the Effective Time, Resideo shall, or shall cause one or more members of the Resideo Group to, accept, assume (or, as applicable, retain) and perform, discharge, fulfill and satisfy (i) all Liabilities under all Resideo Benefit Plans, whenever incurred (except as provided in <u>Section 2.3(b)</u>); (ii) all Liabilities with respect to the employment, service, termination of employment or termination of service of all Resideo Employees, prospective employees of the Resideo Retained Business and all Other Service Providers and their respective dependents and beneficiaries (and any alternate payees in respect thereof), whenever incurred; and (iii) all other Liabilities or obligations expressly assigned to or assumed by a member of the Resideo Group under 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) Except as otherwise set forth in this Agreement, in connection with the Internal Reorganization and the Contribution, or, if applicable, from and after the Effective Time, ADI SpinCo shall, or shall cause one or more members of the ADI Group to, accept, assume (or, as applicable, retain) and perform, discharge, fulfill and satisfy (i) all Liabilities under all ADI SpinCo Benefit Plans, whenever incurred; (ii) all Liabilities with respect to the employment, service, termination of employment or termination of service of all ADI SpinCo Employees, prospective employees of the ADI Business, Former ADI SpinCo Service Providers and ADI SpinCo Independent Contractors and their respective dependents and beneficiaries (and any alternate payees in respect thereof), whenever incurred; and (iii) all other Liabilities or obligations expressly assigned to or assumed by a member of the ADI Group under 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) Subject to the following sentence, the Parties shall promptly reimburse one another, upon reasonable request of the Party requesting reimbursement and the presentation by such Party of such substantiating documentation as the other Party shall reasonably request, for the cost of any obligations or Liabilities satisfied or assumed by the Party requesting reimbursement or its Affiliates that are, or that have been made pursuant to this Agreement, the responsibility of the other Party or any of its Affiliates. Notwithstanding anything to the contrary herein, any amount to be paid by ADI SpinCo in respect of an ADI Liability or other Liability or obligation of Resideo that is assumed by ADI SpinCo, or otherwise treated as a Liability or obligation of Resideo that is assumed by ADI SpinCo within the meaning of Section 357(d) of the Code, pursuant to this Agreement, in each case, as determined by Resideo in its sole discretion, shall be paid, at Resideo's option and in its sole discretion, in the manner set forth in Section 9.11(b) of 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;(d) Notwithstanding that a Delayed Transfer ADI SpinCo Employee or Delayed Transfer Resideo Employee shall not become employed by a member of the ADI Group or Resideo Group, respectively, until the Delayed Transfer Date applicable to such employee, (i) ADI SpinCo or Resideo shall be responsible for, and shall timely reimburse (for the avoidance of doubt, in accordance with <u>Section 2.3(c)</u>) the other for, all Liabilities incurred by Resideo or ADI SpinCo, respectively, with regard to each such Delayed Transfer ADI SpinCo Employee or Delayed Transfer Resideo Employee from the Effective Time to the Delayed Transfer Date applicable to such employee, and (ii) the Parties shall use their reasonable efforts to effect the provisions of this Agreement with respect to the compensation and benefits of such Delayed Transfer ADI SpinCo Employees and Delayed Transfer Resideo Employees following the Delayed Transfer Date applicable to such employee, it being understood that it may not be possible to replicate the effect of such provisions under such circumstances. As the context requires, with respect to Delayed Transfer ADI SpinCo Employees and Delayed Transfer Resideo Employees, references throughout this Agreement to the "Effective Time" or the "Distribution Date" shall be deemed to refer to the applicable Delayed Transfer 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;(e) Notwithstanding any provision of this Agreement or the Separation Agreement to the contrary, ADI SpinCo shall, or shall cause one or more members of the ADI Group to, accept, assume (or, as applicable, retain) and perform, discharge, fulfill and satisfy all Liabilities that have been accepted, assumed or retained under this Agreement irrespective of whether accruals for such Liabilities have been transferred to ADI SpinCo or a member of the ADI Group or included on a combined balance sheet of the ADI Business or whether any such accruals are sufficient to cover such Liabilities.

&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) Except to the extent otherwise required by applicable Tax Law (as determined by Resideo in its sole discretion), each of Resideo and ADI SpinCo shall, and shall cause the members of its respective Group to, treat for all U.S. federal (and applicable state and local) income Tax purposes any Liabilities of Resideo that are Assumed or otherwise accepted or assumed by ADI SpinCo (whether such Liabilities are Assumed, accepted or assumed by ADI SpinCo directly or treated as Assumed, accepted or assumed by ADI SpinCo as a result of a transfer by Resideo to ADI SpinCo of equity interests in an entity treated as a "disregarded entity" for U.S. federal income Tax purposes) pursuant to this Agreement in accordance with Section 5.4(a) of the Tax Matters Agreement. For purposes of this <u>Section 2.3(f)</u>, all references to Resideo and ADI SpinCo shall include a reference to any member of the Resideo Group and the ADI Group that is, for U.S. federal income Tax purposes, disregarded as separate from Resideo and ADI SpinCo, respectively.

Section 2.4 <u>Participation in Benefit Plans</u>. Except as provided in this Agreement or the Transition Services Agreement, effective no later than the Distribution Date, (a) ADI SpinCo and each member of the ADI Group, to the extent applicable, shall cease to be a participating company in any Resideo Benefit Plan, and (b) each ADI SpinCo Employee (and each of their respective dependents and beneficiaries) shall cease to participate in, be covered by, accrue benefits under, be eligible to contribute to or have any rights under any Resideo Benefit Plan (except to the extent of previously accrued obligations that remain a Liability of any member of the Resideo Group pursuant to this Agreement or as otherwise provided under ERISA). Effective as of the Distribution Date, ADI SpinCo shall, or shall cause one of the members of the ADI Group to, retain, pay, perform, fulfill and discharge all Liabilities arising out of or relating to all ADI SpinCo Benefit Plans.

Section 2.5 <u>Service Recognition</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) Except as provided in Article IV of this Agreement or the Transition Services Agreement, from and after the Effective Time (or, if later, from and after the Delayed Transfer Date), service of ADI SpinCo Employees and Former ADI SpinCo Service Providers with any member of the ADI Group or any other employer, as applicable, other than any member of the Resideo Group following the Effective Time, shall not be taken into account for any purpose under any Resideo Benefit Plan.

&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) From and after the Effective Time, and in addition to any applicable obligations under the Transfer Regulations or other applicable Law, ADI SpinCo shall, and shall cause each member of the ADI Group to, give each ADI SpinCo Employee full credit for purposes of eligibility, vesting, and determination of level of benefits under any ADI SpinCo Benefit Plan for such ADI SpinCo Employee's prior service with any member of the Resideo Group or ADI Group or any predecessor thereto, to the same extent such service was recognized by the relevant members of the Resideo Group or the applicable Resideo Benefit Plan prior to the later of the Effective Time (or if later, the Delayed Transfer Date) and the date such employee ceases participating in the applicable Resideo Benefit Plan in accordance with the Transition Services Agreement; <u>provided</u> that such service shall only be recognized to the extent such ADI SpinCo Employee becomes employed by the ADI Group as of the Distribution Date or the Delayed Transfer Date, as applicable; <u>provided</u>, <u>further</u>, that such service shall not be recognized to the extent that it would result in the duplication of benefits.

&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) Except to the extent prohibited by applicable Law, as soon as administratively practicable on or after the Distribution Date: (i) ADI SpinCo shall waive or cause to be waived all limitations as to preexisting conditions or waiting periods with respect to participation and coverage requirements applicable to each ADI SpinCo Employee (and each of their respective dependents and beneficiaries) under any ADI SpinCo Welfare Plan in which ADI SpinCo Employees participate (or are eligible to participate) to the same extent that such conditions and waiting periods were satisfied or waived under an analogous Resideo Welfare Plan, and (ii) ADI SpinCo shall provide or cause each ADI SpinCo Employee (and each of their respective dependents and beneficiaries) to be provided with credit for any co-payments, deductibles or other out-of-pocket amounts paid during the plan year in which the ADI SpinCo Employees (and each of their respective dependents and beneficiaries) become eligible to participate in the ADI SpinCo Welfare Plans in satisfying any applicable co-payments, deductibles or other out-of-pocket requirements under any such plans for such plan year.

Section 2.6 <u>Collective Bargaining Agreements</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) All provisions contained in this Agreement providing for the treatment of compensation and benefits in connection with the Distribution shall apply equally to any employee who is covered by a Collective Bargaining Agreement, except to the extent that any such Collective Bargaining Agreement specifically provides for the compensation or benefits contemplated by such provision and, in each such case, such Collective Bargaining Agreement shall apply rather than the terms of this Agreement. Nothing in this Agreement is intended to alter the provisions of any Collective Bargaining Agreement or modify in any way the obligations of the Resideo Group or the ADI Group to any Employee Representative or any other Person as described in such 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) As of the Effective Time, ADI SpinCo shall, and shall cause the members of the ADI Group as appropriate to, adopt and assume any Collective Bargaining Agreements covering any of the ADI SpinCo Employees immediately prior to the Effective Time, subject to any agreed upon changes required by the transition of such Collective Bargaining Agreements to ADI SpinCo or applicable Law, and recognize the Employee Representatives that are party to such Collective Bargaining Agreements; <u>provided</u>, that any compensation or benefits that were, prior to the Distribution, provided to ADI SpinCo Employees under any such Collective Bargaining Agreements through Resideo Benefit Plans shall, to the extent such compensation and benefits are still required to be provided under such Collective Bargaining Agreements on and after the Distribution, be provided as mutually agreed with such Employee Representative through the ADI SpinCo Benefit Plans as set forth in this Agreement.

Section 2.7 <u>Information and Consultation</u>. The Parties shall comply with all requirements and obligations to inform, consult or otherwise notify any ADI SpinCo or Resideo Employees or Employee Representatives in relation to the transactions contemplated by this Agreement and the Separation Agreement, whether required pursuant to any Collective Bargaining Agreement, the Transfer Regulations or other applicable Law.

Section 2.8 <u>WARN</u>. Notwithstanding anything set forth in this Agreement to the contrary, none of the transactions contemplated by or undertaken by this Agreement is intended to and shall not constitute or give rise to an "employment loss" or employment separation within the meaning of the federal Worker Adjustment and Retraining Notification (WARN) Act, or any other federal, state, or local law or legal requirement addressing mass employment separations.

Section 2.9 <u>Individual Agreements</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) *Assignment by Resideo*. Resideo hereby assigns, or causes an applicable member of the Resideo Group to assign, to ADI SpinCo or an appropriate member of the ADI Group, all Individual Agreements, with such assignment effective no later than the Effective Time; <u>provided</u>, <u>however</u>, that, to the extent that assignment of any such Individual Agreement is not permitted by the terms of such agreement or by applicable Law, effective as no later than the Effective Time, each member of the ADI Group shall be considered to be a successor to each member of the Resideo Group for purposes of, and a third-party beneficiary with respect to, such Individual Agreement ("<u>Non-Assignable Individual Agreement</u>"), such that each member of the ADI Group shall enjoy all the rights and benefits of the applicable member of the Resideo Group under such agreement (including rights and benefits as a third-party beneficiary), and to the extent that no member of the ADI Group is recognized as a successor or third-party beneficiary to an Individual Agreement for which any member of the ADI Group seeks enforcement, then Resideo shall take such lawful and reasonable actions as reasonably requested by ADI to enforce or cooperate in the enforcement of a Non-Assignable Individual Agreement at the sole cost and expense of ADI; <u>provided</u>, <u>further</u>, that in no event shall Resideo be permitted to enforce any restrictive covenants contained in any Individual Agreement against an ADI SpinCo Employee for action taken in such individual's capacity as an ADI SpinCo Employee.

&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) *Assumption by ADI SpinCo*. Effective no later than the Effective Time, ADI SpinCo hereby assumes and honors, or causes an appropriate member of the ADI Group to assume and honor, each Individual Agreement, including any rights, benefits, Liabilities and obligations thereunder of the applicable member of the Resideo Group. ADI SpinCo shall reimburse Resideo in accordance with <u>Section 2.3(c)</u> for any costs and Liabilities borne by any member of the Resideo Group under any Non-Assignable Individual 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) *Further Actions*. Solely to the extent required in order to cause the assignment and assumption of Individual Agreements as contemplated by this <u>Section 2.9</u> to be effective, Resideo and ADI SpinCo shall, or shall cause a member of the Resideo Group or the ADI Group, as applicable, to take all actions reasonably necessary to effectuate such assignment and assumption.

Section 2.10 <u>Payroll Services</u>. Except as may otherwise be provided in accordance with the Transition Services Agreement, prior to, on and after the Distribution Date, the members of the ADI Group shall be solely responsible for providing payroll services to the ADI SpinCo Employees and Former ADI SpinCo Service Providers.

Section 2.11 <u>No Change in Control</u>. The Parties hereto agree that none of the transactions contemplated by the Separation Agreement constitute a "change in control," "change of control" or similar term, as applicable, within the meaning of any Resideo Benefit Plan or ADI SpinCo Benefit Plan; <u>provided</u>, that, the transactions contemplated by the Separation Agreement shall constitute a "Divestiture" as such term is defined in the Resideo Technologies, Inc. Severance Plan for Designated Officers and any comparable ADI SpinCo severance plan. Accordingly, except as otherwise provided in this Agreement (including, without limitation, the proviso in the preceding sentence), no provision of this Agreement shall be construed to create any right, or accelerate vesting or entitlement, to any compensation or benefit whatsoever on the part of any ADI SpinCo Employee or Resideo Employee or other former, current or future employee of the Resideo Group or ADI Group under any Benefit Plan of the Resideo Group or ADI Group.

**ARTICLE III<u><br>CERTAIN BENEFIT PLAN PROVISIONS</u>**

Section 3.1 <u>Health and Welfare Benefit Plans</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) Effective as of the Distribution Date or such later date as agreed to between Resideo and ADI SpinCo in accordance with the Transition Services Agreement (such applicable date, the "<u>ADI SpinCo Welfare Plan Effective Date</u>"), (i) ADI SpinCo shall or shall cause a member of the ADI Group to have in effect ADI SpinCo Welfare Plans providing health and welfare benefits for the benefit of each ADI SpinCo Employee (and their dependents and beneficiaries) with terms that are substantially similar to those provided to the applicable ADI SpinCo Employee (and their dependents and beneficiaries) immediately prior to the ADI SpinCo Welfare Plan Effective Date; and (ii) each ADI SpinCo Employee (and their dependents and beneficiaries) shall cease active participation in the corresponding Resideo Welfare Plan. For purposes of this <u>Section 3.1</u>, the term "ADI SpinCo Employees" shall be deemed to include any Former ADI SpinCo Service Provider who was receiving welfare benefits in connection with the termination of his or her employment from a member of the Resideo Group or the ADI Group as of the applicable ADI SpinCo Welfare Plan Effective Date. Notwithstanding the foregoing, to the extent that Resideo determines that the aforementioned provision of welfare benefits by the ADI Group to a Former ADI SpinCo Service Provider is not feasible, such Former ADI SpinCo Service Provider may continue active participation in the corresponding Resideo Welfare Plan after the ADI SpinCo Welfare Plan Effective Date, and ADI SpinCo shall reimburse Resideo for any Liabilities associated with such Former ADI SpinCo Service Provider after the ADI SpinCo Welfare Plan 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;(b) (i) Resideo shall retain all Liabilities in accordance with the applicable Resideo Welfare Plan for all reimbursement claims (such as medical and dental claims) and for all non-reimbursement claims (such as life insurance claims), in each case, incurred by ADI SpinCo Employees and Former ADI SpinCo Service Providers (and each of their respective dependents and beneficiaries) under such Benefit Plans prior to the applicable ADI SpinCo Welfare Plan Effective Date, and (ii) the members of the ADI Group shall retain all Liabilities in accordance with the ADI SpinCo Welfare Plans for all reimbursement claims (such as medical and dental claims) and for all non-reimbursement claims (such as life insurance claims), in each case, incurred by ADI SpinCo Employees and Former ADI SpinCo Service Providers (and each of their respective dependents and beneficiaries) on or after the applicable ADI SpinCo Welfare Plan Effective Date; <u>provided</u>, that ADI SpinCo shall reimburse Resideo in accordance with the Transition Services Agreement for Liabilities incurred under clause (i) between the Distribution Date and the applicable ADI SpinCo Welfare Plan Effective Date. For purposes of this <u>Section 3.1(b)</u>, a benefit claim shall be deemed to be incurred as follows: (i) health, dental, vision, employee assistance program and prescription drug benefits (including in respect of any hospital confinement), upon provision of such services, materials or supplies; and (ii) life, accidental death and dismemberment and business travel accident insurance benefits, upon the death, cessation of employment or other event giving rise to such benefits.

&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) Effective as of no later than the applicable ADI SpinCo Welfare Plan Effective Date, ADI SpinCo shall, or shall cause the members of the ADI Group to, establish a cafeteria plan that shall provide premium payment and health and dependent care flexible spending account ("<u>FSA</u>") benefits to ADI SpinCo Employees on and after the ADI SpinCo Welfare Plan Effective Date (collectively, the "<u>ADI SpinCo Cafeteria Plan</u>"). The Parties shall use commercially reasonable efforts to ensure that (i) the elections made by each ADI SpinCo Employee with respect to Resideo Welfare Plans (including FSAs) under a Resideo cafeteria plan will, in the absence of an affirmative special mid-year election (which, for clarity, the Distribution shall not constitute an event permitting a mid-year election change under the ADI SpinCo Cafeteria Plan), transfer to the ADI SpinCo Cafeteria Plan with respect to corresponding ADI SpinCo Welfare Plans (including FSAs), and (ii) any FSA balances of ADI SpinCo Employees (whether positive or negative) (the "<u>Transferred Account Balances</u>") under a Resideo cafeteria plan are transferred as soon as practicable after the applicable ADI SpinCo Welfare Plan Effective Date, from the Resideo FSAs to the ADI SpinCo FSAs. The FSA components of the ADI SpinCo Cafeteria Plan shall assume responsibility as of the applicable ADI SpinCo Welfare Plan Effective Date for all outstanding health or dependent care claims under the corresponding Resideo FSAs of each ADI SpinCo Employee as of the first day of the year in which the applicable ADI SpinCo Welfare Plan Effective Date occurs and ADI SpinCo shall assume and agree to perform, discharge, fulfill and satisfy the obligations of the corresponding Resideo FSAs from and after the ADI SpinCo Welfare Plan Effective Date (including, without limitation, the obligation to provide reimbursement for eligible claims incurred prior to the ADI SpinCo Welfare Plan Effective Date). Subject to <u>Section 2.3(c)</u>, as soon as practicable after the applicable ADI SpinCo Welfare Effective Date, and in any event within thirty (30) days after the amount of the Transferred Account Balances is determined or such later date as mutually agreed upon by the Parties, Resideo shall pay ADI SpinCo the net aggregate amount of the Transferred Account Balances, if such amount is positive, and ADI SpinCo shall pay Resideo the net aggregate amount of the Transferred Account Balances, if such amount is negative. Without limiting the generality of <u>Section 6.7</u>, Resideo and ADI SpinCo shall use commercially reasonable efforts to cooperate in administering any Resideo FSAs and health savings accounts in connection with the Distribution in accordance with the terms of the applicable Resideo Benefit Plan, including by exchanging any necessary participant records and engaging recordkeepers, administrators, providers, insurers and other third parties.

Section 3.2 <u>401(k) Plans</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) (i) Effective as of the Distribution Date, ADI SpinCo shall cause a member of the ADI Group to have in effect one or more defined contribution savings plans and related trusts that satisfy the requirements of Sections 401(a) and 401(k) of the Code in which each ADI SpinCo Employee who participated in the Resideo 401(k) Plan immediately prior thereto shall be eligible to participate (the "<u>ADI SpinCo 401(k) Plan</u>"), with terms that are substantially similar to those provided by the Resideo 401(k) Plan immediately prior to the Distribution Date, (ii) the participation of each ADI SpinCo Employee who is a participant in the Resideo 401(k) Plan shall automatically cease effective immediately prior to the Distribution Date (or if later, as of the individual's Delayed Transfer Date), (iii) as soon as practicable after the ADI SpinCo 401(k) Plan becomes effective, Resideo shall cause the accounts (including any outstanding participant loan balances) in the Resideo 401(k) Plan attributable to ADI SpinCo Employees and all plan assets of the Resideo 401(k) Plan related thereto to be transferred in cash, or in-kind (as determined by the Resideo Investment Committee) to the ADI SpinCo 401(k) Plan, and subject to such transfer, the ADI SpinCo 401(k) Plan shall assume and be solely responsible for and shall perform, discharge, fulfill and satisfy all Liabilities for or relating to ADI SpinCo Employees under the Resideo 401(k) Plan and (iv) effective as of the Distribution Date, the ADI Group shall be responsible for all ongoing rights of or relating to ADI SpinCo Employees for future participation in the ADI SpinCo 401(k) Plan.

&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) Without limitation or duplication of <u>Section 3.2(a)(i)</u>, each ADI SpinCo Employee who participates in the ADI SpinCo 401(k) Plan will be eligible to receive a matching contribution for the 2026 plan year under the ADI SpinCo 401(k) Plan, subject to terms and conditions that are similar to those applicable to matching contributions under the Resideo 401(k) Plan (including vesting schedule and condition to remain employed through the last payday of the 2026 plan year). Subject to applicable Law, the ADI SpinCo 401(k) Plan shall provide that the amount of each eligible ADI SpinCo Employee's matching contribution under the ADI SpinCo 401(k) Plan for the 2026 plan year shall be at least equal to the same matching contribution to which such ADI SpinCo Employee would be entitled under the Resideo 401(k) Plan had such ADI SpinCo Employee remained employed with the Resideo Group through the last payday in 2026 (without regard to any requirement to remain employed with the Resideo Group through such date), taking into account for each such ADI SpinCo Employee both (x) eligible compensation paid and contributions made to the Resideo 401(k) Plan between January 1, 2026 and the Distribution Date, and (y) eligible compensation paid and contributions made to the ADI SpinCo 401(k) Plan between the Distribution Date and December 31, 2026. Notwithstanding any provision of this Agreement or the Separation Agreement to the contrary, the full cost attributable to the matching contributions under the ADI SpinCo 401(k) Plan described in this <u>Section 3.2(b)</u> shall be for the account of ADI SpinCo, and Resideo shall have no obligation to pay or reimburse ADI SpinCo for any portion of such cost.

&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) Other than with respect to ADI SpinCo Employees as provided in <u>Section 3.2(a)</u>, Resideo shall retain all accounts and all Assets and Liabilities relating to the Resideo 401(k) Plan, including in respect of each Former ADI SpinCo Service Provider.

Section 3.3 <u>U.S. Defined Benefit Pension Plans</u>. Resideo shall retain sponsorship of the Resideo Pension Plan and all Assets and Liabilities arising out of or relating to the Resideo Pension Plan.

Section 3.4 <u>Deferred Compensation Arrangements</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) Resideo shall retain all Liabilities under the Resideo Deferred Compensation Plans in respect of all benefits accrued thereunder for all participants and their respective beneficiaries, and shall retain all of the Assets related thereto (including any Assets relating to corporate-owned life insurance policies). Effective as of the Distribution Date, each ADI SpinCo Employee who is a participant in any of the Resideo Deferred Compensation Plans shall cease to have any additional compensation contributed or deferred thereunder. From and after the Distribution Date, ADI SpinCo shall or shall cause a member of the ADI Group to provide notice to Resideo within five (5) days following the date on which any ADI SpinCo Employee with an accrued benefit under any of the Resideo Deferred Compensation Plans incurs a "separation from service" (as such term is defined in Section 409A of the Code) from the ADI Group. Resideo shall have the sole responsibility for the administration of the Resideo Deferred Compensation Plans and the payment of benefits thereunder to Resideo Employees, ADI SpinCo Employees, Former ADI SpinCo Service Providers or Other Service Providers, and no member of the ADI Group shall have any Liability or responsibility therefor (other than with respect to the obligation to provide notice in accordance with the preceding sentence).

&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) Resideo shall retain all Liabilities in respect of the Resideo Employee DSU Awards. Each Resideo Employee DSU Award that is outstanding immediately prior to the Effective Time shall be adjusted in accordance with the resolutions adopted by the Resideo CHCMC in connection with the Distribution and shall continue to be denominated in shares of Resideo Common Stock and be subject to the same terms and conditions (including settlement terms) after the Effective Time as were applicable to such Resideo Employee DSU Award prior to the Effective Time. From and after the Distribution Date, ADI SpinCo shall or shall cause a member of the ADI Group to provide notice to Resideo within five (5) days following the date on which any ADI SpinCo Employee who holds a Resideo Employee DSU Award incurs a "separation from service" (as such term is defined in Section 409A of the Code) from the ADI Group. From and after the Effective Time, Resideo shall have the sole responsibility for the administration of the Resideo Employee DSU Awards and the payment of benefits thereunder with respect to, and no member of the ADI Group shall have any Liability or responsibility therefor (other than with respect to the obligation to provide notice in accordance with the preceding sentence).

&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) Except as otherwise provided in <u>Section 4.5</u>, Resideo shall retain all Liabilities under the Resideo Director Deferred Compensation Plan in respect of all benefits accrued thereunder for all participants and their respective beneficiaries, and shall retain all of the Assets related thereto (including any Assets relating to corporate-owned life insurance policies). Effective as of the Distribution Date, ADI SpinCo shall or shall cause a member of the ADI Group to have in effect a nonqualified deferred compensation plan for the benefit of each ADI SpinCo Non-Employee Director with terms that are substantially similar to those provided in the Resideo Director Deferred Compensation Plan. Each Resideo Director DSU Award subject to the Resideo Director Deferred Compensation Plan that is outstanding immediately prior to the Effective Time shall be converted, as of the Effective Time, into a Resideo Director DSU Award and ADI SpinCo Director DSU Award in accordance with and otherwise subject to the terms and conditions set forth in <u>Section 4.5</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) For the avoidance of doubt, the transactions contemplated by the Separation Agreement shall not in and of itself result in a separation of service triggering the payment of benefits under any of the Resideo Deferred Compensation Plans, the Resideo Director Deferred Compensation Plan (including the settlement of Resideo Director DSU Awards (or ADI SpinCo Director DSU Awards converted therefrom)) or the Resideo Employee DSU Awards.

Section 3.5 <u>Non-U.S. Plans</u>. Notwithstanding any provision of this Agreement to the contrary, other than as set forth in this <u>Section 3.5</u>, the treatment of each Resideo Benefit Plan and ADI SpinCo Benefit Plan that is maintained primarily in respect of individuals who are located outside of the United States (together, the "<u>Non-U.S. Plans</u>") shall be subject to the terms and conditions set forth in the applicable Conveyancing and Assumption Instrument; <u>provided</u> that, if the treatment of any such Non-U.S. Plan is not specifically covered by such Conveyancing and Assumption Instrument, then unless otherwise agreed upon by the Parties, (a) ADI SpinCo shall assume and fully perform, pay, discharge, and satisfy all obligations of the Non-U.S. Plans relating to ADI SpinCo Employees, ADI SpinCo Independent Contractors and Former ADI SpinCo Service Providers, whenever incurred, (b) Resideo shall assume and fully perform, pay, discharge, and satisfy all obligations of the Non-U.S. Plans relating to Resideo Employees and Other Service Providers, whenever incurred, and (c) Resideo shall determine in its sole discretion the extent to which any Assets held in respect of such Non-U.S. Plans shall be transferred to ADI SpinCo.

Section 3.6 <u>Chargeback of Certain Costs</u>. Nothing contained in this Agreement shall limit Resideo's ability to charge back any Liabilities that it incurs in respect of any Resideo Benefit Plan to any of its operating companies in the ordinary course of business consistent with its past practices.

**ARTICLE IV<u><br>EQUITY INCENTIVE AWARDS</u>**

Section 4.1 <u>Treatment of Resideo Stock Options</u>. Each Resideo Option that is outstanding immediately prior to the Effective Time, whether held by a current or former Resideo Employee or Other Service Provider or a current ADI SpinCo Employee or Former ADI SpinCo Service Provider or Other Service Provider, shall generally remain subject to the same terms and conditions applicable to such Resideo Option (including the term, exercisability and vesting schedule, if any), immediately prior to the Effective Time; provided, however, that from and after the Effective Time:

&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) the number of shares of Resideo Common Stock subject to such Resideo Option shall be equal to the quotient, rounded down to the nearest whole share, of (i) the number of shares of Resideo Common Stock subject to such Resideo Option immediately prior to the Effective Time, divided by (ii) the Resideo Adjustment Ratio; and

&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) the per share exercise price of such Resideo Option shall be equal to the product, rounded up to the nearest cent, of (i) the per share exercise price of such Resideo Option immediately prior to the Effective Time, times (ii) the Resideo Adjustment Ratio.

&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) Notwithstanding anything to the contrary in this <u>Section 4.1</u>, the exercise price, the number of shares of Resideo Common Stock subject to each Resideo Option following the Effective Time, and the terms and conditions of exercise of each such Resideo Option shall be determined in a manner that is not inconsistent with the requirements of Section 409A of the Code and in all events subject to <u>Section 4.7(a)</u>. In addition, the Distribution shall not in and of itself result in a separation of service of any ADI SpinCo Employee triggering the commencement of the post-termination exercise period of a Resideo Option, which will instead commence upon a termination of employment from the ADI Group.

Section 4.2 <u>Treatment of Unvested Resideo Time-Based Restricted Stock Units</u>. Each Resideo Time-Based Restricted Stock Unit that is outstanding and unvested immediately prior to the Effective Time and that is held by an ADI SpinCo Employee or an ADI SpinCo Transferred Non-Employee Director shall be converted into an award of unvested restricted stock units of ADI SpinCo and shall, except as otherwise provided in this <u>Section 4.2</u>, be subject to the same terms and conditions (including vesting schedule) after the Effective Time as were applicable to such Resideo Time-Based Restricted Stock Unit prior to the Effective Time (each, an "<u>ADI SpinCo Time-Based Restricted Stock Unit</u>"). After the Effective Time, the number of shares of ADI SpinCo Common Stock underlying each ADI SpinCo Time-Based Restricted Stock Unit shall be equal to (i) the number of shares of Resideo Common Stock that were issuable upon the vesting of such Resideo Time-Based Restricted Stock Units immediately prior to the Effective Time divided by (ii) the ADI SpinCo Conversion Ratio, with each discrete grant rounded up to the nearest whole share, subject to <u>Section 4.7(a)</u>. Notwithstanding anything to the contrary contained herein, following the Effective Time, the ADI SpinCo Time-Based Restricted Stock Unit will remain subject to the same vesting conditions as in effect prior to the Distribution, except that the relevant service for the purposes of fulfilling such vesting conditions will be service to the ADI Group immediately following the Distribution.

Section 4.3 <u>Treatment of Resideo Director Unvested Deferred RSU Awards</u>. Each Resideo Director Unvested Deferred RSU Award that is outstanding immediately prior to the Effective Time and that is held by an ADI SpinCo Transferred Non-Employee Director shall be converted into an award of deferred unvested restricted stock units of ADI SpinCo and shall, except as otherwise provided in this <u>Section 4.3</u>, be subject to the same terms and conditions (including vesting schedule, deferral schedule and permissible payment events) after the Effective Time as were applicable to such Resideo Director Unvested Deferred RSU Award prior to the Effective Time (each, an "<u>ADI SpinCo Unvested Deferred RSU Award</u>"). After the Effective Time, the number of shares of ADI SpinCo Common Stock underlying each ADI SpinCo Unvested Deferred RSU Award shall be equal to (i) the number of shares of Resideo Common Stock that were issuable upon the vesting of such Resideo Director Unvested Deferred RSU Award immediately prior to the Effective Time divided by (ii) the ADI SpinCo Conversion Ratio, with each discrete grant rounded up to the nearest whole share, subject to <u>Section 4.7(a)</u>. Notwithstanding anything to the contrary contained herein, following the Effective Time, the ADI SpinCo Unvested Deferred RSU Awards will remain subject to the same vesting conditions and payment timing rules as in effect prior to the Distribution, except that (x) the relevant service for the purposes of fulfilling such vesting conditions will be service to the ADI Group immediately following the Distribution, and (y) the relevant service recipient for the purposes of determining whether an ADI SpinCo Transferred Non-Employee Director with an ADI SpinCo Unvested Deferred RSU Award incurs a "separation from service" (as such term is defined in Section 409A of the Code) shall be the ADI Group.

Section 4.4 <u>Treatment of Unvested Resideo Performance Stock Units</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) Each Resideo Performance Stock Unit that is outstanding and unvested immediately prior to the Effective Time and that is held by an ADI SpinCo Employee shall automatically be converted into an award of unvested time-based and/or performance-based restricted stock units of ADI SpinCo (each, an "<u>ADI SpinCo Post-Spin Award</u>") after the Effective Time in accordance with the terms and conditions set forth in this <u>Section 4.4</u>. For purposes of this <u>Section 4.4</u>, any Resideo Performance Stock Units that are outstanding and unvested immediately prior to the Effective Time and held by an ADI SpinCo Employee (i) that were granted in 2024 are hereinafter referred to as the "<u>2024 PSUs</u>"; (ii) that were granted in 2025 are hereinafter referred to as the "<u>2025 PSUs</u>"; and (iii) that were granted in 2026 are hereinafter referred to as the "<u>2026 PSUs</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) With respect to each 2024 PSU, the number of Resideo Performance Stock Units deemed earned in accordance with this <u>Section 4.4(b)</u> shall be determined based on actual performance against the applicable performance goals measured as of June 30, 2026, as determined by the Resideo CHCMC (the "<u>Earned 2024 PSUs</u>"). Each Earned 2024 PSU will be converted into an ADI SpinCo Post-Spin Award that will no longer be subject to any performance-based vesting conditions but will remain subject to the same time-vesting conditions as in effect prior to the Distribution, except that the relevant service for the purposes of fulfilling such vesting conditions (if any) will be service to the ADI Group immediately following the Distribution. Following the Effective Time, the number of shares of ADI SpinCo Common Stock underlying each ADI SpinCo Post-Spin Award converted in accordance with this <u>Section 4.4(b)</u> shall be equal to (i) the number of Earned 2024 PSUs divided by (ii) the ADI SpinCo Conversion Ratio, with each discrete grant rounded up to the nearest whole share, subject to <u>Section 4.7(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) With respect to each 2025 PSU, the number of shares of ADI SpinCo Common Stock underlying each ADI SpinCo Post-Spin Award shall be determined based on a split performance period, with performance measured separately for the period prior to the date specified in this <u>Section 4.4(c</u>) and the period thereafter, as follows:

&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;i. For the portion of the 2025 PSUs subject to a return on invested capital ("<u>ROIC</u>") performance metric (the "<u>2025 ROIC PSUs</u>"), (x) fifty percent (50%) of the target number of units subject to the 2025 ROIC PSUs shall be measured based on actual performance against the applicable ROIC performance goals for the period from the beginning of the applicable performance period through December 31, 2025, as determined by the Resideo CHCMC (with the number of Resideo Performance Stock Units deemed earned under this <u>Section 4.4(c)(i)(x)</u> determined based on such actual performance (the "<u>Earned 2025 ROIC PSUs</u>")), and thereafter subject to the time-based vesting conditions set forth in <u>Section 4.4(c)(iii)</u>, and (y) the remaining fifty percent (50%) of the target number of units subject to the 2025 ROIC PSUs shall remain unearned and instead subject to performance-based vesting based on relative total shareholder return ("<u>rTSR</u>") performance of ADI SpinCo Common Stock for a performance period and pursuant to performance goals established by the Resideo CHCMC. Following the Effective Time, the number of shares of ADI SpinCo Common Stock underlying each such ADI SpinCo Post-Spin Award converted from a 2025 ROIC PSU in accordance with this <u>Section 4.4(c)(i)</u> shall be equal to (i) the sum of (A) the number of the Earned 2025 ROIC PSUs and (B) fifty percent (50%) of the target number of units subject to the 2025 ROIC PSUs, divided by (ii) the ADI SpinCo Conversion Ratio, with each discrete grant rounded up to the nearest whole share, subject to <u>Section 4.7(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. For the portion of the 2025 PSUs subject to an rTSR performance metric (the "<u>2025 rTSR PSUs</u>"), (x) fifty percent (50%) of the target number of units subject to the 2025 rTSR PSUs shall be measured based on actual performance against the applicable rTSR performance goals for the period from the beginning of the applicable performance period through June 30, 2026, as determined by the Resideo CHCMC (with the number of Resideo Performance Stock Units deemed earned under this <u>Section 4.4(c)(ii)(x)</u> determined based on such actual performance (the "<u>Earned 2025 rTSR PSUs</u>"), and thereafter subject to the time-based vesting conditions set forth in <u>Section 4.4(c)(iii)</u>, and (y) the remaining fifty percent (50%) of the target number of units subject to the 2025 rTSR PSUs shall remain unearned and subject to vesting based on rTSR performance of ADI SpinCo Common Stock for a performance period and pursuant to performance goals established by the Resideo CHCMC. Following the Effective Time, the number of shares of ADI SpinCo Common Stock underlying each such ADI SpinCo Post-Spin Award converted from a 2025 rTSR PSU in accordance with this <u>Section 4.4(c)(ii)</u> shall be equal to (i) the sum of (A) the number of the Earned 2025 rTSR PSUs and (B) fifty percent (50%) of the target number of units subject to the 2025 ROIC PSUs, divided by (ii) the ADI SpinCo Conversion Ratio, with each discrete grant rounded up to the nearest whole share, subject to <u>Section 4.7(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Following the Effective Time, each ADI SpinCo Post-Spin Award contemplated under this <u>Section 4.4 (c)</u> will, in addition to any performance vesting condition noted above, as applicable, remain subject to the same time-vesting conditions as in effect prior to the Distribution, except that the relevant service for the purposes of fulfilling such vesting conditions (if any) will be service to the ADI Group immediately following the Distribution.

&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) With respect to each 2026 PSU, the number of shares of ADI SpinCo Common Stock underlying each ADI SpinCo Post-Spin Award shall be equal to (i) one hundred percent (100%) of the target number of units subject to such 2026 PSU, which will be subject to time- and performance-based vesting criteria as determined by the Resideo CHCMC following the Effective Time, divided by (ii) the ADI SpinCo Conversion Ratio, with each discrete grant rounded up to the nearest whole share, subject to <u>Section 4.7(a)</u>. Each ADI SpinCo Post-Spin Award contemplated under this <u>Section 4.4 (d)</u> will be subject to the same time-vesting conditions as in effect prior to the Distribution, except that the relevant service for the purposes of fulfilling the time-based vesting conditions will be service to the ADI Group immediately following the Distribution.

Section 4.5 <u>Treatment of Resideo Director DSU Awards</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) Each Resideo Director DSU Award held by a member of the Resideo Board as of immediately prior to the Effective Time that is outstanding as of immediately prior to the Effective Time shall be converted into both a Resideo Director DSU Award and an ADI SpinCo Director DSU Award, in each case subject to the same terms and conditions applicable to such Resideo Director DSU Award immediately prior to the Effective Time; <u>provided</u>, <u>however</u>, that from and after the Effective Time:

&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;i. the number of shares of Resideo Common Stock subject to the post-conversion Resideo Director DSU Award shall be equal to the same number of shares of Resideo Common Stock subject to such Resideo Director DSU Award immediately prior to the Effective Time; and

&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;ii. the number of shares of ADI SpinCo Common Stock subject to the post-conversion ADI SpinCo Director DSU Award shall be equal to the product, rounded up to the nearest whole share, of (A) the number of shares of Resideo Common Stock subject to such Resideo Director DSU Award immediately prior to the Effective Time multiplied by (B) the Distribution Ratio.

&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) Following the Effective Time, the timing of settlement of the Resideo Director DSU Award shall be determined as follows:

&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;i. Each Resideo Director DSU Award and ADI SpinCo Director DSU Award held by a current or former Resideo Non-Employee Director who does not serve on either the Resideo Board or the ADI SpinCo Board immediately following the Effective Time shall be settled upon or following the holder's separation from service with the Resideo Board, at such dates and times as were applicable immediately before the Effective Time.

&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;ii. Each Resideo Director DSU Award and ADI SpinCo Director DSU Award held by a Resideo Non-Employee Director who continues to serve on the Resideo Board immediately following the Effective Time (regardless of whether such individual also serves on the ADI SpinCo Board) shall be settled upon or following the holder's separation from service with the Resideo Board, at such dates and times as were applicable immediately before the Effective Time.

&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;iii. Each Resideo Director DSU Award and ADI SpinCo Director DSU Award held by an ADI SpinCo Transferred Non-Employee Director who does not serve on the Resideo Board immediately following the Effective Time shall be settled upon or following the holder's separation from service from the ADI SpinCo Board, at such dates and times as were applicable immediately before the Effective Time.

&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) Resideo Director DSU Awards, as adjusted pursuant to this <u>Section 4.5</u> and regardless of by whom held, shall be settled by Resideo pursuant to the terms of the applicable Resideo Equity Plan, and ADI SpinCo Director DSU Awards, regardless of by whom held, shall be settled by ADI SpinCo pursuant to the terms of the ADI SpinCo 2026 Stock Plan. From and after the Distribution Date, ADI SpinCo shall or shall cause a member of the ADI Group to provide notice to Resideo within five (5) days following the date on which any ADI SpinCo Transferred Non-Employee Director with a Resideo Director DSU Award incurs a "separation from service" (as such term is defined in Section 409A of the Code) from the ADI 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;(d) For the avoidance of doubt, the Distribution shall not in and of itself result in a separation of service triggering the settlement of any Resideo Director DSU Award.

Section 4.6 <u>ADI SpinCo Stock Plan</u>. Prior to the Effective Time, (a) ADI SpinCo shall have established the ADI SpinCo 2026 Stock Plan for the benefit of eligible ADI SpinCo Employees, ADI SpinCo Non-Employee Directors and other service providers of ADI SpinCo, as well as Resideo Non-Employee Directors solely in respect of the conversion of the ADI SpinCo Director DSU Awards in accordance with and otherwise subject to the terms and conditions set forth in <u>Section 4.5</u>, which shall permit the grant and issuance of equity incentive awards denominated in ADI SpinCo Common Stock as described in this <u>Article IV</u>, and (b) Resideo, as the sole stockholder of ADI SpinCo, shall approve the ADI SpinCo 2026 Stock Plan. After the Effective Time, ADI SpinCo may make such changes, modifications or amendments to the ADI SpinCo 2026 Stock Plan, as may be required by applicable Law or as are necessary and appropriate to reflect the Distribution or to permit the implementation of the provisions of this Article IV.

Section 4.7 <u>General 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) All of the adjustments described in this <u>Article IV</u> shall be effected in accordance with Sections 424 and 409A of the Code, in each case to the extent applicable. Each equity incentive award held by an ADI SpinCo Employee that is outstanding as of immediately prior to the Effective Time and granted pursuant to the Resideo 2018 Stock Plan shall be treated as described in this <u>Article IV</u>; <u>provided</u>, <u>however</u>, that, prior to the Effective Time, the Resideo CHCMC may provide (i) for different treatment with respect to some or all of the awards held by ADI SpinCo Employees located outside of the United States to the extent that the Resideo CHCMC deems such treatment necessary or appropriate, including to avoid adverse Tax consequences to such ADI SpinCo Employees, and (ii) for the adjustment of any performance conditions. Any such adjustments made by the Resideo CHCMC pursuant to the foregoing sentence shall be deemed incorporated by reference herein as if fully set forth below and shall be binding on the Parties and their respective Affiliates.

&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) Resideo Equity Awards, other than those awards that are canceled or converted pursuant to this <u>Article IV</u>, shall remain subject to all terms and conditions of the applicable Resideo Equity Plans, including the adjustment provisions thereof, and shall be adjusted in accordance with the resolutions adopted by the Resideo CHCMC in connection with the Distribution.

&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) The Parties shall use their reasonable best efforts to maintain effective registration statements with the Securities Exchange Commission with respect to the awards described in this <u>Article IV</u>, to the extent that any such registration statement is required by applicable Law.

&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) The Parties hereby acknowledge that the provisions of this <u>Article IV</u> are intended to achieve certain Tax, legal and accounting objectives and, in the event that such objectives are not achieved, the Parties agree to negotiate in good faith regarding such other actions that may be necessary or appropriate to achieve such objectives.

&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) The provisions of this Article IV shall not apply unless the Distribution takes place.

**ARTICLE V<u><br>ADDITIONAL MATTERS</u>**

Section 5.1 <u>Cash Incentive Programs</u>. Each Resideo cash incentive program applicable to ADI SpinCo Employees whose performance period is currently open will conclude as of June 30, 2026, and fifty percent (50%) of the 2026 target cash incentive will be measured based on actual performance as of such date and become payable by ADI SpinCo as set forth herein (the "<u>Accrued Incentive Amount</u>"). In addition, following the Effective Date, each applicable ADI SpinCo Employee who participated in a Resideo cash incentive program as of immediately prior to the Effective Date shall be eligible to receive a cash incentive bonus payment in respect of the remaining fifty percent (50%) of the 2026 target cash incentive in accordance with the terms and conditions, including performance metrics, established by the Resideo CHCMC for the period between the Effective Date and December 31, 2026 (the "<u>Post-Distribution Incentives</u>"). Notwithstanding any provision of this Agreement or the Separation Agreement to the contrary, (a) ADI SpinCo shall assume and perform, discharge, fulfill and satisfy all Liabilities and obligations in respect of the Accrued Incentive Amount and Post-Distribution Incentives in respect of ADI SpinCo Employees, which shall be paid in accordance with the terms (i) of the applicable Resideo cash incentive program in respect of the Accrued Incentive Amount, and (ii) established by the Resideo CHCMC in respect of the Post-Distribution Incentives; and (b) Resideo shall not transfer assets in respect of the Accrued Incentive Amount. In no event shall the aggregate incentive amounts paid to the applicable ADI SpinCo Employees in respect of the 2026 performance period be less than the Accrued Incentive Amount.

Section 5.2 <u>Time-Off Benefits</u>. Unless otherwise required in a Collective Bargaining Agreement, the Transfer Regulations or applicable Law, ADI SpinCo shall (a) credit each ADI SpinCo Employee with the amount of accrued but unused vacation time, paid time-off and other time-off benefits as such ADI SpinCo Employee had with the Resideo Group as of immediately before the date on which the employment of the ADI SpinCo Employee transfers to ADI SpinCo, and (b) permit each such ADI SpinCo Employee to use such accrued but unused vacation time, paid time off and other time-off benefits in the same manner and upon the same terms and conditions as the ADI SpinCo Employee would have been so permitted under the terms and conditions of the applicable Resideo policies in effect for the year in which such transfer of employment occurs, up to and including full exhaustion of such transferred unused vacation time, paid time-off and other time-off benefits (if such full exhaustion would be permitted under the applicable Resideo policies in effect for that year in which the transfer of employment occurs).

Section 5.3 <u>Workers' Compensation Liabilities</u>. Effective no later than the Effective Time, ADI SpinCo shall assume all Liabilities for ADI SpinCo Employees, ADI SpinCo Independent Contractors and Former ADI SpinCo Service Providers related to any and all workers' compensation injuries, incidents, conditions, claims or coverage, whenever incurred (including claims incurred prior to the Effective Time, but not reported until after the Effective Time), and ADI SpinCo shall be fully responsible for the administration, management and payment of all such claims and the performance, discharge, fulfillment and satisfaction of all such Liabilities taking into account Section 8.1 of the Separation Agreement regarding insurance matters. Notwithstanding the foregoing, if ADI SpinCo is unable to assume any such Liability or the administration, management or payment of any such claim solely because of the operation of applicable Law, Resideo shall retain such Liabilities and ADI SpinCo shall reimburse and otherwise fully indemnify Resideo (for the avoidance of doubt, in accordance with <u>Section 2.3(c)</u>) for all such Liabilities, including the costs of administering the plans, programs or arrangements under which any such Liabilities have accrued or otherwise arisen (such that the Parties are in the same net economic position as they would have been in had such Liabilities been assumed by the applicable member of the applicable Group pursuant to this Agreement).

Section 5.4 <u>COBRA Compliance in the United States</u>. Effective as of the Distribution Date, ADI SpinCo shall assume and be responsible for administering compliance with the health care continuation requirements of COBRA, in accordance with the provisions of the ADI SpinCo Welfare Plans, with respect to ADI SpinCo Employees or Former ADI SpinCo Service Providers who incurred a COBRA qualifying event under an ADI SpinCo Welfare Plan at any time on or after the Distribution Date and/or any COBRA qualifying event in connection with the transactions described in the Separation Agreement. ADI SpinCo shall also be responsible for administering compliance with the health care continuation requirements of COBRA, and the corresponding provisions of the ADI SpinCo Welfare Plans with respect to ADI SpinCo Employees and their covered dependents who incur a COBRA qualifying event or loss of coverage under the ADI SpinCo Welfare Plans at any time on or after the Distribution Date. ADI SpinCo shall also assume and be responsible for administering compliance with the health care continuation requirements of COBRA with respect to any former employees of Resideo or any of its subsidiaries who incurred a COBRA qualifying event under a Resideo Welfare Plan prior to the Distribution Date and who, at the time of their termination of employment, were employed by Resideo LLC, with such responsibility including administering any remaining COBRA continuation coverage obligations applicable to such individuals.

Section 5.5 <u>Retention Bonuses</u>. If requested in writing by Resideo, ADI SpinCo shall take all necessary actions (including withholding, paying and remitting Taxes, including payroll Taxes) to facilitate the payment of any retention bonuses on behalf of a member of the Resideo Group to any ADI SpinCo Employees that relate to the transactions contemplated by the Separation Agreement that become payable after the Distribution Date.

Section 5.6 <u>Code Section 409A</u>. Notwithstanding anything in this Agreement to the contrary, the Parties shall negotiate in good faith regarding the need for any treatment different from that otherwise provided herein with respect to the payment of compensation to ensure that the treatment of such compensation does not cause the imposition of a Tax under Section 409A of the Code. In no event, however, shall any Party be liable to another in respect of any Taxes imposed under, or any other costs or Liabilities relating to, Section 409A of the Code.

Section 5.7 <u>Payroll Taxes and Reporting; CARES Act and ARP Act</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) The Parties shall, to the extent practicable, (i) treat ADI SpinCo or a member of the ADI Group as a "successor employer" and Resideo (or the appropriate member of the Resideo Group) as a "predecessor," within the meaning of Sections 3121(a)(1) and 3306(b)(1) of the Code, with respect to ADI SpinCo Employees for purposes of Taxes imposed under the United States Federal Unemployment Tax Act or the United States Federal Insurance Contributions Act, and (ii) cooperate with each other to avoid, to the extent possible, the filing of more than one IRS Form W-2 with respect to each ADI SpinCo Employee for the calendar year in which the Effective Time occurs.

&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) Effective as of the Effective Time (or, if later, the applicable Delayed Transfer Date), ADI SpinCo shall, or shall cause one or more members of the ADI Group to, assume and perform, discharge, fulfill and satisfy all Liabilities in respect of the payment of any employment taxes that have been delayed pursuant to Section 2302 of the Coronavirus Aid, Relief, and Economic Security Act (the "<u>CARES Act</u>") and Section 9651 of the American Rescue Plan Act of 2021 ("<u>ARP Act</u>") with respect to any ADI SpinCo Employee or Former ADI SpinCo Service Provider, and, if applicable, shall timely reimburse Resideo in accordance with Section 2.3(c) for any such amounts that are required to be paid by Resideo in accordance with applicable Law. Resideo shall retain the benefit of any Tax credit allowed pursuant to Section 2301 of the CARES Act and Section 9651 of the ARP Act with respect to any "qualified wages" (as defined in the CARES Act and the ARP Act, respectively) paid to any ADI SpinCo Employee or Former ADI SpinCo Service Provider after March 12, 2020 and prior to the Effective Time (or, if later, the applicable Delayed Transfer Date).

Section 5.8 <u>Regulatory Filings</u>. Subject to applicable Law and the Tax Matters Agreement, Resideo shall retain responsibility for all employee-related regulatory filings for reporting periods ending at or prior to the Effective Time, except for Equal Employment Opportunity Commission EEO-1 reports and affirmative action program (AAP) reports and responses to Office of Federal Contract Compliance Programs (OFCCP) submissions, for which Resideo shall provide data and information (to the extent permitted by applicable Laws) to ADI SpinCo, which shall be responsible for making such filings in respect of ADI SpinCo Employees.

Section 5.9 <u>Disability</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) To the extent that any ADI SpinCo Employee is, as of the Distribution Date, receiving payments as part of any short-term disability program that is part of a Resideo Welfare Plan, such ADI SpinCo Employee's rights to continued short-term disability benefits (i) will end under any Resideo Welfare Plan as of the Distribution Date; and (ii) all remaining rights will be recognized under an ADI SpinCo Welfare Plan as of the Distribution Date, and the remainder (if any) of such ADI SpinCo Employee's short-term disability benefits will be paid by an ADI SpinCo Welfare Plan. In the event that any ADI SpinCo Employee described above shall have any dispute with the short-term disability benefits they are receiving under an ADI SpinCo Welfare Plan, any and all appeal rights of such employees shall be realized through the ADI SpinCo Welfare Plan (and any appeal rights such ADI SpinCo Employee may have under any Resideo Welfare Plan will be limited to benefits received and time periods occurring prior to the Distribution 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;(b) As of the Distribution Date, (i) the Resideo Group shall retain all Liabilities for providing long-term disability benefits under a Resideo Welfare Plan with respect to any Resideo Employee, and (ii) the ADI Group shall assume and be solely responsible for all Liabilities for providing long-term disability benefits under an ADI SpinCo Welfare Plan with respect to (x) any ADI SpinCo Employee, and (y) any Former ADI SpinCo Service Provider. For the avoidance of doubt, to the extent that any employee's long-term disability Liabilities are not expressly assigned to the ADI Group pursuant to clause (ii) of this <u>Section 5.9(b)</u>, such Liabilities shall be retained by the Resideo 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) For this purpose, a disability claim shall be considered incurred on the date of the occurrence of the event or condition giving rise to disability. For the avoidance of doubt, if, as of the Distribution Date, an individual employed by either the Resideo Group or the ADI Group is receiving short-term disability benefits due to an event or condition that occurred prior to the Distribution Date, such individual shall remain an employee of the Resideo Group or ADI Group, as applicable, and to the extent that such individual subsequently becomes entitled to long-term disability benefits, such long-term disability benefits shall be the responsibility of, and shall be provided under a Welfare Plan maintained by, the applicable Resideo Group or the ADI Group to which such individual is employed or is intended to be employed after any required transfers of employment following the Effective Time.

Section 5.10 <u>Certain Requirements</u>. Notwithstanding anything in this Agreement to the contrary, if the Transfer Regulations, the terms of a Collective Bargaining Agreement or applicable Law require that any assets or Liabilities be retained by the Resideo Group or transferred to or assumed by the ADI Group in a manner that is different from that set forth in this Agreement, such retention, transfer or assumption shall be made in accordance with the terms of such Collective Bargaining Agreement or applicable Law and shall not be made as otherwise set forth in this Agreement.

Section 5.11 <u>No Hire of Employees</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) ADI SpinCo agrees that, for a period of eighteen (18) months following the Distribution Date, it shall not, and shall cause each other member of the ADI Group not to, without the prior written consent of Resideo, directly or indirectly, on its own behalf or in the service or on behalf of others, hire or attempt to hire, whether as an employee, consultant, independent contractor or otherwise, any (i) employee of the Resideo Group employed in an executive or senior management capacity (each of such roles, a "<u>Key Role</u>") or (ii) former employee of the Resideo Group employed in a Key Role who was on the payroll of the Resideo Group within six (6) months of the date of such hiring or attempted hiring by ADI SpinCo or any other member of the ADI Group (other than in respect of an ADI SpinCo Employee); <u>provided</u> that ADI SpinCo and each other member of the ADI Group may hire any employee or former employee of the Resideo Group, including any employee or former employee of the Resideo Group employed in a Key Role, if such employee or former employee is hired more than six (6) months after the Distribution Date in response to a general solicitation for employment by use of advertisements in the media that are not specifically directed at employees of the Resideo 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;(b) Resideo agrees that, for a period of eighteen (18) months following the Distribution Date, it shall not, and shall cause each other member of the Resideo Group not to, without the prior written consent of ADI SpinCo, directly or indirectly, on its own behalf or in the service or on behalf of others, hire or attempt to hire, whether as an employee, consultant, independent contractor or otherwise, any (i) employee of the ADI Group employed in a Key Role or (ii) former employee of the ADI Group employed in a Key Role who was on the payroll of the ADI Group within six (6) months of the date of such hiring or attempted hiring by Resideo or any other member of the Resideo Group; <u>provided</u> that Resideo and each other member of the Resideo Group may hire any employee or former employee of the ADI Group, including any employee or former employee of the ADI Group employed in a Key Role, if such employee or former employee is hired more than six (6) months after the Distribution Date in response to a general solicitation for employment by use of advertisements in the media that are not specifically directed at employees of the ADI 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) If a final and non-appealable judicial determination is made that any provision of this <u>Section 5.11</u> constitutes an unreasonable or otherwise unenforceable restriction with respect to any particular jurisdiction, the provisions of this <u>Section 5.11</u> will not be rendered void but will be deemed to be modified solely with respect to the applicable jurisdiction to the minimum extent necessary to remain in force and effect for the greatest period and to the greatest extent that such court determines constitutes a reasonable restriction under the circumstances.

**ARTICLE VI<u><br>GENERAL AND ADMINISTRATIVE</u>**

Section 6.1 <u>Employer Rights</u>. Nothing in this Agreement shall be deemed to be an amendment to any Resideo Benefit Plan or ADI SpinCo Benefit Plan or to prohibit any member of the Resideo Group or ADI Group, as the case may be, from amending, modifying or terminating any Resideo Benefit Plan or ADI SpinCo Benefit Plan at any time within its sole discretion.

Section 6.2 <u>Effect on Employment</u>. Nothing in this Agreement is intended to or shall confer upon any employee or former employee of Resideo, ADI SpinCo or any of their respective Affiliates any right to continued employment, or any recall or similar rights to any such individual on layoff or any type of approved leave.

Section 6.3 <u>Consent of Third Parties</u>. If any provision of this Agreement is dependent on the Consent of any third party and such Consent is withheld, the Parties shall use their reasonable best efforts to implement the applicable provisions of this Agreement to the fullest extent practicable. If any provision of this Agreement cannot be implemented due to the failure of such third party to consent, the Parties hereto shall negotiate in good faith to implement the provision (as applicable) in a mutually satisfactory manner.

Section 6.4 <u>Access to Employees</u>. On and after the Effective Time, Resideo and ADI SpinCo shall, or shall cause each of their respective Affiliates to, make available to each other those of their employees who may reasonably be needed in order to defend or prosecute any legal or administrative action (other than a legal action between Resideo and ADI SpinCo) to which any employee or director of the Resideo Group or the ADI Group or any Resideo Benefit Plan or ADI SpinCo Benefit Plan is a party and which relates to a Resideo Benefit Plan or ADI SpinCo Benefit Plan. The Party to whom an employee is made available in accordance with this <u>Section 6.4</u> shall pay or reimburse the other Party for all reasonable expenses which may be incurred by such employee in connection therewith, including all reasonable travel, lodging, and meal expenses, but excluding any amount for such employee's time spent in connection herewith.

Section 6.5 <u>Beneficiary Designation/Release of Information/Right to Reimbursement</u>. To the extent permitted by applicable Law and except as otherwise provided for in this Agreement, all beneficiary designations, authorizations for the release of Information and rights to reimbursement made by or relating to ADI SpinCo Employees under Resideo Benefit Plans shall be transferred to and be in full force and effect under the corresponding ADI SpinCo Benefit Plans until such beneficiary designations, authorizations or rights are replaced or revoked by, or no longer apply, to the relevant ADI SpinCo Employee.

Section 6.6 <u>No Third-Party Beneficiaries</u>. This Agreement is solely for the benefit of the Parties and, except to the extent otherwise expressly provided herein, nothing in this Agreement, express or implied, is intended to confer any rights, benefits, remedies, obligations or Liabilities under this Agreement upon any Person, including any ADI SpinCo Employee or other current or former employee, officer, director or contractor of the Resideo Group or ADI Group, other than the Parties and their respective successors and assigns. Nothing in this Agreement is intended to amend any employee benefit plan or affect the applicable plan sponsor's right to amend or terminate any employee benefit plan pursuant to the terms of such plan.

Section 6.7 <u>Employee Benefits Administration</u>. At all times following the date hereof, the Parties will cooperate in good faith as necessary to facilitate the administration of employee benefits and the resolution of related employee benefit claims with respect to ADI SpinCo Employees, Former ADI SpinCo Service Providers and employees and Other Service Providers, as applicable, including with respect to the provision of employee level information necessary for the other Party to manage, administer, finance and file required reports with respect to such administration.

Section 6.8 <u>Sharing of Records; Cooperation</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) The Parties shall use their respective commercially reasonable efforts to provide the other Party such employee related records and information as necessary or appropriate to carry out their respective obligations under applicable Law or any other Data Protection Requirement, this Agreement, any other Ancillary Agreement or the Separation Agreement, and for the purposes of administering their respective employee benefit plans and policies. To the extent not inconsistent with this Agreement and any applicable Data Protection Requirement, access to such records on and after the Effective Time will be provided to members of the ADI Group or the Resideo Group, as applicable, in accordance with the Separation Agreement. All information and records regarding employment, personnel and employee benefit matters contemplated hereunder shall be accessed, retained, held, used, copied and transmitted on and after the Effective Time by any relevant Party in accordance with all Data Protection Requirements relating to the collection, storage, retention, use, transmittal, disclosure and destruction of such records.

&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) Each Party shall use commercially reasonable efforts to cooperate to share, retain and maintain data and records that are necessary or appropriate to further the purposes of this <u>Section 6.8</u> and for each Party to administer its respective benefit plans to the extent consistent with this Agreement and applicable Data Protection Requirements, and each Party agrees to cooperate as long as is reasonably necessary to further the purposes of this <u>Section 6.8</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) Except as otherwise set forth in this Agreement, all records and data relating to employees shall, in each case, be subject to the confidentiality provisions of the Separation Agreement and any other applicable agreement and applicable Law. The provisions of this <u>Section 6.8</u> shall be in addition to, and not in derogation of, the provisions of the Separation Agreement governing Confidential Information, including Article VI of the Separation Agreement.

**ARTICLE VII<u><br>MISCELLANEOUS</u>**

Section 7.1 <u>Entire Agreement</u>. Subject to Section 9.1 of the Separation Agreement, this Agreement and the Separation Agreement, including the Exhibits and Schedules 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.

Section 7.2 <u>Counterparts</u>. This Agreement may be executed in more than one counterpart, all of which shall be considered one and the same agreement, 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 7.3 <u>Survival of Agreements</u>. Except as otherwise contemplated by this Agreement, all covenants and agreements of the Parties contained in this Agreement shall survive the Effective Time and remain in full force and effect in accordance with their applicable terms.

Section 7.4 <u>Notices</u>. All notices, requests, claims, demands and other communications under this Agreement shall be in English, shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by email or by facsimile with receipt confirmed (followed by delivery of an original via overnight courier service) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this <u>Section 7.4</u>):

To Resideo:

Resideo Technologies, Inc.

16100 N 71st St, Suite 550

Scottsdale, Arizona, 85254

Atten: [●]

Email: [●]

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

Willkie Farr & Gallagher LLP<br> 787 Seventh Avenue<br> New York, NY 10019-6099

---

| | |
|:---|:---|
| Attention: | Russell L. Leaf; Jared N. Fertman; Tej Prakash |
| E-mail: | rleaf@willkie.com |
|  | jfertman@willkie.com |
|  | tprakash@willkie.com |

---

To ADI SpinCo:

ADI Global Distribution Inc.

275 Broadhollow Rd Suite 400

Melville, NY 11747

Attention: [●]

E-mail: [●]

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

Willkie Farr & Gallagher LLP<br> 787 Seventh Avenue<br> New York, NY 10019-6099

---

| | |
|:---|:---|
| Attention: | Russell L. Leaf; Jared N. Fertman; Tej Prakash |
| E-mail: | rleaf@willkie.com |
|  | jfertman@willkie.com |
|  | tprakash@willkie.com |

---

Section 7.5 <u>Amendment</u>. No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by a Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representatives of the Parties against whom it is sought to enforce such waiver, amendment, supplement or modification.

Section 7.6 <u>Assignment</u>. This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any Party hereto without the prior written consent of the other Party, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void. Notwithstanding the foregoing, this Agreement shall be assignable to (a) with respect to Resideo, an Affiliate of Resideo, or (b) a bona fide third party in connection with a merger, reorganization, consolidation or the sale of all or substantially all the assets of a party hereto so long as the resulting, surviving or transferee entity assumes all the obligations of the relevant party hereto by operation of Law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party to this Agreement; <u>provided</u>, <u>however</u>, that, in the case of each of the preceding clauses (a) and (b), no assignment permitted by this <u>Section 7.6</u> shall release the assigning Party from liability for the full performance of its obligations under this Agreement.

Section 7.7 <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 assigns.

Section 7.8 <u>Termination</u>. This Agreement may be terminated at any time prior to the Effective Time by and in the sole discretion of Resideo without the approval of ADI SpinCo or the stockholders of Resideo. In the event of such termination prior to the Effective Time, no Party (nor any of its directors, officers or employees) shall have any liability of any kind to the other Party or any other Person by reason of this Agreement. After the Effective Time, this Agreement may not be terminated except by an agreement in writing signed by Resideo and ADI SpinCo.

Section 7.9 <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 Time, to the extent such Subsidiary remains a Subsidiary of the applicable Party.

Section 7.10 <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. Unless otherwise indicated, all "Section" references in this Agreement are to sections of this Agreement.

Section 7.11 <u>Governing Law</u>. This Agreement and any dispute arising 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 7.12 <u>Dispute Resolution</u>. The provisions of Article VII of the Separation Agreement shall govern any dispute under or in connection with this Agreement.

Section 7.13 <u>Severability</u>. In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The Parties shall endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

Section 7.14 <u>Interpretation</u>. The Parties have participated jointly in the negotiation and drafting of this Agreement. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting or causing any instrument to be drafted.

Section 7.15 <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 7.16 <u>No Waiver</u>. 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.

Section 7.17 <u>No Admission of Liability</u>. The allocation of Assets and Liabilities herein is solely for the purpose of allocating such Assets and Liabilities between Resideo and ADI SpinCo and is not intended as an admission of liability or responsibility for any alleged Liabilities vis-à-vis any third party, including with respect to the Liabilities of any non-wholly owned subsidiary of Resideo or ADI SpinCo.

Section 7.18 <u>Tax Treatment of Payments</u>. Unless otherwise required by a Final Determination, for U.S. federal income Tax purposes and all other applicable Tax purposes, any payment made pursuant to this Agreement shall be treated in accordance with Section 5.4 of the Tax Matters Agreement.

[Signature Page Follows]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day and year first above written.

By:

By:

*[Employee Matters Agreement Signature Page]*

## Exhibit 10.4

**Exhibit 10.4**

**INTELLECTUAL PROPERTY MATTERS AGREEMENT**

This Intellectual Property Matters Agreement (this "<u>Agreement</u>") is entered into as of [●], 2026 (the "<u>Effective Date</u>"), by and between Resideo Technologies, Inc., a Delaware corporation ("<u>Resideo</u>"), and ADI Global Distribution Inc., a Delaware corporation and a wholly owned subsidiary of Resideo ("<u>ADI SpinCo</u>"). "<u>Party</u>" or "<u>Parties</u>" means Resideo or ADI SpinCo, individually or collectively, as the case may be.

WHEREAS, Resideo, acting through its direct and indirect Subsidiaries, currently conducts the Resideo Retained Business and the ADI Business;

WHEREAS, the Board of Directors of Resideo (the "<u>Resideo Board</u>") has determined that it is appropriate, desirable and in the best interests of Resideo and its stockholders to create a new publicly traded company that shall operate the ADI Business;

WHEREAS, in furtherance of the foregoing, the Resideo Board has determined that it is appropriate, desirable and in the best interests of Resideo and its stockholders to separate the ADI Business from the Resideo Retained Business (the "<u>Separation</u>") and, following the Separation, make a distribution, in accordance with the Distribution Ratio, to Record Date Holders, of all of the issued and outstanding shares of ADI SpinCo Common Stock owned by Resideo (the "<u>Distribution</u>");

WHEREAS, in order to effectuate the Separation and the Distribution, the Parties have entered into that certain Separation and Distribution Agreement, dated as of the date hereof (together with the schedules, exhibits and appendices thereto, the "<u>Separation Agreement</u>");

WHEREAS, pursuant to the Separation Agreement, and in connection with the Separation and the Distribution, certain rights in and to certain intellectual property are to be provided by the Resideo Group to the ADI Group and by the ADI Group to the Resideo Group after the Distribution Date upon the terms and conditions set forth in this Agreement; and

WHEREAS, the Parties acknowledge that this Agreement, the Separation and Distribution Agreement, and the other Ancillary Agreements represent the integrated agreement of Resideo and ADI SpinCo relating to the Separation and the Distribution, are being entered into together, and would not have been entered into independently.

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

Article I<u><br> DEFINITIONS</u>

Section 1.1 Unless otherwise defined herein, all capitalized terms used herein shall have the same meanings as in the Separation Agreement.

Section 1.2 "<u>ADI Field of Use</u>" means any products of the ADI Business existing as of the Effective Date and natural evolutions thereof. For the avoidance of doubt, (a) an enhancement, modification or other change to any such product shall not be deemed a natural evolution thereof if such enhanced, modified or otherwise changed product embodies or is covered by a Valid Claim of a Patent that was not licensed to ADI SpinCo pursuant to this Agreement with respect to such product prior to the addition or implementation of such enhancement, modification or other change in or to such product, and (b) products of the ADI Business shall not include any product that (i) was not substantially designed or developed by and manufactured by or for a member of the ADI Group or (ii) is a third party product acquired or purchased by a member of the ADI Group for distribution or resale to customers or other third parties, including any such product acquired or purchased from a member of the Resideo Group.

Section 1.3 "<u>ADI Licensed Copyrights</u>" means the Copyrights that are (a) owned or Licensable by the ADI Group as of the Distribution Date and (b) used in the Resideo Retained Business as of the Distribution Date.

Section 1.4 "<u>ADI Licensed IP</u>" means the ADI Licensed Copyrights, ADI Licensed Know-How and ADI Licensed Patents, excluding any rights in or to any Trademarks.

Section 1.5 "<u>ADI Licensed Know-How</u>" means the Know-How that is (a) owned or Licensable by the ADI Group as of the Distribution Date and (b) used in the Resideo Retained Business as of the Distribution Date.

Section 1.6 "<u>ADI Licensed Patents</u>" means (a) the Patents that are (i) owned or Licensable by the ADI Group as of the Distribution Date and (ii) used in the Resideo Retained Business as of the Distribution Date, and (b) all Valid Claims of other Patents that are owned by the ADI Group that claim priority to the Patents described in the foregoing clause (a), but (c) expressly excluding the ADI Licensed Video Patents.

Section 1.7 "<u>ADI Licensed Video Patents</u>" means (a) the Patents set forth on <u>Schedule A</u> hereto and (b) all Valid Claims of other Patents that are owned by the ADI Group and claim priority to the Patents set forth on <u>Schedule A</u> hereto.

Section 1.8 "<u>Copyrights</u>" means copyrights and any similar Intellectual Property in any copyrightable subject matter, excluding Know-How.

Section 1.9 "<u>Field of Use</u>" means (a) with respect to ADI SpinCo, the ADI Field of Use and (b) with respect to Resideo, the Resideo Field of Use.

Section 1.10 "<u>Licensable</u>" means, with respect to any Intellectual Property, the right to grant sublicenses to a Person within the scope of the licenses set forth in Section 2.1 or Section 2.2, as applicable, without (a) the requirement to obtain consent from, give notice to, or take any other action with respect to any third party or (b) incurring fees, royalties, Liabilities or other costs in connection with such sublicense.

Section 1.11 "<u>Licensed Copyrights</u>" means (a) the Copyrights included in the ADI Licensed IP, as licensed to Resideo hereunder, and (b) the Copyrights included in the Resideo Licensed IP, as licensed to ADI SpinCo hereunder.

Section 1.12 "<u>Licensed IP</u>" means (a) the ADI Licensed IP, as licensed to Resideo hereunder, and (b) the Resideo Licensed IP, as licensed to ADI SpinCo hereunder.

Section 1.13 "<u>Licensed Know-How</u>" means (a) the Know-How included in the ADI Licensed IP, as licensed to Resideo hereunder, and (b) the Know-How included in the Resideo Licensed IP, as licensed to ADI SpinCo hereunder.

Section 1.14 "<u>Licensee</u>" means (a) Resideo, with respect to the ADI Licensed IP, and (b) ADI SpinCo, with respect to the Resideo Licensed IP.

Section 1.15 "<u>Licensor</u>" means (a) ADI SpinCo, with respect to the ADI Licensed IP, and (b) Resideo, with respect to the Resideo Licensed IP.

Section 1.16 "<u>Licensor IP</u>" means (a) with respect to ADI SpinCo, the ADI Licensed IP, and (b) with respect to Resideo, the Resideo Licensed IP.

Section 1.17 "<u>Licensed Video Patents</u>" means (a) with respect to ADI SpinCo, the ADI Licensed Video Patents, and (b) with respect to Resideo, the Resideo Licensed Video Patents.

Section 1.18 "<u>Resideo Field of Use</u>" means the current and future businesses of the Resideo Group.

Section 1.19 "<u>Resideo Licensed Copyrights</u>" means the Copyrights that are (a) owned or Licensable by the Resideo Group as of the Distribution Date and (b) used in the ADI Business as of the Distribution Date.

Section 1.20 "<u>Resideo Licensed IP</u>" means the Resideo Licensed Copyrights, Resideo Licensed Know-How and Resideo Licensed Patents, excluding any rights in or to any Trademarks.

Section 1.21 "<u>Resideo Licensed Know-How</u>" means the Know-How that is (a) owned or Licensable by the Resideo Group as of the Distribution Date and (b) used in the ADI Business as of the Distribution Date.

Section 1.22 "<u>Resideo Licensed Patents</u>" means (a) the Patents that are (i) owned or Licensable by the Resideo Group as of the Distribution Date and (ii) used in the ADI Business as of the Distribution Date, and (b) all Valid Claims of other Patents that are owned by the Resideo Group that claim priority to the Patents described in the foregoing clause (a), but (c) expressly excluding the Resideo Licensed Video Patents.

Section 1.23 "<u>Resideo Licensed Video Patents</u>" means (a) the Patents set forth on <u>Schedule B</u> hereto and (b) all Valid Claims of other Patents that are owned by the Resideo Group and claim priority to the Patents set forth on <u>Schedule B</u> hereto.

Section 1.24 "<u>Valid Claim</u>" means a claim of an issued and unexpired Patent that (a) has not been revoked or held unenforceable or invalid by a decision of a court or other Governmental Entity of competent jurisdiction from which no appeal can be taken or has been taken within the time allowed for appeal and (b) has not been abandoned, disclaimed, denied or admitted to be invalid or unenforceable through reissue or disclaimer or otherwise in such country.

Section 1.25 "<u>Video Field of Use</u>" means the use of video in SMB, light commercial or residential applications solely in security or monitoring applications.

Article II<u><br> GRANTS OF RIGHTS</u>

Section 2.1 <u>License to Resideo</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) Subject to the terms and conditions of this Agreement, ADI SpinCo hereby grants, and shall cause the other members of the ADI Group to grant, to Resideo (i) a non-exclusive, worldwide, non-transferable, perpetual, irrevocable, non-terminable, fully paid-up, royalty-free license to the ADI Licensed Copyrights and the ADI Licensed Know-How, in each case, in the Resideo Field of Use, with the right to sublicense in the Resideo Field of Use by Resideo and the other members of the Resideo Group but not for the independent use of or by third parties, (ii) a non-exclusive, worldwide, non-transferable, perpetual, irrevocable, non-terminable, fully paid-up, royalty-free license to the ADI Licensed Video Patents in the Video Field of Use, with the right to sublicense in the Video Field of Use by Resideo and the other members of the Resideo Group but not for the independent use of or by third parties, and (iii) in the event that the express terms of Section 2.1(b) are fully satisfied, a springing non-exclusive, worldwide, non-transferable, perpetual, irrevocable, non-terminable, fully paid-up, royalty-free license to the ADI Licensed Patents, in the Resideo Field of Use, with the right to sublicense in the Resideo Field of Use by Resideo and the other members of the Resideo Group but not for the independent use of or by third parties ((i), (ii) and (iii) collectively, the "<u>Resideo License</u>"). Subject to the terms and conditions of this Agreement, the Resideo License shall include (x) the right to exercise any and all rights in and to the ADI Licensed Copyrights and the ADI Licensed Know-How, in each case, in the Resideo Field of Use, including the right to use, copy, perform, display, render, develop, modify and make derivative works of the ADI Licensed Copyrights and the ADI Licensed Know-How within the Resideo Field of Use, (y) the right to exercise any and all rights in and to the ADI Licensed Video Patents in the Video Field of Use, including the right to make, have made, use, sell, offer for sale, export and import products or services under the ADI Licensed Video Patents in the Video Field of Use, and (z) in the event that the express terms of Section 2.1(b) are fully satisfied, the right to exercise any and all rights in and to the ADI Licensed Patents in the Resideo Field of Use, including the right to make, have made, use, sell, offer for sale, export and import any products, services or technologies under the ADI Licensed Patents in the Resideo Field of Use. For the avoidance of doubt, no rights or licenses are granted to ADI Licensed Patents unless and until the express requirements set forth in Section 2.1(b) are fully satisfied.

&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) If, after the Distribution Date, ADI SpinCo or any other member of the ADI Group asserts any Patent against Resideo, any other member of the Resideo Group, or any of their respective bona fide customers, partners or suppliers that are subject to a written agreement (including, for the avoidance of doubt, any purchase order or similar document) with Resideo or any other member of the Resideo Group on the date of such assertion, and such Patent constitutes an ADI Licensed Patent, such Patent shall automatically be included in the license granted in Section 2.1(a), effective as of the Distribution Date, and ADI SpinCo shall reimburse Resideo and the other members of the Resideo Group for any reasonable and documented out of pocket costs borne by Resideo or the other members of the Resideo Group in connection with any such assertion of such ADI Licensed Patent by ADI SpinCo or any other member of the ADI Group against Resideo or any other member of the Resideo Group.

Section 2.2 <u>License to ADI SpinCo.</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) Subject to the terms and conditions of this Agreement, Resideo hereby grants, and shall cause the other members of the Resideo Group to grant, to ADI SpinCo (i) a non-exclusive, worldwide, non-transferable, perpetual, irrevocable, non-terminable, fully paid-up, royalty-free license to the Resideo Licensed Copyrights and Resideo Licensed Know-How, in each case, in the ADI Field of Use, with the right to sublicense in the ADI Field of Use by ADI SpinCo and the other members of the ADI Group but not for the independent use of or by third parties, (ii) a non-exclusive, worldwide, non-transferable, perpetual, irrevocable, non-terminable, fully paid-up, royalty-free license to the Resideo Licensed Video Patents in the Video Field of Use, with the right to sublicense in the Video Field of Use by ADI SpinCo and the other members of the ADI Group but not for the independent use of or by third parties, and (iii) in the event that the express terms of Section 2.2(b) are fully satisfied, a springing non-exclusive, worldwide, non-transferable, perpetual, irrevocable, non-terminable, fully paid-up, royalty-free license to the Resideo Licensed Patents, in the ADI Field of Use, with the right to sublicense in the ADI Field of Use by ADI SpinCo and the other members of the ADI Group but not for the independent use of or by third parties ((i), (ii) and (iii) collectively, the "<u>ADI License</u>"). Subject to the terms and conditions of this Agreement, the ADI License shall include (x) the right to exercise any and all rights in and to the Resideo Licensed Copyrights and the Resideo Licensed Know-How, in each case, in the ADI Field of Use, including the right to use, copy, perform, display, render, develop, modify and make derivative works of the Resideo Licensed Copyrights and the Resideo Licensed Know-How within the ADI Field of Use, (y) the right to exercise any and all rights in and to the Resideo Licensed Video Patents in the Video Field of Use, including the right to make, have made, use, sell, offer for sale, export and import products or services under the Resideo Licensed Video Patents in the Video Field of Use, and (z) in the event that the express terms of Section 2.2(b) are fully satisfied, the right to exercise any and all rights in and to the Resideo Licensed Patents in the ADI Field of Use, including the right to make, have made, use, sell, offer for sale, export and import products or services under the Resideo Licensed Patents in the ADI Field of Use. For the avoidance of doubt, no rights or licenses are granted to Resideo Licensed Patents unless and until the requirements set forth in Section 2.2(b) are fully satisfied.

&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) If, after the Distribution Date, Resideo or any other member of the Resideo Group asserts any Patent against ADI SpinCo, any other member of the ADI Group, or any of their respective bona fide customers, partners or suppliers that are subject to a written agreement (including, for the avoidance of doubt, any purchase order or similar document) with ADI SpinCo or any other member of the ADI Group on the date of such assertion, and such Patent constitutes an Resideo Licensed Patent, such Patent shall automatically be included in the license granted in Section 2.2(a), effective as of the Distribution Date, and Resideo shall reimburse ADI SpinCo and the other members of the ADI Group for any reasonable and documented out of pocket costs borne by ADI SpinCo or any other member of the ADI Group in connection with any such assertion of such Resideo Licensed Patent by Resideo or any of its Affiliates against ADI SpinCo or any other member of the ADI Group.

Section 2.3 <u>Limitations</u>. Notwithstanding anything to the contrary herein, the licenses granted hereunder are subject to any rights of or obligations owed to any third party under any Contracts existing as of the Distribution Date between Licensor or any other member of its Group and any such third party.

Section 2.4 <u>No Other Rights</u>. Nothing herein shall be construed as either Party granting the other Party, by implication, estoppel or otherwise, any ownership, license or other right in, to or under any Intellectual Property of such Party, except for those rights and licenses expressly granted to a Party in this Agreement. Neither Party shall have any obligation to license or deliver to the other Party, by reason of this Agreement or otherwise, any improvements, modifications, updates, upgrades, enhancements, tangible embodiments or derivative works or additions to the Licensed IP, including any related technical information or materials of any kind, made by or on behalf of such Party or any other member of its Group after the Distribution Date. All other rights to each Party's Intellectual Property are reserved to such Party.

Article III

<u>OWNERSHIP</u>

Section 3.1 As between the Parties, Licensee acknowledges and agrees that (a) Licensor owns the Licensor IP, (b) none of Licensee, other members of its Group or its sublicensees, will acquire any rights in, to or under the Licensor IP, except for the licenses and sublicenses granted pursuant to Sections 2.1 or 2.2, as applicable, and (c) Licensee shall not, and shall cause the other members of its Group and its sublicensees to not, represent that they have an ownership interest in any of the Licensor IP.

Section 3.2 As between the Parties, each Party shall own all enhancements, improvements, derivative works or other modifications made by or on behalf of such Party with respect to the Licensed IP; provided that, with respect to Licensee, such enhancements, improvements, derivative works or other modifications shall not include, and shall be subject to the provisions of this Agreement as they concern, the Licensed IP to which such enhancements, improvements, derivative works or other modifications are made.

Article IV

<u>PROSECUTION, MAINTENANCE AND ENFORCEMENT</u>

Section 4.1 <u>Responsibility</u>. Licensor shall be solely responsible for filing, prosecuting, and maintaining all Patents within the Licensor IP, in Licensor's sole discretion. Licensor shall be responsible for any costs associated with filing, prosecuting and maintaining such Patents.

Section 4.2 <u>Defense and Enforcement</u>. Licensor shall have the sole right, but not the obligation, to elect to bring an Action or enter into settlement agreements regarding the Licensor IP, at Licensor's sole discretion, cost and expense.

Section 4.3 <u>No Additional Obligations</u>. This Agreement shall not obligate either Party to disclose or deliver to the other Party, or maintain, register, prosecute, pay for, enforce or otherwise manage any Intellectual Property, except as may be expressly set forth herein.

Article V

<u>Confidentiality</u>

Section 5.1 Each Licensee, on behalf of itself and the members of its respective Group, understands and agrees, that the Licensor IP includes certain confidential, non-public information of the Licensor, including, to the extent included in the Licensor IP, any software source code (all such confidential, non-public information, "<u>Confidential Information</u>"). Each Licensee agrees: (a) to take reasonable precautions to protect the Licensor's Confidential Information, with the same degree of care and in a manner consistent with the maintenance of such Licensee's own Confidential Information of a similar nature or value (but in no event less than reasonable care); and (b) not to disclose to any third party any such Confidential Information, except as reasonably necessary to exercise the rights and licenses granted to it under this Agreement.

Section 5.2 Each Licensor agrees that the provisions set forth in Section 5.1 do not apply with respect to any Confidential Information that the Licensee can document (i) is or becomes generally available to the public except as a result of a breach of this Article V or any other applicable obligation of confidentiality by the Licensee; (ii) was rightfully disclosed to it by a third party; or (iii) was independently developed without the use of or reference to any Confidential Information of the Licensor.

Section 5.3 Nothing in this Agreement shall prevent the Licensee from disclosing the Licensor's Confidential Information to the extent the Licensee is required by applicable Law to do so; provided, however, that prior to any such disclosure, the applicable Licensee shall (a) assert the confidential nature of the Confidential Information to the agency, (b) to the extent permitted by applicable Law, promptly notify the Licensor in writing of the agency's order or request to disclose, and (c) cooperate fully with the Licensor, at the Licensor's cost and expense, in protecting against any such disclosure or obtaining a protective order narrowing the scope of the compelled disclosure and protecting its confidentiality.

Section 5.4 No Licensee shall, with respect to any software included in the Licensor IP, (a) use, distribute or modify such software with, (b) link any such software to, or (c) include in or integrate with, or combine any such software with (in each case of (a) – (c), in whole or in part), any Open Source Software in any manner that could pursuant to the terms of the applicable Open Source Software license, (i) require disclosure of the source code to such licensed software or the release of any portion of such licensed software as Open Source Software (other than any pre-existing Open Source Software itself), in source code form, for the purpose of making derivative works, or at no or minimal charge; (ii) require the grant of any rights or immunities in, to or under any Licensor IP, or (iii) require the disclosure, distribution, licensing or other provision of any source code for such software to any third party. For the purpose of this Section 5.4, "<u>Open Source Software</u>" means any software that is distributed (x) as "free software" (as defined by the Free Software Foundation), (y) as "open source software" or pursuant to any license identified as an "open source license" by the Open Source Initiative (www.opensource.org/licenses), other license that substantially conforms to the Open Source Definition (opensource.org/osd) or any similar license or distribution model, or (z) under a license that requires source code or derivative works based on such software to be made publicly available under the same license.

Article VI

<u>disclaimerS; Limitation of Liability</u>

Section 6.1 <u>Disclaimer of Warranties</u>. Except as expressly set forth herein, the Parties acknowledge and agree that (a) the Licensor IP is provided as-is, (b) the Licensee assumes all risks and Liabilities arising from or relating to its use of and reliance upon the Licensor IP and (c) each Party makes no representation or warranty with respect thereto. EACH PARTY HEREBY EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY AND ALL CONDITIONS OR WARRANTIES OF ANY KIND OR NATURE REGARDING THE LICENSOR IP, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY REPRESENTATION OR WARRANTY IN REGARD TO QUALITY, PERFORMANCE, TITLE, NONINFRINGEMENT, MISAPPROPRIATION, VALIDITY, ENFORCEABILITY, COMMERCIAL UTILITY OR MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

Section 6.2 <u>Compliance with Laws and Regulations</u>. Each Party shall be responsible for its own compliance with any and all Laws applicable to its performance under this Agreement. FOR THE AVOIDANCE OF DOUBT AND NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, EACH PARTY EXPRESSLY DISCLAIMS ANY EXPRESS OR IMPLIED OBLIGATION OR WARRANTY WITH RESPECT TO THE LICENSOR IP THAT COULD BE CONSTRUED TO REQUIRE LICENSOR TO PROVIDE LICENSOR IP HEREUNDER IN SUCH A MANNER TO ALLOW LICENSEE TO ITSELF COMPLY WITH ANY LAW APPLICABLE TO THE ACTIONS OR FUNCTIONS OF SUCH LICENSEE (OR ITS AFFILIATES).

Section 6.3 TO THE EXTENT NOT PROHIBITED BY LAW, IN NO EVENT SHALL EITHER PARTY OR ITS AFFILIATES BE LIABLE FOR PERSONAL INJURY, OR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES WHATSOEVER, INCLUDING DAMAGES FOR LOSS OF PROFITS OR ANY OTHER COMMERCIAL DAMAGES OR LOSSES, ARISING OUT OF OR RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT.

Article VII<u><br> MISCELLANEOUS PROVISIONS</u>

Section 7.1 <u>Term</u>. The term of this Agreement shall commence as of the Distribution Date and shall continue in perpetuity until there no longer exists any valid or enforceable Licensed IP. Following the Effective Time, this Agreement may not be terminated unless agreed to in writing by the Parties. This Agreement may be terminated at any time prior to the Effective Time by and in the sole discretion of Resideo without the approval of ADI SpinCo or the stockholders of Resideo. In the event of such termination prior to the Effective Time, no Party (nor any of its directors, officers or employees) shall have any liability of any kind to the other Party or any other Person by reason of this Agreement.

Section 7.2 <u>No Challenges</u>. Each Licensee acknowledges that, as between the Parties, the Licensor is the owner of the Licensor IP, and that ownership of the Licensor IP shall remain with the Licensor. No Licensee or any of its Affiliates shall, directly or indirectly, contest, dispute or challenge the validity or enforceability or the Licensor's sole ownership of the Licensor IP or, other than as required by any Governmental Entity, assist any third party in any such contest, dispute, or challenge.

Section 7.3 <u>Interpretation</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) The Parties have participated jointly in the negotiation and drafting of this Agreement. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the Party drafting or causing any instrument to be drafted.

&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) When a reference is made in this Agreement to an Article, Section or Exhibit such reference shall be to an Article or Section of, or Exhibit to, this Agreement unless otherwise indicated. Wherever the words "include," "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation." References to "dollar" or "$" contained herein are to United States Dollars (unless otherwise specified). The words "hereof," "herein," "hereto" and "hereunder" and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision 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) Titles and headings to Articles and 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. Unless otherwise indicated, all "Section" references in this Agreement are to sections of this Agreement.

Section 7.4 <u>Entire Agreement; Construction</u>. This Agreement 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.

Section 7.5 <u>Amendments</u>. No provisions of this Agreement shall be deemed waived, amended, supplemented or modified by a Party, unless such waiver, amendment, supplement or modification is in writing and signed by the authorized representatives of the Party against whom it is sought to enforce such waiver, amendment, supplement or modification.

Section 7.6 <u>No Waiver</u>. 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 or thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

Section 7.7 <u>Governing Law</u>. This Agreement and any dispute arising 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 7.8 <u>Notices</u>. All notices, requests, claims, demands and other communications under this Agreement shall be in English, shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by overnight courier service, by email or by facsimile with receipt confirmed (followed by delivery of an original via overnight courier service) to the respective Party at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 7.8):

To Resideo:

Resideo Technologies, Inc.

16100 N. 71st Street, Suite 550

Scottsdale, Arizona 85254

Attention: [●]

Email: [●]

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

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019

Attention: Russell L. Leaf

&nbsp;&nbsp;&nbsp;&nbsp;Jared Fertman

&nbsp;&nbsp;&nbsp;&nbsp;Tej Prakash

Email: rleaf@willkie.com

&nbsp;&nbsp;&nbsp;&nbsp;jfertman@willkie.com

&nbsp;&nbsp;&nbsp;&nbsp;tprakash@willkie.com

To ADI SpinCo:

ADI Global Distribution Inc.<br> 275 Broadhollow Rd Suite 400<br> Melville, NY 11747

Attention: [●]

Email: [●]

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

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019

Attention: Russell L. Leaf

&nbsp;&nbsp;&nbsp;&nbsp;Jared Fertman

&nbsp;&nbsp;&nbsp;&nbsp;Tej Prakash

Email: rleaf@willkie.com

&nbsp;&nbsp;&nbsp;&nbsp;jfertman@willkie.com

&nbsp;&nbsp;&nbsp;&nbsp;tprakash@willkie.com

Section 7.9 <u>Assignment</u>. Except as otherwise provided in this Agreement, neither Party shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the other Party and any such attempted assignment without such prior written consent shall be void and of no force and effect. This Agreement shall inure to the benefit of and shall be binding upon the successors and permitted assigns of each Party. Notwithstanding the foregoing or anything else to the contrary in this Agreement or the Separation Agreement, (a) either Party may assign this Agreement (i) to any of its Affiliates, (ii) in connection with the sale of all or substantially all of the assets of such Party or any of its Affiliates related to the subject matter of this Agreement or the acquisition of a Party or any of its Affiliates by another Person, whether by merger, sale of membership interests or capital stock or otherwise, or (iii) for collateral security purposes to any lenders, potential lenders and other customary secured parties providing financing, hedging or cash management arrangements to a Party or any of its Affiliates, in each case, without the prior written consent of the other Party, and (b) in the event that a Licensee sells, transfers, assigns, or otherwise divests all or substantially all of a business unit or product line in which the Licensor's Licensed Copyrights, Licensed Know-How or Licensed Video Patents are utilized (a "<u>Divested Product Line</u>"), whether by asset sale, stock sale, merger, or similar transaction (a "<u>Divestiture</u>"), the license granted herein to such Licensee with respect to such Licensed Copyrights, Licensed Know-How or Licensed Video Patents shall automatically transfer to and vest in the acquiring entity solely with respect to such Divested Product Line, without the need for any further consent or action by the applicable Licensor. Any license transferred to an acquiring entity pursuant to <u>clause (b)</u> above shall be limited solely to the scope of the license granted to Licensee, including the Field of Use, with respect to the Divested Product Line and shall remain subject to all terms and conditions of this Agreement. For the avoidance of doubt, upon the effectiveness of any license transfer in connection with a Divestiture pursuant to <u>clause (b)</u> above, the transferring Licensee shall have no further rights or licenses in or to the Licensed Copyrights, Licensed Know-How or Licensed Video Patents with respect to the Divested Product Line. 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 assigns.

Section 7.10 <u>Severability</u>. In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or impaired thereby. The Parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions, the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

Section 7.11 <u>Dispute Resolution</u>. The provisions of Article VII of the Separation Agreement shall govern any Dispute under or in connection with this Agreement.

Section 7.12 <u>Bankruptcy</u>. The rights and licenses granted in this ‎Agreement are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the United States Bankruptcy Code, a license of rights to "intellectual property" (as defined under Section 101 of the United States Bankruptcy Code), and each Party shall retain and may fully exercise all of its respective rights and elections under the United States Bankruptcy Code (or any similar foreign applicable Law) with respect thereto.

Section 7.13 <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 Time, to the extent such Subsidiary remains a Subsidiary of the applicable Party.

Section 7.14 <u>Specific Performance</u>. The Parties acknowledge and agree that a breach or threatened breach of this Agreement may give rise to irreparable harm to the non-breaching Party, for which monetary damages may not be an adequate remedy, and that in the event of a breach or a threatened breach by a Party of this Agreement, the non-breaching Party shall, in addition to any and all other rights and remedies that may be available regarding such breach, be entitled to equitable relief, including a temporary restraining order, injunction, specific performance and any other relief that may be available from a court of competent jurisdiction, without any requirement to post bond or provide any other security in connection therewith.

Section 7.15 <u>Counterparts</u>. This Agreement may be executed in more than one counterpart, all of which shall be considered one and the same agreement, 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.

[Signature Page Follows]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day and year first above written.

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|:---|
| **RESIDEO TECHNOLOGIES, INC.** |
| By: |
| Name: |
| Title: |

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|:---|
| **ADI GLOBAL DISTRIBUTION INC.** |
| By: |
| Name: |
| Title: |

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## Exhibit 10.5

**Exhibit 10.5**

**2026 Stock Incentive Plan<br> of<br> ADI Global Distribution Inc.<br> and Its Affiliates**

**<u>Article I</u><br>Establishment and Purpose**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 **Purpose**. The purpose of this 2026 Stock Incentive Plan of ADI Global Distribution Inc. and its Affiliates (as the same may be amended and restated from time to time, the "**Plan**") is to enable the Company to achieve superior financial performance, as reflected in the performance of its Common Stock and other key financial or operating indicators by (a) providing incentives and rewards to certain Employees and Other Service Providers who are in a position to contribute materially to the success and long-term objectives of the Company, (b) aiding in the recruitment and retention of Employees and Other Service Providers of exceptional ability, (c) providing Employees and Other Service Providers an opportunity to acquire or expand equity interests in the Company, (d) promoting the growth and success of the Company's business by aligning the financial interests of Employees and Other Service Providers with that of the other stockholders of the Company and (e) providing certain compensation to eligible directors of the Company and encouraging the highest level of director performance by providing such directors with a proprietary interest in the Company's success and progress by granting them stock-based awards. Towards these objectives, the Plan provides for the grant of Stock Options, Stock Appreciation Rights, Restricted Stock Units, Restricted Stock, Other Stock-Based Awards, Cash-Based Awards and Adjusted Spin-Off Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 **Effective Date; Stockholder Approval**. The Plan is effective as of [●], 2026 (the "**Effective Date**"), which is the effective date of the Company's Registration Statement on Form 10 filed with the Securities and Exchange Commission in connection with the Spin-Off; <u>provided</u>, that the Plan shall have been adopted by the Board and approved by the Company's sole stockholder in accordance with the General Corporation Law of the State of Delaware and the rules of the New York Stock Exchange.

**<u>Article II</u><br>Definitions**

For purposes of the Plan, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 "**1933 Act**" means the Securities Act of 1933, as amended, and the regulations and interpretations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 "**Adjusted Spin-Off Award**" means an award originally granted as a Resideo Director DSU Award that is adjusted into an Award under this Plan upon the effective time of the Spin-Off under the "shareholder method" pursuant to the terms of the Employee Matters Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 "**Affiliate**" means (a) any subsidiary of the Company of which at least 50 percent of the aggregate outstanding voting common stock or capital stock is owned directly or indirectly by the Company, (b) any other parent of a subsidiary described in clause (a), or (c) any other entity in which the Company has a substantial ownership interest and which has been designated as an Affiliate by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 "**Award**" means any form of incentive or performance award granted under the Plan, whether singly or in combination, to a Participant by the Committee pursuant to any terms and conditions that the Committee may establish and set forth in the applicable Award Agreement. Awards granted under the Plan may consist of: (a) "Stock Options" awarded pursuant to Section ‎4.3; (b) "Stock Appreciation Rights" awarded pursuant to Section ‎4.3; (c) "Restricted Stock Units" awarded pursuant to Section ‎4.4; (d) "Restricted Stock" awarded pursuant to Section ‎4.4 (e) "Other Stock-Based Awards" awarded pursuant to Section ‎4.5; (f) "Cash-Based Awards" awarded pursuant to Section ‎4.6; and (g) "Adjusted Spin-Off Awards pursuant to Section 4.9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 "**Award Agreement**" means the document issued, either in writing or an electronic medium, to a Participant evidencing the grant of an Award and that sets out the terms and conditions of such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 "**Board**" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 "**Cash-Based Award**" means an award issued pursuant to Section 4.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 "**Cause**" has the meaning assigned to such term in any severance plan of the Company or an Affiliate, in each case, that is applicable to such Participant as of immediately prior to the Termination of Service; <u>provided</u>, that if no such agreement exists, or if such term is not defined in such agreement, "Cause" means any of the following: (i) clear evidence of a significant violation of the Company's Code of Business Conduct; (ii) a fraud committed against the Company; (iii) the misappropriation, embezzlement or reckless or willful destruction of Company property; (iv) the willful failure to perform, or gross negligence in the performance of, duties; (v) the conviction (treating a nolo contendere plea as a conviction) of a felony (whether or not any right to appeal has been or may be exercised); (vi) the knowing falsification of any records or documents of the Company; (vii) a significant breach of any statutory or common law duty of loyalty to the Company; (viii) intentional and improper conduct significantly prejudicial to the business of the Company; (ix) the failure to cooperate fully in a Company investigation or the failure to be fully truthful when providing evidence or testimony in such investigation; or (x) the violation of Company rules and policies that, based on a single occurrence, might not meet the significance thresholds of (i), (vii) or (viii) above, but that shall, for purposes of such significance thresholds, be deemed to constitute a violation thereof in the event any such violation occurs more than once. Cause shall be determined by the Committee for Reporting Persons and Non-Employee Directors or by the Company for all other Participants, in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 "**Change in Control**" means (a) any one person, or more than one person acting as a group (as defined under U.S. Department of Treasury Regulation ("**Treasury Regulation**") § 1.409A-3(i)(5)(v)(B)) acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of the Company; or (b) any one person, or more than one person acting as a group (as defined under Treasury Regulation § 1.409A-3(i)(5)(v)(B)) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing 30 percent or more of the total voting power of the stock of the Company; or (c) a majority of members of the Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or election; or (d) any one person, or more than one person acting as a group (as defined in Treasury Regulation § 1.409A-3(i)(5)(v)(B)) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company and its subsidiaries on a consolidated basis that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all of the assets of the Company and its subsidiaries on a consolidated basis immediately before such acquisition or acquisitions. For purposes of clause (d), "**gross fair market value**" means the value of the assets of the Company and its subsidiaries on a consolidated basis, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. The foregoing clauses (a) through (d) shall be interpreted in a manner that is consistent with the Treasury Regulations promulgated pursuant to Section 409A of the Code so that all, and only, such transactions or events that could qualify as a "change in control event" within the meaning of Treasury Regulation § 1.409A-3(i)(5)(i) shall be deemed to be a Change in Control for purposes of this Plan. For the avoidance of doubt, the Spin-Off will not constitute a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 "**Code**" means the Internal Revenue Code of 1986, as amended, and the regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 "**Committee**" means the compensation committee of the Board or any successor committee or subcommittee of the Board or other committee or subcommittee designated by the Board, which committee or subcommittee is comprised solely of two or more persons who are Non-Employee Directors within the meaning of Rule 16b-3(b)(3) under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 "**Common Stock**" means the common stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 "**Company**" means ADI Global Distribution Inc. and its successors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 "**Disabled**" and "**Disability**", with respect to a Participant, have the meanings assigned to such terms under the long-term disability plan maintained by the Company or an Affiliate in which such Participant is covered at the time the determination is made, and if there is no such plan, mean the permanent inability as a result of accident or sickness to perform any and every duty pertaining to such Participant's occupation or employment for which the Participant is suited by reason of the Participant's previous training, education and experience; <u>provided</u>, that, to the extent an Award subject to Section 409A of the Code shall become payable upon a Participant's Disability, a Disability shall not be deemed to have occurred for such purposes unless the circumstances would also result in a "disability" within the meaning of Section 409A of the Code, unless otherwise provided in an Award Agreement; <u>provided</u>, <u>further</u>, that with respect to a Non-Employee Director, "Disability" has the meaning given to such term in the Non-Employee Director's Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 "**Dividend Equivalent**" means an Award entitling the grantee to an amount equal to the cash dividend or the Fair Market Value of the stock dividend that would be paid on each Share underlying an Award if the Share were duly issued and outstanding on the date on which the dividend is payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 "**Employee**" means any individual who performs services as an employee of the Company or an Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 "**Employee Matters Agreement**" means the Employee Matters Agreement entered into between the Company and Resideo in connection with the Spin-Off.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 "**Exchange Act**" means the Securities Exchange Act of 1934, as amended, and the regulations and interpretations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 "**Executive Level Employee**" means any individual who is designated as an officer of the Company by the Board, whether or not that individual is in a direct reporting relationship to the Company's Chief Executive Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 "**Exercise Price**" means the price of a Share, as fixed by the Committee, that may be purchased under a Stock Option or with respect to which the amount of any payment pursuant to a Stock Appreciation Right is determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 "**Fair Market Value**" means, except as otherwise provided in the applicable Award Agreement, (a) with respect to any property other than Shares, the fair market value of such property determined by such methods or procedures as shall be established from time to time by the Committee and (b) with respect to Shares, as of any date, (i) the average (mean) of the highest and lowest sales prices of a Share, as reported on the New York Stock Exchange (or any other reporting system selected by the Committee, in its sole discretion) on the date as of which the determination is being made or, if no sale of Shares is reported on this date, on the most recent preceding day on which there were sales of Shares reported or (ii) in the event there shall be no public market for the Shares on such date, the fair market value of the Shares as determined in good faith by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 "**Good Reason**" has the meaning assigned to such term in any written individual agreement between the Company or an Affiliate and the Participant in which such term is defined and in the absence of any such written agreement, has the meaning assigned to such term in any severance plan of the Company or an Affiliate, in each case, that is applicable to such Participant, in each case, as of immediately prior to the Change in Control (but assuming that a Change in Control has occurred for purposes of such agreement or plan); <u>provided</u>, that if no such agreement exists, or if such term is not defined in such agreement, "Good Reason" means, without the Participant's consent, (a) a material reduction in the Participant's base salary and, as to a Participant who is an Executive Level Employee, annual target bonus in effect immediately prior to the Change in Control (other than a reduction that is generally applicable to all salaried and non-union hourly employees of the Company); (b) the permanent elimination of the Participant's position, not including a transfer pursuant to the sale of a facility or line of business, <u>provided</u> the Participant is offered substantially comparable employment with the successor employer; (c) in the case of a Participant who is an Executive Level Employee, a material adverse change to the Participant's position, function, responsibilities or reporting level, or in the standard of performance required of the Participant, as determined immediately prior to a Change in Control; (d) a material change in the geographic location at which the Participant must perform his or her services from the location the Participant was required to perform such services immediately prior to a Change in Control; or (e) an action by the Company that under applicable law constitutes constructive discharge. Notwithstanding the foregoing, Good Reason shall not be deemed to have occurred unless the Participant provides written notice to the Company identifying the event or omission constituting the reason for a Good Reason termination within ninety (90) days following the first occurrence of such event or omission. Within thirty (30) days after such notice has been provided to the Company, the Company shall have the opportunity, but shall have no obligation, to cure such event or conditions that give rise to a Good Reason termination. If the Company fails to cure the events or conditions giving rise to a Participant's Good Reason termination by the end of the thirty (30) day cure period, the Participant's employment shall be terminated effective as of the expiration of such thirty (30) day cure period unless the Participant has withdrawn such Good Reason termination notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 "**Incentive Stock Option**" means a Stock Option granted under Section 4.3 of the Plan that meets the requirements of Section 422 of the Code and is designated in the Award Agreement to be an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23 "**Non-Employee Director**" means any member of the Board, elected or appointed, who is not an Employee. An individual who is elected to the Board at a meeting of the stockholders of the Company shall be deemed to be a member of the Board as of the date of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24 "**Nonqualified Stock Option**" means any Stock Option granted under Section 4.3 of the Plan that is not an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.25 "**Other Service Provider**" means an individual providing services to the Company as an independent contractor or consultant and who is not an Employee or a Non-Employee Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26 "**Other Stock-Based Award**" means an Award granted under Section 4.5 and denominated in Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.27 "**Participant**" means a person designated to receive an Award under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.28 "**Reporting Person**" means an Employee who is subject to the reporting requirements of Section 16(a) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.29 "**Resideo**" means Resideo Technologies, Inc., the sole stockholder of the Company prior to the Spin-Off.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.30 "**Resideo Board**" means the Board of Directors of Resideo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.31 "**Resideo Director DSU Award**" has the meaning given to such term in the Employee Matters Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.32 "**Restricted Stock**" means Shares issued pursuant to Section 4.4 that are subject to any restrictions that the Committee, in its discretion, may impose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.33 "**Restricted Stock Unit**" means a right granted under Section 4.4 to acquire Shares or an equivalent amount in cash that is subject to any restrictions that the Committee, in its discretion, may impose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.34 "**Retirement**" means, with respect to Employees and Other Service Providers, except as otherwise determined by the Committee or as required by local law applicable to such Participant, the Termination of Service on or after attainment of age 55 with 10 years of service with the Company and its Affiliates (including service with Resideo or any of its subsidiaries (or any predecessor thereto) prior to the Spin-Off to the extent provided under the Employee Matters Agreement), other than on account of an involuntary Termination of Service for Cause, <u>provided</u>, <u>however</u>, that such Participant has advised the Company's corporate secretary in writing no less than six (6) months prior to such Retirement that he or she is considering retirement. For purposes of this Section, "years of service" is determined using the Participant's most-recent adjusted service date, as reflected at the Participant's Termination of Service in the Company's records. Notwithstanding any provision to the contrary in this Plan or any Award Agreement, any continued or extended vesting and/or exercise period that would otherwise be available upon a Participant's Retirement under an Award granted on or after the Effective Date shall not apply to any such Awards granted to any Participant resident in any country where a continued or extended vesting and/or exercise period due to Retirement would violate age discrimination rules and regulations. The provisions of this Plan relating to Retirement (including, without limitation, continued vesting, pro rata vesting, and extended exercise periods upon Retirement) shall have no application to Awards granted to Non-Employee Directors. The terms and conditions applicable to a Non-Employee Director's cessation of service shall be exclusively as set forth in the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.35 "**Share**" means a share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.36 "**Spin-Off**" means the distribution of all the outstanding shares of Common Stock to stockholders of Resideo in 2026 pursuant to the Separation and Distribution Agreement between the Company and Resideo entered into in connection with such distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.37 "**Stock Appreciation Right**" means a right granted under Section 4.3 to an amount in cash or a number of Shares with a Fair Market Value equal to the excess of the Fair Market Value of the Shares on the date on which the Stock Appreciation Right is exercised over the applicable Exercise Price (with any fractional Shares treated in accordance with Section 5.5).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.38 "**Stock Option**" means a right granted under Section 4.3 to purchase from the Company a stated number of Shares at the applicable Exercise Price. Stock Options awarded under the Plan may be in the form of Incentive Stock Options or Nonqualified Stock Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.39 "**Termination of Service**" means, with respect to an Employee or Other Service Provider, the date of cessation of a Participant's provision, of services to the Company and its Affiliates for any reason, with or without Cause, as determined by the Company; <u>provided</u>, that a Participant will be deemed to have incurred a Termination of Service on the date that such Participant provides notice of termination to the Company and its Affiliates. Except as otherwise provided in an Award Agreement, (a) termination of service shall be determined without regard to any statutory or contractual notice periods for termination of employment, dismissal, redundancy, and similar events, and (b) if an Employee's employment is terminated under circumstances that entitle the Employee to severance benefits pursuant to any applicable severance plan of the Company or an Affiliate in which the Employee participates, the Employee's employment relationship with the Company and its Affiliates shall cease on the day prior to the date that severance benefits become payable under the terms of the applicable severance plan without regard to any delay in payment required by Section 409A of the Code. Notwithstanding the foregoing, (x) if an Affiliate ceases to be an Affiliate while an Award granted to a Participant who provides services to such Affiliate is outstanding, the Committee may, in its discretion, deem such Participant to have a Termination of Service on the date the Affiliate ceases to be an Affiliate or on a later date specified by the Committee; (y) the Committee shall make any determination described in clause (x) before or not more than a reasonable period after the date the Affiliate ceases to be an Affiliate; and (z) each such Participant's Termination of Service shall be treated as an involuntary termination not for Cause. With respect to a Participant who is a Non-Employee Director, "Termination of Service" means the date on which such Participant ceases to serve as a member of the Board for any reason. For purposes of clarification, any non-qualified deferred compensation (within the meaning of Section 409A of the Code) payable to the Participant upon a Termination of Service pursuant to the terms and conditions of this Plan shall be paid to the Participant upon a "separation from service" as determined in accordance with Section 409A of the Code without the imposition of additional taxes or penalties.

**<u>Article III</u><br>Administration**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 **The Committee**. The Plan shall be administered by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 **Authority of the Committee**. The Committee shall have authority, in its sole and absolute discretion and subject to the terms of the Plan, to (a) interpret the Plan; (b) prescribe the rules and regulations that it deems necessary for the proper operation and administration of the Plan, and amend or rescind any existing rules or regulations relating to the Plan; (c) select Employees, Non-Employee Directors and Other Service Providers to receive Awards under the Plan; (d) determine the form of Awards, the number of Shares subject to each Award, all the terms and conditions of an Award including, without limitation, the conditions on exercise or vesting, the designation of Stock Options as Incentive Stock Options or Nonqualified Stock Options and the terms of Award Agreements; (e) determine whether Awards shall be granted singly, in combination or in tandem; (f) establish and administer performance criteria in respect of any Awards that are subject to performance-based vesting or settlement; (g) waive or amend any terms, conditions, restrictions or limitations on an Award, except that the prohibition on the repricing of Stock Options and Stock Appreciation Rights, as described in Section 4.3(g), may not be waived; (h) in accordance with Article V, make any adjustments to the Plan (including but not limited to adjustment of the number of Shares available under the Plan or any Award) and any Award granted under the Plan that may be appropriate; (i) provide for the deferred payment of Awards and the extent to which payment shall be credited with Dividend Equivalents; (j) determine whether Awards may be transferable to family members, a family trust, a family partnership or otherwise; (k) determine whether, to what extent and under what circumstances Awards may be settled in cash, Shares or other property; (l) interpret, administer, reconcile any inconsistency in, correct any default in and/or supply any omission in, the Plan and any instrument or agreement relating to (including any Award Agreement), or Award made under, the Plan; (m) waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate any Award; (n) accelerate the vesting or exercisability of, payment for or lapse of restrictions on, Awards if the requirements of Section 4.8 are met, or in accordance with Section 5.4; (o) establish any provisions that the Committee may determine to be necessary in order to implement and administer the Plan in foreign countries; and (p) take any and all other actions it deems necessary or advisable for the proper operation or administration of the Plan; <u>provided</u>, that, with respect to Adjusted Spin-Off Awards, the Committee's authority and exercise of discretion pursuant to the Plan shall be subject to and consistent with the Employee Matters Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 **Effect of Determinations**. All determinations of the Committee shall be final, binding and conclusive on all persons having an interest in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 **Delegation of Authority**. The Committee, in its discretion and consistent with applicable law and regulations, may delegate its authority and duties under the Plan to one or more subcommittees of the Committee or to the Chief Executive Officer of the Company or any other individual or committee as it deems to be advisable, under any conditions and subject to any limitations that the Committee may establish. Only the Committee (or a subset thereof), however, shall have authority to grant and administer Awards to Reporting Persons, Non-Employee Directors and any delegate of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 **Employment of Advisors**. The Committee may select and employ attorneys, consultants, accountants and other advisors at the Company's expense (and may determine the compensation thereof), and the Committee, the Company, and the officers and directors of the Company may rely upon the advice, opinions or valuations of the advisors employed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 **No Liability**. No member of the Committee, nor any person acting as a delegate of the Committee with respect to the Plan, shall be liable for any losses resulting from any action taken or omitted to be taken, interpretation or construction made in good faith with respect to the Plan, any Award Agreement or any Award granted under the Plan.

**<u>Article IV</u><br>Awards**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 **Eligibility**. All Employees, Non-Employee Directors and such Other Service Providers as may be designated by the Committee from time to time, are eligible to receive Awards granted under the Plan, except as otherwise provided in this Article IV. Notwithstanding the foregoing, in connection with the Spin-Off and pursuant to the terms of the Employee Matters Agreement, certain holders of Resideo Director DSU Awards will receive Adjusted Spin-Off Awards, thereby becoming Participants in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 **Form of Awards**. Awards shall be in the form determined by the Committee, in its discretion, and shall be evidenced by an Award Agreement. Awards may be granted singly or in combination or in tandem with other Awards. Notwithstanding the forgoing, the Committee may in its discretion determine not to evidence one or more Adjusted Spin-Off Awards with an Award Agreement, and instead rely on the terms set forth in the award agreement evidencing the underlying Resideo Director DSU Award to which such Adjusted Spin-Off Award relates, as adjusted pursuant to the Employee Matters Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 **Stock Options and Stock Appreciation Rights**. The Committee may grant Stock Options and Stock Appreciation Rights under the Plan to those Employees, Non-Employee Directors and Other Service Providers whom the Committee may from time to time select, in the amounts and pursuant to the other terms and conditions that the Committee, in its discretion, may determine and set forth in the Award Agreement, subject to the provisions below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Form**. Stock Options granted under the Plan shall, at the discretion of the Committee and as set forth in the Award Agreement, be in the form of Incentive Stock Options, Nonqualified Stock Options, or a combination of the two. If an Incentive Stock Option and a Nonqualified Stock Option are granted to the same Participant under the Plan at the same time, the form of each shall be clearly identified, and they shall be deemed to have been granted in separate grants. In no event shall the exercise of one Award affect the right to exercise the other Award. Stock Appreciation Rights may be granted either alone or in connection with concurrently or previously issued Nonqualified Stock Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Exercise Price**. Other than with respect to Stock Options that are assumed, converted or substituted as a result of the acquisition of another company by the Company or an Affiliate or a combination of the Company or an Affiliate with another company, the Committee shall set the Exercise Price of Stock Options or Stock Appreciation Rights granted under the Plan at a price that is equal to or greater than the Fair Market Value of a Share on the date of grant, subject to adjustment as provided in Section 5.3. The Exercise Price of Incentive Stock Options, however, shall be equal to or greater than 110 percent of the Fair Market Value of a Share on the date of grant if the Participant receiving the Stock Options owns stock possessing more than 10 percent of the total combined voting power of all classes of stock of the Company or of any subsidiary or parent corporation of the Company, as defined in Section 424 of the Code. The Exercise Price of a Stock Appreciation Right granted in tandem with a Stock Option shall be equal to the Exercise Price of the related Stock Option. The Exercise Price of a Stock Option or Stock Appreciation Right shall be set forth in the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Term and Timing of Exercise**. Except as otherwise provided in an Award Agreement, Stock Options and Stock Appreciation Rights shall lapse not later than 10 years after the date of grant, as determined by the Committee at the time of grant. Except as otherwise provided in an Award Agreement or other subsequent agreement between a Participant and the Company or an Affiliate, each Stock Option or Stock Appreciation Right granted under the Plan shall be exercisable in whole or in part, subject to the following conditions:

&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) The date on which any Award of Stock Options or Stock Appreciation Rights to a Participant vest and may first be exercised shall be set forth in the Award Agreement, which must comply with Section 4.8.

&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) A Stock Appreciation Right granted in tandem with a Stock Option shall be subject to the same terms and conditions as the related Stock Option and shall be exercisable only to the extent that the related Stock Option is exercisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) With respect to Employees and Other Service Providers, Stock Options and Stock Appreciation Rights shall vest and remain exercisable as follows, subject to Section 5.4:

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| | | |
|:---|:---|:---|
| **Event** | **Vesting** | **Exercise Period for Vested Awards** |
| Death | Immediate vesting as of death (including if death occurs during any post-Retirement continued vesting period). | Expires earlier of (i) original expiration date, or (ii) 3 years after death (including if death occurs during any post-Retirement continued vesting period). |
| Disability | Immediate vesting as of Termination of Service due to the incurrence of Disability. | Expires earlier of (i) original expiration date, or (ii) 3 years after Termination of Service due to Disability. |
| Retirement\* | Unvested Awards continue to vest in accordance with original vesting schedule following Retirement. | Expires on the earlier of (i) original expiration date or (ii) 3 years after Retirement. |
| Voluntary Termination of Service (other than covered by Retirement) | Unvested Awards forfeited as of Termination of Service. | Expires earlier of (i) original expiration date, or (ii) 30 days after Termination of Service. |
| Involuntary Termination of Service not for Cause | Unvested Awards forfeited as of Termination of Service. | Expires earlier of (i) original expiration date, or (ii) 1 year after Termination of Service. |
| Involuntary Termination of Service for Cause | Unvested Awards forfeited as of Termination of Service. | Vested Awards immediately cancelled. |

---

\* Except as otherwise provided in an Award Agreement, if a Participant's Retirement results in the continued vesting of such Award, as a condition thereof the Participant agrees that for the remainder of any applicable continued vesting period, he or she shall: (x) remain available to provide service to the Company on an as-requested basis (which service, for purposes of compliance with Section 409A of the Code, shall not exceed 20% of the Participant's pre-Termination of Service level of Service to the Company) and (y) execute, in the discretion of the Company, a non-competition agreement in favor of the Company in the form provided by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) With respect to Non-Employee Directors, each such Participant's Award Agreement shall set forth the extent to which such Participant shall have the right to exercise a Stock Option or Stock Appreciation Right following termination of the Participant's service as a director of the Company (whether by death, Disability, retirement, or any other reason); <u>provided</u>, that, except as determined by the Committee or as set forth in an Award Agreement, unvested Awards will be forfeited as of any Termination of Service. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the applicable Award Agreement, subject to Section 3.2(e), need not be uniform among all Stock Options or Stock Appreciation Rights granted, and may reflect distinctions based on the reasons for 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;(v) Stock Options and Stock Appreciation Rights of a deceased Participant may be exercised only by the estate of the Participant or by the person given authority to exercise the Stock Options or Stock Appreciation Rights by the Participant's will or by applicable laws of descent and distribution. If a Stock Option or Stock Appreciation Right is exercised by the executor or administrator of a deceased Participant's estate, or by the person or persons to whom the Stock Option or Stock Appreciation Right has been transferred by the Participant's will or the applicable laws of descent and distribution, the Company shall be under no obligation to deliver Shares or cash until the Company is satisfied that the person exercising the Stock Option or Stock Appreciation Right is the duly appointed executor or administrator of the deceased Participant's estate or the person to whom the Stock Option or Stock Appreciation Right has been transferred by the Participant's will or by applicable laws of descent and distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Payment of Exercise Price**. The Exercise Price of a Stock Option must be paid in full when the Stock Option is exercised. Stock certificates shall be registered and delivered only upon receipt of payment. Payment of the Exercise Price may be made in cash or by certified check, bank draft, wire transfer, or postal or express money order. No portion of the Exercise Price of a Stock Option may be paid from the proceeds of a loan of cash from the Company to the Participant. In addition, the Committee may also permit payment of all or a portion of the Exercise Price to be made by any other method, <u>provided</u>, that, for Awards to Reporting Persons, permissible methods shall be set forth in the applicable Award Agreement, including:

&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) Delivering a properly executed exercise notice to the Company or its agent, together with irrevocable instructions to a broker to deliver promptly to the Company the amount of sale proceeds with respect to the portion of the Shares to be acquired having a Fair Market Value on the date of exercise equal to the sum of the applicable portion of the Exercise Price being so paid;

&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) Tendering (actually or by attestation) to the Company previously acquired Shares that have been held by the Participant for at least six months, subject to paragraph (d)(v), and that have a Fair Market Value on the day prior to the date of exercise equal to the applicable portion of the Exercise Price being so paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Instructing the Company to withhold Shares that would otherwise be issued having a Fair Market Value on the date of exercise equal to the applicable portion of the Exercise Price being so paid (<u>provided</u> such withholding has been expressly authorized by the Committee); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any combination of the methods described in paragraphs (i), (ii), and (iii).

&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) The Committee, in consideration of applicable accounting standards, may waive any holding period on Shares required to tender pursuant to paragraph (d)(ii) or prohibit withholding pursuant to paragraph (d)(iii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Incentive Stock Options**. Incentive Stock Options granted under the Plan shall be subject to the following additional conditions, limitations, and restrictions:

&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) **Eligibility**. Incentive Stock Options may be granted only to Employees of the Company or an Affiliate that is a subsidiary or parent corporation of the Company, within the meaning of Section 424 of the Code.

&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) **Timing of Grant**. No Incentive Stock Option shall be granted under the Plan after the 10-year anniversary of the date on which the Plan is adopted by the Board or, if earlier, the date on which the Plan is approved by the Company's sole stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **Amount of Award**. The aggregate Fair Market Value as of the date of grant of the Shares with respect to which the Incentive Stock Options awarded to any Participant first become exercisable during any calendar year may not exceed $100,000. For purposes of this $100,000 limit, the Participant's Incentive Stock Options under this Plan and all other plans maintained by the Company and its Affiliates shall be aggregated. To the extent any Incentive Stock Option would exceed the $100,000 limit, the Incentive Stock Option shall afterwards be treated as a Nonqualified Stock Option for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **Timing of Exercise**. If the Committee exercises its discretion in the Award Agreement to permit an Incentive Stock Option to be exercised by a Participant more than three months after the Participant has ceased being an Employee (or more than 12 months if the Participant is permanently and totally disabled, within the meaning of Section 22(e) of the Code), the Incentive Stock Option shall be treated as a Nonqualified Stock Option for all purposes following the date that is three months after the Participant has ceased being an Employee (or 12 months after the Participant is determined to be permanently and totally disabled, within the meaning of Section 22(e) of the Code). For purposes of this paragraph (e)(iv), an Employee's employment relationship shall be treated as continuing intact while the Employee is on military leave, sick leave, or another approved leave of absence if the period of leave does not exceed 90 days, or a longer period to the extent that the Employee's right to reemployment with the Company or an Affiliate is guaranteed by statute or by contract. Where the period of leave exceeds 90 days and the Employee's right to reemployment is not guaranteed by statute or contract, the employment relationship shall be deemed to have ceased on the 91st day of the leave.

&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) **Transfer Restrictions**. In no event shall the Committee permit an Incentive Stock Option to be transferred by a Participant other than by will or the applicable laws of descent and distribution, and any Incentive Stock Option awarded under this Plan shall be exercisable only by the Participant during the Participant's lifetime.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Exercise of Stock Appreciation Rights**. Upon exercise, Stock Appreciation Rights may be redeemed for cash or Shares or a combination of cash and Shares, in the discretion of the Committee, and as described in the Award Agreement. Cash payments shall be equal to the excess of the Fair Market Value of a Share on the date of exercise over the Exercise Price for each Share for which a Stock Appreciation Right was exercised. If the Stock Appreciation Right is redeemed for Shares, the Participant shall receive a number of Shares equal to the quotient of the cash payment amount divided by the Fair Market Value of a Share on the date of exercise (with any fractional Shares to be treated in accordance with Section 5.5).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Certain Prohibitions**. The following terms or actions shall not be permitted with respect to any Award of Stock Options or Stock Appreciation Rights:

&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) **No Repricing**. Except as otherwise provided in Section 5.3, in no event shall the Committee decrease the Exercise Price of a Stock Option or Stock Appreciation Right after the date of grant, or cancel outstanding Stock Options or Stock Appreciation Rights and grant replacement Stock Options or Stock Appreciation Rights with a lower Exercise Price than that of the replaced Stock Options or Stock Appreciation Rights or other Awards, or purchase underwater Stock Options from a Participant for cash or replacement Awards without first obtaining the approval of the Company's stockholders in a manner that complies with the rules of the New York Stock Exchange.

&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) **No Dividends or Dividend Equivalents**. The Committee shall not provide for the payment of Dividends or Dividend Equivalents with respect to Stock Options or Stock Appreciation Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **No Reload Options**. The Committee shall not grant Stock Options or Stock Appreciation Rights that have reload features under which the exercise of a Stock Option or Stock Appreciation Right by a Participant automatically entitles the Participant to a new Stock Option or Stock Appreciation Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **No Additional Deferral Features**. The Committee shall not grant Stock Options or Stock Appreciation Rights that have "additional deferral features" as described in Section 409A of the Code, thereby subjecting the Stock Option or Stock Appreciation Right to the requirements of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 **Restricted Stock Units and Restricted Stock**. The Committee may grant Restricted Stock Units and Restricted Stock under the Plan to those Employees, Non-Employee Directors and Other Service Providers whom the Committee may from time to time select, in the amounts and pursuant to the terms and conditions that the Committee, in its discretion, may determine and set forth in the Award Agreement, subject to the provisions below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Grant of Restricted Stock Units**. The Committee may grant Restricted Stock Units to any Employee, Non-Employee Director or Other Service Provider, which are denominated in, valued in whole or in part by reference to, or otherwise related to, Shares. The Committee shall determine, in its discretion, the terms and conditions that apply to Restricted Stock Units granted pursuant to this Section 4.4, including whether and how Dividend Equivalents shall be credited with respect to any Award. The terms and conditions of the Restricted Stock Units shall be set forth in the applicable Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Grant of Restricted Stock**. As soon as practicable after Restricted Stock has been granted, certificates for all Shares of Restricted Stock shall be registered in the name of the Participant and held for the Participant by the Company. The Participant shall have all rights of a stockholder with respect to the Shares, 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, must comply with Section 4.8 and, except as otherwise provided in Section 7.1, may not be sold, transferred, assigned, pledged or otherwise encumbered or disposed until the restrictions are satisfied or lapse.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Dividends and Dividend Equivalents**. Any dividends or Dividend Equivalents that are paid with respect to Shares or Restricted Stock will be subject to the same vesting restrictions as the Shares to which such dividends or distributions relate. Any dividends, Dividend Equivalents or distributions that are paid with respect to Restricted Stock Units will be subject to the same vesting restrictions as the Shares to which such dividends or distributions relate. Dividends and Dividend Equivalents related to Restricted Stock and Restricted Stock Units subject to performance-based vesting conditions will be subject to the same terms and conditions, including vesting conditions and the achievement of any applicable performance goals, as the original Award. Subject to the vesting restrictions above, the terms of any Dividend Equivalents will be as set forth in the applicable Agreement, including the time and form of payment and whether such Dividend Equivalents will be credited with interest or deemed to be reinvested in additional units or Share equivalents. The Committee may, in its discretion, provide in an Agreement for restrictions on dividends and Dividend Equivalents in addition to those specified in this Section 4.4(c). Notwithstanding anything herein to the contrary, with respect to any Restricted Stock Units subject to Section 409A of the Code, the payment of such dividends or Dividend Equivalents shall comply with Section 409A of the Code. The Committee shall determine any terms and conditions on deferral, including the rate of interest to be credited on deferrals and whether interest will be compounded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Vesting and Forfeiture**. The Committee may, in its discretion and as set forth in the Award Agreement, impose any restrictions on Restricted Stock Units and/or their related Dividend Equivalents or Restricted Stock that it deems to be appropriate, including conditioning the vesting or settlement of all or part of any such Awards on the achievement or satisfaction of performance criteria (any such Award, a "**Performance Stock Unit**" or "**Performance Restricted Stock**"), which must comply with Section 4.8. Except as otherwise provided in an Award Agreement or other subsequent agreement between a Participant and the Company or an Affiliate, the Restricted Stock Units, related Dividend Equivalents and Restricted Stock granted to Participants shall be subject to the following restrictions:

&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) **Vesting and Forfeiture**. Subject to Section 5.4, if the restrictions have not lapsed or been satisfied as of the Participant's Termination of Service, the Restricted Stock Units or Restricted Stock shall be forfeited by the Participant if the termination is for any reason other than death, Disability or Retirement.

&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) **Death or Disability**. Except for Restricted Stock Units and Restricted Stock granted subject to performance-based vesting conditions, all restrictions on Restricted Stock Units and any related Dividend Equivalents or Restricted Stock granted pursuant to this Section 4.4 shall lapse upon the Participant's death or Termination of Service due to Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **Retirement**. Restricted Stock Units and Restricted Stock granted to Employees and Other Service Providers are subject to the following provisions:

&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;i. Except for Restricted Stock Units and Restricted Stock granted subject to performance-based vesting conditions, upon a Participant's Retirement, all restrictions on Restricted Stock Units and any related Dividend Equivalents or Restricted Stock granted pursuant to this Section 4.4 shall lapse in accordance with the original vesting schedule of the Award, subject to the immediate lapse of all restrictions upon a Participant's death.

&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;ii. With respect to Restricted Stock Units and Restricted Stock granted subject to performance-based vesting conditions, upon a Participant's Retirement, all restrictions will lapse on a pro rata portion of the Restricted Stock Units and any related Dividend Equivalents or Restricted Stock granted pursuant to this Section 4.4 that would otherwise have been determined by the Committee to have been earned as of the end of the applicable performance period if the Participant's service had continued, with such pro rata portion determined by dividing the number of days between the first day of the performance period and the Retirement date, by the number of days in the applicable performance period.

&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;iii. Except as otherwise provided in an Award Agreement, if a Participant's Retirement results in an Award's continued vesting or pro rata vesting based on the Company's actual levels of achievement of the applicable performance metrics at the end of the performance period, as a condition thereof the Participant agrees that for the remainder of any applicable continued vesting period or actual performance period, he or she shall:

&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;(x) remain available to provide service to the Company on an as-requested basis (which service, for purposes of compliance with Section 409A of the Code, shall not exceed 20% of the Participant's pre-Termination of Service level of Service to the Company) and (y) execute, in the discretion of the Company, a non-competition agreement in favor of the Company in the form provided by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **Legend**. To enforce any restrictions that the Committee may impose on Restricted Stock, the Committee shall cause a legend referring to the restrictions to be placed on all certificates for Shares of Restricted Stock. When restrictions lapse or are satisfied, a new certificate, without the legend, for the number of Shares with respect to which restrictions have lapsed or been satisfied shall be issued and delivered to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Redemption of Restricted Stock Units**. Restricted Stock Units may be redeemed for cash or whole Shares, or a combination of cash and whole Shares, in the discretion of the Committee, when the restrictions lapse and any other conditions set forth in the Award Agreement have been satisfied; <u>provided</u>, that with respect to any Restricted Stock Units subject to Section 409A of the Code such redemption shall occur in a manner that complies with Section 409A of the Code. Each Restricted Stock Unit may be redeemed for one Share or an amount in cash equal to the Fair Market Value of a Share as of the date on which the Restricted Stock Unit vests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Deferred Units**. Subject to Section 7.14 and to the extent determined by the Committee, Participants may be permitted to request the deferral of payment of vested Restricted Stock Units (including the value of related Dividend Equivalents) to a date later than the payment date specified in the Award Agreement, <u>provided</u>, that any such election be made in accordance with Section 409A of the Code. The Committee shall determine any terms and conditions on deferral. Adjusted Spin-Off Awards shall remain subject to the terms of the deferral election to which the underlying Resideo Director DSU Award was subject as of immediately prior to the Effective Date (including, without limitation, the deferral schedule and permissible payment events).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 **Other Stock-Based Awards**. The Committee may, from time to time, grant Awards (other than Stock Options, Stock Appreciation Rights, Restricted Stock Units or Restricted Stock) to any Employee, Non-Employee Director or Other Service Provider that consist of, or are denominated in, payable in, valued in whole or in part by reference to, or otherwise related to, Shares. These Awards may include, among other things, phantom or hypothetical Shares. The Committee shall determine, in its discretion and subject to Section 7.14, the terms and conditions that will apply to Other Stock-Based Awards granted pursuant to this Section 4.5, including whether Dividend Equivalents will be credited with respect to any such Award in the event of a payment of dividends on Common Stock, and whether such Awards will be settled in cash or whole Shares, or a combination of cash and whole Shares, when the restrictions lapse and any other conditions set forth in the Award Agreement have been satisfied. The terms and conditions of Other Stock-Based Awards shall be set forth in the applicable Award Agreement and except as otherwise provided in an Award Agreement or other subsequent agreement between a Participant and the Company or an Affiliate, the Other Stock-Based Awards granted to Participants shall be subject to the following restrictions and must comply with Section 4.8:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Vesting**. Subject to Section 5.4, if the restrictions on Other Stock-Based Awards have not lapsed or been satisfied as of the Participant's Termination of Service, the Shares shall be forfeited by the Participant if the termination is for any reason other than death, Disability or Retirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Death or Disability**. Except for Other Stock-Based Awards granted subject to performance-based vesting conditions, restrictions on Other Stock-Based Awards and any related Dividend Equivalents granted pursuant to this Section 4.5 shall lapse upon the Participant's death or Termination of Service due to Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Retirement**. Other Stock-Based Awards granted to Employees and Other Service Providers are subject to the following provisions:

&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) Except for Other Stock-Based Awards granted subject to performance-based vesting conditions, upon a Participant's Retirement, all restrictions on Other Stock-Based Awards and any related Dividend Equivalents granted pursuant to this Section 4.5 shall lapse in accordance with the original vesting schedule of the Award, subject to the immediate lapse of all restrictions upon a Participant's death.

&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) With respect to Other Stock-Based Awards granted subject to performance-based vesting conditions, upon a Participant's Retirement, all restrictions will lapse on a pro rata portion of the Other Stock-Based Awards and any related Dividend Equivalents granted pursuant to this Section 4.5 that would otherwise have been determined by the Committee to have been earned as of the end of the applicable performance period if the Participant's service had continued, with such pro rata portion determined by dividing the number of days between the first day of the performance period and the Retirement date, by the number of days in the applicable performance period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Except as otherwise provided in an Award Agreement, if a Participant's Retirement results in an Award's continued vesting or pro rata vesting based on the Company's actual levels of achievement of the applicable performance metrics at the end of the performance period, as a condition thereof the Participant agrees that for the remainder of any applicable continued vesting period or actual performance period, he or she shall: (x) remain available to provide service to the Company on an as-requested basis (which service, for purposes of compliance with Section 409A of the Code, shall not exceed 20% of the Participant's pre-Termination of Service level of Service to the Company) and (y) execute, in the discretion of the Company, a non-competition agreement in favor of the Company in the form provided by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Dividends and Dividend Equivalents**. Any dividends, Dividend Equivalents or distributions that are paid with respect to Other Stock-Based Awards will be subject to the same vesting restrictions as the Shares to which such dividends or distributions relate. Dividends and Dividend Equivalents related to Other Stock-Based Awards subject to performance-based vesting conditions will be subject to the same terms and conditions, including vesting conditions and the achievement of any applicable performance goals, as the original Award. Subject to the vesting restrictions above, the terms of any Dividend Equivalents will be as set forth in the applicable Agreement, including the time and form of payment and whether such Dividend Equivalents will be credited with interest or deemed to be reinvested in additional units or Share equivalents. The Committee may, in its discretion, provide in an Agreement for restrictions on dividends and Dividend Equivalents in addition to those specified in this Section 4.5(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 **Cash-Based Awards**. The Committee may, from time to time, grant Awards to any Employee, Non-Employee Director or Other Service Provider that are designated as Cash-Based Awards, with the expectation that these Awards will be settled in cash, however, such Cash-Based Awards may be settled in cash or whole Shares or a combination of cash and whole Shares, as determined by the Committee. The value of these Awards may be based in whole or in part or by reference to, or otherwise related to, Shares, and may be granted subject to the achievement of one or more performance goals as determined by the Committee from time to time. The Committee shall determine, in its discretion and subject to Section 7.14, the terms and conditions that will apply to Cash-Based Awards granted pursuant to this Section 4.6. The terms and conditions of Cash-Based Awards shall be set forth in the applicable Award Agreement and except as otherwise provided in an Award Agreement or other subsequent agreement between a Participant and the Company or an Affiliate, the Cash-Based Awards granted to Participants shall be subject to the following restrictions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Vesting**. Subject to Section 5.4, if the restrictions on Cash-Based Awards have not lapsed or been satisfied as of the Participant's Termination of Service, the Cash-Based Awards shall be forfeited by the Participant if the termination is for any reason other than death, Disability or Retirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Death or Disability**. Except for Cash-Based Awards granted subject to performance-based vesting conditions, restrictions on Cash-Based Awards and any related Dividend Equivalents granted pursuant to this Section 4.6 shall lapse upon the Participant's death or Termination of Service due to Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Retirement**. Cash-Based Awards granted to Employees and Other Service Providers are subject to the following provisions:

&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) Except for Cash-Based Awards granted subject to performance-based vesting conditions, upon a Participant's Retirement, all restrictions on Cash-Based Awards and any related Dividend Equivalents granted pursuant to this Section 4.5 shall lapse in accordance with the original vesting schedule of the Award, subject to the immediate lapse of all restrictions upon a Participant's death.

&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) With respect to Cash-Based Awards granted subject to performance-based vesting conditions, upon a Participant's Retirement, all restrictions will lapse on a pro rata portion of the Cash-Based Awards and any related Dividend Equivalents granted pursuant to this Section 4.5 that would otherwise have been determined by the Committee to have been earned as of the end of the applicable performance period if the Participant's service had continued, with such pro rata portion determined by dividing the number of days between the first day of the performance period and the Retirement date, by the number of days in the applicable performance period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Except as otherwise provided in an Award Agreement, if a Participant's Retirement results in an Award's continued vesting or pro rata vesting based on the Company's actual levels of achievement of the applicable performance metrics at the end of the performance period, as a condition thereof the Participant agrees that for the remainder of any applicable continued vesting period or actual performance period, he or she shall: (x) remain available to provide service to the Company on an as-requested basis (which service, for purposes of compliance with Section 409A of the Code, shall not exceed 20% of the Participant's pre-Termination of Service level of Service to the Company) and (y) execute, in the discretion of the Company, a non-competition agreement in favor of the Company in the form provided by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 **Termination for Cause**. If a Participant incurs a Termination of Service for Cause, then all outstanding Awards shall immediately be cancelled, except as otherwise provided in an Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 **Minimum Vesting Requirements**. Notwithstanding any other provision of the Plan, no portion of an Award may vest before the first anniversary of the date of grant, and with respect to Awards whose grant or vesting is subject to the satisfaction of performance goals over a performance period, each Award shall be subject to a performance period of not less than one year. The foregoing minimum vesting and performance periods will not, however, apply in connection with: (i) accelerated vesting in the event of death or Disability, (ii) Awards made in payment or exchange for other compensation already earned and payable, (iii) Awards granted in connection with assumption or substitution of awards as part of a transaction as contemplated under Section 5.2(a)(iii) that does not reduce the vesting period of the award being replaced, (iv) accelerated vesting as contemplated under Section 5.4, (v) Awards granted to Non-Employee Directors, and (vi) Awards granted pursuant to the Employee Matters Agreement; <u>provided</u>, <u>however</u>, that the Company may grant Awards with respect to up to five percent (5%) of the number of Shares reserved under Section 5.1 without regard to the minimum vesting period set forth in this Section 4.8. For purposes of clarity, the minimum vesting schedules set forth in this Section 4.8 shall not apply to Adjusted Spin-Off Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 **Adjusted Spin-Off Awards**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **General**. Subject to the terms and provisions of the Plan, the Committee may grant Adjusted Spin-Off Awards under the Plan pursuant to the terms and conditions that the Committee, in its sole discretion, may determine and set forth in the applicable Award Agreement, subject to Section 4.2; <u>provided</u>, that such terms and conditions shall be consistent with the Employee Matters Agreement. Except as otherwise provided in this Section ‎4.9 or in the Employee Matters Agreement, Adjusted Spin-Off Awards shall be subject to Section ‎‎4.4 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Termination of Directorship**. With respect to any Participant who holds an Adjusted Spin-Off Award and who immediately following the Spin-Off (x) serves on the Board, and (y) does not serve on the Resideo Board, such Participant shall be deemed to have experienced a separation from service (*i.e.*, for purposes of determining the timing of payment or settlement of such Adjusted Spin-Off Award pursuant to its terms) upon the termination of such Participant's service as a director of the Company. With respect to any Participant who is not described in the preceding sentence and who holds an Adjusted Spin-Off Award, such Participant shall be deemed to have experienced a separation from service upon the termination of such Participant's service as a director of Resideo.

**<u>Article V</u><br>Shares Subject to the Plan; Adjustments**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 **Shares Available and Limitations on Non-Employee Director Awards**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Shares Available**. The Shares issuable under the Plan shall be authorized but unissued Shares or Shares held in the Company's treasury. The total number of Shares with respect to which Awards may be issued under the Plan may equal but may not exceed [●], which includes the number of Shares that will be subject to Adjusted Spin-Off Awards, subject to adjustment in accordance with Section 5.3; <u>provided</u>, <u>however</u>, that from the aggregate limit, no more than [●] Shares may be available for grant in the form of Incentive Stock Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Non-Employee Director Award Limits**. The maximum aggregate grant date fair value (computed in accordance with FASB ASC Topic 718 (or any successor standard)) of Awards that may be granted to a Non-Employee Director under the Plan during any single calendar year shall not exceed $750,000. Notwithstanding the foregoing, the value of any Adjusted Spin-Off Awards granted to a Non-Employee Director shall not count against such annual award limit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 **Counting Rules**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The following Shares related to Awards to be issued under this Plan shall not count against the limits set forth in Section 5.1:

&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) Shares related to Awards paid in cash;

&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) Shares related to Awards (including any Adjusted Spin-Off Awards) that expire, are forfeited or cancelled or terminate for any other reason without issuance of Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any Shares issued in connection with Awards that are assumed, converted or substituted as a result of the acquisition of another company by the Company or an Affiliate or a combination of the Company or an Affiliate with another company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of clarity, Shares that are tendered or withheld in payment of all or part of the Exercise Price of an Award or in satisfaction of withholding tax obligations, and Shares that are repurchased with cash proceeds from the payment of the Exercise Price of an Award, shall not be reincluded in or added back to the number of Shares available for issuance under the Plan. Upon the settlement of any Stock Appreciation Right issued under the Plan, the gross number of Shares issued to the Participant will count against the number of Shares available for issuance under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 **Adjustment Upon Certain Changes**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Adjustments**. In the event of any change in corporate structure affecting outstanding Shares or the value thereof, including any dividend or distribution (whether in cash, Shares or other property), stock split, reverse stock split, spin-off, recapitalization, merger, reorganization, consolidation, combination or exchange of shares or similar transaction, such adjustments and other substitutions shall be made to the Plan and to outstanding Awards as the Committee, in its sole discretion, deems equitable or appropriate, including such adjustments in (i) the limitations set forth in Section 5.1, including the maximum aggregate number, class and kind of securities that may be delivered under the Plan, and (ii) the number, class, kind and Exercise Price of securities subject to outstanding Awards granted under the Plan (including, if the Committee deems appropriate, the full or partial substitution of similar options to purchase the shares of, or other awards denominated in the shares of, another company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Other Changes**. The Committee may make other adjustments in the terms and conditions of Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 5.3(a)) affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits to be made available under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **No Other Rights or Changes**. Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend, any increase or decrease in the number of shares of stock of any class or any dissolution, liquidation, merger or consolidation of the Company or any other corporation. Except as expressly provided in the Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares or amount of other property subject to, or the terms related to, any Award. Except as expressly provided by this Section 5.3, and without limiting the generality of Section 6.1, no material adverse change may be made to the terms of an Award granted to a Participant as a result of an event described in this Section 5.3 without the consent of the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 **Change in Control**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Assumption Upon Change in Control; Accelerated Vesting Upon Certain Termination Events**. Unless otherwise provided in the applicable Award Agreement, in the event of a Change in Control, if the successor company assumes or substitutes for an outstanding Award (or in which the Company is the ultimate parent corporation and continues the Award), then such Award shall be continued in accordance with its applicable terms and vesting shall not be accelerated as described in Section 5.4(b). For the purposes of this Section 5.4(a), an Award shall be considered assumed or substituted for if, following the Change in Control, the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash or other securities or property) received in the transaction constituting a Change in Control by holders of Shares for each Share held on the effective date of such transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); <u>provided</u>, <u>however</u>, that if such consideration received in the transaction constituting a Change in Control is not solely common stock of the successor company, the Committee may, with the consent of the successor company, provide that the consideration to be received upon the exercise or vesting of an Award, for each Share subject thereto, will be solely common stock of the successor company or cash, in each case, substantially equal in fair market value (determined as of the date of the Change in Control) to the per share consideration received by holders of Shares in the transaction constituting a Change in Control. The determination of such substantial equality of value of consideration shall be made by the Committee in its sole discretion and its determination shall be conclusive and binding. Notwithstanding the foregoing, with respect to a Participant who is an Employee or Other Service Provider, in the event of such Participant's Termination of Service involuntarily without Cause or voluntarily by the Participant for Good Reason in such successor company within two years following such Change in Control, the vesting and exercisability of each Award, whether time-based or performance based, held by such Participant at the time of the Change in Control shall be accelerated as described in Section 5.4(b) at the time of the Termination of Service. Notwithstanding the foregoing, no Award shall be assumed or substituted pursuant to this Section 5.4(a) to the extent such action would cause an Award not otherwise "deferred compensation" within the meaning of Section 409A of the Code to become "deferred compensation" within the meaning of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Acceleration of Vesting Upon Change in Control**. In the event of a Change in Control after the date of the adoption of the Plan, unless provision is made in connection with the Change in Control for the assumption, substitution or continuation of an outstanding Award in accordance with Section 5.4(a), then the vesting of such Award, whether time-based or performance-based, shall accelerate and all restrictions shall lapse as of immediately prior to the Change in Control, and (i) in the case of an outstanding Stock Option or Stock Appreciation Right, such Award shall be exercisable as of immediately prior to such Change in Control, or (ii) in the case of an Award other than a Stock Option or a Stock Appreciation Right, such Award shall be settled or otherwise paid to the applicable Participant as soon as practicable following such vesting. For purposes of determining the amount of the Award considered vested and paid for performance-based awards under this Section 5.4(b), all performance criteria (i) if the performance period has been completed, shall be deemed achieved at actual levels of achievement determined by the Committee in its sole discretion as of the date of the Change in Control and (ii) otherwise, shall be deemed achieved at the target level of achievement. Notwithstanding any provision of this Section 5.4(b), unless otherwise provided in the applicable Award Agreement, if any amount payable pursuant to an Award constitutes deferred compensation within the meaning of Section 409A of the Code, in the event of a Change in Control that does not qualify as an event described in Section 409A(a)(2)(A)(v) of the Code, such Award (and any other Awards that constitute deferred compensation that vested prior to the date of such Change in Control but are outstanding as of such date) shall vest and cease to be forfeitable but shall not be settled until the earliest permissible payment event under Section 409A of the Code following such Change in Control. Notwithstanding any other provision of the Plan, the Committee, in its discretion, may determine that, upon the occurrence of a Change in Control, (i) each Stock Option and Stock Appreciation Right outstanding shall terminate within a specified number of days after notice to the Participant, and such Participant shall receive, with respect to each vested Share subject to such Stock Option or Stock Appreciation Right, an amount equal to the excess of the fair market value (as determined by the Committee, in its discretion, in a manner that complies with Section 409A of the Code) of such Share immediately prior to the occurrence of such Change in Control over the Exercise Price, as applicable, per Share of such Stock Option and/or Stock Appreciation Right; such amount to be payable in cash, in one or more kinds of stock or property (including the stock or property, if any, payable in the transaction) or in a combination thereof, as the Committee, in its discretion, shall determine and (ii) each Stock Option and Stock Appreciation Right outstanding at such time with an Exercise Price per Share that exceeds the fair market value (as determined by the Committee, in its discretion, in a manner that complies with Section 409A of the Code) of such Share immediately prior to the occurrence of such Change in Control shall be canceled for no consideration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 **Fractional Shares**. No fractional Shares shall be issued under the Plan, and unless the Committee determines otherwise, an amount in cash equal to the Fair Market Value of any fractional Shares that would otherwise be issuable shall be paid in lieu of such fractional Shares. The Committee may, in its sole discretion, cancel, terminate, otherwise eliminate or transfer or pay other securities or other property in lieu of issuing any fractional Shares.

**<u>Article VI</u><br>Amendment and Termination**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 **Amendment**. The Plan may be amended at any time and from time to time by the Board without the approval of stockholders of the Company, except that no revision to the terms of the Plan shall be effective until the amendment is approved by the stockholders of the Company if such approval is required by the rules of the New York Stock Exchange or such amendment materially increases the number of Shares that may be issued under the Plan (other than an increase pursuant to Section 5.3 of the Plan). No amendment of the Plan made without the Participant's written consent may materially adversely affect any right of a Participant with respect to an outstanding Award unless such amendment is necessary to comply with applicable law. The Plan may not be amended in any manner adverse to the interests of Participants during the two-year period following a Change in Control, unless such amendment is necessary to comply with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 **Termination**. The Plan shall remain in effect until all Shares subject to it are distributed, all Awards have expired or terminated, the Plan is terminated pursuant to the adoption of a resolution of the Board terminating the Plan, or the tenth anniversary of the Effective Date, whichever occurs first.

No Awards shall be granted under the Plan after it has terminated. The termination of the Plan, however, shall not alter or impair any of the rights or obligations of any Participant without such Participant's written consent under any Award previously granted under the Plan. After the termination of the Plan, any previously granted Awards shall remain in effect and shall continue to be governed by the terms of the Plan and the applicable Award Agreement.

**<u>Article VII</u><br>General Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 **Nontransferability of Awards**. No Award under the Plan shall be subject in any manner to alienation, anticipation, sale, assignment, pledge, encumbrance or transfer, and no other persons shall otherwise acquire any rights therein, except as provided below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Award may be transferred by will or by the applicable laws of descent or distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Committee may provide in the applicable Award Agreement that all or any part of an Award (other than an Incentive Stock Option) may, subject to the prior written consent of the Committee, be transferred to one or more of the following classes of donees: a family member; a trust for the benefit of a family member; a limited partnership whose partners are solely family members; or any other legal entity set up for the benefit of family members. For purposes of this Section 7.1(b), a family member means a Participant and/or the Participant's spouse, children, grandchildren, parents, grandparents, siblings, nieces, nephews and grandnieces and grandnephews, including adopted, in-laws and step family members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as otherwise provided in the applicable Award Agreement, any Nonqualified Stock Option or Stock Appreciation Right transferred by a Participant pursuant to Section 7.1(b) may be exercised by the transferee only to the extent that the Award would have been exercisable by the Participant had no transfer occurred. Any transferred Award shall be subject to all of the same terms and conditions as provided in the Plan and in the applicable Award Agreement. The Participant or the Participant's estate shall remain liable for any withholding tax that may be imposed by any federal, state or local tax authority, and the transfer of Shares upon exercise of the Award shall be conditioned on the payment of any withholding tax. The Committee may, in its discretion, disallow all or a part of any transfer of an Award pursuant to Section 7.1(b) unless and until the Participant makes arrangements satisfactory to the Committee for the payment of any withholding tax. The Participant must immediately notify the Committee, in the form and manner required by the Committee, of any proposed transfer of an Award pursuant to Section 7.1(b). No transfer shall be effective until the Committee consents to the transfer in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Unless otherwise restricted by Company policy for Reporting Persons, Restricted Stock may be freely transferred after the restrictions lapse or are satisfied and the Shares are delivered; <u>provided</u>, <u>however</u>, that Restricted Stock awarded to an affiliate of the Company may be transferred only pursuant to Rule 144 under the 1933 Act, or pursuant to an effective registration for resale under the 1933 Act. For purposes of this Section 7.1(d), "affiliate" shall have the meaning assigned to that term under Rule 144.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In no event may a Participant transfer an Incentive Stock Option other than by will or the applicable laws of descent and distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 **Withholding of Taxes**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Stock Options and Stock Appreciation Rights**. Subject to Section 7.2(d), as a condition to the delivery of Shares pursuant to the exercise of a Stock Option or Stock Appreciation Right, the Committee may require that the Participant, at the time of exercise, pay to the Company by cash, certified check, bank draft, wire transfer or postal or express money order an amount sufficient to satisfy any applicable tax withholding obligations. The Committee may also, in its discretion, accept payment of tax withholding obligations through any of the Exercise Price payment methods described in Section 4.3(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Other Awards Payable in Shares**. Subject to Section 7.2(d), the Company shall satisfy a Participant's tax withholding obligations arising in connection with the release of restrictions on Restricted Stock Units, Restricted Stock and Other Stock-Based Awards by withholding Shares that would otherwise be available for delivery. The Company may also allow the Participant to satisfy the Participant's tax withholding obligations by payment to the Company in cash or by certified check, bank draft, wire transfer, or postal or express money order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Cash Awards**. The Company shall satisfy a Participant's tax withholding obligation arising in connection with the payment of any Award in cash by withholding cash from such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Withholding Amount**. The Committee, in consideration of applicable accounting standards, has full discretion to either (i) allow Participants to elect, or (ii) otherwise direct as a general rule, to have the Company withhold Shares for taxes at an amount that is not less than the applicable minimum statutory amount and not more than the applicable maximum statutory amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 **Forfeiture Provisions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Committee may, in its discretion, provide in an Award Agreement that an Award granted thereunder shall be canceled if the Participant, without the consent of the Company, while employed by or providing services to the Company or any Affiliate or for a period after Termination of Service, (i) violates the terms of any restrictive covenant or agreement with the Company, or (ii) otherwise engages in activity that is in conflict with or adverse to the interest of the Company or any Affiliate, including fraud or conduct contributing to any financial restatements or irregularities, as determined by the Committee in its sole discretion. The Committee may also provide in an Award Agreement that (iii) a Participant will forfeit any gain realized on the vesting or exercise of such Award if the Participant engages in any activity referred to in the preceding sentence, or (iv) a Participant must repay the gain to the Company realized under a previously paid Award if the Participant engages in any activity referred to in the preceding sentence. Notwithstanding the foregoing, none of the non-disclosure restrictions in this Section 7.3 or in any Award Agreement shall, or shall be interpreted to, impair the Participant from exercising any legally protected whistleblower rights (including under Rule 21F under the Exchange Act). In the case of a Participant who holds an Adjusted Spin-Off Award and continues to serve on the Resideo Board immediately following the Spin-Off, this provision may in the Committee's discretion be interpreted to apply to Resideo and its affiliates (and agreements and policies thereof), *mutatis mutandis*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Awards and any compensation associated therewith are subject to forfeiture, recovery by the Company or other action pursuant to any compensation recovery policy adopted by the Board or the Committee at any time, as amended from time to time, which includes but is not limited to any compensation recovery policy adopted by the Board or the Committee including in response to the requirements of Section 10D of the Exchange Act, the SEC's final rules thereunder, and applicable listing rules or other rules and regulations implementing the foregoing or as otherwise required by law or stock exchange. Any Award Agreement will be automatically unilaterally amended to comply with any such compensation recovery policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 **Code Section 83(b) Elections**. The Company, the Affiliates, and the Committee have no responsibility for a Participant's election, attempt to elect or failure to elect to include the value of an Award of Restricted Stock or other Award subject to Section 83 of the Code in the Participant's gross income for the year of grant pursuant to Section 83(b) of the Code. Any Participant who makes an election pursuant to Section 83(b) of the Code shall promptly provide the Committee with a copy of the election form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 **No Implied Rights**. The establishment and operation of the Plan, including the eligibility of a Participant to participate in the Plan, shall not be construed as conferring any legal or other right upon any Participant for the continuation of service through the end of any vesting period or other applicable period. Nothing in the Plan shall be deemed to create any obligation on the part of the Board to nominate any director for reelection by the Company's stockholders. The Company and the Affiliates expressly reserve the right, which may be exercised at any time and in the Company's or an Affiliate's sole discretion, to discharge any individual or treat him or her without regard to the effect that discharge might have upon him or her as a Participant in the Plan. There is no obligation for uniformity of treatment of Participants or holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee's determinations and interpretations with respect thereto need not be the same with respect to each Participant and may be made selectively among Participants, whether or not such Participants are similarly situated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 **No Obligation to Exercise Awards; No Right to Notice of Expiration Date**. The grant of a Stock Option or Stock Appreciation Right shall impose no obligation upon the Participant to exercise the Award. The Company, the Affiliates, and the Committee have no obligation to inform a Participant of the date on which a Stock Option or Stock Appreciation Right lapses except in the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 **No Rights as Stockholders**. A Participant granted an Award under the Plan shall have no rights as a stockholder of the Company with respect to the Award unless and until certificates for the Shares underlying the Award are registered in the Participant's name and delivered to the Participant. The right of any Participant to receive an Award by virtue of participation in the Plan shall be no greater than the right of any unsecured general creditor of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 **Indemnification of Committee**. The Company shall indemnify, to the fullest extent permitted by law, each person made or threatened to be made a party to any civil or criminal action or proceeding by reason of the fact that the person, or the executor or administrator of the person's estate, is or was a member of the Committee or a delegate of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 **No Required Segregation of Assets**. Neither the Company nor any Affiliate shall be required to segregate any assets that may at any time be represented by Awards granted pursuant to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10 **Nature of Payments**. All Awards made pursuant to the Plan are in consideration of services for the Company or an Affiliate (including, with respect to certain Awards granted pursuant to the Employee Matters Agreement, services for Resideo or any of its subsidiaries prior to the Spin-Off). Any gain realized pursuant to Awards under the Plan constitutes a special incentive payment to the Participant and shall not be taken into account as compensation for purposes of any other employee benefit plan of the Company or any Affiliate, except as the employee benefit plan otherwise provides. Except as otherwise provided in the Employee Matters Agreement, the adoption of the Plan shall have no effect on Awards made or to be made under any other benefit plan covering an employee of the Company or an Affiliate or any predecessor or successor of the Company or an Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11 **Awards in Foreign Countries**. The Committee has the authority to grant Awards to Employees, Non-Employee Directors and Other Service Providers who are foreign nationals or employed outside the United States on any different terms and conditions than those specified in the Plan that the Committee, in its discretion, believes to be necessary or desirable to accommodate differences in applicable law, tax policy, or custom, while furthering the purposes of the Plan. The Committee may also approve any supplements to the Plan or alternative versions of the Plan as it believes to be necessary or appropriate for these purposes without altering the terms of the Plan in effect for other Participants; <u>provided</u>, <u>however</u>, that the Committee may not make any supplemental or alternative version that (a) increases limitations contained in Section 4.3(e); (b) increases the number of Shares available under the Plan, as set forth in Section 5.1; (c) causes the Plan to cease to satisfy any conditions under Rule 16b-3 under the Exchange Act or (d) otherwise contains terms that would require approval by the stockholders of the Company under the rules of the New York Stock Exchange. A supplement to the Plan for grants of Restricted Stock Units to French employees is attached to, and made a part of this Plan, as Attachment A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.12 **Securities Matters**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall be under no obligation to effect the registration pursuant to the 1933 Act of any Shares to be issued hereunder or to effect similar compliance under any state laws. Notwithstanding anything herein to the contrary, the Company shall not be obligated to cause to be issued or delivered any certificates evidencing Shares pursuant to the Plan unless and until the Company is advised by its counsel that the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental authority and the requirements of any securities exchange on which Shares are traded. The Committee may require, as a condition to the issuance and delivery of certificates evidencing Shares pursuant to the terms hereof, that the recipient of such Shares make such covenants, agreements and representations, and that such certificates bear such legends, as the Committee deems necessary or desirable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The exercise of any Award granted hereunder shall only be effective at such time as counsel to the Company shall have determined that the issuance and delivery of Shares pursuant to such exercise is in compliance with all applicable laws, regulations of governmental authority and the requirements of any securities exchange on which Shares are traded. The Company may, in its sole discretion, defer the effectiveness of an exercise of an Award hereunder or the issuance or transfer of Shares pursuant to any Award pending or to ensure compliance under federal or state securities laws. The Company shall inform the Participant in writing of its decision to defer the effectiveness of the exercise of an Award or the issuance or transfer of Shares pursuant to any Award. During the period that the effectiveness of the exercise of an Award has been deferred, the Participant may, by written notice, withdraw such exercise and obtain the refund of any amount paid with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.13 **Governing Law; Severability**. The Plan and all determinations made and actions taken under the Plan shall be governed by the internal substantive laws, and not the choice of law rules, of the State of Delaware and construed accordingly, to the extent not superseded by applicable U.S. federal law. If any provision of the Plan is held unlawful or otherwise invalid or unenforceable in whole or in part, the unlawfulness, invalidity or unenforceability shall not affect any other parts of the Plan, which shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.14 **Section 409A of the Code**. With respect to Awards subject to Section 409A of the Code, this Plan is intended to comply with the requirements of such Section, and the provisions hereof shall be interpreted in a manner that satisfies the requirements of such Section, and the Plan shall be operated accordingly. If any provision of this Plan or any term or condition of any Award would otherwise frustrate or conflict with this intent, the provision, term or condition shall be interpreted and deemed amended so as to avoid this conflict. Any reservation of rights or discretion by the Company or the Committee hereunder affecting the timing of payment of any Award subject to Section 409A of the Code shall only be as broad as is permitted by Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.15 **Payments to Specified Employees**. Notwithstanding anything herein or in any Award Agreement to the contrary, if a Participant is a "specified employee" (within the meaning of Section 409A(2)(B) of the Code) as of the date of such Participant's separation from service (as determined pursuant to Section 409A of the Code), any Awards subject to Section 409A of the Code payable to such Participant as a result of his or her separation from service, shall be paid on the first business day of the first calendar month that begins after the six-month anniversary of the date of the separation from service, or, if earlier, the date of the Participant's death.

**ATTACHMENT A**

**2026 STOCK INCENTIVE PLAN<br> OF<br> ADI GLOBAL DISTRIBUTION INC. AND ITS AFFILIATES**

**French Sub-Plan for Restricted Stock Units**

This Sub-Plan to the 2026 Stock Incentive Plan of ADI Global Distribution Inc. and its Affiliates (the "<u>Plan</u>"), contains the rules which, together with the provisions of the Plan, govern the operation of the Plan insofar as it applies to Awards made to Employees of the Company or its affiliates in France provided the award document evidencing such Award refers to this Sub-Plan.

The terms and conditions of the Plan are modified by this Sub-Plan for France in order to comply with the provisions of Articles L. 225-197-1 to L. 225-197-6 of the French Commercial Code. This Sub-Plan shall be construed and operated with that intention.

Under this Sub-Plan, the Participants shall be awarded only Restricted Stock Units as defined hereinafter in Section 1.

This Sub-Plan has been established to enable the Restricted Stock Units to qualify for the favorable French income tax and social security regime set out in the French tax code (article 80 quaterdecies) and in the French social security code (article L. 242-1) applicable in France to "qualified" free-shares plan implemented after August 7, 2015 in accordance with the provisions of "*La loi pour la croissance, l'activité et l'égalité des chances économiques*", however nothing in this Sub-Plan shall be construed as a guarantee or an undertaking by the Company or any of its subsidiaries that such regime will effectively apply.

This Sub-Plan should be read in conjunction with the rules of the Plan and Awards granted under this Sub-Plan are subject to the terms and conditions of the Plan applicable to Restricted Stock Units except to the extent that the terms and conditions of the Plan differ from or conflict with the terms and conditions set out in this Sub-Plan, in which event, the terms set out in this Sub-Plan shall prevail.

Initially capitalized terms used herein and which are not defined in Section 1 below shall have the meanings ascribed to such terms in the Plan. Reference to the singular shall include reference to the plural.

An Award of Restricted Stock Units shall be subject to the terms of this Sub-Plan provided the applicable Award Agreement notifying of such Award refer specifically to this Sub-Plan.

The terms and conditions applicable to the Awards granted under this Sub-Plan are the terms and conditions set out in the rules of the Plan, modified as follows.

1. DEFINITIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Award

The term "*Award*" shall mean Restricted Stock Units granted pursuant to the terms and conditions of this Sub-Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Restricted Stock Units

The term "*Restricted Stock Units*" shall mean conditional rights to receive, for no consideration, Shares granted under the Plan as amended by this Sub-Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Disability

The term "*Disability*" shall mean a disability corresponding to the second or the third categories of Article L. 341-4 of the French Social Security Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 Employee

The term "*Employee*" shall mean a current salaried employee, as defined by French labor law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 Participant

The term "*Participant*" shall mean an Employee of the Company or an Affiliate having a capital link as defined in Article L. 225-197-2 of the French Commercial Code.

Restricted Stock Units shall not be awarded to any Participant who is holding Shares representing 10% or more of the Company's capital at the date of the award or who may hold Shares representing 10% or more of the Company's capital due to the award of Restricted Stock Units.

2. NUMBER OF SHARES GRANTED

Notwithstanding any other provision of the Plan, the total number of Shares granted freely under this Sub-Plan shall not exceed [___] % of the Company's share capital.

3. SETTLEMENT OF AWARDS

Notwithstanding any other provision of the Plan, the Awards shall only be settled by delivery of Shares and no cash shall be paid to Participants in connection with the settlement of an Award even in consideration of fractional shares.

4. DIVIDEND EQUIVALENTS

Notwithstanding any other provision of the Plan and notably Section 4.4, the Awards granted under this Sub-Plan shall not give rise to the right to any Dividend Equivalent.

5. MINIMUM PERIOD BEFORE WHICH THE TRANSFER OF PROPERTY OF SHARES CANNOT OCCUR

Notwithstanding any other provision of the Plan, the Restricted Stock Units granted pursuant to this Sub-Plan shall not vest and the Shares underlying the Awards shall not be delivered to Participants before the end of a minimum one-year period as from the grant date, except in the event of death as described below in Section 9.

6. SALE RESTRICTIONS

Notwithstanding any other provisions of the Plan, and in the event the Shares are delivered to the Participant before the second anniversary of the grant date, the sale of Shares underlying the Restricted Stock Units granted under this Sub-Plan shall not occur prior to the second anniversary of the grant date, except in any event provided for under French law as an exception to this minimum time period before which the shares cannot be sold, and notably in the event of Disability and death as described below in Sections 8 and 9.

7. SPECIFIC CLOSED PERIODS DURING WHICH THE SHARES CANNOT BE DISPOSED OF

Notwithstanding any other provision of the Plan, once definitively delivered, Shares may not be disposed of within the periods as set forth in Article L. 225-197-1, I of the French Commercial Code.

8. DISABILITY

Notwithstanding any other provision of the Plan, in the event of Disability of a Participant during the restriction on sale restriction period, if any, Shares delivered shall become immediately disposable.

9. TRANSFER TO HEIRS

Notwithstanding any other provision of the Plan, in the event of death of a Participant, his/her heirs are entitled to request that the numbers of Shares corresponding to the unvested Restricted Stock Units at the date of death be delivered, provided such request is made within six months as from the date of death. Shares delivered shall become immediately disposable.

10. ADJUSTMENT OF THE AWARD

Notwithstanding any other provision of the Plan, the number of Awards, as well as the number of Shares to be delivered cannot be adjusted or modified except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in cases which would be authorized or rendered compulsory under French law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event of operations performed on the share capital of the Company before the delivery of the Shares,
in which cases the Committee is authorized to adjust the number of Shares to be delivered but only in order to protect the rights of the
Participant and to guarantee the neutrality of such operations.

11. EXCHANGE OF SHARES DURING THE SALE RESTRICTION PERIOD

In the event of an exchange of Shares resulting from a public offer, a merger, a spin-off, a stock-split or a reverse stock split operation performed during the sale restrictions period described in Section 6 above, such sale restrictions, if any, remain applicable to the Shares received in the exchange for the time period remaining at the date of the exchange.

12. DEFINITIVE DELIVERY OF THE SHARES

Notwithstanding any other provision of the Plan, once delivered to the Participant (or to his or her heirs), the Shares are definitively delivered and cannot be cancelled or rescinded and a Participant cannot be forced to return the Shares.

13. NO SHARES WITHHOLDING

Notwithstanding any other provision of the Plan and notably Section 7.2, no Shares available for delivery shall be withheld to cover taxes.

14. VOLUNTARY DEFERRAL OF THE AWARD

Notwithstanding any other provision of the Plan, the Committee cannot require or permit the Participants to defer the receipt or issuance or Shares.

15. CHANGES TO THE PLAN AND SUB-PLAN

The Committee or the Board may at any time amend the Plan and Sub-Plan, provided that no such amendment shall adversely affect the rights of any Participant with respect to an Award granted under this Sub-Plan without such Participant's consent and provided that such amendments are not inconsistent with French law and, in particular, French legislation regarding the granting of free shares, as defined in Articles L. 225-197-1 to L. 225-197-6 of the French Commercial Code and French Labor law.

In the event the amendments are not permitted by French law and notably French legislation applicable to the grant of free shares as set forth, in Articles L. 225-197-1 to L. 225-197-6 of the French Commercial Code, such amendments shall not apply to Restricted Stock Units previously granted.

16. PERIOD DURING WHICH RESTRICTED STOCK UNITS CAN BE GRANTED UNDER THIS SUB-PLAN

No Awards can be granted under this Sub-Plan more than 76 months after the date on which this Sub-Plan is approved.

17. PARTICIPANT ACCOUNT

The Shares delivered under this Sub-Plan shall be recorded in an account in the name of the Participant with the Company or a broker or in such manner as the Committee may otherwise determine to ensure compliance with this Sub-Plan.

18. NON-TRANSFERABILITY OF THE AWARD

Notwithstanding any other provision of the Plan, Awards shall not be transferred or otherwise disposed of, except in the event of death as described above in Section 9.

19. SEVERABILITY

The terms and conditions provided in the Sub-Plan are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable under French law, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

## Exhibit 10.6

**Exhibit 10.6**

**2026 STOCK INCENTIVE PLAN<br> OF ADI GLOBAL DISTRIBUTION INC. AND ITS AFFILIATES**

**FORM OF STOCK OPTION AWARD AGREEMENT**

This STOCK OPTION AWARD AGREEMENT (this "<u>Agreement</u>") made as of the [DAY] day of [MONTH, YEAR] (the "<u>Grant Date</u>"), between ADI Global Distribution Inc. (the "<u>Company</u>") and [EMPLOYEE NAME] ("<u>Participant</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Grant of Option**. The Company has granted you an Option to purchase [NUMBER] Shares of Common Stock, subject to the provisions of this Agreement and the 2026 Stock Incentive Plan of ADI Global Distribution Inc. and its Affiliates (the "<u>Plan</u>"). This Option is a nonqualified Option for federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Exercise Price**. The purchase price of the Shares covered by the Option will be [DOLLAR AMOUNT] per Share (the "<u>Exercise Price</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Vesting**. Except as otherwise provided in Sections 7 and 8 of this Agreement, the Option will become exercisable as provided on the attached Vesting Schedule Table, which is incorporated into, and made a part of, this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Term of Option**. The Option must be exercised prior to the close of the New York Stock Exchange ("<u>NYSE</u>") on the day before the seventh anniversary of the Grant Date (the "<u>Expiration Date</u>"), subject to earlier termination or cancellation as provided below. If the NYSE is not open for business on the Expiration Date, the Option will expire at the close of the NYSE on the business day immediately preceding the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Payment of Exercise Price**. You may pay the Exercise Price by cash, certified check, bank draft, wire transfer, postal or express money order, or any other alternative method specified in the Plan and expressly approved by the Committee. Notwithstanding the foregoing, you may not tender any form of payment that the Committee determines, in its sole and absolute discretion, could violate any law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Exercise of Option**. Subject to the terms and conditions of this Agreement, the Option may be exercised by contacting the [CONTACT DETAILS]. If the Option is exercised after your death, the Company will deliver Shares only after the Committee has determined that the person exercising the Option is the duly appointed executor or administrator of your estate or the person to whom the Option has been transferred by your will or by the applicable laws of descent and distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Termination, Retirement, Disability or Death**. Subject to Section 8, this Option shall vest and remain exercisable as follows:

---

| | | |
|:---|:---|:---|
| **Event** | **Vesting** | **Exercise Period for Vested Awards** |
| Death | Immediate vesting as of death (including if death occurs during any post-Retirement continued vesting period). | Expires earlier of (i) original expiration date, or (ii) 3 years after death (including instances where death occurs during any post-Retirement continued vesting period). |
| Disability | Immediate vesting as of Termination of Service due to the incurrence of Disability. | Expires earlier of (i) original expiration date, or (ii) 3 years after Termination of Service due to Disability. |
| Retirement | Unvested portions of this Award continue to vest in accordance with original vesting schedule following Retirement. | Expires earlier of (i) original expiration date, or (ii) 3 years after Retirement. |
| Voluntary Termination of Service (other than as covered by Retirement) | Unvested portions of this Award forfeited as of Termination of Service. | Expires earlier of (i) original expiration date, or (ii) 30 days after Termination of Service. |
| Involuntary Termination of Service not for Cause | [Unvested portions of this Award forfeited as of Termination of Service.] [Section 16 Officers: Pro rata vesting as of Termination of Service (determined by multiplying the number of Options originally subject to this Award by a fraction, the numerator of which is the number of days you were actively employed before your Termination of Service from the Award Date, and the denominator of which is the total number of days from the Award Date to the final scheduled vesting date, and then subtracting the number of Options previously vested under this Award.] | Expires earlier of (i) original expiration date, or (ii) 1 year after Termination of Service. |
| Involuntary termination for Cause | Unvested portions of this Award forfeited as of Termination of Service. | Vested Awards immediately cancelled. |

---

If your Termination of Service due to Retirement occurs before the final scheduled vesting date described in Vesting Schedule Table, your unvested Award will continue to vest in accordance with the terms of this Agreement. If your Retirement results in this Award's continued vesting, as a condition thereof you hereby agree that for the remainder of any continued vesting period, you will (i) remain available to provide service to the Company on an as-requested basis (which service, for purposes of compliance with Section 409A of the Code, shall not exceed 20% of your pre-Termination of Service level of Service to the Company) and (ii) execute, in the discretion of the Company, a non-competition agreement in favor of the Company in the form provided by the Company.

Except as expressly provided herein, all rights hereunder shall cease to accrue as of the date of your Termination of Service with the Company and its Affiliates and you will forfeit the unvested portion of any award and all rights to continue vesting in awards shall cease as of the date of your Termination of Service. Further, you will not be entitled to receive additional awards hereunder after your Termination of Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Change in Control**. If you incur an involuntary Termination of Service not for Cause (as defined in Section 2 of the Plan) or a voluntary Termination of Service for Good Reason (as defined in Section 2 of the Plan) on or before the second anniversary of the date of a Change in Control, any portion of the Option that has not vested or terminated as of your Termination of Service shall vest as of your Termination of Service and become exercisable in full as of the date of such Termination of Service. Such a termination shall be considered an Involuntary Termination not for Cause or, if applicable, a Retirement, under Section 7 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Withholdings**. The Company or your local employer shall have the power and the right to deduct or withhold, or require you to remit to the Company or your local employer, an amount sufficient to satisfy taxes imposed under the laws of any country, state, province, city or other jurisdiction, including but not limited to income taxes, capital gain taxes, transfer taxes, and social security contributions, and National Insurance Contributions, that are required by law to be withheld with respect to the grant of the Option, any exercise of your rights under this Agreement, the sale of Shares acquired from the exercise of the Option, and/or payment of dividends on Shares acquired pursuant to the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Transfer of Option**. You may not transfer the Option or any interest in the Option except by will or the laws of descent and distribution [or except as otherwise permitted by the Committee and as specified in the Plan]. Any other attempt to dispose of your interest will be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. [**Requirements for and Forfeiture of Award**.

&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. **General**. The Award is expressly contingent upon you complying with the terms, conditions and definitions contained in this Section 11 and in any other agreement that governs your noncompetition with the Company and its Affiliates, your nonsolicitation of employees, customers, suppliers, business partners and vendors of the Company and its Affiliates, and/or your conduct with respect to trade secrets and proprietary and confidential information of the Company and its Affiliates. For the avoidance of doubt, for purposes of this Section 11, the "Company and its Affiliates" shall include ADI Global Distribution Inc. and its predecessors, designees and successors, as well as its past, present and future operating companies, divisions, subsidiaries, affiliates and other business units, including businesses acquired by purchase of assets, stock, merger or otherwise.

&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. **Remedies**.

&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;1. You expressly agree and acknowledge that the forfeiture provisions of Section 11(b)(2) of this Agreement shall apply if, from the Grant Date until the date that is [twenty-four (24)] months after your Termination of Service for any reason other than Retirement, or in the case of Retirement only, the later of (A) [twenty-four (24)] months after your Termination of Service and (B) the last scheduled vesting date in the Vesting Schedule Table, for any reason, you (i) enter into an employment, consultation or similar agreement or arrangement (including any arrangement for service as an agent, partner, stockholder, consultant, officer or director) with any entity or person engaged in a business in which the Company or its Affiliates are engaged if the business is competitive (in the sole judgment of the Committee) with the Company or its Affiliates and the Committee has not approved the agreement or arrangement in writing, or (ii) make any statement, publicly or privately (other than to your spouse and legal advisors), which would be disparaging (as defined below) to the Company and its Affiliates or their businesses, products, strategies, prospects, condition, or reputation or that of their directors, employees, officers or members; provided, however, that nothing shall preclude you from making any statement in good faith which is required by any applicable law or regulation or the order of a court or other governmental body, or (iii) write or contribute to a book, article or other media publication, whether in written or electronic format, that is in any way descriptive of the Company or its Affiliates or your career with the Company or its Affiliates without first submitting a draft thereof, at least thirty (30) days in advance, to the Company's Executive Vice President, General Counsel and Corporate Secretary or his or her delegate, whose judgment about whether such book, article or other media publication is disparaging shall be determinative; or such a book, article or other media publication is published after a determination that it is disparaging; provided, however, that nothing herein shall preclude you from reporting (in good faith) possible violations of federal law or regulation to any governmental agency or entity, including but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and/or any agency Inspector General, or making any other disclosures that are protected under the whistleblower provisions of federal or state law or regulation, or from otherwise making any statement (in good faith) which is required by any applicable law or regulation or the order of a court or other governmental body. For purposes of this Section 11(b)(1), the term "disparaging" shall mean any statement or representation (whether oral or written and whether true or untrue) which, directly or by implication, tends to create a negative, adverse, or derogatory impression about the subject of the statement or representation or which is intended to harm the reputation of the subject of the statement or representation.

&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;2. In addition to the relief described in any other agreement that governs your noncompetition with the Company or its Affiliates, your nonsolicitation of the employees, customers, suppliers, business partners and vendors of the Company or its Affiliates, and/or your conduct with respect to the trade secrets and proprietary and confidential information of the Company or its Affiliates, if the Committee determines, in its sole judgment, that you have violated the terms of any such agreement or you have engaged in an act that violates Section 11(b)(1) of this Agreement, (i) any portion of the Option you have not exercised (whether vested or unvested) shall immediately be cancelled, and you shall forfeit any rights you have with respect to the Option as of the date of the Committee's determination, and (ii) you shall immediately deliver to the Company Shares equal in value to the amount of any profit you realized upon an exercise of the Option during the period beginning twelve (12) months prior to your Termination of Service and ending on the date of the Committee's determination.

&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;3. Notwithstanding anything in the Plan or this Agreement to the contrary, you acknowledge that the Company may be entitled or required by law, Company policy or the requirements of an exchange on which the Shares are listed for trading, to recoup compensation paid to you pursuant to the Plan, and you agree to comply with any Company request or demand for recoupment.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Adjustments**. Any adjustments to the Option will be governed by Section 5.3 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Restrictions on Exercise**. Exercise of the Option is subject to the conditions that, to the extent required at the time of exercise, (i) the Shares covered by the Option will be duly listed, upon official notice of issuance, upon the NYSE, and (ii) a Registration Statement under the Securities Act of 1933 with respect to the Shares will be effective. The Company will not be required to deliver any Common Stock until all applicable federal and state laws and regulations have been complied with and all legal matters in connection with the issuance and delivery of the Shares have been approved by counsel of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Disposition of Securities**. By accepting the Award, you acknowledge that you have read and understand the Company's policy, and are aware of and understand your obligations under U.S. federal securities laws in respect of trading in the Company's securities, and you agree not to use the Company's "cashless exercise" program (or any successor program) at any time when you possess material nonpublic information with respect to the Company or when using the program would otherwise result in a violation of securities law. The Company will have the right to recover, or receive reimbursement for, any compensation or profit realized on the exercise of the Option or by the disposition of Shares received upon exercise of the Option to the extent that the Company has a right of recovery or reimbursement under applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **Plan Terms Govern**. The exercise of the Option, the disposition of any Shares received upon exercise of the Option, and the treatment of any gain on the disposition of these Shares are subject to the terms of the Plan and any rules that the Committee may prescribe. The Plan document, as may be amended from time to time, is incorporated into this Agreement. Capitalized terms used in this Agreement have the meaning set forth in the Plan, unless otherwise stated in this Agreement. In the event of any conflict between the terms of the Plan and the terms of this Agreement, the Plan will control unless otherwise stated in this Agreement. By accepting the Award, you acknowledge receipt of the Plan and the prospectus, as in effect on the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **Personal Data**.

&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. By entering into this Agreement, and as a condition of the grant of the Option, you acknowledge that your personal data is collected, used, and transferred in view of the performance of this Agreement as described in this Section [15][16], which is to the full extent permitted by and in full compliance with applicable law.

&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. You understand that your local employer holds, by means of an automated data file, certain personal information about you, including, but not limited to, name, home address and telephone number, date of birth, social insurance number, salary, nationality, job title, any shares or directorships held in the Company, details of all options or other entitlement to shares awarded, canceled, exercised, vested, unvested, or outstanding in your favor, for the purpose of managing and administering the Plan ("<u>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;c. You understand that part or all of your Data may be also collected, used, or held by the Company or its Affiliates for the purpose of managing and administering this award or any previous award/incentive plans. Specifically, your Data is transferred to, and/or collected, used, or held by the Total Rewards Department, your local and regional business managers, the Company's senior executives (e.g., SVP-HR, CEO), the Committee, and Morgan Stanley. The Company stores your Data for this purpose [until the last vesting date described in this Agreement OR for a period of xx years / months / days].

&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. You understand that your local employer will transfer Data to the Company or its Affiliates among themselves as necessary for the purposes of implementation, administration, and management of your participation in the Plan, and that the Company or its Affiliates may transfer data among themselves, and/or each, in turn, further transfer data to any third parties assisting the Company in the implementation, administration, and management of the Plan (the "<u>Data Recipients</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;e. You understand that the Company or its Affiliates, as well as the Data Recipients, are or may be located in your country of residence or elsewhere, such as the United States. You authorize the Company or its Affiliates, as well as the Data Recipients, to receive, possess, use, retain, and transfer Data in electronic or other form, for the purposes of implementing, administering, and managing your participation in the Plan, including any transfer of such Data, as may be required for the administration of the Plan and/or the subsequent holding of Shares on your behalf, to a broker or third party with whom the Shares may be deposited.

&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. You understand that you may show your opposition to the processing and transfer of your Data, and, may at any time, review the Data or request that any necessary amendments be made to it. To exercise your data privacy rights, refer to the Company's Data Privacy Global Policy [located on the Intranet / provide link to policy / otherwise describe how to find the policy].

&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. As soon as your Data is transferred to a third party Data Recipient (e.g., Morgan Stanley), (i) the Data Recipient becomes responsible for this Data (as a data controller), (ii) the Data will be subject to the Data Recipient's privacy statements and notices, (iii) the Company and its Affiliates will no longer be responsible for the transferred Data, and (iv) you should refer to the Data Recipient's statements and notices about its data protection policies and practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **Discretionary Nature and Acceptance of Award**. By accepting this Award, you agree to be bound by the terms of this Agreement and acknowledge that:

&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. The Company (and not your local employer) is granting your Option. Furthermore, this Agreement is not derived from any preexisting labor relationship between you and the Company, but rather from a mercantile relationship.

&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. The Company may administer the Plan from outside your country of residence and United States law will govern all options granted under the Plan.

&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. Benefits and rights provided under the Plan are wholly discretionary and, although provided by the Company, do not constitute regular or periodic payments.

&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. The benefits and rights provided under the Plan are not to be considered part of your salary or compensation under your employment with your local employer for purposes of calculating any severance, resignation, redundancy or other end of service payments, vacation, bonuses, long-term service awards, indemnification, pension or retirement benefits, or any other payments, benefits or rights of any kind. You waive any and all rights to compensation or damages as a result of the termination of employment with your local employer for any reason whatsoever insofar as those rights result, or may result, from the loss or diminution in value of such rights under the Plan or your ceasing to have any rights under, or ceasing to be entitled to any rights under, the Plan as a result of such 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;e. The grant of the Option hereunder, and any future grant of an option under the Plan, is entirely voluntary, and at the complete discretion of the Company. Neither the grant of the Option nor any future grant by the Company will be deemed to create any obligation to make any future grants, whether or not such a reservation is explicitly stated at the time of such a grant. The Company has the right, at any time and/or on an annual basis, to amend, suspend or terminate the Plan; provided, however, that no such amendment, suspension, or termination will adversely affect your rights 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. The Plan will not be deemed to constitute, and will not be construed by you to constitute, part of the terms and conditions of employment. Neither the Company nor your local employer will incur any liability of any kind to you as a result of any change or amendment, or any cancellation, of the Plan at any time.

&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. Participation in the Plan will not be deemed to constitute, and will not be deemed by you to constitute, an employment or labor relationship of any kind with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **Limitations**. Nothing in this Agreement or the Plan gives you any right to continue in the employ of the Company or any of its Affiliates or to interfere in any way with the right of the Company or any Affiliate to terminate your employment at any time. Payment of Shares is not secured by a trust, insurance contract or other funding medium, and you do not have any interest in any fund or specific asset of the Company by reason of the Option. You have no rights as a shareowner of the Company pursuant to the Option until Shares are actually delivered you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **Incorporation of Other Agreements**. This Agreement and the Plan constitute the entire understanding between you and the Company regarding the Option. This Agreement supersedes any prior agreements, commitments or negotiations concerning the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **Severability**. The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of the other provisions of the Agreement, which will remain in full force and effect. Moreover, if any provision is found to be excessively broad in duration, scope or covered activity, the provision will be construed so as to be enforceable to the maximum extent compatible with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **Governing Law**. The Plan, this Agreement, and all determinations made and actions taken under the Plan or this Agreement shall be governed by the internal substantive laws, and not the choice of law rules, of the State of Delaware and construed accordingly, to the extent not superseded by applicable federal law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **Acknowledgements and Acceptance**. By accepting this Agreement, you agree to the following: (i) you have carefully read, fully understand and agree to all of the terms and conditions described in this Agreement, the Plan, the Plan's prospectus and all accompanying documentation; and (ii) you understand and agree that this Agreement and the Plan constitute the entire understanding between you and the Company regarding the Option, and that any prior agreements, commitments, or negotiations concerning the Option are replaced and superseded.

**I Accept:**

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| | |
|:---|:---|
| Print Name | EID |
| Signature | Date |

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**VESTING SCHEDULE TABLE**

## Exhibit 10.7

**Exhibit 10.7**

**2026 STOCK INCENTIVE PLAN<br> OF<br> ADI GLOBAL DISTRIBUTION INC. AND ITS AFFILIATES**

**FORM OF RESTRICTED STOCK UNIT AGREEMENT**

This RESTRICTED STOCK UNIT AGREEMENT (this "<u>Agreement</u>") as of the [DAY] day of [MONTH, YEAR] (the "<u>Award Date</u>") between ADI Global Distribution Inc. (the "<u>Company</u>") and [EMPLOYEE NAME] (the "<u>Participant</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Grant of Award**. The Company has granted you [NUMBER] Restricted Stock Units, subject to the terms of this Agreement and the terms of the 2026 Stock Incentive Plan of ADI Global Distribution Inc. and its Affiliates (the "<u>Plan</u>"). The Company will hold the Restricted Stock Units in a bookkeeping account on your behalf until they become payable or are forfeited or cancelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Rights as a Shareholder**. The Participant shall have no rights as a stockholder of the Company with respect to any Shares of Common Stock covered by or relating to the Restricted Stock Units until such Shares are actually delivered to the Participant. For purposes of clarification, the Participant shall not have any voting or dividend rights with respect to the Shares of Common Stock underlying the Restricted Stock Units unless and until such Shares are actually delivered to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Dividend Equivalents**. Except as otherwise determined by the Committee, in its sole discretion, the Participant will earn Dividend Equivalents in an amount equal to the value of any ordinary cash or stock dividends paid by the Company upon one Share of Common Stock for each unvested Restricted Stock Unit, which may be credited in cash or Common Stock as determined by the Committee in such manner as the Committee may determine from time to time and will be subject to the same vesting provisions as apply to the Restricted Stock Units to which such Dividend Equivalents relate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Payment Amount**. Each Restricted Stock Unit represents one (1) Share of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Vesting**. Except as otherwise provided in Sections 8, 9 [or 10] of this Agreement, the Restricted Stock Units will vest as provided on the attached Vesting Schedule Table, which is incorporated into, and made a part of, this Agreement. Each applicable vesting date of all or any portion of this Award shall be referred to herein as a "Vesting Date".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Form and Timing of Payment**. Except as otherwise determined by the Committee in its sole discretion or as provided in Section 9(a) of this Agreement, vested Restricted Stock Units will be redeemed solely for Shares. Payment of vested Restricted Stock Units will be made as soon as practicable, but no later than two and one-half (2-1/2) months following the applicable Vesting Date, and the Participant may not designate the taxable year in which such payment occurs. As determined by the Company in its sole discretion prior to the final scheduled Vesting Date, any fractional Shares may be paid in cash or rounded up or down to the nearest whole Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Termination of Service**. Except as otherwise provided in this Agreement, if your Termination of Service occurs for any reason other than death, Disability or Retirement before a scheduled Vesting Date, any unvested Restricted Stock Units will immediately be forfeited, and your rights with respect to these Restricted Stock Units will end.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Retirement, Death or Disability**. If your Termination of Service occurs due to death or due to the onset of a Disability before any scheduled Vesting Date described in Section 5 of this Agreement, all of your unvested Restricted Stock Units will vest as of your Termination of Service due to death or Disability, as applicable. If you are deceased, the Company will make a payment to your estate only after the Committee has determined that the payee is the duly appointed executor or administrator of your estate, subject to Section 7.14 of the Plan. If your Termination of Service due to Retirement occurs before the final scheduled Vesting Date described in Section 5 of this Agreement, your unvested Restricted Stock Units will continue to vest in accordance with the terms of this Agreement. As a condition to such continued vesting, you hereby agree that for the remainder of the Award's scheduled vesting period, you will (i) remain available to provide service to the Company on an as-requested basis (which service, for purposes of compliance with Section 409A of the Code, shall not exceed 20% of your pre-Termination of Service level of Service to the Company) and (ii) execute, in the discretion of the Company, a non-competition agreement in favor of the Company in the form provided by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. [**Involuntary Termination of Service Not for Cause**. Except as provided in Section 10, if you incur an involuntary Termination of Service not for Cause before any scheduled Vesting Date, a pro-rated number of the unvested Restricted Stock Units subject to the Award will vest as of the date of your Termination of Service. The number of Units subject to such accelerated vesting will be determined by multiplying the number of Restricted Stock Units originally subject to this Award by a fraction, the numerator of which is the number of days you were actively employed before your Termination of Service from the Award Date, and the denominator of which is the total number of days from the Award Date to the final scheduled Vesting Date, and then subtracting the number of Restricted Stock Units previously vested under this Award.]<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Change in Control**. Notwithstanding anything herein to the contrary, in the event of a Change in Control (as defined in the Plan), the following provisions apply:

&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. **Cashout of Awards**. Unless this Award is assumed, substituted or continued in accordance with Section 5.4(a) of the Plan, the Restricted Stock Units that have not vested or terminated as of the date of the Change in Control shall vest as of immediately prior to the Change in Control. Unless otherwise determined by the Committee, no later than 15 days after the date of the Change in Control, you will receive for the Restricted Stock Units a single payment in [cash or Shares] equal to the product of the number of outstanding Restricted Stock Units as of the date of the Change in Control (including any Restricted Stock Units that vest pursuant to this Section [9][10]) and an amount equal to the highest price per Share paid by the successor company in connection with such Change in Control, as determined by the Committee.

&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. **Rollover of Awards**. If this Award is assumed, substituted or continued in accordance with Section 5.4(a) of the Plan, Restricted Stock Units that have not vested or terminated as of the date of the Change in Control will continue to vest in accordance with the schedule described in Section 5 of this Agreement (or as adjusted if more favorable); *provided*, however, that if you incur an involuntary Termination of Service not for Cause (as defined in Section 2 of the Plan) or a voluntary Termination of Service for Good Reason (as defined in Section 2 of the Plan) on or before the second anniversary of the date of the Change in Control, Restricted Stock Units that have not vested or terminated as of your Termination of Service will immediately vest in full and be settled no later than 15 days after the Termination of Service.

<sup>1</sup> Insert for Awards being made to Section 16 officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Withholdings**. The Company or your local employer shall have the power and the right to deduct or withhold, or require you to remit to the Company or to your local employer, prior to any issuance or delivery of Shares underlying Restricted Stock Units, an amount sufficient to satisfy taxes imposed under the laws of any country, state, province, city or other jurisdiction, including but not limited to income taxes, capital gain taxes, transfer taxes, and social security contributions, and National Insurance Contributions, that are required by law to be withheld as determined by the Company or your local employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Transfer of Award**. You may not transfer the Restricted Stock Units or any interest in such Units except by will or the laws of descent and distribution [or except as otherwise permitted by the Committee and as specified in the Plan]. Any other attempt to dispose of your interest will be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. [**Requirements for and Forfeiture of Award**.

&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. **General**. The Award is expressly contingent upon you complying with the terms, conditions and definitions contained in this Section [12][13] and in any other agreement that governs your noncompetition with the Company and its Affiliates, your nonsolicitation of employees, customers, suppliers, business partners and vendors of the Company and its Affiliates, and/or your conduct with respect to trade secrets and proprietary and confidential information of the Company and its Affiliates. For the avoidance of doubt, for purposes of this Section [12][13], the "Company and its Affiliates" shall include ADI Global Distribution Inc. and its predecessors, designees and successors, as well as its past, present and future operating companies, divisions, subsidiaries, affiliates and other business units, including businesses acquired by purchase of assets, stock, merger or otherwise.

&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. **Remedies**.

&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;1. You expressly agree and acknowledge that the forfeiture provisions of Section [12][13](b)(2) of this Agreement shall apply if, from the Award Date until the date that is [twenty-four (24)] months after your Termination of Service for any reason other than Retirement, or in the case of Retirement only, the later of (A) [twenty-four (24)] months after your Termination of Service and (B) the last scheduled Vesting Date, for any reason, you (i) enter into an employment, consultation or similar agreement or arrangement (including any arrangement for service as an agent, partner, stockholder, consultant, officer or director) with any entity or person engaged in a business in which the Company or its Affiliates are engaged if the business is competitive (in the sole judgment of the Committee) with the Company or its Affiliates and the Committee has not approved the agreement or arrangement in writing, or (ii) make any statement, publicly or privately (other than to your spouse and legal advisors), which would be disparaging (as defined below) to the Company and its Affiliates or their businesses, products, strategies, prospects, condition, or reputation or that of their directors, employees, officers or members; *provided*, however, that nothing shall preclude you from making any statement in good faith which is required by any applicable law or regulation or the order of a court or other governmental body, or (iii) write or contribute to a book, article or other media publication, whether in written or electronic format, that is in any way descriptive of the Company or its Affiliates or your career with the Company or its Affiliates without first submitting a draft thereof, at least thirty (30) days in advance, to the Company's Executive Vice President, General Counsel and Corporate Secretary or his or her delegate, whose judgment about whether such book, article or other media publication is disparaging shall be determinative; or such a book, article or other media publication is published after a determination that it is disparaging; *provided*, however, that nothing herein shall preclude you from reporting (in good faith) possible violations of federal law or regulation to any governmental agency or entity, including but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and/or any agency Inspector General, or making any other disclosures that are protected under the whistleblower provisions of federal or state law or regulation, or from otherwise making any statement (in good faith) which is required by any applicable law or regulation or the order of a court or other governmental body.

For purposes of this Section [12][13](b)(1), the term "disparaging" shall mean any statement or representation (whether oral or written and whether true or untrue) which, directly or by implication, tends to create a negative, adverse, or derogatory impression about the subject of the statement or representation or which is intended to harm the reputation of the subject of the statement or representation.

&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;2. In addition to the relief described in any other agreement that governs your noncompetition with the Company or its Affiliates, your nonsolicitation of the employees, customers, suppliers, business partners and vendors of the Company or its Affiliates, and/or your conduct with respect to the trade secrets and proprietary and confidential information of the Company or its Affiliates, if the Committee determines, in its sole judgment, that you have violated the terms of any such agreement or you have engaged in an act that violates Section [12][13](b)(1) of this Agreement, (i) any Restricted Stock Units that have not vested under this Agreement shall immediately be cancelled, and you shall forfeit any rights you have with respect to such Units as of the date of the Committee's determination, and (ii) you shall immediately deliver to the Company Shares (or the cash equivalent) equal in value to the Restricted Stock Units you received during the period beginning twelve (12) months prior to your Termination of Service and ending on the date of the Committee's determination.

&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;3. Notwithstanding anything in the Plan or this Agreement to the contrary, you acknowledge that the Company may be entitled or required by law, Company policy or the requirements of an exchange on which the Shares are listed for trading, to recoup compensation paid to you pursuant to the Plan, and you agree to comply with any Company request or demand for recoupment.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Restrictions on Payment of Shares**. Payment of Shares for your Restricted Stock Units is subject to the conditions that, to the extent required at the time of settlement, (i) the Shares underlying the Restricted Stock Units will be duly listed, upon official notice of redemption, upon the New York Stock Exchange (or any other securities exchange on which Shares may be listed), and (ii) a Registration Statement under the Securities Act of 1933 with respect to the Shares will be effective. The Company will not be required to deliver any Shares until all applicable federal and state laws and regulations have been complied with and all legal matters in connection with the issuance and delivery of the Shares have been approved by counsel for the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **Adjustments**. Any adjustments to the Restricted Stock Units will be governed by Section 5.3 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **Disposition of Securities**. By accepting the Award, you acknowledge that you have read and understand the Company's policy, and are aware of and understand your obligations under applicable securities laws in respect of trading in the Company's securities. The Company will have the right to recover, or receive reimbursement for, any compensation or profit you realize on the disposition of Shares received for Restricted Stock Units to the extent that the Company has a right of recovery or reimbursement under applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **Plan Terms Govern**. The vesting and redemption of Restricted Stock Units, the disposition of any Shares received for Restricted Stock Units, the treatment of gain on the disposition of these Shares, and the treatment of Dividend Equivalents are subject to the provisions of the Plan and any rules that the Committee may prescribe. The Plan document, as may be amended from time to time, is incorporated into this Agreement. Capitalized terms used in this Agreement have the meaning set forth in the Plan, unless otherwise stated in this Agreement. In the event of any conflict between the terms of the Plan and the terms of this Agreement, the Plan will control. By accepting the Award, you acknowledge that the Plan and the Plan prospectus, as in effect on the date of this Agreement, have been made available to you for your review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **Personal Data**.

&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. By entering into this Agreement, and as a condition of the grant of the Restricted Stock Units, you acknowledge that your personal data is collected, used, and transferred in view of the performance of this Agreement as described in this Section [16][17][18], which is to the full extent permitted by and in full compliance with applicable law.

&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. You understand that your local employer holds, by means of an automated data file, certain personal information about you, including, but not limited to, name, home address and telephone number, date of birth, social insurance number, salary, nationality, job title, any shares or directorships held in the Company, details of all restricted units or other entitlement to shares awarded, canceled, exercised, vested, unvested, or outstanding in your favor, for the purpose of managing and administering the Plan ("<u>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;c. You understand that part or all of your Data may be also collected, used, or held by the Company or its Affiliates for the purpose of managing and administering this award or any previous award/incentive plans. Specifically, your Data is transferred to, and/or collected, used, or held by the Total Rewards Department , your local and regional business managers, the Company's senior executives (e.g., SVP-HR, CEO), the Committee, and Morgan Stanley. The Company stores your Data for this purpose [until the last scheduled Vesting Date described in this Agreement OR for a period of xx years / months / days].

&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. You understand that your local employer will transfer Data to the Company or its Affiliates among themselves as necessary for the purposes of implementation, administration, and management of your participation in the Plan, and that the Company or its Affiliates may transfer Data among themselves, and/or each, in turn, further transfer Data to any third parties assisting the Company in the implementation, administration, and management of the Plan (the "<u>Data Recipients</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;e. You understand that the Company or its Affiliates, as well as the Data Recipients, are or may be located in your country of residence or elsewhere, such as the United States. You authorize the Company or its Affiliates, as well as the Data Recipients, to receive, possess, use, retain, and transfer Data in electronic or other form, for the purposes of implementing, administering, and managing your participation in the Plan, including any transfer of such Data, as may be required for the administration of the Plan and/or the subsequent holding of Shares on your behalf, to a broker or third party with whom the Shares may be deposited.

&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. You understand that you may show your opposition to the processing and transfer of your Data, and, may at any time, review the Data or request that any necessary amendments be made to it. To exercise your data privacy rights, refer to the Company's Data Privacy Global Policy [located on the Intranet / provide link to policy / otherwise describe how to find the policy].

&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. As soon as your Data is transferred to a third party Data Recipient (e.g., Morgan Stanley), (i) the Data Recipient becomes responsible for this Data (as a data controller), (ii) the Data will be subject to the Data Recipient's privacy statements and notices, (iii) the Company and its Affiliates will no longer be responsible for the transferred Data, and (iv) you should refer to the Data Recipient's statements and notices about its data protection policies and practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **Discretionary Nature and Acceptance of Award**. By accepting this Award, you agree to be bound by the terms of this Agreement and acknowledge that:

&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. The Company (and not your local employer) is granting these Restricted Stock Units. This Agreement is not derived from any preexisting labor relationship between you and the Company, but rather from a mercantile relationship.

&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. The Company may administer the Plan from outside your country of residence and United States law will govern all Restricted Stock Units granted under the Plan.

&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. Benefits and rights provided under the Plan are wholly discretionary and, although provided by the Company, do not constitute regular or periodic payments.

&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. The benefits and rights provided under the Plan are not to be considered part of your salary or compensation under your employment with your local employer for purposes of calculating any severance, resignation, redundancy or other end of service payments, vacation, bonuses, long-term service awards, indemnification, pension or retirement benefits, or any other payments, benefits or rights of any kind. You waive any and all rights to compensation or damages as a result of the termination of employment with your local employer for any reason whatsoever insofar as those rights result, or may result, from the loss or diminution in value of such rights under the Plan or your ceasing to have any rights under, or ceasing to be entitled to any rights under, the Plan as a result of such 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;e. The grant of Restricted Stock Units hereunder, and any future grant of Restricted Stock Units under the Plan, is entirely voluntary, and at the complete discretion of the Company. Neither the grant of the Restricted Stock Units nor any future grant by the Company will be deemed to create any obligation to make any future grants, whether or not such a reservation is explicitly stated at the time of such a grant. The Company has the right, at any time and/or on an annual basis, to amend, suspend or terminate the Plan; *provided*, however, that no such amendment, suspension, or termination will adversely affect your rights 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. The Plan will not be deemed to constitute, and will not be construed by you to constitute, part of the terms and conditions of employment. Neither the Company nor your local employer will incur any liability of any kind to you as a result of any change or amendment, or any cancellation, of the Plan at any time.

&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. Participation in the Plan will not be deemed to constitute, and will not be deemed by you to constitute, an employment or labor relationship of any kind with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **Limitations**. Nothing in this Agreement or the Plan gives you any right to continue in the employ of the Company or any of its Affiliates or to interfere in any way with the right of the Company or any Affiliate to terminate your employment at any time. Payment of your Restricted Stock Units is not secured by a trust, insurance contract or other funding medium, and you do not have any interest in any fund or specific asset of the Company by reason of this Award or the account established on your behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **Incorporation of Other Agreements**. This Agreement and the Plan constitute the entire understanding between you and the Company regarding the Restricted Stock Units. This Agreement supersedes any prior agreements, commitments or negotiations concerning the Restricted Stock Units. All capitalized terms used and not defined herein shall have the meaning given to such terms in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **Severability**. The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of the other provisions of the Agreement, which will remain in full force and effect. Moreover, if any provision is found to be excessively broad in duration, scope or covered activity, the provision will be construed so as to be enforceable to the maximum extent compatible with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. **Governing Law**. The Plan, this Agreement, and all determinations made and actions taken under the Plan or this Agreement shall be governed by the internal substantive laws, and not the choice of law rules, of the State of Delaware and construed accordingly, to the extent not superseded by applicable federal law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. **Agreement Changes**. The Company reserves the right to change the terms of this Agreement and the Plan without your consent to the extent necessary or desirable to comply with the requirements of Section 409A of the Code, the Treasury regulations and other guidance thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. **Successors and Assigns of the Company**. The terms and conditions of this Agreement shall be binding upon and shall inure to the benefit of the Company and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. **Acknowledgements**. By accepting this Agreement, you agree to the following: (i) you have carefully read, fully understand and agree to all of the terms and conditions described in this Agreement, the Plan, the Plan's prospectus and all accompanying documentation; and (ii) you understand and agree that this Agreement and the Plan constitute the entire understanding between you and the Company regarding the Restricted Stock Units, and that any prior agreements, commitments, or negotiations concerning the Restricted Stock Units are replaced and superseded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. **Award Acceptance**. To retain this Award, you must accept it by signing the Agreement below and, by signing this Agreement, you will be deemed to consent to the application of the terms and conditions set forth in this Agreement and the Plan. **Return the signed Agreement to [•].**

**I Accept:**

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| | |
|:---|:---|
| Print Name | EID |
| Signature | Date |

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VESTING SCHEDULE TABLE

## Exhibit 10.8

**Exhibit 10.8**

**2026 STOCK INCENTIVE PLAN<br> OF<br> ADI GLOBAL DISTRIBUTION INC. AND ITS AFFILIATES**

**FORM OF PERFORMANCE STOCK UNIT AGREEMENT**

This PERFORMANCE STOCK UNIT AGREEMENT (this "<u>Agreement</u>") as of the [DAY] day of [MONTH, YEAR] (the "<u>Award Date</u>") between ADI Global Distribution Inc. (the "<u>Company</u>") and [EMPLOYEE NAME] (the "<u>Participant</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Grant of Performance Award**. The Company has granted you a target number of Restricted Stock Units subject to the satisfaction of performance conditions (the "<u>Performance Stock Units</u>" and the "<u>Performance Award</u>"), subject to the terms of this Agreement and the terms of the 2026 Stock Incentive Plan of ADI Global Distribution Inc. and its Affiliates (the "<u>Plan</u>"). The target number of Performance Stock Units granted to you and covered by this Agreement is [●] (the "<u>Target Award</u>").

The Company will hold the Performance Stock Units in a bookkeeping account on your behalf until they become payable or are forfeited or cancelled.

[The details for this grant can be found on [●]. The Company reserves the right to change or correct any information contained on the [●] website to reflect the terms of the Award actually made by the Company on the Award Date or the Plan].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Definitions**. For purposes of this Agreement, the following definitions apply:

&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. "<u>Actual Award</u>" means (A) the product of (i) the Plan Payout Percentage (as determined under Section 3), and (ii) your Target Award. Notwithstanding anything in this Agreement to the contrary, the Committee (as defined in the Plan) may reduce the amount of your Actual Award in its sole discretion.

&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. "<u>Performance Cycle</u>" means the [**INSERT PERFORMANCE CYCLE DATES**].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Performance Measures**. The Plan Payout Percentage shall be determined based on [**DESCRIBE PERFORMANCE MEASURES**]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Rights as a Shareholder**. The Participant shall have no rights as a stockholder of the Company with respect to any Shares of Common Stock covered by or relating to the Performance Stock Units until such Shares are actually delivered to the Participant. For purposes of clarification, the Participant shall not have any voting or dividend rights with respect to the Shares of Common Stock underlying the Performance Stock Units unless and until such Shares are actually delivered to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Dividend Equivalents**. Except as otherwise determined by the Committee, in its sole discretion, the Participant will earn Dividend Equivalents in an amount equal to the value of any ordinary cash or stock dividends paid by the Company upon one Share of Common Stock for each unvested Performance Stock Unit, which may be credited in cash or Common Stock as determined by the Committee in such manner as the Committee may determine from time to time and will be subject to the same vesting provisions as apply to the Performance Stock Units to which such Dividend Equivalents relate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Payment Amount**. Each Performance Stock Unit represents one (1) Share of Common Stock. Your Actual Award will not exceed 200% of your Target Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Vesting and Payment**. Except as otherwise provided in this Agreement, the vesting and payment of an Actual Award is contingent upon (i) the achievement of a Plan Payout Percentage based on performance as described in Section 3, and (ii) you remaining actively employed by the Company on [**DESCRIBE VESTING PROVISIONS**] (the "<u>Vesting Date</u>").

[**DESCRIBE PAYMENT PROVISIONS, INCLUDING ANY AMOUNTS TO BE PAID IN CASH AND SHARES**]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Termination of Service**. Except as otherwise provided in this Agreement, if your Termination of Service occurs for any reason other than death, Retirement or Disability before the Vesting Date, any unvested Performance Stock Units will immediately be forfeited and your rights with respect to future payments under this Agreement will end.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Death, Disability or Retirement**. If your Termination of Service occurs before the Vesting Date because of your death, Retirement or Disability, you or your estate will receive the prorated value of the Actual Award you would otherwise have earned had your Service continued until the Vesting Date. The prorated value of the Actual Award shall be determined by multiplying the Actual Award by a fraction, the numerator of which is the number of days you were actively employed before your death, Retirement or termination due to Disability from the first day of the Performance Cycle, and the denominator of which is the total number of days from the first day of the Performance Cycle to the last day of the Performance Cycle. Such prorated Actual Award stated in Shares, shall be multiplied by the Fair Market Value of the Shares on the last trading day of the Performance Cycle and, in the each case shall be paid in Shares following the Performance Cycle at the same time payments, if any, are made to other Performance Stock Unit grantees. If your Retirement triggers the applicability of this Section 9, then as a condition thereof you hereby agree that for the remainder of any applicable continued vesting period or Performance Cycle, you will (i) remain available to provide service to the Company on an as-requested basis (which service, for purposes of compliance with Section 409A of the Code, shall not exceed 20% of your pre-Termination of Service level of Service to the Company) and (ii) execute, in the discretion of the Company, a non-competition agreement in favor of the Company in the form provided by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. [**Involuntary Termination of Service Not for Cause**. Except as provided in Section 11, if your Termination of Service occurs before the payment date because of your involuntary Termination of Service not for Cause, you will receive the prorated value of your Actual Award. The prorated value of the Actual Award shall be determined by multiplying the Actual Award by a fraction, the numerator of which is the number of days you were actively employed before your Termination of Service from the first day of the Performance Cycle, and the denominator of which is the total number of days from the first day of the Performance Cycle to the last day of the Performance Cycle. Such prorated Actual Award shall be paid in Shares following the Performance Cycle at the same time payments, if any, are made to other Performance Stock Unit grantees.]<sup>1</sup>

<sup>1</sup> Insert for Awards being made to Section 16 officers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Change in Control**. Notwithstanding anything herein to the contrary, in the event of a Change in Control (as defined in the Plan), the following provisions apply:

&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. <u>Rollover of Performance Awards</u>. If adjusted or exchanged pursuant to the Plan, Performance Stock Units that have not vested or terminated as of the date of the Change in Control will continue to vest in accordance with the schedule described in Section 7 of this Agreement (or as adjusted if more favorable) and, if applicable, be subject to proration as provided in Section 9 [or Section 10]; provided, however, that (x) if, on or after the Change in Control, you incur an involuntary Termination of Service not for Cause (as defined in Section 2 of the Plan) or a voluntary Termination of Service for Good Reason (as defined in Section 2 of the Plan) on or before the second anniversary of the date of the Change in Control and after the Performance Cycle has ended, your unpaid Actual Award will immediately vest in full and be settled no later than the earlier of 90 days after the Termination of Service or two and one-half months after the end of the calendar year in which the Termination of Service occurs, or (y) if, on or after the Change in Control, you incur an involuntary Termination of Service not for Cause (as defined in Section 2 of the Plan) or a voluntary Termination of Service for Good Reason (as defined in Section 2 of the Plan) during the two-year period following the Change in Control and before the Performance Cycle has ended, an amount equal to the Target Award, pro-rated to reflect the portion of the Performance Cycle that elapsed before such Termination of Service, will be settled no later than the earlier of 90 days after the Termination of Service or two and one-half months after the end of the calendar year in which the Termination of Service occurs.

&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. <u>Cashout of Performance Awards</u>. Unless adjusted or exchanged pursuant to the Plan, Performance Stock Units that have not vested or terminated as of the date of the Change in Control will immediately vest as provided in this subsection (b). If the Change in Control occurs after the Performance Cycle has ended but before the Vesting Date specified in Section 7, you will receive your unpaid Actual Award, if any, provided that if Section 9 [or Section 10] is applicable to your Award, your Actual Award will be subject to the proration described therein,. If the Change in Control occurs before the Performance Cycle has ended, you will receive your unpaid Actual Award as calculated based on the Target Award or other level of substantially achieved performance, as determined by the Committee prior to the Change in Control, provided that if Section 9 [or Section 10] is applicable to your Award, your Actual Award will be subject to the proration described there. No later than the earlier of 90 days after the date of the Change in Control or two and one-half months after the end of the calendar year in which the Change in Control occurs, you will receive for the applicable Performance Stock Units a single cash payment equal to the product of the number of vested and outstanding Performance Stock Units as of the date of the Change in Control (including any Performance Stock Units that vest pursuant to this Section [10][11]) and an amount equal to the greater of (i) the highest price per Share paid by the successor, as determined by the Committee, and (ii) the highest Fair Market Value during the period of 90 days that ends on the date of the Change in Control. Any securities or other property that is part or all of the consideration paid for Shares pursuant to the Change in Control will be valued at the higher of (x) the valuation placed on the securities or property by any entity that is a party with the Company to the Change in Control, or (y) the valuation placed on the securities or property by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Withholdings**. The Company or your local employer shall have the power and the right to deduct or withhold, or require you to remit to the Company or to your local employer, prior to any issuance or delivery of Shares, an amount sufficient to satisfy taxes imposed under the laws of any country, state, province, city or other jurisdiction, including but not limited to income taxes, capital gain taxes, transfer taxes, and social security contributions, and National Insurance Contributions, that are required by law to be withheld as determined by the Company or your local employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Transfer of Performance Award**. You may not transfer the Performance Stock Units or any interest in such Units or any portion of your Actual Award except by will or the laws of descent and distribution [or except as permitted by the Committee and as specified in the Plan]. Any other attempt to dispose of your interest will be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. [**Requirements for and Forfeiture of Performance Award**.

&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. <u>General</u>. The Performance Award is expressly contingent upon you complying with the terms, conditions and definitions contained in this Section [13][14] and in any other agreement that governs your noncompetition with the Company and its Affiliates, your nonsolicitation of employees, customers, suppliers, business partners and vendors of the Company and its Affiliates, and/or your conduct with respect to trade secrets and proprietary and confidential information of the Company and its Affiliates. For the avoidance of doubt, for purposes of this Section [13][14], the "<u>Company and its Affiliates</u>" shall include ADI Global Distribution Inc. and its predecessors, designees and successors, as well as its past, present and future operating companies, divisions, subsidiaries, affiliates and other business units, including businesses acquired by purchase of assets, stock, merger or otherwise.

&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. <u>Remedies</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. You expressly agree and acknowledge that the forfeiture provisions of Section [13][14](b)(2) of this Agreement shall apply if, from the Award Date until the date that is [twenty-four (24)] months after your Termination of Service for any reason other than Retirement, or in the case of Retirement only, the later of (A) [twenty-four (24)] months after your Termination of Service and (B) the completion of the Performance Cycle, for any reason, you (i) enter into an employment, consultation or similar agreement or arrangement (including any arrangement for service as an agent, partner, stockholder, consultant, officer or director) with any entity or person engaged in a business in which the Company or its Affiliates are engaged if the business is competitive (in the sole judgment of the Committee) with the Company or its Affiliates and the Committee has not approved the agreement or arrangement in writing, or (ii) make any statement, publicly or privately (other than to your spouse and legal advisors), which would be disparaging (as defined below) to the Company and its Affiliates or their businesses, products, strategies, prospects, condition, or reputation or that of their directors, employees, officers or members; provided, however, that nothing shall preclude you from making any statement in good faith which is required by any applicable law or regulation or the order of a court or other governmental body, or (iii) write or contribute to a book, article or other media publication, whether in written or electronic format, that is in any way descriptive of the Company or its Affiliates or your career with the Company or its Affiliates without first submitting a draft thereof, at least thirty (30) days in advance, to the Company's Executive Vice President, General Counsel and Corporate Secretary or his or her delegate, whose judgment about whether such book, article or other media publication is disparaging shall be determinative; or such a book, article or other media publication is published after a determination that it is disparaging; provided, however, that nothing herein shall preclude you from reporting (in good faith) possible violations of federal law or regulation to any governmental agency or entity, including but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and/or any agency Inspector General, or making any other disclosures that are protected under the whistleblower provisions of federal or state law or regulation, or from otherwise making any statement (in good faith) which is required by any applicable law or regulation or the order of a court or other governmental body.

For purposes of this Section [13][14](b)(1), the term "<u>disparaging</u>" shall mean any statement or representation (whether oral or written and whether true or untrue) which, directly or by implication, tends to create a negative, adverse, or derogatory impression about the subject of the statement or representation or which is intended to harm the reputation of the subject of the statement or representation.

&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;ii. In addition to the relief described in any other agreement that governs your noncompetition with the Company or its Affiliates, your nonsolicitation of the employees, customers, suppliers, business partners and vendors of the Company or its Affiliates, and/or your conduct with respect to the trade secrets and proprietary and confidential information of the Company or its Affiliates, if the Committee determines, in its sole judgment, that you have violated the terms of any such agreement or you have engaged in an act that violates Section [13][14](b)(1) of this Agreement, (i) any Performance Stock Units that have not vested under this Agreement shall immediately be cancelled, and you shall forfeit any rights you have with respect to such Units as of the date of the Committee's determination, and (ii) you shall immediately deliver to the Company Shares (or the cash equivalent) equal in value to the Performance Stock Units you received during the period beginning twelve (12) months prior to your Termination of Service and ending on the date of the Committee's determination.

&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;iii. Notwithstanding anything in the Plan or this Agreement to the contrary, you acknowledge that the Company may be entitled or required by law, Company policy or the requirements of an exchange on which the Shares are listed for trading, to recoup compensation paid to you pursuant to the Plan, and you agree to comply with any Company request or demand for recoupment.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **Restrictions on Payment of Shares**. Payment of Shares is subject to the conditions that, to the extent required at the time of settlement, (i) the Shares underlying the Performance Award and/or Actual Award shall be duly listed, upon official notice of redemption, upon the New York Stock Exchange, and (ii) a Registration Statement under the Securities Act of 1933 with respect to the Shares shall be effective. The Company shall not be required to deliver any Common Stock until all applicable federal and state laws and regulations have been complied with and all legal matters in connection with the issuance and delivery of the Shares have been approved by counsel for the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **Adjustments**. Any adjustments to this Performance Award will be governed by Section 5.3 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **Disposition of Securities**. By accepting the Performance Award, you acknowledge that you have read and understand (i) the Company's policy, and are aware of and understand your obligations under applicable securities laws in respect of trading in the Company's securities, and (ii) the Company's stock ownership guidelines as they apply to this Performance Award. The Company shall have the right to recover, or receive reimbursement for, any compensation or profit you realize on the disposition of Shares received to the extent that the Company has a right of recovery or reimbursement under applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **Plan Terms Govern**. This Award (including the vesting and redemption of Performance Stock Units, the disposition of any Shares received, the treatment of gain on the disposition of these Shares, and the treatment of Dividend Equivalents) are subject to the provisions of the Plan and any rules that the Committee may prescribe. The Plan document, as may be amended from time to time, is incorporated into this Agreement. Capitalized terms used in this Agreement have the meaning set forth in the Plan, unless otherwise stated in this Agreement. In the event of any conflict between the terms of the Plan and the terms of this Agreement, the Plan will control. By accepting the Performance Award, you acknowledge that the Plan and the Plan prospectus, as in effect on the date of this Agreement, have been made available to you for your review. Without limiting the generality of the foregoing, you agree that all determinations made by the Committee of the Performance Measures described in Section 3 shall be final, binding and conclusive on you in accordance with Article III of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **Personal Data**.

&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. By entering into this Agreement, and as a condition of the grant of this Award, you acknowledge that your personal data is collected, used, and transferred in view of the performance of this Agreement as described in this Section [17] [18][19], which is to the full extent permitted by and in full compliance with applicable law.

&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. You understand that your local employer holds, by means of an automated data file, certain personal information about you, including, but not limited to, name, home address and telephone number, date of birth, social insurance number, salary, nationality, job title, any shares or directorships held in the Company, details of all Performance Stock Units or other entitlement to shares awarded, canceled, exercised, vested, unvested, or outstanding in your favor, for the purpose of managing and administering the Plan ("<u>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;c. You understand that part or all of your Data may be also collected, used, or held by the Company or its Affiliates for the purpose of managing and administering this award or any previous award/incentive plans. Specifically, your Data is transferred to, and/or collected, used, or held by the Total Rewards Department , your local and regional business managers, the Company's senior executives (e.g., SVP-HR, CEO), the Committee, and Morgan Stanley. The Company stores your Data for this purpose [until the last vesting date described in this Agreement OR for a period of xx years / months / days].

&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. You understand that your local employer will transfer Data to the Company or its Affiliates among themselves as necessary for the purposes of implementation, administration, and management of your participation in the Plan, and that the Company or its Affiliates may transfer Data among themselves, and/or each, in turn, further transfer Data to any third parties assisting the Company in the implementation, administration, and management of the Plan (the "<u>Data Recipients</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;e. You understand that the Company or its Affiliates, as well as the Data Recipients, are or may be located in your country of residence or elsewhere, such as the United States. You authorize the Company or its Affiliates, as well as the Data Recipients, to receive, possess, use, retain, and transfer Data in electronic or other form, for the purposes of implementing, administering, and managing your participation in the Plan, including any transfer of such Data, as may be required for the administration of the Plan and/or the subsequent holding of Shares on your behalf, to a broker or third party with whom the Shares may be deposited.

&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. You understand that you may show your opposition to the processing and transfer of your Data, and, may at any time, review the Data or request that any necessary amendments be made to it. To exercise your data privacy rights, refer to the Company's Data Privacy Global Policy [located on the Intranet / provide link to policy / otherwise describe how to find the policy].

&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. As soon as your Data is transferred to a third party Data Recipient (e.g., Morgan Stanley), (i) the Data Recipient becomes responsible for this Data (as a data controller), (ii) the Data will be subject to the Data Recipient's privacy statements and notices, (iii) the Company and its Affiliates will no longer be responsible for the transferred Data, and (iv) you should refer to the Data Recipient's statements and notices about its data protection policies and practices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **Discretionary Nature and Acceptance of Performance Award**. By accepting this Performance Award, you agree to be bound by the terms of this Agreement and acknowledge that:

&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. The Company (and not your local employer) is granting these Performance Stock Units. This Agreement is not derived from any preexisting labor relationship between you and the Company, but rather from a mercantile relationship.

&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. The Company may administer the Plan from outside your country of residence and United States law will govern all Performance Stock Units granted under the Plan.

&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. Benefits and rights provided under the Plan are wholly discretionary and, although provided by the Company, do not constitute regular or periodic payments.

&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. The benefits and rights provided under the Plan are not to be considered part of your salary or compensation under your employment with your local employer for purposes of calculating any severance, resignation, redundancy or other end of service payments, vacation, bonuses, long-term service awards, indemnification, pension or retirement benefits, or any other payments, benefits or rights of any kind. You waive any and all rights to compensation or damages as a result of the termination of employment with your local employer for any reason whatsoever insofar as those rights result, or may result, from the loss or diminution in value of such rights under the Plan or your ceasing to have any rights under, or ceasing to be entitled to any rights under, the Plan as a result of such 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;e. The grant of this Award, and any future grant of Performance Stock Units under the Plan, is entirely voluntary, and at the complete discretion of the Company. Neither the grant of the Performance Stock Units nor any future grant by the Company will be deemed to create any obligation to make any future grants, whether or not such a reservation is explicitly stated at the time of such a grant. The Company has the right, at any time and/or on an annual basis, to amend, suspend or terminate the Plan; provided, however, that no such amendment, suspension, or termination will adversely affect your rights 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. The Plan will not be deemed to constitute, and will not be construed by you to constitute, part of the terms and conditions of employment. Neither the Company nor your local employer will incur any liability of any kind to you as a result of any change or amendment, or any cancellation, of the Plan at any time.

&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. Participation in the Plan will not be deemed to constitute, and will not be deemed by you to constitute, an employment or labor relationship of any kind with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. **Limitations**. Nothing in this Agreement or the Plan gives you any right to continue in the employ of the Company or any of its Affiliates or to interfere in any way with the right of the Company or any Affiliate to terminate your employment at any time. Payment of your Performance Stock Units is not secured by a trust, insurance contract or other funding medium, and you do not have any interest in any fund or specific asset of the Company by reason of this Performance Award or the account established on your behalf. You have no rights as a shareowner of the Company pursuant to the Performance Stock Units until Shares are actually delivered to you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. **Incorporation of Other Agreements**. This Agreement and the Plan constitute the entire understanding between you and the Company regarding the Performance Stock Units. This Agreement supersedes any prior agreements, commitments or negotiations concerning the Performance Stock Units. All capitalized terms used and not defined herein shall have the meaning given to such terms in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. **Severability**. The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of the other provisions of the Agreement, which will remain in full force and effect. Moreover, if any provision is found to be excessively broad in duration, scope or covered activity, the provision will be construed so as to be enforceable to the maximum extent compatible with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. **Governing Law**. The Plan, this Agreement, and all determinations made and actions taken under the Plan or this Agreement shall be governed by the internal substantive laws, and not the choice of law rules, of the State of Delaware and construed accordingly, to the extent not superseded by applicable federal law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. **Agreement Changes**. The Company reserves the right to change the terms of this Agreement and the Plan without your consent to the extent necessary or desirable to comply with the requirements of Section 409A of the Code, the Treasury regulations and other guidance thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. **Acknowledgements**. By accepting this Agreement, you agree to the following: (i) you have carefully read, fully understand and agree to all of the terms and conditions described in this Agreement, the Plan, the Plan's prospectus and all accompanying documentation; and (ii) you understand and agree that this Agreement and the Plan constitute the entire understanding between you and the Company regarding this Award, and that any prior agreements, commitments, or negotiations concerning the Award are replaced and superseded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. **Award Acceptance**. To retain this Award, you must accept it by signing the Agreement below and, by signing this Agreement, you will be deemed to consent to the application of the terms and conditions set forth in this Agreement and the Plan. Return the signed Agreement to [●].

**I Accept**:

---

| | |
|:---|:---|
| Print Name | EID |
| Signature | Date |

---

## Exhibit 10.9

**Exhibit 10.9**

**2026 STOCK INCENTIVE PLAN<br> OF<br> ADI GLOBAL DISTRIBUTION INC. AND ITS AFFILIATES**

**RESTRICTED STOCK UNIT AGREEMENT<br> NON-EMPLOYEE DIRECTORS**

 

---

| |
|:---|
| **Participant:** |
| **Award Date:** |
| **Number of Restricted Units Granted:** |

---

This RESTRICTED STOCK UNIT AGREEMENT (this "<u>Agreement</u>") as of the Award Date between ADI Global Distribution Inc. (the "<u>Company</u>") and the Participant.

1. **Grant of Award.** The Company has granted you Restricted Stock Units
 (the " <u>Award</u> "), subject to the terms of this Agreement and the terms of the 2026 Stock Incentive Plan of ADI
 Global Distribution Inc. and its Affiliates (the " <u>Plan</u> "). The Company will hold the Restricted Stock Units in a
 bookkeeping account on your behalf until they become payable or are forfeited or cancelled.

2. **Rights as a Shareholder.** You shall have no rights as a stockholder of the
Company with respect to any Shares of Common Stock covered by or relating to the Restricted Stock Units until such Shares are actually
delivered to you. For purposes of clarification, you shall not have any voting or dividend rights with respect to the Shares of Common
Stock underlying the Restricted Stock Units unless and until such Shares are actually delivered to you.

3. **Dividend Equivalents.** Except as otherwise determined by the Committee, in
its sole discretion, if a cash dividend is declared and paid by the Company with respect to its Common Stock prior to the settlement date
of the Award specified in Section 6, you will be credited as of the applicable dividend payment date with an additional number of Restricted
Stock Units (the " <u>Dividend RSUs</u> ") equal to (i) the total cash dividend you would have received if your then outstanding
Restricted Stock Units (including any previously credited Dividend RSUs) had been actual Shares, divided by (ii) the Fair Market Value
of a Share as of the applicable dividend payment date (with the quotient rounded down to the nearest whole number). Prior to the time
your Restricted Stock Units are vested, Dividend RSUs will be subject to the same vesting provisions as apply to the Restricted Stock
Units to which such Dividend RSUs relate. Once credited to your account and vested as provided in the foregoing sentence, Dividend RSUs
will be considered Restricted Stock Units for all purposes of this Agreement.

4. **Payment Amount.** Each Restricted Stock Unit represents one (1) Share of Common Stock.

5. **Vesting.** Except as otherwise provided in Sections 8 or 9 of this Agreement,
the Restricted Stock Units will vest 100% on the earlier of (i) the first anniversary of the Award Date or (ii) the next annual meeting
of shareholders following the Award Date.

6. **Form and Timing of Payment.** Vested Restricted Stock Units will be redeemed
solely for Shares. Except to the extent that a valid election to defer settlement and payment of vested Restricted Stock Units has been
made as provided in Section 12 prior to the grant of this Award, payment of vested Restricted Stock Units will be made as soon as practicable
following the applicable vesting date but in no event later than two and one-half (2-1/2) months following the end of the calendar year
in which the vesting date occurs. Settlement and payment of any deferred restricted stock units shall be made in accordance with the governing
election form. Delivery of Shares in settlement of this Agreement shall be effected by an appropriate entry in the stock register maintained
by the Company's transfer agent with a notice of issuance provided to you, or by the electronic delivery of the Shares to a designated
brokerage account, and shall be subject to compliance with all applicable legal requirements, including compliance with the requirements
of applicable federal and state securities laws. As determined by
the Company in its sole discretion prior to the vesting date, any fractional Shares may be paid in cash or rounded up to the nearest whole
Share.

7. **Termination of Directorship.** If you cease to be a director of the Company
for any reason other than your death or Disability, any Restricted Stock Units that have not vested as of the date of the termination
of your directorship will immediately be forfeited, and your rights with respect to these Restricted Stock Units will end. As used herein
" <u>Disability</u> " means the permanent inability as a result of accident or sickness to perform any and every duty pertaining
to your occupation or employment for which you are suited by reason of your previous training, education and experience; *provided*,
that, to the extent an Award subject to Section 409A of the Code shall become payable upon your Disability, a Disability shall not be
deemed to have occurred for such purposes unless the circumstances would also result in a "disability" within the meaning
of Section 409A of the Code.

8. **Death or Disability.** If you cease to be a director of the Company because
of your death or Disability, all of your unvested Restricted Stock Units will vest as of the date of the termination of your directorship,
and payment will be made in accordance with Section 6. If you are deceased, the Company will make a payment to your estate only after
the Committee has determined that the payee is the duly appointed executor or administrator of your estate.

9. **Change in Control.** Notwithstanding anything herein to the contrary, in
the event of a Change in Control, Restricted Stock Units that have not vested or terminated as of the date of
Change in Control will vest as of immediately prior to the Change in Control.

10. **Withholdings.** The Company shall have the power and the right to deduct
or withhold, or require you to remit, prior to any issuance or delivery of Shares underlying Restricted Stock Units, an amount sufficient
to satisfy taxes imposed under the laws of any country, state, province, city or other jurisdiction, including but not limited to income
taxes, capital gain taxes, transfer taxes, and social security contributions, and National Insurance Contributions, that are required
by law to be withheld as determined by the Company.

11. **Transfer of Award.** You may not transfer the Restricted Stock Units or any interest in such
 Units except by will or the laws of descent and distribution or except as otherwise permitted by Section 7.1 of the Plan. Any other
 attempt to dispose of your interest will be null and void.

12. **Deferral of Payment.** To the extent you have elected to defer the settlement
and payment of the vested Restricted Stock Units subject to this Award by submitting an election form approved by the Committee to the
Company not later than the December 31 immediately preceding the Award Date, settlement and payment of this Award will occur as provided
in such election form, rather than as provided in Section 6 above.

13. **Restrictions on Payment of Shares.** Payment of Shares for your Restricted
Stock Units is subject to the conditions that, to the extent required at the time of settlement, (i) the Shares underlying the Restricted
Stock Units will be duly listed, upon official notice of redemption, upon the New York Stock Exchange, and (ii) a Registration Statement
under the Securities Act of 1933 with respect to the Shares will be effective. The Company will not be required to deliver any Common
Stock until all applicable federal and state laws and regulations have been complied with and all legal matters in connection with the
issuance and delivery of the Shares have been approved by counsel for the Company.

14. **Adjustments.** Any adjustments to the Restricted Stock Units will be governed by Section 5.3 of
 the Plan.

15. **Disposition of Securities.** By accepting the Award, you acknowledge that you
have read and understand the Company's policy, and are aware of and understand your obligations under applicable securities laws
in respect of trading in the Company's securities. The Company will have the right to recover, or receive reimbursement for, any
compensation or profit you realize on the disposition of Shares received for Restricted Stock Units to the extent that the Company has
a right of recovery or reimbursement under applicable securities laws.

16. **Plan Terms Govern.** The vesting and redemption of Restricted Stock Units,
the disposition of any Shares received for Restricted Stock Units, the treatment of gain on the disposition of these Shares, and the treatment
of Dividend Equivalents are subject to the provisions of the Plan and any rules that the Committee may prescribe. The Plan document, as
may be amended from time to time, is incorporated into this Agreement. Capitalized terms used in this Agreement have the meaning set forth
in the Plan, unless otherwise stated in this Agreement. In the event of any conflict between the terms of the Plan and the terms of this
Agreement, the Plan will control. By accepting the Award, you acknowledge that the Plan and the Plan prospectus, as in effect on the date
of this Agreement, have been made available to you for your review.

17. **Personal Data.** 

&nbsp;&nbsp;&nbsp;&nbsp;a. By entering into this Agreement, and as a condition of the
grant of the Restricted Stock Units, you acknowledge that your personal data is collected, used, and transferred in view of the performance
of this Agreement as described in this Section 17, which is to the full extent permitted by and in full compliance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;b. You understand that the Company holds, by means of an automated
data file, certain personal information about you, including, but not limited to, name, home address and telephone number, date of birth,
social insurance number, retainer payments, nationality, job title, any shares or directorships held, details of all Restricted Stock
Units or other entitlement to shares awarded, canceled, exercised, vested, unvested, or outstanding in your favor, for the purpose of
managing and administering the Plan (" <u>Data</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;c. You understand that part or all of your Data may be also
collected, used, or held by the Company or its subsidiaries or affiliates (" <u>Affiliates</u> ") for the purposes of managing
and administering this award or any previous award/incentive plans. Specifically, your Data is transferred to, and/or collected, used,
or held by the Executive Compensation Department, the Company's senior executives (*e*. *g*., SVP-HR, CEO, Corporate Secretary's
office), the Committee, the Committee's compensation consultant, and Morgan Stanley. The Company stores your Data for this purpose
until the last vesting date described in this Agreement OR for a period of seven years.

&nbsp;&nbsp;&nbsp;&nbsp;d. You understand that the Company and its Affiliates will transfer
Data among themselves as necessary for the purposes of implementation, administration, and management of your participation in the Plan,
and that the Company or its Affiliates may transfer Data among themselves, and/or each, in turn, further transfer Data to any third parties
assisting the Company in the implementation, administration, and management of the Plan (the " <u>Data Recipients</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;e. You understand that the Company or its Affiliates, as well
as the Data Recipients, are or may be located in your country of residence or elsewhere, such as the United States. You authorize the
Company or its Affiliates, as well as the Data Recipients, to receive, possess, use, retain, and transfer Data in electronic or other
form, for the purposes of implementing, administering, and managing your participation in the Plan, including any transfer of such Data,
as may be required for the administration of the Plan and/or the subsequent holding of Shares on your behalf, to a broker or third party
with whom the Shares may be deposited.

&nbsp;&nbsp;&nbsp;&nbsp;f. You understand that you may show your opposition to the processing
and transfer of your Data, and, may at any time, review the Data or request that any necessary amendments be made to it. To exercise
your data privacy rights, refer to the Company's Data Privacy Global Policy located at [provide link to policy / otherwise describe
how to find the policy].

&nbsp;&nbsp;&nbsp;&nbsp;g. As soon as your Data is transferred to a third party Data
Recipient (*e*. *g*., Morgan Stanley or the Committee's compensation consultant), (i) the Data Recipient becomes
responsible for this Data (as a data controller), (ii) the Data will be subject to the Data Recipient's privacy statements
and notices, (iii) the Company and its Affiliates will no longer be responsible for the transferred Data, and (iv) you should refer to the
Data Recipient's statements and notices about its data protection policies and practices.

18. **Discretionary Nature and Acceptance of Award.** By accepting this Award, you
agree to be bound by the terms of this Agreement and acknowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;a. The Company is granting your Restricted Stock Units, and
this Agreement is not derived from any preexisting labor relationship between you and the Company, but rather from a mercantile relationship.

&nbsp;&nbsp;&nbsp;&nbsp;b. The Company may administer the Plan from outside your country
of residence and United States law will govern all Restricted Stock Units granted under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;c. Benefits and rights provided under the Plan do not constitute
regular or periodic payments.

19. **Limitations.** Payment of your
Restricted Stock Units is not secured by a trust, insurance contract or other funding medium, and you do not have any interest in any
fund or specific asset of the Company by reason of this Award or the account established on your behalf.

20. **Incorporation of Other Agreements.** This Agreement and the Plan constitute
the entire understanding between you and the Company regarding the Restricted Stock Units. This Agreement supersedes any prior agreements,
commitments or negotiations concerning the Restricted Stock Units. All capitalized terms used and not defined herein shall have the meaning
given to such terms in the Plan.

21. **Severability.** The invalidity or unenforceability of any provision of this
Agreement will not affect the validity or enforceability of the other provisions of the Agreement, which will remain in full force and
effect. Moreover, if any provision is found to be excessively broad in duration, scope or covered activity, the provision will be construed
so as to be enforceable to the maximum extent compatible with applicable law.

22. **Governing Law.** The Plan, this Agreement, and all determinations made and
actions taken under the Plan or this Agreement shall be governed by the internal substantive laws, and not the choice of law rules, of
the State of Delaware and construed accordingly, to the extent not superseded by applicable federal law.

23. **Agreement Changes.** The Company reserves the right to change the terms of
this Agreement and the Plan without your consent to the extent necessary or desirable to comply with the requirements of Section 409A
of the Code, the Treasury regulations and other guidance thereunder.

24. **Acknowledgements and Acceptance.** By accepting this Agreement, you agree to
the following: (i) you have carefully read, fully understand and agree to all of the terms and conditions described in this Agreement,
the Plan, the Plan's prospectus and all accompanying documentation; and (ii) you understand and agree that this Agreement and the
Plan constitute the entire understanding between you and the Company regarding the Restricted Stock Units, and that any prior agreements,
commitments or negotiations concerning the Restricted Stock Units are replaced and superseded.

---

| |
|:---|
| **I Accept:** |
| Print Name |
| Acceptance Date |

---

**VESTING SCHEDULE TABLE**

## Exhibit 10.10

**Exhibit 10.10**

**ADI Global Distribution Inc.**

**NON-EMPLOYEE DIRECTOR**

**FORM OF DEFERRED STOCK UNIT AGREEMENT (DEFERRED DIRECTOR FEES)**

---

| |
|:---|
| **Participant:** |
| **Award Date:** |
| **Number of Restricted Units Granted:** |

---

This DEFERRED STOCK UNIT AGREEMENT (this "<u>Agreement</u>") is entered into as of the "<u>Award Date</u>" between ADI Global Distribution Inc. (the "<u>Company</u>") and the Participant. Capitalized terms used in this Agreement have the meaning set forth in the ADI Deferred Compensation Plan for Non-Employee Directors (the "<u>Deferred Compensation Plan</u>"), unless otherwise stated in this Agreement.

**Background**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to the provisions of the Deferred Compensation Plan and the 2026 Stock Incentive Plan of ADI Global Distribution Inc. and its Affiliates (as amended, the "<u>Stock Plan</u>"), you have elected to receive 100% of your (a) annual cash retainer for service on the Company's Board of Directors (the "<u>Board</u>"), and (b) other fees relating to your service as a chairperson of the Board or chairperson or member of any committee of the Board (other than reimbursements), as applicable (collectively, the "<u>Director Fees</u>"), in the form of restricted stock units deferred pursuant to Section 4.4(f) of the Stock Plan ("<u>Deferred Stock Units</u>"), each of which represents the right to receive one Share of the Company's Common Stock. Settlement of the Deferred Stock Units will be deferred until such time as detailed in the Deferred Compensation Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The number of Deferred Stock Units to be credited to your account shall be determined by dividing (i) 100% of the Director Fees that otherwise would have been paid on an applicable payment date by (ii) the Fair Market Value of one share of Common Stock on such date (each, a "<u>Deferred Stock Unit Award</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Each quarterly Deferred Stock Unit Award will be evidenced by an electronic grant notification, and each such grant notification when issued by the Company will be incorporated into and made a part of this Agreement. The terms and conditions of each quarterly Deferred Stock Unit Award are set forth in this Agreement, including the applicable grant notification, and in the Stock Plan and the Deferred Compensation Plan, copies of which you agree you have received and reviewed.

1. **Grant of Award.** Subject to Sections 7 and 8 below, Deferred Stock Units shall
be credited to your account as described in this Section 1 on the date you would have otherwise received a payment of the Director Fees
(each such date, a " <u>Grant Date</u> "). The number of Deferred Stock Units to be credited to your account on the applicable
Grant Date shall be equal to the result of dividing the cash amount deferred as of such date by the Fair Market Value of one share of
Common Stock on such date, subject to the maximum annual individual dollar limit (" <u>Maximum Annual Limit</u> ") under the
Stock Plan (" <u>Grant Date Calculation</u> "). If a Grant Date Calculation is performed and after giving effect to any equity
award granted to you by the Company on or prior to such Grant Date, including your annual grant of the Company's restricted stock
units for service on the Board (collectively, the " <u>Equity Grant</u> "), the number of Deferred Stock Units you are entitled
to receive when aggregated with the Equity Grant would exceed the Maximum Annual Limit, any Director Fees in excess of the Maximum Annual
Limit shall instead be deferred into a cash sub-account pursuant to the terms of the Deferred Compensation Plan. If a Grant Date Calculation
is performed relating to a payment of Director Fees other than the payment of the fourth fiscal quarter's Director Fees and such
Grant Date Calculation would otherwise result in a fractional Deferred Stock Unit amount, the remaining cash value not applied to Deferred
Stock Units (since fractional units are not allowed under the Stock Plan) shall be rolled forward in cash and added to the next payment of Director
Fees and applied to the subsequent Grant Date Calculation. In the event a fractional amount remains after the fourth fiscal quarter's
Grant Date Calculation, such fractional amount shall be forfeited. Each Deferred Stock Unit will represent the right to receive one share
of the Company's Common Stock. The Deferred Stock Units granted to you will be credited to an account in your name maintained by
the Company. This account shall be unfunded and maintained for book-keeping purposes only, with the Deferred Stock Units representing
an unfunded and unsecured obligation of the Company.

2. **Rights as a Stockholder.** You shall have no rights as a stockholder of the
Company with respect to any Shares of Common Stock covered by or relating to the Deferred Stock Units until such Shares are actually delivered
to you. For purposes of clarification, you shall not have any voting or dividend rights with respect to the Shares of Common Stock underlying
the Deferred Stock Units unless and until such Shares are actually delivered to you.

3. **Dividend Equivalents.** Except as otherwise determined by the Committee, in
its sole discretion, if a cash dividend is declared and paid by the Company with respect to its Common Stock prior to the settlement date
of the Award specified in Section 6, you will be credited on the date such dividend is paid with a number of additional Deferred Stock
Units (the " <u>Dividend DSUs</u> ") equal to the result of dividing (i) the product of (x) the total number of Deferred Stock
Units credited to your account on the record date for such dividend and (y) the per share amount of such dividend by (ii) the Fair Market
Value of one Share on the date such dividend is paid by the Company to the holders of Common Stock. Once credited to your account, Dividend
DSUs will be considered Deferred Stock Units for all purposes of this Agreement.

4. **Payment Amount.** Each Deferred Stock Unit represents one (1) share of Common
Stock.

5. **Vesting.** The Deferred Stock Units subject to this Agreement are 100% vested
as of their respective Grant Dates.

6. **Form and Timing of Payment.** Deferred Stock Units will be redeemed solely for
Shares. Settlement and payment of the Deferred Stock Units shall be made in accordance with the terms of the Deferred Compensation Plan.
Delivery of Shares in settlement of this Agreement shall be effected by an appropriate entry in the stock register maintained by the Company's
transfer agent with a notice of issuance provided to you, or by the electronic delivery of the Shares to a designated brokerage account,
and shall be subject to compliance with all applicable legal requirements, including compliance with the requirements of applicable federal
and state securities laws. As determined by the Company in its sole discretion prior to the settlement date, any fractional Shares may
be paid in cash or rounded up to the nearest whole Share.

7. **Termination of Directorship.** If you cease to be a director of the Company
for any reason you will no longer be entitled to receive any additional quarterly Deferred Stock Unit Awards pursuant to this Agreement.

8. **Change in Control.** Upon a Change in Control you will no longer be entitled
to receive any additional quarterly Deferred Stock Unit Awards pursuant to this Agreement.

9. **Withholdings.** To the extent applicable, the Company shall have the power and
the right to deduct or withhold, or require you to remit, prior to any issuance or delivery of Shares underlying Deferred Stock Units,
an amount sufficient to satisfy taxes imposed under the laws of any country, state, province, city or other jurisdiction, including but
not limited to income taxes, capital gain taxes, transfer taxes, and social security contributions, and National Insurance Contributions,
that are required by law to be withheld as determined by the Company.

10. **Transfer of Award.** You may not transfer the Deferred Stock Units or any interest
in such Units except by will or the laws of descent and distribution. Any other attempt to dispose of your interest will be null and void.

11. **Restrictions on Payment of Shares.** Payment of Shares for your Deferred Stock
Units is subject to the conditions that, to the extent required at the time of settlement, (i) the Shares underlying the Deferred Stock
Units will be duly listed, upon official notice of redemption, upon the New York Stock Exchange, and (ii) a Registration Statement under
the Securities Act of 1933 with respect to the Shares will be effective. The Company will not be required to deliver any Common Stock
until all applicable federal and state laws and regulations have been complied with and all legal matters in connection with the issuance
and delivery of the Shares have been approved by counsel for the Company.

12. **Adjustments.** Any adjustments to the Deferred Stock Units will be governed
by Section 5.3 of the Stock Plan.

13. **Disposition of Securities.** By accepting the Deferred Stock Unit Award, you
acknowledge that you have read and understand the Company's policy, and are aware of and understand your obligations under applicable
securities laws in respect of trading in the Company's securities. The Company will have the right to recover, or receive reimbursement
for, any compensation or profit you realize on the disposition of Shares received for Deferred Stock Units to the extent that the Company
has a right of recovery or reimbursement under applicable securities laws.

14. **Plan Terms Govern.** The redemption of Deferred Stock Units, the disposition
of any Shares received for Deferred Stock Units, the treatment of gain on the disposition of these Shares, and the treatment of Dividend
Equivalents are subject to the provisions of the Stock Plan, the Deferred Compensation Plan and any rules that the Committee may prescribe.
The Stock Plan document, as may be amended from time to time, is incorporated into this Agreement. Capitalized terms used in this Agreement
have the meaning set forth in the Deferred Compensation Plan, unless otherwise stated in this Agreement. In the event of any conflict
between the terms of the Stock Plan or the Deferred Compensation Plan and the terms of this Agreement, the Stock Plan and the Deferred
Compensation Plan will control. In the event of any conflict between the terms of the Stock Plan and the terms of the Deferred Compensation
Plan, the Deferred Compensation Plan will control. By accepting the Award, you acknowledge that the Stock Plan and the Stock Plan prospectus
as well as the Deferred Compensation Plan, each as in effect on the date of this Agreement, have been made available to you for your review.

15. Personal Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. By entering into this Agreement, and as a condition of the
grant of the Deferred Stock Units, you acknowledge that your personal data is collected, used, and transferred in view of the performance
of this Agreement as described in this Section 15, which is to the full extent permitted by and in full compliance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. You understand that the Company holds, by means of an automated
data file, certain personal information about you, including, but not limited to, name, home address and telephone number, date of birth,
social insurance number, retainer payments, nationality, job title, any shares or directorships held, details of all Deferred Stock Units
or other entitlement to shares awarded, canceled, exercised, vested, unvested, or outstanding in your favor, for the purpose of managing
and administering the Stock Plan (" <u>Data</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. You understand that part or all of your Data may be also collected,
used, or held by the Company or its subsidiaries or affiliates (" <u>Affiliates</u> ") for the purposes of managing and administering
this award or any previous award/incentive plans. Specifically, your Data is transferred to, and/or collected, used, or held by the Executive
Compensation Department, the Company's senior executives (*e*. *g*., SVP-HR, CEO, Corporate Secretary's office),
the Committee, the Committee's compensation consultant, and Morgan Stanley. The Company stores your Data for this purpose for a
period of seven years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. You understand that the Company and its Affiliates will transfer
Data among themselves as necessary for the purposes of implementation, administration, and management of your participation in the Stock
Plan, and that the Company or its Affiliates may transfer data among themselves, and/or each, in turn, further transfer Data to any third
parties assisting the Company in the implementation, administration, and management of the Stock Plan (the " <u>Data Recipients</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. You understand that the Company or its Affiliates, as well
as the Data Recipients, are or may be located in your country of residence or elsewhere, such as the United States. You authorize the
Company or its Affiliates, as well as the Data Recipients, to receive, possess, use, retain, and transfer Data in electronic or other
form, for the purposes of implementing, administering, and managing your participation in the Stock Plan, including any transfer of such
Data, as may be required for the administration of the Stock Plan and/or the subsequent holding of Shares on your behalf, to a broker
or third party with whom the Shares may be deposited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. You understand that you may show your opposition to the processing
and transfer of your Data, and, may at any time, review the Data or request that any necessary amendments be made to it. To exercise
your data privacy rights, refer to the Company's Data Privacy Global Policy located at [provide link to policy / otherwise describe
how to find the policy].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. As soon as your Data is transferred to a third party Data
Recipient (*e*. *g*., Morgan Stanley or the Committee's compensation consultant), (i) the Data Recipient becomes
responsible for this Data (as a data controller), (ii) the Data will be subject to the Data Recipient's privacy statements
and notices, (iii) the Company and its Affiliates will no longer be responsible for the transferred Data, and (iv) you should
refer to the Data Recipient's statements and notices about its data protection policies and practices.

16. **Discretionary Nature and Acceptance of Award.** By accepting this Award, you
agree to be bound by the terms of this Agreement and acknowledge that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Company is granting your Deferred Stock Units, and this
Agreement is not derived from any preexisting labor relationship between you and the Company, but rather from a mercantile relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The Company may administer the Deferred Compensation Plan
and Stock Plan from outside your country of residence and United States law will govern all Deferred Stock Units granted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Benefits and rights provided under the Stock Plan do not constitute
regular or periodic payments.

17. **Limitations.** Payment of your Deferred Stock Units is not secured by a trust,
insurance contract or other funding medium, and you do not have any interest in any fund or specific asset of the Company by reason of
this Award or the account established on your behalf.

18. **Incorporation of Other Agreements.** This Agreement, the Stock Plan and the
Deferred Compensation Plan constitute the entire understanding between you and the Company regarding the Deferred Stock Units. This Agreement
supersedes any prior agreements, commitments or negotiations concerning the Deferred Stock Units.

19. **Severability.** The invalidity or unenforceability of any provision of this
Agreement will not affect the validity or enforceability of the other provisions of the Agreement, which will remain in full force and
effect. Moreover, if any provision is found to be excessively broad in duration, scope or covered activity, the provision will be construed
so as to be enforceable to the maximum extent compatible with applicable law.

20. **Governing Law.** The Deferred Compensation Plan, the Stock Plan, this Agreement,
and all determinations made and actions taken under the Deferred Compensation Plan and the Stock Plan or this Agreement shall be governed
by the internal substantive laws, and not the choice of law rules, of the State of Delaware and construed accordingly, to the extent not
superseded by applicable federal law.

21. **Agreement Changes.** The Company reserves the right to change the terms of this
Agreement, the Deferred Compensation Plan and the Stock Plan without your consent to the extent necessary or desirable to comply with
the requirements of Section 409A of the Code, the Treasury regulations and other guidance thereunder.

22. **Acknowledgements and Acceptance.** By accepting this Agreement, you agree to
the following: (i) you have carefully read, fully understand and agree to all of the terms and conditions described in this Agreement,
the Deferred Compensation Plan, the Stock Plan, the Stock Plan's prospectus and all accompanying documentation; and (ii) you understand
and agree that this Agreement and the Deferred Compensation Plan and the Stock Plan constitute the entire understanding between you and
the Company regarding the Deferred Stock Units, and that any prior agreements, commitments or negotiations concerning the Deferred Stock
Units are replaced and superseded.

---

| |
|:---|
| **I Accept:** |
| Print Name |
| Acceptance Date |

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## Exhibit 10.11

**Exhibit 10.11**

**ADI DEFERRED COMPENSATION PLAN**

**FOR NON-EMPLOYEE DIRECTORS**

**(EFFECTIVE [ ], 2026)**

**ARTICLE I — Purpose**

The purpose of the ADI Deferred Compensation Plan for Non-Employee Directors (the "Plan") is to provide non-employee directors on the Board of Directors of ADI Global Distribution Inc. with the opportunity to defer a portion of the compensation for Board service.

**ARTICLE II — Definitions**

2.1 "Account" means the separate bookkeeping account maintained on the books of the Company
for each Participant.

2.2 "Beneficiary" means the person or persons designated as such under Article VII of the Plan.

2.3 "Board" means the Board of Directors of the Company.

2.4 "Cash Sub-Account" means the portion of the Participant's Account, if any, that is deemed
invested in notional investments other than Company stock.

2.5 "Change in Control" means (a) any one person, or more than one person acting as a group (as
defined under U.S. Department of Treasury Regulations §1.409A-3(i)(5)(v)(B)) acquires ownership of stock of the Company that, together
with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the
stock of the Company; or (b) any one person, or more than one person acting as a group (as defined under Treasury Regulation § 1.409A-3(i)(5)(v)(B))
acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership
of stock of the Company possessing 30 percent or more of the total voting power of the stock of the Company; or (c) a majority of members
of the Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members
of the Board before the date of the appointment or election; or (d) any one person, or more than one person acting as a group (as defined
in Treasury Regulation § 1.409A-3(i)(5)(v)(B)) acquires (or has acquired during the 12-month period ending on the date of the most
recent acquisition by such person or persons) assets from the Company and its subsidiaries on a consolidated basis that have a total gross
fair market value equal to or more than 40 percent of the total gross fair market value of all of the assets of the Company and its subsidiaries
on a consolidated basis immediately before such acquisition or acquisitions. For purposes of clause (d), "gross fair market value"
means the value of the assets of the Company and its subsidiaries on a consolidated basis, or the value of the assets being disposed of,
determined without regard to any liabilities associated with such assets. The foregoing clauses (a) through (d) shall be interpreted in
a manner that is consistent with the Treasury Regulations promulgated pursuant to Section 409A of the Code so that all, and only, such
transactions or events that could qualify as a "change in control event" within the meaning of Treasury Regulation §
1.409A-3(i)(5)(i) shall be deemed to be a Change in Control for purposes of this Plan.

2.6 "Code" means the Internal Revenue Code of 1986, as amended from time to time.

2.7 "Committee" means the compensation committee of the Board or any successor committee or subcommittee
of the Board or other committee or subcommittee designated by the Board.

2.8 "Company" means ADI Global Distribution Inc., a Delaware corporation, and its successors.

2.9 "Deferred Stock Unit" means a deferred stock unit credited to a Participant's Equity
Sub-Account.

2.10 "Director" means any member of the Board who is not an employee of the Company or any of its
subsidiaries or affiliates.

2.11 "Effective Date" means [_______] , 2026.

2.12 "Equity Sub-Account" means the portion of the Participant's Account, if any, that is
allocated to Deferred Stock Units.

2.13 "Fair Market Value" means, as of any date, (i) the average (mean) of the highest and lowest
sales prices of a share of Stock, as reported on the New York Stock Exchange (or any other reporting system selected by the Committee,
in its sole discretion) on the date as of which the determination is being made or, if no sale of Stock is reported on this date, on the
most recent preceding day on which there were sales of Stock reported or (ii) in the event there shall be no public market for the Stock
on such date, the fair market value of the Stock as determined in good faith by the Committee.

2.14 "Participant" means a Director who makes a deferred election under Section 4.1 of the Plan
and has an Account under the Plan.

2.15 "Plan" means the ADI Deferred Compensation Plan for Non-Employee Directors.

2.16 "Retainer Fees" means the cash retainer fees and any cash committee fees or other ancillary
fees other than reimbursements paid to a Director.

2.17 "Separation from Service" means a "separation from service" from the Company,
within the meaning of Code Section 409A, as applicable to the Participant.

2.18 "Stock" means the common stock, par value $0.001 per share, of the Company.

2.19 "Stock Plan" means the 2026 Stock Incentive Plan of ADI Global Distribution Inc. and its Affiliates, as may be amended from time to time,
or any successor equity plan applicable to non-employee directors of the board adopted by the Company.

**ARTICLE III — Participation**

3.1 Each Director shall be eligible to become a Participant in accordance with the provisions of the Plan.

3.2 A Participant shall remain a Participant until he or she has received all payments to which he or she
is entitled under the terms of the Plan.

**ARTICLE IV — Deferral Elections**

4.1 Deferral Elections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Generally</u>. Prior to the first day
of each calendar year beginning on or after January 1, 2027, each Director may elect to defer payment of 100% of the Director's
Retainer Fees to be earned in such calendar year, that will be credited to the Participant's Account. The election may also designate
whether the Director's Retainer Fees will be deferred into the Cash Sub-Account or the Equity Sub-Account. If such a choice is provided
and a Director elects to defer his or her Director Retainer Fees into the Equity Sub-Account, the amount of such equity deferral shall
be capped at the maximum annual individual dollar limit set forth in the Stock Plan, if any, and any Director Retainer Fees in excess
of such cap automatically shall be deferred into the Cash Sub-Account. To be effective, such election must be completed and delivered
to the Company prior to the first day of the calendar year in which the services relating to the Retainer Fees are performed. Any election
made under this Section shall become irrevocable as of December 31 of the year prior to the year in which the services relating to the
Retainer Fees are performed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Effect of Elections</u>. Any election
made pursuant to this Article IV shall remain in effect for Retainer Fees earned and paid in the following year and for all subsequent
years, until the Director makes a new election during the annual election period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Initial Participant Elections</u>.
Notwithstanding the foregoing, when a Director first becomes eligible to participate in the Plan, the Director may file an initial election
to defer Retainer Fees at any time prior to the 30<sup>th</sup> day after such Director first becomes a Director. Such election shall
apply to Retainer Fees earned for services performed after the date such election is filed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Election Procedures</u>. An election
(or the modification or revocation of an election) must be made in such manner and in accordance with such rules (such as timing of election
period, method of electing, etc.) as may be prescribed for this purpose by the Company.

4.2 Vesting. The Participant's Account shall be 100% vested at all times.

4.3 4.3 Relation to Stock Plan. Deferred Stock Units granted or credited in accordance with this Plan shall be considered Restricted Stock
Units issued pursuant to Section 4.4(f) of the Stock Plan. The Deferred Stock Units subsequently credited in lieu of dividends relating
to Deferred Stock Units granted under this Plan also shall be considered Restricted Stock Units issued pursuant to the Stock Plan. The
Deferred Stock Units referred to in this paragraph, and Stock issued thereunder, will be subject to the terms and conditions of the Stock
Plan, as well as the provisions of this Plan. In the event of a conflict between the Stock Plan and this Plan, the terms of this Plan
will control. The Deferred Stock Units referred to in this paragraph, and Stock issued thereunder, will reduce the authorized share number
under Section 5.1(a) of the Stock Plan to the extent provided in the Stock Plan.

**ARTICLE V — Accounts**

5.1 Accounts Generally. An Account will be established for each Participant. Accounts are for bookkeeping
purposes only and the maintenance of Accounts will not require any segregation of assets by the Company. The Company will not have any
obligation whatsoever to set aside funds for the Plan or for the benefit of any Participant or Beneficiary, and no Participant or Beneficiary
will have any rights to any amounts that may be set aside other than the rights of an unsecured creditor of the Company.

5.2 Adjustments to Accounts. Accounts will be adjusted for deferrals of Retainer Fees, effective as of the
dates that the Retainer Fees earned by the Participant would otherwise have been payable to the Participant, in accordance with normal
Company procedures. Cash Sub-Accounts will be adjusted for any earnings under Section 5.3 at such times as provided by the Company.

5.3 Hypothetical Earnings on Accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Cash Sub-Account</u>. Any Cash Sub-Accounts
will be adjusted for earnings credits based on the measuring investment selected by the Company, in its sole discretion, for this purpose.
Amounts credited to a Cash Sub-Account will be treated as if they were invested in the selected measuring investment and shall be credited
with earnings based on the performance of such measuring investment. The measuring investment is solely a device for computing the amount
of benefits to be paid to the Participant under the Plan and Participants have no claim or right to any actual investment.

Until a new measuring investment is selected, the measuring investment for the Cash Sub-Accounts shall be the Fidelity U.S. Bond Index Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Equity Sub-Account</u>. Subject to Section 4.1(a), any Retainer Fees directed to the Equity Sub-Account
shall be credited to the Participant's Account as of the dates that the associated Retainer Fees earned by the Participant during
the applicable Plan Year would otherwise have been payable to the Participant. The number of Deferred Stock Units to be credited shall
be equal to the result of dividing the cash amount deferred as of each such date by the Fair Market Value of one share of Common Stock
on such date. Only full Deferred Stock Units shall be credited to a Participant's Equity Sub-Account. For the first three quarters
of the Plan Year, any Retainer Fees remaining due to a fractional Deferred Stock Unit shall carry forward to the next quarter and be added
to the deferred Retainer Fees directed to the Equity Sub-Account for such quarter. For the
final quarter of the Plan Year, any Retainer Fees remaining due to a fractional Deferred Stock Unit shall be forfeited. However, if the
Participant's equity deferral for the Plan Year was limited due to the maximum annual individual dollar limit set forth in the Stock
Plan, if any, any Director Retainer Fees in excess of such cap automatically shall be deferred into the Cash Sub-Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Cash Dividends</u>. Whenever any cash
dividends are declared on the Stock, the Company will credit the Equity Sub-Account of each Participant on the date such dividend is paid
with a number of additional Deferred Stock Units equal to the result of dividing (i) the product of (x) the total number of Deferred Stock
Units credited to the Participant's Sub-Account on the record date for such dividend and (y) the per share amount of such dividend
by (ii) the Fair Market Value of one share of Stock on the date such dividend is paid by the Company to the holders of Stock.

5.4 Statement of Account. Each Director will be provided access to review his or her Account balance through
electronic and such other means as determined by the Committee.

**ARTICLE VI — Distributions from Accounts**

6.1 Separation from Service. A Participant will receive payment of his or her Account in a lump sum payment
as of the first day of the seventh (7th) calendar month following the Participant's Separation from Service, subject to acceleration,
if applicable under Section 6.2 or Section 6.3.

6.2 Death of Participant. If a Participant dies before receiving payment of the full balance of the Participant's
Account, then the balance of the Participant's Account shall be paid in a lump sum payment to the Participant's Beneficiary.
The lump sum payment will be made as soon as practicable following the Company's receipt of notification of the Participant's
death. However, if the identity of the Beneficiary cannot be determined, or if the Beneficiary cannot be located, payment to the Beneficiary
may be delayed to the extent allowed under Code Section 409A and applicable guidance.

6.3 Change in Control. In the event of a Change in Control, each Participant will receive payment of his or
her full Account in a lump sum payment within sixty (60) days following the Change in Control event.

6.4 Medium of Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Cash Sub-Account</u>. A Participant's
Cash Sub-Account, if any, will be paid in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Equity Sub-Account</u>. A Participant's
Equity Sub-Account, if any, will be paid in shares of Stock equal to the number of Deferred Stock Units credited to the Participant's
Equity Sub-Account on the payment date, provided that any fractional Deferred Stock Unit shall be paid in cash based on the Fair Market
Value of one share of Stock on the payment processing date. Notwithstanding the foregoing, upon a Change in Control, the Equity Sub-Account,
if any, will be paid in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payments from Sub-Accounts</u>. For
administrative reasons, it is possible that payments from a Participant's Cash Sub-Account and Equity Sub-Account may be made separately,
but each such payment will be made within the applicable time frame stated above.

**ARTICLE VII — Beneficiary**

A Participant's Beneficiary shall be the beneficiary (or beneficiaries) named by the Participant on the Company's equity compensation administration system, as in place at the time of the Participant's death, or if no beneficiary has been named (or survives the Participant) the Participant's estate.

**ARTICLE VIII — Administration**

The Plan shall be administered by the Committee. The Committee shall, subject to the terms of this Plan, interpret this Plan and the application thereof as well as any agreement or instrument entered into hereunder; and establish, amend, waive and revoke rules and regulations as it deems necessary or desirable for the administration of the Plan. Further, the Committee shall have full power to make any other determination which may be necessary or advisable for the Plan's administration. All such interpretations, rules, regulations and conditions shall be final, binding and conclusive upon the Participants and all other persons having or claiming any right or interest in the Plan or the Deferred Stock Units.

For the avoidance of doubt, the ministerial functions of the Plan shall be handled by employees of the Company, in accordance with the rules and regulations established by the Committee.

No member of the Board or Committee, and no officer or employee of the Company to whom the Committee delegates any of its power and authority hereunder or who otherwise assists in the administration of the Plan, shall be liable for any act, omission, interpretation, construction or determination made in connection with this Plan in good faith, and the members of the Board and the Committee and such officers and employees shall be entitled to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including attorneys' fees) arising therefrom to the full extent permitted by law (except as otherwise may be provided in the Company's Certificate of Incorporation and/or By-laws) and under any directors' and officers' liability insurance that may be in effect from time to time.

**ARTICLE IX — Amendment and Termination**

The Board may amend or terminate the Plan at any time in whole or in part; provided, however, that no amendment or termination shall directly or indirectly reduce the balance of Participant's Account held hereunder as of the effective date of such amendment or termination. Notwithstanding the foregoing, the Plan may be amended at any time, without the consent of any Participant (or beneficiary) if necessary or desirable, as determined by the Corporation, to comply with the requirements, or avoid the application, of Code Section 409A.

A termination of the Plan will not be effective to cause a deferral election in place under the Plan for the applicable year to be modified or discontinued prior to the end of such year, if such modification or discontinuation would violate Code Section 409A. The Board may terminate the Plan and provide for the acceleration and liquidation of all benefits remaining due under the Plan pursuant to Treasury Regulations § 1.409A-3(j)(4)(ix). If such a termination and liquidation occurs, all deferrals and credits under the Plan will be discontinued as of the termination date established by the Board, and benefits remaining due will be paid in a lump-sum at the time specified by the Board as part of the action terminating the Plan and consistent with Treasury Regulations § 1.409A-3(j)(4)(ix).

The Board may terminate the Plan other than pursuant to Treasury Regulations § 1.409A-3(j)(4)(ix). In the event of such other termination, all deferral and credits under the Plan will be discontinued as of the end of the Plan Year, but all benefits remaining payable under the Plan will be paid at the same time and in the same form as if the termination had not occurred — that is, the termination will not result in any acceleration of any distribution under the Plan.

**ARTICLE X — Miscellaneous**

10.1 Unfunded Plan. The Plan at all times shall be entirely unfunded and no provision shall at any time be
made with respect to segregating any assets of the Company for payment of any benefits hereunder. No Participant, Beneficiary or any other
person shall have any interest in any particular assets of the Company by reason of the right to receive a benefit under the Plan and
any such Participant, Beneficiary or other person shall have only the rights of a general unsecured creditor of the Company with respect
to any rights under the Plan. All payments hereunder shall be made by the Company from its general assets at the time and in the manner
provided for in the Plan. Nothing contained in the Plan shall constitute a guaranty by the Company or any other person or entity that
the assets of the Company will be sufficient to pay any benefit hereunder.

10.2 Non-Alienation of Benefits. Neither a Participant nor any other person shall have any rights to sell,
assign, transfer, pledge, anticipate, or otherwise encumber the amounts, if any, payable under the Plan to the Participant or any other
person. Any attempted sale, assignment, transfer or pledge shall be null and void and without any legal effect. No part of the amounts
payable under the Plan shall be subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance
owed by a Participant or any other person, nor be transferable by operation of law in the event of a Participant's or any other
person's bankruptcy or insolvency.

10.3 Code Section 409A. This Plan is subject to Code Section 409A and is intended to be maintained in
 compliance with Code Section 409A and the regulations thereunder applicable to nonqualified deferred compensation plans. To the
 extent any provision of this Plan does not satisfy the requirements of Code Section 409A or any regulations or other guidance issued
 by the Treasury Department or the Internal Revenue Service under Code Section 409A, such provision will be applied in a manner
 consistent with such requirements, regulations or guidance, notwithstanding any provision of the Plan to the contrary, and to the
 extent not prohibited by Code Section 409A, the provisions of the Plan and the rights of Participants and Beneficiaries hereunder
 shall be deemed to have been modified accordingly. Each payment and benefit hereunder shall constitute a "separately
 identified" amount within the meaning of Treasury Regulation §1.409A-2(b)(2). The Committee, in its sole discretion shall
 determine the requirements of Code Section 409A that are applicable to the Plan and
shall interpret the terms of the Plan in a manner consistent therewith. Under no circumstances, however, shall the Company or any affiliate
or any of its or their employees, officers, directors, service providers or agents have any liability to any person for any taxes, penalties
or interest due on amounts paid or payable under the Plan, including any taxes, penalties or interest imposed under Code Section 409A.

10.4 Severability. If any term or provision of this Plan or the application thereof to any person or circumstances
shall, to any extent, be invalid or unenforceable, then the remainder of the Plan, or the application of such term or provision to persons
or circumstances other than those as to which it was held invalid or unenforceable, shall not be affected thereby, and each term and provision
hereof shall be valid and enforceable to the fullest extent permitted by applicable law.

10.5 Successors in Interest. The obligation of the Company under the Plan shall be binding upon any successor
or successors of the Company, whether by merger, consolidation, sale of assets or otherwise, and for this purpose reference herein to
the Company shall be deemed to include any such successor or successors.

10.6 Governing Law. The validity, construction, interpretation, administration and effect of the Plan and of
its rules and regulations, and rights relating to the Plan, shall be determined solely in accordance with the laws of the State of Delaware,
without regard to the conflicts of laws provisions thereof.

10.7 No Stockholder Rights. Neither the Participant or any other person shall have any rights as a stockholder
of the Company with respect to the Deferred Stock Units credited to the Participant's Account until the share of Stock are issued
to the Participant (or the Beneficiary of the Participant).

## Exhibit 10.12

**Exhibit 10.12**

**ADI EMPLOYEE STOCK<br> PURCHASE PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. ***Purpose of the Plan***. The purpose of this ADI Employee Stock Purchase Plan (the "Plan") is to provide the employees of ADI Global Distribution Inc. ("ADI") and its participating subsidiaries with a convenient means of purchasing shares of ADI common stock from time to time at a discount to market prices through the use of payroll deductions. ADI intends that the Plan shall qualify as an "employee stock purchase plan" under Code § 423. Accordingly, the Plan will be construed so as to extend and limit Plan participation in any Offering subject to Code § 423 in a uniform and nondiscriminatory basis consistent with the requirements of Code § 423.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ***Definitions***. The terms defined in this section are used (and capitalized) elsewhere in this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. "*ADI*" means ADI Global Distribution Inc., a Delaware corporation, or any successor corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. "*Affiliate*" means each domestic or foreign entity that is a "parent corporation" or "subsidiary corporation" of ADI, as defined in Code §§ 424(e) and 424(f) or any successor provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. "*Board*" means the Board of Directors of ADI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. "*Code*" means the Internal Revenue Code of 1986, as amended and in effect from time to time. For purposes of the Plan, references to sections of the Code shall be deemed to include any applicable regulations thereunder and any successor or similar statutory provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. "*Committee*" means the Compensation Committee of the Board (or such successor committee responsible for executive compensation matters).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. "*Common Stock*" means the common stock, par value $0.001 per share, of ADI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. "*Corporate Transaction*" means (i) a merger, consolidation or other reorganization of ADI with or into another corporation, or (ii) the sale of all or substantially all of the assets of ADI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. "*Designated Affiliate*" means any Affiliate which has been expressly designated by the Committee as a corporation whose Eligible Employees may participate in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9. "*Eligible Compensation*" shall be defined from time to time by the Committee in its sole discretion with respect to any Offering and Purchase Period. Except as otherwise defined by the Committee from time to time in its sole discretion, (i) Eligible Compensation means the cash compensation (including wages, salary, commissions, and overtime earnings) paid by ADI or any Designated Affiliate to a Participant in accordance with the Participant's terms of employment, (ii) Eligible Compensation includes contributions made by the Participant by payroll deduction to any qualified cash or deferred arrangement that forms part of a plan maintained by ADI or an Affiliate (while it is an Affiliate), or to a cafeteria plan maintained by ADI or an Affiliate (while it is an Affiliate), or under any qualified transportation fringe benefit plan, and (iii) Eligible Compensation shall not include any bonuses, employer contributions to a 401(k) or other retirement plan, amounts deferred to a non-qualified deferred compensation plan, any expense reimbursements or allowances, vacation pay in lieu of time off, coverage provided or amounts paid under any welfare benefit plan (unless provided above), amounts paid by an insurance company, amounts paid in a form other than cash and other fringe benefits, or any income (whether paid in Shares or cash) realized by the Participant as a result of participation in any equity-based compensation plan of ADI or an Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10. "*Eligible Employee*" means any employee of ADI or a Designated Affiliate, except for any employee who, immediately after a right to purchase is granted under the Plan, would be deemed, for purposes of Code § 423(b)(3), to own stock possessing 5% or more of the total combined voting power or value of all classes of stock of ADI or any Affiliate. Notwithstanding the foregoing, with respect to any Offering, the Committee may provide for the exclusion of certain employees within the limitations described in Treasury Regulations §1.423-2(e)(1), (2) and (3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11. "*Enrollment Period*" means the period of time prior to a Purchase Period during which Eligible Employees may elect to participate in the Plan as determined by the Committee for an Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12. "*Fair Market Value*" of a Share of Common Stock as of any date means the closing sale price for a Share on the principal securities market on which the Shares trade on the last preceding day on which any sale shall have been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13. "*Offering*" means the right provided to Participants to purchase Shares under the Plan with respect to a Purchase Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14. "*Offering Date*" means the first Trading Day of a Purchase Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15. "*Participant*" means an Eligible Employee who has elected to participate in the Plan in the manner set forth in Section 4 and whose participation has not ended pursuant to Section 8.1 or Section 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16. "*Plan*" means this ADI Employee Stock Purchase Plan, as it may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17. "*Purchase Date*" means the last Trading Day of a Purchase Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18. "*Purchase Period*" means a period of time during which offers to purchase Common Stock are outstanding under the Plan. The Committee shall determine the length of each Purchase Period, which need not be uniform; provided that no Purchase Period shall exceed twenty-seven (27) months in length. A Purchase Period shall commence on such date as may be established by the Committee. Unless the Committee determines otherwise, the Purchase Period will be a period of six months beginning either on (i) February 15 of each calendar year and ending on the next August 14, or (ii) August 15 of each calendar year and ending on the next February 14; provided, that prior to transitioning to the Purchase Period schedule set forth above, the Committee may establish an initial Purchase Period that is shorter than the Purchase Periods that apply thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19. "*Recordkeeping Account*" means the account maintained in the books and records of ADI (or its agent) recording the amount contributed to the Plan by each Participant through payroll deductions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20. "*Shares*" means shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21. "*Trading Day*" means a day on which the national stock exchanges in the United States are open for trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***Shares Available***. Subject to adjustment as provided in Section 14.1, the maximum number of Shares that may be sold by ADI to Eligible Employees under the Plan shall be [_____] Shares. If the purchases by all Participants in an Offering would otherwise cause the aggregate number of Shares to be sold under the Plan to exceed the number specified in this Section 3, ADI shall make to each Participant in that Offering a pro rata allocation in a uniform and nondiscriminatory manner of the remaining number of Shares which may be sold under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Eligibility and Participation***. To be eligible to participate in the Plan for a given Purchase Period, an employee must be an Eligible Employee on the first day of such Purchase Period. An Eligible Employee may elect to participate in the Plan by filing an election form with ADI (or its agent) before the Offering Date for a Purchase Period that authorizes regular payroll deductions from Eligible Compensation beginning with the first payday in such Purchase Period and continuing until the Plan is terminated or the Eligible Employee withdraws from the Plan, modifies his or her authorization, or ceases to be an Eligible Employee, as hereinafter provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. ***Amount of Common Stock Each Eligible Employee May Purchase***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. *Purchase Amounts and Limitations*. Subject to the provisions of this Plan, each Participant shall be offered the right to purchase on the Purchase Date the maximum number of whole Shares that can be purchased with the balance in the Participant's Recordkeeping Account at the per Share price specified in Section 5.2. Notwithstanding the foregoing, no Participant shall be entitled to:

&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;(a) the right to purchase Shares under this Plan and all other employee stock purchase plans (within the meaning of Code § 423(b)), if any, of ADI and its Affiliates that accrues at a rate which in the aggregate exceeds $25,000 of Fair Market Value (determined on the Offering Date of a Purchase Period when the right is granted) for each calendar year in which such right is outstanding at any time; or

&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;(b) purchase Shares in excess of 5,000 Shares per Offering (or such other maximum Share limit as established by the Committee in its sole discretion), with such limit subject to adjustment from time to time as provided in Section 14.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. *Purchase Price*. Unless a different purchase price is established by the Committee for an Offering prior to the commencement of the applicable Purchase Period, the purchase price of each Share sold pursuant to this Plan will be the lesser of (i) 90% of the Fair Market Value of such Share on the Offering Date of the applicable Purchase Period, or (ii) 90% of the Fair Market Value of such Share on the Purchase Date. In no event shall the purchase price be less than the lesser of (x) 85% of the Fair Market Value of such Share on the Offering Date of the applicable Purchase Period, or (y) 85% of the Fair Market Value of such Share on the Purchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ***Method of Participation***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. *Notice and Date of Grant*. ADI shall give notice to each Eligible Employee of the opportunity to purchase Shares pursuant to this Plan and the terms and conditions of such Offering. ADI contemplates that for tax purposes the Offering Date for a Purchase Period will be considered the date of the grant of the right to purchase such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. *Contribution Elections*. Each Eligible Employee who desires to participate in the Plan for a Purchase Period shall signify his or her election to do so by completing an election with ADI (or its agent) in a manner approved by the Committee. An Eligible Employee may elect to have any whole percent of Eligible Compensation (that is, 1%, 2%, 3%, etc.) withheld as a payroll deduction, but not exceeding 10% per pay period (or such other maximum percentage as the Committee may establish from time to time prior to the commencement of an Offering). An election to participate in the Plan and to authorize payroll deductions as described herein must be made prior to the Offering Date of a Purchase Period in accordance with the rules set by the Committee for the Purchase Period, and shall be effective beginning with the first payday in the Purchase Period immediately following the filing of such election. Any election submitted shall remain in effect until the Plan is terminated or such Participant withdraws from the Plan, modifies his or her authorization, or ceases to be an Eligible Employee, as hereinafter provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. *Additional Contributions*. If specifically provided by the Committee in connection with an Offering (including for purposes of complying with applicable local law), in addition to or instead of making contributions by payroll deductions, a Participant may make additional contributions to his or her Recordkeeping Account through the payment by cash or check prior to a Purchase Date. A Participant may make such additional contributions into his or her Recordkeeping Account only if the Participant has not already had the maximum permitted amount withheld during the Offering through payroll deductions, subject to the limitations set forth in Section 5.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. *Offering Terms and Conditions*. Each Offering shall consist of a single Purchase Period and shall be in such form and shall contain such terms and conditions as the Committee shall deem appropriate, consistent with the terms of the Plan. The Committee may provide for separate Offerings for different Designated Affiliates, and the terms and conditions of the separate Offerings, including the applicable Purchase Period, need not be consistent. Any Offering shall comply with the requirement of Code § 423 that all Participants shall have the same rights and privileges for such Offering. The terms and conditions of any Offering shall be incorporated by reference into the Plan and treated as part of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. ***Recordkeeping Accounts***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. *Crediting Payroll Deduction Contributions*. ADI (or its agent) shall maintain a Recordkeeping Account for each Participant. Payroll deductions pursuant to Section 6 will be credited to such Recordkeeping Accounts on or within a reasonable amount of time following each payday.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. *No Interest Payable*. No interest will be credited to a Participant's Recordkeeping Account (unless required under local law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. *No Segregation of Accounts*. The Recordkeeping Account is established solely for accounting purposes, and all amounts credited to the Recordkeeping Account will remain part of the general assets of ADI and need not be segregated from other corporate funds (unless required under local law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. *Additional Contributions*. A Participant may not make any separate cash payment into a Recordkeeping Account, except as may be permitted in accordance with Section 6.3, and any such additional contributions will be credited to the Recordkeeping Accounts within a reasonable amount of time following receipt by ADI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. ***Right to Adjust Participation; Withdrawals from Recordkeeping Account***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. *Withdrawal from Plan*. A Participant may at any time withdraw from the Plan by complying with the rules set by the Committee. If a Participant withdraws from the Plan, ADI will pay to the Participant in cash the entire balance in such Participant's Recordkeeping Account and no further deductions will be made from the Participant's Eligible Compensation during such Purchase Period. A Participant who withdraws from the Plan will not be eligible to reenter the Plan until the next succeeding Purchase Period, and any such reentry shall be through the enrollment process described in Section 6.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. *Adjusting Level of Participation*. A Participant may adjust his or her rate of payroll deduction contributions to the Plan as follows:

&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;(a) A Participant may, by written notice during an Enrollment Period, direct ADI to increase or decrease his or her rate of payroll deduction contributions, with such change to be effective as of the first day of the next Purchase Period.

&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;(b) A Participant may, by written notice that complies with the rules set by the Committee, direct ADI to decrease his or her rate of payroll deduction contributions during a Purchase Period to 0%, which shall be considered a suspension of contributions and shall become effective as soon as reasonably practicable. Any Participant who has decreased his or her rate of payroll deductions to 0% and does not increase such rate of payroll deductions from 0% to at least 1% in accordance with Section 8.2(a) during the next Enrollment Period will be withdrawn from the Plan effective as of the first day of that next Purchase Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. *Submission of Notices*. Notification of a Participant's election to withdraw from the Plan as provided in Section 8.1 or to change his or her rate of payroll deductions as provided in Section 8.2 shall be made by completing an updated election or notice with ADI (or its agent) in a manner approved by the Committee. The Committee may promulgate rules regarding the time and manner for submitting any such updated election or notice, which may include a requirement that the election or notice be on file for a reasonable period before it will be effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4. *Adjustments by ADI*. To the extent necessary to comply with Code § 423(b)(8) or Section 5.1, a Participant's payroll deduction contributions to the Plan may be decreased by ADI to 0% at any time during a Purchase Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. ***Termination of Employment***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. *Refund of Recordkeeping Account*. If the employment of a Participant is terminated for any reason, including death, disability, or retirement, the entire balance in the Participant's Recordkeeping Account will be refunded in cash to the Participant within 30 days after the date of termination of employment. For purposes of the Plan, a Participant will not be deemed to have terminated employment while the Participant is on sick leave, military leave or other leave of absence approved by the Company. Where the period of leave exceeds 90 days and the Participant's right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated on the ninety-first day of such leave. Unless determined otherwise by the Committee in a manner that is permitted by, and in compliance with Code § 423, a Participant whose employment transfers between entities through a termination with an immediate rehire (with no break in service) by ADI or a Designated Affiliate shall not be treated as a termination under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. *Designation of Beneficiary*. If permitted by the Committee, a Participant may file a beneficiary designation for who is to receive the Participant's Recordkeeping Account or Share subaccount, if any, following the death of a Participant. If no beneficiary is named, the beneficiary shall be the Participant's spouse, or if none, the Participant's estate. All beneficiary designations will be in such form and manner as the Committee may designate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. ***Purchase of Shares***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. *Number of Shares Purchased*. As of each Purchase Date, the balance in each Participant's Recordkeeping Account will be used to purchase the maximum number of whole Shares (subject to the limitations of Section 5.1) at the purchase price determined in accordance with Section 5.2, unless the Participant has filed an appropriate form with ADI in advance of that date to withdraw from the Plan in accordance with Section 8.1. Any amount remaining in a Participant's Recordkeeping Account that represents the purchase price for any fractional share will be carried over in the Participant's Recordkeeping Account to the next Purchase Period. Any amount remaining in a Participant's Recordkeeping Account that represents the purchase price for any whole Shares that could not be purchased by reason of the limitations of Section 5.1 or under the circumstances described in Section 3 will be refunded to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. *Conversion of Foreign Currency*. In circumstances where payroll deductions have been taken from a Participant's Eligible Compensation in a currency other than United States dollars, Shares shall be purchased by converting the balance in the Participant's Recordkeeping Account to United States dollars at the exchange rate in effect for payroll purposes for the month in which the Purchase Date occurs as determined by ADI's finance department or at such other exchange rate determined by the Committee or its delegate for this purpose, and such dollar amount shall be used to purchase Shares as of the Purchase 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;10.3. *Crediting of Shares*. Promptly after the end of each Purchase Period, the number of Shares purchased by all Participants as of the applicable Purchase Date shall be issued and delivered to an agent selected by ADI. Delivery of the shares to the agent shall be effected by an appropriate book-entry in the stock register maintained by ADI's transfer agent or delivery of a certificate. The agent will hold the Shares for the benefit of all Participants who have purchased Shares and will maintain a Share subaccount for each Participant reflecting the number of Shares credited to each Participant. Each Participant will be entitled to direct the voting by the agent of all Shares credited to such Participant's Share subaccount, and the agent may reinvest any dividends paid on Shares credited to a Participant's Share subaccount in additional Shares in accordance with such rules as the Committee may prescribe. Each Participant may also direct the agent to sell any or all of the Shares credited to the Participant's Share subaccount and distribute the net proceeds of such sale to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4. *Withdrawal of Shares From Share Subaccount*. Except for sales through the agent as provided in Section 10.3, a Participant may not withdraw Shares or otherwise transfer Shares from the Participant's Share subaccount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. ***Rights as a Shareholder***. A Participant shall not be entitled to any of the rights or privileges of a shareholder of ADI with respect to Shares offered for purchase under the Plan, including the right to vote or direct the voting or to receive any dividends that may be declared by ADI, until (i) the Participant actually has paid the purchase price for such Shares and (ii) such Shares have been issued and delivered, as provided in Section 10.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. ***Rights Not Transferable***. A Participant's rights under this Plan are exercisable only by the Participant during his or her lifetime, and may not be sold, pledged, assigned, transferred or disposed of in any manner other than by will or the laws of descent and distribution. Any attempt to sell, pledge, assign, transfer or dispose of the same shall be void and without effect. The amounts credited to a Recordkeeping Account may not be sold, pledged, assigned, transferred or disposed of in any way, and any attempted sale, pledge, assignment, transfer or other disposition of such amounts will be void and without effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ***Administration of the Plan***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. *Authority of the Committee*. This Plan shall be administered by the Committee. Subject to the express provisions of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the Committee by the Plan, the Committee shall have full power and authority to:

&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;(a) Determine when each Purchase Period under this Plan shall occur, and the terms and conditions of each related Offering (which need not be identical);

&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;(b) Designate from time to time which Affiliates of ADI shall be eligible to participate in the Plan;

&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;(c) Construe and interpret the Plan and establish, amend and revoke rules, regulations and procedures for the administration of the Plan. The Committee may, in the exercise of this power, correct any defect, omission or inconsistency in the Plan, in such manner and to the extent it may deem necessary, desirable or appropriate to make the Plan fully effective;

&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;(d) Exercise such powers and perform such acts as the Committee may deem necessary, desirable or appropriate to promote the best interests of ADI and its Designated Affiliates and to carry out the intent that the Offerings made under the Plan are treated as qualifying under Code § 423(b);

&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;(e) As more fully described in Section 18, to adopt such rules, procedures and sub-plans as may be necessary, desirable or appropriate to permit participation in the Plan by employees who are foreign nationals or employed outside the United States by a non-U.S. Designated Affiliate, and to achieve tax, securities law and other compliance objectives in particular locations outside the United States; and

&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;(f) Adopt and amend, as the Committee deems appropriate, a Plan rule specifying that Shares purchased by a Participant during a Purchase Period may not be sold by the Participant for a specified period of time after the Purchase Date on which the Shares were purchased by the Participant, and establish such procedures as the Committee may deem necessary to implement such rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. *Interpretations and Decisions by the Committee*. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all persons, including ADI, any Affiliate, any Participant and any Eligible Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3. *Delegation by the Committee*. Subject to the terms of the Plan and applicable law, the Committee may delegate ministerial duties associated with the administration of the Plan to such of ADI's officers, employees or agents as the Committee may determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4. *Indemnification*. No member of the Board or Committee shall be liable for any action taken or determination made in good faith with respect to the Plan. In addition to such other rights of indemnification as they may have as members of the Board or officers or employees of ADI or a Designated Affiliate, members of the Board and Committee and any officers or employees of the ADI or Designated Affiliate to whom authority to act for the Committee is delegated shall be indemnified by ADI from and against any and all liabilities, costs and expenses incurred by such persons as a result of any act or omission to act in connection with the performance of such person's duties, responsibilities and obligations under the Plan if such person has acted in good faith and in a manner that he or she reasonably believes to be in, or not opposed to, the best interests of ADI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. ***Changes in Capitalization and Corporate Transactions***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. *Adjustments*. In the event of any change in the Common Stock of ADI by reason of a stock dividend, stock split, reverse stock split, corporate separation, recapitalization, merger, consolidation, combination, exchange of shares and the like, the Committee shall make such equitable adjustments as it deems appropriate in the aggregate number and class of Shares or other securities available under this Plan, the Share limitation referred to in Section 5.1(b) of the Plan, and the number, class and purchase price of Shares or other securities subject to purchase under any pending Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. *Corporate Transactions*. In the event of a Corporate Transaction, each right to acquire Shares on any Purchase Date that is scheduled to occur after the date of the consummation of the Corporate Transaction may be continued or assumed or an equivalent right may be substituted by the surviving or successor corporation or a parent or subsidiary of such corporation. If such surviving or successor corporation or parent or subsidiary thereof refuses to continue, assume or substitute for such outstanding rights, then the Board may, in its discretion, either terminate the Plan or shorten the Purchase Period then in progress by setting a new Purchase Date for a specified date before the date of the consummation of the Corporate Transaction. Each Participant shall be notified in writing, prior to any new Purchase Date, that the Purchase Date for the existing Offering has been changed to the new Purchase Date and that the Participant's right to acquire Shares will be exercised automatically on the new Purchase Date unless prior to such date the Participant's employment has been terminated or the Participant has withdrawn from the Plan. In the event of a dissolution or liquidation of ADI, any Offering and Purchase Period then in progress will terminate immediately prior to the consummation of such action, unless otherwise provided by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. ***Amendment or Suspension of Plan***. The Committee, in its sole discretion, may at any time suspend this Plan or amend it in any respect, but no such amendment may, without shareholder approval, increase the number of shares reserved under this Plan, or effect any other change in the Plan that would require shareholder approval under applicable law or regulations or the rules of any securities exchange on which the Shares may then be listed, or to maintain compliance with Code § 423. No such amendment or suspension shall adversely affect the rights of Participants pursuant to Shares previously acquired under the Plan. During any suspension of the Plan, no new Offering or Purchase Period shall begin and no Eligible Employee shall be offered any new right to purchase Shares under the Plan or any opportunity to elect to participate in the Plan, and any existing payroll deduction authorizations shall be suspended, but any such right to purchase Shares previously granted for a Purchase Period that began prior to the Plan suspension shall remain subject to the other provisions of this Plan and the discretion of the Board and the Committee with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. ***Effective Date and Term of Plan***. The Plan will become effective on the date it is approved by the shareholders of ADI, which approval must be within 12 months of the date the Plan is adopted by the Board. The Plan and all rights of Participants hereunder shall terminate (i) at any time, at the discretion of the Committee, or (ii) upon the completion of any Offering under which the limitation on the total number of Shares to be issued during the entire term of the Plan, as determined in accordance with Section 3, has been reached. Except as otherwise determined by the Board, upon termination of this Plan, ADI shall pay to each Participant cash in an amount equal to the entire remaining balance in such Participant's Recordkeeping Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. ***Governmental Regulations and Listing***. All rights granted or to be granted to Eligible Employees under this Plan are expressly subject to all applicable laws and regulations and to the approval of all governmental authorities required in connection with the authorization, issuance, sale or transfer of the Shares reserved for this Plan, including, without limitation, there being a current registration statement of ADI under the Securities Act of 1933, as amended, covering the Shares purchasable on the Purchase Date applicable to such Shares. If applicable, all such rights hereunder are also similarly subject to effectiveness of an appropriate listing application to a national securities exchange covering the Shares issuable under the Plan upon official notice of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. ***Rules for Foreign Jurisdictions***. The Committee may adopt rules, procedures or subplans relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures. Without limiting the generality of the foregoing, the Committee is specifically authorized to adopt rules and procedures regarding handling of payroll deductions, payment of interest, conversion of local currency, payroll tax, the definition of Eligible Compensation, withholding procedures and handling of stock certificates that vary with local requirements.

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***19. Miscellaneous.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1. *Effect on Employment Status*. This Plan shall not be deemed to constitute a contract of employment between ADI or any Designated Affiliate and any Participant, nor shall it interfere with the right of ADI (or any Affiliate) to terminate the employment of any Participant and treat him or her without regard to the effect that such treatment might have upon him or her under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2. *Governing Law*. This Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3. *Electronic Documentation and Signatures*. Any reference in the Plan to election or enrollment forms, notices, authorizations or any other document to be provided in writing shall include the provision of any such form, notice, authorization or document by electronic means, including through ADI's intranet or with ADI's agent, and any reference in the Plan to the signing of any document shall include the authentication of any such document provided in electronic form, in each case in accordance with procedures established by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.4. *Book-Entry and Electronic Transfer of Shares*. Any reference in this Plan to the issuance or transfer of a stock certificate evidencing Shares shall be deemed to include, in the Committee's discretion, the issuance or transfer of such Shares in book-entry or electronic form. Uncertificated Shares shall be deemed delivered for all purposes of this Plan when ADI or its agent shall have provided to the recipient of the Shares a notice of issuance or transfer by electronic mail (with proof of receipt) or by United States mail, and have recorded the issuance or transfer in its records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.5. *Registration of Share Accounts and Certificates*. Any Share account contemplated by Section 10.3 and certificate to be issued to a Participant shall be registered in the name of the Participant, or jointly in the name of the Participant and another person, as the Participant may direct on an appropriate form filed with ADI or the agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.6. *Code § 409A*. The Plan is exempt from the application of Code § 409A and any ambiguities herein will be interpreted to so be exempt from Code § 409A. In furtherance of the foregoing and notwithstanding any provision in the Plan to the contrary, if the Committee determines that an option granted under the Plan may be subject to Code § 409A or that any provision in the Plan would cause an option under the Plan to be subject to Code § 409A, the Committee may amend the terms of the Plan and/or of an outstanding Offering under the Plan, or take such other action as the Committee determines is necessary or appropriate, in each case, without the Participant's consent, to exempt any outstanding option or future option that may be granted under the Plan from or to allow any such options to comply with Code § 409A, but only to the extent any such amendments or actions by the Committee would not violate Code § 409A. Notwithstanding the foregoing, ADI and the Committee shall have no liability to a Participant or any other party if the option to purchase Shares under the Plan that is intended to be exempt from or compliant with Code § 409A is not exempt or compliant or for any action taken by the Committee with respect thereto. ADI makes no representations that the option to purchase Shares under the Plan is compliant with Code § 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.7. *Severability*. If any provision of the Plan is or becomes or is deemed to be invalid, illegal, or unenforceable for any reason in any jurisdiction or as to any Participant, such invalidity, illegality or unenforceability shall not affect the remaining parts of the Plan and the Plan shall be construed and enforced as to such jurisdiction or Participant as if the invalid, illegal or unenforceable provision had not been included.

## Exhibit 10.13

**Exhibit 10.13**

**DATED 2026**

------------

**Share incentive plan trust deed**

**Contents**

1. Definitions 1

2. Declaration of Trust 3

3. Perpetuity Period 3

4. Additions to the Trust Fund 3

5. Trustee's general powers and duties relating
 to the Plan 3

6. Duties in relation to Partnership Share Money and Partnership
 Shares 5

7. Duties in relation to Free Shares, Matching Shares
 and Dividend Shares 6

8. Foreign cash dividends 7

9. Duties of Trustee when Participant leaves 7

10. Duties of Trustee after Plan Termination Notice 7

11. Duties in relation to tax liabilities 7

12. Duties of Trustee on a rights issue 8

13. Residual Shares and cash under the Plan 8

14. Waiver of dividends 8

15. Institutional limit on the number of Shares held by
 the Trust 9

16. Power to alter the Trust Period 9

17. Voting 9

18. Personal interests of Trustees 9

19. Protection of Trustee 10

20. Changes of Trustee 11

21. Information supplied by Constituent Companies 12

22. Power to amend 12

23. Costs 13

24. Receipts 13

25. Remuneration of Trustee 13

26. Governing Law 14

27. Jurisdiction 14

28. Change of governing law 14

29. Irrevocability 14

30. Assignment and other dealings 14

31. Notices 15

32. Power given to company is not a fiduciary power 15

33. Counterparts 15

i

This deed is dated 2026

**Parties**

**(1)** **ADI GLOBAL DISTRIBUTION INC.** a
 Delaware incorporated company whose principal executive offices are at [  ***US ADDRESS*** ] **(Company)** 

**(2)** **COMPUTERSHARE TRUSTEES LIMITED** incorporated and registered in England and Wales with company number 03661515 whose registered
 office is at The Pavilions, Bridgwater Road, Bristol, BS13 8AE **(Original Trustee)** 

**BACKGROUND**

(A) The
 Company has decided to establish a trust, to be constituted as an employees' share scheme
 under section 1166 of the Companies Act 2006, on the terms of this deed.

(B) The

 under the ADI UK Share Incentive Plan (**Plan**) and to comply with the requirements of
 Schedule 2 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003).

(C) The

 on the terms of this deed.

(D) The
 Company has paid £10 to the Original Trustee to be held on the trusts declared in this
 deed.

**Operative parts**

1. Definitions

The following definitions and rules of interpretations apply in this deed.

1.1 Definitions:

The following definitions and rules of interpretation apply in this deed.

**Foreign Cash Dividend**: a cash dividend paid in respect of Plan Shares of a company not resident in the United Kingdom.

**Property**: any property, including any chose in action and any interest in real or personal property.

**Trust**: the trust established by this deed (as amended) and known as the ADI UK SIP Trust.

**Trustee**: the Original Trustee, or other trustee(s) of the Trust for the time being.

**Trust Fund**: shall comprise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) the sum of £10 (referred to in Recital (D));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Property added to it at any time through
 accumulation of income, capital accretion, payment, transfer, gift, loan or otherwise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) all money, investments and other Property
 representing, or derived from, paragraphs a) and b).

**Trust Period**: the period beginning with the date of this deed and ending on the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) the end of the period set out in clause
 3; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) an order for the winding up of the Company
 being made or a resolution for the voluntary winding up of the Company being passed (other
 than for the purposes of, and followed by, an amalgamation or reconstruction in circumstances
 where substantially the whole of the undertaking, assets and liabilities of the Company pass
 to a successor company that becomes the Company for the purposes of this deed); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) the date the Trustee declares, by deed,
 to be the end of the Trust Period (not being earlier than the date of that deed).

1.2 Words and expressions not defined in this
 deed have the meaning given in the rules of the Plan.

1.3 Clause and paragraph headings shall not affect
 the interpretation of this deed.

1.4 A person includes a natural person, corporate
 or unincorporated body (whether or not having a separate legal personality).

1.5 A reference to a company shall include any
 company, corporation or other body corporate, wherever and however incorporated or established.

1.6 Unless the context otherwise requires, words
 in the singular shall include the plural and in the plural shall include the singular.

1.7 Unless the context otherwise requires, a reference
 to one gender shall include a reference to any other gender.

1.8 A reference to legislation or a legislative
 provision is a reference to it as amended, extended or re-enacted from time to time.

1.9 A reference to legislation or a legislative
 provision shall include all subordinate legislation made from time to time under that legislation
 or legislative provision.

1.10 A reference to writing or written includes
 email.

1.11 Any obligation on a party not to do something
 includes an obligation not to allow that thing to be done.

1.12 A reference to this deed or to any other
 agreement or document referred to in this deed is a reference to this deed or such other
 agreement or document as varied or novated (in each case, other than in breach of the provisions
 of this deed) from time to time.

1.13 References to clauses are to the clauses
 of this deed.

1.14 Any words following the terms including,
 include, in particular, for example or any similar expression shall be construed as illustrative
 and shall not limit the sense of the words preceding those terms.

2. Declaration of Trust

The Trustee shall hold the Trust Fund on the following trusts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Shares forming part of the Trust
 Fund which have not been acquired for or awarded to a Participant under the rules of the
 Plan shall be held on trust for the benefit of Eligible Employees and acquired for or awarded
 to Eligible Employees in accordance with this deed and the rules of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Plan Shares held in the Trust on
 behalf of a Participant shall be held on trust for that Participant in accordance with clause
 5 to clause 12 and the rules of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Partnership Share Money contributed
 by a signatory to a Partnership Share Agreement shall be held on trust for the relevant signatory
 and applied in the purchase of Partnership Shares or returned to the signatory in accordance
 with the rules of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any income from Plan Shares or Partnership
 Share Money shall be held on trust for the relevant Participant or signatory to a Partnership
 Share Agreement and applied in accordance with the rules of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any other assets, income from such
 assets or income from Shares which have not been acquired for or awarded to a Participant
 shall be held on trust for the benefit of Eligible Employees. Such assets or income may be
 applied to pay the Trustee's expenses in administering the Plan or, at the Company's
 direction, be applied in the purchase of Shares to be held on the trusts declared in clause
 2(a) or returned to Constituent Companies (or former Constituent Companies) in accordance
 with clause 13.

3. Perpetuity Period

The perpetuity period that applies to this Trust is the period beginning on the date this deed takes effect and ending on the day before the 125th anniversary of that date.

4. Additions to the Trust Fund

The Trustee may receive any gift or donation (whether of money or other Property) to be held as an addition to the Trust Fund at any time, from any person. Any additions to the Trust Fund shall be held by the Trustee on the trusts declared in this deed and such other terms (which do not conflict with the terms of this deed or the rules of the Plan) as the donor may specify.

5. Trustee's general powers and duties relating
 to the Plan

5.1 The Trustee shall join with the Company in
 establishing and operating the Plan.

5.2 For as long as the Trustee holds Shares subject
 to the rules of the Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Trust Fund shall only be applied,
 and the Trust shall only be used, for the purpose of giving effect to the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Trustee shall expend any contribution
 received from any Constituent Company for any one or more of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the acquisition of Shares for the purposes of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the payment of stamp duty or stamp duty
 reserve tax on the acquisition of Shares for the purposes of the Plan or when Shares are
 acquired for or awarded to Participants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the repayment of sums borrowed in connection
 with the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the payment of interest on sums borrowed
 in connection with the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) satisfying any obligations of the Trustee
 under the Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) paying expenses of the Trustee in connection
 with the Plan (including the fees of the Trustee, any administrator of the Plan and any professional
 adviser retained by the Trustee in relation to the operation of the Plan).

5.3 The Trustee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) hold and deal with all Plan Shares
 awarded to or acquired on behalf of any Participant only in accordance with the rules of
 the Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) dispose of a Participant's Plan Shares
 or otherwise deal with any of those Shares or any rights conferred on the Participant only
 in accordance with directions given by or on behalf of the Participant, including directions
 given (or deemed to be given) in accordance with Rule 21 of the Plan (Partnership Shares
 and Dividend Shares to be offered for sale on cessation of employment).

5.4 The Trustee's obligation in clause 5.3 is
 subject to clause 5.5.

5.5 If a liability to income tax or employee NICs
 arises in relation to a Participant's Plan Shares for which the Trustee is liable to account
 through PAYE, the Trustee may dispose of such number of that Participant's Plan Shares as
 will produce sufficient net sale proceeds to meet that liability to income tax and employee
 NICs.

5.6 If the Trustee receives any money or money's
 worth in respect of a Participant's Plan Shares, the Trustee shall pay such amount over to
 the Participant as soon as practicable, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it consists of New Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it is a dividend falling within paragraphs
 62 to 68 of Schedule 2; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the funds are required to meet the
 Participant's income tax or employee NICs obligations through PAYE.

5.7 The Trustee may from time to time appoint
 any person to act as administrator of the Plan, on such terms as the Trustee and the Company
 may agree. If an administrator of the Plan is appointed, the Trustee shall delegate to that
 person such of the Trustee's administrative powers and duties in relation to the operation
 of the Plan as are, in the opinion of the Trustee, necessary or appropriate to enable the
 administrator to procure the award of Shares to, and the acquisition of Shares on behalf
 of, Participants, and generally to administer the Plan.

5.8 If the Trustee delegates any administrative
 powers and duties in relation to the Plan to an administrator:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that delegation shall not divest the
 Trustee of any duty imposed on the Trustee under this deed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Trustee shall remain liable for
 the acts and defaults of the administrator so that section 23 of the Trustee Act 2000 shall
 not apply.

5.9 The Trustee may allow any Shares to be registered
 in the name of an appointed nominee provided that such Shares will be registered in a designated
 account. Such registration will not divest the Trustee of its responsibilities under this
 deed or Schedule 2.

5.10 The Trustee may from time to time seek and
 act upon the advice of any legal or other professional advisers in relation to the Trustee's
 or any administrator of the Plan's powers and duties under the Plan and this deed, and shall
 not be responsible for any loss occasioned by its so acting. The Company shall meet the expenses
 of such advice to the extent that the same are agreed in advance by the Trustee and the Company
 (such agreement not to be unreasonably withheld or delayed).

5.11 The Trustee shall provide to the Company
 and any Constituent Company (or former Constituent Company) all such information relating
 to the operation of the Plan as is, in the reasonable opinion of the Company, necessary to
 enable each company to fulfil its obligations to account for income tax and NICs through
 PAYE in relation to Plan Shares.

5.12 If the Company and the Trustee so agree from
 time to time, the Trustee shall provide the Company with information relating to the operation
 of the Plan and individual entitlements of Participants under the Plan.

5.13 The Trustee shall maintain records of Participants
 who, in the same Tax Year, have participated in one or more Schedule 2 SIPs established by
 the Company or a connected company (as defined in paragraph 18(3) of Schedule 2).

5.14 The Trustee shall have power to borrow money
 or otherwise receive credit from any person, corporation or company in order to acquire shares
 or for any other purposes of the Plan on such terms as the Trustee thinks fit, whether on
 the security of the Trust Fund (or any part of it), on personal security only or without
 security. The Trustee may provide for the repayment of borrowings or credit, or the payment
 of any associated costs, out of the Trust Fund.

6. Duties in relation to Partnership Share Money
 and Partnership Shares

6.1 If the Company instructs the Trustee to make
 an award of Partnership Shares, the Trustee shall comply with the Company's instructions.

6.2 The Trustee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept any Participant's Partnership
 Share Money and hold those funds upon trust for the benefit of the Participant, but shall
 not be obliged to deposit those funds in an interest-bearing account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) deal with each Participant's Partnership
 Share Money only in accordance with the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) apply each Participant's Partnership
 Share Money in acquiring Partnership Shares in accordance with the Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) hold each Participant's Partnership
 Shares upon trust for the benefit of the Participant and shall deal with those Shares and
 any rights attaching to those Shares in accordance with the Plan.

6.3 As soon as practicable after the Trustee has
 acquired any Partnership Shares on behalf of a Participant, the Trustee shall give the Participant
 notice of the acquisition, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number and description of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the amount of Partnership Share Money
 applied by the Trustee in acquiring the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Market Value of the Shares on the
 Acquisition Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Shares are subject to a Relevant
 Restriction, details of the Relevant Restriction; and

the amount of any surplus Partnership Share Money carried forward.

7. Duties in relation to Free Shares, Matching
 Shares and Dividend Shares

7.1 If the Company instructs the Trustee to make
 an award of Free Shares or Matching Shares, the Trustee shall acquire Shares and appropriate
 them to Employees in accordance with the Plan.

7.2 As soon as practicable after the Trustee has
 made an award of Free Shares or Matching Shares to a Participant, the Trustee shall give
 the Participant notice of the Acquisition, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number and description of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Market Value of the Shares on the
 Acquisition Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Shares are subject to a Relevant
 Restriction, details of the Relevant Restriction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Holding Period applicable to the
 Shares.

7.3 If the Company or a Participant instructs
 the Trustee to apply dividends paid on Plan Shares to purchase Dividend Shares, the Trustee
 shall comply with the Company or Participant's instructions.

7.4 As soon as reasonably practicable after the
 Trustee has acquired Dividend Shares on behalf of a Participant, the Trustee shall give the
 Participant notice of the Acquisition, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number and description of the Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Market Value of the Shares on the
 Acquisition Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Holding Period applicable to the
 Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the amount of any surplus dividend
 carried forward.

7.5 The Trustee shall not dispose of any Participant's
 Free Shares, Matching Shares or Dividend Shares (whether to the Participant or otherwise)
 at any time during the Holding Period relating to those Shares unless the Participant ceases
 to be employed by the Company or any Associated Company (and is not employed by any other
 company which is an Associated Company), but this shall not prevent the Trustee from disposing
 of any of a Participant's Plan Shares in accordance with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) clause 5.3; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) clause 9.

8. Foreign cash dividends

If the Trustee receives a Foreign Cash Dividend in respect of any of a Participant's Plan Shares, the Trustee shall notify the Participant of the amount of any foreign tax deducted from the dividend before it was paid.

9. Duties of Trustee when Participant leaves

If a Participant ceases to be employed by the Company or any Associated Company (without continuing to be employed by any other company which is an Associated Company), the Trustee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) transfer the Participant's Plan Shares
 to the Participant or to such other person as the Participant directs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) dispose of the Participant's Plan Shares
 and account for the proceeds to the Participant or to such other person as the Participant
 directs; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Participant does not give directions
 for the disposal or transfer of the Plan Shares within 28 days of so ceasing, the Trustee
 may transfer the Participant's Plan Shares to the Participant or dispose of them and account
 to the Participant for the proceeds, after income tax and NICs are deducted (if appropriate).

10. Duties of Trustee after Plan Termination Notice

After a Plan Termination Notice has been issued, the Trustee must comply with the requirements of paragraph 90(3) to (5) of Schedule 2 in relation to Participants' Plan Shares.

11. Duties in relation to tax liabilities

The Trustee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) maintain such records as are necessary
 to comply with any obligations of the Trustee or any Constituent Company (or former Constituent
 Company) to account for PAYE in relation to the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) inform a Participant who becomes liable
 to income tax or employee NICs in relation to any event in connection with the Plan under
 ITEPA 2003 or ITTOIA 2005 providing the Participant with any information relevant to determining
 the liability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) comply with the requirements of paragraph
 80(4) and 80(5) of Schedule 2 in relation to any distribution in connection with Plan Shares.

12. Duties of Trustee on a rights issue

12.1 If the Company makes an offer conferring
 any rights on its members to acquire (for payment) additional securities in the Company,
 the Trustee shall allocate such rights or securities amongst the Participants in direct proportion
 to the number of Plan Shares held by the Trustee on behalf of each Participant.

12.2 In allocating any such rights or securities,
 the Trustee shall comply with any direction from a Participant concerning the exercise or
 sale of any rights or securities attributable to the Participant's Plan Shares. However,
 the Trustee shall not be required to exercise any such rights unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Participant has paid the full amount
 payable (if any) on exercise; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Participant has authorised the
 Trustee to sell sufficient of the rights, nil paid, to pay the full amount to acquire the
 balance of such rights.

If no such direction is received at least seven Business Days before the last day on which such rights may be exercised, the Trustee shall take no action in relation to those rights.

13. Residual Shares and cash under the Plan

13.1 If any Shares (other than a Participant's
 Plan Shares) or cash remain in the Trust Fund after Shares have been awarded to Participants
 in accordance with the Plan on any occasion the Shares or cash shall, if the Company so directs,
 cease to be part of the Trust Fund.

13.2 If the Company makes a direction under clause
 13.1, the Trustee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) hold the Shares on trust and sell them
 in the market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) hold the cash on trust; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) pay or apply the net proceeds of sale
 of Shares and the cash to or for the benefit of the Company and any Constituent Companies
 (or former Constituent Companies) whose employees are Participants, in such proportions (having
 regard to their respective contributions to the Trust Fund) as the Company shall direct.

14. Waiver of dividends

Until the Company directs the Trustee otherwise, the Trustee shall waive its entitlement to dividends on any Shares held in the Trust Fund for which the Trustee holds the whole of the beneficial interest.

15. Institutional limit on the number of Shares
 held by the Trust

The Trustee shall not hold or acquire more than 10% of the shares of common stock in the Company in issue from time to time.

16. Power to alter the Trust Period

The Trustee may, with the written consent of the Company, specify by deed, a date to be the end of the Trust Period at any time during the Trust Period. The date specified:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) shall not be earlier than the date
 of that deed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) shall not be later than the date on
 which the perpetuity period for the Trust expires.

17. Voting

17.1 Unless the Company directs that the Trustee
 may vote on any particular occasion, the Trustee shall abstain from voting at any general
 meeting of the Company on any Shares held in the Trust Fund for which the Trustee holds the
 whole of the beneficial interest.

17.2 If the Company directs the Trustee to vote
 Shares for which the Trustee holds the whole of the beneficial interest, the Company cannot
 direct the manner in which the Trustee exercises its vote. The Trustee may, in its absolute
 discretion, vote (or abstain from voting) in the manner in which it thinks fit.

17.3 A Participant may direct the Trustees in
 writing to exercise any voting rights attaching to the Participant's Plan Shares in accordance
 with the Participant's wishes. The Trustees will not be entitled to vote on a show of hands
 in respect of Plan Shares unless all directions received from Participants in respect of
 the particular resolution are identical. The Trustees will not be under an obligation to
 call for a poll. If there is a poll, the Trustees must vote only in accordance with the directions
 of Participants. The Trustees must not exercise voting rights in respect of Plan Shares in
 the absence of directions. The Trustees may not vote in respect of Shares which have not
 been awarded under the Plan. Nothing in this clause or otherwise shall be deemed to oblige
 the Trustees to seek the directions of any Participant.

17.4 The Trustee shall not be entitled to vote
 on a show of hands on a particular resolution in respect of Plan Shares held on behalf of
 Participants unless all directions received from those Participants who have given directions
 in respect of that resolution are identical.

17.5 The Trustee shall not be under any obligation
 to call for a poll, but in the event of any poll the Trustee shall vote each Participant's
 Plan Shares in accordance with the Participant's directions.

18. Personal interests of Trustees

18.1 Subject to clause 18.2, no decision of, or
 exercise of a power by, the Trustee shall be invalidated or questioned because the Trustee
 (or any individual Trustee, or any director or other officers of a corporate Trustee) had
 a direct or personal interest in the result of any decision or in the exercising of any power.
 Any such person may vote on the decision or exercise of power, and be taken into account
 for the purposes of a quorum, despite having the interest.

18.2 The nature of the interest of the Trustee
 or any other person concerned for the purposes of clause 18.1 must (unless otherwise agreed)
 have been declared at the meeting of the Trustee (or, if there is a sole corporate Trustee,
 the meeting of the board of directors of the sole Trustee) at which the item of business
 to which the interest relates was discussed, if the interest:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) arises other than solely because the
 Trustee or other person concerned is an Eligible Employee or Participant, director or other
 officer or shareholder of any Constituent Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is material.

If the Trustee or other person concerned was not present at that meeting, the nature of that interest must have been declared at the next meeting of the Trustee (or next meeting of the board of directors of the sole corporate Trustee, as appropriate) at which that person was present.

18.3 A Trustee (or director or other officer of
 a corporate Trustee) who is or becomes an Eligible Employee or Participant may retain, and
 not be liable to account for, any benefits to which that person becomes entitled under this
 deed. The exercise of any power or discretion by such a person shall not be invalidated or
 questioned because that person had a direct or indirect interest in it.

18.4 A Trustee (or any director or other officer
 of a corporate Trustee) shall not be precluded from buying, holding or dealing with any debentures,
 debenture stock, shares or securities of any Constituent Company, or from entering into or
 being interested in any contract or other transaction with any Constituent Company. No Trustee
 (or any director or other officer of a corporate Trustee) shall be liable to account to any
 Constituent Company or any Eligible Employee or Participant for any profits made or benefits
 obtained in connection with the acquisition, contract or transaction.

18.5 Any Trustee (or any employee, director or
 officer of a corporate Trustee) may be employed and remunerated as a director or other officer,
 employee, agent or adviser of any corporation, body or firm connected with the Trust Fund.
 That person may keep any remuneration, fees or profits received in that capacity, even though
 the position may have been obtained, held or retained because of that person's status as
 a Trustee (or as an employee, director or officer of a corporate Trustee).

19. Protection of Trustee

19.1 The Company shall keep the Trustee and each
 director, officer or employee of any corporate trustee fully indemnified, both before as
 well as after any removal or retirement of a Trustee pursuant to clause 20, against any actions,
 claims, costs, demands, expenses and all other liabilities to which it is (or becomes liable)
 as Trustee because of any act, event or thing except where such actions, claims, costs, demands,
 expenses and other liabilities are attributable to fraud, misconduct or negligence by that
 person.

19.2 The Trustee shall have the benefit of all
 the powers, privileges and immunities conferred on trustees by statute or by law.

20. Changes of Trustee

20.1 The minimum number of persons to be the Trustee
 (or the trustee of any part of the Trust Fund for which a separate set of trustees has been
 appointed) shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) one (in the case of a corporate Trustee); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) two (in any other case).

20.2 A continuing Trustee shall not be entitled
 to exercise any discretion or power under this deed if the number of persons acting as the
 Trustee is below the minimum number.

20.3 Any Trustee may, at any time, by written
 notice given to the Company and any co-trustee, retire from office three months after the
 date the notice is received by the Company (or any shorter period agreed in writing by the
 Company). This power can only be exercised if there will be at least the minimum number of
 persons required by clause 20.1 to be the Trustee (whether by virtue of an appointment taking
 effect immediately on the retirement or otherwise) immediately after its exercise. If this
 will not be the case without the appointment of an additional Trustee, the Company shall,
 within the three months after the giving of such notice, appoint such additional Trustee(s)
 to rectify this. If the Company fails to do so within such three months period, the retiring
 Trustee may by deed appoint an additional Trustee(s) and its retirement shall thereupon become
 effective.

20.4 The Company shall have power by deed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to remove any Trustee from office by three months written
notice to that Trustee (unless waived by the Trustee) without giving any reason for the removal. This power can only be exercised if
there will be at least the minimum number of persons as Trustee required by clause 20.1 (whether by virtue of an appointment taking effect
immediately upon the removal or otherwise) immediately after its exercise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to appoint a person (or persons) in place of any Trustee
who ceases to be a Trustee for any reason, whether or not the number of persons acting as Trustee is below the minimum number required
by clause 20.1 before that appointment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to appoint an additional Trustee (without limitation as to
number).

20.5 If the number of persons acting as Trustee
 falls below the minimum number required by clause 20.1, the Company shall immediately appoint
 the number of new or additional trustees necessary to comply with clause 20.1.

20.6 While the Plan remains a Schedule 2 SIP,
 every Trustee shall be resident in the United Kingdom and the Company shall immediately remove
 as a Trustee any Trustee who ceases to be resident in the United Kingdom.

20.7 A retiring or removed Trustee shall execute
 all transfers or other documents and do all acts necessary to vest the Trust Fund in the
 new or continuing Trustees. A retiring or removed Trustee who is liable under this deed in
 any way shall not be bound to transfer the Trust Fund unless reasonable security is provided
 to indemnify that Trustee against the liability.

20.8 Unless there is a sole corporate Trustee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the trusts, powers and discretions vested in the Trustees
by this deed shall be exercised by all the Trustees (subject to clause 24.1); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a resolution in writing signed by each Trustee (whether on
the same document or in counterparts) shall be as valid as if it has been passed at a meeting of the Trustees, unless otherwise agreed
by the Trustees.

20.9 A Trustee may be discharged even though there
 is neither a trust corporation nor two persons to act as trustees, provided that there remains
 at least one Trustee. A Trustee may be appointed under section 36(1) of the Trustee Act 1925
 in place of more than one Trustee.

21. Information supplied by Constituent Companies

The Trustee shall be entitled to rely on any information or advice supplied to it by any Constituent Company without further enquiry, and the Trustee shall not be liable to any Participant or Constituent Company in consequence of the incompleteness or inaccuracy of any such information.

22. Power to amend

22.1 During the Trust Period, the Board shall,
 with the Trustee's prior written consent (such consent not to be unreasonably withheld
 or delayed), have power to amend, restrict, release or extend the trusts, powers and provisions
 of this deed in any manner by deed (subject to clause 22.2).

22.2 No exercise of the power contained in clause
 22.1 may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) extend the power conferred by clause 22.1 or remove the restrictions
contained in this clause 22.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) alter or affect the rights of any person accrued before the
date of the amendment (except with that person's prior consent in writing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) invalidate any previous payment or application of the Trust
Fund or affect any part of the Trust Fund to which any person has previously become absolutely entitled.

22.3 While the Plan remains a Schedule 2 SIP,
 no amendment shall be made to a Key Feature of the Trust if, as a result of the amendment,
 the Plan would no longer be a Schedule 2 SIP.

22.4 Every power, authority or discretion conferred
 on the Trustee (or any other person) and not expressly made exercisable only during a period
 allowed by law shall (despite anything else in this deed) only be exercisable during the
 Trust Period and during any further period (whether definite or indefinite) that the law
 allows in respect of the particular power, authority or discretion.

23. Costs

All costs, charges and expenses of, and incidental to, the preparation, operation and determination of the Trust or the management of the Trust Fund (including remuneration of the Trustee and any stamp duty and stamp duty reserve tax payable) shall be payable by the Constituent Companies in such proportions as the Company shall determine.

24. Receipts

24.1 From time to time, the Trustee may authorise
 any one or more of its number (or such other person(s) as it thinks fit) in writing to make
 any payments or transfers of Property, and to give receipts and discharges for any Property
 payable, transferable or deliverable to the Trustee. Each receipt or discharge shall be as
 valid as if it were given by the Trustee.

24.2 The production of the Trustee's written authority
 given under clause 24.1 shall be sufficient protection to any person taking any receipt or
 discharge mentioned in clause 24.1. A person who has not received express notice in writing
 of the revocation of the authority may assume and act on the assumption that the authority
 remains unrevoked.

24.3 The receipt of such person as a Trustee reasonably
 believes to be the treasurer or other proper officer of any such charity shall be of sufficient
 discharge to the Trustee for any Property so paid or transferred, and the Trustee shall not
 be obliged to see to the application of such Property.

25. Remuneration of Trustee

25.1 Any corporate Trustee shall act in accordance
 with the terms and conditions it has agreed with the Company. In the absence of any such
 agreement, the Trustee shall notify the Company of its published standard terms and conditions
 in force for the time being and that the Trustee shall be entitled to receive remuneration
 in accordance with those terms and conditions.

25.2 Any individual Trustee, who is a person engaged
 in any profession or business (but not an Employee or former Employee), shall be entitled
 to be paid all usual professional or proper charges for the business transacted, time expended
 and acts done by that person (or that person's firm) in connection with the Trust. This includes
 acts that a Trustee, who was not in any profession or business, could have done personally.

25.3 Any corporate Trustee may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) transact, in its own office, on behalf of the Trust or any
Eligible Employee or Participant, any business which it is authorised to undertake in its constitution and in which it is then ordinarily
engaged, on the same terms as would be made with an ordinary customer. If the Trustee is a bank, it shall be entitled to act as a banker
to, and make advances to, the Trustee in connection with the Trust, without accounting for any profit made by so acting and in all respects
as if it were not a Trustee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) employ as a banker, an investment adviser or other agent,
on behalf of the Trust, any corporation, firm or enterprise associated with it. However, this agent must be authorised to undertake the
business for which it is employed and ordinarily be engaged in that business. All the charges made for work done or services provided
in connection with the Trust must be reasonable and normal.

25.4 Any Trustee (or company associated with a
 Trustee) who carries on the business of the provision of accounting, auditing, banking, custodian
 fiscal insurance, legal or other professional financial services of any kind may provide
 those services for the Trust on the same terms as those made with an ordinary customer, and
 without accounting for any profit made.

26. Governing Law

This deed and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the law of England and Wales.

27. Jurisdiction

27.1 Each party irrevocably agrees that the courts
 of England and Wales shall have exclusive jurisdiction to settle any dispute or claim arising
 out of or in connection with this deed or its subject matter or formation (including non-contractual
 disputes or claims).

27.2 Each party irrevocably consents to any process
 in any legal action or proceedings under clause 27.1 being served on it in accordance with
 the provisions of this deed relating to service of notices. Nothing contained in this deed
 shall affect the right to serve process in any other manner permitted by law.

28. Change of governing law

The Company may, at any time during the Trust Period, with the Trustee's prior written consent (such consent not to be unreasonably withheld or delayed) declare by deed that the trust powers and provisions of this deed shall take effect in accordance with the law of the territory specified in the deed (with the necessary modifications specified in that deed) from the date of the declaration. From the date of that declaration, the law of that other territory shall apply to this deed and the courts in that other territory shall administer the Trust, subject to the powers conferred by this clause 28 and until further declaration is made under this deed. This power shall not be exercisable in any way which might cause this deed to become illegal, void or voidable under the law applicable to it, or which might change the beneficial interests under it in any way.

29. Irrevocability

The trusts declared in this deed are irrevocable.

30. Assignment and other dealings

This deed is personal to the parties and neither party shall assign, transfer, mortgage, charge, subcontract, declare a trust over or deal in any other manner with any of its rights and obligations under this deed.

31. Notices

31.1 Any notice or other communication given under
 or in connection with this deed shall be in writing and shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) delivered by hand or by pre-paid first-class post or other
next working day delivery service at the **Appropriate Address**. For the purposes of this clause 31.1, the Appropriate Address means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of the Company, its registered office, provided
the notice is marked for the attention of the General Counsel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of the Trustee, its registered
 office, provided the notice is marked for the attention of the Company Secretary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) sent by email to the **Appropriate Email**. For the purposes
of this clause 31.1, Appropriate Email Address means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of the Company, [  ***EMAIL ADDRESS*** ]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of the Trustee, [  ***EMAIL ADDRESS*** ], or such other address as is notified by the Trustee to the Company to be
 used for this purpose;.

31.2 Any notice or other communication given under
 this clause 31 shall be deemed to have been received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if delivered by hand, on signature
 of a delivery receipt, or at the time the notice is left at the proper address;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if sent by pre-paid first-class post
 or other next working day delivery service, at 9.00am on the second Business Day after posting,
 or at the time recorded by the delivery service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if sent by email, at 9.00am on the
 next Business Day after sending.

32. Power given to company is not a fiduciary
 power

Each power and discretion given to the Company in this deed (whether alone or jointly with any other person) is given to it for its own benefit and not in a fiduciary capacity. The Company may exercise, or refrain from exercising, its powers under this deed at its discretion.

33. Counterparts

33.1 This deed may be executed in any number of
 counterparts, each of which when executed and delivered shall constitute a duplicate original,
 but all the counterparts shall together constitute the one deed.

33.2 Transmission of an executed counterpart of
 this deed (but for the avoidance of doubt not just a signature page) by email (in PDF, JPEG
 or other agreed format) shall take effect as delivery of an executed counterpart of this
 deed. If either method of delivery is adopted, without prejudice to the validity of the agreement
 thus made, each party shall provide the others with the original of such counterpart as soon
 as reasonably possible thereafter.

33.3 No counterpart shall be effective until each
 party has executed and delivered at least one counterpart.

This document has been executed as a deed and is delivered and takes effect on the date stated at the beginning of it.

---

| | |
|:---|:---|
| Executed as deed by **ADI GLOBAL DISTRIBUTION INC.** acting by [***NAME***] who, in accordance with the laws of that company's state of incorporation, is duly authorised to execute this document as a deed | |
| Executed as deed by **ADI GLOBAL DISTRIBUTION INC.** acting by [***NAME***] who, in accordance with the laws of that company's state of incorporation, is duly authorised to execute this document as a deed | SIGNATURE |
| Executed as deed by **COMPUTERSHARE TRUSTEES LIMITED** acting by [***NAME OF DIRECTOR***] a director, and [***NAME OF DIRECTOR/COMPANY SECRETARY***] a director/company secretary : | |
| Executed as deed by **COMPUTERSHARE TRUSTEES LIMITED** acting by [***NAME OF DIRECTOR***] a director, and [***NAME OF DIRECTOR/COMPANY SECRETARY***] a director/company secretary : | SIGNATURE OF DIRECTOR |
| Executed as deed by **COMPUTERSHARE TRUSTEES LIMITED** acting by [***NAME OF DIRECTOR***] a director, and [***NAME OF DIRECTOR/COMPANY SECRETARY***] a director/company secretary : | Director |
| Executed as deed by **COMPUTERSHARE TRUSTEES LIMITED** acting by [***NAME OF DIRECTOR***] a director, and [***NAME OF DIRECTOR/COMPANY SECRETARY***] a director/company secretary : |  |
| Executed as deed by **COMPUTERSHARE TRUSTEES LIMITED** acting by [***NAME OF DIRECTOR***] a director, and [***NAME OF DIRECTOR/COMPANY SECRETARY***] a director/company secretary : | |
| Executed as deed by **COMPUTERSHARE TRUSTEES LIMITED** acting by [***NAME OF DIRECTOR***] a director, and [***NAME OF DIRECTOR/COMPANY SECRETARY***] a director/company secretary : | SIGNATURE OF DIRECTOR/COMPANY SECRETARY |
| Executed as deed by **COMPUTERSHARE TRUSTEES LIMITED** acting by [***NAME OF DIRECTOR***] a director, and [***NAME OF DIRECTOR/COMPANY SECRETARY***] a director/company secretary : | Director/Company Secretary |

---

**DATED 2026**

**ADI UK DISTRIBUTION INC.**

**SHARE INCENTIVE PLAN**

**CONTENTS**

---

| | | |
|:---|:---|:---|
| **CLAUSE** | **CLAUSE** |  |
| 1 | Interpretation | 1 |
| 2 | Period of operation | 7 |
| 3 | Issue of invitations and Award of Shares | 7 |
| 4 | Compensation Committee to decide whether Partnership, Free or Matching Shares will be awarded | 7 |
| 5 | Eligibility to participate in the Plan | 7 |
| 6 | Continuous Service | 7 |
| 7 | Participation on the same terms | 8 |
| 8 | Overall limit on Awards | 8 |
| 9 | Tax Liabilities | 8 |
| 10 | Relationship with employment contracts | 8 |
| 11 | Notices | 9 |
| 12 | Termination of the Plan | 10 |
| 13 | Administration and amendment | 10 |
| 14 | Governing law | 10 |
| 15 | Jurisdiction | 11 |
| 16 | Third party rights | 11 |
| 17 | Data protection | 11 |
| 18 | Stamp duty and stamp duty reserve tax | 11 |
| 19 | Holding periods for Free Shares, Matching Shares and Dividend Shares | 12 |
| 20 | Forfeiture of Free Shares and Matching Shares | 13 |
| 21 | Partnership Shares and Dividend Shares to be offered for sale on cessation of employment | 14 |
| 22 | Withdrawal of Shares from the Plan | 14 |
| 23 | Plan Shares ceasing to be subject to the Plan | 14 |
| 24 | Free Share Awards | 15 |
| 25 | Contracts of Participation | 15 |
| 26 | Maximum annual value of Free Share Awards | 15 |
| 27 | Free Share Award levels set by remuneration, service or hours worked | 16 |
| 28 | Free Share Award levels set by reference to performance targets | 16 |

---

i

---

| | | |
|:---|:---|:---|
| 29.0 | Partnership Share Awards | 17.0 |
| 30.0 | Partnership Share Agreements | 18.0 |
| 31.0 | Accumulation Periods | 18.0 |
| 32.0 | Limitations on the maximum amount of Partnership Share Money | 18.0 |
| 33.0 | Deductions from Salary | 19.0 |
| 34.0 | Minimum deduction of Partnership Share Money | 19.0 |
| 35.0 | Holding and application of Partnership Share Money | 19.0 |
| 36.0 | Restriction on maximum number of Partnership Shares | 20.0 |
| 37.0 | Scaling down the number of Partnership Shares received by each Participant | 20.0 |
| 38.0 | Acquisition of Partnership Shares | 20.0 |
| 39.0 | Surplus Partnership Share Money | 20.0 |
| 40.0 | Withdrawal from Partnership Share Agreement | 21.0 |
| 41.0 | Stopping and restarting deductions of Partnership Share Money | 21.0 |
| 42.0 | Repayment of Partnership Share Money if Plan terminated or no longer tax-advantaged | 21.0 |
| 43.0 | Withdrawal of Partnership Shares from the Plan | 21.0 |
| 44.0 | Matching Share Awards | 21.0 |
| 45.0 | Matching Shares | 22.0 |
| 46.0 | Determining the number of Matching Shares to be awarded | 22.0 |
| 47.0 | Instructions to acquire Dividend Shares | 22.0 |
| 48.0 | Dividend Shares | 23.0 |
| 49.0 | Acquisition of Dividend Shares | 23.0 |
| 50.0 | Dividend amounts carried forward | 23.0 |
| 51.0 | Rights issues and capitalisation issues | 24.0 |
| 52.0 | Reconstruction and waiver | 24.0 |
| 53.0 | Scrip dividends | 24.0 |
| 54.0 | Fractional entitlements | 25.0 |
| 55.0 | Information | 25.0 |
| 56.0 | Disputes | 25.0 |

---

ii

Rules of the ADI Global Distribution Inc Share Incentive Plan

Approved by the shareholders of the Company on [ ] 2026

Established by resolution of the sole director of the Company on [ ] 2026.

Registered with HM Revenue & Customs on [ ] under number [ ].

1 Interpretation

The following definitions and rules of interpretation apply in the Plan.

1.1 Definitio ns:

**Accumulation Period**: has the meaning given in paragraph 51 of Schedule 2.

**Acquisition**: in relation to Partnership Shares or Dividend Shares, the acquisition of Shares by the Trustee on behalf on a Participant in accordance with Part 6 or Part 8 of Schedule 2, including the appropriation by the Trustee of Shares already in the SIP Trust. The term acquired shall be construed accordingly.

**Acquisition Date**: the date of an Acquisition, which shall be specified by the Trustee and be within the applicable time limits set out in paragraph 50(4), 52(5) or 66(4) of Schedule 2.

**Adoption Date**: [DATE], the date of the adoption of this Plan by the Company.

**Appropriation Date:** means any day on which Free Shares or Matching Shares are appropriated to an Eligible Employee by the Trustees under the Plan.

**Associated Company**: has the meaning given in paragraph 94 of Schedule 2.

**Award**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) an appropriation of Free Shares or
 Matching Shares to Participants by the Trustee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) an Acquisition of Partnership Shares
 or Dividend Shares.

**Award Date**: the date of an Award of Free Shares or Matching Shares.

**Business Day**: a day other than a Saturday, Sunday or public holiday in England when banks in London are open for business.

**Company**: **ADI GLOBAL DISTRIBUTION INC,** a Delaware incorporated company.

**Company Reconstruction**: has the meaning given in paragraph 86 of Schedule 2.

**Compensation Committee**: the compensation committee of the Company's board of directors or an officer or sub-committee appointed by that committee to carry out any of its functions under the Plan.

**Continuous Service**: for the purpose of assessing whether an individual qualifies as an Eligible Employee for a particular Award, the period during which that individual has been (without interruption) an employee of any Qualifying Company (or of several Qualifying Companies in succession) and ending on the Qualifying Date for that Award.

**Contract of Participation**: an agreement entered into under rule 25.

**Control**: has the meaning given in section 719 of ITEPA 2003.

**CTA 2010**: the Corporation Tax Act 2010.

**Dealing Day**: a day on which an investment exchange on which Shares are listed or traded is open for the transaction of business.

**Dilutive Shares**: on any date, all Shares that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) have been issued or transferred out of
 treasury on the exercise of options or to satisfy awards under any Share Incentive Scheme
 (including the Plan) during:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the ten years ending on (and including)
 that date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if shorter than ten years, the period
 since Shares of the Company were first admitted to trading on the New York Stock Exchange;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) can still be issued, or transferred out
 of treasury, under any Existing Awards.

**Dividend Shares**: Shares acquired for Participants under rule 47 to rule 50 using cash dividends arising from those Participants' Plan Shares that remain subject to the Plan.

**Eligible Company**: any company of which the Company has Control, including any jointly owned company (as defined in paragraph 91 of Schedule 2) that is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) treated as being under the Company's
 Control under paragraph 91 of Schedule 2; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) not excluded from being a Participating
 Company under paragraph 91(4) of Schedule 2.

**Eligible Employee**: an individual that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) is an employee of a Participating Company
 on the Qualifying Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) if a qualifying period of Continuous
 Service is specified by the Compensation Committee in accordance with rule 6 has been an
 employee of a Qualifying Company, at all times during that period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) is a UK resident taxpayer as defined
 in paragraph 8(2) of Schedule 2; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) is not participating at the same time
 in a SIP established by a connected company as defined in paragraph 18(3) of Schedule 2.

**Existing Award**: any right (or any entitlement or expectation that is less than a right) granted under any Share Incentive Scheme and under which Shares (or other shares in the Company) may be (or may come to be) acquired or received.

**Forfeit**: beneficial ownership of Free Shares or Matching Shares automatically transfers from the Participant to the Trustee for no consideration.

**Forfeiture Period**: a period of three years from the relevant Award Date, or such other period as the Compensation Committee may specify when an Award is made, during which forfeiture provisions specified by the Compensation Committee under rule 20 may apply to an Award of Free Shares or Matching Shares.

**Free Shares**: Shares which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) have been appropriated to Participants
 without payment under rule 25 to rule 28 and which, if relevant, shall include any New Shares
 held for them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) remain subject to the Plan.

**HMRC**: HM Revenue & Customs.

**Holding Period**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) in relation to an Award of Free Shares
 or Matching Shares, a period of between three and five years, beginning with the Award Date,
 which is specified by the Compensation Committee under rule19.1; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) in relation to any Dividend Shares,
 a period of three years beginning with the Acquisition Date.

**ITEPA 2003**: the Income Tax (Earnings and Pensions) Act 2003.

**ITTOIA 2005**: the Income Tax (Trading and Other Income) Act 2005.

**Key Feature**: has the meaning given in paragraph 81B(8) of Schedule 2.

**Market Value**: means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) if and for so long as the Shares are admitted
 to trading on the New York Stock Exchange:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) in relation to Free Shares, Matching Shares,
 Partnership Shares with no Accumulation Period and Dividend Shares which are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) acquired wholly or partly by the Trustees
 by subscription, the middle market quotation of a Share of the same class on the New York
 Stock Exchange on the Dealing Day before the Appropriation Date or the Acquisition Date as
 determined by the Trustees converted into Pounds Sterling; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) acquired by the Trustees by purchase,
 the average purchase price per Share paid by the Trustees (excluding the costs of purchase
 and stamp duties) to purchase Shares on the Appropriation Date or the Acquisition Date converted
 into Pounds Sterling except that if the Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) are not all acquired on the relevant
 Appropriation Date or Acquisition Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) are acquired otherwise than by means
 of a purchase of Shares on a regulated market,

the average purchase price per Share will be the middle market quotation of a Share of the same class on the New York Stock Exchange on the Dealing Day immediately before the relevant Appropriation Date or Acquisition Date as determined by the Trustees converted into Pounds Sterling; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) acquired by the Trustees by subscription
 and/or by purchase, the value per Share calculated on the other basis agreed by the Trustees
 and HMRC in accordance with paragraph 92 of Schedule 2 (**Determination of market value**)
 converted into Pounds Sterling;

ii) in relation to Partnership Shares with an Accumulation Period, the market value specified in the relevant Partnership Share Agreement for that Accumulation Period as required by paragraph 52 of Schedule 2 which must be one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the lower of the market value of a Share:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at the beginning of the Accumulation
 Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) on the Acquisition Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the market value of a Share at the beginning
 of the Accumulation Period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the market value of a Share on the Acquisition
 Date. Market value for these purposes means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on any day the middle market quotation
 of a Share of the same class on the New York Stock Exchange on the Dealing Day before that
 day as determined by the Trustees converted into Pounds Sterling; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the value per Share calculated on any
 other basis agreed between the Trustees and HMRC in accordance with paragraph 92 of Schedule
 2 (**Determination of market value**) before the beginning of the Accumulation Period
 converted into Pounds Sterling; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) if the Shares are not admitted to trading
 on the New York Stock Exchange:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) in relation to Free Shares, Matching Shares,
 Partnership Shares with no Accumulation Period and Dividend Shares, on any day the market
 value of a Share determined in accordance with the provisions of Part VIII of the Taxation
 of Chargeable Gains Act 1992, converted into Pounds Sterling and agreed for the purposes
 of the Plan with HMRC Shares and Assets Valuation on or before that day; and

ii) in relation to Partnership Shares with an Accumulation Period, the market value specified in the relevant Partnership Share Agreement for that Accumulation Period as required by paragraph 52 of Schedule 2 which must be one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the lower of the market value of
 a share:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at the beginning of the Accumulation
 Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) on the Acquisition Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the market value of a Share at the beginning
 of the Accumulation Period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the market value of a Share on the Acquisition
 Date.

Market value for these purposes means the market value determined as described in paragraph (b)(i) above.

**Matching Shares**: Shares that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) have been appropriated to Participants
 without payment under rule 44 to rule 46, in proportion to Partnership Shares acquired for
 them and which, if relevant, shall include any New Shares held for them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) remain subject to the Plan.

**New York Stock Exchange:** means the New York Stock Exchange or any successor body.

**New Shares**: shares that are acquired following a Company Reconstruction that meets the requirements of paragraph 86 of Schedule 2. In this definition "shares" means any securities or rights which for the purposes of Chapter 2 of Part 4 of TCGA 1992 form part of the new holding.

**NICs**: National Insurance contributions.

**Original Holding**: any Plan Shares of a Participant.

**Participant**: any individual for whom the Trustee holds Plan Shares. The term participate shall be construed accordingly.

**Participating Company**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any Eligible Company specified by the
 Compensation Committee (at the relevant time) to be a Participating Company.

**Partnership Shares**: Shares that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) have been acquired for Participants
 under rule 29 to rule 43 using money deducted from those Participants' Salaries and which,
 where the context so permits, shall include any New Shares held on their behalf; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) remain subject to the Plan.

**Partnership Share Agreement**: an agreement entered into under rule 30.

**Partnership Share Money**: money deducted from a Participant's Salary under a Partnership Share Agreement to be held in accordance with the Plan and used for the Acquisition of Partnership Shares.

**Plan**: the employee share plan established and governed by these rules and the Trust Deed and which will be known as the ADI UK Sharebuilder Plan.

**Plan Shares**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Free Shares, Matching Shares and Partnership
 Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Dividend Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) New Shares.

**Qualifying Company**: has the meaning given in paragraph 17 of Schedule 2.

**Qualifying Corporate Bond**: has the meaning given in section 117 of TCGA 1992.

**Qualifying Deposit Taker**: a person, firm or building society as set out in paragraph 49(3) of Schedule 2.

**Qualifying Date**: the date on which the eligibility of employees to participate in an Award or Acquisition is determined, being:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) in
 the case of Free Shares, the Appropriation Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) in
 the case of Partnership Shares or Matching Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) if
 there is no Accumulation Period, the date that Partnership Share Money is deducted in respect
 of the Partnership Shares; and

ii) if there is an Accumulation Period, the date of the first deduction of Partnership Share Money in respect of the Partnership Shares in the Accumulation Period,

or subject to the definition of **Qualifying Period** any other date determined by the Trustee which is consistent with Schedule 2

**Qualifying Period:** has the meaning given in rule 6

**"Reconstruction or Takeover"** means any transaction affecting Plan Shares as mentioned in paragraph 37 of Schedule 2

**Redundancy**: has the meaning given in the Employment Rights Act 1996.

**Relevant Restriction**: any provision included in any contract, agreement, arrangement or condition to which any of sections 423(2), 423(3) and 423(4) of ITEPA 2003 would apply if references in those sections to employment-related securities were references to Shares.

**Relevant Third Party**: the Participant's employer and any other Participating Company.

**Salary**: has the meaning given in paragraph 43(4) of Schedule 2.

**Schedule 2**: Schedule 2 to ITEPA 2003.

**Schedule 2 SIP**: a share plan that meets the requirements of Schedule 2.

**Share Incentive Scheme**: any arrangement to provide employees or directors with shares.

**Share**: means a share of Common Stock in the Company that meet the requirements of paragraphs 26 to 33 of Schedule 2.

**Taxable Event**: an event that gives rise to a liability for pay as you earn (PAYE) income tax and NICs (or the equivalent in any jurisdiction) in respect of Plan Shares, Partnership Share Money or any other aspect of the Plan.

**Tax Liability**: any PAYE income tax and primary class 1 (employee) NICs (or the equivalent in any jurisdiction) that the Trustee, the Company or any employer (or former employer) of the relevant taxpayer must account for or reasonably believes is due as a result of a Taxable Event.

**Tax Year**: a period beginning on 6 April in one year and ending on 5 April in the following year.

**TCGA 1992**: the Taxation of Chargeable Gains Act 1992.

**Termination Notice**: a notice given by the Company under paragraph 89 of Schedule 2.

**Trust**: the ADI UK SIP Trust, set up and regulated by the Trust Deed.

**Trust Deed**: the deed setting up the Trust dated [DATE], between the Company and the Trustee.

**Trustee**: **Computershare Trustees Limited** incorporated and registered in England and Wales with company number 03661515, or its successor as trustee under the Trust.

1.2 Rule headings shall not affect the interpretation
 of the Plan.

1.3 Unless the context otherwise requires, words
 in the singular shall include the plural and in the plural shall include the singular.

1.4 Unless the context otherwise requires, a
 reference to one gender shall include a reference to any other gender.

1.5 A reference to legislation or a legislative
 provision is a reference to it as amended, extended or re-enacted from time to time.

1.6 A reference to legislation or a legislative
 provision shall include all subordinate legislation made from time to time under that legislation
 or a legislative provision.

1.7 A reference to writing or written includes
 email.

1.8 Any obligation on a party not to do something
 includes an obligation not to allow that thing to be done.

1.9 A reference to the Plan or to any other
 agreement or document referred to in the Plan is a reference to the Plan or any other agreement
 or document as varied or novated (in each case, other than in breach of the provisions of
 the Plan) from time to time.

1.10 References to rules are to the rules of
 the Plan and references to clauses are to clauses of the Trust Deed.

1.11 Any words following the terms including,
 include, in particular, for example or any similar expression shall be construed as illustrative
 and shall not limit the sense of the words, preceding those terms.

2 Period of operation

Invitations to participate in the Plan may only be issued after the Adoption Date.

---

| | |
|:---|:---|
| **3** | **Issue of invitations and Award of Shares** |

---

3.1 The Compensation Committee may issue invitations
 to participate in the Plan at any time.

3.2 Awards must not be made at any time if it
 would be unlawful, or in breach of any regulations or guidance with which the Company complies

4 Compensation Committee to decide whether Partnership, Free or Matching Shares will be awarded

The Compensation Committee may decide from time to time to issue invitations to Eligible Employees to participate in any one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Awards of Free Shares under rule 24
 to rule 28;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Acquisitions of Partnership Shares
 under rule 29 to rule 43; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Awards of Matching Shares under rule
 44 to rule 46 (but only in relation to Acquisitions of Partnership Shares).

---

| | |
|:---|:---|
| **5** | **Eligibility to participate in the Plan** |

---

5.1 On each occasion that the Compensation Committee
 decides to issue invitations to participate under the Plan, any Eligible Employee at the
 Qualifying Date must be invited to participate.

5.2 On each occasion that the Compensation Committee
 decides to issue invitations to participate under the Plan, the Compensation Committee may
 (but is not obliged to) invite any individual who satisfies the following conditions to participate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) being an employee of a Participating
 Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if a qualifying period of Continuous
 Service is specified by the Compensation Committee in accordance with rule 6, having at all
 times during that period been an employee of a Qualifying Company.

---

| | |
|:---|:---|
| **6** | **Continuous Service** |

---

6.1 For each invitation to participate in an Award,
 the Compensation Committee may specify a qualifying period of Continuous Service that must
 be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in relation to Free Shares, not more
 than 18 months (or any different period specified by paragraph 16(2) of Schedule 2) ending
 with the date on which an Award of Free Shares is made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in relation to an Acquisition of Partnership
 Shares with no Accumulation Period and any related Award of Matching Shares, not more than
 18 months (or any different period specified by paragraph 16(3) and (5) of Schedule 2) ending
 with the deduction of the Partnership Share Money relating to the Acquisition of Partnership
 Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in relation to an Acquisition of Partnership
 Shares with an Accumulation Period and any related Award of Matching Shares, not more than
 six months (or any different period specified by paragraph 16(4) and (6) of Schedule 2) ending
 with the start of the Accumulation Period.

---

| | |
|:---|:---|
| **7** | **Participation on the same terms** |

---

7.1 All invitations to participate in an Award
 made on a particular occasion must be made on the same terms.

7.2 Participation in any Award on a particular
 occasion must take place on the same terms

---

| | |
|:---|:---|
| **8** | **Overall limit on Awards** |

---

While the Company is subject to such a requirement, no Award will be made, if the total number of Dilutive Shares would be more than 10% of the issued share capital of the Company.

---

| | |
|:---|:---|
| **9** | **Tax Liabilities** |

---

9.1 By accepting an invitation to participate
 in an Award, each Participant agrees to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) pay any Tax Liability to the Trustee,
 the Company, the Participant's employer or former employer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) make arrangements to their satisfaction
 for any Tax Liability to be paid;

9.2 Each Participant further agrees that if the Trustee must account for a
 Tax Liability because the Participant's Plan Shares cease to be subject to the Plan (within
 the meaning given in rule 23.1), the Trustee may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) sell those Shares to meet that Tax
 Liability; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) sell the remaining Shares, if the
 Participant holds any remaining Plan Shares,

unless the Participant has paid or made arrangements to pay the Tax Liability under rule 9.1.

---

| | |
|:---|:---|
| **10** | **Relationship with employment contracts** |

---

10.1 The rights and obligations of any individual
 as an employee or director of a company shall not be affected by being a Participant.

10.2 The value of any benefits under the Plan
 shall not be taken into account in deciding any pension or similar entitlements.

10.3 Employees of Constituent Companies and Associated
 Companies (past and present) have no right to compensation for any loss in respect of Awards
 under the Plan, arising because:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) their employment ends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the status of a company under the
 Plan changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) they meet the criteria in rule 5.1
 but the Compensation Committee does not invite them to participate under that rule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any business is transferred from a
 Participating Company to any person or company that is not a Participating Company or an
 Associated Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the pattern of Awards changes (for
 example, because the terms are varied or suspended completely); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Compensation Committee does not
 nominate an Eligible Company to be a Participating Company.

---

| | |
|:---|:---|
| **11** | **Notices** |

---

11.1 Any notice or other communication given under
 or in connection with the Plan shall be in writing and shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) delivered by hand or by pre-paid first-class
 post or other next working day delivery service at the **Appropriate Address**. For the
 purposes of this rule 11.1(a), the Appropriate Address means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of the Company, its registered
 office provided the notice is marked for the attention of the General Counsel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the home address of an Eligible Employee
 or Participant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the Participant has died, and
 notice of the appointment of personal representatives has been given to the Company, any
 contact address they have specified in that notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) sent by email to the **Appropriate Email**. For the purposes of this rule 11.1(b) Appropriate Email Address means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of the Company, [EMAIL
 ADDRESS]; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 work email address of an Eligible Employee or Participant who is permitted to receive personal
 emails at work .

11.2 Any notice or other communication given under this rule 11 shall be deemed
 to have been received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if delivered by hand, on signature
 of a delivery receipt, or at the time the notice is left at the proper address;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if sent by pre-paid first-class post
 or other next working day delivery service, at 9.00am on the second Business Day after posting,
 or at the time recorded by the delivery service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if sent by email, at 9.00am on the
 next Business Day after sending.

---

| | |
|:---|:---|
| **12** | **Termination of the Plan** |

---

12.1 The Compensation Committee may issue a Termination Notice at any time,
 if it considers it appropriate to do so.

12.2 After the issue of a Termination Notice, no further Awards can be made
 under the Plan.

12.3 A copy of the Termination Notice must be given without delay to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each Participant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each individual who has entered into
 a Partnership Share Agreement that was in force immediately before the Termination Notice
 was issued.

---

| | |
|:---|:---|
| **13** | **Administration and amendment** |

---

13.1 The Compensation Committee shall direct the administration of the Plan.

13.2 The Compensation Committee may amend the Plan from time to time but:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Compensation Committee may not
 amend a Key Feature of the Plan if the effect would be that the Plan would no longer be a
 Schedule 2 SIP. If the Compensation Committee amends a Key Feature of the Plan, the Company
 shall make a declaration within paragraph 81B(7) of Schedule 2 that the Plan continues to
 meet the requirements of Parts 2 to 9 of Schedule 2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) While Shares are admitted to the New
 York Stock Exchange, the Compensation Committee may not make any amendment to the advantage
 of Participants if that amendment relates to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the definition of Eligible Employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) rule 8; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the basis for determining a Participant's
 entitlement to, and the terms of, Shares provided under the Plan;

without the prior approval of the Company in general meeting, unless it is a minor amendment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 benefit the administration of the Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to
 take account of a change in legislation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to
 obtain or maintain favourable tax, exchange control or regulatory treatment for Participants
 or for the Company or any Participating Company.

---

| | |
|:---|:---|
| **14** | **Governing law** |

---

The Plan and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the law of England and Wales**.**

---

| | |
|:---|:---|
| **15** | **Jurisdiction** |

---

15.1 Each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to
settle any dispute or claim arising out of or in connection with the Plan or its subject matter or formation (including non-contractual
disputes or claims).

15.1 Each party irrevocably consents to any process in any legal action or proceedings under rule 15.1 being served on it in accordance
with the provisions of the Plan relating to service of notices. Nothing contained in the Plan shall affect the right to serve process
in any other manner permitted by law.

---

| | |
|:---|:---|
| **16** | **Third party rights** |

---

16.1 Except as set out in rule 16.3, a person who is not a party to an Award has no rights under the Contracts (Rights of Third Parties)
Act 1999 to enforce any term of, or otherwise claim any benefit in connection with, these rules or any Award.

16.2 The parties to an Award may vary, waive, settle, rescind, surrender or terminate an Award (in whole or in part) without the consent
of any person who is not a party to it.

16.3 Rule 16.1 does not prevent a Relevant Third Party from enforcing any term of these rules or any Award that expressly confers a benefit
on that Relevant Third Party.

---

| | |
|:---|:---|
| **17** | **Data protection** |

---

For the purpose of operating the Plan, the Company will collect and process information relating to Employees in accordance with the privacy notice which is available on request by email addressed to [ADD EMAIL ADDRESS].

---

| | |
|:---|:---|
| **18** | **Stamp duty and stamp duty reserve tax** |

---

On or before the date on which invitations to participate in an Award are issued, the Compensation Committee must specify which of the following will be responsible for paying any stamp duty or stamp duty reserve tax arising on an Award:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Participating Company that is or was the Participant's employer company, if the costs of operating
the Plan are divided between Constituent Companies; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Trustee, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Trustee gives its prior written consent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Trust will have sufficient unallocated funds to meet the relevant stamp duty liability, or the Company
(or relevant Participating Company) will provide sufficient additional funds to allow the Trust to do so

---

| | |
|:---|:---|
| **19** | **Holding periods for Free Shares, Matching Shares and Dividend Shares** |

---

19.1 The Compensation Committee must specify a Holding Period for each Award of Free Shares or Matching Shares.

19.2 The Compensation Committee may specify different Holding Periods for different Awards of Free Shares or Matching Shares, but may not
increase any Holding Period once it has begun.

19.3 During a Holding Period, every Participant who participates in the relevant Award of Free Shares, Matching Shares or Dividend Shares
must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) allow those Plan Shares to remain in the hands of the Trustee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not assign, charge or otherwise dispose of the beneficial interest in those Plan Shares.

19.4 A Participant's obligations with respect to a Holding Period end if, during the Holding Period, the Participant ceases to be employed
by a Participating Company or any Associated Company (without then employed by any other company that is an Associated Company).

19.5 During a Holding Period, a Participant with Plan Shares subject to that Holding Period may instruct the Trustee to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept an offer for any of the relevant Plan Shares, if it will result in new holdings which are equated
with the corresponding original Plan Shares for the purposes of capital gains tax; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) agree to a transaction affecting any of the relevant Plan Shares (or those that belong to a particular
class), if the transaction would be entered into as a result of a compromise, arrangement or scheme that affects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all the ordinary share capital of the relevant company or all shares in the class in question; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all the ordinary share capital of the relevant company or all shares in the class in question that are
held by a class of shareholders identified otherwise than by reference to their employment or their participation in a Schedule 2 SIP;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) accept an offer for any of the relevant Plan Shares of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) cash (with or without other assets); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a Qualifying Corporate Bond (with or without other assets or cash or both), if that offer forms part of
a general offer that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is made to holders of shares of the same class, or to holders of shares in the same company, as the relevant
Plan Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is made in the first instance on a condition such that, if it is satisfied, the person making the offer
will have control of the relevant company. (In this rule 19.5(c)(iv), control has the same meaning as in sections 450 to 451 of CTA 2010
and not the meaning given in rule 1.1.)

---

| | |
|:---|:---|
| **20** | **Forfeiture of Free Shares and Matching Shares** |

---

20.1 For each Award of Free Shares, the Compensation Committee may specify under the Contract of Participation
whether rule 20.3 shall apply to all of the Shares in that Award, and, if so, shall specify the Forfeiture Period.

20.2 For each Award of Matching Shares, the Compensation Committee may specify under the relevant Partnership
Share Agreement whether rule 20.3 shall apply to all of the Shares in that Award and, if so, shall specify the Forfeiture Period.

20.3 If this rule 20.3 applies to any Free Shares and Matching Shares, they will be Forfeit if, during the
Forfeiture Period, the Participant's employment with a Participating Company or any Associated Company ends (and the Participant is not
employed by any other company that is an Associated Company), unless the employment ends because of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) injury or disability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Redundancy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a relevant transfer within the meaning of the Transfer or Undertakings (Protection of Employment) Regulations
2006;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the Participant is an employee of an Associated Company, a change of control or other circumstances
as a result of which it is no longer an Associated Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) retirement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) death.

20.4 Free Shares and Matching Shares will be Forfeit if any Shares are withdrawn from the Plan as described
in rule 22 during the Forfeiture Period.

20.5 Forfeiture must not be linked to the performance of any individual.

---

| | |
|:---|:---|
| **21** | **Partnership Shares and Dividend Shares to be offered for sale on cessation of employment** |

---

21.1 For each Acquisition of Partnership Shares, the Compensation Committee may specify under the Partnership
Share Agreement whether the Shares must be offered for sale in accordance with rule 21.3.

21.2 For each Acquisition of Dividend Shares, the Compensation Committee may specify whether the Shares must
be offered for sale in accordance with rule 21.3.

21.3 If this rule applies to any Partnership Shares or Dividend Shares, they will be required to be offered
for sale for the price specified in rule 21.4 or rule 21.5 as applicable. If Shares are required to be offered for sale, for the purposes
of clause 5.3 of the Trust Deed, the Participant will be deemed to instruct the Trustee to dispose of such Shares in accordance with this
rule 21.

21.4 If the Participant's employment with a Participating Company or any Associated Company ends (and the Participant
is not employed by any other company that is an Associated Company) after the expiry of three years from the Acquisition Date for any
of the reasons specified in rule 20.3(a) to rule 20.3(f), the price at which Partnership Shares and Dividend Shares must be offered for
sale under rule 21.3 must be the Market Value of the Shares at the time they are offered for sale.

21.5 If the Participant's employment with a Participating Company or any Associated Company ends (without being
employed by any other company that is an Associated Company) within three years of the Acquisition Date and for any reason other than
a reason specified in rule 20.3(a) to rule 20.3(f), the price at which Partnership Shares and Dividend Shares must be offered for sale
under rule 21.3 must be the lower of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the amount of Partnership Share Money or dividends applied in the Acquisition of Shares on behalf of the
Participant; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Market Value of the Shares at the time they are offered for sale.

---

| | |
|:---|:---|
| **22** | **Withdrawal of Shares from the Plan** |

---

22.1 phrase "withdrawn from the Plan" has the meaning given in paragraph 96 of Schedule 2.

22.2 A Participant may withdraw from the Plan any Free Shares, Matching Shares or Dividend Shares held by the
Trustee at any time after the end of the applicable Holding Period

---

| | |
|:---|:---|
| **23** | **Plan Shares ceasing to be subject to the Plan** |

---

23.1 Plan Shares cease to be subject to the Plan on the earliest of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) when they are withdrawn from the Plan by the Participant (subject to rule 20); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) when the relevant Participant's employment with a Participating Company or any Associated Company ends
(without being employed by any other company that is an Associated Company).

23.2 rule 23.2 applies to a Participant who is expected to acquire Partnership Shares under a Partnership Share
Agreement but whose employment with a Participating Company or any Associated Company ends (without being employed by any other company
that is an Associated Company) before the Acquisition Date, and either

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if there is an Accumulation Period and it has ended; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if there is no Accumulation Period, but Partnership Share Money has been deducted.

For the purposes of rule 23.1(a) the Participant's employment is treated as ending immediately after the relevant Partnership Share Award is made.

23.3 Subject to rule 20, the Trustee will transfer or dispose of Shares that cease to be subject to the Plan
under rule 23.1 as soon as possible in accordance with the Participant's instructions. This is provided the Shares are not required by
the Trustee to discharge the Participant's PAYE obligations in accordance with rule 9.

---

| | |
|:---|:---|
| **24** | **Free Share Awards** |

---

24.1 Subject to rule 24 to rule 28, the Compensation Committee may from time to time instruct the Trustee to
invite Eligible Employees to participate in an Award of Free Shares.

24.2 For each Award of Free Shares, the Compensation Committee may specify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each Participant receives a certain number or value of Free Shares, which will be the same for each of
Participant); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the number or value of Free Shares received by each Participant is determined in accordance with rule
27 and (if applicable) rule 28.

---

| | |
|:---|:---|
| **25** | **Contracts of Participation** |

---

An Eligible Employee who wishes to participate in an Award of Free Shares must enter into a Contract of Participation with the Company and the Trustee in the form specified by the Compensation Committee from time to time.

---

| | |
|:---|:---|
| **26** | **Maximum annual value of Free Share Awards** |

---

26.1 In any Tax Year, the total Market Value of Free Shares (at the relevant Award Dates) awarded to any individual
must not be more than £3,600 (or any other amount specified by paragraph 35(1) of Schedule 2).

26.2 For the purposes of rule 26.1, Free Shares includes any free shares (as defined in Schedule 2) awarded
under any share incentive plan (other than the Plan):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that is a Schedule 2 SIP at the time of the award of those free shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) set up by the Company or any connected company as defined in paragraph 18(3) of Schedule 2

26.3 If Free Shares are subject to a Relevant Restriction, information on the nature of the Relevant Restriction
must be included in the Contract of Participation.

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| | |
|:---|:---|
| **27** | **Free Share Award levels set by remuneration, service or hours worked** |

---

27.1 The Compensation Committee may specify that the value or number of Free Shares awarded is calculated (in
a manner determined by the Compensation Committee) by reference to each Participant's:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) remuneration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) length of service; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) hours worked.

27.2 If more than one of these factors is used:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each factor will give rise to a separate level of entitlement to Free Shares for each Participant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a Participant's total entitlement to Free Shares is the sum of those separate entitlements.

27.3 If Award levels are set in this way, the Company must inform each Participant how the value or number
of Free Shares awarded was calculated.

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| | |
|:---|:---|
| **28** | **Free Share Award levels set by reference to performance targets** |

---

28.1 The Compensation Committee may specify that the value or number of Free Shares (if any) to be awarded
is determined (either in whole or in part) by reference to performance targets specified by the Compensation Committee for that Award.
The performance targets specified must apply to all Eligible Employees in relation to that Award.

28.2 Any performance target must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be set for a performance unit of one or more employees specified by the Compensation Committee (but no
employee may be a member of more than one performance unit);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) relate to business results or other objective criteria over a specified period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) be a fair and objective measure of the performance of the performance unit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) be communicated by the Company to Participants who may be affected by it, as soon as possible in accordance
with rule 28.3; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) comply with rule 28.6 (if applicable).

28.3 As soon as reasonably practicable, the Company must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) notify each Participant that has entered into a Contract of Participation of the performance targets and
measures that will be used to determine the number or value of Free Shares to be awarded under that agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) notify all Eligible Employees in general terms of the performance measures that will be used to determine
the number or value of Free Shares that will be awarded to each Participant under the Award. The Company may omit from that notice any
information that it reasonably considers would prejudice commercial confidentiality, if it was disclosed.

28.4 If the Compensation Committee specifies, under rule 28.1, that an Award of Free Shares will be determined
by reference to performance targets for that Award of Free Shares, the Compensation Committee must specify which of rule 28.5 or rule
28.6 will apply to that Award.

28.5 If the Compensation Committee specifies that this rule 28.5 applies to an Award of Free Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at least 20% of those Free Shares must not be performance-linked, so that each Participant receives a
number of Free Shares that is either (as specified by the Compensation Committee):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the same for all Participants; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) calculated using the factors listed in rule 27.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the remaining Free Shares in the Award must be awarded by reference to performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the highest number of Free Shares awarded to any individual under rule 28.5(b) must not be more than four
times the highest number of Free Shares awarded to any individual under rule 28.5(a); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the Award includes Free Shares of different classes, the requirements of this rule 28.5 will apply
to the Free Shares of each class as if they were a separate Award of Free Shares.

28.6 If the Compensation Committee pecifies that this rule 28.6 applies to an Award of Free Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) some or all of the Free Shares in the Award (as specified by the Compensation Committee) must be awarded
by reference to performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the performance targets specified for different performance units must be consistent targets, which are
reasonably comparable in terms of the likelihood of being met by the performance units to which they apply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Free Shares in the Award must be awarded so that each Participant within a given performance unit
receives an amount of Free Shares (if any) that is determined in whole or in part by reference to the relevant performance target and
is either (as specified by the Compensation Committee):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the same for all Participants in that performance unit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) different for different members of the performance unit, with the differences between members determined
using the factors listed in rule 27.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in deciding whether invitations to participate and the participation of individual Participants under
an Award of Free Shares are on the same terms, as required by rule 7, the Free Shares awarded to each performance unit will be treated
as a separate Award. If the requirements of this rule 28.6 are met, invitations to participate made to, and participation by, members
of different performance units under an Award of Free Shares do not need to be on the same terms.

---

| | |
|:---|:---|
| **29** | **Partnership Share Awards** |

---

Subject to the rules, the Compensation Committee may from time to time instruct the Trustee to invite Eligible Employees to acquire Partnership Shares.

---

| | |
|:---|:---|
| **30** | **Partnership Share Agreements** |

---

30.1 A Participant who wishes to participate in an Acquisition of Partnership Shares (and any related Award
of Matching Shares) must enter into a Partnership Share Agreement with the Company and the Trustee in a form specified by the Compensation
Committee from time to time.

30.2 Each Partnership Share Agreement must include a notice in a prescribed form, as specified in paragraph
48 of Schedule 2 and the Company must not enter into a Partnership Share Agreement that does not contain this notice.

30.3 If Partnership Shares are subject to a Relevant Restriction, information on the nature of the Relevant
Restriction must be included in the Partnership Share Agreement.

---

| | |
|:---|:---|
| **31** | **Accumulation Periods** |

---

31.1 For each Acquisition of Partnership Shares, the Compensation Committee may (but is not required to) specify
an Accumulation Period that must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not be longer than 12 months;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) have its beginning and end specified in the Partnership Share Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) begin not later than the date of the first deduction of Partnership Share Money to be used for that Acquisition;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) be the same for all Eligible Employees.

31.2 If, during an Accumulation Period, a signatory to a Partnership Share Agreement's employment with a Participating
Company or any Associated Company ends (and the signatory is not then employed by any other company that is an Associated Company), the
money deducted during that Accumulation Period must be returned to the signatory's as soon as possible, after the deduction of income
tax and primary class 1 (employee) NICs.

31.3 For each Acquisition of Partnership Shares for which an Accumulation Period applies, the Partnership Share
Agreement may specify that the Accumulation Period will come to an end when an event specified in the agreement occurs, in accordance
with paragraph 51(3)(b) of Schedule 2.

31.4 If a transaction occurs during an Accumulation Period that results in a new holding of shares being treated,
for the purposes of capital gains tax, as being the same as any Partnership Shares that were to be acquired, each Partnership Share Agreement
will (if the Participant consents) be treated as an agreement for the purchase of shares of the same description in the acquiring company.

---

| | |
|:---|:---|
| **32** | **Limitations on the maximum amount of Partnership Share Money** |

---

32.1 In any Tax Year, the amount of Partnership Share Money deducted from an Eligible Employee's Salary must
not be more than the maximum amount specified by paragraph 46 of Schedule 2.

32.2 In rule 32.1, Partnership Share Money includes any partnership share money (as defined in Schedule 2)
deducted under any share incentive plan (other than the Plan) that was:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a Schedule 2 SIP when the partnership share money was deducted; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) set up by the Company or any connected company as defined in paragraph 18(3) of Schedule 2.

32.3 For any Acquisition of Partnership Shares, the Compensation Committee may set a limit on the amount of
Partnership Share Money deducted, which is a sum of money or percentage of Salary for each Tax Year that is less than the maximum amount
specified by paragraph 46 of Schedule 2.

32.4 For any Acquisition of Partnership Shares, the Compensation Committee may specify that particular descriptions
of earnings determined by the Compensation Committee should be excluded from an Eligible Employee's Salary when calculating any amount
specified by the Compensation Committee under rule 32.3.

32.5 Any amount of Partnership Share Money deducted in excess of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the maximum amount specified by paragraph 46 of Schedule 2; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any limit set by the Compensation Committee under rule 32.3,

must be repaid as soon as possible (after the deduction of income tax and primary class 1 (employee) NICs).

---

| | |
|:---|:---|
| **33** | **Deductions from Salary** |

---

33.1 A Partnership Share Agreement will be given effect by deductions of Partnership Share Money from a Participant's
Salary in accordance with the Partnership Share Agreement.

33.2 The Partnership Share Agreement must specify:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the amounts of Partnership Share Money (which may be expressed as a percentage of Salary) to be deducted;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the intervals at which the deductions must be made.

33.3 A Participant may agree in writing with the Company to vary the amount of Partnership Share Money or the
intervals at which deductions are made at any time.

33.4 The Participant's employer company must calculate the amount of Partnership Share Money and the intervals
at which deductions are made with regard to the limit on deductions from Salary in rule 32.

---

| | |
|:---|:---|
| **34** | **Minimum deduction of Partnership Share Money** |

---

For each Acquisition of Partnership Shares, the Compensation Committee may specify a minimum amount that may be deducted from an Eligible Employee's Salary as Partnership Share Money. The specified minimum amount must not be more than £10 (or any other amount specified by paragraph 47(2) of Schedule 2).

---

| | |
|:---|:---|
| **35** | **Holding and application of Partnership Share Money** |

---

35.1 Partnership Share Money must be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) paid over to the Trustee as soon as possible; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) held by the Trustee in an account with a Qualifying Deposit Taker until it is either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) used by the Trustee to acquire Partnership Shares for the Participant; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) repaid to the employee under any other rule of this Plan.

35.2 If the account referred to in rule 35.1(b) is an interest bearing account, the Trustee must account to
each Eligible Employee for any interest earned on the Partnership Share Money.

---

| | |
|:---|:---|
| **36** | **Restriction on maximum number of Partnership Shares** |

---

36.1 For each Acquisition of Partnership Shares, the Compensation Committee may specify a maximum number of
Shares that Participants may acquire.

36.2 Partnership Share Agreements must contain an undertaking by the Company to notify the Participant if there
is any restriction on the number of Partnership Shares and any associated threshold amount for the purposes of scaling down under rule
37 before:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the beginning of the Accumulation Period, if there is one; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the deduction of the Partnership Share Money, if there is no Accumulation Period.

---

| | |
|:---|:---|
| **37** | **Scaling down the number of Partnership Shares received by each Participant** |

---

37.1 The number of Partnership Shares received by each Participant shall be proportionately reduced, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Compensation Committee has specified a maximum number of Shares available for an Acquisition of Partnership
Shares under rule 36; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Partnership Share Money deducted (or to be deducted) for that Acquisition would acquire a total number
of Partnership Shares in excess of the specified limit.

37.2 Each Participant must be notified of the scaling down and its effect on the number of Partnership Shares
awarded to that Participant.

---

| | |
|:---|:---|
| **38** | **Acquisition of Partnership Shares** |

---

38.1 The Trustee must apply each Eligible Employee's Partnership Share Money to acquire Partnership Shares
on the relevant Acquisition Date.

38.2 If there is no Accumulation Period, the number of Partnership Shares acquired for each Participant (rounded
down to the nearest whole number) is calculated by dividing the Participant's available Partnership Share Money by the Market Value of
a Share on the Acquisition Date.

38.3 If there is an Accumulation Period, the number of Shares (rounded down to the nearest whole number) will
be calculated by dividing the Participant's available Partnership Share Money by one of the following, as determined by the Compensation
Committee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the lower of the Market Value of a Share at the beginning of the Accumulation Period and the Market Value
of a Share on the Acquisition Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Market Value of a Share at the beginning of the Accumulation Period; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Market Value of a Share on the Acquisition Date.

The Partnership Share Agreement must specify which of these methods is used to calculate the number of Partnership Shares.

---

| | |
|:---|:---|
| **39** | **Surplus Partnership Share Money** |

---

Any Partnership Share Money remaining after an Acquisition of Partnership Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) may, with the agreement of the Participant, be carried forward to the next Accumulation Period or (if
there are no Accumulation Periods) be added to the amount of the next deduction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) must be repaid to the Participant as soon as possible after the deduction of income tax and primary class
1 (employee) NICs.

---

| | |
|:---|:---|
| **40** | **Withdrawal from Partnership Share Agreement** |

---

40.1 A Participant may withdraw from a Partnership Share Agreement at any time by notice in writing to the
Company. Unless a later date is specified in it, a notice given under this rule 40.1 will take effect 30 days after the Company receives
it.

40.2 Any Partnership Share Money held for a Participant at the time of withdrawal from the Partnership Share
Agreement under rule 40.1 will be repaid to the Participant as soon as possible after the deduction of income tax and primary class 1
(employee) NICs.

---

| | |
|:---|:---|
| **41** | **Stopping and restarting deductions of Partnership Share Money** |

---

41.1 A Participant may give notice in writing to the Company to stop deductions of Partnership Share Money
under a Partnership Share Agreement at any time. Unless a later date is specified in the notice, the Company must ensure that no further
deductions are made more than 30 days after it receives the notice.

41.2 A Participant who has stopped deductions of Partnership Share Money may give notice in writing to the
Company to restart deductions of Partnership Share Money under the relevant Partnership Share Agreement. Unless a later date is specified
in the notice, the Company must ensure that deductions are restarted no later than 30 days after the Company receives the notice (unless
the date of the first deduction falls after that).

41.3 A Participant who restarts deductions under rule 41.2 may not make up any deductions that have been missed
while the deductions were stopped

---

| | |
|:---|:---|
| **42** | **Repayment of Partnership Share Money if Plan terminated or no longer tax-advantaged** |

---

Any Partnership Share Money held must be repaid to the affected Participants as soon as possible, after the deduction of income tax and primary class 1 (employee) NICs, in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Plan ceases to be a Schedule 2 SIP; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a Termination Notice is issued under rule 12.

---

| | |
|:---|:---|
| **43** | **Withdrawal of Partnership Shares from the Plan** |

---

A Participant may withdraw Partnership Shares from the Plan at any time, but this may result in the Participant forfeiting some or all of the corresponding Matching Shares under rule 20.

---

| | |
|:---|:---|
| **44** | **Matching Share Awards** |

---

Subject to these rules, the Compensation Committee may from time to time instruct the Trustee to make an Award of Matching Shares in connection with an Acquisition of Partnership Shares.

---

| | |
|:---|:---|
| **45** | **Matching Shares** |

---

45.1 Matching Shares must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be of the same class and carry the same rights as the Partnership Shares to which they relate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be awarded on the same day as the Partnership Shares to which they relate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) be awarded to all Participants that acquire Partnership Shares to which the Matching Shares relate on
exactly the same basis.

45.2 If Matching Shares are subject to a Relevant Restriction, information on the nature of the Relevant Restriction
must be included in the Partnership Share Agreement

---

| | |
|:---|:---|
| **46** | **Determining the number of Matching Shares to be awarded** |

---

46.1 For any Award of Matching Shares, the Compensation Committee must specify the ratio of Matching Shares
to Partnership Shares. The ratio determined by the Compensation Committee must not exceed two Matching Shares for every Partnership Share
(or any other limit specified by paragraph 60(2) of Schedule 2).

46.2 A Partnership Share Agreement under which an Award of Matching Shares is to be made must specify the ratio
of Matching Shares to Partnership Shares determined by the Compensation Committee under rule 46.1 and the circumstances and manner in
which the ratio may be changed by the Compensation Committee under rule 46.3.

46.3 The Compensation Committee, in its absolute discretion, may alter the ratio of Matching Shares to Partnership
Shares at any time, however:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Compensation Committee must give notice of any such change to all affected Participants and the Trustee
as soon as possible; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any altered ratio must take effect on the first Acquisition of Partnership Shares in relation to which
Matching Shares are to be awarded falling after the end of a period of 30 days from the date the Compensation Committee sent the notice.

46.4 If the calculation of the number of Matching Shares to be awarded to a Participant gives a result that
is not a whole number:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in that Award, the Participant will receive the largest whole number of Matching Shares that is less than
the entitlement (or no Matching Shares if the entitlement is less than one); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the entitlement to less than one Matching Share not reflected in that Award will be carried forward and
added to the entitlement to Matching Shares in the next (and if necessary, any subsequent) Awards of Matching Shares (if any).

46.5 If a Participant withdraws from the relevant Partnership Share Agreement while entitled to receive less
than one Matching Share in a potential future Award under rule 46.4(b), the Participant will not be compensated for the loss of that entitlement.

---

| | |
|:---|:---|
| **47** | **Instructions to acquire Dividend Shares** |

---

47.1 The Company may at any time direct the Trustee to use some or all of the cash dividends paid in respect
of Plan Shares to acquire Dividend Shares on behalf of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Participants; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) those Participants who elect to reinvest their dividends.

47.2 The Company may at any time revoke or amend any instruction previously given under rule 47.1.

47.3 In any instruction given or amended under rule 47.1, the Company must set out the amount of cash dividends
to be applied by the Trustee in accordance with that rule 47.1, or how that amount is to be determined.

---

| | |
|:---|:---|
| **48** | **Dividend Shares** |

---

Dividend Shares must be Shares of the same class and carry the same rights as the Plan Shares in respect of which the dividend is paid.

---

| | |
|:---|:---|
| **49** | **Acquisition of Dividend Shares** |

---

49.1 In acquiring Dividend Shares, the Trustee must treat Participants fairly and equally.

49.2 The Trustee must apply cash dividends to acquire Dividend Shares on behalf of Participants on the Acquisition
Date.

49.3 The number of Dividend Shares acquired on behalf of each Participant is determined by the Market Value
of those Shares on the Acquisition Date.

---

| | |
|:---|:---|
| **50** | **Dividend amounts carried forward** |

---

50.1 Subject to rule 50.2, any amount of cash dividend received on behalf of a Participant that is not used
to acquire Dividend Shares because:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the cash dividend is not sufficient to acquire a Share; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) there is an amount left over after acquiring Dividend Shares,

may be retained by the Trustee and added to the amount of the next cash dividend that is used to acquire Dividend Shares for that Participant. Any amount that is kept by the Trustee must be separately identifiable from any other amounts carried forward under this rule.

50.2 If an amount of a cash dividend is carried forward under rule 50.1, it will be repaid to the Participant
as soon as possible if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Participant's employment with a Participating Company or any Associated Company ends (without being
employed by any other company which is an Associated Company); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a Termination Notice is issued under rule 12.

---

| | |
|:---|:---|
| **51** | **Rights issues and capitalisation issues** |

---

51.1 Whenever any rights to acquire New Shares are granted by a company to the holders of any class of shares
of which some are Plan Shares the Trustees shall sell sufficient rights nil paid to the extent necessary to enable the Trustees to subscribe
in full for the balance of any unsold rights.

51.2 Except as provided in Rule 54, any New Shares taken up by the Trustees on behalf of any Participant under
Rule 51.1 will form part of the Participant's Plan Shares and will be deemed to have been appropriated to, or acquired on behalf of the
Participant, in the same way and at the same time as the Participant's Plan Shares to which they relate except that this Rule 51.2 does
not apply in relation to rights arising under a rights issue to subscribe shares in a company unless similar rights are conferred in respect
of all ordinary shares in the company.

51.3 Nothing in this Rule requires the Trustees to act in any manner which would involve them in any liability
unless indemnified to their satisfaction by the Participant against that liability.

51.4 If any New Shares are allotted by way of capitalisation to the Trustees in respect of any Participant's
Plan Shares, those New Shares will form part of that Participant's Plan Shares and will be deemed to have been appropriated at the same
time as the Participant's Plan Shares in respect of which they are allocated.

---

| | |
|:---|:---|
| **52** | **Reconstruction and waiver** |

---

52.1 If there is a Reconstruction or Takeover affecting Plan Shares, Participants must be notified of the Reconstruction
or Takeover by the Trustees and any Participant may give notice to the Trustees instructing them on the action to be taken and, if appropriate,
exercise any right to elect to receive any particular form of consideration available in respect of any of his or her Plan Shares.

52.2 If there is a Reconstruction or Takeover affecting Plan Shares, the consideration received will if it
consists of cash or securities which cannot be held under the Plan be treated as the proceeds of a disposal under Rule 14.1 and if it
consists of New Shares be held by the Trustees as Plan Shares under the Rules applied, with the necessary changes, as if they were the
Shares in respect of which they are issued or which they otherwise represent.

52.3 If notices to acquire compulsorily any Plan Shares are issued under section 979 of the Companies Act 2006
by another company for a consideration consisting of cash and/or shares, Participants must be notified of this by the Trustees as soon
as practicable after receipt of the notices by the Trustees and the Participant give notice of his or her instructions to the Trustees
in relation to the consideration. The provisions of Rules 52.1, 52.2 and 54 apply, with the necessary changes.

52.4 If a transaction occurs during an Accumulation Period by virtue of which the Shares to be acquired under
the Partnership Share Agreement would result in a new holding of shares equating to the original holding of shares for capital gains tax
purposes, the Compensation Committee must with the consent of the relevant Eligible Employee allow the Partnership Share Agreement to
continue in effect as if it were an agreement to purchase the shares comprising the new holding.

---

| | |
|:---|:---|
| **53** | **Scrip dividends** |

---

53.1 Except as provided in Rule 47, this Rule 53 applies where the holders of any class of shares of which
some are Plan Shares are offered the right to elect to receive shares, credited as fully paid in whole or in part, in place of a cash
dividend. Within five Dealing Days or any other period decided by the Trustees before the closing of the offer, the Participant may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) instruct the Trustees to elect to receive shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) instruct the Trustees to elect to receive cash,

53.2 which instructions may be of particular or of general application and relate to Plan Shares awarded before
and after the relevant date of the scrip dividend. If rule 47.1(b) applies the Trustees must notify Participants of their right to elect
for shares or cash.

53.3 Any shares taken up by the Trustees on behalf of any Participant under this Rule will not form part of
the Participant's Plan Shares to which they relate and they will belong to the Participant and the Trustees must take all reasonable steps
to procure that the Shares so acquired are vested in the Participant without delay.

---

| | |
|:---|:---|
| **54** | **Fractional entitlements** |

---

54.1 If a company makes an offer or invitation conferring any rights upon its members including the Trustees
to acquire, against payment, additional securities in that company or if that company allots any new securities by way of capitalisation,
the Trustees must allocate those rights or securities amongst the Participants concerned on a proportionate basis and, if the allocation
will give rise to a fraction of a security or a transferable unit thereof (in this Rule a "unit"), they must round the allocation
down to the next whole unit and the Trustees must aggregate the fractions not allocated and use their best endeavours to sell any rights
or units which are not allocated and distribute the net proceeds of sale (after deducting any expenses of sale and any tax payable) proportionately
among the Participants whose allocation was rounded down, except that any sum of less than £3 otherwise distributable to a particular
Participant may be retained by the Trustees.

54.2 If when the Trustees allocate the New Shares received in respect of Plan Shares in accordance with Rules
51 and 52, the allocation would give rise to a fraction of a New Share, the Trustees must, subject to Schedule 2 and the Tax Act, round
the allocation up or down to the next whole unit as they think fit.

---

| | |
|:---|:---|
| **55** | **Information** |

---

The Trustees must maintain any records necessary to comply with the requirements of paragraph 80 of Schedule 2 (Other duties of trustees in relation to tax liabilities), and must give to each Participant any information in their possession that will enable the Participant to determine and quantify any liability he or she may have to income tax under Chapter 2 of Part 2 of ITEPA (Tax on Employment Income).

---

| | |
|:---|:---|
| **56** | **Disputes** |

---

The decision of the Compensation Committee in any dispute or question affecting any Eligible Employee or Participant under the Plan is final and conclusive.

## Exhibit 10.14

**Exhibit 10.14**

ADI GLOBAL DISTRIBUTION INC. SEVERANCE PLAN

FOR DESIGNATED OFFICERS

Effective as of August [__], 2026

GENERAL PROVISIONS

&nbsp;&nbsp;&nbsp;&nbsp;**1.**  **<u>Purpose and Scope</u>** 

The purpose of the ADI Global Distribution Inc. Severance Plan for Designated Officers (the "Plan") is to provide severance related benefits to select eligible employees of ADI Global Distribution Inc. and its participating divisions, subsidiaries and affiliates and whose employment relationship is involuntarily terminated at the initiative of the Company for reasons other than Cause and who are thereafter, as a result of such termination, no longer employed by the Company or any successor thereto.

This Plan is intended to be an unfunded "welfare benefit plan" within the meaning of Section 3(1) of ERISA and is being maintained as a "top hat" plan for a select group of management or highly compensated employees.

The terms of this Plan are intended to, and shall be interpreted so as to, comply in all respects with the provisions of Section 409A of the Code, and the regulations and rulings promulgated thereunder (collectively, "Code Section 409A") and, if necessary, any provision of the Plan shall be held null and void to the extent such provision (or any part thereof) fails to comply with Code Section 409A.

This Plan is comprised of Part I – Provisions Prior to a Change in Control, Part II – Special Provisions That Become Effective Only Upon a Change in Control, and Part III – Special Provisions Applicable to Former Officers of Resideo Technologies, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;**2.**  **<u>Effective Date</u>** 

The Plan is hereby effective as of the first day of ADI's existence as a publicly traded company with respect to Participants whose employment is terminated by the Company on or after such date.

Page 1 of 18

**PART I**

**PROVISIONS PRIOR TO A CHANGE IN CONTROL**

&nbsp;&nbsp;&nbsp;&nbsp;**3.**  **<u>Definitions</u>** 

As used throughout the Plan unless otherwise clearly or necessarily indicated by context:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**ADI**" means ADI Global Distribution Inc., a Delaware Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Annual Base Salary**" means an amount equal to the product of (i) Base Salary, and (ii) twelve (12).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Annual Incentive Compensation**" means, except as provided in Section 23(a), an amount equal to the product of the Participant's (i) Incentive Award Target Percentage for the calendar year in which Participant's Covered Termination occurs, and (ii) Annual Base Salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **"Base Salary**" means the highest monthly base salary payable to a Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Board**" means ADI Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Cause**" means any of the following: (i) clear and convincing evidence of a significant violation of the Company's Code of Business Conduct; (ii) the misappropriation, embezzlement or willful destruction of Company property of significant value; (iii)(A) the willful failure to perform, (B) gross negligence in the performance of, or (C) intentional misconduct in the performance of, significant duties that results in material harm to the business of the Company; (iv) the conviction (treating a nolo contendere plea as a conviction) of a felony (whether or not any right to appeal has been or may be exercised); (v) the failure to cooperate fully in a Company investigation or the failure to be fully truthful when providing evidence or testimony in such investigation; or (vi) clear and convincing evidence of the willful falsification of any financial records of the Company that are used in compiling the Company's financial statements or related disclosures, with the intent of violating Generally Accepted Accounting Principles or, if applicable, International Financial Reporting Standards. In the case of a determination under Part I of the Plan, Cause shall be determined by the Chief Executive Officer of the Company (except when the Participant in question is the Chief Executive Officer of the Company, in which case Cause shall be determined by the Board), with the concurrence of the Board and with the advice of the Company's functional leaders with expertise in such matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Change in Control**" is deemed to occur at the time (i) when any entity, person or group (other than the Company or any savings, pension or other benefit plan maintained for the benefit of the Company's employees) that theretofore beneficially owned less than 30% of the Common Stock then outstanding, acquires shares of Common Stock in a transaction, or series of transactions, which results in such entity, person or group, directly or indirectly, owning beneficially 30% or more of the outstanding Common Stock, (ii) of the purchase of shares of Common Stock pursuant to a tender offer or exchange offer (other than an offer by ADI) for all, or any part of, the Common Stock, (iii) of a merger in which ADI will not survive as an independent, publicly owned corporation, (iv) of a consolidation, or a sale, exchange or other disposition of all or substantially all of ADI's assets, (v) of a substantial change in the composition of the Board during any period of two consecutive years, such that individuals who, at the beginning of such period, were members of the Board cease for any reason to constitute at least a majority thereof, unless the election, or the nomination for election by the shareowners of ADI, of each new director was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period, or (vi) of any transaction or other event which the Committee, in its discretion, determines to be a Change in Control for purposes of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Code**" means the Internal Revenue Code of 1986, as amended from time to time.

Page 2 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Committee**" means the Compensation Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Common Stock**" means the common stock of ADI or such other stock into which the common stock may be changed as a result of split-ups, recapitalizations, reclassifications and any similar transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Company**" means ADI and its subsidiaries and affiliated entities, as well as their respective successors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Covered Termination**" means, except as provided in Section 23(c), a termination event giving rise to Severance Benefits under this Plan, as detailed in Section 7 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Determination Year**" means the calendar year with respect to which performance is measured for purposes of determining the amount of a Participant's Incentive Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**ERISA**" means the Employee Retirement Income Security Act of 1974, as amended from time to time, together with applicable final regulations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Incentive Award**" means the short-term incentive compensation award payable and determined pursuant to the Company's short-term incentive compensation plan, and shall not include any other performance or incentive award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Incentive Award Target Percentage**" means the Participant's short-term incentive compensation target percentage, as maintained in the Company's executive compensation records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Last Day of Active Employment**" means a Participant's final day of employment with the Company (typically the day prior to the date the Participant would be eligible to commence the receipt of Severance Benefits), and shall be the date on which the Participant's active employment with the Company is severed within the meaning of Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Medical Leave of Absence**" means an absence from active employment due to a Participant's inability to perform the functions of his or her job, provided that during such absence the Participant (i) is receiving short-term disability benefits, (ii) is receiving long-term disability benefits, (iii) is on a medical leave of absence granted by the Company, or (iv) any combination of (i)-(iii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Participant**" means ADI's Chief Executive Officer or a Section 16 Officer Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Pay Continuation**" means the component of the Severance Benefit described in Section 5(a)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "**Performance Year**" means the calendar year with respect to which performance is measured for purposes of determining the amount of a Participant's Prorated Bonus, if applicable.

Page 3 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Plan Administrator**" means the person defined in Section 10(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "**Pro Rata Factor**" means for the Determination Year in which a Covered Termination occurs, a fraction the numerator of which is equal to the number of days which have elapsed from January 1st of such year through the date on which the Covered Termination occurs, and the denominator of which is the total number of days in such year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "**Pro Rata Bonus Factor**" means for the Performance Year in which a Covered Termination occurs, a fraction the numerator of which is equal to the number of days which have elapsed from January 1st of such Performance Year through the date on which the Covered Termination occurs, and the denominator of which is the total number of days in such Performance Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "**Prorated Annual Incentive Compensation**" means the component of the Severance Benefit described in Section 5(a)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "**Prorated Bonus**" means the component of the Severance Benefit described in Section 5(a)(iii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "**Release**" has the meaning set forth in Section 5(b) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "**Resideo**" means Resideo Technologies, Inc., a Delaware corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "**Section 16 Officer Participant**" means an individual who is a reporting officer of ADI under Section 16 of the Securities Exchange Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "**Severance Benefit**" means the severance benefit described in Section 5(a) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "**Severance Pay Factor**" means, with respect to any Participant, the number of months of Pay Continuation to which a Participant is entitled as specified in Section 5(a)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "**Severance Period**" means the period during which a Participant is receiving Pay Continuation or, but for a lump sum payment of Pay Continuation benefits after a Change in Control in accordance with Section 24(a), would be receiving Pay Continuation.

&nbsp;&nbsp;&nbsp;&nbsp;**4.**  **<u>Participation</u>** 

A Participant shall continue to be eligible for Severance Benefits under this Plan until the earlier of (i) the date the employment relationship with the Company is severed for reasons other than a Covered Termination, or (ii) the date the Participant ceases to satisfy the definition of Participant hereunder; provided, however, any Participant who ceases to satisfy the definition of Participant hereunder on or after a Change in Control shall nevertheless continue to be a Participant in the Plan. A Participant who is at any time the subject of a Covered Termination shall continue to be a Participant until all of the benefits to which he or she is entitled under the Plan, if any, have been paid.

Page 4 of 18

&nbsp;&nbsp;&nbsp;&nbsp;**5.**  **<u>Amount and Payment of Severance Benefits</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Eligibility for Benefits</u>. Subject to subparagraphs (b) - (d) below, a Participant who is the subject of a Covered Termination shall receive the benefits described in this subparagraph (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;(i) <u>Pay Continuation</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) ADI's Chief Executive Officer shall receive a benefit in an amount equal to twenty-four (24) months of Base Salary or, following a Change in Control an amount equal to twenty-four (24) months of Base Salary plus two times his or her Annual Incentive Compensation.

&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;(B) A Section 16 Officer Participant shall receive a benefit in an amount equal to eighteen (18) months of Base Salary or, following a Change in Control, an amount equal to twenty-four (24) months of Base Salary plus two times his or her Annual Incentive Compensation.

&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) <u>Prorated Annual Incentive Compensation</u>. Following a Change in Control, a Participant shall, in respect of the year in which the Covered Termination occurs, receive an amount equal to his or her Annual Incentive Compensation (as that term is defined in Section 23(a)) multiplied by the Pro Rata Factor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Prorated Bonus</u>. Without duplication of Section 5(a)(ii) above, a Participant shall, in respect of the Performance Year in which the Covered Termination occurs, receive an amount equal to his or her Annual Base Salary multiplied by the Pro Rata Bonus Factor, with payment of such Prorated Bonus based upon actual achievement of the performance objectives for the Performance Year in which such Covered Termination occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Benefit Continuation</u>. To the extent otherwise provided in the applicable plan documents and policies, Participants shall be eligible to continue their employee benefits during the Severance Period at active employee coverage levels and active employee contribution rates, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Benefits Conditioned on Release</u>. Notwithstanding anything in this Section 5 to the contrary, all benefits under this Plan shall be provided in consideration for, and conditioned upon, (i) the execution and non-revocation of a release by the Participant of all claims, known or unknown, arising on or before the date of the release against the Company and its officers, directors and employees in the form and manner prescribed by the Company (which release may include cooperation, nondisclosure, non-competition, non-disparagement and confidentiality covenants) (the "Release"), (ii) the affirmation or initial agreement (as the case may be), in a form and manner prescribed by the Company, of the Participant's obligations under confidentiality, non-competition, non-solicitation and intellectual property covenants in favor of the Company (which affirmation/initial agreement may be made part of the Release), (iii) the repayment of any amounts due to the Company and (iv) the return by the Participant to the Company of all property of the Company, including any and all electronic devices, documents, electronic data, trade secrets, proprietary and confidential information in the Participant's possession, custody or control.

A Participant must execute all required documents, including the Release, not later than sixty (60) days after the Participant's Last Day of Active Employment. If a Participant fails to execute such documents within the required time period, the Participant shall not be entitled to receive Severance Benefits under this Plan.

Page 5 of 18

Notwithstanding anything herein to the contrary, if the period during which a Participant has to sign and revoke the Release begins in one taxable year of the Participant and ends in the Participant's subsequent taxable year, any amounts payable under the Plan will commence in the subsequent taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Suspension of Benefits</u>. The Company may, in its sole discretion, terminate or suspend all Plan benefits upon learning, or having good reason to believe, that the Participant has violated the conditions and covenants described in Section 5(b). In such case, any consideration received by a Participant prior to the date of such cessation or suspension of Plan benefits shall be considered adequate consideration for the Release and other covenants hereunder. The Company s right to suspend or terminate Plan benefits hereunder shall not preclude the Company from pursuing other remedies for such violations, including, without limitation, seeking injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Nonduplication of Benefits</u>. Any benefit determined to be payable to a Participant under this Plan shall, subject to and consistent with Code Section 409A, be reduced by the amount of any similar severance, redundancy or employment termination benefit payable to the Participant under (i) any other severance plan sponsored or funded by the Company, (ii) any agreement between the Company and the Participant, whether oral or written, express or implied, relating to termination related benefits, or (iii) any statutory or court mandated entitlement (including entitlements under foreign law), regardless of whether the benefit determined under such other plan, agreement, statutory or court mandated entitlement is payable at an earlier or a later date than payments under the Plan, it being the intention of this subparagraph (d) to protect the Company from the payment of duplicative severance, redundancy or employment termination benefits.

&nbsp;&nbsp;&nbsp;&nbsp;**6.**  **<u>Form and Timing of Benefit Payments</u>** 

Except as provided in Section 24, any Pay Continuation shall be paid in substantially equal periodic installments corresponding to the Participant's normal payroll period commencing after the Participant's Last Day of Active Employment. Any Prorated Annual Incentive Compensation shall be paid annually in accordance with the Company's normal practices with respect to the payment of incentive compensation awards. Any Prorated Bonus shall be paid at the same time annual bonuses are paid to the Company's officers in accordance with the Company's normal practices. Notwithstanding the foregoing, the Company may, at its sole discretion, delay the commencement of Severance Benefits until the Participant has executed a Release and the time period for revoking such Release, if applicable, has expired. In such case, the Company shall commence Severance Benefits upon the receipt of the Release or the expiration of the revocation period, as applicable, and any arrearages paid as part of the next payroll period.

Payment of Severance Benefits shall cease in the event a Participant (i) accepts re-employment with the Company, or (ii) commences the receipt of his or her pension benefits from a Company-sponsored defined benefit pension plan.

&nbsp;&nbsp;&nbsp;&nbsp;**7.**  **<u>Covered Terminations</u>** 

In order to be eligible for Severance Benefits under Section 5, a Participant must be the subject of a Covered Termination. A Covered Termination generally means an involuntary termination of employment initiated by the Company. In no event, however, shall the following events constitute a Covered Termination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an involuntary termination for Cause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the death of a Participant during active employment;

Page 6 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Participant's failure to timely return to work upon expiration of an authorized leave of absence. Such a Participant will be treated as having voluntarily resigned from the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a termination of employment initiated as a result of a Participant's refusal to accept a transfer to another Company location; provided, however, a Participant whose employment is terminated within two (2) years following a Change in Control solely as a result of his or her refusal to transfer to another Company location that is more than 50 miles from his or her work location immediately prior to a Change in Control shall be treated as having been subject to a Covered Termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in the case of a sale or other disposition of the Participant's subsidiary, division or other business unit or operation, a termination of employment initiated as a result of a Participant's refusal to accept an offer of employment with the successor entity; provided, however, in such case a Covered Termination shall be deemed to have occurred only if the Participant is not offered substantially comparable employment with the successor entity, as determined by the Plan Administrator, in its sole discretion. Notwithstanding the preceding sentence, a Participant whose employment is terminated within two (2) years following a Change in Control solely as a result of his or her refusal to accept employment with the successor entity at a location that is more than 50 miles from his or her work location immediately prior to a Change in Control shall be treated as having been subject to a Covered Termination; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) if the Participant does not return to active employment within eighteen (18) months of commencing a Medical Leave of Absence; provided, however, if a Participant is medically cleared to return to work (with documentation reasonably acceptable to the Company) before the conclusion of such eighteen (18) month period and is ready and willing to do so but does not return to active employment because (i) no comparable job for which the Participant is qualified is available, or (ii) such Participant is unable to locate another comparable Company position within thirty (30) days following his or her return to work, then such Participant shall be treated as having been subject to a Covered Termination

&nbsp;&nbsp;&nbsp;&nbsp;**8.**  **<u>Forfeiture of Benefits</u>** 

Notwithstanding anything in the Plan to the contrary and except as provided in Section 24(b) or Section 31(c), the Company reserves the right in its sole and absolute discretion to cancel all benefits under this Plan in the event a Participant engages in any activity that the Company considers detrimental to its interests, as determined by ADI's General Counsel or [SVP, Human Resources], or their delegees. Activities that the Company considers detrimental to its interests include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any effort on the part of a Participant, either directly or indirectly, to recruit or solicit employees of the Company for employment with another company without the written approval of ADI's [SVP, Human Resources], or his or her delegee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any effort on the part of a Participant, either directly or indirectly, to recruit or solicit customers of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the disclosure of any Company confidential or proprietary information, or the breach of any obligations under the Participant's agreements relating to intellectual property and confidential information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any intentional misconduct substantially damaging to the property or business of the Company;

Page 7 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the commission of a fraud or misappropriation of property, proprietary information, intellectual property or trade secrets of the Company for personal gain or for the benefit of another party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) knowingly making false or misleading statements about the Company or its products, officers or employees to competitors or customers or potential customers of the Company, or to current or former employees of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) a Participant's holding himself or herself out as an active employee of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) breaching any of the terms of the Release or any IP, confidentiality or noncompetition agreement or covenant.

&nbsp;&nbsp;&nbsp;&nbsp;**9.**  **<u>Payment of Benefits Upon Death</u>** 

If a Participant dies after signing and returning the Release, without revoking the Release, and before all Severance Benefits have been paid, the balance of such payments will be paid to the Participant' s estate in a lump sum within sixty (60) days following the Participant' s death.

&nbsp;&nbsp;&nbsp;&nbsp;**10.**  **<u>Administration</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Plan Administration</u>. Except as provided in Section 25, the Plan shall be administered by the Plan Administrator, who shall have the powers and authorities as described in this Section 10. The Plan Administrator shall be the Company's [SVP, Human Resources], or his or her designee.

The Plan Administrator shall serve without additional compensation. The Plan Administrator shall keep or cause to be kept such records and shall prepare or cause to be prepared such returns or reports as may be required by law or necessary for the proper administration of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Powers and Duties of Plan Administrator</u>. The Plan Administrator shall have the full discretionary power and authority to (i) construe and interpret the Plan (including, without limitation, supplying omissions from, correcting deficiencies in, or resolving inconsistencies or ambiguities in, the language of the Plan); (ii) determine all questions of fact arising under the Plan, including questions as to eligibility for and the amount of benefits; (iii) establish such rules and regulations (consistent with the terms of the Plan) as it deems necessary or appropriate for administration of the Plan; (iv) delegate responsibilities to others to assist it in administering the Plan; and (v) perform all other acts it believes reasonable and proper in connection with the administration of the Plan. The Plan Administrator shall be entitled to rely on the records of the Company in determining any Participant's entitlement to, and the amount of, Severance Benefits under the Plan. Any determination of the Plan Administrator, including interpretations of the Plan and determinations of questions of fact, shall be final and binding on all parties.

The Plan Administrator may retain attorneys, consultants, accountants or other persons (who may be employees of the Company) to render advice and assistance and may delegate any of the authorities conferred on him under this Plan to such persons as he shall determine to be necessary to effect the discharge of his or her duties hereunder. The Plan Administrator, the Company and its officers and directors shall be entitled to rely upon the advice, opinions and determinations of any such persons. Any exercise of the authorities set forth in this Section 10, whether by the Plan Administrator or his or her delegee, shall be final and binding upon the Company and all Participants.

Page 8 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Additional Discretionary Authority</u>. The Plan Administrator may, in his or her sole and absolute discretion, waive the requirement that a Participant execute a Release or confidentiality, non-competition, non-disparagement, non-solicitation and intellectual property covenants in order to receive Severance Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification</u>. To the extent permitted by law, the Company shall indemnify the Plan Administrator from all claims for liability, loss, or damage (including payment of expenses in connection with defense against such claims) arising from any act or failure to act in connection with the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;**11.**  **<u>Claims and Appeals Procedures</u>** 

Except as provided in Section 25, the Plan's benefit claims and appeals procedures shall be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any request or claim for Plan benefits shall be deemed to be filed when a written request is made by the claimant or the claimant s authorized representative that is reasonably calculated to bring the claim to the attention of the Plan Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Plan Administrator, or his or her designee, shall respond, in writing, to any claimant s claim for benefits under the Plan. Such response shall be provided within 90 days of its receipt by the Plan Administrator or, if special circumstances require and the claimant is so notified, in writing, before the expiration of the initial 90-day period, within 180 days of its receipt by the Plan Administrator. If the extension is necessary because the claimant has failed to submit the information necessary to decide the claim, the Plan Administrator's period for responding to such claim shall be tolled until the date that the claimant responds to the request for additional information. The response shall be written in a manner calculated to be understood by the claimant and shall, in the case of an adverse benefit determination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) set
forth the specific reasons for the adverse benefit determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) contain
specific references to Plan provisions relative to the adverse benefit determination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) describe
any material and information, if any, necessary for the claim for benefits to be perfected, and an explanation of why such material or
information is necessary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) advise
the claimant that any appeal of an adverse benefit determination must be made, in writing, to the Plan Administrator within 60 days after
receipt of such adverse benefit determination, and must set forth the facts upon which the appeal is based.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the claimant fails to appeal the Plan Administrator's adverse benefit determination, in writing, within 60 days after its receipt by the claimant (or within 60 days after a deemed denial of the claim), the Plan Administrator's determination shall become final and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the claimant appeals the Plan Administrator's adverse benefit determination in a timely fashion, the Plan Administrator shall re-examine all issues relevant to the original denial of benefits. Any such claimant or his or her duly authorized representative may review any pertinent documents and records, including documents and records that were relied upon in making the benefit determination, documents submitted, considered or generated in the course of making the benefit determination (even if such documents were not relied upon in making the benefit determination), and documents that demonstrate compliance, in making the benefit determination, with the Plan's required administrative processes and safeguards. In addition, the claimant or his or her duly authorized representative may submit, in writing, any documents, records, comments or other information relating to such claim for benefits. In the course of his or her review, the Plan Administrator shall take into account all comments, documents, records and other information submitted by the claimant or his or her duly authorized representative relating to such claim, regardless of whether it was submitted or considered as part of the initial benefit determination.

Page 9 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Plan Administrator shall advise the claimant and such claimant's representative, in writing, of its decision within 60 days of receipt of the written appeal, unless special circumstances require an extension of such 60-day period for not more than an additional 60 days. Where such extension is necessary, the claimant shall be given written notice of the delay before the expiration of the initial 60-day period, which notice shall set forth the reasons for the delay and the date the Plan Administrator expects to render its decision. In the event of an adverse benefit determination on appeal, the Plan Administrator shall advise the claimant, in a manner calculated to be understood by the claimant, of (i) the specific reasons for the adverse benefit determination, and (ii) the specific Plan provisions on which the adverse benefit determination was based. The Plan Administrator's written notice will advise the claimant of his or her right to receive, upon request and free of charge, copies of all documents, records and other information relevant to such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event of an adverse benefit determination after the Plan Administrator's review, the claimant's sole remedy shall be to file an action in court.

The Plan's claims procedures do not create any independent rights to Plan benefits. A current or former Participant who files a claim for Plan benefits must satisfy all Plan requirements, including the requirements of Section 5(b), in order to be entitled to benefits.

&nbsp;&nbsp;&nbsp;&nbsp;**12.**  **<u>Time Period for Filing a Claim or a Lawsuit Against the Plan, the Company or Plan Fiduciaries; Restrictions on Venue</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any claim for Plan benefits must be filed in writing with the Plan Administrator within sixty (60) days after the current or former Participant knew or should have known of his or her putative right to Plan benefits. However, in no event will any claim be considered timely if it is filed more than one hundred eighty (180) days after the date a current or former Participant s employment with the Company is terminated. Requests or claims submitted more than sixty (60) days after a current or former Participant knew or should have known of his or her potential right to Plan benefits, or one-hundred eighty (180) days after the date his or her employment with the Company is terminated, are deemed waived by the claimant and considered time-barred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any lawsuit against the Plan, the Company, the Plan Administrator, or any other Plan fiduciary, must be filed no later than the six (6) month anniversary of the following, as applicable: (i) the date the claim or appeal is denied by the Plan Administrator, or (ii) the date the claimant knows, or should reasonably know, that the claim has been, or is treated as being, denied (e.g., if the claim, or the appeal in the case of an adverse benefit determination, is not denied within the time limits described in Section 11 above).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any action in connection with the Plan must be filed in the Federal District Court for the District of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;**13.**  **<u>Unfunded Obligation</u>** 

All benefits payable under this Plan shall constitute an unfunded obligation of the Company. Payments shall be made, as due, from the general funds of the Company. This Plan shall constitute solely an unsecured promise by the Company to pay severance benefits to Participants to the extent provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;**14.**  **<u>Inalienability of Benefits</u>** 

No Participant shall have the power to transfer, assign, anticipate, mortgage or otherwise encumber any rights or any amounts payable under this Plan; nor shall any such rights or amounts payable under this Plan be subject to seizure, attachment, execution, garnishment or other legal or equitable process, or for the payment of any debts, judgments, alimony, or separate maintenance, or be transferable by operation of law in the event of bankruptcy, insolvency, or otherwise. In the event a person who is receiving or is entitled to receive benefits under the Plan attempts to assign, transfer or dispose of such right, or if an attempt is made to subject such right to such process, such assignment, transfer or disposition shall be null and void.

Page 10 of 18

&nbsp;&nbsp;&nbsp;&nbsp;**15.**  **<u>Withholding</u>** 

The Company shall have the right to withhold any taxes required to be withheld with respect to any benefits due under this Plan, as determined by the Company in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;**16.**  **<u>Amendment or Termination</u>** 

Except to the extent otherwise provided in Section 26, ADI reserves the right to amend or terminate the Plan at any time without prior notice to or the consent of any employee. No amendment or termination shall adversely affect the rights of any Participant whose employment terminated prior to such amendment or termination. However, except as provided in Section 26, any Participant whose employment continues after amendment of the Plan shall be governed by the terms of the Plan as so amended. Any Participant whose employment continues after termination of the Plan shall have no right to a benefit under the Plan. Any amendment or termination of the Plan must comply with all applicable legal requirements including, without limitation, compliance with Code Section 409A, securities, tax or other laws, rules, regulations or regulatory interpretations thereof that apply to the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;**17.**  **<u>Plan Not a Contract of Employment</u>** 

Nothing contained in this Plan shall give an employee the right to be retained in the employment of the Company. This Plan is not a contract of employment between the Company and any employee.

&nbsp;&nbsp;&nbsp;&nbsp;**18.**  **<u>Action by the Company</u>** 

Unless expressly indicated to the contrary herein, any action required to be taken by an entity may be taken by action of its governing body or by any appropriate officer or officers traditionally responsible for such determination or actions, or such other individual or individuals as may be designated by such governing body, officer or employee.

&nbsp;&nbsp;&nbsp;&nbsp;**19.**  **<u>Governing Law</u>** 

The Plan is an employee welfare benefit plan within the meaning of Section 3(1) of ERISA and will be construed in accordance with the provisions of ERISA and the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;**20.**  **<u>Severability</u>** 

If any provision of this Plan (other than Section 5(b)) shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts of this Plan, but this Plan shall be construed and enforced as if said illegal or invalid provision had never been included herein. If Section 5(b) shall be held illegal or invalid for any reason, said illegality or invalidity shall nullify the remainder of this Plan with respect to the affected Participants.

&nbsp;&nbsp;&nbsp;&nbsp;**21.**  **<u>Code Section 409A; Section 280G</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any provision of the Plan to the contrary, if required by Code Section 409A and if a Participant is a "Specified Employee" (as defined below), no benefits shall be paid under this Plan during the "Postponement Period" (as defined below). If a Participant is a Specified Employee and payment of benefits is required to be delayed for the Postponement Period under Code Section 409A, the accumulated amounts withheld on account of Code Section 409A shall be paid in a lump sum payment within 30 days after the end of the Postponement Period and no interest or other adjustment shall be made for the delayed payment. If the Participant dies during the Postponement Period prior to the payment of benefits, the amounts withheld on account of Code Section 409A shall be paid to the Participant's estate within sixty (60) days after the Participant's death.

Page 11 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Plan is intended to meet the requirements of the "short-term deferral" exception, the "separation pay" exception and other exceptions under Code Section 409A. Notwithstanding anything in the Plan to the contrary, if required by Code Section 409A, payments may only be made under this Plan upon an event and in a manner permitted by Code Section 409A, to the extent applicable. For purposes of Code Section 409A, the right to a series of payments under the Plan shall be treated as a right to a series of separate payments. All reimbursements and in-kind benefits provided under the Plan shall be made or provided in accordance with the requirements of Code Section 409A, including, where applicable, the requirement that (i) any reimbursement is for expenses eligible for reimbursement during the period of time specified in the Plan; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits provided in any other calendar year; (iii) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred; and (iv) the right to reimbursement or in-kind benefit is not subject to liquidation or exchange for another benefit. In no event may a Participant designate the year of payment for any amounts payable under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding any provision of the Plan to the contrary, any payments of Severance Benefits under this Plan that (i) are, or may be, deferred compensation subject to Code Section 409A ("409A Severance Benefits"), and (ii) are subject to a Release, where the period for execution and non-revocation of the Release spans more than one calendar year, any payment of 409A Severance Benefits that is contingent on the execution of the Release shall not be paid until the second calendar year, or later if required by the applicable terms of the Plan. In no event may a Participant, either directly or indirectly, designate the calendar year of payment of any 409A Severance Benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of this Section 21, the following definitions apply:

&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) "Specified Employee" means a Participant who, at any time during the 12-month period ending on the identification date, is a "specified employee" under Code Section 409A, as determined by the Vice President – Total Rewards (or his or her delegee), which determination of "specified employees," including the number and identity of persons considered "specified employees" and identification date, shall be made by the Vice President – Total Rewards (or his or her delegee) in accordance with the provisions of Code Sections 416(i) and 409A.

&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) "Postponement Period" means, for a Specified Employee, the period of six months after the Specified Employee's Last Day of Active Employment (or such other period as may be required by Code Section 409A) during which deferred compensation may not be paid to the Specified Employee under Code Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything in this Plan to the contrary, if any payment or distribution to a Participant pursuant to this Plan or otherwise (a "Payment") would (i) constitute a "parachute payment" within the meaning of Section 280G of the Code, and the regulations and ruling promulgated thereunder, ("Code Section 280G") and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), then such Payment shall either be (A) delivered in full or (B) delivered as to such lesser extent as would result in no portion of such Payment being subject to the Excise Tax, whichever of the foregoing amounts, after taking into account the applicable federal, state and local income taxes and the Excise Tax, results in the receipt by the Participant on an after-tax basis of the largest payment, notwithstanding that all or some portion of the Payment may be taxable under Section 4999 of the Code. The accounting firm engaged by the Company for general audit purposes as of the date prior to the effective date of the Change in Control, or such other person or entity as determined by the Company, shall perform the foregoing calculations and the Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. Any determinations of the accounting firm made pursuant to this section shall be final, binding and conclusive upon all parties. Any reduction in payments and/or benefits pursuant to the foregoing shall be made in accordance with Code Section 409A in the following order: (1) Payments that do not constitute "nonqualified compensation" subject to Code Section 409A shall be reduced first; and (2) all other Payments shall then be reduced as follows: (w) reduction of cash payments; (x) cancellation of accelerated vesting of equity awards other than stock options, if any; (y) cancellation of accelerated vesting of stock options; and (z) reduction of other benefits payable to the Participant.

Page 12 of 18

**PART II**

**SPECIAL PROVISIONS THAT BECOME EFFECTIVE**

**ONLY UPON CHANGE IN CONTROL**

&nbsp;&nbsp;&nbsp;&nbsp;**22.**  **<u>Applicability</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The provisions of this Part II become effective upon a Change in Control and, in addition to the provisions of Part I that are not superseded by provisions of this Part II, shall control (i) the determination of eligibility for, the amount of, and the time of payment of benefits under the Plan to any Participant who is the subject of a Covered Termination that occurs within the two (2) year period following the Change in Control, and (ii) the terms of payment for any Participant whose Severance Period extends beyond the Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It is intended that this Part II will assure that Participants will not be adversely affected by the unique circumstances that may exist following a Change in Control. The provisions of this Part II will have no effect whatsoever prior to a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;**23.**  **<u>Definitions</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Annual Incentive Compensation**" means, notwithstanding the provisions of Section 3(c), the product of (i) Annual Base Salary, and (ii) the greater of (A) the Incentive Award Target Percentage for the most recent Determination Year ended prior to the Change in Control, or (B) the average of the Incentive Award Target Percentages applied in determining the Participant's Incentive Award in the last three Determination Years prior to the date of Covered Termination (or such lesser period as the Participant may have been employed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Cause**" has the same meaning as under Part I; provided, however, in the case of a determination under Part II of the Plan, Cause shall be determined by the New Plan Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Covered Termination**" means, in addition to the circumstances described in Section 3(l), a severance of the employment relationship at the initiative of a Participant for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Good Reason**" means any one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A
material change in the Participant's position, duties and/or responsibilities as they existed in the period immediately preceding
the Change in Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any
significant reduction in the Participant's Base Salary or Annual Incentive Compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any
significant reduction in the economic value of awards granted under any Company long-term incentive plans in which the Participant participated
prior to a Change in Control, or the successors thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any
geographic relocation of the Participant's position to a new location that is more than fifty (50) miles from the location of the
Participant's position immediately prior to a Change in Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Any
action by the Company that, under applicable law, constitutes constructive discharge; or

Page 13 of 18

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The
failure of any ADI Employer that is a successor to the Company (whether direct or indirect, by purchase, merger, consolidation or otherwise)
to expressly assume and agree to honor this Plan, if such assumption is legally required to make this Plan enforceable against the successor.

For purposes of this Section 23(d), the term "significant reduction" shall mean a reduction or series of reductions with respect to the same form of benefit or remuneration that are greater than 10%, or which do not affect substantially all persons covered by the plan or program in question.

Notwithstanding the foregoing, Good Reason shall not be deemed to have occurred unless the Participant provides written notice to ADI identifying the event or omission constituting the reason for a Good Reason termination within ninety (90) days following the first occurrence of such event or omission. Within thirty (30) days after such notice has been provided to ADI, ADI shall have the opportunity, but shall have no obligation, to cure such event or conditions that give rise to a Good Reason termination. If ADI fails to cure the events or conditions giving rise to a Participant's Good Reason termination by the end of the thirty (30) day cure period, the Participant's employment shall be terminated effective as of the expiration of such thirty (30) day cure period unless the Participant has withdrawn such Good Reason termination notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**ADI Employer**" means the Company and any other person, organization or entity that agrees in writing to be bound by the terms of the Plan for a period of time that extends at least through the two-year period following a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**New Plan Administrator**" shall mean such person or persons appointed pursuant to Section 25 to administer the Plan upon the occurrence of a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;**24.**  **<u>Benefit Payments and Forfeitures</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Benefit Payments</u>. Notwithstanding the provisions of Section 6, benefits that are determined to be payable to a Participant under Sections 5(a)(i) and 5(a)(ii) on or after a Change in Control shall be paid within thirty (30) days following the later of the Change in Control or the Covered Termination, in a single payment equal to the sum of (i) the total amount of the benefit remaining payable under Section 5(a)(i), and (ii) the amount of the benefit payable under Section 5(a)(ii); provided, however, that the single lump sum payment pursuant to this Section will only be paid if the Change in Control constitutes a "change in control event" under Section 409A of the Code. Otherwise, the payment shall be paid (or continue to be paid, if in pay status) in the same form and at the same times as provided under Section 5(a). The requirements of Section 5(b) shall have no application to benefits payable after a Change in Control. If any benefit is paid later than the time provided in this Section 24(a), such late payment shall be credited with interest for the period from the date payment should have been made to the date actually made at a rate equal to the average quoted rate for three-month U.S. Treasury Bills for the week preceding the date of payment, as determined by the New Plan Administrator, plus six percentage points.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Forfeiture of Benefits</u>. Notwithstanding the provisions of Section 8, a Participant receiving benefits or entitled to receive benefits under the Plan shall cease to receive such benefits under the Plan and the right to receive any benefits in the future under the Plan shall be forfeited, in the event the Participant, as determined by the New Plan Administrator, (i) is convicted of a felony committed against an ADI Employer, its property or business, (ii) commits any fraud or misappropriates property, proprietary information, intellectual property or trade secrets of an ADI Employer for personal gain or for the benefit of another party, or (iii) violates the terms of any restrictive covenant agreement with ADI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Benefits Conditioned on Release</u>. Section 5(b) is hereby incorporated by reference.

Page 14 of 18

&nbsp;&nbsp;&nbsp;&nbsp;**25.**  **<u>Administration</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>New Plan Administrator</u>. On or before a Change in Control, the Company shall appoint a person independent of the Company to be the New Plan Administrator upon the occurrence of a Change in Control and the Plan Administrator shall provide to the New Plan Administrator such information with respect to each Participant in the Plan as shall be necessary to enable the New Plan Administrator to determine the amount of is the Severance Benefits that are then, or may thereafter become, payable to such Participants. Upon a Change in Control, the New Plan Administrator shall have the authority vested in the Plan Administrator under Section 10(b), and claims for benefits shall be subject to the claims and appeals procedures outlined in Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Attorneys' Fees and Costs</u>. If a Participant is paid or is determined to be entitled to receive benefits by a court of competent jurisdiction, the ADI Employer shall immediately pay or reimburse the affected Participant for the full amount of any attorneys' fees and other expenses the affected Participant incurred in pursuing his or her claim for benefits, including claims incurred during the claims and appeals portion of the process. The payment or reimbursement shall include the reasonable hourly rates charged by the Participant's attorneys, any and all other expenses related to the action incurred by or on behalf of the affected Participant, the costs and expenses of any experts utilized to prepare the claim, and any court costs assessed against the affected Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Declaratory Judgment</u>. Participants may bring a claim under this Section 25 to assert the existence of Good Reason conditions that would enable a Participant to trigger his or her own termination under this Part II without resigning his or her position with the ADI Employer.

&nbsp;&nbsp;&nbsp;&nbsp;**26.**  **<u>Amendment or Termination</u>** 

This Plan may not be amended or terminated after a Change in Control; *provided, however*, the Plan may be amended if the purpose of the amendment is to increase benefits hereunder or if the purpose of the amendment is to comply with Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;**27.**  **<u>No Waiver</u>** 

No waiver by a Participant at any time of any breach by an ADI Employer of, or of any lack of compliance with, any condition or provision of this Plan to be performed by the ADI Employer shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. In no event shall the failure by a Participant to assert any right under the Plan (including, but not limited to, failure to assert the existence of Good Reason conditions that would enable a Participant to trigger his or her own termination under this Part II) be deemed a waiver of such right or any other right provided under the Plan, it being intended that a Participant who has perfected a right under the Plan (including, but not limited to, a Participant's right to trigger his or her own Good Reason termination under this Part II) shall be entitled to assert that right in accordance with the terms of the Plan unless the Participant affirmatively elects, in writing, to waive such right.

&nbsp;&nbsp;&nbsp;&nbsp;**28.**  **<u>Company Policies</u>** 

All benefits granted under the Plan shall be subject to any applicable clawback or recoupment policies, share trading policies and other policies that may be implemented by the Board of Directors from time to time, including such policies set forth in the Company's Corporate Governance Guidelines, as such policies may be amended from time to time, subject to and consistent with Section 409A of the Code.

Page 15 of 18

**PART III**

**SPECIAL PROVISIONS APPLICABLE TO**

**FORMER OFFICERS OF RESIDEO TECHNOLOGIES, INC.**

&nbsp;&nbsp;&nbsp;&nbsp;**29.**  **<u>Applicability</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The provisions of this Part III apply to Former Resideo Officers effective as of the Divestiture. In addition to the provisions of Part I that are not superseded by provisions of this Part III, the provisions of this Part III shall control the determination of eligibility for, the amount of, and the time of payment of benefits under the Plan to any Former Resideo Officer who is the subject of a Covered Termination that occurs within the eighteen (18) month period following the Divestiture. For avoidance of doubt, all terms used in this Part III shall have the meanings set forth in Part II and Part I of the Plan to the extent defined in Part II and Part I of the Plan otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It is intended that this Part III will assure that Former Resideo Officers will not be adversely affected by the unique circumstances that may exist following the Divestiture. The provisions of this Part III will have no effect whatsoever prior to the Divestiture.

&nbsp;&nbsp;&nbsp;&nbsp;**30.**  **<u>Definitions</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **"Divestiture**" means the transaction or series of related transactions pursuant to which ADI became an independent publicly traded company upon the effective date of ADI's Registration Statement on Form 10 filed with the Securities and Exchange Commission in connection with the distribution of its shares of common stock to Resideo's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Divestiture Equity Acceleration Benefits**" means with respect to any award under the Stock Incentive Plan held by a Former Resideo Officer as of the date of such Former Resideo Officer's Covered Termination that is unvested and (i) subject only to time-based vesting conditions, the full accelerated vesting of such awards and (ii) subject to any performance-based vesting conditions, the full accelerated vesting of such awards, based on target performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Former Resideo Officer**" means a Participant, who was covered by the Resideo Plan prior to the Divestiture, and becomes actively employed by ADI in connection with the Divestiture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Good Reason**" has the meaning set forth in Section 23(d); *provided, that*, for purposes of determining whether a Covered Termination has occurred under this Part III, clause (iv) of Section 23(d) shall not apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Resideo Plan**" means the Resideo Technologies, Inc. Severance Plan for Designated Officers, effective July 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Stock Incentive Plan**" means the Stock Incentive Plan of ADI and its Affiliates as may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The definitions set forth in Part II as used in this Part III, shall be construed by replacing each reference to "Change in Control" with "Divestiture," and each reference to "Participant" with "Former Resideo Officer" and shall otherwise be construed to apply to the provisions in this Part III, *mutatis mutandis*.

Page 16 of 18

&nbsp;&nbsp;&nbsp;&nbsp;**31.**  **<u>Amount and Payment of Benefits</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Eligibility for Benefits</u>. Notwithstanding any provision in the Plan to the contrary, in the event that a Former Resideo Officer experiences a Covered Termination at any time within the eighteen (18) month period following the Divestiture, such Former Resideo Officer shall be entitled to (i) the Divestiture Equity Acceleration Benefits and (ii) the benefits that are determined to be payable under Section 5(a); provided, that, solely for purposes of this Section 31(a), each reference in Section 5(a) to "Change in Control" shall be deemed to mean the Divestiture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Form and Timing of Benefit Payments</u>. The form and timing of any benefits determined in accordance with Section 31(a) shall be paid to such Former Resideo Officer in accordance with Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Forfeiture of Benefits</u>. Notwithstanding the provisions of Section 8, a Former Resideo Officer receiving benefits or entitled to receive benefits under the Plan shall cease to receive such benefits under the Plan and the right to receive any benefits in the future under the Plan shall be forfeited, in the event the Former Resideo Officer, as determined by the Plan Administrator, (i) is convicted of a felony committed against an ADI Employer, its property or business, (ii) commits any fraud or misappropriates property, proprietary information, intellectual property or trade secrets of an ADI Employer for personal gain or for the benefit of another party, or (iii) violates the terms of any restrictive covenant agreement with ADI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Benefits Conditioned on Release</u>. Section 5(b) is hereby incorporated by reference.

&nbsp;&nbsp;&nbsp;&nbsp;**32.**  **<u>Administration</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Attorneys' Fees and Costs</u>. If a Former Resideo Officer is paid or is determined to be entitled to receive benefits by a court of competent jurisdiction, the ADI Employer shall immediately pay or reimburse the affected Former Resideo Officer for the full amount of any attorneys' fees and other expenses the affected Former Resideo Officer incurred in pursuing his or her claim for benefits, including claims incurred during the claims and appeals portion of the process. The payment or reimbursement shall include the reasonable hourly rates charged by the Former Resideo Officer's attorneys, any and all other expenses related to the action incurred by or on behalf of the affected Former Resideo Officer, the costs and expenses of any experts utilized to prepare the claim, and any court costs assessed against the affected Former Resideo Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Declaratory Judgment</u>. Former Resideo Officers may bring a claim under this Section 32 to assert the existence of Good Reason conditions that would enable a Former Resideo Officer to trigger his or her own termination under this Part III without resigning his or her position with the ADI Employer.

&nbsp;&nbsp;&nbsp;&nbsp;**33.**  **<u>Amendment or Termination</u>** 

This Part III may not be amended, terminated or discontinued; provided, however, that this Part III may be amended if the purpose of the amendment is to increase benefits hereunder, comply with Section 409A of the Code or conform the administrative provisions hereof to applicable law, as determined by counsel to be so required. This Part III shall automatically terminate at the end of the eighteen (18) months period following the Divestiture; provided, however, this Part III shall continue in effect for as long as is required to provide eligibility for and payment or provision of benefits in accordance with the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;**34.**  **<u>Miscellaneous</u>** 

Sections 27 and 28 in Part II of the Plan are hereby incorporated by reference, *mutatis mutandis*.

Page 17 of 18

IN WITNESS WHEREOF, the undersigned has caused this instrument to be executed by its duly authorized officer.

Dated: [DATE], 2026

---

| | |
|:---|:---|
| ADI GLOBAL DISTRIBUTION INC. | ADI GLOBAL DISTRIBUTION INC. |
| By: |  |
| Its: | EVP, General Counsel |

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Page 18 of 18

## Exhibit 10.16

**Exhibit 10.16**

**REGISTRATION RIGHTS AGREEMENT**

**of**

**ADI GLOBAL DISTRIBUTION INC.**

**dated as of [●], 2026**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | Page |
| 1. | Definitions | 1 |
| 2. | Registration Rights | 5 |
| (a) | &nbsp;&nbsp;&nbsp;Shelf Registration | 5 |
| (b) | &nbsp;&nbsp;&nbsp;Shelf Takedowns | 5 |
| (c) | &nbsp;&nbsp;&nbsp;Cooperation with Shelf Takedowns | 6 |
| (d) | &nbsp;&nbsp;&nbsp;Automatic Shelf Registration Statements | 6 |
| (e) | &nbsp;&nbsp;&nbsp;Demand Rights | 7 |
| (f) | &nbsp;&nbsp;&nbsp;Effectiveness of Demand Registration | 7 |
| (g) | &nbsp;&nbsp;&nbsp;Continued Effectiveness | 7 |
| (h) | &nbsp;&nbsp;&nbsp;Priority on Demand Registration or Shelf Takedown | 8 |
| (i) | &nbsp;&nbsp;&nbsp;Postponements in Requested Registrations | 8 |
| (j) | &nbsp;&nbsp;&nbsp;Registration Expenses | 9 |
| (k) | &nbsp;&nbsp;&nbsp;Selection of Underwriters | 9 |
| (l) | &nbsp;&nbsp;&nbsp;Inclusion of After-Acquired Registrable Securities | 10 |
| 3. | Piggyback Restrictions | 10 |
| (a) | &nbsp;&nbsp;&nbsp;Right to Piggyback | 10 |
| (b) | &nbsp;&nbsp;&nbsp;Underwritten Registration | 11 |
| (c) | &nbsp;&nbsp;&nbsp;Piggyback Registration Expenses | 11 |
| (d) | &nbsp;&nbsp;&nbsp;Priority on Primary Registrations | 11 |
| (e) | &nbsp;&nbsp;&nbsp;Priority on Secondary Registrations | 11 |
| 4. | Registration Procedures | 12 |
| 5. | Indemnification | 17 |
| (a) | &nbsp;&nbsp;&nbsp;Indemnification by the Company | 17 |
| (b) | &nbsp;&nbsp;&nbsp;Indemnification by CD&R Stockholder of Registrable Securities | 18 |
| (c) | &nbsp;&nbsp;&nbsp;Conduct of Indemnification Proceedings | 18 |
| (d) | &nbsp;&nbsp;&nbsp;Contribution | 19 |
| (e) | &nbsp;&nbsp;&nbsp;Non-Exclusivity | 19 |
| 6. | Registration Expenses | 20 |
| 7. | Rule 144 | 21 |
| 8. | Miscellaneous | 21 |
| (a) | &nbsp;&nbsp;&nbsp;Termination | 21 |
| (b) | &nbsp;&nbsp;&nbsp;Holdback Agreement | 21 |
| (c) | &nbsp;&nbsp;&nbsp;Amendments and Waivers | 22 |
| (d) | &nbsp;&nbsp;&nbsp;Successors, Assigns and Transferees | 22 |
| (e) | &nbsp;&nbsp;&nbsp;Notices | 23 |
| (f) | &nbsp;&nbsp;&nbsp;Further Assurances | 24 |
| (g) | &nbsp;&nbsp;&nbsp;No Inconsistent Agreements | 24 |
| (h) | &nbsp;&nbsp;&nbsp;Entire Agreement; No Third Party Beneficiaries | 24 |
| (i) | &nbsp;&nbsp;&nbsp;Governing Law; Jurisdiction and Forum; Waiver of Jury Trial | 24 |
| (j) | &nbsp;&nbsp;&nbsp;Severability | 25 |
| (k) | &nbsp;&nbsp;&nbsp;Enforcement | 25 |
| (l) | &nbsp;&nbsp;&nbsp;Titles and Subtitles | 25 |
| (m) | &nbsp;&nbsp;&nbsp;No Recourse | 25 |
| (n) | &nbsp;&nbsp;&nbsp;Limitations on Subsequent Registration Rights | 25 |
| (o) | &nbsp;&nbsp;&nbsp;Counterparts; Facsimile Signatures | 25 |

---

Exhibit A — Form of Certificate of Designations, Preferences and Rights of Series A Cumulative Convertible Participating Preferred Stock

- i -

This REGISTRATION RIGHTS AGREEMENT (this "<u>Agreement</u>") is entered into as of [●], 2026, by and among ADI Global Distribution Inc., a Delaware corporation (the "<u>Company</u>"), CD&R Channel Holdings, L.P., a Cayman Islands exempted limited partnership ("<u>CD&R Investor I</u>"), CD&R Channel Holdings II, L.P. ("<u>CD&R Investor II</u>" and together with CD&R Investor I, each, a "<u>CD&R Investor</u>" and together, the "<u>CD&R Investors</u>") and any Person who becomes a party hereto pursuant to <u>Section‎ 8(d)</u> (each such party and each CD&R Investor, a "<u>CD&R Stockholder</u>" and collectively, the "<u>CD&R Stockholders</u>"). Capitalized terms used herein shall have the meaning assigned to such terms in the text of this Agreement or in <u>Section ‎1</u>.

WHEREAS, on or prior to the date hereof, the Company has adopted and filed with the Secretary of State of the State of Delaware the Certificate of Designations, Preferences and Rights of Series A Cumulative Convertible Participating Preferred Stock in the form attached hereto as <u>Exhibit A</u> (the "<u>Certificate of Designations</u>") in order to create a series of preferred stock, par value $0.001 per share, designated as Series A Cumulative Convertible Participating Preferred Stock (the "<u>Preferred Stock</u>");

WHEREAS, pursuant to the Exchange Agreement, dated as of the date hereof, by and among the Company, CD&R Investor I and the other party named therein (as such agreement may be amended from time to time, the "<u>Exchange Agreement</u>"), CD&R Investor I exchanged certain of the shares of Series A Cumulative Convertible Participating Preferred Stock of Resideo Technologies, Inc., par value $0.001 per share, held by it for [__] shares of Preferred Stock;

WHEREAS, pursuant to the Certificate of Designations, the Preferred Stock may be converted into a certain number of shares of Common Stock, on the terms and subject to certain conditions specified in the Certificate of Designations;

WHEREAS, CD&R Investor II is receiving shares of Common Stock of the Company in connection with the spin-off of the Company from Resideo Technologies, Inc. and

WHEREAS, the Company desires to provide to the CD&R Stockholders rights to registration under the Securities Act of Registrable Securities, on the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual promises hereinafter set forth, the parties hereto agree as follows:

<u>AGREEMENT</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. As used in this Agreement, the following capitalized terms shall have the following respective meanings:

"<u>Affiliate</u>" means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with, such person.

"<u>Agreement</u>" has the meaning given to such term in the Preamble.

"<u>Automatic Shelf Registration Statement</u>" has the meaning given to such term in <u>Section ‎2(d)</u>.

"<u>Block Sale</u>" means the sale of shares of Common Stock to one or several purchasers in a registered transaction by means of a bought deal, a block trade or a direct sale.

"<u>Business Day</u>" means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by law to be closed in New York City.

"<u>CD&R Investor</u>" has the meaning given to such term in the Preamble.

"<u>CD&R Investor I</u>" has the meaning given to such term in the Preamble.

"<u>CD&R Investor II</u>" has the meaning given to such term in the Preamble.

"<u>CD&R Stockholders</u>" has the meaning given to such term in the Preamble.

"<u>Certificate of Designations</u>" has the meaning given to such term in the Recitals.

"<u>Closing</u>" means the closing of the transactions contemplated by the Exchange Agreement.

"<u>Closing Date</u>" means the date on which the Closing occurs.

"<u>Common Stock</u>" means the common stock, par value $0.001 per share, of the Company, including any shares of capital stock into which the Common Stock may be converted (as a result of recapitalization, share exchange or similar event) or are issued including with respect to any stock split or stock dividend, or a successor security.

"<u>Company</u>" has the meaning given to such term in the Preamble.

"<u>control</u>" (including the terms "<u>controlling</u>," "<u>controlled by</u>" and "<u>under common control with</u>"), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee or executor, by contract or otherwise.

"<u>Covered Person</u>" has the meaning given to such term in <u>Section ‎5(a)</u>.

"<u>Demand Registration</u>" has the meaning given to such term in <u>Section ‎2(e)</u>.

"<u>Demand Request</u>" has the meaning defined in <u>Section ‎2(e)</u>.

"<u>Effective Period</u>" has the meaning given to such term in <u>Section ‎2(g)</u>.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and any successor statute thereto and the rules and regulations of the SEC promulgated thereunder.

"<u>Exchange Agreement</u>" has the meaning given to such term in the Recitals.

"<u>FINRA</u>" means the Financial Industry Regulatory Authority.

"<u>Free Writing Prospectus</u>" has the meaning given to such term in <u>Section ‎4(a)</u>.

"<u>Holdback Period</u>" means, with respect to any Underwritten Offering, 90 days after (or such shorter period as may be agreed to by the managing underwriter(s) for such offering) and during the 10 days before, the effective date of the related Registration Statement or, in the case of an underwritten takedown from a Shelf Registration Statement, 90 days after (or such shorter period as may be agreed to by the managing underwriter(s) for such offering) the date of the Prospectus supplement filed with the SEC in connection with such takedown and during such prior period (not to exceed 10 days) as the Company has given reasonable written notice to the CD&R Stockholders holding Registrable Securities.

"<u>including</u>" means "including without limitation."

"<u>Indemnified Party</u>" has the meaning given to such term in <u>Section ‎5(c)</u>.

"<u>Indemnifying Party</u>" has the meaning given to such term in <u>Section ‎5(c)</u>.

"<u>Losses</u>" has the meaning given to such term in <u>Section ‎5(a)</u>.

"<u>Marketed Underwritten Offering</u>" means (i) an Underwritten Offering pursuant to a Demand Registration or (ii) a Marketed Underwritten Shelf Offering.

"<u>Marketed Underwritten Shelf Offering</u>" has the meaning given to such term in <u>Section ‎2(b)</u>.

"<u>Other Stockholders</u>" shall mean Persons who by virtue of agreements with the Company (other than this Agreement) are entitled to include their securities in any registration of the offer or sale of securities pursuant to the Securities Act. Any references herein to "Registrable Securities" in respect of Other Stockholders shall refer to the corresponding defined term for "registrable securities" in their respective registration rights agreement(s) with the Company.

"<u>Permitted Rights Transferee</u>" means, for the purposes of this Agreement, any Person to whom a CD&R Stockholder transfers shares of Preferred Stock or Common Stock in accordance with Section 3.3 of the Shareholders Agreement.

"<u>Person</u>" means any individual, partnership, joint venture, corporation, limited liability company, trust, unincorporated organization, government or any department or agency thereof or any other entity.

"<u>Piggyback Registration</u>" has the meaning given to such term in <u>Section ‎3(a)</u>.

"<u>Piggybacking Holder</u>" has the meaning given to such term in <u>Section ‎2(h)(iii)</u>.

"<u>Preferred Stock</u>" has the meaning given to such term in the Recitals.

"<u>Prospectus</u>" means the prospectus included in any Registration Statement (including a prospectus that discloses information previously omitted from a prospectus filed as part of an effective Registration Statement in reliance upon Rule 430A or Rule 430B, as the case may be, promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, relating to Registrable Securities, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such prospectus.

"<u>Registration Expenses</u>" has the meaning given to such term in <u>Section ‎6</u>.

"<u>Registrable Securities</u>" means, as of any date of determination, (<u>a</u>)(<u>i</u>) any shares of Common Stock held by a CD&R Stockholder and (<u>ii</u>) any shares of Common Stock issuable upon conversion of shares of Preferred Stock (including shares of Preferred Stock issued as dividends thereon as permitted under the terms of the Certificate of Designations) held by a CD&R Stockholder and (<u>b</u>) any equity securities or other equity interests issued or issuable, directly or indirectly, with respect to the shares of Common Stock described in clause (a) above by way of conversion or exchange thereof or stock dividends, stock splits or in connection with a combination of shares, reclassification, recapitalization, merger, consolidation or other reorganization. As to any particular Registrable Securities, once issued, such securities shall cease to be Registrable Securities when (<u>i</u>) they are disposed of pursuant to an effective Registration Statement under the Securities Act, (<u>ii</u>) they are sold to the public pursuant to Rule 144 or Rule 145 (or other exemption from registration under the Securities Act) or (<u>iii</u>) they shall have ceased to be outstanding.

"<u>Registration Statement</u>" means any registration statement of the Company filed with the SEC under the Securities Act which covers any of the Registrable Securities pursuant to the provisions of this Agreement, including any Prospectus, Free Writing Prospectus, amendments and supplements to such registration statement, including post-effective amendments, all exhibits and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

"<u>Rule 144</u>" means Rule 144 under the Securities Act, as such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

"<u>Rule 145</u>" means Rule 145 under the Securities Act, as such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

"<u>Rule 405</u>" means Rule 405 under the Securities Act, as such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC.

"<u>SEC</u>" means the U.S. Securities and Exchange Commission or any other federal agency at the time administering the Securities Act or the Exchange Act.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and any successor statute thereto and the rules and regulations of the SEC promulgated thereunder.

"<u>Selling Expenses</u>" means all underwriting and brokerage discounts, selling commissions, transfer taxes, if any; provided that, for the avoidance of doubt, Selling Expenses shall not include any fees and disbursements of any counsel retained by any underwriter in connection with any such sales.

"<u>Shelf Registration Statement</u>" has the meaning given to such term in <u>Section ‎2(a)</u>.

"<u>Shelf Takedown</u>" has the meaning given to such term in <u>Section ‎2(b)</u>.

"<u>Subsidiary</u>" means (<u>i</u>) any corporation of which a majority of the securities entitled to vote generally in the election of directors thereof, at the time as of which any determination is being made, are owned by another entity, either directly or indirectly and (<u>ii</u>) any joint venture, general or limited partnership, limited liability company or other legal entity in which an entity is the record or beneficial owner, directly or indirectly, of a majority of the voting interests or the general partner.

"<u>Take-Private Transaction</u>" has the meaning given to such term in <u>Section ‎4(k)</u>.

"<u>Underwritten Offering</u>" means an offering registered under the Securities Act in which securities of the Company are sold to one or more underwriters for reoffering to the public.

"<u>WKSI</u>" has the meaning given to such term in <u>Section ‎2(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Registration Rights</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) <u>Shelf Registration</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Promptly upon the Closing, but in no event later than sixty (60) calendar days following the Closing Date, the Company shall file with the SEC and thereafter use its reasonable best efforts to cause to be declared effective a registration statement on Form S-1 or, at the Company's option, such other form of registration statement as is then available to effect a "shelf" registration statement providing for the registration of, and the sale by the CD&R Stockholders on a continuous or delayed basis of, all of the Registrable Securities, pursuant to Rule 415 or otherwise (any such registration statement, a "<u>Shelf Registration Statement</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If eligible to do so, within forty (40) days following [ ], 2027<sup>1</sup>, the Company shall amend the Shelf Registration Statement to convert such Shelf Registration Statement into a registration statement on Form S-3 or any comparable or successor form or forms or any similar short-form registration statement (unless the Company discharged its obligations under <u>Section 2(a)(i)</u> by filing a registration statement on Form S-3) and thereafter use its reasonable best efforts to cause to be declared effective such amendment.

&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) <u>Shelf Takedowns</u>. Subject to the provisions of <u>Section ‎2(c)</u> hereof, the CD&R Stockholders shall be entitled, at any time and from time to time when a Shelf Registration Statement is effective, to sell such Registrable Securities held by them as are then registered pursuant to a Shelf Registration Statement (each, a "<u>Shelf Takedown</u>"). Subject to the following sentence, the number of Shelf Takedowns that the CD&R Stockholders may effect pursuant to this <u>Section ‎2(b)</u> shall not be limited. The number of Underwritten Offerings that may be effected hereunder shall be limited to a total of six (6) Underwritten Offerings and the Company shall not be required to facilitate an Underwritten Offering where the plan of distribution contemplates a customary "road show" (including an "electronic road show") or other substantial marketing effort by the Company and the underwriters (any such Underwritten Offering, a "<u>Marketed Underwritten Shelf Offering</u>") unless the aggregate gross proceeds from such offering are reasonably expected to be at least the lesser of (x) seventy-five million dollars ($75,000,000) and (y) the aggregate gross proceeds from such offering assuming all of the remaining number of Registrable Securities held by the CD&R Stockholders are sold. Any such Shelf Takedown may be made in the United States by and pursuant to any method or combination of methods legally available to the CD&R Stockholders (including an underwritten offering, a direct sale to purchasers, a sale to or through brokers, dealers or agents, a sale over the internet, Block Sales, derivative transactions with third parties, sales in connection with short sales and other hedging transactions). The Company shall comply with the applicable provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by the Shelf Registration Statement in accordance with the intended methods of disposition by the CD&R Stockholders participating in such Shelf Takedown.

<sup>1</sup> NTD: To be first anniversary of the Form 10 being declared effective by the SEC

&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) <u>Cooperation with Shelf Takedowns</u>. Upon receipt of prior written notice by the CD&R Stockholders that they intend to effect a Shelf Takedown, subject to <u>Section ‎2(i)</u>, the Company shall use its reasonable best efforts to cooperate in such Shelf Takedown, whether or not such Shelf Takedown constitutes an Underwritten Offering, by amending or supplementing the Registration Statement or Prospectus related to such Shelf Registration Statement as may be reasonably requested by the CD&R Stockholders for so long as any CD&R Stockholders hold Registrable Securities; <u>provided</u> that the Company shall not be obligated to cooperate in an Underwritten Offering to be effected by means of a Block Sale if notice of such Underwritten Offering has not been delivered to the Company at least three (3) Business Days prior to the intended launch of such Block Sale.

&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) <u>Automatic Shelf Registration Statements</u>. If on or after [ ], 2027<sup>2</sup>, the Company is a well-known seasoned issuer (as defined in Rule 405) (a "<u>WKSI</u>") at a time when it is obligated to file a Shelf Registration Statement pursuant to this Agreement, the Company shall file an automatic shelf registration statement (as defined in Rule 405) on Form S-3 (an "<u>Automatic Shelf Registration Statement</u>") in accordance with the requirements of the Securities Act and the rules and regulations of the SEC thereunder, that covers the Registrable Securities. The Company shall pay the registration fee for all Registrable Securities to be registered pursuant to an Automatic Shelf Registration Statement at the time of filing of the Automatic Shelf Registration Statement and shall not elect to pay any portion of the registration fee on a deferred basis. The Company shall use its reasonable best efforts to remain a WKSI (and not to become an ineligible issuer (as defined in Rule 405)) during the period during which any Automatic Shelf Registration Statement is effective. If at any time following the filing of an Automatic Shelf Registration Statement when the Company is required to re-evaluate its WKSI status the Company determines that it is not a WKSI, the Company shall use its reasonable best efforts to post-effectively amend the Automatic Shelf Registration Statement to a Shelf Registration Statement that is not automatically effective or file a new Shelf Registration Statement or, if the Company is not eligible at such time to file a Shelf Registration Statement on Form S-3, a Registration Statement on Form S-1; have such Registration Statement declared effective by the SEC; and keep such Registration Statement effective during the period during which such Shelf Registration Statement or Registration Statement on Form S-1 is required to be kept effective in accordance with <u>Section ‎2(g)</u> hereof.

<sup>2</sup> To be first anniversary of the Form 10 being declared effective by the SEC.

&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) <u>Demand Rights</u>. In the event the Company is not eligible to register Registrable Securities on Form S-3 or has failed to perform its obligations under <u>Section ‎2(a)</u> or <u>Section 2(f)</u>, the CD&R Stockholders shall have the right to require the Company to file a registration statement under the Securities Act in respect of all or a portion of Registrable Securities owned by the CD&R Stockholders, which may, for the avoidance of doubt, include an Underwritten Offering (so long as such request covers at least $25,000,000 worth of the then current value of shares of Common Stock (including, for purposes of such determination, any shares of Common Stock issuable upon conversion of shares of Preferred Stock (including shares of Preferred Stock issued as dividends thereon as permitted under the terms of the Certificate of Designations))), by delivering to the Company a written notice stating that such right is being exercised, specifying the number of Registrable Securities owned by the CD&R Stockholders to be included in such registration, and describing the intended method of distribution thereof (each, a "<u>Demand Request</u>" and any registration effected pursuant thereto, a "<u>Demand Registration</u>"). Notwithstanding the foregoing, the Company shall not be required to file any Registration Statement pursuant to a Demand Request within 90 days after the effective date of a previous Demand Registration or any previous Registration Statement in which the holders of Registrable Securities were given piggyback rights pursuant to <u>Section ‎3</u> in which there was no reduction in the number of Registrable Securities to be included, and in each case, in which the sale of the Registrable Securities included therein was consummated. The Company shall comply with the applicable provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by the Demand Registration in accordance with the intended methods of disposition by the CD&R Stockholders.

&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) <u>Effectiveness of Demand Registration</u>. As promptly as practicable, but in no event later than 20 Business Days after the Company receives a Demand Request pursuant to <u>Section ‎2(e)</u> hereof, the Company shall file with the SEC and thereafter use its reasonable best efforts to cause to be declared effective promptly a registration statement on the appropriate form (it being agreed that, subject to <u>Section ‎2(d)</u> hereof, such Registration Statement shall be an Automatic Shelf Registration Statement, if then available to the Company) providing for the registration of such number of Registrable Securities the CD&R Stockholders shall have requested be registered for distribution in accordance with such intended method of distribution. The Company shall comply in all material respects with the applicable provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by any such registration statement in accordance with the intended method or methods of disposition by the CD&R Stockholders.

&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) <u>Continued Effectiveness</u>. The Company shall use its reasonable best efforts to keep (<u>A</u>) any Shelf Registration Statement filed pursuant to this Agreement continuously effective and usable for the resale of the Registrable Securities covered by this Agreement until the date on which all of the Registrable Securities have been sold pursuant to such Shelf Registration Statement and (<u>B</u>) any Registration Statement filed pursuant to a Demand Request effective for a period of at least 360 days after the effectiveness thereof or such shorter period during which all Registrable Securities included therein shall have actually been sold (such period, the "<u>Effective Period</u>"); <u>provided</u>, <u>however</u>, that in the event the Company suspends, postpones or delays the filing of a Registration Statement required to be filed pursuant to this Agreement, the Effective Period shall be extended by the duration of each such applicable suspension, postponement or delay.

&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) <u>Priority on Demand Registration or Shelf Takedown</u>. If any of the Registrable Securities registered pursuant to a Demand Request or a Shelf Takedown are to be sold in a Marketed Underwritten Offering, and the managing underwriter(s) advise the CD&R Stockholders that in its good faith opinion the total number or dollar amount of Registrable Securities proposed to be sold in such Marketed Underwritten Offering (including securities proposed to be included by other holders of securities entitled to include securities in such Registration Statement pursuant to incidental or piggyback registration rights), is such as to adversely affect the success of such offering, then there shall be included in such Marketed Underwritten Offering the number or dollar amount of Registrable Securities that in the good faith opinion of such managing underwriter(s) can be sold without adversely affecting such offering, and such number of Registrable Securities shall be allocated as follows, unless the underwriters require a different allocation:

&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;(i) first, to the CD&R Stockholders requesting such registration *pro rata* on the basis of the percentage of Registrable Securities owned by each such CD&R Stockholder relative to the number of Registrable Securities owned by all CD&R Stockholders, until with respect to each such CD&R Stockholder, all Registrable Securities requested for registration by such CD&R Stockholder have been included in such registration;

&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;(ii) second, the securities for which inclusion in such Registration Statement was requested by the Company; and

&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;(iii) third, Common Stock requested by other holders of Common Stock (each, a "<u>Piggybacking Holder</u>") to be included in such Marketed Underwritten Offering, on a *pro rata* basis or in such other manner as such Piggybacking Holders shall agree.

Notwithstanding the foregoing, no securities other than Registrable Securities held by the CD&R Stockholders shall be eligible for inclusion in the total number or dollar amount of Registrable Securities proposed to be sold in any Block Sale effected pursuant to <u>Section ‎2(b)</u> or <u>Section ‎2(c)</u> 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;(i) <u>Postponements in Requested Registrations</u>. If the filing, initial effectiveness or continued use of a Registration Statement, including a Shelf Registration Statement, filed hereunder, including any proposed Underwritten Offering thereunder, (i) would require the Company, under applicable securities laws or other laws, to make a public disclosure of material non-public information, which disclosure in the good faith judgment of the Company (after consultation with external legal counsel) (<u>a</u>) would be required to be made in any Registration Statement so that such Registration Statement would not be materially misleading, and (<u>b</u>) would not be required to be made at such time but for the filing, effectiveness or continued use of such Registration Statement or (<u>ii</u>) would reasonably be expected to adversely affect in any material respect the Company or its business or the Company's ability to effect a bona fide material proposed acquisition, disposition, financing, reorganization, recapitalization or similar transaction, then the Company may, upon giving prompt written notice of such action to the CD&R Stockholders participating in such registration, delay the filing or initial effectiveness of, or suspend use of, such Registration Statement; <u>provided</u> that the Company shall not be permitted to do so (<u>x</u>) more than once in any 6-month period or (<u>y</u>) for any single period of time in excess of 90 days, or for periods exceeding, in the aggregate, 120 days during any 12-month period. In the event that the Company exercises its rights under the preceding sentence, such CD&R Stockholders agree to suspend, promptly upon receipt of the notice referred to above, the use of any Prospectus relating to such registration in connection with any sale or offer to sell Registrable Securities. If the Company so postpones the filing of a Prospectus or the effectiveness of a Registration Statement, the demanding CD&R Stockholder shall be entitled to withdraw such request. The Company shall promptly give the CD&R Stockholders requesting registration thereof pursuant to this <u>Section ‎2</u> written notice of any postponement made in accordance with the preceding sentence.

&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) <u>Registration Expenses</u>. The Company shall pay, and shall be responsible for, all Registration Expenses in connection with any registrations and offerings pursuant to this <u>Section ‎2</u>, including any underwritten offering, direct sales to purchasers, sales to or through brokers, dealers or agents, derivative transactions with third parties, sales in connection with short sales and other hedging transactions, that are effectuated pursuant to this <u>Section ‎2</u>; <u>provided</u>, <u>however</u>, that the CD&R Stockholders shall pay all Selling Expenses, if any, with respect to Registrable Securities sold by them.

&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) <u>Selection of Underwriters</u>. The lead underwriters of any Underwritten Offering effected pursuant to a Demand Registration or a Shelf Takedown shall be selected by the CD&R Stockholders, subject to the consent, not to be unreasonably withheld, of the Company. If the CD&R Stockholders intend that the Registrable Securities requested to be covered by a Demand Registration shall be distributed by means of an Underwritten Offering, the CD&R Stockholders shall so advise the Company in writing. The right of any CD&R Stockholder to participate in an Underwritten Offering pursuant to this <u>Section ‎2</u> will be conditioned upon such CD&R Stockholder's participation in such underwriting and the inclusion of such CD&R Stockholder's Registrable Securities in the underwriting and each such CD&R Stockholder will (together with the Company and any Piggybacking Holder distributing its securities through such underwriting) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting (including pursuant to the terms of any over-allotment or "green shoe" option requested by the managing underwriter(s)), <u>provided</u> that (<u>A</u>) no CD&R Stockholder shall be required to sell more than the number of Registrable Securities that such CD&R Stockholder has requested the Company to include in any registration and (<u>B</u>) if any CD&R Stockholder disapproves of the terms of the underwriting, such CD&R Stockholder may elect to withdraw therefrom by written notice to the Company, the managing underwriter(s) and, in connection with an Underwritten Offering pursuant to this <u>Section ‎2</u>, the other CD&R Stockholders, <u>provided</u>, <u>further</u>, that no such Person (other than the Company) shall be required to make any representations or warranties other than (x) those related to the title and ownership of, and power and authority to transfer, Registrable Securities and (y) those related to the accuracy and completeness of statements made in a Registration Statement, Prospectus or other document in reliance upon, and in conformity with, written information prepared and furnished to the Company or the managing underwriter(s) by such Person pertaining exclusively to such CD&R Stockholder. Notwithstanding the foregoing, no CD&R Stockholder shall be required to agree to any indemnification obligations on the part of such CD&R Stockholder that are greater than its obligations pursuant to <u>Section ‎5</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;(l) <u>Inclusion of After-Acquired Registrable Securities</u>. If, at any time after the filing of a Registration Statement (including, without limitation, an Automatic Shelf Registration Statement) pursuant to this <u>Section 2</u>, any CD&R Stockholder acquires or otherwise becomes the holder of additional Registrable Securities that are not then covered by such Registration Statement, the Company shall, as promptly as reasonably practicable (and in any event within thirty (30) calendar days following written notice from such CD&R Stockholder identifying such additional Registrable Securities), file with the SEC a post-effective amendment, a new registration statement, or a prospectus supplement (to the extent permitted under Rule 430B under the Securities Act or otherwise), as applicable, to include such additional Registrable Securities in such Registration Statement or in a new registration statement so that all Registrable Securities held by the CD&R Stockholders are registered for resale on a continuous or delayed basis pursuant to Rule 415. The Company shall use its reasonable best efforts to cause any such post-effective amendment or new registration statement to become effective as promptly as practicable after filing and to keep such Registration Statement, as so amended or supplemented, continuously effective and usable for the resale of all Registrable Securities covered thereby in accordance with <u>Section 2(g)</u>. For the avoidance of doubt, the obligations of the Company under this <u>Section 2(l)</u> are in addition to, and not in limitation of, the Company's obligations under <u>Section 4</u> of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Piggyback Restrictions</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) <u>Right to Piggyback</u>. Whenever the Company proposes to register any of its equity securities for its own account, including, but not limited to, pursuant to a Shelf Takedown or an Underwritten Offering (other than (w) pursuant to a registration statement Form S-4 (or similar form that relates to a transaction subject to Rule 145) or in which the Company is offering to exchange its own securities for other securities, (<u>x</u>) a registration pursuant to this Agreement, (<u>y</u>) a registration relating solely to employee benefit plans or any dividend or distribution reinvestment or similar plan, or relating to a registration relating solely to the sale of debt or convertible debt instruments or (z) a "universal" shelf registration statement on Form S-3 (provided, that for the avoidance of doubt, the foregoing clause (z) shall apply only to the filing of a "universal" shelf registration statement, but not to any Shelf Takedown or other sales of equity securities thereunder) and the registration form to be filed may be used for the registration or qualification for distribution of Registrable Securities, the Company will give written notice at least fifteen (15) days before the anticipated filing date to the CD&R Stockholders of its intention to effect such a registration (which notice shall be held in confidence by the CD&R Stockholders until such registration is publicly disclosed) and will include in such registration all Registrable Securities held by the CD&R Stockholders with respect to which the Company has received from the CD&R Stockholder a written request for inclusion therein within ten (10) days after the date of the Company's notice (a "<u>Piggyback Registration</u>"). If the CD&R Stockholder has made such a written request, it may withdraw its or any Registrable Securities from such Piggyback Registration by giving written notice to the Company and the managing underwriter(s), if any, on or before the fifth (5th) day prior to the planned effective date of such Piggyback Registration. The Company may terminate or withdraw any registration under this <u>Section ‎3</u> prior to the effectiveness of such registration, whether or not the CD&R Stockholder has elected to include Registrable Securities in such registration, and, except for the obligation to pay Registration Expenses pursuant to <u>Section ‎3(c)</u>, the Company will have no liability to the CD&R Stockholder in connection with such termination or withdrawal.

&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) <u>Underwritten Registration</u>. If the registration referred to in <u>Section ‎3(a)</u> is proposed to be an Underwritten Offering, the Company will so advise the CD&R Stockholders as a part of the written notice given pursuant to <u>Section ‎3(a)</u>. In such event, the right of any CD&R Stockholder to registration pursuant to this <u>Section ‎3</u> will be conditioned upon such CD&R Stockholder's participation in such underwriting and the inclusion of such CD&R Stockholder's Registrable Securities in the underwriting, and any CD&R Stockholder that holds Registrable Securities that are to be sold in such offering will (together with the Company and any other holders distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such offering by the Company. If the CD&R Stockholder disapproves of the terms of the underwriting, the CD&R Stockholder may elect to withdraw therefrom by written notice to the Company and the managing underwriter(s).

&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) <u>Piggyback Registration Expenses</u>. The Company will pay all Registration Expenses in connection with any Piggyback Registration, whether or not any registration or prospectus becomes effective or final; <u>provided</u>, <u>however</u>, that the CD&R Stockholders shall pay all Selling Expenses, if any, with respect to Registrable Securities sold by them.

&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) <u>Priority on Primary Registrations</u>. If a Piggyback Registration relates to a primary Underwritten Offering on behalf of the Company, and the managing underwriter(s) advise the Company in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which can be sold without adversely affecting the marketability of such offering, the Company will include in such registration or prospectus only such number of securities that in the opinion of such underwriters can be sold without adversely affecting the marketability of the offering, which securities will be so included in the following order of priority: (<u>i</u>) first, the securities the Company proposes to sell, (<u>ii</u>) second, the Registrable Securities requested to be included in such registration by the CD&R Stockholders (and, if applicable, Other Stockholders) on a *pro rata* basis relative to the total number of Registrable Securities requested to be included therein by such holders, until all Registrable Securities requested for registration by such holders have been included in such registration and (iii) third, Common Stock requested by any other persons to be included in the Piggyback Registration, on a *pro rata* basis relative to the total number of registrable securities requested to be included in the Piggyback Registration by such other requesting persons, or in such other manner as such other requesting persons shall agree.

&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) <u>Priority on Secondary Registrations</u>. If a Piggyback Registration relates to a secondary Underwritten Offering on behalf of any Other Stockholders, and the managing underwriter(s) advise the Company in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which can be sold without adversely affecting the marketability of the offering, the Company will include in such registration only such number of securities that in the opinion of such underwriters can be sold without adversely affecting the marketability of the offering, which securities shall include Registrable Securities requested to be included therein by the Other Stockholders making demand for such offering, together with any Registrable Securities requested to have been included in such registration by the CD&R Stockholders on a *pro rata* basis relative to the number of total shares of Registrable Securities requested to be included therein by the CD&R Stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Registration Procedures</u>. If and whenever the Company is required to use its reasonable best efforts to effect the registration of any Registrable Securities under the Securities Act as provided in <u>Section ‎2</u>, the Company shall effect such registration to permit the sale of such Registrable Securities in accordance with the intended method or methods of disposition thereof, and pursuant thereto the Company shall cooperate in the sale of such Registrable Securities and shall, as expeditiously as possible:

&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) prepare and file, in each case as promptly as practicable, with the SEC a Registration Statement or Registration Statements on such form as shall be available for the sale of the Registrable Securities by the CD&R Stockholders thereof or by the Company in accordance with the intended method or methods of distribution thereof, make all required filings with FINRA, and, if such Registration Statement is not automatically effective upon filing, use its reasonable best efforts to cause such Registration Statement to be declared effective as soon as practicable and to remain effective as provided herein; <u>provided</u>, <u>however</u>, that before filing a Registration Statement or Prospectus or any amendments or supplements thereto (including free writing prospectuses under Rule 433 (each a "<u>Free Writing Prospectus</u>")), the Company shall furnish or otherwise make available to the CD&R Stockholders, their counsel and the managing underwriter(s), if any, copies of all such documents proposed to be filed (including exhibits thereto), which documents will be subject to the reasonable review and comment of such counsel, and such other documents reasonably requested by such counsel, including any comment letter from the SEC, and, if requested by such counsel, provide such counsel reasonable opportunity to participate in the preparation of such Registration Statement and each Prospectus included therein and such other opportunities to conduct a reasonable investigation within the meaning of the Securities Act, including reasonable access to the Company's books and records, officers, accountants and other advisors. The Company shall not file any such Registration Statement or Prospectus, or any amendments or supplements thereto (including Free Writing Prospectuses) with respect to a Demand Registration to which CD&R Stockholders or the managing underwriter(s), if any, shall reasonably object, in writing, on a timely basis, unless, in the opinion of the Company, such filing is necessary to comply with applicable law;

&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) prepare and file with the SEC such amendments and supplements to such Registration Statement and the Prospectus used in connection therewith and such Free Writing Prospectuses and Exchange Act reports as may be necessary to (i) keep such Registration Statement continuously effective during the period provided herein, (ii) comply in all material respects with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement and (iii) include in such Registration Statement any additional Registrable Securities acquired by the CD&R Stockholders after the initial filing of such Registration Statement, in each case as contemplated by <u>Section 2(l)</u>; and cause the related Prospectus to be supplemented by any Prospectus supplement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of the securities covered by such Registration Statement, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act in each case, until such time as all of such securities have been disposed of in accordance with the intended method or methods of disposition by the seller or sellers thereof set forth in such Registration Statement;

&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) notify each selling CD&R Stockholder of Registrable Securities, its counsel and the managing underwriter(s) of any Underwritten Offering:

&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;(i) when a Registration Statement, pre-effective amendment to any Registration Statement, Prospectus or any Prospectus supplement or post-effective amendment or any Free Writing Prospectus has been filed, and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective,

&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;(ii) of any request by the SEC or any other federal or state governmental authority for amendments or supplements to a Registration Statement or related Prospectus or for additional information,

&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;(iii) of the issuance by the SEC of any stop order suspending the effectiveness of such Registration Statement or the initiation or threatening of any proceedings for that purpose,

&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;(iv) if at any time the Company has reason to believe that the representations and warranties of the Company contained in any agreement (including any underwriting agreement) contemplated by <u>Section ‎4(l)</u> below cease to be true and correct,

&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;(v) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of such Registrable Securities for sale in any jurisdiction, or the initiation of any proceeding for such purpose, and

&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;(vi) of the happening of any event that makes any statement made in such Registration Statement or related Prospectus, Free Writing Prospectus, amendment or supplement thereto, or any document incorporated or deemed to be incorporated therein by reference, as then in effect, untrue in any material respect or that requires the making of any changes in such Registration Statement, Prospectus or documents so that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, not misleading, and that in the case of the Prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading (which notice shall notify the selling CD&R Stockholders only of the occurrence of such an event and shall provide no additional information regarding such event to the extent such information would constitute material non-public information);

&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) use its reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of a Registration Statement, or the lifting of any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction at the earliest date reasonably practical;

&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) if requested by the CD&R Stockholders, or, in the case of an Underwritten Offering, the managing underwriter(s) of such Underwritten Offering, promptly include in a Prospectus supplement or post-effective amendment such information as the CD&R Stockholders or such managing underwriter(s), as the case may be, may reasonably request in order to facilitate the disposition of the Registrable Securities in accordance with the intended method or methods of distribution of such securities set forth in the Registration Statement and make all required filings of such Prospectus supplement or such post-effective amendment as soon as practicable after the Company has received such request; <u>provided</u>, <u>however</u>, that the Company shall not be required to take any actions under this <u>Section ‎4(e)</u> that are not, in the opinion of counsel for the Company, in compliance with applicable law;

&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) deliver to each selling CD&R Stockholder of Registrable Securities, its counsel, and the underwriters, if any, without charge, as many copies of the Prospectus or Prospectuses (including each form of Prospectus) and each amendment or supplement thereto (including any Free Writing Prospectus) as such Persons may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities in accordance with the intended method or methods of disposition thereof; and the Company, subject to the last paragraph of this <u>Section ‎4</u>, hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling CD&R Stockholders of Registrable Securities and the underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any such amendment or supplement thereto;

&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) use its reasonable best efforts to register or qualify or cooperate with the selling CD&R Stockholders of Registrable Securities, the underwriters, if any, and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or blue sky laws of such jurisdictions within the United States as any seller or underwriter reasonably requests in writing and to keep each such registration or qualification (or exemption therefrom) effective during the period such Registration Statement is required to be kept effective and to take any other action that may be necessary or advisable to enable such CD&R Stockholders of Registrable Securities to consummate the disposition of such Registrable Securities in such jurisdiction in accordance with the intended method or methods of disposition thereof; <u>provided</u>, <u>however</u>, that the Company will not be required to (<u>i</u>) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this <u>Section ‎4(g)</u>, (<u>ii</u>) subject itself to taxation in any jurisdiction wherein it is not so subject or (<u>iii</u>) take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject;

&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) cooperate with the selling CD&R Stockholders of Registrable Securities and the managing underwriter(s), if any, to facilitate the timely preparation and delivery of certificates (not bearing any legends) representing Registrable Securities to be sold after receiving written representations from each CD&R Stockholder of such Registrable Securities that the Registrable Securities represented by the certificates so delivered by such CD&R Stockholder will be transferred in accordance with the Registration Statement, and enable such Registrable Securities to be in such denominations and registered in such names as the managing underwriter(s), if any, or CD&R Stockholders may request at least two Business Days prior to any sale of Registrable Securities in a firm commitment public offering, but in any other such sale, within 10 Business Days prior to having to issue the securities;

&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) upon the occurrence of any event contemplated by <u>Section ‎‎‎4(c)(vi)</u> above, prepare a supplement or post-effective amendment to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities being sold thereunder, such Prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;

&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) provide and cause to be maintained a transfer agent and registrar for all such Registrable Securities from and after the effective date of such Registration Statement;

&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) use its reasonable best efforts to cause all shares of Registrable Securities covered by any Registration Statement to be listed on each primary national securities exchange (if any) on which shares of the particular class of Registrable Securities are at that time listed; provided that, for the avoidance of doubt, neither this <u>Section 4(k)</u> nor any other provision of this Agreement shall prohibit the Company from effecting a merger, sale or other "take-private" transaction (each, a "<u>Take-Private Transaction</u>") in which all or substantially all of the shares of Common Stock outstanding immediately prior to such transaction (other than "rollover" shares) are converted into or exchanged for the right to receive consideration consisting of cash or other property and, following such transaction, the Common Stock is no longer listed on a national securities exchange nor registered under the Securities Act and/or the Exchange 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;(l) in the case of any Underwritten Offering in which any CD&R Stockholder participates, enter into an underwriting agreement containing such provisions as are acceptable to the Company, acting reasonably (including provisions for indemnification, lockups, opinions of counsel and comfort letters), and take all such other customary and reasonable actions as the managing underwriters of such offering may request in order to facilitate the disposition of such Registrable Securities, including adding information requested by the managing underwriters to the Prospectus, and making such representations and warranties to the holders of such Registrable Securities and the underwriters, if any, with respect to the business of the Company and its material subsidiaries, and the Registration Statement, Prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by issuers to underwriters in underwritten offerings, and, if true, confirm the same if and when requested;

&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) in the case of any Underwritten Offering in which any CD&R Stockholder participates, (A) make reasonably available, for inspection by the managing underwriters of such Underwritten Offering and one law firm and accounting firm acting for such managing underwriters, pertinent corporate documents and financial and other records of the Company and its subsidiaries and controlled Affiliates, (B) cause the Company's officers and employees to supply information reasonably requested by such managing underwriters or law firm or accounting firm in connection with such offering, (C) make the Company's independent auditor available for any such managing underwriters' due diligence and have them provide customary comfort letters to such underwriters in connection therewith and to each CD&R Stockholder selling Registrable Securities in such offering (unless such accountants shall be prohibited from so addressing such letters by applicable standards of the accounting profession) and (D) cause the Company's outside counsel to furnish customary legal opinions and updates thereof (which legal opinions (in form, scope and substance) shall be reasonably satisfactory to the managing underwriter(s)) to such underwriters and to each CD&R Stockholder selling Registrable Securities in such offering in connection therewith (subject to delivery to outside counsel of each such CD&R Stockholder's representation that it is knowledgeable with respect to the due diligence review process that an underwriter would perform in connection with an offering of securities registered pursuant to the Securities Act), covering the matters customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by such counsel and underwriters; <u>provided</u>, <u>however</u>, that any such records and other information provided under clauses (A) and (B) above that is not generally publicly available shall be subject to such confidential treatment as is customary for underwriters' due diligence reviews;

&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) in the case of any Underwritten Offering in which any CD&R Stockholder participates, cause its management to use their reasonable best efforts to support the marketing of the Registrable Securities covered by the Registration Statement (including participation in such number of "road shows" as the underwriter(s) reasonably request, and in any management diligence meetings or teleconferences as the underwriter(s) or their counsel reasonably request), in each case consistent, to the extent commercially reasonable, with the historical practices of the Company for an underwritten offering by the Company having an aggregate offering size comparable to such Underwritten Offering;

&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) cooperate with each seller of Registrable Securities and each underwriter or agent participating in the disposition of such Registrable Securities and their respective counsel in connection with any filings required to be made with the FINRA; and

&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) otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the SEC, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve months beginning with the first day of the Company's first full calendar quarter after the effective date of any Registration Statement, which earnings statement will satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

The Company may require each CD&R Stockholder of Registrable Securities as to which any registration is being effected to furnish to the Company in writing such information required in connection with such registration regarding such seller and the distribution of such Registrable Securities as the Company may, from time to time, reasonably request and the Company may exclude from such registration the Registrable Securities of any CD&R Stockholder who unreasonably fails to furnish such information within a reasonable time after receiving such request.

The Company agrees not to file or make any amendment to any Registration Statement with respect to any Registrable Securities, or any amendment of or supplement to the Prospectus or any Free Writing Prospectus used in connection therewith, that refers to any CD&R Stockholder covered thereby by name, or otherwise identifies such CD&R Stockholder as the holder of any securities of the Company, without first furnishing or otherwise making available to such CD&R Stockholder a copy of any such amendment or supplement no less than five Business Days prior to the filing of such amendment or supplement (unless and to the extent such amendment or supplement is required by law to be filed earlier) and including all comments reasonably and timely requested by such CD&R Stockholder thereon.

If the Company files any Shelf Registration Statement for the benefit of the holders of any of its securities other than the CD&R Stockholders, the Company agrees that it shall use its reasonable best efforts to include in such registration statement such disclosures as may be required by Rule 430B under the Securities Act (referring to the unnamed selling security holders in a generic manner by identifying the initial offering of the securities to the CD&R Stockholders) in order to ensure that the CD&R Stockholders may be added to such Shelf Registration Statement at a later time through the filing of a Prospectus supplement rather than a post-effective amendment.

Each CD&R Stockholder holding Registrable Securities agrees if such CD&R Stockholder has Registrable Securities covered by such Registration Statement that, upon receipt of any notice from the Company of the happening of any event of the kind described in <u>Sections ‎4(c)(ii)</u>, <u>‎</u><u>4(c)(iii)</u>, <u>‎</u><u>4(c)(iv)</u>, <u>‎</u><u>4(c)(v)</u> and <u>‎</u><u>4(c)(vi)</u> hereof, such CD&R Stockholder will promptly discontinue disposition of such Registrable Securities covered by such Registration Statement or Prospectus until such CD&R Stockholder's receipt of the copies of the supplemented or amended Prospectus contemplated by <u>Section ‎4(c)(i)</u> hereof, or until it is advised in writing by the Company that the use of the applicable Prospectus may be resumed, and has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus; <u>provided</u>, <u>however</u>, that the time periods under <u>Section ‎2</u> with respect to the length of time that the effectiveness of a Registration Statement must be maintained shall automatically be extended by the amount of time the CD&R Stockholder is required to discontinue disposition of such securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Indemnification</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) <u>Indemnification by the Company</u>. The Company shall, without limitation as to time, indemnify and hold harmless, to the fullest extent permitted by law, each CD&R Stockholder of Registrable Securities whose Registrable Securities are covered by a Registration Statement or Prospectus, the officers, directors, partners, members, managers, shareholders, accountants, attorneys, agents and employees of each of them, each Person who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) each such CD&R Stockholder and the officers, directors, partners, members, managers, shareholders, accountants, attorneys, agents and employees of each such controlling person, each underwriter, if any, and each Person who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such underwriter (each such person being referred to herein as a "<u>Covered Person</u>"), from and against any and all losses, claims, damages, liabilities, costs (including costs of preparation and reasonable attorneys' fees and any legal or other fees or expenses incurred by such party in connection with any investigation or proceeding), expenses, judgments, fines, penalties, charges and amounts paid in settlement (collectively, "<u>Losses</u>"), as incurred, arising out of or based upon any untrue or alleged untrue statement of a material fact contained in any Prospectus, Registration Statement or Free Writing Prospectus or any amendment thereof or supplement thereto or any document incorporated by reference therein or based on any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by the Company of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation thereunder applicable to the Company and relating to any action or inaction in connection with the related offering of Registrable Securities, and will reimburse each such Covered Person for any legal and any other expenses reasonably incurred in connection with investigating and defending or settling any such Loss, <u>provided</u> that the Company will not be liable in any such case to the extent that any such Loss arises out of or is based on any untrue statement or omission by such Covered Person relating to such Covered Person or its Affiliates (other than the Company or any of its Subsidiaries), but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such Registration Statement, Prospectus, Free Writing Prospectus or any amendment thereof or supplement thereto, or any document incorporated by reference therein, in each case in reliance upon and in conformity with written information furnished to the Company by such Covered Person with respect to such Covered Person for use therein. It is agreed that the indemnity agreement contained in this <u>Section ‎5(a)</u> shall not apply to amounts paid in settlement of any such Loss or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld).

&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) <u>Indemnification by CD&R Stockholder of Registrable Securities</u>. As a condition to including any Registrable Securities in any Registration Statement filed in accordance with <u>Section ‎4</u> hereof, the Company shall have received an undertaking reasonably satisfactory to it from the prospective seller of such Registrable Securities to indemnify, to the fullest extent permitted by law, severally and not jointly with any other CD&R Stockholders holding Registrable Securities, the Company, its directors and officers and each Person who controls (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) the Company and all other prospective sellers, from and against all Losses arising out of or based on any untrue or alleged untrue statement of a material fact contained in any such Registration Statement, Prospectus or Free Writing Prospectus or any amendment thereof or supplement thereto, or any document incorporated by reference therein, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company, such directors, controlling persons and prospective sellers for any legal or any other expenses reasonably incurred in connection with investigating or defending any such Loss, in each case to the extent, but only to the extent, that such untrue statement or omission is made in such Registration Statement, Prospectus or Free Writing Prospectus or any amendment thereof or supplement thereto, or any document incorporated by reference therein, in each case in reliance upon and in conformity with written information furnished to the Company by such CD&R Stockholder with respect to such CD&R Stockholder for inclusion in such Registration Statement, Prospectus or Free Writing Prospectus or any amendment thereof or supplement thereto, or any document incorporated by reference therein; <u>provided</u>, <u>however</u>, that the obligations of such CD&R Stockholder hereunder shall not apply to amounts paid in settlement of any such Losses (or actions in respect thereof) if such settlement is effected without the consent of such CD&R Stockholder (which consent shall not be unreasonably withheld); and <u>provided</u>, <u>further</u>, that the liability of such CD&R Stockholder of Registrable Securities shall be limited to the net proceeds received by such selling CD&R Stockholder from the sale of Registrable Securities covered by such Registration Statement.

&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) <u>Conduct of Indemnification Proceedings</u>. If any Person shall be entitled to indemnity hereunder (an "<u>Indemnified Party</u>"), such Indemnified Party shall give prompt notice to the party from which such indemnity is sought (the "<u>Indemnifying Party</u>") of any claim or of the commencement of any proceeding with respect to which such Indemnified Party seeks indemnification or contribution pursuant hereto; <u>provided</u>, <u>however</u>, that the delay or failure to so notify the Indemnifying Party shall not relieve the Indemnifying Party from any obligation or liability except to the extent that the Indemnifying Party has been materially prejudiced by such delay or failure. The Indemnifying Party shall have the right, exercisable by giving written notice to an Indemnified Party promptly after the receipt of written notice from such Indemnified Party of such claim or proceeding, to, unless in the Indemnified Party's reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist in respect of such claim, assume, at the Indemnifying Party's expense, the defense of any such claim or proceeding, with counsel reasonably satisfactory to such Indemnified Party; <u>provided</u>, <u>however</u>, that an Indemnified Party shall have the right to employ separate counsel in any such claim or proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless: (<u>i</u>) the Indemnifying Party agrees to pay such fees and expenses; or (<u>ii</u>) the Indemnifying Party fails promptly to assume, or in the event of a conflict of interest cannot assume, the defense of such claim or proceeding or fails to employ counsel reasonably satisfactory to such Indemnified Party; in which case the Indemnified Party shall have the right to employ counsel and to assume the defense of such claim or proceeding at the Indemnifying Party's expense; <u>provided</u>, <u>further</u>, <u>however</u>, that the Indemnifying Party shall not, in connection with any one such claim or proceeding or separate but substantially similar or related claims or proceedings in the same jurisdiction, arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one firm of attorneys (together with appropriate local counsel) at any time for all of the Indemnified Parties, or for fees and expenses that are not reasonable. Whether or not such defense is assumed by the Indemnifying Party, such Indemnifying Party will not be subject to any liability for any settlement made without its consent (but such consent will not be unreasonably withheld). The Indemnifying Party shall not consent to entry of any judgment or enter into any settlement that (<u>x</u>) does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release, in form and substance reasonably satisfactory to the Indemnified Party, from all liability in respect of such claim or litigation for which such Indemnified Party would be entitled to indemnification hereunder or (<u>y</u>) involves the imposition of equitable remedies or the imposition of any obligations on the Indemnified Party or adversely affects such Indemnified Party other than as a result of financial obligations for which such Indemnified Party would be entitled to indemnification 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;(d) <u>Contribution</u>. If the indemnification provided for in this <u>Section ‎5</u> is unavailable to an Indemnified Party in respect of any Losses (other than in accordance with its terms), then each applicable Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party, on the one hand, and such Indemnified Party, on the other hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party, on the one hand, and Indemnified Party, on the other hand, shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact, has been made (or omitted) by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent any such action, statement or omission.

The parties hereto agree that it would not be just and equitable if contribution pursuant to this <u>Section ‎5(d)</u> were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this <u>Section ‎5(d)</u>, an Indemnifying Party that is a selling CD&R Stockholder holding Registrable Securities shall not be required to contribute any amount in excess of the amount that such Indemnifying Party has otherwise been, or would otherwise be, required to pay pursuant to <u>Section ‎5(b)</u> by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

&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) <u>Non-Exclusivity</u>. The obligations of the parties under this <u>Section ‎5</u> shall be in addition to any liability which any party may otherwise have to any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Registration Expenses</u>. All fees and expenses incurred in the performance of or compliance with this Agreement by the Company including (<u>i</u>) all registration and filing fees (including fees and expenses (<u>A</u>) with respect to filings required to be made with the SEC, all applicable securities exchanges and/or FINRA and (<u>B</u>) of compliance with securities or blue sky laws, including any fees and disbursements of counsel for the underwriters in connection with blue sky qualifications of the Registrable Securities pursuant to <u>Section ‎4(g)</u>), (<u>ii</u>) printing expenses (including expenses of printing certificates for Registrable Securities in a form eligible for deposit with The Depository Trust Company and of printing Prospectuses if the printing of Prospectuses is requested by the managing underwriter(s), if any, of an Underwritten Offering, or by the CD&R Stockholders, (<u>iii</u>) messenger, telephone and delivery expenses of the Company, (<u>iv</u>) fees and disbursements of counsel for the Company, (<u>v</u>) expenses of the Company incurred in connection with any road show, (<u>vi</u>) fees and disbursements of all independent registered public accounting firms referred to in <u>Section ‎4(m)</u> hereof (including the expenses of any "cold comfort" letters required by this Agreement) and any other persons, including special experts retained by the Company, shall be borne by the Company whether or not any Registration Statement is filed or becomes effective and (<u>vii</u>) fees and disbursements of any counsel retained by any CD&R Stockholder holding Registrable Securities in an aggregate amount not to exceed $100,000 per Marketed Underwritten Shelf Offering or Demand Registration, or $100,000 in the case of the Shelf Registration Statement required to be filed pursuant to Section ‎2(a) (all such expenses, "<u>Registration Expenses</u>"). In addition, the Company shall pay its internal expenses (including all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred in connection with the listing of the securities to be registered on any securities exchange on which similar securities issued by the Company are then listed and rating agency fees and the fees and expenses of any Person, including special experts, retained by the Company.

The Company shall not be required to pay (<u>i</u>) any underwriter's fees (including discounts, commissions or fees of underwriters, selling brokers, dealer managers or similar securities industry professionals) relating to the distribution of the Registrable Securities (other than with respect to Registrable Securities sold by the Company) or (<u>ii</u>) expenses (other than the Company's internal expenses) in connection with any offering pursuant to a Demand Request or Shelf Takedown begun pursuant to <u>Section ‎2</u>, the request of which has been subsequently withdrawn by the demanding CD&R Stockholder unless (<u>x</u>) the withdrawal is based upon (<u>A</u>) any fact, circumstance, event, change, effect or occurrence that individually or in the aggregate with all other facts or circumstances, events, changes, effects or occurrences has a material adverse effect on the Company or (<u>B</u>) material adverse information concerning the Company that the Company had not publicly disclosed at least forty-eight (48) hours prior to such registration request or that the Company had not otherwise notified, in writing, the demanding CD&R Stockholder of at the time of such request or (<u>y</u>) the CD&R Stockholder issuing such Demand Request or requesting such Shelf Takedown, as applicable, has not withdrawn three Demand Requests relating to Underwritten Offerings of a type not covered by the foregoing clauses (ii)(x)(A) or (ii)(x)(B).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Rule 144</u>. The Company covenants that it will file the reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder (or, if the Company is not required to file such reports (except as a result of a Take-Private Transaction), it will, upon the request of any of the CD&R Stockholders, make publicly available such information so long as necessary to permit sales of Registrable Securities pursuant to Rule 144), and it will take such further action as any CD&R Stockholder of Registrable Securities (or, if the Company is not required to file reports as provided above (except as a result of a Take-Private Transaction), any of the CD&R Stockholders) may reasonably request, all to the extent required from time to time to enable such CD&R Stockholder to sell shares of Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144. Upon the request of any CD&R Stockholder of Registrable Securities, the Company will deliver to such CD&R Stockholder a written statement as to whether it has complied with such requirements and will, within the limitations of the exemption provided by Rule 144 (as such rule may be amended from time to time) or any similar rule enacted by the SEC, instruct the transfer agent to remove the restrictive legend affixed to any Common Stock to enable such shares to be sold in compliance with Rule 144 (as such rule may be amended from time to time) or any similar rule enacted by the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Miscellaneous</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) <u>Termination</u>. The provisions of this Agreement (other than <u>Section ‎5</u>) shall terminate upon the earliest to occur of (<u>i</u>) its termination by the written agreement of all parties hereto or their respective successors in interest, (<u>ii</u>) the date on which the CD&R Stockholders cease to own any Registrable Securities or shares of Preferred Stock and (<u>iii</u>) the dissolution, liquidation or winding up of the Company. Nothing herein shall relieve any party from any liability for the breach of any of the agreements set forth in 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) <u>Holdback Agreement</u>. In consideration for the Company agreeing to its obligations under this Agreement, each CD&R Stockholder agrees in connection with any Marketed Underwritten Shelf Offering or Marketed Underwritten Offering of the Company's Common Stock (whether or not such CD&R Stockholder is participating in such transaction) upon the request of the Company and the underwriter(s) managing such Underwritten Offering, not to effect (other than pursuant to such registration) any public sale or distribution of Common Stock, including, but not limited to, any sale pursuant to Rule 144, or make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of, or enter into any swap or other arrangement that transfers to another Person any of the economic consequences of ownership of, any Common Stock, any other equity securities of the Company or any securities convertible into or exchangeable or exercisable for any equity securities of the Company without the prior written consent of the Company or such underwriters, as the case may be, during the Holdback Period.

If any registration pursuant to <u>Section ‎2</u> of this Agreement shall be in connection with any Marketed Underwritten Shelf Offering or other Marketed Underwritten Offering where the plan of distribution contemplates a customary "road show" (including an "electronic road show") or other substantial marketing effort by the Company and the underwriters, the Company will not effect any public sale or distribution of any common equity (or securities convertible into or exchangeable or exercisable for common equity) (other than a registration statement (<u>i</u>) on Form S-4, Form S-8 or any successor forms promulgated for similar purposes or (<u>ii</u>) filed in connection with an exchange offer or any employee benefit or dividend reinvestment plan) for its own account, during the Holdback Period.

&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) <u>Amendments and Waivers</u>. This Agreement may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if any such amendment, action or omission to act, has received the written consent of the Company and each of the CD&R Stockholders. The failure of any party to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms. Any CD&R Stockholder may waive (in writing) the benefit of any provision of this Agreement with respect to itself for any purpose. Any such waiver shall constitute a waiver only with respect to the specific matter described in such writing and shall in no way impair the rights of the CD&R Stockholder granting such waiver in any other respect or at any other time.

&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) <u>Successors, Assigns and Transferees</u>. This Agreement may not be assigned without the prior written consent of the Company. Notwithstanding the foregoing, (i) any CD&R Stockholder may assign any of its rights, interests and obligations hereunder to (a) any Affiliate of any CD&R Stockholder and (b) any Permitted Rights Transferee who acquires at least 25% of the Registrable Securities held by the CD&R Stockholders as of the date hereof, and (ii) in the event of and as a condition to any such assignment, such assignee shall agree in writing to be bound by the provisions of this Agreement, including the rights, interests and obligations so assigned. The CD&R Stockholders acknowledge that no limited partner of an investment fund managed by Clayton, Dubilier & Rice, LLC or any portfolio company thereof (excluding the Company and its subsidiaries) will be deemed to be a CD&R Stockholder for purposes of this Agreement. Notwithstanding the foregoing, any notice (or Demand Request, as applicable) of a CD&R Stockholder to register Registrable Securities pursuant to a registration statement under the Securities Act pursuant to, and in accordance with, <u>Section ‎2(b)</u>, <u>Section ‎2(e)</u>, <u>Section 2(l)</u> or <u>Section ‎3(a)</u> shall be deemed to include, and the Company shall register (subject to the limitations and conditions otherwise applicable to the CD&R Stockholder), any portion of such Registrable Securities that are transferred to a Permitted Rights Transferee prior to the execution of an underwriting agreement in connection with an Underwritten Offering and the effectiveness of the registration statement, in each other case, provided that the notice (or Demand Request, as applicable) described in <u>Section ‎2(b)</u>, <u>Section ‎2(e)</u>, <u>Section 2(l)</u> or <u>Section ‎3(a)</u>, as applicable, includes the identity of such Permitted Rights Transferee, the relationship (if any) of such Permitted Rights Transferee with the Company, their beneficial ownership of Common Stock, the Registrable Securities held by such Permitted Rights Transferee to be included in such registration and the intended method of distribution thereof, and any other information reasonably requested by the Company and/or the managing underwriter(s) for inclusion in the applicable Registration Statement, Prospectus, Free Writing Prospectus or any amendment thereof or supplement thereto.

&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) <u>Notices</u>. All notices, requests and other communications to any party hereunder shall be in writing (including facsimile transmission) and shall be given:

If to the Company, to:

ADI Global Distribution Inc.

275 Broadhollow Rd Suite 400

Melville, NY 11747

E-mail: [●]

Attention: [●]

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

Willkie Farr & Gallagher LLP<br> 787 Seventh Avenue<br> New York, NY 10019<br> Attention: Russell Leaf; Jared Fertman; Tej Prakash<br> Fax: (212) 728-8111<br> Email: Rleaf@Willkie.com; <u>JFertman@willkie.com</u>; TPrakash@Willkie.com

if to a CD&R Stockholder, to:

c/o Clayton, Dubilier & Rice, LLC

375 Park Avenue, 18th Floor

New York, NY 10152

Attention: Andrew Campelli <br> Michael Pratt <br> Email: \*\*\*\*\*

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

Kirkland & Ellis LLP<br> 601 Lexington Avenue<br> New York, NY 10022

---

| | |
|:---|:---|
| Attention: | Richard J. Campbell, P.C. |
|  | Kyle P. Elder, P.C. |
| Email: | richard.campbell@kirkland.com |
|  | kyle.elder@kirkland.com |

---

or such other address or facsimile number as such party may hereafter specify for the purpose by notice to the other parties hereto.

All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. on a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed to have been received on the next succeeding Business Day in the place of receipt.

&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) <u>Further Assurances</u>. At any time or from time to time after the date hereof, the parties agree to cooperate with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated hereby and to otherwise carry out the intent of the parties 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;(g) <u>No Inconsistent Agreements</u>. The Company shall not hereafter enter into any agreement with respect to its securities which is inconsistent with or violates the rights granted to the holders of Registrable Securities in 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;(h) <u>Entire Agreement; No Third Party Beneficiaries</u>. This Agreement (<u>i</u>) constitutes the entire agreement among the parties with respect to the subject matter of this Agreement and supersede any prior discussions, correspondence, negotiation, proposed term sheet, agreement, understanding or agreement and there are no agreements, understandings, representations or warranties between the parties other than those set forth or referred to in this Agreement and (<u>ii</u>) except as provided in <u>Section ‎5</u> with respect to an Indemnified Party, is not intended to confer in or on behalf of any Person not a party to this Agreement (and their successors and assigns) any rights, benefits, causes of action or remedies with respect to the subject matter or any provision hereof.

&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) <u>Governing Law; Jurisdiction and Forum; Waiver of Jury Trial</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts executed and to be performed wholly within such State and without reference to the choice-of-law principles that would result in the application of the laws of a different jurisdiction.

&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;(ii) Each party to this Agreement irrevocably submits to the jurisdiction of the United States District Court for the Southern District of New York or any court of the State of New York located in such district any suit, action or other proceeding arising out of or relating to this Agreement, and hereby irrevocably agrees that all claims in respect of such suit, action or proceeding may be heard and determined in such court. Each party to this Agreement hereby irrevocably waives, to the fullest extent that it may effectively do so, the defense of an inconvenient forum to the maintenance of such suit, action or other proceeding. The parties further agree, to the extent permitted by law, that final and unappealable judgment against any of them in any suit, action or other proceeding contemplated above shall be conclusive and may be enforced in any other jurisdiction within or outside the United States by suit on the judgment, a certified copy of which shall be conclusive evidence of the fact and amount of such judgment.

&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;(iii) EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES 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 OR THE TRANSACTIONS CONTEMPLATED HEREBY.

&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) <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, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

&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) <u>Enforcement</u>. Each party hereto acknowledges that money damages would not be an adequate remedy in the event that any of the covenants or agreements in this Agreement are not performed in accordance with its terms, and it is therefore agreed that in addition to and without limiting any other remedy or right it may have, the non-breaching party will have the right to an injunction, temporary restraining order or other equitable relief in any court of competent jurisdiction enjoining any such breach and enforcing specifically the terms and provisions hereof. In any action or proceeding brought to enforce any provision of this Agreement, the successful party shall be entitled to recover reasonable attorneys' fees in addition to its costs and expenses and other available remedies.

&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) <u>Titles and Subtitles</u>. The titles of the sections and subsections of this Agreement are for convenience of reference only and will not affect the meaning or interpretation 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;(m) <u>No Recourse</u>. Notwithstanding anything that may be expressed or implied in this Agreement, the Company and each CD&R Stockholder covenant, agree and acknowledge that no recourse under this Agreement or any documents or instruments delivered in connection with this Agreement shall be had against any current or future director, officer, employee, shareholder, general or limited partner or member of any CD&R Stockholder or of any Affiliate thereof (in each case other than an assignee pursuant to <u>Section ‎8(d)</u> that is a Permitted Rights Transferee), whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any current or future director, officer, employee, shareholder, general or limited partner or member of any CD&R Stockholder or of any Affiliate or assignee thereof, as such for any obligation of any CD&R Stockholder under this Agreement or any documents or instruments delivered in connection with this Agreement for any claim based on, in respect of or by reason of such obligations or their creation.

&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) <u>Limitations on Subsequent Registration Rights</u>. From and after the date of this Agreement, the Company shall not, without the prior written consent of the CD&R Stockholders, enter into any agreement with any holder or prospective holder of any securities of the Company that would give such holder or prospective holder the right to include any securities in any Demand Registration, Shelf Takedown, Underwritten Offering or Piggyback Registration or other registration rights, in each case on terms which are more senior to, conflict with or are otherwise more favorable to such holder or prospective holder (including, for the avoidance of doubt, any such registration rights that adversely impact or dilute the priority rights of the CD&R Stockholders under <u>Section ‎2(h)</u> with respect to a Demand Request or a Shelf Takedown initiated by the CD&R Stockholders that is a Marketed Underwritten Offering) than the registration rights granted to the CD&R Stockholders hereunder and, if any such terms are pari passu to such rights granted hereunder, the Company shall consult with the CD&R Stockholders prior to entering into any such 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) <u>Counterparts; Facsimile Signatures</u>. This Agreement may be executed in any number of counterparts (including via facsimile and electronic transmission), each of which shall be an original, but all of which together shall constitute one instrument. This Agreement may be executed by facsimile signature(s).

[*Remainder of page left intentionally blank*]

IN WITNESS WHEREOF, each of the undersigned has executed this Agreement or caused this Agreement to be duly executed on its behalf as of the date first written above.

---

| |
|:---|
| **Company** |
| ADI GLOBAL DISTRIBUTION INC. |
| By: |
| Name: |
| Title: |

---

*[Signature Page to Registration Rights Agreement]*

---

| |
|:---|
| **CD&R Investor I** |
| CD&R CHANNEL HOLDINGS, L.P. |
| By: CD&R Investment Associates XII, Ltd. |
| Its: General Partner |
| By: |
| Name: |
| Title: |
| **CD&R Investor II** |
| CD&R CHANNEL HOLDINGS II, L.P. |
| By: CD&R Investment Associates XII, Ltd. |
| Its: General Partner |
| By: |
| Name: |
| Title: |

---

*[Signature Page to Registration Rights Agreement]*

## Exhibit 21.1

**Exhibit 21.1**

**ADI Global Distribution Inc.** 

**<u>Subsidiaries of the Registrant</u>**

The following entities are expected to be subsidiaries of ADI Global Distribution Inc. upon completion of the separation from Resideo Technologies, Inc. described in the information statement:

---

| | |
|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of Organization** |
| ADI Global Distribution Funding LLC | Delaware |
| Snap One Holdings Corp. | Delaware |
| ADI Global LLC | Delaware |
| ADI EMEA Limited | United Kingdom |
| Ademco SRL | Argentina |
| ADI Global Mexico | Mexico |
| ADI of Puerto Rico, Inc. | Puerto Rico |
| Snap One, LLC | North Carolina |
| ADI Global Canada Limited | Canada |
| Control4 Switzerland AG | Switzerland |
| Control4 India Pvt. Ltd. | India |
| Control4 Smart Control Technology Shanghai Co., Ltd | China |
| Snap One Australia Pty. Ltd. | Australia |
| Snap One APAC Pty. Ltd. | Australia |
| Snap One, LLC Taiwan Branch | China |
| SunBrite Holding Corp. | Delaware |
| SunBrite TV LLC | Delaware |
| ADI Global Distribution Denmark A/S | Denmark |
| ADI-Gardiner Limited | United Kingdom |
| ADI-Gardiner Netherlands B.V. | Netherlands |
| ADI-Gardiner NV | Belgium |
| ADI Global Czech Republic s.r.o | Czechia |
| ADI Global Germany GmbH | Germany |
| Ademco ADI Global Spain, S.L. | Spain |
| Ultrak Security Systems Sp.z.o.o. | Poland |
| ADI – Gardiner SAS | France |
| ADI Global Slovakia | Slovakia |
| ADI Global Distribution AB | Sweden |
| ADI-Gardiner Ireland Limited | Ireland |
| ADI Global DOO Beograd | Serbia |

---

## Exhibit 99.1

**Exhibit 99.1**

![](ea028883201_ex99-1img1.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026

Dear Resideo Technologies, Inc. ("Resideo") Stockholder:

On July 30, 2025, we announced our intention to separate our company into two independent, publicly traded companies. Completion of the separation will create (i) a leading building products manufacturer focused on residential controls and sensing solutions that maximize comfort, help to ensure safety and deliver cost savings and value to homeowners and businesses and (ii) a global specialty distributor, named ADI Global Distribution Inc. ("ADI"), which focuses on professionally installed low-voltage products, including security and audio-visual solutions, serving commercial and residential markets through an omnichannel go-to-market platform. Following the separation, each company is expected to benefit from enhanced strategic and management focus with improved operational agility, tailored capital structure and capital allocation strategies in line with each company's growth strategy, improved investor alignment with each company's value proposition, and the ability for investors to separately value each company based on its strategic, operational and financial characteristics.

ADI will be comprised of Resideo's existing ADI Global Distribution business and certain other assets and liabilities that Resideo is expected to contribute to ADI prior to the separation. As a stand-alone entity, ADI is expected to (i) pursue growth strategies designed to extend its position as a leading industry player, deepen differentiation from competitors and improve our financial profile, and (ii) maintain a balanced capital allocation policy focused on organic growth investments, disciplined deleveraging over time as well as targeted acquisitions.

As a standalone business, Resideo will continue to seek to expand its leading positions across attractive product categories serving critical home systems. Resideo is focused on creating differentiated products and will look to utilize its channel strength and trusted brands to deliver value to homeowners and professionals. Resideo's strategy is supported by long-term secular tailwinds and the opportunities to expand geographically and into adjacent categories to drive revenue growth, while maintaining strong margins and cash flow generation.

The separation will provide current Resideo common stockholders with ownership interests in both Resideo and ADI. The separation will be in the form of a pro rata distribution of 100% of the outstanding shares of ADI common stock to current Resideo common stockholders. Each Resideo common stockholder will receive share(s) of ADI common stock for each share of Resideo common stock held on , 2026 (the "record date" for the distribution).

You do not need to take any action to receive the shares of ADI common stock to which you are entitled as a Resideo common stockholder. You also do not need to pay any consideration or surrender or exchange the shares of Resideo common stock for such shares of ADI common stock to which you are entitled. ADI intends to apply to list its common stock on the New York Stock Exchange under the symbol "ADIG." Following the distribution, Resideo will continue to trade on the New York Stock Exchange under the symbol "REZI."

The distribution is intended to be tax-free to current Resideo common stockholders for U.S. federal income tax purposes, except for cash received in lieu of fractional shares. 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 and non-U.S. tax laws.

I encourage you to read the information statement, which is being provided to all Resideo common stockholders who held shares of Resideo common stock on the record date. The information statement describes the separation and the distribution in detail and contains important business and financial information about ADI.

We believe the separation is a significant and exciting step in our company's history, and we remain committed to working on your behalf to continue to build long-term stockholder value.

Sincerely,

Jay Geldmacher

*President, Chief Executive Officer and Director*

Resideo Technologies, Inc.

![](ea028883201_ex99-1img2.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2026

Dear Future ADI Global Distribution Inc. ("ADI") Stockholder:

We are excited to welcome you as a future stockholder of ADI. We are proud of our heritage and are committed to harnessing our experienced management team, talented employees, outstanding brand and strong industry position to continue our record of strong performance.

ADI is a global specialty distributor of professionally installed low-voltage products serving commercial and residential markets through an omnichannel go-to-market platform. Within North America, ADI is a market-leading distributor in the professionally installed security, fire/life safety and audio-visual product categories. ADI generated revenues of $4.8 billion during the year ended December 31, 2025 with over 100,000 customers via our omnichannel go-to-market platform leveraging e-commerce and an integrated network of over 200 locations spanning 17 countries.

As a stand-alone company, we expect to (i) pursue growth strategies designed to extend our position as a leading industry player, deepen differentiation from competitors and improve our financial profile, and (ii) maintain a balanced capital allocation policy focused on organic growth investments, disciplined deleveraging over time as well as targeted acquisitions.

Our outstanding team has a strong Resideo legacy and seeks to make continuous improvement part of everything we do.

I personally invite you to learn more about ADI and our strategic initiatives by reading the accompanying information statement. We intend to apply to list our common stock on the New York Stock Exchange under the symbol "ADIG." With our strong foundation derived from Resideo, ADI is set up well for what we believe will be our best days to come.

Sincerely,

Robert Aarnes

*President and Chief Executive Officer*

ADI Global Distribution Inc.

**Information contained herein is subject to completion or amendment. A registration statement on Form 10 relating to these securities has been filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.**

**Preliminary and Subject to Completion, dated May 11, 2026**

**INFORMATION STATEMENT**

**ADI Global Distribution Inc.** 

**Common Stock**

**(par value $0.001 per share)**

This information statement is being furnished in connection with the distribution on a pro rata basis by Resideo Technologies, Inc. ("Resideo") to its common stockholders of 100% of the outstanding shares of common stock of ADI Global Distribution Inc. (the "Spin-Off"), a wholly-owned subsidiary of Resideo, that will hold, directly or indirectly, the assets and liabilities associated with Resideo's ADI Global Distribution business ("ADI" or the "Company").

For each share of Resideo common stock held of record by you as of the close of business on , 2026, the record date for the distribution, you will receive share(s) of ADI common stock. You will receive cash in lieu of any fractional shares of ADI common stock that you would have received after application of the above ratio. Resideo will distribute its shares of our common stock in book-entry form, which means that we will not issue physical stock certificates.

The distribution agent will not distribute any fractional shares of our common stock. The distribution is intended to qualify as tax-free to Resideo common stockholders for U.S. federal income tax purposes, except for any cash received in lieu of fractional shares.

Approval from Resideo common stockholders is not required for the distribution. **Therefore, you are not being asked for a proxy, and you are requested not to send Resideo a proxy, in connection with the distribution.** You do not need to pay any consideration, exchange or surrender your existing shares of Resideo common stock or take any other action to receive your shares of ADI common stock.

Holders of Resideo preferred stock will not be entitled by virtue of their Resideo preferred stock to receive shares of our common stock in the Spin-Off and instead will exchange a portion of the Resideo preferred stock they currently hold for shares of ADI preferred stock. In connection with the Spin-Off, we expect certain terms of the Resideo preferred stock to be amended to be consistent with the terms of the ADI preferred stock described herein. Specifically, we expect the lock-up period applicable to the Resideo preferred stock to be extended to match the Lock-Up Period applicable to the ADI preferred stock, and that Resideo's right, in certain circumstances, to convert or redeem the Resideo preferred stock will not be exercisable until after the expiration of the Lock-Up Period. As a result, following the Spin-Off, shares of ADI preferred stock and Resideo preferred stock are expected to have substantially similar rights, preferences and privileges and qualifications, limitations and restrictions. The amount of Resideo preferred stock exchanged for ADI preferred stock and the conversion prices of the Resideo preferred stock and ADI preferred stock will be based on the relative equity values of Resideo and ADI as have been determined by the Board of Resideo, in consultation with the holders of Resideo preferred stock. See "Description of Capital Stock—Preferred Stock" and "Certain Relationships and Related Person Transactions—Exchange Agreement, Shareholders Agreement and ADI Preferred Stock Exchange" for more information on the ADI preferred stock.

No trading market for our common stock currently exists. We expect, however, that a limited trading market for our common stock, commonly known as a "when-issued" trading market, will develop as early as three trading days prior to the distribution date, and we expect "regular-way" trading of our common stock will begin on the first trading day after the distribution date. ADI intends to apply to have its common stock authorized for listing on the New York Stock Exchange (the "NYSE") under the symbol "ADIG." Following the distribution, Resideo will continue to trade on the NYSE under the symbol "REZI."

**In reviewing this information statement, you should carefully consider the matters described under the caption "Risk Factors" beginning on page 13.**

**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 , 2026.**

A Notice of Internet Availability of Information Statement Materials containing instructions describing how to access this information statement was first mailed to Resideo common stockholders on or about , 2026. This information statement will be mailed to Resideo's common stockholders who previously elected to receive a paper copy of Resideo's materials.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [QUESTIONS AND ANSWERS ABOUT THE SEPARATION AND DISTRIBUTION](#b_001) | v |
| [INFORMATION STATEMENT SUMMARY](#b_002) | 1 |
| [SUMMARY HISTORICAL AND UNAUDITED PRO FORMA COMBINED FINANCIAL DATA](#b_003) | 11 |
| [RISK FACTORS](#b_004) | 13 |
| [CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS](#b_005) | 43 |
| [DIVIDEND POLICY](#b_006) | 44 |
| [CAPITALIZATION](#b_007) | 45 |
| [UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS](#b_008) | 46 |
| [NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS](#b_009) | 50 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#b_010) | 54 |
| [BUSINESS](#b_011) | 73 |
| [MANAGEMENT](#b_012) | 81 |
| [EXECUTIVE COMPENSATION](#b_013) | 90 |
| [DIRECTOR COMPENSATION](#b_014) | 115 |
| [CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS](#b_015) | 116 |
| [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#b_016) | 126 |
| [THE SEPARATION AND DISTRIBUTION](#b_017) | 128 |
| [MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES](#b_018) | 134 |
| [DESCRIPTION OF MATERIAL INDEBTEDNESS](#b_019) | 138 |
| [DESCRIPTION OF CAPITAL STOCK](#b_020) | 139 |
| [WHERE YOU CAN FIND MORE INFORMATION](#b_021) | 143 |
| [INDEX TO THE COMBINED FINANCIAL STATEMENTS](#b_022) | F-1 |
| [REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#a_001) | F-2 |

---

i

**Presentation of Information**

Unless otherwise indicated or the context otherwise requires, references in this information statement to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "ADI Funding" refers to ADI Global Distribution Funding
LLC, a Delaware limited liability company and a wholly-owned subsidiary of ADI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the "ADI Global Distribution business" refers
to the assets and liabilities of Resideo's ADI Global Distribution segment as defined in the separation agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "ADI preferred stock" refers to the Series A Cumulative Convertible Participating Preferred Stock of ADI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "ADI preferred stock exchange" refers to the exchange by the Preferred Stockholders of a portion of their shares of Resideo preferred stock for shares of ADI preferred stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "ADI Certificate of Designations" refers to the Certificate of Designations,
Preferences and Rights of Series A Cumulative Convertible Participating Preferred Stock of ADI, a form of which is filed as an exhibit
to the registration statement of which this information statement forms a part, and which will become part of our certificate of incorporation
as part of the Spin-Off;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "AI technologies" means, within the context of our business, both proprietary and third-party generative and predictive artificial intelligence ("AI") and machine learning technologies that are used (i) in our products and services to enhance functionality and improve user experience, (ii) on our websites and other IT platforms to enhance customer experience, (iii) internally in product and software development and (iv) by our internal teams to increase efficiency, effectiveness and provide data insights across our enterprise operations;

(vii) the "Board" or "our Board" refers to the board of directors of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the "bylaws" refers to our amended and restated bylaws of ADI that will become effective
as part of the Spin-Off, the form of which is filed as an exhibit to this information statement;

(ix) "CD&R" refers to Clayton, Dubilier & Rice LLC;

(x) the "CD&R Group" refers to CD&R, any private equity fund managed or advised by CD&R or any general partner thereof, or any of their respective affiliates;

(xi) "CD&R Holdings" refers to CD&R Channel Holdings, L.P., an entity affiliated with CD&R;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) the "certificate of incorporation" refers to our amended and
restated certificate of incorporation of ADI that will become effective as part of the Spin-Off, the form of which is filed as an exhibit
to this information statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) the "Company," "ADI," "we," "us," and "our" refer to ADI Global Distribution Inc., a Delaware corporation, and its consolidated subsidiaries after giving effect to the Spin-Off;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) the "Exchange" refers to the New York Stock Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) the "Financing" refers to the debt financing in connection with the Spin-Off, as further described under the section entitled "Description of Material Indebtedness" ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) the "Indemnification Agreement" refers to the Indemnification
and Reimbursement Agreement dated October 14, 2018, that was entered into by and between Honeywell International Inc. ("Honeywell")
and New HAPI Inc. (as predecessor to Resideo Intermediate Holding Inc.) in connection with
the separation of Resideo from Honeywell in 2018. T he Indemnification Agreement was terminated on
August 13, 2025, as described under the section entitled "Management's Discussion and Analysis of Financial Condition
and Results of Operations—Capital Resources and Liquidity—Indemnification Agreement";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) the "Lock-Up Period" refers to the period from the consummation of the Spin-Off to the second anniversary thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) the "Preferred Stockholders" refer to CD&R
Holdings, and any transferee thereof, including an entity controlled by one of our director nominees . See "Security Ownership
of Certain Beneficial Owners and Management" ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) the "Reorganization Transactions" refer to a series of internal reorganization transactions that Resideo has undertaken or will undertake prior to, or at, the Spin-Off, pursuant to which, among other transactions, ADI will hold, through its subsidiaries, the ADI Global Distribution business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) "Resideo" refers to Resideo Technologies, Inc., a Delaware corporation, and its consolidated subsidiaries;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) the "Resideo Board" refers to the board of directors of Resideo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) "Resideo Certificate of Designations" refers to the Certificate of Designations, Preferences and Rights of Resideo preferred stock, dated June 14, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) "Resideo preferred stock" refers to the Series A Cumulative Convertible Participating Preferred Stock of Resideo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) the "Spin-Off" refers to the transaction in which Resideo will distribute to its common stockholders 100% of the shares of our common stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxv) "stockholders" refers to stockholders of Resideo or stockholders of ADI, depending on the context.

Certain percentages and other figures provided and used in this information statement may not add up to 100.0% due to the rounding of individual components.

On July 30, 2025, Resideo announced its intention to separate its ADI Global Distribution business from the remainder of its businesses. On , 2026, the Resideo Board approved the distribution of 100% of our issued and outstanding shares of common stock on the basis of share(s) of our common stock for each share of Resideo common stock held as of the close of business on , 2026, the record date for the distribution.

As of , 2026, Resideo had 500,000 outstanding shares of Resideo preferred stock. Holders of Resideo preferred stock will not be entitled by virtue of their Resideo preferred stock to receive shares of our common stock in the Spin-Off and will instead, substantially concurrently with the Spin-Off, exchange a portion of the Resideo preferred stock they currently hold for shares of ADI preferred stock. In connection with the Spin-Off, we expect certain terms of the Resideo preferred stock to be amended to be consistent with the terms of the ADI preferred stock described herein. Specifically, we expect the lock-up period applicable to the Resideo preferred stock to be extended to match the Lock-Up Period applicable to the ADI preferred stock, and that Resideo's right, in certain circumstances, to convert or redeem the Resideo preferred stock will not be exercisable until after the expiration of the Lock-Up Period. As a result, following the Spin-Off, shares of ADI preferred stock and Resideo preferred stock are expected to have substantially similar rights, preferences and privileges and qualifications, limitations and restrictions. The amount of Resideo preferred stock exchanged for ADI preferred stock and the conversion prices of the Resideo preferred stock and ADI preferred stock will be based on the relative equity values of Resideo and ADI as have been determined by the Resideo Board, in consultation with the holders of Resideo preferred stock. As a result, immediately following the Spin-Off, shares of Resideo preferred stock will remain issued and outstanding, shares of Resideo preferred stock will be cancelled and shares of ADI preferred stock will be issued and outstanding. All accrued and unpaid dividends on Resideo preferred stock will be paid in cash immediately prior to the ADI preferred stock exchange and the aggregate liquidation preference of the preferred stock of Resideo and ADI immediately after the Spin-Off will equal the total liquidation preference (defined as the Accumulated Amount in the Resideo Certificate of Designations) of the Resideo preferred stock immediately prior to the Spin-Off. The shares of Resideo preferred stock that remain outstanding will continue to have the same rights, preferences and privileges and qualifications, limitations and restrictions set forth in Resideo's public filings with the SEC except as otherwise specified in this information statement. See "Description of Capital Stock—Preferred Stock" and "Certain Relationships and Related Person Transactions—Exchange Agreement, Shareholders Agreement and ADI Preferred Stock Exchange" for more information on ADI preferred stock.

Immediately following the Spin-Off, the CD&R Group will beneficially own shares of our common stock and ADI preferred stock, which, taken together on an as-converted basis, represent approximately % of our total voting power. As a result, the CD&R Group may have the indirect ability to influence our policies and operations, including through its ability to designate up to two directors to our board of directors, and its interests as a preferred equity holder may diverge from, or even conflict with, the interests of the other holders of our common stock. See "Risk Factors—The CD&R Group will hold a significant equity interest in our business and may exercise influence over us, including through its ability to designate up to two directors to our Board, and its interests as a preferred equity holder may diverge from, or even conflict with, the interests of the other holders of our common stock."

**Basis of Presentation**

We have historically operated as a part of Resideo and have no operating history as a standalone company. As a result, separate combined financial statements have not historically been prepared. Our historical combined financial statements included elsewhere in this information statement were prepared on a "carve-out" basis in connection with the expected Spin-Off and have been derived from Resideo's historical accounting records. The combined financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") and Resideo's historical accounting policies. These combined financial statements do not purport to reflect what the financial position, results of operations, comprehensive income or cash flows would have been had the Company operated as a separate, stand-alone entity during the periods presented. Refer to *Note 1. Description of the Business and Basis of Presentation* to the combined financial statements included elsewhere in this information statement for additional information.

Our historical combined statements of operations include expense allocations for certain corporate expenses provided by Resideo on a centralized basis, including, but not limited to corporate executives, finance, legal, audit, mergers and acquisitions, human resources, information technology, insurance, employee benefits, and other expenses that are either specifically identifiable or clearly applicable to us. These expenses have been allocated to us on the basis of direct usage when identifiable, with the remainder allocated on a pro rata basis using an applicable measure of operating income, headcount or other allocation methodologies that are considered to be a reasonable reflection of the utilization of services provided or the benefit received by us during the periods presented.

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Certain related-party transactions between the Company and Resideo have been included in our historical combined financial statements included elsewhere in this information statement. Additionally, we are jointly and severally liable for Resideo's debt and were jointly and severally liable for Resideo's obligations under the Indemnification Agreement prior to the termination thereof on August 13, 2025. See "Certain Relationships and Related Person Transactions" as well as *Note 9. Long-Term Debt, Note 10. Indemnification Agreement* and *Note 16. Related Party Transactions* to the combined financial statements included elsewhere in this information statement for additional information.

**Non-GAAP Financial Data**

All financial information presented in this information statement is derived from the combined financial statements of the Company included elsewhere in this information statement. All financial information presented in this information statement has been prepared in U.S. Dollars in accordance with GAAP, except for the presentation of the following non-GAAP financial measures: Adjusted net income, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted free cash flow.

We present Adjusted net income, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted free cash flow in this information statement because we believe such measures provide investors with additional supplemental 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 and their limitations. Because of their limitations, these non-GAAP financial measures are not intended as alternatives to U.S. GAAP measures as indicators of our operating performance and should not be considered as measures of cash available to us to invest in the growth of our business or that will be available to us to meet our obligations. We compensate for these limitations by using these non-GAAP financial measures along with other comparative tools, together with GAAP measures, to assist in the evaluation of operating performance.

For more information on the use of Adjusted net income, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted free cash flow and reconciliations to the nearest GAAP measures, see "Summary Historical and Unaudited Pro Forma Combined Financial Data" and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures."

**Market, Industry and Other Data**

Unless otherwise indicated, information contained in this information statement concerning our industry and the markets in which we operate, including our general expectations, market position and market opportunity, is based on information from third-party sources and management estimates. Our management estimates are derived from publicly available information, our knowledge of our industry and assumptions based on such information and knowledge, which we believe to be reasonable. Our management estimates have not been verified by any independent source. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances that are assumed in this information statement. In addition, assumptions and estimates of our and our industry's future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "Risk Factors." These and other factors could cause future performance to differ materially from our assumptions and estimates. Forecasts and other forward-looking information with respect to industry, business, market and other data are subject to the same qualifications and additional uncertainties regarding the other forward-looking statements in this information statement. See "Cautionary Statement Concerning Forward-Looking Statements" for more information.

This information statement also includes references to our "Net Promoter Score" or "NPS", which we use to measure our customers' brand loyalty and satisfaction, and can range from -100 to +100. Responses were collected in 2025 as part of quarterly, non-overlapping customer surveys conducted by management of over 3,300 customers. Responses were collected from 0, Not Likely, to 10, Very Likely. Customers who responded 6 or lower are considered detractors, those who responded 7 to 8 passives and those who responded 9 or 10 promoters. Our NPS was calculated by using the standard methodology of subtracting the percentage of customers who were detractors from the percentage of customers who were promoters. Customers who declined to answer are excluded from the calculation. While NPS benchmarking can vary significantly by industry, we believe this method is substantially consistent with how businesses across our industry typically calculate their NPS.

**Trademarks and Trade Names**

The name and mark, ADI, and other trademarks, trade names and service marks of the Company appearing in this information statement are our property or, as applicable, licensed to us, or, as applicable, are the property of Resideo. The name and mark, Resideo, and other trademarks, trade names and service marks of Resideo appearing in this information statement are the property of, or have been licensed to, Resideo. This information statement also contains additional trade names, trademarks and service marks belonging to other companies. We do not intend our use or display of 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, these other parties.

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

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|  ***What is the Spin-Off?*** | The Spin-Off is the method by which ADI will separate from Resideo. In the Spin-Off, Resideo will distribute to Resideo common stockholders all the outstanding shares of our common stock. Following the Spin-Off, ADI will be an independent, publicly traded company, and Resideo will not retain any ownership interest in ADI. |
| ***What is ADI and why is Resideo separating ADI's businesses and distributing ADI's stock?*** | ADI, which is currently a wholly-owned subsidiary of Resideo, was incorporated in Delaware on December 10, 2025 and will hold, directly or indirectly upon the completion of the Spin-Off, the assets and liabilities associated with Resideo's ADI Global Distribution business as described in the separation agreement. The separation of ADI from Resideo and the distribution of ADI common stock are intended to create two separate, publicly traded companies that will be able to focus on each of their respective business strategies. The separation is expected to, among other things, allow each of Resideo and ADI to have an independent corporate strategy and distinct profit drivers, allowing each company to effectively allocate its respective resources and manage its capital in line with its strategic priorities. Resideo and ADI believe that the separation will result in enhanced long-term performance of each business for the reasons discussed in the sections entitled "The Separation and Distribution—Background" and "The Separation and Distribution—Reasons for the Separation." |
| ***Why am I receiving this document?*** | Resideo is delivering this document to you because you are a holder of record of shares of Resideo common stock. If you are a holder of Resideo common stock as of the close of business on , 2026, the record date of the distribution, you will be entitled to receive share(s) of ADI common stock for each share of Resideo common stock that you held 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 of Resideo and us. |
| ***How will the separation of ADI from Resideo work?*** | As part of the separation, and prior to the distribution, Resideo and its subsidiaries expect to complete the Reorganization Transactions to transfer to ADI the ADI Global Distribution business that ADI will own following the separation. To accomplish the separation of ADI into a separate, publicly-traded company, Resideo will distribute 100% of the outstanding shares of our common stock to Resideo common stockholders on a pro rata basis in a distribution intended to be tax-free for U.S. federal income tax purposes, except for cash received in lieu of fractional shares. |
| ***What is the record date for the distribution?*** | The record date for the distribution will be , 2026. |
| ***When will the distribution occur?*** | It is expected that 100% of our common stock will be distributed by Resideo at , Eastern Time, on , 2026, to holders of record of Resideo common stock at the close of business on , 2026, the record date for the distribution. |
| ***What do stockholders need to do to participate in the distribution?*** | Common stockholders of Resideo as of the record date will not be required to take any action or pay any consideration to receive our common stock in the distribution, but you are urged to read this entire information statement carefully. Stockholder approval is not required, so if you do not want to receive our common stock in the distribution, you should sell your Resideo common stock prior to the record date for the distribution. As no vote of Resideo common stockholders is required for the distribution, you are not being asked for a proxy, and you are requested not to send Resideo a proxy in connection with the distribution. You do not need to pay any consideration, exchange or surrender your existing shares of Resideo common stock. The distribution will not affect the number of outstanding Resideo shares of common stock or any rights of Resideo common stockholders, although it will affect the market value of each outstanding share of Resideo common stock. |

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| ***How will shares of ADI common stock be issued?*** | You will receive shares of ADI common stock through the same or substantially similar channels that you currently use to hold or trade shares of Resideo common stock, whether through a brokerage account, 401(k) plan or other channel. Receipt of shares of ADI common stock will be documented for you in substantially the same manner that you typically receive stockholder updates, such as monthly broker statements and 401(k) statements. If you own shares of Resideo common stock as of the close of business on the record date, Resideo, with the assistance of Broadridge Corporate Issuer Solutions, LLC ("Broadridge"), the settlement and distribution agent, will electronically distribute shares of ADI common stock to you or to your brokerage firm on your behalf by way of direct registration in book-entry form. Broadridge will mail you a book-entry account statement that reflects your shares of our common stock, or your bank or brokerage firm will credit your account for the shares. |
| ***How many shares of ADI common stock will I receive in the distribution?*** | Resideo will distribute to you share(s) of ADI common stock for each share of Resideo common stock held by you as of the record date for the distribution. Based on approximately shares of Resideo common stock outstanding as of , 2026, ADI expects that a total of approximately shares of ADI common stock will be distributed to Resideo's common stockholders. For additional information on the distribution, see the section entitled "The Separation and Distribution." |
| ***Will ADI issue fractional shares of its common stock in the distribution?*** | No. We will not issue fractional shares of our common stock in the distribution. The receipt of cash in lieu of fractional shares is described in the section entitled "Material U.S. Federal Income Tax Consequences." |
| ***What will happen to the Resideo preferred stock as a result of the Spin-Off?*** | Holders of Resideo preferred stock will not be entitled by virtue of their Resideo preferred stock to receive shares of our common stock in the Spin-Off and instead will exchange a portion of the Resideo preferred stock they currently hold for shares of ADI preferred stock. In connection with the Spin-Off, we expect certain terms of the Resideo preferred stock to be amended to be consistent with the terms of the ADI preferred stock described herein. Specifically, we expect the lock-up period applicable to the Resideo preferred stock to be extended to match the Lock-Up Period applicable to the ADI preferred stock, and that Resideo's right, in certain circumstances, to convert or redeem the Resideo preferred stock will not be exercisable until after the expiration of the Lock-Up Period. As a result, following the Spin-Off, shares of ADI preferred stock and Resideo preferred stock are expected to have substantially similar rights, preferences and privileges and qualifications, limitations and restrictions. The amount of Resideo preferred stock exchanged for ADI preferred stock and the conversion prices of the Resideo preferred stock and ADI preferred stock will be based on the relative equity values of Resideo and ADI as have been determined by the Resideo Board, in consultation with the holders of Resideo preferred stock. As a result, immediately following the Spin-Off, shares of Resideo preferred stock will remain issued and outstanding, shares of Resideo preferred stock will be cancelled and shares of ADI preferred stock will be issued and outstanding. All accrued and unpaid dividends on Resideo preferred stock will be paid in cash immediately prior to the ADI preferred stock exchange and the aggregate liquidation preference of the preferred stock of Resideo and ADI immediately after the Spin-Off will equal the total liquidation preference (defined as the Accumulated Amount in the Resideo Certificate of Designations) of the Resideo preferred stock immediately prior to the Spin-Off. See "Description of Capital Stock—Preferred Stock" and "Certain Relationships and Related Person Transactions—Exchange Agreement, Shareholders Agreement and ADI Preferred Stock Exchange" for more information on ADI preferred stock.<br>Immediately following the Spin-Off, the CD&R Group will beneficially own shares of our common stock and ADI preferred stock, which, taken together on an as-converted basis, represent approximately % of our total voting power. As a result, the CD&R Group may have the indirect ability to influence our policies and operations, including through its ability to designate up to two directors to our board of directors, and its interests as a preferred equity holder may diverge from, or even conflict with, the interests of the other holders of our common stock. See "Risk Factors—The CD&R Group will hold a significant equity interest in our business and may exercise influence over us, including through its ability to designate up to two directors to our Board, and its interests as a preferred equity holder may diverge from, or even conflict with, the interests of the other holders of our common stock." |

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|:---|:---|
| ***What are the conditions to the distribution?*** | The Resideo Board must give its final approval of the distribution and certain conditions must be satisfied (or waived by the Resideo Board), including: |

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● the Resideo Board shall have approved the Spin-Off and not withdrawn such approval, and shall have declared the dividend of our common stock to Resideo common stockholders;

● the transfer of assets and liabilities to us in accordance with the separation agreement will have been completed, other than any assets and liabilities intended to transfer after the distribution pursuant to the separation agreement;

● the receipt by Resideo and continuing validity of a private letter ruling from the Internal Revenue Service (the "IRS") and/or an opinion of its outside tax advisors, in each case, satisfactory to the Resideo Board, regarding the qualification of the distribution, together with certain related transactions, as a "reorganization" within the meaning of Sections 368(a)(1)(D) and 355 of the Internal Revenue Code of 1986, as amended (the "Code"), and which ruling and/or opinion, as applicable, shall not have been withdrawn, rescinded or modified in any material respect;

● the U.S. Securities and Exchange Commission (the "SEC") will have declared effective the registration statement on Form 10 of which this information statement forms a part, no stop order suspending the effectiveness of the registration statement will be in effect, no proceedings for such purpose will be pending before or threatened by the SEC and this information statement will have been made available to Resideo common stockholders;

● all registrations, consents and filings required under the securities or blue sky laws of states or other political subdivisions of the United States or of other foreign jurisdictions in connection with the separation will have been received or made;

● the agreements relating to the separation will have been duly executed and delivered by the parties;

● no order, injunction or decree issued by any court of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the separation, the distribution or any of the related transactions will be in effect;

● the shares of our common stock to be distributed will have been accepted for listing on the NYSE, subject to official notice of distribution;

● the transactions contemplated by the Exchange Agreement will have been consummated;

● an independent appraisal firm shall have delivered a solvency opinion relating to Resideo and ADI;

● the Financing described under the section entitled "Description of Material Indebtedness" will have been completed; and

● no other event or development will have occurred or exist that, in the judgment of Resideo's board of directors, in its sole and absolute discretion, makes it inadvisable to effect the separation, the distribution or the other related transactions.

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|:---|:---|
| ***What is the expected date of completion of the separation and distribution?*** | It is expected that the shares of ADI common stock will be distributed by Resideo at , Eastern Time, on , 2026 to the holders of record of shares of Resideo common stock at the close of business on , 2026, the record date for the distribution. No assurance can be provided as to the timing of the separation or that all conditions to the distribution will be met. |
| ***Can Resideo decide to cancel the distribution of ADI common stock even if all the conditions have been met?*** | **Yes. Until the distribution has occurred, Resideo has the right to terminate, modify or abandon the distribution, even if all of the conditions set forth in the section "The Separation and Distribution—Conditions to the Distribution" are satisfied.** |
| ***What if I want to sell my Resideo common stock or my ADI common stock?*** | You should consult with your financial advisor, such as your stockbroker, bank or tax advisor. |
| ***What is "regular-way" and "ex-distribution" trading of Resideo stock?*** | We anticipate that, as early as three trading days prior to the distribution date and continuing up to and including the distribution date, there will be two markets in Resideo common stock: a "regular-way" market and an "ex-distribution" market. Shares of Resideo common stock that trade on the regular-way market will trade with an entitlement to receive shares of our common stock in the Spin-Off. Shares that trade on the ex-distribution market will trade without an entitlement to receive shares of our common stock in the Spin-Off. Therefore, if you sell shares of Resideo common stock in the regular-way market up to and including the distribution date, you will be selling your right to receive shares of our common stock in the Spin-Off. However, if you own shares of Resideo common stock at the close of business on the record date and sell shares of Resideo common stock on the ex-distribution market up to and including the distribution date, you will still receive the shares of our common stock that you would otherwise be entitled to receive in the Spin-Off. See "The Separation and Distribution—Trading Between the Record Date and the Distribution Date." |
| ***Where will I be able to trade shares of ADI common stock?*** | No trading market for our common stock currently exists. We expect, however, that our common stock will begin trading on a "when-issued" basis as early as three trading days prior to the distribution date and will continue up to and including the distribution date. "When-issued" trading in the context of a spin-off refers to a sale or purchase made conditionally on or before the distribution date because the securities of the spun-off entity have not yet been distributed. "When-issued" trades generally settle within two trading days after the distribution date. On the first trading day following the distribution date, any "when-issued" trading of our common stock will end and "regular-way" trading will begin. See "The Separation and Distribution—Trading Between the Record Date and the Distribution Date." We cannot predict the trading prices for our common stock before, on or after the distribution date. ADI intends to apply to have its common stock authorized for listing on the NYSE under the symbol "ADIG." |
| ***What will happen to the listing of Resideo common stock?*** | Resideo common stock will continue to trade on the NYSE after the distribution under the symbol "REZI." |
| ***Will the number of shares of Resideo common stock that I own change as a result of the distribution?*** | No. The number of shares of Resideo common stock that you own will not change as a result of the distribution. |

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|:---|:---|
| ***Will the distribution affect the market price of my Resideo shares?*** | Yes. As a result of the distribution, Resideo expects the trading price of shares of Resideo common stock immediately following the distribution to be lower than 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 ADI Global Distribution business held by us. There can be no assurance that the aggregate market value of the Resideo common stock and our common stock following the separation will be higher or lower than the market value of Resideo common stock if the separation did not occur. This means, for example, that the combined trading prices of one share of Resideo common stock and share(s) of our common stock after the distribution may be equal to, greater than or less than the trading price of one share of Resideo 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 Resideo receive a private letter ruling from the IRS and/or an opinion of its outside tax advisors, in each case, satisfactory to the Resideo Board, regarding the qualification of the distribution, together with certain related transactions, as a "reorganization" within the meaning of Sections 368(a)(1)(D) and 355 of the Code, and which ruling and/or opinion, as applicable, shall not have been withdrawn, rescinded or modified in any material respect.<br>If the distribution, together with certain related transactions, so qualifies, it is expected that Resideo common stockholders generally will not recognize any gain or loss for U.S. federal income tax purposes upon receipt of ADI common stock pursuant to the distribution, except with respect to any cash received in lieu of fractional shares.<br>You should consult your tax advisor as to the particular tax consequences of the separation and distribution to you, including the applicability and effect of any U.S. federal, state and local and non-U.S. 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 ADI's relationship be with Resideo following the separation?*** | We expect to enter into a separation and other agreements with Resideo to effect the separation and provide a framework for our relationship with Resideo after the separation. These agreements will govern the separation between us and Resideo of the assets, employees, services, liabilities and obligations (including its investments, property and employee benefits and tax-related assets and liabilities) of Resideo and its subsidiaries attributable to periods prior to, at and after our separation from Resideo and will govern certain relationships between us and Resideo after the separation. For additional information regarding the separation agreement and other transaction agreements, see the sections entitled "Risk Factors—Risks Relating to the Spin-Off and Our Relationship with Resideo," "Certain Relationships and Related Person Transactions" and "The Separation and Distribution." |
| ***Who will manage ADI after the separation?*** | ADI's management team will be led by Robert Aarnes, who will be ADI's President and Chief Executive Officer. For more information regarding ADI's management, see the section entitled "Management." |
| ***Are there risks associated with owning ADI common stock?*** | Yes. Ownership of our common stock is subject to both general and specific risks, including those relating to our businesses, the industries in which we operate, the separation, our ongoing contractual relationships with Resideo after the separation and our status as a separate, publicly traded company. These risks are described in the "Risk Factors" section of this information statement beginning on page 13. |

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|:---|:---|
| ***Does ADI plan to pay dividends?*** | ADI has not yet determined whether it expects to pay a regular dividend on its common stock after the separation and distribution. The timing, declaration, amount and payment of any dividends on the common stock of ADI following the separation and distribution will be within the discretion of ADI's board of directors (our "Board" or the "Board") and will depend upon many factors. See the section entitled "Dividend Policy." |
| ***Will ADI incur any indebtedness prior to or at the time of the distribution?*** | Yes. In connection with the Spin-Off, we expect to incur indebtedness in an aggregate principal amount of approximately $1.0 billion, which is expected to consist of a term credit facility and a series of debt securities (the "Financing"). The terms of such indebtedness are subject to change and will be finalized prior to the closing of the Spin-Off. We intend to make a one-time cash dividend of approximately $900 million of the net proceeds of the Financing as partial consideration for the contribution of assets and liabilities to us by Resideo. We will also use the net proceeds to pay related fees and expenses, with any remainder to be retained for general corporate purposes. We expect that the credit agreement governing the term credit facility described above will also contain a revolving credit facility with commitments for borrowings of up to $500 million, which we expect will be undrawn upon completion of the Spin-Off. We expect that Resideo will use these cash proceeds to repay a portion of its outstanding indebtedness and related fees and expenses and, to the extent any proceeds remain after giving effect to such payments, for general corporate purposes.<br>See the sections entitled "Description of Material Indebtedness" and "Risk Factors—Risks Relating to Our Business." |
| ***Who will be the distribution agent, transfer agent, registrar and information agent for the ADI common stock?*** | The distribution agent, transfer agent and registrar for our common stock will be Broadridge. For questions relating to the transfer or mechanics of the distribution, you should contact:<br>Broadridge Corporate Issuer Solutions, LLC<br> P.O. Box 1342<br> Brentwood, NY 11717<br> United States<br>If your shares are held by a bank, broker or other nominee, you may call the information agent for the distribution, Broadridge, toll-free at (844) 972-0573. |
| ***Where can I find more information about Resideo and ADI?*** | Before the distribution, if you have any questions relating to Resideo's business performance, you should contact:<br>Resideo Technologies, Inc.<br> 16100 N. 71st Street, Suite 550<br> Scottsdale, Arizona 85254<br> Attention: Investor Relations<br>After the distribution, ADI stockholders who have any questions relating to our business performance should contact us at:<br>ADI Global Distribution Inc.<br> 275 Broadhollow Rd Suite 400<br> Melville, New York 11747<br> Attention: Investor Relations<br>We maintain a website at *www.adiglobal.com*. Our website, and the information contained therein, or connected thereto, is not incorporated by reference into this information statement. |

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**INFORMATION STATEMENT SUMMARY**

*This summary highlights information included elsewhere in this information statement and does not contain all of the information that may be important to you. You should read this entire information statement carefully, including the sections entitled "Risk Factors," "Cautionary Statement Concerning Forward-Looking Statements," "Summary Historical and Unaudited Pro Forma Combined Financial Data," "Unaudited Pro Forma Combined Financial Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our combined financial statements and the notes thereto (the "combined financial statements").*

**Our Company**

ADI is a global specialty distributor of professionally installed low-voltage products serving commercial and residential markets through an omnichannel go-to-market platform. Within North America, ADI is the market-leading distributor in the professionally installed security, fire/life safety and audio-visual ("AV") product categories. We offer over 500,000 products from more than 1,000 suppliers across key specialty low-voltage categories with strong proximity to our customers with a large network of store locations. Our omnichannel platform is underpinned by a digital experience designed to deepen customer engagement and broaden our reach. We combine an extensive third-party product portfolio and deep supplier relationships with a growing suite of exclusive brands and software-based services. These exclusive brands and services are designed to help our customers build stronger businesses, differentiate our offerings and improve the end user experience. We are headquartered in Melville, New York, with a workforce of over 4,100 associates located in 20 countries. In 2025 and 2024, ADI generated revenues of $4.8 billion and $4.2 billion, net loss of $261 million and $18 million and Adjusted EBITDA of $318 million and $286 million, respectively.

ADI sells primarily to professional installers, dealers and integrators. Our global customer base of over 100,000 professionals spans independent contractors, regional and national systems integrators and low-voltage specialists (security, fire/life safety, AV and data communications). Our customers serve a number of end users, including small and medium businesses, large enterprises and institutions (e.g., in education, retail, hospitality and industrial sectors) and residential homes. We estimate that 67% of our product sales are installed in commercial end markets with the remaining 33% in residential locations. Demand for our products is driven, among other things, by building activity, retrofit/upgrade cycles, building regulations and standards (e.g., fire/life safety codes) and growing adoption of connected technologies in commercial facilities and homes.

We serve our customers through an omnichannel go-to-market platform – leveraging e-commerce and an integrated network of over 200 locations and more than 20 distribution centers spanning 17 countries (including third-party logistics) as well as robust digital storefronts, including our website and mobile app, each of which is designed to meet the needs of professional installers. We believe our global footprint gives us distinct scale and network advantages relative to our low-voltage distribution competitors. Customers benefit from convenient omnichannel access to our robust and expanding product catalog, exclusive and differentiated ADI brands and expert design and technical support to meet complex system requirements. We are continuously expanding our product selection and investing in strengthening our customer experience by adding functionality and features that can boost installer efficiency and profitability.

While ADI operates as a single operating and reportable segment, which reflects our integrated platform and consolidated resource allocation, we are well-diversified across product categories, end markets and regions.

<u>Breakdown of FY2025 Revenue by Product Category and Region</u>

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|:---|:---|
| *<u>By Product Type</u>* | *<u>By Region</u>* |
| ![](ea028883201_ex99-1img3.jpg) | ![](ea028883201_ex99-1img4.jpg) |

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**Our History**

ADI traces its roots to the Alarm Device Manufacturing Company ("ADEMCO"), founded in 1929 by Maurice Coleman in New York. ADEMCO became a leading maker of intrusion and life safety devices through the mid-20<sup>th</sup> century. In 1963, ADEMCO was acquired by the Pittsburgh Railway Company, which renamed itself Pittway in 1967 as it diversified around security and related businesses. In 1988 Pittway formed ADEMCO Distribution Inc. to better distribute its growing security portfolio, an operation that later evolved into ADI.

In February 2000, Honeywell International acquired Pittway bringing ADI under the Automation & Control segment. The business operated for almost two decades within Honeywell before becoming a part of Resideo upon its spin-off in October 2018. Since then, ADI has grown organically, while also executing a focused M&A strategy to broaden adjacencies, add services and expand regional coverage. Between 2020 and 2023, ADI executed six acquisitions, deepening category expertise and expanding customer reach into the professional AV, residential AV and data communications categories.

In June 2024, Resideo acquired the Snap One business ("Snap One") for approximately $1.4 billion and combined ADI's scale and leadership in professionally-installed low voltage products distribution with Snap One's strong position and offerings in residential AV, including the innovative Control4 smart home automation platform used in more than 500,000 homes and businesses and the OvrC cloud-based remote management platform empowering more than 60,000 professional installers with cloud-based configuration, project deployment and remote support capabilities. Together, ADI and Snap One provide integrators an increased selection of both third-party products and exclusive brand offerings.

**Industry Overview**

ADI has a global reach in low-voltage specialty distribution across four interrelated product categories: (i) security, (ii) audio-visual (residential AV and professional AV), (iii) fire/life safety and (iv) data communications, with an increasingly convergent landscape with professionals installing across multiple categories. ADI's largest geography by revenue is North America where management estimates these four product categories represented a large and growing total addressable industry ("TAI") of approximately $65 billion in 2025, with security and fire/life safety representing approximately 15%, residential AV representing approximately 10%, professional AV representing approximately 50% and data communications representing approximately 25%. Drivers of demand by product category include:

● *Security (represents greater than 50% of total revenue for fiscal year 2025)*: Demand is driven by growing sophistication of physical and cyber security threats and increased concerns around crime and asset protection, each of which continues to drive adoption and increased security spend across commercial and residential markets. This growth is further augmented by faster tech-led refresh cycles—AI/cloud upgrades in video surveillance, cloud/mobile credentials expanding access control and modernization of intruder alarms. With a well-known brand in North America despite broadline distributors continuing to gain traction with large commercial projects through bundled offerings, management believes ADI is the leading specialty distributor in security, being strongest in the small and midsize business ("SMB") commercial and residential segments, while select distribution competitors maintain a stronger presence in enterprise grade installations.

● *Audio-visual (represents greater than 25% of total revenue for fiscal year 2025) consists of two sub-categories based on the residential and commercial end markets*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Residential AV*: Demand is driven by increasing adoption of products like control, lighting and digital infrastructure, as smart home automation becomes more common. Housing demand continues to outpace supply domestically and more homes are expected to adopt smart home solutions to include a rising number of devices installed per home. While management believes that our category leadership remains strong with our expansive network of local stores that provide quick access to inventory and the availability of exclusive brand products, ADI competes in this fragmented category with multi-regional specialists which have solid local relationships as well as e-commerce companies. Given its size and scale, management believes ADI is the leading specialty distributor in North America in residential AV; however, it remains exposed to other types of competition, including from DIY solutions and customers shifting to direct purchasing from manufacturers or other e-commerce platforms outside our industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Professional AV*: Demand is driven by video displays, collaboration technologies, momentum in healthcare (telemedicine, hospital experiences) and demand for immersive experiences in live events, higher education and enterprise. Given that our customer acquisition strategy in the professional AV space is still maturing and there remain challenges such as inventory gaps for large commercial projects, management believes ADI is an emerging player in professional AV, with attractive growth opportunities in SMB commercial applications.

● *Fire/life safety (represents greater than 10% of total revenue for fiscal year 2025)*: Demand is code and ordinance driven, which creates a durable baseline demand. Fire/life safety also benefits from a strong bundle pull with adjacent security categories (e.g., access control, video) in both commercial and residential businesses, reinforcing our cross-selling opportunities in this industry. These dynamics make fire/life safety a resilient and robust driver for the ADI business. With a line card representing all of the marquee fire brands in the distribution channel, management believes ADI is the leading specialty distributor in North America in fire/life safety.

● *Data Communications (represents less than 5% of total revenue for fiscal year 2025)*: Demand is driven by more digital connectivity, data center expansion, increasing AI workloads and increased high-security and low-latency operations. Management believes that relative to the security space, ADI is an emerging player in this category, with a more limited assortment and investment and a smaller but growing customer set.

**Competitive Strengths**

Our competitive strengths stem from our global footprint and distinct scale, inventory availability and reliability, omnichannel go-to-market platform, deep customer and supplier relationships and exclusive brands. With attractive margins, cash flow generation and a differentiated growth profile, we believe we will continue to be well positioned to organically grow our business and pursue selective M&A opportunities, aligned to our go-forward strategic growth initiatives.

● *Preeminent Global Distributor of Security, Fire/Life Safety, AV and Other Low Voltage Products:* We are a global leader in professionally installed low-voltage products, including security and residential AV. We believe we offer the industry's most robust assortment of low-voltage brands—over 500,000 products from over 1,000 suppliers, curated through disciplined category management to meet key customer needs. In 2025, we achieved an NPS of 54, which management believes reflects strong customer satisfaction relative to industry benchmarks. Our position is reinforced by long-standing relationships with top suppliers and premier integrators, high product availability and superior technical sales support.

● *Global Footprint and Reach:* ADI has over 200 locations and more than 20 regional distribution centers spanning 17 countries that serve a customer base of over 100,000 professionals. Our extensive global footprint, combined with our strategic supplier relationships and focus on customer service, enables ADI to scale effectively to serve both local and enterprise customers with a range of product and service solutions. Additionally, we believe our global scale affords us meaningful procurement efficiencies.

● *Leading Digital Platform Offering Distinctive Omnichannel Experience:* Our digital platform (website and mobile app) provides a seamless purchasing experience for professional buyers, integrating third-party and proprietary AI technologies in dynamic, account-specific pricing, real-time inventory visibility across both stores and distribution centers, delivery date estimation based on item, location and past delivery performance and third-party product search and product recommendations informed by shopping context and user behavior. We also leverage third-party, AI-enabled system design and proposal software to automate key steps in the AV project lifecycle, including bill of materials builders, quote-to-order conversion, real-time order tracking and self-service account management. Omnichannel fulfillment options – such as one-hour store pickup, after-hours lockers and same-day shipping – further enhance the customer experience across store and digital channels. We believe the strength of our digital platform is a key driver of our global reach, supporting a digital customer base of approximately 55,000 customers as of December 31, 2025. In 2023, we generated approximately $700 million or 20% of consolidated revenue from our digital platform, which has grown to approximately $1,086 million or 26% of consolidated revenue in 2024 and approximately $1,415 million or 30% of consolidated revenue in 2025.

● *Differentiated Portfolio of Exclusive Brands*: We have more than a dozen proprietary and exclusive brands with products and solutions we develop in collaboration with third parties, which may be joint development manufacturers, contract manufacturers and in some instances, original equipment manufacturers under ADI trademarks and brands and sell exclusively through our omnichannel distribution platform. These exclusive brands and services are anchored by our connected platforms Control4 and OvrC and designed to enhance project performance and installer economics. Control4 delivers comprehensive automation by integrating lighting, audio, video, security and climate control into a single, intuitive system while supporting thousands of third-party devices and enabling personalized automation for users. OvrC, our cloud-based remote management platform, allows dealers to monitor, configure and troubleshoot Control4 networks and connected devices remotely, reducing service costs and downtime. These products and services drive higher margins, stickier customer relationships and attachment opportunities (software licenses, services and accessories), and differentiate ADI in the marketplace. For the year ended December 31, 2025, exclusive brand products continued to be a highly margin accretive offering delivering more than 3 times the gross margin of third-party product sales. In 2023, we generated approximately $134 million or 4% of consolidated revenues from exclusive brands, which has grown to approximately $524 million or 12% of revenue in 2024 and approximately $842 million or 18% of revenue in 2025. This marked increase in exclusive brand revenue was primarily driven by the acquisition of Snap One in June 2024. Our exclusive brand products and services are currently concentrated in the residential market, and while such products and services are present in all four of our product categories, a significant percentage is sold in the audio-visual and data communications categories.

● *Robust Financial Position With Attractive Adjusted EBITDA Margin, Cash Flow Generation and Strong Growth Profile:* We generated consolidated revenues of $4.8 billion in 2025, 4.4% of which was derived from products supplied by Resideo. Our consolidated revenues in 2025 represents 14% growth as reported, with $446 million of such growth attributable to the Snap One acquisition, and an approximately 5% compound annual growth rate from 2020 (on an organic basis excluding the impact of the Snap One acquisition and other acquisition activity), with a net loss margin of (5.5)% and an Adjusted EBITDA margin of 6.6%. Our fiscal policy and balanced capital allocation approach is designed to support disciplined deleveraging while preserving the capacity to reinvest in our business. We expect to continue to leverage our extensive global footprint, comprehensive product offering, differentiated portfolio of exclusive brands, leading digital platform and omnichannel experience and strong supplier and customer relationships to drive growth above our underlying markets and deliver attractive margins. We continue to invest in technology solutions to bolster the customer experience, increase operating expense productivity, enhance our data-driven operating model and expand profitability. We believe we are well positioned to remain a category leader while expanding into attractive growth verticals.

● *Proven Leadership Team with Operational Momentum and a Culture That Wins:* We have a strong management team with extensive experience, both within the industry and across our company. The leadership team has a track record of delivering consistent revenue growth, margin enhancement and strong cash flow. Further, the organization has executed and integrated accretive inorganic growth opportunities and delivered complex digital transformations to further scale the business. Our culture centers on being the indispensable partner for a smarter, safer future. This is accomplished by ensuring we show up, follow through, make it easy to work with us and help each other do our best work so our customers can do theirs. We believe that this combination of leadership depth and values-driven execution will continue to underpin our success and create long-term value for our stakeholders.

**Growth Strategies**

Our growth strategies are designed to extend our category leadership, deepen differentiation from our competitors and improve our financial profile:

● *Extending Market Leadership Through Best-in-Class Omnichannel Customer Experience:* We are unifying our physical and digital "store" with a single, AI-enabled omnichannel customer experience. On the digital front, we are consolidating various transactional platforms, modernizing product data and investing in third-party and proprietary AI technologies to, among other functions, enhance search and product recommendations, automate quote-to-order and other workflows and estimate inventory and delivery dates so that the digital experience can be a true differentiator and shape the customer buying journey. In parallel, we are modernizing our store formats and broadening our in-store merchandising, while our distribution network is being streamlined to enhance service levels and efficiency and create a consistent, high-quality experience across channels, while delivering meaningful cost savings.

● *Deepening Our Exclusive Brand Offerings:* We are deepening our exclusive brands portfolio by optimizing our offering around a competitive portfolio of brands, categories and products, with a differentiated positioning in the residential AV product category and increasing relevance to commercial applications. Our product development priorities focus on improved end user interfaces, integrated product quality for faster testing and quicker releases to strengthen differentiation, and disciplined cost engineering to create more value with our investments. We believe these actions will deliver a more robust cadence of differentiated new product introductions while deepening cross-sell and loyalty.

● *Scaling in Key Growth Categories – Professional AV and Data Communications:* We aim to scale our presence in professional AV and data communications to become a leading category player, leveraging our existing omnichannel platform, overlapping customer base and channel conversion trends to accelerate growth share gains. In professional AV, we are investing in field sales and sales engineering talent to penetrate key accounts and attract premium brands, while also expanding our exclusive brands portfolio to create differentiated project bundles. In data communications, we are increasing our industry relevance through broader product offerings and sales coverage, inventory expansion, targeted marketing investments and deeper category expertise. We believe these initiatives will reinforce our one-stop shop value proposition and deepen our relevance with both existing and new customers.

● *Expanding Service Offerings to Deepen Engagement Across the Value Chain:* We aim to build a data-driven services marketplace for professionals, end users and suppliers. For professionals and end users, we are scaling more than twenty differentiated services to increase customer value, including software offerings focused on increased remote monitoring capability, system and network design offerings, device programming and technical support. These offerings are designed to create recurring revenue streams for integrators and ADI, reduce truck rolls and/or improve the end user experience. For suppliers, we are commercializing services that improve planning and sell-through (e.g., data-as-a-service portal that provides visibility into inventory and sales performance). Collectively, these offerings aim to create value for professionals, end users and suppliers—and, in doing so, deepen our partnerships and increase our stickiness across the value chain.

● *Accelerating Growth Through Targeted Acquisitions*: We have a history of successful strategic acquisitions to accelerate growth through category expansion. We intend to continue to selectively pursue acquisitions that will broaden our product portfolio, expand our geographic footprint and enhance our position in strategic growth categories. We believe our industry knowledge and track record in integration and execution position us well to continue to pursue disciplined and accretive strategic acquisitions.

**The Separation and Distribution**

***The Separation and Distribution***

On July 30, 2025, Resideo announced its intention to separate its ADI Global Distribution business from the remainder of its businesses. On , 2026, the Resideo Board approved the distribution of 100% of the issued and outstanding shares of common stock of ADI, a newly-formed company that will hold the ADI Global Distribution business.

ADI is currently a wholly-owned subsidiary of Resideo, and in connection with the distribution, we expect that Resideo will complete the Reorganization Transactions, as a result of which ADI will become the parent company of the Resideo operations comprising, and the entities that will conduct, the ADI Global Distribution business. The Resideo Board has approved the distribution of 100% of our issued and outstanding shares of common stock on the basis of share(s) of our common stock for each share of Resideo common stock held as of the close of business on , 2026, the record date for the distribution.

***Distributed Securities***

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Resideo will distribute share(s) of ADI common stock for each share of Resideo common stock held as of the record date for the distribution. Based on approximately shares of Resideo common stock outstanding as of , 2026, ADI expects that a total of approximately shares of ADI common stock will be distributed to Resideo's common stockholders. We will not issue fractional shares of our common stock in the distribution. The receipt of cash in lieu of fractional shares is described in the section entitled "Material U.S. Federal Income Tax Consequences."

***Treatment of Resideo Preferred Stock***

Holders of Resideo preferred stock will not be entitled by virtue of their Resideo preferred stock to receive shares of our common stock in the Spin-Off and instead will exchange a portion of the Resideo preferred stock they currently hold for shares of ADI preferred stock. In connection with the Spin-Off, we expect certain terms of the Resideo preferred stock to be amended to be consistent with the terms of the ADI preferred stock described herein. Specifically, we expect the lock-up period applicable to the Resideo preferred stock to be extended to match the Lock-Up Period applicable to the ADI preferred stock, and that Resideo's right, in certain circumstances, to convert or redeem the Resideo preferred stock will not be exercisable until after the expiration of the Lock-Up Period. As a result, following the Spin-Off, shares of ADI preferred stock and Resideo preferred stock are expected to have substantially similar rights, preferences and privileges and qualifications, limitations and restrictions. The amount of Resideo preferred stock exchanged for ADI preferred stock and the conversion prices of the Resideo preferred stock and ADI preferred stock will be based on the relative equity values of Resideo and ADI as have been determined by the Resideo Board, in consultation with the holders of Resideo preferred stock. As a result, immediately following the Spin-Off, shares of Resideo preferred stock will remain issued and outstanding, shares of Resideo preferred stock will be cancelled and shares of ADI preferred stock will be issued and outstanding. All accrued and unpaid dividends on Resideo preferred stock will be paid in cash immediately prior to the ADI preferred stock exchange and the aggregate liquidation preference of the preferred stock of Resideo and ADI immediately after the Spin-Off will equal the total liquidation preference (defined as the Accumulated Amount in the Resideo Certificate of Designations) of the Resideo preferred stock immediately prior to the Spin-Off.

The ADI preferred stock will be convertible perpetual participating preferred stock of the Company, with an initial conversion price equal to $, and will accrue dividends at a rate of 7.00% per annum, payable in cash or in kind (by adding the dividend to the Accumulated Amount (as defined in the ADI Certificate of Designations) of such shares). The ADI preferred stock will vote on an as-converted basis together with our common stock. The ADI preferred stock may be converted into our common stock at the Preferred Stockholders' option at any time. Following the expiration of the Lock-Up Period, we will also be able to convert all (but not less than all) of the outstanding shares of ADI preferred stock if at any time our common stock trading price exceeds 200% of the then-effective conversion price for at least 20 out of 30 trailing trading days. Following the expiration of the Lock-Up Period, we will have the option to redeem the ADI preferred stock for an aggregate redemption price equal to two times the sum of the Accumulated Amount (as defined in the ADI Certificate of Designations) plus any interim accrued and unpaid dividends (calculated at 1X instead of 2X) on such share of ADI preferred stock in effect at the time of redemption. In the event of a change of control, we will have the option to purchase all (but not less than all) of the outstanding shares of ADI preferred stock at a price per share equal to 150% of the sum of the Accumulated Amount plus any interim accrued and unpaid dividends (calculated at 100% instead of 150%) on such share of ADI preferred stock in effect at the time of such purchase. See "Description of Capital Stock—Preferred Stock" and "Certain Relationships and Related Person Transactions—Exchange Agreement, Shareholders Agreement and ADI Preferred Stock Exchange" for more information on ADI preferred stock.

Immediately following the Spin-Off, the CD&R Group will beneficially own shares of our common stock and ADI preferred stock, which, taken together on an as-converted basis, represent approximately % of our total voting power. As a result, the CD&R Group may have the indirect ability to influence our policies and operations, including through its ability to designate up to two directors to our board of directors, and its interests as a preferred equity holder may diverge from, or even conflict with, the interests of the other holders of our common stock. See "Risk Factors—The CD&R Group will hold a significant equity interest in our business and may exercise influence over us, including through its ability to designate up to two directors to our Board, and its interests as a preferred equity holder may diverge from, or even conflict with, the interests of the other holders of our common stock."

***Incurrence of Indebtedness***

In connection with the Spin-Off, we expect to incur indebtedness in an aggregate principal amount of approximately $1.0 billion, which is expected to consist of a term credit facility and a series of debt securities. The terms of such indebtedness are subject to change and will be finalized prior to the closing of the Spin-Off. We intend to make a one-time cash dividend of approximately $900 million of the net proceeds of the Financing as partial consideration for the contribution of assets and liabilities to us by Resideo. We will also use the net proceeds to pay related fees and expenses, with any remainder to be retained for general corporate purposes. We expect that the credit agreement governing the term credit facility described above will also contain a revolving credit facility with commitments for borrowings of up to $500 million, which we expect will be undrawn upon completion of the Spin-Off. We expect that Resideo will use these cash proceeds to repay a portion of its outstanding indebtedness and related fees and expenses and, to the extent any proceeds remain after giving effect to such payments, for general corporate purposes. See "Description of Material Indebtedness," "Capitalization," "Unaudited Pro Forma Combined Financial Statements," and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Capital Resources and Liquidity." The separation agreement will contain cash adjustment provisions pursuant to which, following completion of the cash payment described above and the Spin-Off, either we or Resideo will make a separate cash payment to the other if our aggregate cash balance at the time of the Spin-Off is determined to be greater or less than the reference cash balance of $150 million. See "The Separation Agreement—Cash Adjustments."

***ADI's Post-Separation Relationship with Resideo***

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Prior to the completion of the distribution, we are a wholly-owned subsidiary of Resideo, and all of our outstanding shares of common stock are owned by Resideo. Following the separation and distribution, we and Resideo will operate separately, each as a public company.

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Prior to the completion of the distribution, we will enter into a separation and distribution agreement with Resideo, which is referred to in this information statement as the "separation agreement." We will also enter into various other agreements to effect the separation and provide a framework for our relationship with Resideo after the separation, including a commercial product purchase agreement, a transition services agreement, an employee matters agreement, a tax matters agreement and an intellectual property matters agreement. These agreements will provide for the allocation between us and Resideo of the assets, employees, services, liabilities and obligations (including investments, property and employee benefits and tax-related assets and liabilities) of Resideo and its subsidiaries attributable to periods prior to, at and after the separation and will govern certain relationships between us and Resideo after the separation. In exchange for the transfer of the assets and liabilities of Resideo's ADI Global Distribution business to us, we will, among other things, distribute to Resideo common stockholders share(s) of ADI common stock for each share of Resideo common stock held by such Resideo common stockholders as of the record date for the distribution. For additional information regarding the separation agreement and such other agreements, please refer to the sections entitled "Risk Factors—Risks Relating to the Spin-Off and Our Relationship with Resideo," "Certain Relationships and Related Person Transactions" and "The Separation and Distribution."

***Reasons for the Separation***

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The Resideo Board believes that separating the ADI Global Distribution business from the remainder of Resideo is in the best interests of Resideo and its stockholders for certain reasons, including:

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● *Improved Investor Alignment.* The separation is intended to allow investors to separately value each company based on its distinctive investment identity. Our business differs from Resideo's other businesses in important respects. These differences include each respective business's core competencies, business model, strategic focus and capital and R&D expenditure needs. Post-separation, investors will be able to evaluate the merits, performance and prospects of each company on a standalone basis, which we believe will lead to a better appreciation of these characteristics, a more efficient valuation of each respective business and, in turn, more efficient access to the capital markets.

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● *Enhanced Strategic and Management Focus, with Improved Operational Agility.* The separation is intended to allow each company to more effectively pursue its distinct operating priorities and strategies with greater focus and flexibility. Dedicated boards and management teams will concentrate on each of the companies' own unique opportunities for long-term growth and profitability, while maintaining a commitment to our culture of continuous improvement.

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● *Tailored Capital Structures and Capital Allocation Strategies.* The separation is intended to allow each business to establish its own optimal capital structure and manage its capital allocation strategy with greater agility and focus. Each company will concentrate financial resources solely on its own operations without having to compete with each other for investment capital. This will enable more efficient, company-specific capital allocation based on profitability, cash flow and growth opportunities, driving innovation and improving growth and returns.

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● *Independent Equity Structures and Greater Access to Unique Strategic Opportunities.* The separation is intended to create independent equity structures for Resideo and ADI that are aligned with each company's respective industry and provide each with an enhanced ability to capitalize on unique growth opportunities. In addition, each company will be able to directly access the capital markets and will have more flexibility to pursue growth through selective M&A opportunities that are more closely aligned with each company's core strategy.

● *Enhanced Talent Management, Recruitment and Retention and Alignment of Management Incentives and Performance*. The separation is intended to permit each company to more effectively attract, retain and motivate talent, and to offer stock-based compensation that is more closely aligned to its business model and growth strategy.

The Resideo Board also considered certain potentially negative factors in evaluating the separation, including:

● *Loss of Joint Purchasing Power and Increased Costs.* As a current part of Resideo, the ADI Global Distribution business benefits from Resideo's size and purchasing power in procuring certain goods, services and technologies. After the separation, as a separate, independent entity, ADI may be unable to obtain these goods, services and technologies at prices or on terms as favorable as those Resideo obtained prior to the separation. We may also incur costs for certain functions previously performed by Resideo, such as accounting, tax, legal, human resources and other general administrative functions, that are higher than the amounts reflected in our historical combined financial statements, which could cause our profitability to decrease.

● *Disruptions to the Business as a Result of the Separation.* The actions required to separate our and Resideo's respective businesses could disrupt our and Resideo's operations prior to and/or after the separation.

● *Increased Significance of Certain Costs and Liabilities.* Certain costs and liabilities that were otherwise less significant to Resideo as a whole will be more significant for us and Resideo after the separation as stand-alone companies.

● *One-time Costs of the Separation.* We (and prior to the separation, Resideo) will incur costs in connection with the transition to being a stand-alone public company that may include accounting, tax, legal and other professional services costs, recruiting and relocation costs associated with hiring or reassigning our personnel and costs to separate information systems.

● *Risk of Failure to Realize Anticipated Benefits of the Separation.* We may not achieve the anticipated benefits of the separation for a variety of reasons, including, among others: (i) the separation will require significant amounts of management's time and effort, which may divert management's attention from operating and growing our businesses; and (ii) following the separation, we may be more susceptible to market fluctuations, and other events may be more disadvantageous for us than if we were still part of Resideo, because our businesses will be less diversified than Resideo's businesses prior to the separation.

● *Limitations on Strategic Transactions*. Under the terms of the tax matters agreement that we will enter into with Resideo, for a period of two (2) years following the date of the distribution, we will be restricted from taking certain actions that could cause the distribution or certain related transactions (including certain transactions undertaken as part of the Reorganization Transactions) to fail to qualify as tax-free for U.S. federal income tax purposes or other applicable law. These restrictions may limit our ability to pursue certain strategic transactions or engage in other transactions that might increase the value of our businesses.

The Resideo Board concluded that the potential benefits of the separation outweighed these factors. For more information, please refer to the sections entitled "The Separation and Distribution—Reasons for the Separation" and "Risk Factors."

**Risks Associated with Our Business and the Separation**

An investment in our common stock is subject to a number of risks, including risks relating to the separation, the successful implementation of our strategy and the ability to grow our business. The following list of risk factors is not exhaustive. Please read the information in the section entitled "Risk Factors" for a more thorough description of these and other risks.

● We operate in highly competitive markets that are continually evolving, and we may not be able to attract new customers or retain existing customers.

● Weakness in the economy, market trends and other conditions affecting the profitability and financial stability of our customers, our supply chain and our logistics network could negatively impact our sales growth, costs and results of operations.

● Enhanced tariff, import/export restrictions, or other trade barriers along with recent judicial developments may have an adverse impact on global economic conditions.

● Challenges in forecasting demand and managing working capital and inventory may negatively affect our cash flow, margins and overall financial performance.

● If the distribution, together with certain related transactions, does not qualify as a transaction that is generally tax-free for U.S. federal income tax purposes, or if certain internal restructuring transactions do not qualify as transactions that are generally tax-free for applicable tax purposes, we, as well as Resideo and Resideo's common stockholders, could incur significant U.S. federal income tax liabilities and, in certain circumstances, we could be required to indemnify Resideo for material amounts of taxes and other related amounts pursuant to indemnification obligations under the tax matters agreement.

● We may be affected by significant restrictions following the distribution, including on our ability to engage in certain desirable capital-raising, strategic or other corporate transactions, pursuant to the agreements we will enter into with Resideo, including the tax matters agreement.

● Resideo may compete with us.

● We may not achieve some or all of the expected benefits of the Spin-Off, and the Spin-Off may adversely affect our businesses.

● Our inability to resolve favorably any disputes that arise between us and Resideo with respect to our past and ongoing relationships may adversely affect our operating results.

● Resideo's plan to separate into two independent, publicly traded companies 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.

● As of the date of this information statement, we expect to have outstanding indebtedness at the closing of the Spin-Off of approximately $1.0 billion and the ability to draw additional indebtedness of $500 million under the committed revolving facility under the debt instruments that we expect to be in place upon consummation of the Spin-Off, and in the future we may incur additional indebtedness. This indebtedness could adversely affect our businesses and our ability to meet our obligations and pay dividends.

● We cannot be certain that an active trading market for our common stock will develop or be sustained after the Spin-Off, and following the Spin-Off, the stock price of our common stock may fluctuate significantly.

● A significant number of shares of our common stock are or will be eligible for future sale and expected to be freely tradable without restriction, which may cause the market price of our common stock to decline.

● The ADI preferred stock we expect to issue in connection with the Spin-Off will have rights, preferences and privileges that are not held by, and are preferential to, the rights of our common stock and will reduce the relative voting power of the holders of our common stock.

● The CD&R Group will hold a significant equity interest in our business and may exercise influence over us, including through its ability to designate up to two directors to our Board, and its interests as a preferred equity holder may diverge from, or even conflict with, the interests of the other holders of our common stock.

● Certain provisions in our certificate of incorporation and bylaws, and of Delaware law, may prevent or delay an acquisition of our company, which could decrease the trading price of our common stock.

● The combined post-Spin-Off value of one share of Resideo common stock and share(s) of ADI common stock may not equal or exceed the pre-distribution value of one share of Resideo common stock.

**Corporate Information**

We were incorporated in Delaware on December 10, 2025 for the purpose of holding Resideo's ADI Global Distribution business in connection with the separation and the distribution. Prior to the separation, which is expected to occur immediately prior to completion of the distribution, we have had no operations. The address of our principal executive offices is 275 Broadhollow Rd Suite 400, Melville, New York. Our telephone number is (631) 692-1000.

We maintain an Internet website at *www.adiglobal.com*. Our website, and the information contained therein or connected thereto, is not incorporated by reference into this information statement.

**Reason for Furnishing This Information Statement**

This information statement is being furnished solely to provide information to stockholders of Resideo who will receive shares of our 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 our securities. The information contained in this information statement is believed by us to be accurate as of the date set forth on its cover. Changes may occur after that date and neither Resideo nor we will update the information except as required by federal securities laws or in the normal course of their and our respective disclosure obligations and practices.

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

The following unaudited summary financial data was derived from our audited annual combined financial statements, which are included elsewhere in this information statement, and from our unaudited pro forma combined financial statements included in the "Unaudited Pro Forma Combined Financial Statements" section of this information statement. Our underlying financial records were derived from the financial records of Resideo for the periods reflected herein. Our historical and pro forma results are presented for informational purposes only, should not be considered indicative of our results of operations, financial position and cash flows for future periods or what they would have been had we been a separate, publicly traded company during the periods presented.

The summary unaudited pro forma combined financial data presented has been prepared to reflect the separation, which is described in "Unaudited Pro Forma Combined Financial Statements." The unaudited pro forma combined statement of earnings data presented reflects the financial results as if the separation occurred on January 1, 2025, which was the first day of fiscal year 2025. The assumptions used and pro forma adjustments derived from such assumptions are preliminary and based on currently available information and certain assumptions that our management believes are reasonable.

This summary historical and unaudited pro forma combined financial data should be reviewed in combination with "Unaudited Pro Forma Combined Financial Statements," "Capitalization," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the combined financial statements and accompanying notes included in this information statement. For factors that could cause actual results to differ materially from those presented in the summary historical and pro forma combined financial data, see "Cautionary Statement Concerning Forward-Looking Statements" and "Risk Factors" included elsewhere in this information statement.

---

| | | | |
|:---|:---|:---|:---|
| | **Pro Forma<sup>(1)</sup>** | **Historical** | **Historical** |
| | | **As of<br> December 31,** | **As of<br> December 31,** |
| <br>**($ in millions)** | **As of<br> December 31,**<br>**2025** | **2025** | **2024** |
| **Summary Balance Sheet Data:** |  |  |  |
| Cash and cash equivalents | $150 | $124 | $137 |
| Total assets | 4207 | 4152 | 4095 |
| Due from related parties – non-current |  | 13 | 186 |
| Long-term debt | 976 | 1185 | 475 |
| Total equity | 1976 | 1684 | 2088 |
| Total liabilities and equity | $4207 | $4152 | $4095 |

---

(1) Pro forma for the Spin-Off and
related transactions described in the section of this information statement entitled "The Separation and Distribution." See
"Unaudited Pro Forma Combined Financial Statements."

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Pro Forma<sup>(1)</sup>** | **Historical** | **Historical** | **Historical** |
| | **Year ended<br> December 31,** | **Year ended<br> December 31,** | **Year ended<br> December 31,** | **Year ended<br> December 31,** |
| <br>**($ in millions)** | **2025** | **2025** | **2024** | **2023** |
| **Summary Statements of Operations:** |  |  |  |  |
| **Net revenue** | $4784 | $4784 | $4197 | $3570 |
| Cost of goods sold | 3719 | 3719 | 3346 | 2902 |
| Gross Profit | 1065 | 1065 | 851 | 668 |
| Operating expenses |  |  |  |  |
| Selling, general and administrative expenses | 755 | 752 | 598 | 454 |
| Intangible asset amortization | 95 | 95 | 55 | 13 |
| Transaction related expenses | 16 | 16 | 45 |  |
| Restructuring, impairment and extinguishment costs | 8 | 9 | 22 | 13 |
| Research and development expenses | 39 | 39 | 17 | - |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 913 | 911 | 737 | 480 |
| &nbsp;&nbsp;&nbsp;**Income from operations** | 152 | 154 | **114** | **188** |
| Indemnification Agreement expense |  | 364 | 79 | 67 |
| Other expense (income), net | (2) | (2) | 4 | (5) |
| Interest expense | 72 | 50 | 39 | 32 |
| Interest income | (3) | (8) | (15) | (18) |
| &nbsp;&nbsp;&nbsp;**(Loss) income before taxes** | 85 | (250) | **7** | **112** |
| Provisions for income taxes | 29 | 11 | 25 | 50 |
| **Net (loss) income** | $56 | $(261) | $(18) | $62 |
| Net (loss) income margin<sup>(2)</sup> | 1.2% | (5.5)% | (0.4)% | 1.7% |

---

(1) Pro forma for the Spin-Off. See
"Unaudited Pro Forma Combined Financial Statements."

(2) Calculated as a percentage of
revenue.

---

| | | | |
|:---|:---|:---|:---|
| | **Historical** | **Historical** | **Historical** |
| | **Year ended<br> December 31,** | **Year ended<br> December 31,** | **Year ended<br> December 31,** |
| <br>**($ in millions)** | **2025** | **2024** | **2023** |
| **Other Financial Data (unaudited)<sup>(1)</sup>:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Adjusted EBITDA<sup>(1)</sup> | $318 | $286 | $238 |
| &nbsp;&nbsp;&nbsp;Adjusted net income<sup>(1)</sup> | $181 | $181 | $156 |
| &nbsp;&nbsp;&nbsp;Adjusted EBITDA margin<sup>(1)(2)</sup> | 6.6% | 6.8% | 6.7% |
| &nbsp;&nbsp;&nbsp;Adjusted free cash flow<sup>(1)</sup> | $19 | $60 | $76 |

---

(1) For definitions and further information
about how we calculate our non-GAAP financial measures, including a reconciliation of Adjusted EBITDA; Adjusted net income; Adjusted
EBITDA Margin; and Adjusted free cash flow to the most comparable GAAP measures, please see "Management's Discussion and
Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures." Non-GAAP financial measures are included
in this information statement because they are used by management and our board of directors to assess our financial performance. Our
non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance
with GAAP.

(2) Calculated as a percentage of
revenue.

**RISK FACTORS**

*You should carefully consider the risks and uncertainties described below, together with the information included elsewhere in this information statement. The risks and uncertainties described below are those that we have identified as material but are not the only risks and uncertainties facing us. These disclosures reflect our beliefs and opinions as to factors that could materially and adversely affect us and our securities in the future. References to past events are provided by way of example only and are not intended to be a complete listing or a representation as to whether or not such factors have occurred in the past or their likelihood of occurring in the future. Our business is also subject to general risks and uncertainties that affect many other companies, such as market conditions, economic conditions, geopolitical events, changes in laws, regulations or accounting rules, fluctuations in interest rates, terrorism, wars or conflicts, major health concerns, natural disasters or other disruptions of expected business conditions. Additional risks and uncertainties not currently known to us or that we currently believe are immaterial also may impair our business, including our results of operations, liquidity and financial condition.* 

**Risks Relating to Our Business**

***We operate in highly competitive markets that are continually evolving, and we may not be able to attract new customers or retain existing customers.***

We operate in a highly competitive, continually evolving environment, and we compete directly with global, national, regional and local providers of our products, services and solutions, including distributors, manufacturers, service and software providers, retailers and online commerce providers. The most significant competitive factors we face are: the reputation of our Company, the demand for the third-party and exclusive branded products we sell; service and price; product availability; speed and accuracy of delivery; customer and technical support; customer relationships, product performance; reliability and warranty; meeting evolving customer expectations for e-commerce; ease of installation; and sales and marketing programs. In addition to current competitive factors, there have been, and in the future there may be, new market entrants with nontraditional businesses, new business, distribution and customer service models or disruptive technologies and products. We may face competitive pressures from changing consumer preference for simple do-it-yourself solutions rather than adopting professionally installed solutions. In addition, retail outlets, including online commerce, may increase their participation in wholesale distribution markets. To remain competitive, we will need to invest continually in our distribution networks, products and services development, e-commerce technology and experience and marketing. We may not have sufficient resources to continue to make such investments and we may be unable to maintain our competitive position. Our ability to effectively compete and attract new customers and retain existing customers will depend on, among other items, the perceived value and quality of our products, consumer demand for distributed low voltage products, the elasticity of our price increases, our ability to offer new and relevant products, our ability to invest adequately in e-commerce related technologies and deliver e-commerce experiences that meet our customer's evolving expectations and the effectiveness of our marketing efforts. We may also lose loyal customers to our competitors if we are unable to meet consumer demand in a timely manner. In all such situations, our ability to attract and retain customers could be adversely affected, which could adversely affect our business, financial condition, results of operations and cash flows.

Our offerings are primarily distributed and delivered through our omnichannel platform to a network of professional contractors, installers, and integrators, as well as select online merchants. If retail outlets, including online commerce platforms, increase their presence in wholesale distribution markets, or if customers increasingly purchase our products through these channels rather than through us, our business may be unable to effectively compete, which could adversely affect our business, financial condition, results of operations and cash flows.

***Weakness in the economy, market trends and other conditions affecting the profitability and financial stability of our customers, our supply chain and our logistics network could negatively impact our sales growth, costs and results of operations.***

Economic, political and industry trends affect our business environment. In particular, our business is affected by the performance and activity of the global new construction and the repair and remodel construction industries. Similarly, the slowing of the housing market may result in reduced demand for the products we distribute. These and other industries and markets we serve have demand that is sensitive to the production activity, capital spending and demand for products and services of our customers. The ongoing uncertainty and volatility in the global macroeconomic environment have affected, and could continue to affect, our visibility toward future performance. While supply chain, trade dynamics and logistics continued to normalize over 2025, uncertainties remain in 2026 including the potential for changes in inflation and interest rates, tariffs, increased labor costs, availability of labor, and reduced consumer spending due to softening labor markets, elevated mortgage rates, unfavorable foreign currency impacts, global conflicts and shifts in energy policies. Many of our customers operate in markets that are subject to fluctuations resulting from market uncertainty, trade and tariff policies, costs of goods sold, supply shortages or reduced availability of raw materials, components and finished goods; capacity constraints or delays at suppliers, third-party contract manufacturers, component vendors and other suppliers, ports and logistics hubs, currency exchange rates, interest rate fluctuations, government spending and government shutdowns, economic downturns, recessions, foreign competition, offshoring of production, oil and natural gas prices, information system outages or cyber incidents, geopolitical developments, labor shortages, work stoppages, natural or human induced disasters, extreme weather, disruptions to transportation infrastructure and networks, outbreaks of pandemic disease, inflation, deflation and a variety of other factors beyond our control. Any of these factors could cause customers to idle, delay purchases, reduce production levels or experience reductions in the demand for their own products or services. Similarly, certain of these factors have in the past, and could in the future, impact our supply chain and logistics network and could cause shipment delays, backlogs, longer lead times and higher transportation, import and export costs.

Any of these events could also reduce the volume of products and services these customers purchase from us or impair the ability of our customers to make full and timely payments and could cause increased pressure on our pricing and terms of sale. Accordingly, a significant or prolonged slowdown in economic activity in the U.S. or any other major world economy, or a segment of any such economy, could negatively impact our sales and results of operations.

Any of these factors could similarly impact our supply chain and logistics network and could cause shipment delays, backlogs, longer lead times and higher transportation, import and export costs. See "Risks Relating to Our Business—Disruptions to our supply chain, logistics network, and fulfillment centers, and reliance on third-party contract manufacturers could impair our ability to meet demand and increase our costs."

Any of these events could also reduce the volume of products and services these customers purchase from us or impair the ability of our customers to make full and timely payments and could cause increased pressure on our pricing and terms of sale. Accordingly, a significant or prolonged slowdown in economic activity in the U.S. or any other major world economy, or a segment of any such economy, could negatively impact our sales and results of operations.

***Enhanced tariff, import/export restrictions, or other trade barriers along with recent judicial developments may have an adverse impact on global economic conditions.***

We are subject to certain laws and regulations affecting our international operations which, among other things, provide certain preferential duties and tariffs for qualifying imports subject to compliance with the applicable rules of origin and other requirements. There have been, and continue to be, uncertainties with respect to the global economy and trade relations between the U.S. and other countries globally. Implementation of more restrictive trade policies, barriers, or market access policies, or the renegotiation of existing U.S. trade agreements or trade agreements of other countries where we sell or procure large quantities of products and services or procure supplies and other materials incorporated into our products could negatively impact our business, results of operations, cash flows and financial condition. Various modifications to global tariffs, sanctions, and other trade measures have introduced uncertainty in global markets that could adversely affect the business of our customers and suppliers, which could in turn negatively impact our net revenue, cash flows, and results of operations.

In 2025 and 2026, the Trump administration implemented or announced tariffs and other trade actions against certain products and countries where we manufacture, source or sell goods including China, Vietnam, the European Union, Mexico, Canada, Malaysia and Taiwan. In February 2026, the U.S. Supreme Court issued its opinion that the tariffs imposed by the U.S. government under the International Emergency Economic Powers Act ("IEEPA") were unauthorized, but other tariff types continue to be in effect including newly enacted tariffs under Section 122 of the 1974 Trade Act. Certain of these tariffs and duties increased the costs of some of our imported products and services, resulted in higher freight and logistics expenses and supplier surcharges, and impacted our pricing, sourcing, and inventory strategies. In response to tariffs, we have taken mitigating measures including negotiating decreases with our suppliers, and passing along incurred costs to customers. Although, in the aggregate, the impact to date has not been material to our business, results of operations, or financial condition, if tariffs or duties are expanded or increased, or interpreted by a court or governmental agency to apply to more of our products, this could disrupt our supply chain and lead times, significantly and materially increase product costs, compress margins and adversely affect our business, operating results and financial condition. In addition, the U.S. government has adopted, and may continue to adopt, enforcement postures regarding import classifications, country of origin standards and access to exclusions, which could result in increased tariffs or duties on our products.

In addition, the U.S. federal government and certain states, as well as other foreign governments including the United Kingdom and European Union, have imposed certain restrictions on the licensing, use, and import and export of certain surveillance, networking, telecommunications and other equipment manufactured by certain of our suppliers based in China for our business, which may require us to find additional sources of end user products and result in higher costs. We have in the past had inquiries and claims from the U.S. federal government and a U.S. state Attorney General regarding sales of certain Chinese made products in the U.S., which inquiries and litigation could impact our business reputation.

The continuing adoption or expansion of trade restrictions, the occurrence of a trade war or other governmental action related to tariffs or trade agreements or policies has the potential to adversely impact demand for our products, including as a result of higher consumer prices due to such trade restrictions, and may adversely impact our costs, our customers, our suppliers and the U.S. economy, which in turn could have a material adverse effect on our business, operating results and financial condition.

 ****

***Challenges in forecasting demand and managing working capital and inventory may negatively affect our cash flow, margins and overall financial performance.***

Accurate forecasting and disciplined management of inventory, receivables and payables are essential to our performance. Variability in customer demand, channel mix and macroeconomic conditions—together with uncertainty in the volume, timing and type of orders we receive across channels—can make forecasting difficult, and prior growth rates or trends may not be predictive of future results. If our assumptions prove inaccurate or we fail to adjust promptly, we may incur excess, obsolete or insufficient inventory, experience stock-outs or make suboptimal purchasing and production decisions, leading to lower revenue, decreased gross margins, higher carrying and storage costs, increased customer acquisition and retention costs and reduced cash conversion. Additionally, fluctuations in foreign exchange rates and interest rates, supplier price inflation, changes in vendor payment terms and credit risk or collection delays on receivables can affect inventory costs, the value and timing of receivables, and the cost of debt, which may impair working capital efficiency, liquidity, and our ability to fund operations and growth initiatives. Any of these factors could adversely affect our business, financial condition, results of operations and prospects.

 ****

***Disruptions to our supply chain, logistics network, and fulfillment centers, and reliance on third-party contract manufacturers could impair our ability to meet demand and increase our costs.***

Our operations are exposed to supply chain and logistics risks, including shortages or reduced availability of raw materials, product components and finished goods; capacity constraints or delays at suppliers, third-party contract manufacturers, component vendors and other suppliers, ports and logistics hubs or our inability to obtain necessary raw materials and product components, production equipment, or replacement parts; labor disputes, strikes, lockouts or shortages; pandemics or other public health events; natural disasters and extreme weather; disruptions to transportation infrastructure and networks; geopolitical events such as war, civil unrest or terrorism; information system outages or cyber incidents at our or our third-party partners' facilities or systems; and price inflation in materials, freight and other inputs. These events can lead to shipment delays, backlogs, longer lead times, and higher transportation, import and export costs. Alternative sources or routes may not be available on favorable terms, and our third-party contract manufacturers, component vendors, other suppliers, and shipping and logistics partners may experience delays, capacity constraints, financial distress or insolvency, labor disruptions, or information system outages that impede their performance and our ability to serve customers. Resulting product shortages or delivery delays could cause us to be unable to obtain particular products or sufficient quantities of such products, miss customer delivery schedules, lose sales and market share, incur penalties or expedited freight costs, suffer a competitive disadvantage, and harm our reputation, which in turn could adversely affect our business, operating results and financial condition.

In addition, we rely upon a network of warehouses, stores, and other fulfillment centers to effectively fulfill our orders. If we do not optimize, operate, and manage the expansion capacity of our warehouse fulfillment centers successfully and efficiently, this could result in a disruption to our ability to deliver our products, excess or insufficient fulfillment capacity, an increase in costs or impairment charges or harm our business in other ways. In addition, if we do not have sufficient fulfillment capacity or experience a problem fulfilling orders in a timely manner, our customers may experience delays in receiving their purchases, which could harm our reputation and our relationship with our customers, and our business, results of operations, cash flows, and financial condition.

With respect to our exclusive branded products, we rely on a limited number of third-party contract manufacturers to manufacture most of our products and components, and in many cases, one of these manufacturers is our only source for a particular product or product family. Our reliance on contract manufacturers to produce many of our products reduces our control over the assembly process, exposing us to risks, including reduced control over quality assurance, production costs and product supply. Quality control problems, such as the use of materials and delivery of products that do not meet our quality control standards and specifications or comply with applicable laws or regulations, could harm our brand and business or cause end user dissatisfaction. Quality control problems could also result in regulatory action, such as restrictions on importation, products of inferior quality or product stock outages or shortages, harming our sales and creating inventory write-downs for unusable products. In addition, any failure in the proper functioning of embedded firmware and software and the uninterrupted integration with third-party products on which our exclusive brand products and services rely on may harm our brand, operations and business. These risks are heightened because a significant portion of our net revenue comes from exclusive branded products. In the fiscal years ended December 31, 2025 and 2024, approximately 18% and 12% of our net revenue, respectively, were from sales of our exclusive branded products.

***Currency exchange rate fluctuations and financial counterparty risks may adversely affect our results.***

We are exposed to risks associated with the effects of changes in currency exchange rates as changes in the relative fair values of currencies occur from time to time and may, in some instances, have a material impact on our operations. Approximately 18% and 19% of our 2025 and 2024 net revenue, respectively, was derived outside the U.S., and we expect sales to non-U.S. customers to continue to represent a similar portion of our consolidated net revenue. A significant amount of our expected payment obligations, including pursuant to the tax matters agreement, and our anticipated debt obligations will be denominated in U.S. dollars, which exposes us to foreign exchange risk. We also translate assets, liabilities, revenue, and expenses denominated in non-U.S. dollar currencies into U.S. dollars for our combined financial statements based on applicable exchange rates. Consequently, fluctuations in the value of the U.S. dollar compared to other currencies may have a significant impact on the value of these items in our combined financial statements, even if their value has not changed in their original currency. We do not currently hedge against our currency exposure, though in the future we may choose to.

***Loss of key suppliers could decrease sales, profit margins and earnings.***

Products supplied by our ten largest third-party product suppliers in 2025 and 2024 accounted for approximately 47% and 49% of our revenue by dollar volume for the respective period. We are party to distribution agreements with these suppliers, with an average term of 3 years as of December 31, 2025. Our standard distribution agreement is not terminable for convenience, requires our suppliers to provide at least 60 days' written notice of any price increase and provides for volume rebates and prompt payment discounts. In connection with our supplier agreements, we enter into purchase obligations with certain suppliers on occasion. As of December 31, 2025, we had purchase obligations of $78 million, with $78 million payable within 12 months. A significant change in the terms or conditions of sale from a significant supplier has in the past affected and could in the future negatively affect our operating margins, revenues, and/or the level of capital required to fund our operations. The loss of, or a substantial decrease in the availability of, products from any of our key suppliers, a supplier's change in sales strategy to reduce its reliance on distribution channels, the loss of key preferred supplier agreements or disruptions in a key supplier's operations could have a material adverse effect on our business. Although we believe our relationships with our key suppliers are strong, they could change their strategies as a result of a change in control, expansion of their direct sales force, changes in the marketplace or other factors beyond our control, including a key supplier becoming financially distressed or experiencing operational or business disruptions, which could materially affect our supply chain, increase our costs or disrupt our ability to deliver products to our customers in a timely and cost-effective manner.

***We are subject to the economic, political, regulatory, foreign exchange and other risks of international operations.***

Our international revenue represented approximately 18% and 19% of our net revenue for the years ended December 31, 2025 and 2024, respectively. A significant amount of our exclusive branded products are sourced from third-party contract manufacturers located in Asia. In addition, some of our research and development, IT support, software and e-commerce development, customer support and operations and other engineering occurs outside the United States. Our international geographic footprint subjects us to many risks including but not limited to: exchange control regulations; wage and price controls; antitrust/competition regulations; environmental regulations; employment regulations; foreign investment laws; monetary and fiscal policies and protectionist measures that may prohibit acquisitions or joint ventures, establish local content requirements or impact trade volumes; import, export and other trade restrictions (such as embargoes); tariffs; violations by our employees of anti-corruption laws (despite our efforts to mitigate these risks); changes in regulations regarding transactions with state-owned enterprises; nationalization of private enterprises; natural and manmade disasters, hazards and losses; backlash from foreign labor organizations related to our restructuring actions; violence; civil and labor unrest; acts of terrorism; global conflicts; product-related regulatory requirements including certifications, standards and building codes; regulations relating to personal and non-personal data, privacy, artificial intelligence and cybersecurity regulations; and our ability to hire and maintain qualified staff and maintain the safety of our employees in these regions. See "Risks Relating to Legal and Regulatory Matters—Failure to comply with the broad range of standards, laws and regulations in the jurisdictions in which we operate may result in exposure to substantial disruptions, costs and liabilities."

Furthermore, certain non-U.S. entities and assets that are part of our Spin-Off from Resideo may not be transferred prior to the Spin-Off because the entities or assets, as applicable, are subject to foreign government or third-party approvals that we may not receive prior to the Spin-Off. Such approvals may include, but are not limited to, approvals to merge or demerge, to form new legal entities (including obtaining required registrations and/or licenses or permits), and to transfer assets and/or liabilities. It is currently anticipated that all material transfers will occur without delays beyond the closing of the distribution, but we cannot offer any assurance that such transfers will ultimately occur or not be delayed for an extended period of time. To the extent such transfers do not occur prior to the distribution, under the separation agreement, the economic benefits and burdens of owning such assets and/or entities will, to the extent reasonably possible and permitted by applicable law, be provided to the Company.

Current global conflicts and potential conflicts have created substantial uncertainty in the global economy, including sanctions and penalties imposed on certain countries from several governments. We are unable to predict the impact that these actions will have on the global economy or on our financial condition, results of operations and cash flows as of the date of these financial statements.

 ****

***Our success depends on our ability to maintain the value and reputation of our brand. Failure to achieve and maintain a high level of product and service quality could damage our reputation with customers and negatively impact our results.***

We have developed strong and trusted brands that have contributed to the success of our business and we believe our continued success depends on our ability to maintain and grow the value of our brands. Maintaining, promoting and positioning our brands and reputation will depend on, among other factors, the success of our product offerings, product safety, quality assurance, marketing and merchandising efforts, our continued focus on delivering innovative and compelling low voltage products to our customers, e-commerce technology and experience, the proper functioning and versioning of embedded firmware, software, as well as the uninterrupted integration with third-party products and our ability to provide a consistent, high-quality consumer experience.

An important element of our overall strategy is the success and growth of our exclusive brands across various categories and products, with a focus on improved end user interfaces and digital platform enhancements. If we are unable to execute on this growth strategy, our margins and results of operations could be adversely affected. We rely on third-party manufacturers to supply exclusive branded products for our business and a significant percentage of these exclusive branded products are sourced from manufacturers located in Asia. Any potential or perceived quality issues, product defects, recalls, counterfeiting, safety incidents, or failures to meet evolving regulatory or customer requirements could damage our brand, increase warranty and service costs, or result in product liability claims. Furthermore, customers may prefer third-party branded alternatives or resist transitions to our exclusive branded products, and competitive responses may require increased promotional activity, pricing concessions, or investment in channel incentives, each of which could reduce expected profitability. Our growth strategy also depends on continued investment in, and adoption of, our end user interfaces and digital platforms. These initiatives include e-commerce capabilities, digital tools, data analytics, and omnichannel integration designed to improve customer engagement, accelerate product discovery, and enhance attach rates and mix.

Product and service quality issues could result in a negative impact on customer confidence in our company, our products and our brand image. We rely on qualified installers and integrators to sell and install many of our products and services for end users and if our solutions are not properly installed, they may fail to operate as intended which could adversely impact our reputation and consumer confidence in our products and services and otherwise expose us to financial liability and adversely affect our business, results of operations and financial condition. If the products we distribute do not meet applicable legal and safety standards or our customers' expectations regarding safety or quality, or if the products we distribute are improperly designed, manufactured, packaged or labeled, or are otherwise alleged to cause harm or injury, they may be subject to recall and we may experience increased warranty costs or lost sales and increased costs and exposure to legal, financial and reputational risks including litigation and government enforcement action, as well as product liability claims. Any negative publicity, regardless of its accuracy, could have an adverse effect on our business. Brand value is based on perceptions of subjective qualities, and any incident that erodes the loyalty of our customers, suppliers or manufacturers, including changes to our products or packaging, failure of embedded firmware, software, or the uninterrupted integration with third-party products, adverse publicity or a governmental investigation, litigation or regulatory enforcement action, could significantly reduce the value of our brand and adversely affect our business, financial condition, results of operations and prospects.

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***We may from time to time pursue acquisitions. Our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms, or if we cannot effectively integrate acquired companies or assets.***

We may from time to time in the future pursue and consummate acquisitions of companies or assets. Our ability to consummate any future acquisitions will be partially dependent upon the availability of suitable acquisition candidates at favorable prices and upon advantageous terms and conditions. We may not be able to find suitable acquisition candidates to purchase or may be unable to acquire on economically acceptable terms or to receive necessary regulatory approvals or support.

The consummation of any particular acquisition may depend, in part, on our ability to raise the capital necessary to fund such acquisition which may not be available to us at all or on economically advantageous terms. In addition, if we consummate an acquisition, our capitalization and results of operations may change significantly. Future acquisitions could result in gross and/or operating income dilution, the incurring of additional debt or equity issuances and contingent liabilities and an increase in interest and amortization expenses or periodic impairment expenses related to goodwill and other intangible assets and significant charges relating to integration costs.

We may not be successful in effectively identifying all risks of an acquired business, integrating the acquired business or technology into our existing business or realizing the benefits expected at acquisition. Our due diligence may fail to identify all of the liabilities or challenges of an acquired business, product, software, service or technology, including issues related to intellectual property, product quality or product or software architecture, regulatory compliance practices, revenue recognition or other accounting practices or employee, customer or supplier issues. We may not be able to achieve expected operational synergies or savings, or any growth targets identified in acquisition diligence. The successful integration of future acquisitions may also require substantial attention from our senior management and the management of the acquired business, which could decrease the time that they have to manage our existing portfolio, attract customers and develop new products and services or attend to other acquisition opportunities.

**Risks Relating to Information Technology, Intellectual Property and Data Security and Privacy**

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***We rely on a dependable IT infrastructure and network operations that have adequate cybersecurity functionality.***

The efficient operation of our business requires substantial investment in technology infrastructure systems, including enterprise resource planning systems, information systems, supply chain management systems, digital commerce systems, other third-party bolt-on systems critical to support operations and connected solutions platforms and network operations and systems. The failure to acquire, implement, maintain, and upgrade these systems has previously, and may in the future, impact our ability to respond effectively to changing customer expectations, manage our business, scale our solutions effectively, disrupt our ability to fulfill customer orders, or impact our customer service levels, which has in the past, and may in the future, put us at a competitive disadvantage and negatively impact our business, results of operations, financial condition and cash flows. We have experienced delays in certain aspects of the implementation of certain ADI enterprise systems; while we have resolved concerns to date related to the system implementation, we may not be able to successfully implement or consolidate all systems without delays related to resource constraints or additional challenges with the critical implementation process. While we have in the past experienced interruptions of service in our enterprise systems, none of these have been material to date. In addition, in connection with our acquisition of the Snap One business, we are in the process of consolidating and integrating our ADI and Snap One enterprise applications and e-commerce platforms. In connection with certain upgrades to our technology infrastructure systems or acquisitions, we have encountered, and may continue to encounter in the future, concerns and challenges in the implementation and consolidations of IT infrastructure systems, digital experience and e-commerce platforms, including delays related to resource constraints and complexities in the critical implementation process, which have temporarily impacted, and may in the future temporarily impact, our customer service levels and overall performance of our IT infrastructure. Repeated or prolonged interruptions of service, due to cyber threats or problems with our systems or third-party technologies, such as that experienced globally by virtue of the Jira data exfiltration in June 2025, could have a significant negative impact on our reputation and our ability to sell products and services. Our business, results of operations, financial condition and cash flows may be adversely affected if our information systems fail, become unavailable for prolonged periods of time, are corrupted or do not allow us to transmit accurate information. Failure to properly or adequately address these issues, including the failure to fund backups, upgrades and improvements to our systems, could impact our ability to perform necessary business operations, which could adversely affect our reputation, competitive position, business, results of operations, financial condition and cash flows. Our ability to keep our business operating is highly dependent on the proper and efficient operation of our and third-party data centers, networks and data backup systems.

Our IT and engineering systems contain sensitive information, including personal data, trade secrets and other proprietary information. In addition, our connected products potentially expose our business and customers to cybersecurity threats. As a result, we have experienced and may in the future be subject to systems interruption, data corruption, data loss and service and product failures, not only resulting from the failures of our products or services but also from the failures of third-party service providers, natural disasters, power shortages or terrorist attacks, and cyber or other security threats. There is no assurance that the comprehensive security measures we have put in place to protect our IT and engineering systems, services and products against unauthorized access and disclosure of personal data or confidential or trade secret information will be effective in every case.

We have experienced, and expect to continue to experience, cybersecurity threats and incidents, none of which, to our knowledge, have been material to date. The potential consequences to any of our connected solutions platforms, data centers or network operations and systems resulting from a material cyber or other security incident such as a successful ransomware attack or malicious publication of confidential information, trade secrets or personal data include financial loss, reputational and brand impact, negative media coverage, loss of stockholder value, loss of customers, litigation with third parties, including class-action litigation, regulatory investigations, audits or other enforcement actions, theft of intellectual property, fines, regulatory reporting for data breaches and increased cyber and other security protection and remediation costs due to the increasing sophistication and proliferation of threats, which in turn could adversely affect our competitiveness, business, financial condition, results of operations and cash flows. In addition, damages, fines and claims arising from such incidents may not be covered by, or may exceed the amount of, any insurance available or may not be insurable.

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***Our future results and growth are partly dependent upon our ability to develop, maintain and protect our intellectual property.***

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As of December 31, 2025, we owned approximately 97 worldwide active patents and 25 pending patent applications. We rely on a combination of trademarks, trade names, trade secrets, patents, copyrights and other proprietary rights, as well as contractual arrangements, including licenses, to establish, maintain and protect our intellectual property rights. Many of our exclusive branded products attribute significant value to their brand names. See "Risks Relating to Our Business—We operate in highly competitive markets that are continually evolving, and we may not be able to attract new customers or retain existing customers." These rights may not prevent competitors from developing similar products or limit challenges to our intellectual property rights. Failure to protect our intellectual property rights or defend against infringement claims could adversely affect our business, financial condition and results of operations.

Our industry experiences significant intellectual property litigation, and we have in the past and could in the future become involved in costly and lengthy litigation involving patents or other intellectual property rights which could adversely affect our business. We have received allegations of patent infringement from third parties, including both operating companies and non-practicing entity patent holders, as well as communications from customers requesting indemnification for allegations brought by third parties. These allegations have resulted in patent litigation relating to certain of our products and may continue to result in new litigation. These proceedings have in the past and could in the future result in financial liability, harm our ability to compete and divert our management's time and attention. Furthermore, our ability to enforce our intellectual property rights in emerging markets may be limited by legal or practical considerations that have not historically affected our business in markets with more established intellectual property protection systems. We are also monitoring the risk of inadvertent intellectual property rights infringement introduced by evolving technologies such as generative AI. Often, we receive offers to license patents for our use. We believe that we will be able to access any necessary rights through licensing, cross-licensing or other mutually beneficial arrangements, although to the extent we are required but unable to enter into such arrangements on acceptable economic terms, it could adversely impact us, requiring us to take specific actions including ceasing using, selling or manufacturing certain products, services or processes or incurring significant costs and time delays to develop alternative technologies or re-design products.

Our intellectual property rights may not be sufficient to permit us to take advantage of some business opportunities. As a result, we may be required to change our plans or acquire necessary intellectual property rights, which could be costly. Our operations depend in part upon third-party technologies, software and intellectual property. Failure to renew contracts with existing providers or licensors of technology, software, intellectual property or connectivity solutions, or to contract with other providers or licensors on commercially acceptable terms or at all, as well as any failure by such third-party provider to provide such technology solutions, may adversely impact our business, financial condition, results of operations and cash flows.

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***We have in the past relied, and may in the future rely, on AI technologies internally for business purposes and in our products and services. The regulatory framework for AI technologies is rapidly evolving as many federal, state, and foreign government bodies and agencies have introduced or are currently considering additional laws and regulations; to the extent any such laws or regulations apply to our business, or existing laws and regulations are interpreted in ways that would affect the use of AI technologies in our business, we may need to implement additional standards or practices to remain compliant and the operation of our business could be adversely affected.***

We have in the past relied, and may in the future rely, on AI technologies internally for business purposes and in the products and services we develop. These technologies are complex and rapidly evolving and building them may require significant investment in infrastructure and personnel with no assurance that we will realize the desired or anticipated benefits. In addition, certain of our products and services may rely on AI technologies, which are complex, subject to increasing litigation and regulatory scrutiny, and may have errors or inadequacies that are not easily detectable. The regulatory framework for AI technologies and automated decision-making is changing rapidly. There are significant risks involved in utilizing AI technologies, machine learning, data analytics and similar tools that collect, aggregate and analyze data or inputs in connection with our business and no assurance can be provided that the usage of such AI technologies will enhance our business or assist our business in being more efficient or profitable. It is possible that new laws and regulations will be adopted in the United States and in non-United States jurisdictions, or that existing laws and regulations may be interpreted in ways that would affect the operation of our products and services and the way in which we use AI technologies. We may not be able to adequately anticipate or respond to these evolving laws and regulations, and, to the extent we expand our business to more jurisdictions, we may need to adjust our offerings in certain jurisdictions if applicable legal frameworks are inconsistent across jurisdictions. The cost to comply with such laws or regulations could be significant and would increase our operating expenses, which could adversely affect our business, financial condition and results of operations.

The use of third-party and proprietary AI technologies in search, software development and system design, among other functions, in our business may expose us to risks as the intellectual property ownership, license rights, and other legal rights, including copyright, may not been fully interpreted by U.S. or foreign courts or been fully addressed by legislation. For example, it may be challenging to ascertain whether the authors of the original software had sufficient rights to support our usage of the tools, data and models underlying such software. In addition to intellectual property risks, the use of this software may exacerbate other risks, including cybersecurity and privacy risks and other rights issues. This could adversely affect our reputation and expose us to legal liability as well as contractual or regulatory risk. Additionally, our reliance on AI technologies could pose ethical concerns and lead to a lack of human oversight and control, which could have negative implications for our customers' experience and our reputation.

Within our operations, employees leverage AI, including generative AI technologies, to accelerate the creation of new features and reduce overall development time. While these technologies can enhance efficiency, they also present potential intellectual property and privacy risks. Confidential information or trade secrets may inadvertently be disclosed through generative AI interactions, and there is a risk that third-party intellectual property could be inadvertently embedded in AI-generated results. There is also a risk of incorrect, biased or unethical outputs, which can harm our reputation and competitive position and result in regulatory scrutiny or legal liability.

Our products also utilize AI technologies to offer richer insights and more relevant notifications to our customers. For example, our video solutions use AI technologies to identify people, animals, packages and other objects. We believe it is necessary to support these capabilities to remain competitive in the smart home marketplace. Customers may reject AI-powered solutions over fears that their personal data, video footage or usage patterns could be misused or inadequately protected. Our competitors or other third parties may incorporate AI into their products more quickly or successfully than us, which could impair our ability to compete effectively and adversely affect our results and operations. Additionally, there is no guarantee that AI-based features will succeed commercially or even prove technically feasible in all scenarios. AI technologies may generate false alerts or fail to detect real events, undermining customer trust and potentially damaging our reputation.

As the use of AI becomes more prevalent, we anticipate that it will continue to present new or unanticipated ethical, reputational, technical, operational, legal, competitive, and regulatory issues, among others. We expect that our gradual incorporation of AI in our business may require additional resources, including the incurrence of additional costs, to develop and maintain our products and services to minimize potentially harmful or unintended consequences, to comply with applicable and emerging laws and regulations, to maintain or extend our competitive position, and to address any ethical, reputational, technical, operational, legal, competitive, or regulatory issues that may arise as a result of any of the foregoing. Further, a number of aspects of intellectual property protection in the field of AI are currently under development and there is uncertainty and ongoing litigation in different jurisdictions as to the degree and extent of protection warranted for AI and relevant system input and outputs.

**Risks Relating to Legal and Regulatory Matters**

***Failure to comply with the broad range of standards, laws and regulations in the jurisdictions in which we operate may result in exposure to substantial disruptions, costs and liabilities.***

Applicable laws and regulations impose complex, stringent and costly compliance activities, including but not limited to environmental, health and safety protection standards and permitting, labeling, and other requirements regarding, among other things, electronic and wireless communications, air emissions, wastewater discharges, the use, handling and disposal of hazardous or toxic materials, remediation of environmental contamination, product regulatory regulations and standards such as electronic emissions, radio and other communications regulations, and product safety, communications regulations, producer responsibility and sustainability laws including those mandating disclosure requirements for e-waste, packaging, emissions and batteries, anti-money-laundering and anti-corruption, taxation, trade, import and export, antitrust and competition law concerns, data security, data transfers, data protection and data privacy, consumer protection and regulations regarding labor, employment and benefits matters. We may also be affected by future standards, laws or regulations, including those imposed in response to cybersecurity, artificial intelligence, energy, decarbonization, climate change, product functionality, geopolitical, corporate social responsibility, data privacy, accuracy of third-party product data information, new types of online advertising, telecommunications regulations, product safety and liability risks or similar concerns. We expect that the growth of our business may depend on our development of new technologies in response to such regulations and laws. These standards, laws or regulations may further impact our costs of operation, the sourcing of raw materials and the manufacture, design, redesign and distribution of our products and place restrictions and other requirements on the products and services we can sell. The net revenue and margins of our business are directly impacted by government regulations, including safety, performance, and product certification regulations, particularly those driven by customer demands, as well as changes in trade agreements, tariffs and environmental and energy efficiency standards. We have in the past been, and may in the future be, subject to various claims, including legal and regulatory claims arising in the normal course of business. Such claims may include without limitation employment and benefits, product recall, personal injury, network security, consumer law, breaches of or other non-compliance with cybersecurity, artificial intelligence, data transfers, data protection, data privacy or advertising and marketing regulations, or property damage claims resulting from the use of our products, services or solutions, as well as exposure to hazardous materials, contract disputes or intellectual property disputes. The actual costs of resolving legal claims may be substantially higher or lower than the level of insurance coverage we hold and/or the amounts accrued for such claims or may be excluded from coverage. In the event of unexpected future developments, it is possible that the ultimate resolutions of such matters could be unfavorable.

Various laws and regulations as well as contracts we have entered into with third parties apply to the collection, processing, transfer, disposal, disclosure, and security of personal data and other types of regulated data, including obligations concerning clear, accurate, and transparent data use practices and advertising that is not misleading.

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

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In the ordinary course of business, we may make certain commitments, including representations, warranties and indemnities relating to current and past operations and issue guarantees of third-party obligations. We have in the past and may in the future be subject to various lawsuits, investigations or disputes arising out of the conduct of our business, including matters relating to public disclosure and reporting, commercial transactions, government contracts, competition and consumer law claims, product liability, marketing, prior acquisitions and divestitures, compliance with laws, labor and employment, employee benefit plans, intellectual property and the environment, health and safety. We have incurred, and may continue to incur, significant costs in connection with some or all of these matters.

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While we maintain or may otherwise have access to insurance for certain risks, certain risks may be excluded and the amount of our insurance coverage may not be adequate to cover the total amount of all insured claims, legal fees, costs and liabilities and we may have to satisfy high insurance retentions. The incurrence of significant liabilities for which there is no or insufficient insurance coverage (or where there is available insurance but high retention levels) could adversely affect our liquidity and financial condition, results of operations and cash flows.

**Risks Relating to the Spin-Off and Our Relationship with Resideo**

***We have no history of operating as a separate, publicly traded 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.***

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The historical information about us in this information statement refers to our businesses as operated by and integrated with Resideo, and our historical and pro forma financial information included in this information statement is derived from the combined financial results and accounting records of Resideo. The unaudited pro forma combined financial results included in this information statement are presented for informational purposes only and are not necessarily indicative of what our actual financial condition or results of operations would have been had the Spin-Off been completed on the dates indicated. The assumptions used in preparing the pro forma financial information may not prove to be accurate and other factors may affect our financial condition or results of operations. 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:

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● prior to the Spin-Off, our businesses have been operated by Resideo as part of its broader corporate organization, rather than as a separate, publicly traded company. Resideo or one of its affiliates performed various corporate functions for us such as legal, treasury, accounting, auditing, human resources, investor relations, corporate affairs and finance. Our historical and pro forma financial results reflect allocations of corporate expenses from Resideo for such functions and are likely to be less than the expenses we would have incurred had we operated as a separate publicly-traded company. Following the Spin-Off, our costs related to such functions previously performed by Resideo may therefore increase;

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● currently, our businesses are integrated with the other businesses of Resideo. Historically, we have shared economies of scope and scale in costs, employees, vendor relationships and customer relationships. Although we will enter into transition services agreements with Resideo, these arrangements may not fully capture the benefits that we have enjoyed as a result of being integrated with Resideo and may result in us paying higher charges than in the past for these services. This could have an adverse effect on our results of operations and financial condition following the completion of the Spin-Off;

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● generally, our working capital requirements and capital for our general corporate purposes, including acquisitions and capital expenditures, have historically been satisfied as part of the corporate-wide cash management policies of Resideo. Following the completion of the Spin-Off, we may be more susceptible to market fluctuations or other adverse events than would have been as part of Resideo and, as a result, our results of operations and cash flows may 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, if available, may reflect a higher cost of capital;

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● as a current part of Resideo, we enjoy certain benefits from Resideo's operating diversity, reputation, size, purchasing power, ability to borrow and available capital for investments, and we will lose these benefits after the Spin-Off. As an independent entity, we may be unable to purchase goods, services and technologies, obtain insurance and health care benefits, computer software licenses or other services or licenses or access capital markets on terms as favorable to us as those we obtained as part of Resideo prior to the Spin-Off, and our results of operations may be adversely affected. In addition, our historical combined financial data do not include an allocation of interest expense comparable to the interest expense we will incur as a result of the Reorganization Transactions and the Spin-Off, including interest expense in connection with our incurrence of indebtedness;

● as an independent public company, we will separately become subject to, among other things, the reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), the Dodd-Frank Act and the regulations of the NYSE and will be required to prepare our stand-alone financial results according to the rules and regulations 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 implement 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; and

● some of our customers, prospective customers, suppliers or other companies with whom we conduct business may conclude that our financial stability as a separate, publicly traded company is insufficient to satisfy their requirements for doing or continuing to do business with them, or may require us to provide additional credit support, such as letters of credit or other financial guarantees. Any failure of parties to be satisfied with our financial stability could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Other significant changes may occur in our cost structure, management, financing and business operations as a result of operating as a company separate from Resideo. For additional information about the past financial performance of our businesses and the basis of presentation of the historical combined financial statements and the unaudited pro forma combined financial results of our businesses, please refer to the sections entitled "Unaudited Pro Forma Combined Financial Statements," "Summary Historical and Unaudited Pro Forma Combined Financial Data," "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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***Following the Spin-Off, we could incur substantial additional costs and experience temporary business interruptions.***

We have historically operated as part of Resideo, and Resideo has provided us with various corporate functions. Following the Spin-Off, Resideo will not provide us with assistance other than those described under "Certain Relationships and Related Person Transactions." These services do not include every service that we have received from Resideo in the past, and Resideo is only obligated to provide the transition services for limited periods following completion of the Spin-Off. Following the Spin-Off and the cessation of any transition services agreements, we will need to provide internally or obtain from unaffiliated third parties the services we will no longer receive from Resideo. We may be unable to replace these services in a timely manner or on terms and conditions as favorable as those we receive from Resideo, and we may incur substantially higher costs than currently anticipated as a result of the transition.

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***In connection with the separation into two public companies, each of Resideo and ADI will indemnify each other for certain liabilities. If we are required to pay under these indemnities to Resideo, our financial results could be negatively impacted. In addition, there can be no assurance that the Resideo indemnities will be sufficient to insure us against the full amount of liabilities for which Resideo will be allocated responsibility, or that Resideo's ability to satisfy its indemnification obligation will not be impaired in the future.***

Pursuant to the separation agreement and certain other agreements with Resideo, each party will agree to indemnify the other for certain liabilities, whether incurred prior to or after the Spin-Off, in each case for uncapped amounts, as discussed further in "Certain Relationships and Related Person Transactions." Indemnities that we may be required to provide Resideo are not subject to any cap, may be significant and could negatively impact our business. Any amounts we are required to pay pursuant to these indemnification obligations and other liabilities could require us to divert cash that would otherwise have been used in furtherance of our operating business.

Further, third parties could also seek to hold us responsible for any of the liabilities that Resideo has agreed to retain, and there can be no assurance that the indemnity from Resideo will be sufficient to protect us against the full amount of such liabilities, or that Resideo will be able to fully satisfy its indemnification obligations.

In addition, Resideo's insurance will not necessarily be available to us for liabilities associated with occurrences of indemnified liabilities prior to the Spin-Off, and in any event Resideo's insurers may deny coverage to us for liabilities associated with certain occurrences of indemnified liabilities prior to the Spin-Off. Moreover, even if we ultimately succeed in recovering from Resideo or such insurance providers any amounts for which we are held liable, we may be temporarily required to bear these losses. Each of these risks could negatively affect our businesses, financial position, results of operations and cash flows.

***If the distribution, together with certain related transactions, does not qualify as a transaction that is generally tax-free for U.S. federal income tax purposes, or if certain internal restructuring transactions do not qualify as transactions that are generally tax-free for applicable tax purposes, we, as well as Resideo and Resideo's common stockholders, could incur significant U.S. federal income tax liabilities and, in certain circumstances, we could be required to indemnify Resideo for material amounts of taxes and other related amounts pursuant to indemnification obligations under the tax matters agreement. We will also join Resideo's tax matters agreement with Honeywell, which could require us to indemnify Honeywell for certain material taxes and other related amounts.***

The distribution, together with certain related transactions, is intended to qualify as a tax-free "reorganization" under Sections 368(a)(1)(D) and 355 of the Code, and certain internal restructuring transactions are intended to qualify as tax-free for applicable tax purposes. It is a condition to the distribution that Resideo receive a private letter ruling from the IRS and/or an opinion of its outside tax advisors satisfactory to the Resideo board of directors and that such private letter ruling and/or opinion not be withdrawn, rescinded or materially modified; these are separate conditions that the Resideo board may waive in its sole discretion. The IRS private letter ruling and/or opinion will rely on facts, assumptions, representations, statements and undertakings by Resideo and us regarding, among other things, historical and future conduct; if any are inaccurate, incomplete, not satisfied or violated, Resideo may not be able to rely on the IRS private letter ruling and/or the opinion. Notwithstanding any IRS private letter ruling and/or opinion, an IRS audit could determine that the distribution or related transactions are taxable if any of the facts, assumptions, representations, statements or undertakings upon which the ruling or the opinion were based are not correct or have been violated, or if the IRS disagrees with any of the conclusions in the opinion, or for other reasons, including due to changes in facts or post-distribution actions (such as changes in stock ownership), and a court could sustain such a challenge. If the distribution or any related or internal restructuring transaction is taxable, Resideo and/or its stockholders, and we, could incur significant U.S. federal income tax liabilities; in addition, Resideo, we and our respective subsidiaries may incur material tax costs, including non-U.S. taxes, in connection with the reorganization transactions. For a discussion of the tax consequences of the distribution, together with certain related transactions, please refer to the section entitled "Material U.S. Federal Income Tax Consequences."

Under the tax matters agreement, we generally must indemnify Resideo for taxes and related amounts resulting from (a) any inaccuracy or breach of our representations, covenants or undertakings in spin-off related agreements or in documents relating to the IRS ruling or tax opinion, (b) an acquisition of any portion of our equity securities or assets, whether by merger or otherwise and whether or not we participate in or facilitate the transaction, or (c) any other action or failure to act by us. For example, if we or our stockholders engage in transactions that result in a 50% or greater change (by vote or value) in ownership of our stock during the four-year period beginning two years before the spin-off, the spin-off would generally be taxable to Resideo under Section 355(e) (though not to Resideo common stockholders) unless established not to be part of a plan or series of related transactions. In that event, Resideo would recognize gain equal to the excess of the fair market value of our common stock distributed over Resideo's tax basis in such stock, and we would generally be required to indemnify Resideo for the tax on such gain and related expenses. Any such liabilities and indemnification obligations could be material and could adversely affect our business, financial condition, cash flows and results of operations.

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In addition, we will join the tax matters agreement that Resideo executed with Honeywell on October 19, 2018 (the "2018 TMA") in connection with the separation of Resideo from Honeywell (the "Resideo Spin-Off") and agree to become bound by the terms and conditions thereof as though an original party thereto. The 2018 TMA provides, among other things, that the joining party will be required to indemnify Honeywell for any taxes (and reasonable expenses) resulting from the failure of the Resideo Spin-Off and related internal transactions to qualify for their intended tax treatment under U.S. federal, state and local income tax law, as well as foreign tax law, where such taxes result from (a) breaches of covenants and representations made and agreed to in connection with the Resideo Spin-Off, (b) the application of certain provisions of U.S. federal income tax law to these transactions or (c) any other action or omission (other than actions expressly required or permitted by the related transaction agreements) that gives rise to these taxes. If Honeywell recovers amounts due from us that were attributable to Resideo's business, we would need to seek to recover such amounts from Resideo.

For more information, please refer to the section entitled "Certain Relationships and Related Person Transactions—Agreements with Resideo" and "Certain Relationships and Related Person Transactions—Tax Matters Agreements."

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***We may be affected by significant restrictions following the distribution, including on our ability to engage in certain desirable capital-raising, strategic or other corporate transactions, pursuant to the agreements we will enter into with Resideo, including the tax matters agreement.***

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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 stockholders as a result of certain post-spin-off transactions, including certain acquisitions of shares or assets of the spun-off corporation. For example, a spin-off may result in taxable gain to the parent corporation under Section 355(e) of the Code if it 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 percent or greater interest (by vote or value) in the spun-off corporation. To preserve the tax-free treatment for U.S. federal income tax purposes of the distribution and certain related transactions, and in addition to our indemnity obligations described above, under the tax matters agreement that we will enter into with Resideo, we will be restricted from taking any action that prevents the distribution, together with certain related transactions, from being tax-free for U.S. federal income tax purposes. Under the tax matters agreement, for the two-year period following the distribution, we will be subject to specific restrictions on our ability to enter into certain acquisition, merger, liquidation, sale and stock redemption transactions with respect to our stock. Moreover, we will be subject to restrictions on discontinuing the active conduct of our trade or business, the issuance or sale of stock or other securities (including securities convertible into our stock but excluding certain compensatory arrangements) and sales of assets outside the ordinary course of business. Further, the tax matters agreement will impose similar restrictions on us and our subsidiaries that are intended to prevent certain transactions undertaken as part of the Reorganization Transactions from failing to qualify for their intended tax treatment. These restrictions may limit our ability to pursue certain strategic transactions or other transactions that we may believe to be in the best interests of our stockholders or that might increase the value of our business and may reduce our strategic and operating flexibility. In addition, under the tax matters agreement, we may be required to indemnify Resideo against any such tax liabilities as a result of the acquisition of our stock or assets, even if we do not participate in or otherwise facilitate the acquisition. For more information, please refer to the section entitled "Certain Relationships and Related Person Transactions—Agreements with Resideo" and "Certain Relationships and Related Person Transactions— Tax Matters Agreements."

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***After the distribution, certain of our executive officers and directors may have actual or potential conflicts of interest because of their equity interest in Resideo.***

Because of their current or former positions with Resideo, certain of our executive officers and directors may own equity interests in Resideo. Continuing ownership of shares of Resideo common stock and/or equity awards, as applicable, could create, or appear to create, potential conflicts of interest if we and Resideo face decisions that could have implications for both Resideo and us, after the Spin-Off. For example, potential conflicts of interest could arise in connection with the resolution of any dispute between Resideo and us regarding the terms of the agreements governing the distribution and the relationship with Resideo thereafter. These agreements include the separation agreement, transition services agreement, employee matters agreement, tax matters agreement, intellectual property matters agreement and any commercial agreements between the parties or their affiliates. Potential conflicts of interest may also arise out of any commercial arrangements that we may enter into with Resideo in the future. Our certificate of incorporation will provide that, subject to any contractual provision to the contrary, Resideo and its directors and officers will have no obligation to refrain from engaging in the same or similar business activities or lines of business as we do or doing business with any of our clients or customers. This could further exacerbate any conflicts of interest as neither Resideo nor any officer or director of Resideo will be liable to us or to our stockholders for breach of any fiduciary duty by reason of any of these activities.

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***As we will not have a non-competition agreement with Resideo, Resideo may compete directly with us, which may adversely affect our businesses.***

We will not have a non-competition agreement with Resideo and Resideo will not be restricted from competing with us. If Resideo in the future decides to engage in the type of business we conduct, it may have a competitive advantage over us, which may cause our business, financial condition and results of operations to be materially adversely affected.

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***We may not achieve some or all of the expected benefits of the Spin-Off, and the Spin-Off may adversely affect our businesses.***

We may not be able to achieve the full strategic and financial benefits expected to result from the Spin-Off, or such benefits may be delayed or not occur at all. The Spin-Off is expected to provide the following benefits, among others:

● *Improved Investor Alignment.* The separation is intended to allow investors to separately value each company based on its distinctive investment identity. Our business differs from Resideo's other businesses in important respects. These differences include each respective business' core competencies, business model, strategic focus and capital and R&D expenditure needs. Post-separation, investors will be able to evaluate the merits, performance and prospects of each company on a standalone basis, which we believe will lead to a better appreciation of these characteristics, a more efficient valuation of each respective business and, in turn, more efficient access to the capital markets.

● *Enhanced Strategic and Management Focus, with Improved Operational Agility.* The separation is intended to allow each company to more effectively pursue its distinct operating priorities and strategies with greater focus and flexibility. Dedicated boards and management teams will concentrate on each of the companies' own unique opportunities for long-term growth and profitability, while maintaining a commitment to our culture of continuous improvement.

● *Tailored Capital Structures and Capital Allocation Strategies.* The separation is intended to allow each business to establish its own optimal capital structure and manage its capital allocation strategy with greater agility and focus. Each company will concentrate financial resources solely on its own operations without having to compete with each other for investment capital. This will enable more efficient, company-specific capital allocation based on profitability, cash flow and growth opportunities, driving innovation and improving growth and returns.

● *Independent Equity Structures and Greater Access to Unique Strategic Opportunities.* The separation is intended to create independent equity structures for Resideo and ADI that are aligned with each company's respective industry and provide each with an enhanced ability to capitalize on unique growth opportunities. In addition, each company will be able to directly access the capital markets and will have more flexibility to pursue growth through selective M&A opportunities that are more closely aligned with each company's core strategy.

● *Enhanced Talent Management, Recruitment and Retention and Alignment of Management Incentives and Performance*. The separation is intended to permit each company to more effectively attract, retain and motivate talent, and to offer stock-based compensation that is more closely aligned to its business model and growth strategy.

We may not achieve these and other anticipated benefits for a variety of reasons, including, among others:

● *Loss of Joint Purchasing Power and Increased Costs.* As a current part of Resideo, the ADI Global Distribution business benefits from Resideo's size and purchasing power in procuring certain goods, services and technologies. After the separation, as a separate, independent entity, ADI may be unable to obtain these goods, services and technologies at prices or on terms as favorable as those Resideo obtained prior to the separation. We may also incur costs for certain functions previously performed by Resideo, such as accounting, tax, legal, human resources and other general administrative functions, that are higher than the amounts reflected in our historical combined financial statements, which could cause our profitability to decrease.

● *Disruptions to the Business as a Result of the Separation.* The actions required to separate our and Resideo's respective businesses could disrupt our and Resideo's operations after the separation.

● *Increased Significance of Certain Costs and Liabilities.* Certain costs and liabilities that were otherwise less significant to Resideo as a whole will be more significant for us and Resideo after the separation as stand-alone companies.

● *One-time Costs of the Separation.* We (and prior to the separation, Resideo) will incur costs in connection with the transition to being a stand-alone public company that may include accounting, tax, legal and other professional services costs, recruiting and relocation costs associated with hiring or reassigning our personnel and costs to separate information systems.

● *Risk of Failure to Realize Anticipated Benefits of the Separation.* We may not achieve the anticipated benefits of the separation for a variety of reasons, including, among others, that: (i) the separation will require significant amounts of management's time and effort, which may divert management's attention from operating and growing our businesses; and (ii) following the separation, we may be more susceptible to market fluctuations, and other events may be more disadvantageous for us than if we were still part of Resideo, because our businesses will be less diversified than Resideo's businesses prior to the separation.

● *Limitations on Strategic Transactions*. Under the terms of the tax matters agreement that we will enter into with Resideo, for a period of two (2) years following the date of the distribution, we will be restricted from taking certain actions that could cause the distribution or certain related transactions (including certain transactions undertaken as part of the Reorganization Transactions) to fail to qualify as tax-free for U.S. federal income tax purposes or other applicable law. These restrictions may limit our ability to pursue certain strategic transactions or engage in other transactions that might increase the value of our businesses.

If we fail to achieve some or all of the benefits expected to result from the Spin-Off, or if such benefits are delayed, our businesses, operating results and financial condition could be adversely affected.

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***In connection with the Spin-Off, we will enter into a series of transaction agreements which will allocate assets and liabilities, establish indemnification obligations and govern the provision of critical services between us and Resideo.***

We will depend on a series of transaction agreements with Resideo following the Spin-Off, including the separation agreement, transition services agreement, employee matters agreement, tax matters agreement, intellectual property matters agreement, a commercial product purchase agreement and related reorganization documents. Our business could be adversely affected if we or Resideo do not perform these agreements as expected, if required consents are not obtained, or when such agreements expire.

While we believe these agreements reflect reasonable commercial terms, because they will be negotiated while we are a wholly-owned subsidiary of Resideo and before we have an independent board of directors and management team, the terms of such agreements may not reflect those that would have been obtained in negotiations with an unaffiliated third party, and we might have achieved more favorable terms in other circumstances. Prior to the distribution and separation, the Resideo board of directors will have the sole and absolute discretion to determine and change the terms of the Spin-Off, including the establishment of the record date for the distribution and the distribution date. These changes could be unfavorable to us. In addition, the Resideo 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.

We will rely on Resideo to perform and pay amounts due under these agreements, including its indemnification obligations. If Resideo fails or is unwilling to perform, we could experience operational disruptions, incur unanticipated costs or losses, or be required to seek alternative arrangements on less favorable terms. For example, under the transition services agreement, we will rely on Resideo for certain corporate and shared services for a limited period. Even if Resideo does perform under the terms of the transition services agreement, these services may not fully meet our needs, our ability to change or reprice them will be limited, and, upon expiration, we may be unable to replace them on comparable terms, which could increase our costs or impair service quality. We will also be obligated to provide certain services to Resideo during the transition period, which could divert management attention and resources from our operations.

The transfer to us of contracts, permits and other assets contemplated by the separation agreement may require third-party or governmental consents or provide counterparties with rights that delay, condition or prevent transfer of such assets to us. In some cases, we and Resideo are joint beneficiaries of existing contracts and will need counterparties' consent to split or assign relevant portions of the contracts. Counterparties may seek to terminate or renegotiate such arrangements on adverse terms or require credit support. If required consents are not obtained on a timely basis, we may not receive the intended benefits of the contracts and permits allocated to us under the separation agreement, and we may need to secure alternative arrangements that could be more costly or of lower quality, which could negatively affect our business, financial condition, results of operations and cash flows.

As these agreements expire, we will need to establish our own systems and services or third-party replacements. Implementing and transitioning to new systems and functions, including information technology, finance, tax, treasury, internal audit, investor relations and other corporate capabilities, is complex, time-consuming and costly. We may not complete these implementations or data transitions on schedule or at expected cost, and any failure or downtime in our systems or in the services Resideo provides during the transition could impair our ability to operate effectively, including paying suppliers and employees, executing transactions and timely performing administrative and financial processes, which could adversely affect our profitability. For more information on our transaction agreements with Resideo, please refer to the section entitled "Certain Relationships and Related Person Transactions."

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***Our inability to resolve favorably any disputes that arise between us and Resideo with respect to our past and ongoing relationships may adversely affect our operating results.***

Disputes may arise between Resideo and us in a number of areas relating to our ongoing relationships, including:

● labor, tax, employee benefit, indemnification and other matters arising from our Spin-Off from Resideo;

● employee retention and recruiting;

● business combinations involving us; and

● the nature, quality and pricing of services that we and Resideo have agreed to provide each other.

We may not be able to resolve potential conflicts, and even if we do, the resolution may be less favorable than if we were dealing with an unaffiliated party.

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***Resideo's plan to separate into two independent, publicly traded companies 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.***

Resideo's separation into two independent, publicly traded companies is complex in nature, and unanticipated developments or changes, including changes in the law, the macroeconomic environment, competitive conditions of Resideo's markets, regulatory approvals or clearances, the uncertainty of the financial markets and challenges in executing the Spin-Off, could delay or prevent the completion of the proposed Spin-Off, or cause the Spin-Off to occur on terms or conditions that are different or less favorable than expected. Additionally, the Resideo 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 Spin-Off has been and is expected to continue to be time- consuming and involves significant costs and expenses. The Spin-Off costs may be significantly higher than what we currently anticipate and may not yield a discernible benefit if the Spin-Off is not completed or is not well executed, or if the expected benefits of the Spin-Off are not realized. Executing the proposed Spin-Off 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 Spin-Off include attracting, retaining and motivating employees during the pendency of the Spin-Off and following its completion; addressing disruptions to our supply chain, manufacturing, sales and distribution and other operations resulting from separating Resideo into two independent companies; and separating Resideo's information systems.

***As of the date of this information statement, we expect to have outstanding indebtedness at the closing of the Spin-Off of approximately $1.0 billion and the ability to draw additional indebtedness of $500 million under the committed revolving facility under the debt instruments that we expect to be in place upon consummation of the Spin-Off, and in the future we may incur additional indebtedness. This indebtedness could adversely affect our businesses and our ability to meet our obligations and pay dividends.***

As of the date of this information statement, we expect to have outstanding indebtedness at the closing of the Spin-Off of approximately $1.0 billion, and have the ability to draw additional indebtedness of $500 million under the debt instruments that we expect to be in place upon consummation of the Spin-Off. See the section entitled "Description of Material Indebtedness." This debt could have important, adverse consequences to us and our investors, including:

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

● making it more difficult to satisfy 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 businesses;

● limiting our ability to pay dividends;

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

● limiting our flexibility in planning for, or reacting to, changes in our businesses and industries; and

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

Our cash flow from operations may not be sufficient to service our outstanding debt or to repay 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 service or refinance our debt.

We may require additional capital in the future to finance our growth and development, upgrade and improve our distribution networks and further our marketing and sales activities, satisfy regulatory and environmental compliance obligations and national approvals requirements, fund acquisitions, pay ADI preferred stock dividends to the extent we choose to settle these dividends in cash and meet general working capital needs. If we incur additional debt, the risks described above could increase. In addition, incurrence of additional indebtedness may result in our failure to maintain credit ratings from independent rating agencies, would adversely affect our cost of capital and could adversely affect our liquidity and access to the capital markets. If our access to capital were to become constrained significantly, or if costs of capital increased significantly, due to lowered credit ratings, increased interest rates, prevailing business conditions, financial leverage, the volatility of the capital markets, decreased investor interest or other factors, our business, financial condition, results of operations and cash flows could be adversely affected and our ability to fund future development and acquisition activities could be impacted. In addition, our actual cash requirements in the future may be greater than expected. Our cash flow from operations may not be sufficient to service our outstanding debt or to repay 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 service or refinance our debt. See "Capitalization," "Unaudited Pro Forma Combined Financial Statements," "Management's Discussion and Analysis of Financial Condition and Results of Operations—Capital Resources and Liquidity" and "Description of Material Indebtedness."

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***The agreements governing our indebtedness will contain restrictions that may limit our flexibility in operating our business.***

In connection with the Spin-Off, we expect to incur indebtedness in an aggregate principal amount of approximately $1.0 billion, which we expect to be governed by a credit agreement and an indenture. The terms of such indebtedness are subject to change and will be finalized prior to the closing of the Spin-Off. However, we expect the terms of such credit agreement and indenture to contain covenants that limit our ability to engage in specified types of transactions. These covenants may include restrictions on actions such as:

● incurring additional indebtedness or issuing shares of preferred stock;

● paying dividends on, or repurchasing, our capital stock;

● making investments or acquisitions;

● selling or transferring certain assets;

● creating liens;

● consolidating, merging, selling or otherwise disposing of all or substantially all of our assets; and

● entering into certain transactions with our affiliates.

As a result of these restrictions, we may be limited in how we conduct our business and pursue our strategy, unable to raise additional debt financing to operate during general economic or business downturns or unable to compete effectively or to take advantage of new business opportunities. If market changes, economic downturns or other negative events occur, our ability to comply with these covenants may be impaired. A breach of any of these covenants could result in an event of default under the terms of our indebtedness, giving lenders or holders the right to accelerate the repayment of such debt, which could adversely affect our business, financial condition, results of operations and cash flows. To the extent we have granted collateral to secure the obligations under such indebtedness, the lenders or holders thereof could foreclose on such collateral. For additional information regarding the debt financing, please refer to the section entitled "Description of Material Indebtedness."

**Risks Relating to Our Common Stock and the Securities Market**

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***We cannot be certain that an active trading market for our common stock will develop or be sustained after the Spin-Off, and following the Spin-Off, the stock price of our common stock may fluctuate significantly.***

Prior to the completion of the Spin-Off, there has been no public market for our common stock. 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 Spin-Off, nor can we predict the prices at which shares of our common stock may trade after the Spin-Off. If an active trading market does not develop, you may have difficulty selling your shares of our common stock at an attractive price, or at all. In addition, we cannot predict the prices at which shares of our common stock may trade after the Spin-Off or whether the combined market value of share(s) of our common stock and one share of Resideo common stock will be less than, equal to or greater than the market value of one share of Resideo common stock prior to the distribution.

Until the market has fully evaluated Resideo's businesses without ADI, the price at which each share of Resideo common stock trades may fluctuate more significantly than might otherwise be typical, even with other market conditions, including general volatility, held constant. Similarly, until the market has fully evaluated our business 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:

● our quarterly or annual earnings, or those of other companies in our industry;

● any downgrade, withdrawal, or other adverse action to our ratings by rating agencies;

● the failure of securities analysts to cover our common stock after the Spin-Off;

● actual or anticipated fluctuations in our operating results;

● success or failure of our business strategies;

● our level of indebtedness, our ability to make payments on or service our indebtedness and our ability to obtain financing as needed;

● changes in earnings estimated by securities analysts or our ability to meet those estimates;

● the operating and stock price performance of other comparable companies;

● announcements by us or our competitors of significant acquisitions or dispositions;

● changes to the regulatory and legal environment in which we operate;

● changes in accounting standards, policies, guidance, interpretations or principles;

● results from any material litigation or government investigation;

● actual or anticipated fluctuations in commodities prices;

● overall market fluctuations and domestic and worldwide economic conditions; and

● other factors described in these "Risk Factors" and elsewhere in this information statement.

Stock markets in general have experienced volatility that has often been unrelated to the operating performance of a particular company. These broad market fluctuations may adversely affect the trading price of our common stock.

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***There may be substantial and rapid changes in our stockholder base, which may cause our stock price to fluctuate significantly.***

Many investors holding shares of Resideo common stock may hold that stock because of a decision to invest in a company with Resideo's profile. Following the Spin-Off, the shares of ADI common stock held by those investors will represent an investment in a company with a different profile. This may not be aligned with a holder's investment strategy and may cause the holder to sell the shares rapidly. As a result, the price of ADI common stock may decline or experience volatility as ADI's stockholder base changes.

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***A significant number of shares of our common stock are or will be eligible for future sale and expected to be freely tradable without restriction, which may cause the market price of our common stock to decline.***

Upon completion of the separation and distribution, ADI will have an aggregate of approximately shares of common stock outstanding. Other than shares held by our affiliates, we expect that virtually all of those shares will be freely tradable without restriction or registration under the Securities Act. We are unable to predict whether large amounts of ADI common stock will be sold in the open market following the Spin-Off. We are also unable to predict whether a sufficient number of buyers of ADI common stock with demand for shares of ADI common stock will exist to purchase such shares of ADI common stock at attractive prices. It is possible that Resideo common stockholders will sell the shares of ADI common stock they receive in the distribution for various reasons. For example, such stockholders may not believe that ADI's business profile or its level of market capitalization as an independent company fits their investment objectives. The sale of significant amounts of ADI common stock or the perception in the market that this will occur may lower the market price of ADI common stock.

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***If we are unable to implement and maintain effective internal control over financial reporting or disclosure controls and procedures in the future, investors may lose confidence in the accuracy and completeness of our financial reports and other market disclosures and the market price of our common stock may be negatively affected.***

Our financial results previously were included within the combined results of Resideo, and we believe that our reporting and control systems were appropriate for those of subsidiaries of a public company.

However, 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 the 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 addressing these assessments. In addition, our independent registered public accounting firm will be required to express an opinion as to the effectiveness of our internal control over financial reporting. At such time, our independent registered public accounting firm may issue a report that is adverse in the event it is not satisfied with the level at which our internal control over financial reporting is documented, designed or operating. In addition, under the Sarbanes Oxley Act, we will also be required to maintain effective disclosure controls and procedures, where previously such controls and procedures were included within Resideo. These reporting and other obligations will place significant demands on our management and administrative and operational resources, including accounting resources. We may not have sufficient time following the Spin-Off to meet these obligations by the applicable deadlines.

The process of designing, implementing and testing the internal control over financial reporting and disclosure controls and procedures required to comply with these obligations is time consuming, costly and complicated. If we identify material weaknesses in our internal control over financial reporting, if we are unable to comply with the requirements of Section 404 of the Sarbanes-Oxley Act in a timely manner or to assert that our internal control over financial reporting or disclosure controls and procedures are effective or if our independent registered public accounting firm is unable to express an opinion as to the effectiveness of our internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock could be negatively affected, and we could become subject to investigations by the stock exchange on which our securities are listed, the SEC or other regulatory authorities, which could limit ADI's ability to access the global capital markets and could have a material adverse effect on our business, financial condition, results of operations, cash flows or the market price of ADI securities.

Moreover, even if we were to conclude, and our auditors were to concur, that following the Spin-Off our internal control over financial reporting provided reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP, because of its inherent limitations, internal control over financial reporting might not prevent or detect fraud or misstatements. This, in turn, could have an adverse impact on trading prices for shares of our common stock, and could adversely affect our ability to access the capital markets.

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***We cannot guarantee the payment of dividends on our common stock, or the timing or amount of any such dividends.***

We have not yet determined whether or the extent to which we will pay any dividends on our common stock. The payment of any dividends in the future, and the timing and amount thereof, to our stockholders will fall within the discretion of our Board. The Board's decisions regarding the payment of dividends will depend on many factors, such as our financial condition, earnings, capital requirements, debt service obligations, restrictive covenants in our then existing debt agreements, industry practice, legal requirements and other factors that the Board deems relevant. For more information, please refer to the section entitled "Dividend Policy." Our ability to pay dividends will depend on our ongoing ability to generate cash from operations and on our access to the capital markets. We cannot guarantee that we will pay a dividend in the future or continue to pay any dividends if we commence paying dividends.

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***Your percentage ownership in us may be diluted in the future.***

In the future, your percentage ownership in us may be diluted because of equity issuances for acquisitions, capital market transactions or otherwise, including equity awards that we will be granting to our directors, officers and employees in connection with the Spin-Off. See the section entitled "Executive Compensation—Compensation Discussion and Analysis—Treatment of Outstanding Equity Awards Resulting from the Distribution." As of the date of this information statement, the exact number of shares of our common stock that will be subject to such equity awards is not determinable, and, therefore, it is not possible to determine the extent to which your percentage ownership in us could be diluted as a result of the grant of such equity awards. In addition, it is anticipated that our Compensation Committee will grant additional equity awards to our employees and directors after the distribution, from time to time, under our equity compensation plans. These additional awards will have a dilutive effect on our earnings per share, which could adversely affect the market price of our common stock.

In addition, our certificate of incorporation will authorize us to issue, without the approval of our stockholders, one or more classes or series of preferred stock having such designation, powers, preferences and relative, participating, optional and other special rights, including preferences over our common stock respecting dividends and distributions, as the Board generally may determine. The terms of one or more classes or series of preferred stock could dilute the voting power or reduce the value of our common stock. For example, we could grant the holders of preferred stock the right to elect some number of our directors in all events or on the happening of specified events or the right to veto specified transactions. Similarly, the repurchase or redemption rights or liquidation preferences that we could assign to holders of preferred stock could affect the residual value of our common stock. Please refer to the section entitled "Description of Capital Stock" and to "Risks Relating to Our Common Stock and the Securities Market**—**The ADI preferred stock we expect to issue in connection with the Spin-Off will have rights, preferences and privileges that are not held by, and are preferential to, the rights of our common stock and will reduce the relative voting power of the holders of our common stock."

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***The ADI preferred stock we expect to issue in connection with the Spin-Off will have rights, preferences and privileges that are not held by, and are preferential to, the rights of our common stock and will reduce the relative voting power of the holders of our common stock.***

In connection with the Spin-Off, Resideo will enter into an exchange agreement (the "Exchange Agreement") with the Preferred Stockholders providing for the exchange by the Preferred Stockholders of shares of Resideo preferred stock held by them for shares of ADI preferred stock. See "Certain Relationships and Related Person Transactions—Exchange Agreement, Shareholders Agreement and ADI Preferred Stock Exchange" and "Description of Capital Stock." We have approved the ADI preferred stock exchange and CD&R Holdings as an "interested stockholder" for purposes of Section 203 of the DGCL such that, without limiting the standstill to which CD&R Holdings is subject, Section 203 of the DGCL will not be applicable to any business combination with CD&R Holdings.

The ADI preferred stock will rank senior to the shares of our common stock with respect to dividend rights and with respect to rights on liquidation, winding-up and dissolution. Holders of shares of ADI preferred stock will be entitled to cumulative dividends which are payable quarterly in arrears, will accrue on a daily basis from the issuance date of such shares and are payable at the Company's option either (i) in cash or (ii) in kind (by adding the dividend to the Accumulated Amount (as defined in the ADI Certificate of Designations) of such shares), at a rate of 7.00% per annum, subject to adjustment as described elsewhere in this information statement and as set forth in the ADI Certificate of Designations a form of which has been attached as an exhibit to this information statement. Holders of ADI preferred stock are also entitled to receive certain dividends declared or paid on the Company common stock on an as-converted basis. No dividends will be payable to holders of shares of Company common stock unless the full dividends are paid at the same time to the holders of the ADI preferred stock. See "Certain Relationships and Related Person Transactions—Exchange Agreement, Shareholders Agreement and ADI Preferred Stock Exchange."

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Certain of the preferential rights belonging to the ADI preferred stock could result in divergent interests between the holders of the ADI preferred stock and our common stockholders. In addition, our obligations to pay regular dividends to the holders of the ADI preferred stock (which we may elect to pay in cash or in-kind) or the exercise of any of our optional redemption rights with respect to the outstanding ADI preferred stock could, if paid in cash, impact our liquidity and reduce the amount of cash available for working capital, capital expenditures, growth opportunities, acquisitions and other general corporate purposes.

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***The CD&R Group will hold a significant equity interest in our business and may exercise influence over us, including through its ability to designate up to two directors to our Board, and its interests as a preferred equity holder may diverge from, or even conflict with, the interests of the other holders of our common stock.***

The CD&R Group will beneficially own shares of our common stock and ADI preferred stock, which, taken together on an as-converted basis, will represent approximately % of our total voting power upon completion of the Spin-Off. As a result, the CD&R Group may have the indirect ability to influence our policies and operations. In addition, under the ADI Certificate of Designations, the CD&R Group is entitled to appoint up to two directors to our Board, subject to specified minimum ownership requirements. Both Nathan Sleeper and William Galvin are currently expected to serve as directors upon completion of the Spin-Off. With such representation on our Board, the CD&R Group has influence over the appointment of management and any action requiring the vote of our board of directors, including significant corporate action such as mergers and sales of substantially all of our assets. Additionally, for so long as the Preferred Stockholders own ADI preferred stock, certain matters will require the approval of the Preferred Stockholders, including: (1) amendments to our certificate of incorporation, the certificate of designations for the ADI preferred stock or our bylaws that would alter or change the terms or the powers, preferences, rights or privileges of the ADI preferred stock as to affect them adversely; (2) authorizing, creating, increasing the authorized amount of or issuing any class or series of equity securities that rank senior to or on par with the ADI preferred stock; (3) increasing or decreasing the authorized number of shares of ADI preferred stock; (4) amending certain debt financing documents to include limitations on our ability to accrue dividends on the preferred stock that are more restrictive in any material respect than those set forth in our existing debt financing documents; or (5) adopting any plan of liquidation or filing any voluntary petition for bankruptcy, receivership or any similar proceeding. The CD&R Group is in the business of making or advising on investments in companies, including businesses that may directly or indirectly compete with certain portions of our business. In addition, the CD&R Group may have an interest in pursuing acquisitions, divestitures, financings or other transactions that, in their judgment, could enhance their overall equity investment and have a negative impact on holders of our common stock as a whole. See "Certain Relationships and Related Person Transactions—Exchange Agreement, Shareholders Agreement and ADI Preferred Stock Exchange."

 ****

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***Certain provisions in our certificate of incorporation and bylaws, and of Delaware law, may prevent or delay an acquisition of our company, which could decrease the trading price of our common stock.***

Our certificate of incorporation and bylaws will contain, and Delaware law contains, provisions that are intended to deter coercive takeover practices and inadequate takeover bids and to encourage prospective acquirers to negotiate with the Board rather than to attempt an unsolicited takeover not approved by the Board. These provisions include, among others:

● special meetings of stockholders may be called by (i) the Chairman of our Board, (ii) a majority of our Board or (iii) a stockholder, or a group of stockholders, owning a twenty-five percent (25%) or more "net long position," as defined in the bylaws, of our outstanding stock for at least 30 days, provided that such stockholder(s) satisfy the requirements set forth in the bylaws;

● the inability of our stockholders to act by written consent;

● the inability of our stockholders to aggregate or cumulate votes for a director nominee;

● rules regarding how stockholders may present proposals or nominate directors for election at stockholder meetings;

● the right of the Board to issue preferred stock without stockholder approval;

● the ability of our directors to fill vacancies (including those resulting from an enlargement of the Board) on the Board;

● the requirement that the affirmative vote of stockholders holding at least a majority of our voting stock then outstanding is required to amend our bylaws and certain provisions in our certificate of incorporation;

● until the election of directors at our annual stockholder meeting in 2032, our stockholders may remove directors only for cause; and

● until our annual stockholder meeting in 2032, our Board will be divided into three classes, with each class consisting, as nearly as may be possible, of one-third of the total number of directors, which could have the effect of making the replacement of incumbent directors more time consuming and difficult.

In addition, because we have not chosen to be exempt from Section 203 of the DGCL, this provision could delay or prevent a change of control that our stockholders may favor. Section 203 provides that, subject to limited exceptions, persons that acquire, or are affiliated with a person that acquires, more than 15% of the outstanding voting stock of a Delaware corporation (an "interested stockholder") shall not engage in any business combination with that corporation, including by merger, consolidation or acquisitions of additional shares, for a three-year period following the date on which the person became an interested stockholder, unless (i) prior to such time, the board of directors of such corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder; (ii) upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of such corporation at the time the transaction commenced (excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) the voting stock owned by directors who are also officers or held in employee benefit plans in which the employees do not have a confidential right to tender or vote stock held by the plan); or (iii) on or subsequent to such time the business combination is approved by the board of directors of such corporation and authorized at a meeting of stockholders by the affirmative vote of at least two-thirds of the outstanding voting stock of such corporation not owned by the interested stockholder.

We believe these provisions will protect our stockholders from coercive or otherwise unfair takeover tactics by requiring potential acquirers to negotiate with the Board and by providing the Board with more time to assess any acquisition proposal. These provisions are not intended to make our company immune from takeovers. However, these provisions will apply even if the offer may be considered beneficial by some stockholders and could delay or prevent an acquisition that the Board determines is not in the best interests of our company and our stockholders. These provisions may also prevent or discourage attempts to remove and replace incumbent directors.

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***Our certificate of incorporation will provide for an exclusive forum in the Court of Chancery of the State of Delaware for certain disputes between us and our stockholders, and that the federal district courts of the United States will be the exclusive forum for the resolution of any complaint asserting a cause of action under the Securities Act.***

Our certificate of incorporation will provide that: (i) unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have, or declines to accept, jurisdiction, the federal court for the District of Delaware) will be the sole and exclusive forum for any current or former stockholder (including a current or former beneficial owner) to bring: (A) any derivative action or proceeding brought on our behalf, (B) any action, suit or proceeding asserting a claim that is based upon a violation of a duty owed by any of our current or former directors, officers or stockholders to us or our stockholders, (C) any action, suit or proceeding asserting a claim against us, or any of our current or former directors, officers or stockholders arising pursuant to any provision of the DGCL (or any successor provision thereto), our certificate of incorporation or bylaws (as either may be amended from time to time), (D) any action, suit or proceeding asserting a claim related to or involving us that is governed by the internal affairs doctrine or (E) any action, suit or proceeding asserting an "internal corporate claim" as that term is defined in Section 115 of the DGCL; (ii) unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States will be the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act; (iii) any person or entity purchasing or otherwise acquiring or holding any interest in shares of our capital stock will be deemed to have notice of and consented to these provisions; and (iv) failure to enforce the foregoing provisions would cause us irreparable harm, and we will be entitled to equitable relief, including injunctive relief and specific performance, to enforce the foregoing provisions.

The choice of forum provisions may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or any of our current or former directors, officers, other employees, agents or stockholders, which may discourage such claims against us or any of our current or former directors, officers, other employees, agents or stockholders and result in increased costs for investors to bring such a claim. We believe these provisions may benefit us by providing increased consistency in the application of the DGCL and federal securities laws by chancellors and judges, as applicable, particularly experienced in resolving corporate disputes, efficient administration of cases on a more expedited schedule relative to other forums, and protection against the burdens of multi-forum litigation. While the Delaware courts have found similar choice of forum provisions to be facially valid, a stockholder may nevertheless seek to bring a claim in a venue other than those designated in such provisions, and there can be no assurance that such provisions will be enforced by a court in those other jurisdictions. If a court were to find the choice of forum provisions contained in our amended and restated certificate of incorporation to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could adversely affect our business, results of operations, financial condition and prospects.

 ****

***The combined post-Spin-Off value of one share of Resideo common stock and share(s) of ADI common stock may not equal or exceed the pre-distribution value of one share of Resideo common stock.***

As a result of the Spin-Off, we expect the trading price of shares of Resideo common stock immediately following the Spin-Off to be different from the "regular-way" trading price of Resideo common stock immediately prior to the Spin-Off because the trading price will no longer reflect the value of ADI. There can be no assurance that the aggregate market value of one share of Resideo common stock and share(s) of ADI common stock following the Spin-Off will be higher than, lower than or the same as the market value of a share of Resideo common stock if the Spin-Off did not occur.

**General Risk Factors**

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***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.***

Our future performance is highly dependent upon the continued services of our employees and management who have significant industry expertise, including our IT, software, e-commerce operations, supplier management relations, engineering and design personnel and trained sales force. Our performance is also dependent on the development of additional personnel and the hiring of new qualified personnel for our operations. Competition for qualified personnel in our markets is intense; many locations in which we operate have seen competition for talent and increases in wages, and we may not be successful in attracting or retaining qualified personnel. While none of our U.S. employees are currently covered by a collective bargaining agreement, any attempt by our employees to organize a labor union could also result in increased legal and other associated costs. The loss of key employees, our inability to attract new qualified employees or adequately train employees or the delay in hiring key personnel could negatively affect our business, financial condition, results of operations and cash flows. Additionally, as part of Resideo, we have been able to leverage Resideo's historical reputation, performance and brand identity to recruit and retain key personnel to run and operate our business. As an independent, publicly traded company, we will need to develop new strategies, and it may be more difficult for us to recruit or retain such key personnel.

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***Our effective tax rate will be affected by factors including changes in tax rules, and in the interpretation and application of those rules, in the countries in which we operate.***

Our future results of operations could be adversely affected by changes in the effective tax rate as a result of changes to the various statutory tax rates and rules to which we are subject and other factors outside our control. Our tax expense includes estimates of tax reserves and reflects other estimates and assumptions, including assessments of our future earnings which could impact the valuation of our deferred tax assets. Changes in tax laws or regulations may adversely impact our provision for income taxes. In December 2022, the European Union (EU) approved a directive requiring member states to incorporate a 15% global minimum tax into their respective domestic laws effective for fiscal years beginning on or after December 31, 2023. In addition, several non-EU countries have proposed and/or adopted legislation consistent with the global minimum tax framework, such as Switzerland. Important details of these minimum tax developments are still to be determined and, in some cases, enactment and timing remain uncertain. Based on current legislation and available guidance, we do not anticipate the Pillar Two global minimum tax to have a material impact on our financial condition, results of operations, cash flows or effective tax rate in this fiscal year. The Company continues to assess the overall impact of potential changes as developments occur, consistent with our practice of monitoring all tax law changes.

 ****

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***If our critical accounting estimates are based on assumptions that change or prove to be incorrect, our results of operations could fall below the expectations of our investors and securities analysts, resulting in a decline in the trading price of our common stock.***

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in our combined financial statements appearing elsewhere in this information statement. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, as provided in the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates." The results of these estimates form the basis for making judgments about the carrying values of assets, liabilities and equity, and the amount of revenue and expenses. Significant estimates and judgments involve: revenue recognition, including revenue-related reserves; legal contingencies; valuation of our common stock and equity awards; income taxes; and sales and indirect tax reserves. Our results of operations may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our results of operations to fall below the expectations of securities analysts and investors, resulting in a decline in the market price of our common stock.

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***Our ability to raise capital in the future may be limited and our failure to raise capital may limit our ability to invest in strategic priorities and grow our business.***

In the future, we could be required to raise capital through public or private financing or other arrangements. Such financing may not be available on acceptable terms, or at all, and our failure to raise capital when needed could harm our business. We may sell common stock, convertible securities and other equity securities in one or more transactions at prices and in a manner as we may determine from time to time. If we sell any such securities in subsequent transactions, investors in our common stock may be materially diluted. New investors in such subsequent transactions could gain rights, preferences and privileges senior to those of holders of our common stock. Debt financing, if available, may involve restrictive covenants and could reduce our operational flexibility or ability to achieve or maintain profitability. Additionally, our ability to raise additional funds may be adversely impacted by potential worsening global economic conditions and the recent disruptions to, and volatility in, the credit and financial markets in the United States and worldwide, resulting from increased volatility in the trading markets, or otherwise. If we cannot raise funds on acceptable terms, we may be forced to raise funds on undesirable terms, our business may contract or we may be unable to grow our business or respond to competitive pressures, any of which could have an adverse effect on our business, financial condition, results of operations and prospects.

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***If our goodwill, other intangible assets and long-lived assets become impaired, we may be required to record a significant charge to earnings.***

We test, at least annually, the carrying value of goodwill for impairment, as discussed in *Note 7. Goodwill and Other Intangible Assets, net* to the combined financial statements included elsewhere in this information statement. We review other intangible assets and long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable. The estimates and assumptions about future results of operations and cash flows made in connection with the impairment testing could differ from future actual results. If the assumptions used in our analysis are not realized or if there was an adverse change in facts and circumstances, it is possible that an impairment expense may need to be recorded in the future. If the fair value of our reporting units falls below their carrying amounts because of reduced operating performance, market declines, changes in the discount rate or other conditions, expenses for impairment may be necessary. Any such expenses may have a material negative impact on our results of operations. While we were a part of Resideo, for the years ended December 31, 2025, 2024 and 2023, there were no material impairment expenses taken.

**CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS**

Certain statements included in this information statement, in other documents we file with or furnish to the SEC, in our press releases, webcasts, conference calls, materials delivered to stockholders and other communications, are "forward-looking statements" within the meaning of the U.S. federal securities laws. All statements other than historical factual information are forward-looking statements, including, without limitation, statements regarding: the separation; expected future financial and operating performance of, and future opportunities for, the Company following the separation; anticipated benefits of the separation; the tax treatment of the separation; leadership of the Company following the separation; tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, our liquidity position or other financial measures; management's plans and strategies for future operations, including statements relating to anticipated operating performance, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions, divestitures, strategic opportunities, securities offerings, stock repurchases, dividends and executive compensation; the effects of the separation or the distribution, if consummated, on our business; growth, declines and other trends in markets we sell into, including the expected impact of trade and tariff policies; new or modified laws, regulations and accounting pronouncements; impact of climate-related events or transition activities; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; foreign currency exchange rates and fluctuations in those rates; impact of changes to tax laws; general economic and capital markets conditions, including expected impact of inflation or interest rate changes; impact of geopolitical events and other hostilities; the timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that we intend or believe will or may occur in the future. Terminology such as "believe," "anticipate," "will," "should," "could," "intend," "plan," "expect," "estimate," "project," "target," "may," "possible," "potential," "forecast" and "positioned" and similar references to future periods are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words. Forward-looking statements are based on assumptions and assessments made by our management in light of their experience and perceptions of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including but not limited to the risks and uncertainties set forth under "Risk Factors."

Forward-looking statements are not guarantees of future performance and actual results may differ materially from the results, developments and business decisions contemplated by our forward-looking statements. Accordingly, you should not place undue reliance on any such forward-looking statements. Forward-looking statements speak only as of the date of the information statement, document, press release, webcast, call, materials or other communication in which they are made (or such earlier date as may be specified in such statement). Except to the extent required by applicable law, neither Resideo nor we assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

**DIVIDEND POLICY**

We have not yet determined the extent to which we will pay any dividends on our common stock. However, we expect that we will be required to make preferred dividend payments under the expected terms of our ADI preferred stock in cash or in-kind. The payment of any dividends on our common stock in the future, and the timing and amount thereof, is within the discretion of the Board. The Board's decisions regarding the payment of dividends on our common stock will depend on many factors, such as our financial condition, earnings, capital requirements, debt service obligations, restrictive covenants in our then existing debt agreements, industry practice, legal requirements and other factors that our Board deems relevant. Our ability to pay dividends on our common stock will depend on our ongoing ability to generate cash from operations and on our access to the capital markets. We cannot guarantee that we will pay a dividend on our common stock in the future or continue to pay any dividends on our common stock if we commence paying dividends on our common stock.

**CAPITALIZATION**

The following table sets forth our cash and equivalents and capitalization as of December 31, 2025:

● on a historical basis; and

● on a pro forma basis to give effect to the Pro Forma Transactions, as defined in the "Unaudited Pro Forma Combined Financial Statements."

The following table sets forth our cash and cash equivalents and capitalization as of December 31, 2025, on a historical basis and a pro forma basis, to give effect to the Spin-Off and the transactions related to the Spin-Off as further described under "Unaudited Pro Forma Combined Financial Statements," as if they occurred on December 31, 2025. The cash and cash equivalents and capitalization information in the following table may not necessarily reflect what our cash and cash equivalents and capitalization would have been had we been operating as a standalone company as of December 31, 2025. In addition, the information below is not indicative of our future cash and cash equivalents and capitalization.

This table should be read in conjunction with "Unaudited Pro Forma Combined Financial Statements," "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.

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| | | |
|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Historical** | **Pro Forma** |
| ($ amounts in millions, except per share data) |  |  |
| **Cash and cash equivalents<sup>(1)</sup>** | $124 | $150 |
| Capitalization: |  |  |
| **Debt:** |  |  |
| &nbsp;&nbsp;&nbsp;Long-term debt (including current portion)<sup>(2)</sup> | 1192 | 981 |
| Total debt | 1192 | 981 |
| **Equity:** |  |  |
| &nbsp;&nbsp;&nbsp;Common Stock - $0.001 par value, shares authorized, shares issued and outstanding on a pro forma basis<sup>(3)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;Series A Cumulative Convertible Participating Preferred Stock - $0.001 par value, shares authorized, shares issued and outstanding on a pro forma basis<sup>(4)</sup> |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital |  | 2018 |
| &nbsp;&nbsp;&nbsp;Net Parent investment<sup>(5)</sup> | 1726 |  |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net | (42) | (42) |
| Total equity | 1684 | 1976 |
| **Total capitalization** | $2876 | $2957 |

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(1) Concurrent with the date of separation, we expect to have $150 million
in cash and cash equivalents as reflected on our Pro Forma Combined Balance Sheet.

(2) In connection with the Spin-Off, we expect to incur indebtedness in
an aggregate principal amount of approximately $1,000 million with debt issuance costs of $19 million, which is expected to consist of
a term credit facility and a series of debt securities. The terms of such indebtedness are subject to change and will be finalized prior
to the closing of the separation. We intend to make a one-time cash dividend of approximately $900 million of the net proceeds of the
Financing as partial consideration for the contribution of assets and liabilities to us by Resideo. We will also use the net proceeds
to pay related fees and expenses, with any remainder to be retained for general corporate purposes. We expect that the credit agreement
governing the term credit facility described above will also contain a revolving credit facility with commitments for borrowings of up
to $500 million, which we expect will be undrawn upon completion of the Spin-Off. We expect that Resideo will use these cash proceeds
to repay a portion of its outstanding indebtedness and related fees and expenses and, to the extent any proceeds remain after giving effect
to such payments, for general corporate purposes. See "Description of Material Indebtedness," "Unaudited Pro Forma Combined
Financial Statements," and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Capital
Resources and Liquidity."

(3) The number of ADI pro forma shares
of common stock issued and outstanding is based on the number of Resideo shares of common stock issued and outstanding as of December
31, 2025, assuming a distribution ratio of share(s) of ADI common stock for each share of Resideo common
stock.

(4) The number of ADI pro forma Series
A Cumulative Convertible Participating Preferred Stock issued and outstanding is based on the number of Resideo preferred stock issued
and outstanding as of December 31, 2025, assuming an exchange by the Preferred Stockholders of shares of
Resideo preferred stock held by them for      shares of ADI preferred stock.

(5) Reflects the Net parent investment
impact as a result of the anticipated post-separation and post-distribution capital structure.

**UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS**

The following unaudited pro forma combined financial statements (the "unaudited pro forma combined financial statements") consist of an unaudited pro forma combined statement of operations for the year ended December 31, 2025 and an unaudited pro forma combined balance sheet as of December 31, 2025.

These unaudited pro forma combined financial statements were derived from the Company's historical combined financial statements included elsewhere in this information statement. The pro forma adjustments give effect to the Spin-Off and related transactions described in the section of this information statement entitled "The Separation and Distribution." The unaudited pro forma combined Statement of Operations for the year ended December 31, 2025 gives effect to the Spin-Off and related transactions as if they had occurred on January 1, 2025, the first day of fiscal 2025. The unaudited pro forma combined balance sheet gives effect to the Spin-Off and related transactions as if they had occurred on December 31, 2025, our latest statement of financial position date. References to the "Company" or "ADI" in this section and in the following unaudited pro forma combined financial statements and our combined financial statements included in this information statement shall mean Resideo's ADI Global Distribution business and references to "Resideo" shall mean Resideo Technologies, Inc.

The unaudited pro forma combined financial statements have been prepared to reflect transaction accounting and autonomous entity adjustments to present the financial condition and results of operations as if we were a separate stand-alone 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. The unaudited pro forma combined financial statements give effect to the following transactions, which we refer to as the "Pro Forma Transactions":

● the impact of the consummation of the Spin-Off and the transactions contemplated by the separation agreement, the tax matters agreement, the transition services agreement, the commercial product purchase agreement, the employee matters agreement, the intellectual property matters agreement, shareholder related agreements and other commercial agreements between ADI and Resideo and the provisions contained therein;

● the anticipated post-separation capital structure of ADI, including (i) the issuance of approximately shares of our common stock to holders of Resideo common stock, (ii) the issuance of shares of ADI preferred stock to Resideo and the exchange of ADI preferred stock for shares of Resideo preferred stock pursuant to the Exchange Agreement and (iii) the Financing;

● differences between our audited historical combined balance sheet prepared on a carve-out basis and assets and liabilities expected to be contributed by Resideo to us pursuant to the separation agreement;

● the incremental income and costs, including transaction expenses, that ADI expects to incur as an autonomous entity and that are specifically related to the Spin-Off; and

● other adjustments described in the notes to the unaudited pro forma combined financial statements.

The unaudited pro forma combined financial statements were prepared in accordance with Article 11 of Regulation S-X.

The unaudited pro forma combined financial statements are subject to the assumptions and adjustments described in the accompanying notes.

In connection with the separation, we expect to enter into a separation agreement, tax matters agreement, transition services agreement, commercial product purchase agreement, employee matters agreement and other transaction and shareholder related agreements with Resideo, pursuant to which Resideo and we will provide to each other certain specified services on a temporary basis, including various information technology, financial and administrative services. The charges for the transition services are based on arm's length terms. Any incremental costs expected to be incurred from the transition services agreement are reflected as an autonomous entity adjustment.

Our historical combined financial statements, which were the basis for the unaudited pro forma combined financial statements, were prepared on a carve-out basis and were derived from Resideo's historical accounting records as we did not operate as a separate, independent company for the periods presented. Accordingly, such financial information reflects an allocation of certain corporate costs, such as corporate executives, finance, legal, audit, mergers and acquisitions, human resources, information technology, insurance, employee benefits, and other expenses that are either specifically identifiable or clearly applicable to ADI Global Distribution. We believe that the methods used to allocate expenses are reasonable; however, the allocations may not be indicative of actual expenses that would have been incurred had we operated as an independent, publicly traded company for the periods presented. See *Note 16. Related Party Transactions* to the audited combined financial statements included elsewhere in this information statement for further information on the allocation of corporate costs.

The unaudited pro forma combined financial statements are based upon available information and assumptions, including those described in the accompanying notes, that we believe are reasonable and supportable given the information and estimates available at this time. However, these adjustments are subject to change as the terms of the Spin-Off are finalized. The unaudited pro forma combined financial statements have been presented for informational purposes only. The pro forma information is not necessarily indicative of our results of operations or financial condition had the Spin-Off 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 following unaudited pro forma combined financial statements should be read in conjunction with our historical combined financial statements and accompanying notes included elsewhere in this information statement and the sections of this information statement entitled "Capitalization," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Certain Relationships and Related Person Transactions," and "The Separation and Distribution." For factors that could cause actual results to differ materially from those presented in the unaudited pro forma combined financial statements, see "Cautionary Statement Concerning Forward-Looking Statements" and "Risk Factors" included elsewhere in this information statement.

**ADI Global Distribution**

**UNAUDITED PRO FORMA COMBINED BALANCE SHEET<br> ($ and shares in millions, except per share amounts)**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Historical** | **Transaction<br> Accounting<br> Adjustments** | **Autonomous<br> Entity<br> Adjustments** | **Notes** | **Pro<br> Forma** |
| **ASSETS** | | | |  | |
| Current assets: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 124 | 26 (a) |  |  | 150 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 659 |  |  |  | 659 |
| &nbsp;&nbsp;&nbsp;Inventories, net | 1036 |  |  |  | 1036 |
| &nbsp;&nbsp;&nbsp;Other current assets | 154 | - |  |  | 154 |
| Total current assets | 1973 | 26 |  |  | 1999 |
| Property, plant and equipment, net | 107 |  |  |  | 107 |
| Goodwill | 1066 |  |  |  | 1066 |
| Intangible assets, net | 744 |  |  |  | 744 |
| Operating lease right-of-use assets | 236 |  |  |  | 236 |
| Due from related parties - non-current | 13 | (13) (d) |  |  |  |
| Other assets | 13 | 42 (k) |  |  | 55 |
| Total assets | 4152 | 55 |  |  | 4207 |
| **LIABILITIES AND EQUITY** |  |  |  |  |  |
| Current liabilities: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | 717 |  |  |  | 717 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 175 | (13) (b) |  |  | 162 |
| &nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 37 |  |  |  | 37 |
| &nbsp;&nbsp;&nbsp;Due to related parties - current | 68 | (68) (d) |  |  | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 997 | (81) |  |  | 916 |
| Long-term debt | 1185 | (209) (b) |  |  | 976 |
| Non-current portion of operating lease liabilities | 209 |  |  |  | 209 |
| Deferred tax liabilities | 60 | 29 (k) |  |  | 89 |
| Other liabilities | 17 | 24 (j) |  |  | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2468 | (237) |  |  | 2231 |
| Equity |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock: $0.001 par value, shares authorized; shares issued and outstanding, pro forma |  | (f) |  |  |  |
| &nbsp;&nbsp;&nbsp;Series A Cumulative Convertible Participating Preferred Stock - $0.001 par value, shares authorized, shares issued and outstanding, pro forma |  | (g) |  |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital |  | 2018 (i) |  |  | 2018 |
| &nbsp;&nbsp;&nbsp;Net parent investment | 1726 | (1726) (h) |  |  |  |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net | (42) | - |  |  | (42) |
| Total equity | 1684 | 292 |  |  | 1976 |
| Total liabilities and equity | 4152 | 55 |  |  | 4207 |

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See the accompanying notes to the unaudited pro forma combined financial statements.

**ADI Global Distribution**

**UNAUDITED PRO FORMA COMBINED STATEMENTS OF EARNINGS**

**($ and shares in millions, except per share amounts)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **Historical** | **Transaction<br> Accounting<br> Adjustments** | **Notes** | **Autonomous<br> Entity<br> Adjustments** | **Pro<br> Forma** |
| Net revenue | 4784 |  |  |  | 4784 |
| Cost of goods sold | 3719 | - |  | - | 3719 |
| Gross profit | 1065 |  |  |  | 1065 |
| Operating expenses: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 752 |  |  | 3 (o) | 755 |
| &nbsp;&nbsp;&nbsp;Intangible asset amortization | 95 |  |  |  | 95 |
| &nbsp;&nbsp;&nbsp;Transaction related expenses | 16 |  |  |  | 16 |
| &nbsp;&nbsp;&nbsp;Restructuring, impairment and extinguishment costs | 9 | (1) | (c) |  | 8 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | 39 | - |  | - | 39 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 911 | (1) |  | 3 | 913 |
| Income from operations | 154 | 1 |  | (3) | 152 |
| &nbsp;&nbsp;&nbsp;Indemnification Agreement expense | 364 | (364) | (e) |  |  |
| &nbsp;&nbsp;&nbsp;Other expense (income), net | (2) |  |  |  | (2) |
| &nbsp;&nbsp;&nbsp;Interest expense | 50 | 22 | (c), (d) |  | 72 |
| &nbsp;&nbsp;&nbsp;Interest income | (8) | 5 | (c), (d) | - | (3) |
| (Loss) income before taxes | (250) | 338 |  | (3) | 85 |
| Provision for income taxes | 11 | 19 | (l) | (1) (p) | 29 |
| Net (loss) income | (261) | 319 |  | (2) | 56 |
| Less: preferred stock dividends | - |  | (n) |  |  |
| Net (loss) income available to common stockholders | (261) | 319 |  | (2) | 56 |
| Net income (loss) per common share |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic |  |  | (m) |  |  |
| &nbsp;&nbsp;&nbsp;Diluted |  |  | (m) |  |  |
| Average common stock and common equivalent shares outstanding |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic |  |  | (m) |  |  |
| &nbsp;&nbsp;&nbsp;Diluted |  |  | (m) |  |  |

---

See the accompanying notes to the unaudited pro forma combined financial statements.

**NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS**

For further information regarding the historical combined financial statements, please refer to the combined financial statements included elsewhere in this information statement. The unaudited pro forma combined balance sheet as of December 31, 2025 and unaudited pro forma combined statements of operations for the year ended December 31, 2025, include adjustments related to the following ($ in millions):

**Transaction Accounting Adjustments:**

(a) Reflects a pro forma adjustment to cash and cash equivalents for approximately $1,000 million of borrowings expected to be incurred in connection with the separation pursuant to the Financing, net of anticipated debt issuance costs and deferred financing fees of $19 million for a net amount of $981 million. We also expect to make a one-time cash dividend of $900 million of the net proceeds of the Financing to Resideo as partial consideration for assets transferred to us in connection with the separation and a one-time cash adjustment of $55 million pursuant to the separation agreement. The actual one-time cash adjustment is subject to change based on final cash at the spin date. After giving effect to the separation and the Financing, we will retain cash and cash equivalents of $150 million.

The table below summarizes adjustments to Cash and cash equivalents:

---

| | |
|:---|:---|
| (in millions) | **As of December 31, <br> 2025** |
| Cash received from Financing, net | $981 |
| Less: cash dividend of net proceeds from Financing to Resideo | (900) |
| Less: cash adjustment distribution to Resideo pursuant to separation agreement | (55) |
| Total pro forma adjustment to cash and cash equivalents | $26 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reflects adjustments for indebtedness which is
 expected to be comprised of a secured term loan facility in an aggregate principal amount of $500 million and senior unsecured notes in
 an aggregate principal amount of $500 million for a total of $1,000 million. The terms of such indebtedness are subject to change and
 will be finalized prior to the closing of the Spin-Off, and the pro forma adjustments may change accordingly. The adjustments also assume
 that we will enter into a secured revolving credit facility in an aggregate committed amount of $500 million and with a maturity of no
 more than five years. However, the facility is not expected to be utilized at the completion of the Spin-Off. This adjustment reflects the removal of the allocated
 long-term debt of $1,185 million, allocated short-term debt of $7 million and allocated accrued interest of $11 million which was attributed
 to the Company historically due to the Company being jointly and severally liable for these obligations and is not expected to continue
 following the Spin-Off. The terms of the revolving credit facility, senior unsecured notes,
 and secured term loan facility and the distribution to Resideo are subject to change and will be finalized prior to the closing of the
 Spin-Off, and the pro forma adjustments may change accordingly.

The table below summarizes the pro forma adjustment to long-term debt:

---

| | |
|:---|:---|
| (in millions) | **As of<br> December 31,<br> 2025** |
| Cash received from Financing, net | $981 |
| Less: allocated long-term debt | (1185) |
| Less: current portion of net proceeds from Financing | (5) |
| Total pro forma adjustment to long-term debt | $(209) |

---

The table below summarizes the pro forma adjustment to accrued liabilities:

---

| | |
|:---|:---|
| (in millions) | **As of<br> December 31,<br> 2025** |
| Current portion of net proceeds from financing | $5 |
| Less: allocated short-term debt | (7) |
| Less: allocated accrued interest | (11) |
| Total pro forma adjustment to accrued liabilities | $(13) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Adjustment reflects estimated interest expense for the year ended December 31, 2025 related to the change in capital structure described in notes (a) and (b) above:

---

| | |
|:---|:---|
| (in millions) | **As of December 31, <br> 2025** |
| Interest expense attributable to Financing | $&nbsp;&nbsp;&nbsp;&nbsp;72 |
| Less: allocated third-party interest expense | (44) |
| Total pro forma adjustment to interest expense attributable to Financing | $28 |

---

Interest expense was calculated utilizing an estimated weighted average interest rate of approximately 6.96% per annum. A 1/8 percent variance in the assumed interest rate on the floating rate indebtedness would change interest expense by $1 million for the year ended December 31, 2025.

In addition, this adjustment reflects the removal of allocated interest income related to cash flow hedges of $2 million and the removal of allocated losses on extinguishment of debt presented in Restructuring, impairment and extinguishment costs of $1 million which was attributed to the Company historically due to the Company being jointly and severally liable for these obligations, which is not expected to continue following the Spin-Off.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Reflects settlement of related-party balances not expected to remain post-Spin-Off.
The remaining $68 million in Due to related parties – current and the $13 million in Due from related parties – non-current
are expected to be settled in cash prior to the closing of the Spin-Off. In addition, this adjustment reflects the removal of interest expense
of $6 million and interest income of $3 million associated with these arrangements that were recorded during the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Represents the removal of $364 million, recorded in Indemnification Agreement
expense related to allocations of Resideo's obligations under the Indemnification Agreement, which were attributed to the Company
as of December 31, 2025, historically due to joint-and-several liability but will not be assumed on a go-forward basis. On August 13,
2025, Resideo made a one-time cash payment to settle its obligations, and the Indemnification Agreement was terminated which enabled the
ability to execute the separation. Resideo is no longer required to make any further payments under the Indemnification Agreement and
the associated affirmative and negative covenants no longer apply. See "Management's Discussion and Analysis of Financial
Condition and Results of Operations—Capital Resources and Liquidity—Indemnification Agreement."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Reflects the issuance of shares of our common stock with a par value of $0.001 per share pursuant to the separation agreement. We have assumed the number of outstanding shares of our common stock based on shares of Resideo's common stock outstanding as of December 31, 2025 and on the basis of share of our common stock for each shares of Resideo common stock. The actual number of shares issued will not be known until the record date for the distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Reflects issuance of shares of ADI preferred stock with a par value of $0.001 per share to Resideo and the exchange of shares of ADI preferred stock for shares of Resideo preferred stock with a carrying value of $ million in connection with the Spin-Off. The actual number of shares of ADI preferred stock issued will not be known until the Spin-Off distribution is approved by the Resideo Board.

(h) Adjustment reflects the reclassification of Parent's net investment in ADI to Additional paid-in capital.

(i) The Additional paid-in capital adjustments are summarized below:

---

| | |
|:---|:---|
| (in millions) | **As of December 31,<br> 2025** |
| Net parent investment reclassification (h) | $1726 |
| Net impact of cash distribution to Resideo (a) | 26 |
| Net assets transferred to ADI (b) (d) (j) (k) | 266 |
| ADI common stock issuance (f) |  |
| ADI preferred stock issuance (g) |  |
| Total pro forma adjustment to Additional paid-in capital | $2018 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Reflects an adjustment of $24 million for certain liabilities pursuant to the tax matters agreement related to Canada that are expected to be contributed to ADI from Resideo in connection with the Spin-Off.

(k) Reflects an adjustment for deferred tax assets of $25 million and non-current receivables of $17 million within Canada and Germany that are expected to be transferred to ADI from Resideo. Further, certain tax attributes included within the historical combined financial statements may not be transferred to ADI, resulting in a net increase in deferred tax liabilities of $29 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Reflects the tax effect of transaction pro forma adjustments using the applicable statutory income tax rates within the respective tax jurisdictions for the year ended December 31, 2025. The pro forma taxes have not been adjusted to reflect any change in our effective tax rate subsequent to the distribution. The applicable tax rates could be impacted depending on many factors subsequent to the transaction and may be materially different from the pro forma results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The number of ADI shares used to compute pro forma basic and diluted earnings
per share is based on the number of shares of ADI common stock assumed to be outstanding, based on the number of shares of Resideo common
stock used for determination of Resideo's basic and diluted earnings per share for the year ended December 31, 2025, assuming a
distribution ratio of share(s) of ADI common stock for each share of Resideo common stock outstanding. The actual
diluted earnings per share following the completion of the Spin-Off will depend on various factors, including employees who may change
employment between ADI and Resideo and the impact that will result from the issuance of ADI stock-based compensation awards in connection
with the adjustment of outstanding Resideo common stock-based compensation awards held by ADI employees or the grant of new stock-based
compensation awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The unaudited pro forma condensed financial information assumes the issuance
of shares of ADI preferred stock in connection with the Spin-Off as discussed in note (g) above. Accrued
and unpaid dividends on the preferred stock are assumed to accrue at an annual rate of 7.00% and are reflected as a reduction to pro forma
net income attributable to ADI common stockholders for purposes of computing pro forma basic earnings per share of ADI common stock. The
number of dilutive shares of ADI common stock underlying stock-based compensation awards issued in connection with the adjustment of outstanding
Resideo common stock-based compensation awards will not be determined until after the distribution date.

**Autonomous Entity Adjustments:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Reflects the impact of the transition services
 agreement, which results in incremental corporate and administrative costs not included in the historical combined financial
 statements. This adjustment is comprised of a $3 million increase to Selling, general and administrative expense in the unaudited
 pro forma combined statements of operations for the year ended December 31, 2025. Actual charges that will be incurred pursuant to
 these executed contracts with third-party vendors could be different from these estimates.

(p) Reflects the income tax impact of the autonomous entity pro forma adjustments for the year ended December 31, 2025. This adjustment was calculated by applying the applicable statutory income tax rates to the pre-tax pro forma adjustments. The applicable tax rates could be impacted (either higher or lower) depending on certain factors subsequent to the separation including the legal entity structure implemented and may be materially different from the pro forma results.

**Management Adjustments:**

The Company has elected to present management adjustments to the pro forma financial information and included all adjustments necessary for a fair statement of such information. As a separate public company, ADI expects to incur incremental costs within certain corporate functions including finance, IT, legal, human resources and other general and administrative related functions. The Company received the benefit of economies of scale as a single operating and reportable segment within Resideo; however, in establishing these functions independently, the expenses are expected to be higher than the prior corporate allocation from Resideo reflected within our historical combined financial statements.

As a separate public company, ADI expects to incur certain costs in addition to those reflected in the autonomous entity adjustments and described above, including employee related costs, information technology system costs, corporate governance costs, including board of director compensation and expenses, audit and other professional services fees, annual report and proxy statement costs, SEC filing fees, transfer agent fees, consulting and legal fees and stock exchange listing fees. The Company expects to begin recognizing recurring costs at the date of the Spin-Off and one-time costs are expected to be incurred over a period of 12 to 24 months post-separation.

The Company estimated that it would incur approximately $51 million of incremental expense (including $28 million of total one-time expenses and $23 million of recurring costs) for the year ended December 31, 2025 as if the Spin-Off had occurred on January 1, 2025. These incremental expenses are in addition to the $7 million of allocated spin-related transaction expenses within the Combined Statement of Operations.

We estimated these additional dis-synergies of recurring and one-time expenses by assessing the resources and associated recurring costs each function (e.g., finance, information technology, human resources, etc.) will require to stand up and operate as part of a separate publicly traded company. We expect to address any required resources incremental to the services provided by Resideo under the transition services agreement as described in note (o) through additional hiring or incremental vendor and other third-party services spend.

The additional expenses have been estimated based on assumptions that our management believes are reasonable. However, actual additional costs that will be incurred could differ from these 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 selling and marketing, research and development, information technology and infrastructures. 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 result in further differences between management's estimates and actual costs incurred in the future.

These management adjustments include forward-looking information that is subject to the safe harbor protections of the Exchange Act. Please see "Cautionary Statement Concerning Forward-Looking Statements." The tax effect has been determined by applying the respective statutory tax rates to the aforementioned adjustments in jurisdictions where valuation allowances were not required.

***For the year ended December 31, 2025:***

 ****

---

| | | | |
|:---|:---|:---|:---|
| **($ in millions except per share amounts)** | **Net<br> income** | **Basic<br> earnings<br> per share** | **Diluted<br> earnings<br> per share** |
| Unaudited pro forma combined net earnings<sup>(1)</sup> | 56 |  |  |
| Management adjustments | (51) |  |  |
| Tax effect | 13 |  |  |
| Unaudited pro forma combined net earnings after management adjustments | 18 |  |  |
| Weighted average number of shares of common stock outstanding |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic |  |  |  |
| &nbsp;&nbsp;&nbsp;Diluted |  |  |  |

---

(1) As shown in the unaudited pro forma combined statement of
 earnings available to common stockholders.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION**

**AND RESULTS OF OPERATIONS**

 

*The following discussion and analysis of our financial condition and results of operations is intended to help readers understand the results of our operations and financial condition for the three years ended December 31, 2025, December 31, 2024 and December 31, 2023, and it should be read in conjunction with our combined financial statements and related notes and other financial information included elsewhere in this information statement.* 

 

*ADI has historically operated as a part of Resideo; consequently, stand-alone financial statements have not historically been prepared. The accompanying combined financial statements have been derived from Resideo's historical accounting records, including the historical cost basis of assets and liabilities comprising ADI, as well as the historical revenues, direct costs and allocations of indirect costs attributable to the operations of ADI, using the historical accounting policies applied by Resideo. These combined financial statements do not purport to reflect what the financial position, results of operations, comprehensive income or cash flows would have been had ADI operated as a separate, stand-alone entity during the periods presented. As a result, the discussion of our historical results is not necessarily indicative of the results that may be expected in the future.*

 

*In addition to historical combined financial information, the following discussion contains forward-looking statements that reflect our plans, estimates and beliefs that involve significant risks and uncertainties. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to those differences include those discussed below and elsewhere in this information statement, particularly in "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements."*

**Overview and Business Trends**

ADI is a global specialty distributor of professionally installed low-voltage products serving commercial and residential markets through an omnichannel go-to-market platform. Within North America, ADI is the market-leading distributor in the professionally installed security, fire/life safety and audio-visual product categories. We offer over 500,000 products from more than 1,000 suppliers across key specialty low-voltage categories with strong proximity to our customers with a large network of store locations. ADI sells primarily to professional installers, dealers and integrators. Our global customer base of over 100,000 professionals spans independent contractors, regional and national systems integrators and low-voltage specialists installing security, fire/life safety, AV and data communications products.

Our omnichannel go-to-market platform is underpinned by a digital experience designed to deepen customer engagement and broaden our reach. We combine an extensive third-party product portfolio and deep supplier relationships with a growing suite of exclusive brands and software-based services. These exclusive brands and services are designed to help our customers build stronger businesses, differentiate our offerings and improve the end user experience.

ADI Global Distribution is our sole operating and reportable segment based upon the information used by our chief operating decision maker ("CODM") in evaluating the performance of our business and allocating resources and capital.

**Key Factors Affecting Our Performance**

We believe our performance and future success depends on a number of factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and in the section entitled "Risk Factors."

 ****

***Continued Investment in Non-Residential and Commercial Building***

Continued investment in non-residential buildings—whether new construction, repair, or remodel—drives demand for security, connectivity and workplace technology solutions. These products have become essential in modern workplaces and small businesses, and our future growth depends in part on our ability to continue to leverage the investment in non-residential buildings and expand our capabilities in a cost-effective way.

 ****

***Continued Investment in Residential Building***

In our primary North American market, demand for new homes continues to outpace supply. To the extent that such construction continues to accelerate, we expect homes to incorporate more connected technologies for smarter living, fueling demand for professionally installed home technology solutions. Disruptions in the housing market can affect our business if builders encounter difficulties that lead to a decrease in the number of homes they can build and sell or if demand for homes decreases altogether.

 ****

***Increased Sales of Existing Homes and Renovation Projections***

Home sales and repair and remodel projects often serve as catalysts for technology upgrades and installations. While current activity remains below recent historical levels, any rebound in these areas represents a significant opportunity for renewed demand. Any such future opportunity depends on our ability to capitalize on any such growth through disciplined investment in our product portfolio and our omnichannel go-to-market platform.

 ****

***Increasingly Rapid Technology Replacement Cycles***

The rapid adoption of cloud-based solutions and ongoing software innovation are shortening product upgrade cycles. This shorter product lifetime has led to a growing trend of replacing and renovating technology across multiple categories. Our ability to continually invest in digital innovation and to benefit from these shorter product cycles through disciplined capital management could impact our future growth.

 ****

***Increasing Competition***

The regions and industries we serve are highly competitive. We face significant competition from a wide range of companies, including large, diversified companies with broad geographic footprints, as well as smaller, more specialized companies. Our business strength is predicated on our continued delivery of innovative products and services through a single omnichannel go-to-market platform. In order to compete in this environment, we allocate resources to drive innovation in our portfolio through new product launches and extend our global presence so that we can meet expected demand.

 ****

***Continuing Impacts of Macroeconomic Conditions***

Our financial performance is influenced by macroeconomic factors underlying end user in the new construction and the repair and remodel construction industries, new home sales, existing home sales, employment rates, interest rates and bank lending standards, rising prices and inflation, impact of tariffs, and supply chain dynamics that can be influenced by geopolitics. The ongoing uncertainty and volatility in the global macroeconomic environment have affected, and could continue to affect, our visibility toward future performance. While supply chain, trade dynamics and logistics continued to normalize over 2025, uncertainties remain in 2026, including the potential for changes in inflation and interest rates, tariffs, increased labor costs, availability of labor, and reduced consumer spending due to softening labor markets, elevated mortgage rates, unfavorable foreign currency impacts, global conflicts and shifts in energy policies. We typically source around a quarter of our products from Mexico which are currently exempt from tariffs under the USMCA or specific commodity exceptions. Tariff impacts related to imported products that are not subject to the USMCA or another exception may be impacted by the new tariff surcharge of at least 10%. We will continue to take actions intended to address the cost impact of any tariffs that affect our business.

In light of the volatility of the global macroeconomic landscape, we employ a variety of strategies aimed at addressing uncertainties like tariffs, inflation, supply chain, labor costs and reduced consumer spend. For example, when macroeconomic conditions result in customer demand shifting away from a certain product category, we reallocate our internal resources and goods purchased towards product categories with consistent or growing demand. Further, our diverse portfolio of product offerings helps guard against volatility as we can thoughtfully deploy our sales and marketing efforts to align with shifting consumer demand profiles and macroeconomic trends. We also regularly assess our supply chain practices, logistics networks and cost profiles of our products to reduce inefficiencies and maintain agility in the face of volatility and other macroeconomic factors.

**Separation and Distribution**

On July 30, 2025, Resideo announced its intention to separate its ADI Global Distribution business from the remainder of its businesses. On , 2026, the Resideo Board approved the distribution of shares of our common stock on the basis of share(s) of our common stock for each share of Resideo common stock held as of the close of business on , 2026, the record date for the distribution.

Resideo intends to execute the separation through a tax-free pro rata distribution to Resideo common stockholders of shares of common stock of ADI. As part of the separation, Resideo and its subsidiaries expect to conduct an internal reorganization to transfer ADI and its associated assets and liabilities to ADI. Following the distribution, Resideo common stockholders will own 100% of the outstanding shares of our common stock, and ADI will be a separate public company from Resideo.

For a further discussion of the conditions pursuant to the separation agreement and the risks and uncertainties associated with the separation and distribution, refer to the following sections of the information statement, "The Separation and Distribution" and "Risk Factors."

***Relationship with Resideo***

Prior to the completion of the distribution, we are a wholly-owned subsidiary of Resideo, and all of our outstanding shares of common stock are owned by Resideo. Following the separation and distribution, we and Resideo will operate separately, each as a public company. Historically, we have relied on Resideo to manage certain of our operations and provide certain services, the costs of which have historically been either allocated or directly billed to us. Historical costs for such services may not necessarily reflect the actual expenses we would have incurred, or will incur, as an independent company.

In connection with the Spin-Off, we intend to enter into the separation agreement and certain other agreements with Resideo, including a transition services agreement, an employee matters agreement, a tax matters agreement, an intellectual property matters agreement and a commercial product purchase agreement. See "Certain Relationships and Related Person Transactions—Agreements with Resideo." We generally expect to be able to utilize Resideo's services for a transitional period following the Spin-Off before we replace these services over time with services supplied either internally or by third parties, as Resideo is only obligated to provide the transition services for limited periods following completion of the Spin-Off.

The expenses for the services we will receive from Resideo initially and then internally or by third parties may vary from the historical costs directly billed and allocated to us for the same services. Addressing the needs that arise from becoming a stand-alone company will require significant resources, including time and attention from our senior management and others throughout ADI. We will continue to monitor potential separation dis-synergies and we anticipate incurring certain one-time and ongoing costs associated with creating our own capabilities, as further discussed below. As discussed below, we are jointly and severally liable for certain third-party debt instruments and other obligations to which Resideo is a party. Accordingly, a portion of these obligations and the related expenses have been allocated to the Company for the periods presented. These outstanding debt obligations are not expected to transfer to ADI in connection with the Spin-Off. As a result, our actual long-term liability balances upon completion of the Spin-Off are expected to differ from the amounts reflected in the historical combined financial statements. All amounts reflected in our combined financial statements reflect estimated allocations. Refer to *Note 9. Long-Term Debt* and *Note 10. Indemnification Agreement* to combined financial statements. Refer to the sections entitled "Unaudited Pro Forma Combined Financial Statements" and "Description of Material Indebtedness" for a description of the indebtedness we expect to be in place upon consummation of the Spin-Off.

 ****

***Future Stand-Alone Company Expenses***

As a result of the Spin-Off, we will become subject to the requirements of the federal and state securities laws and stock exchange requirements. We will have to establish additional procedures and practices as a stand-alone public company. As a result, subsequent to the separation, we will incur additional one-time and non-recurring expenses consisting primarily of employee-related costs, costs to establish certain stand-alone functions and information technology systems and other transaction-related costs. Additionally, we will incur incremental costs that arise from becoming a stand-alone public company, including costs related to external reporting, internal audit, treasury, investor relations, board of directors and officers, and stock administration, as well as costs from 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. In line with our long-term cost strategy, we will continue to look for operational cost improvement opportunities as a stand-alone company by utilizing our lean culture and innovative technologies to drive lower costs and increased productivity levels across our business and corporate functions.

Refer to "Unaudited Pro Forma Combined Financial Statements" for additional details.

**Results of Operations**

This section of the information statement discusses the years ended December 31, 2025, December 31, 2024 and December 31, 2023 and year-over-year comparisons of these periods.

The following table represents results of operations on a combined basis for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions, except percentages) | **2025** | **2024** | **$ change** | **% change** |
| Net revenue | $4784 | $4197 | $587 | 14.0% |
| Cost of goods sold | 3719 | 3346 | 373 | 11.1% |
| Gross profit | 1065 | 851 | 214 | 25.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;*Gross profit margin* | *22.3 %* | *20.3 %* |  | 200 bps |
| &nbsp;&nbsp;Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;Selling, general and administrative expenses | 752 | 598 | 154 | 25.8% |
| &nbsp;&nbsp;Intangible asset amortization | 95 | 55 | 40 | 72.7% |
| &nbsp;&nbsp;Transaction related expenses | 16 | 45 | (29) | (64.4)% |
| &nbsp;&nbsp;Restructuring, impairment and extinguishment costs | 9 | 22 | (13) | (59.1)% |
| &nbsp;&nbsp;Research and development expenses | 39 | 17 | 22 | 129.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 911 | 737 | 174 | 23.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Income from operations | 154 | 114 | 40 | 35.1% |
| Indemnification Agreement expense | 364 | 79 | 285 | 360.8% |
| Other (income) expense, net | (2) | 4 | (6) | 150.0% |
| Interest expense | 50 | 39 | 11 | 28.2% |
| Interest income | (8) | (15) | 7 | (46.7)% |
| (Loss) income before taxes | (250) | 7 | (257) | (3671.4)% |
| Provision for income taxes | 11 | 25 | (14) | (56.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(261) | $(18) | $(243) | (1350.0)% |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions, except percentages) | **2024** | **2023** | **$ change** | **% change** |
| Net revenue | $4197 | $3570 | $628 | 17.6% |
| Cost of goods sold | 3346 | 2902 | 445 | 15.3% |
| Gross profit | 851 | 668 | 183 | 27.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;*Gross profit margin* | *20.3 %* | *18.7 %* |  | 160 bps |
| &nbsp;&nbsp;Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;Selling, general and administrative expenses | 598 | 454 | 144 | 31.7% |
| &nbsp;&nbsp;Intangible asset amortization | 55 | 13 | 42 | 323.1% |
| &nbsp;&nbsp;Transaction related expenses | 45 |  | 45 | N/A |
| &nbsp;&nbsp;Restructuring, impairment and extinguishment costs | 22 | 13 | 9 | 69.2% |
| &nbsp;&nbsp;Research and development expenses | 17 | - | 17 | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 737 | 480 | 257 | 53.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;Income from operations | 114 | 188 | (74) | (39.4)% |
| Indemnification Agreement expense | 79 | 67 | 12 | 17.9% |
| Other expense (income), net | 4 | (5) | 9 | (180.0)% |
| Interest expense | 39 | 32 | 7 | 21.9% |
| Interest income | (15) | (18) | 3 | (16.7)% |
| Income before taxes | 7 | 112 | (105) | (93.8)% |
| Provision for income taxes | 25 | 50 | (25) | (50.0)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (loss) income | $(18) | $62 | $(81) | (128.5)% |

---

 ****

***Net Revenue***

*2025 compared to 2024*

Net revenue for the year ended December 31, 2025 was $4,784 million, an increase of $587 million, or 14.0%, as compared to the same period in 2024, primarily due to $446 million of revenue from the acquisition of Snap One, $66 million from higher sales volumes, $64 million from favorable price and mix shift, and $18 million from favorable currency exchange rates.

*2024 compared to 2023*

Net revenue for the year ended December 31, 2024 was $4,197 million, an increase of $628 million, or 17.6%, as compared to the same period in 2023, primarily due to $553 million of revenue from the acquisition of Snap One, $98 million from higher volumes and favorable foreign currency fluctuations of $4 million. The increase was partially offset by an unfavorable price impact of $31 million.

 ****

***Gross Profit***

*2025 compared to 2024*

Gross profit for the year ended December 31, 2025 was $1,065 million, an increase of $214 million, or 25.1%, as compared to 2024, and gross margin was 22.3% for the year ended December 31, 2025, up 200 basis points ("bps") from the prior year. The increase in gross margin was primarily driven by favorable impacts from the acquisition of Snap One of 150 bps and favorable pricing and mix impacts of 100 bps, partly offset by increased freight and duties of 20 bps, and volume impact of 10 bps.

*2024 compared to 2023*

Gross profit for the year ended December 31, 2024, was $851 million, an increase of $183 million, or 27.4%, as compared to 2023, and gross margin was 20.3% for the year ended December 31, 2024, up 160 bps from the prior year. The increase in gross margin was primarily driven by favorable impacts from the acquisition of Snap One of 230 bps, partly offset by net impacts from competitive pricing pressure and unfavorable business mix of 60 bps, and freight and duties of 10 bps.

 ****

***Selling, General and Administrative Expenses***

*2025 compared to 2024*

Selling, general and administrative expenses for the year ended December 31, 2025 were $752 million, an increase of $154 million, or 25.8%, as compared to the same period in 2024. The increase was driven mainly by $109 million of incremental operating expenses from the Snap One acquisition, $41 million of inflationary impacts and investment in the business, and $4 million of unfavorable foreign currency exchange rates.

 ****

*2024 compared to 2023*

Selling, general and administrative expenses for the year ended December 31, 2024 were $598 million, an increase of $144 million, or 31.7%, as compared to the same period in 2023. The increase was driven mainly by $141 million of incremental operating expenses from the Snap One acquisition, and $20 million of inflationary impacts and investment in the business. This increase was partially offset by lower employee expenses of $13 million from prior restructuring efforts due to operating expense reduction initiatives.

 ****

***Intangible Asset Amortization***

*2025 compared to 2024*

Intangible asset amortization for the year ended December 31, 2025 was $95 million, an increase of $40 million as compared to the same period in 2024. The increase was primarily due to additional amortization expense of $36 million associated with the new intangibles acquired in the Snap One acquisition, and $4 million higher amortization primarily related to an increase in capitalized software development.

*2024 compared to 2023*

Intangible asset amortization for the year ended December 31, 2024 was $55 million, an increase of $42 million as compared to the same period in 2023. The increase was primarily due to additional amortization expense of $41 million associated with the new intangibles recorded in purchase accounting as a result of the Snap One acquisition.

 ****

***Transaction Related Expenses***

*2025 compared to 2024*

Transaction related expenses for the year ended December 31, 2025 were $16 million, a decrease of $29 million as compared to the same period in 2024. The decrease in costs is primarily due to a $36 million decrease in expenses related to integration costs for the Snap One acquisition, offset by $7 million of expenses incurred in connection with the ADI Spin-Off including third-party advisory, consulting, legal and other incremental separation-related costs.

 ****

*2024 compared to 2023*

Transaction related expenses for the year ended December 31, 2024 were $45 million, an increase of $45 million as compared to the same period in 2023. These costs were attributable to third-party diligence, legal and other third-party advisor fees and integration related costs that were incurred in connection with the Snap One acquisition.

 ****

***Restructuring, Impairment and Extinguishment Costs***

*2025 compared to 2024*

Restructuring, impairment and extinguishment costs for the year ended December 31, 2025 were $9 million, a decrease of $13 million, or 59.1% compared to 2024, primarily due to fewer restructuring actions.

 ****

*2024 compared to 2023*

Restructuring, impairment and extinguishment costs for the year ended December 31, 2024 were $22 million, an increase of $9 million, or 69.2%, as compared to the same period in 2023. The increase primarily reflects higher restructuring expenses of $14 million related to initiatives undertaken in connection with the Snap One acquisition, and $1 million of allocated debt extinguishment costs associated with Resideo's multiple credit agreement amendments during the year. This increase was partially offset by a $6 million decrease in impairment expenses recorded in 2023.

 ****

***Research and Development Expenses***

*2025 compared to 2024*

Research and development expenses for the year ended December 31, 2025 were $39 million, an increase of $22 million compared to 2024. The $22 million increase was primarily due to the full-year inclusion of the acquisition of Snap One, including both employee compensation and third-party professional service costs.

 

*2024 compared to 2023*

Research and development expenses for the year ended December 31, 2024 were $17 million, up from $0 for the same period in 2023. The expenses resulted from new research and development activities obtained as part of the Snap One acquisition, including both employee compensation and third-party professional service costs.

 ****

***Indemnification Agreement Expense***

*2025 compared to 2024*

Indemnification agreement expense for the year ended December 31, 2025 was $364 million, an increase of $285 million, or 360.8%, as compared to the same period in 2024. The increase was driven by an additional expense incurred in connection with the termination of the Indemnification Agreement with Honeywell. Refer to *Note 10. Indemnification Agreement* to the combined financial statements included elsewhere in this information statement for additional information.

*2024 compared to 2023*

Indemnification agreement expense for the year ended December 31, 2024 was $79 million, an increase of $12 million, or 17.9%, as compared to the same period in 2023. The increase was due to an increase in the amount allocated to the combined financial statements as a result of an increase in amounts estimated to be payable by Resideo under the Indemnification Agreement.

 ****

***Other (Income) Expense, Net***

*2025 compared to 2024*

Other (income) expense, net for the year ended December 31, 2025 was $2 million of income, an increase of $6 million, as compared to $4 million of expense for the same period in 2024. The change was driven primarily by a $6 million change in the impact of foreign exchange rate fluctuations during the year ended December 31, 2025.

*2024 compared to 2023*

Other expenses, net for the year ended December 31, 2024 were $4 million of expense, an increase of $9 million, as compared to $5 million of income for the same period in 2023. The change was driven primarily by the impact of foreign exchange rate fluctuations in the year ended December 31, 2024.

 ****

***Interest Expense***

*2025 compared to 2024*

Interest expense for the year ended December 31, 2025 was $50 million, an increase of $11 million, or 28.2% compared to 2024. The change was due to an increase in the total long-term debt by Resideo through additional borrowings related to the termination of the Indemnification Agreement and the resulting increase in the allocated debt and associated interest expense to the Company. Refer to *Note 9. Long-term Debt* to the combined financial statements included elsewhere in this information statement for additional information.

 

*2024 compared to 2023*

Interest expense for the year ended December 31, 2024 was $39 million, an increase of $7 million, or 21.9%, as compared to the same period in 2023. The change was due to an increase in the total long-term debt at Resideo through additional borrowings and the resulting increase in the allocated debt and associated interest expense to the Company. Refer to *Note 9. Long-term Debt* to the combined financial statements included elsewhere in this information statement for additional information.

 ****

***Interest Income***

*2025 compared to 2024*

Interest income for the year ended December 31, 2025 was $8 million, a decrease of $7 million, or 46.7%, as compared to the same period in 2024. The change was primarily due to a decrease of $4 million of allocated interest income related to interest rate swaps and $3 million lower interest on related party assets.

 

*2024 compared to 2023*

Interest income for the year ended December 31, 2024 was $15 million, a decrease of $3 million, or 16.7%, as compared to the same period in 2023. The change was primarily due to lower interest income on related party assets.

 ****

***Provision for Income Tax***

*2025 compared to 2024*

Provision for income tax for the year ended December 31, 2025 was $11 million, a decrease of $14 million, or 56.0%, as compared to the same period in 2024. The $14 million decrease in tax expense was primarily driven by $25 million of tax benefit associated with interest expense resulting from the Indemnification Agreement termination, partially offset by a $7 million dollar increase in tax expense from the increase in income before taxes and before the non-deductible costs incurred to terminate the Indemnification Agreement.

The effective tax rate for the year ended December 31, 2025 was (4.2)% as compared to 327.7% in the same period in 2024. The decrease was primarily driven by non-deductible costs incurred to terminate the Indemnification Agreement and the associated interest expense deduction. Excluding these costs, the effective tax rate for 2025 is approximately 29%.

 

*2024 compared to 2023*

Provision for income tax for the year ended December 31, 2024 was $25 million, a decrease of $25 million, or 50.0%, as compared to the same period in 2023. The decrease in income tax expense was primarily due to a decrease in income before taxes.

The effective tax rate for the year ended December 31, 2024 was 327.7% as compared to 43.8% in the same period in 2023. The increase was primarily driven by non-deductible indemnification costs, which materially distorted the effective tax rate. Excluding these costs, the effective tax rate for 2024 is approximately 31%.

**Non-GAAP Financial Measures**

In addition to the key operational metrics above and our financial results as reported under U.S. GAAP, we evaluate our operating performance using certain financial measures, including Adjusted net income, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted free cash flow, that are not defined by, or prepared in accordance with, U.S. GAAP. We refer to these measures as "non-GAAP" financial measures. These non-GAAP financial measures are supplemental measures of our performance that we believe help investors to better understand our financial condition and operating results and to analyze business trends by providing measures which management uses to evaluate operating performance. We use these non-GAAP financial measures, in addition to the corresponding U.S. GAAP financial measures, as important supplemental measures of our operating performance that exclude non-cash and other disclosed items that we believe are not indicative of our underlying business, core operating results and the overall health of our company. We believe the use of such non-GAAP financial measures assists investors in understanding the ongoing operating performance of the Company by presenting the financial results between periods on a more comparable basis. These non-GAAP measures should be considered only as supplements to, and should not be considered in isolation or used as a substitute for, financial information prepared in accordance with U.S. GAAP. We further believe that providing this information assists our investors in understanding our operating performance and the methodology used by management to evaluate and measure such performance. In conjunction with our U.S. GAAP results, we use these non-GAAP measures to assess business performance, particularly when comparing performance to past periods. As such, we believe these measures are useful for investors because they facilitate a comparison of financial results from period to period.

Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations discussed below, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Readers should review the reconciliations below and should not rely on any single financial measure to evaluate our business. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow.

We believe that Adjusted net income, Adjusted EBITDA and Adjusted EBITDA margin, which are adjusted to exclude the effects of unique and/or non-cash items that are not closely associated with ongoing operations, provide management and investors with meaningful measures of our performance that increase the period-to-period comparability by highlighting the results from ongoing operations and the underlying profitability factors. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of revenue. We believe Adjusted net income, Adjusted EBITDA and Adjusted EBITDA margin provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations without the effect of charges that do not relate to the core operations of our business, such as the impact of acquisitions, the Indemnification Agreement and foreign currency impacts, as these activities can obscure underlying trends. We believe that Adjusted free cash flow is a useful measure of liquidity and an additional basis for assessing our ability to generate cash.

We believe these measures provide additional insight into how our businesses are performing by excluding certain disclosed items that we believe are not representative of our underlying business and operating performance. However, Adjusted net income, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted free cash flow should not be construed as inferring that our future results will be unaffected by the items for which the measures adjust.

The following table provides a reconciliation of net (loss) income, the most closely comparable GAAP financial measure, to Adjusted net income:

 **

***Adjusted Net Income***

 **

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| **Net (loss) income** | $(261) | $(18) | $62 |
| Intangible asset amortization | 95 | 55 | 13 |
| Indemnification Agreement expense (1) | 364 | 79 | 67 |
| Stock-based compensation expense (2) | 24 | 23 | 15 |
| Restructuring, impairment and extinguishment costs (3) | 9 | 22 | 13 |
| Transaction related expenses (4) | 16 | 45 |  |
| Purchase accounting fair value adjustments (5) |  | 9 |  |
| Other (6) | (2) | 6 | (5) |
| Tax effect of applicable non-GAAP adjustments (7) | (64) | (40) | (9) |
| &nbsp;&nbsp;&nbsp;**Adjusted net income** | $181 | $181 | $156 |

---

 ****

(1) Consists of charges associated
with the Indemnification Agreement that were allocated to the Combined Financial Statements. Refer to *Note 10. Indemnification Agreement* within the Combined Financial Statements for additional information.

(2) Represents non-cash compensation
expenses recognized for stock-based compensation arrangements.

(3) Consists of non-recurring charges
associated with restructuring initiatives, primarily related to the Snap One Acquisition in 2024, as well as non-cash asset impairment
charges and the allocation of debt extinguishment costs associated with third-party debt instruments. Refer to *Note 5. Restructuring* within the Combined Financial Statements for additional information.

(4) In 2025, represents $9 million Snap One integration costs and $7 million transaction costs related to the Spin-off. Expenses incurred in 2024 relate to the Snap One Acquisition.

(5) Represents the impact to Cost
of goods sold of acquisition-related inventory step-up adjustments recognized in connection with the Snap One Acquisition in 2024.

(6) Represents (a) amounts included
in Other Expense on the Combined Statement of Operations and (b) litigation settlements incurred during 2024.

&nbsp;&nbsp;&nbsp;&nbsp;(7) Represents the estimated tax effect of non-GAAP adjustments by applying a flat statutory tax rate of 25%. A one-time tax impact on the Indemnification Agreement of approximately 8% is included for 2025.

The following table provides a reconciliation of net (loss) income and net (loss) income margin, the most closely comparable GAAP financial measures, to Adjusted EBITDA and Adjusted EBITDA margin:

 **

***Adjusted EBITDA and Adjusted EBITDA margin***

 **

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| **Net revenue** | $4784 | $4197 | $3570 |
| **Net (loss) income** | $(261) | $(18) | $62 |
| **Net (loss) income margin** | (5.5)% | (0.4)% | 1.7% |
| Provision for income taxes | 11 | 25 | 50 |
| **Income before taxes** | (250) | 7 | 112 |
| Depreciation and amortization | 115 | 71 | 22 |
| Interest expense | 50 | 39 | 32 |
| Interest income | (8) | (15) | (18) |
| Indemnification Agreement expense (1) | 364 | 79 | 67 |
| Stock-based compensation expense (2) | 24 | 23 | 15 |
| Restructuring, impairment and extinguishment costs (3) | 9 | 22 | 13 |
| Transaction related expenses (4) | 16 | 45 |  |
| Purchase accounting fair value adjustments (5) |  | 9 |  |
| Other (6) | (2) | 6 | (5) |
| **Adjusted EBITDA** | $**318** | $**286** | $**238** |
| &nbsp;&nbsp;&nbsp;**Adjusted EBITDA margin** | **6.6%** | **6.8%** | **6.7%** |

---

 ****

(1) Consists of charges associated
with the Indemnification Agreement that were allocated to the Combined Financial Statements. Refer to *Note 10. Indemnification Agreement* within the Combined Financial Statements for additional information.

(2) Represents non-cash compensation
expenses recognized for stock-based compensation arrangements.

(3) Consists of non-recurring charges
associated with restructuring initiatives, primarily related to the Snap One Acquisition in 2024, as well as non-cash asset impairment
charges and the allocation of debt extinguishment costs associated with third-party debt instruments. Refer to *Note 5. Restructuring* within the Combined Financial Statements for additional information.

(4) Represents expenses incurred in
2025 for integration costs related to the Snap One Acquisition of $9 million and allocated transaction costs primarily related to third
party vendors incurred due to the Spin-off of $7 million. Expenses incurred in 2024 relate to the Snap One Acquisition.

(5) Represents the impact to Cost
of goods sold of acquisition-related inventory step-up adjustments recognized in connection with the Snap One Acquisition in 2024.

(6) Represents (a) amounts included
in Other Expense reported on the Combined Statement of Operations and (b) litigation settlements incurred during 2024.

The following table provides a reconciliation of net cash flows provided by operating activities, the most closely comparable GAAP financial measure, to Adjusted free cash flow:

 **

***Adjusted free cash flow***

 **

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| **Net cash flows (used in) provided by operating activities** | $(522) | $85 | $**103** |
| Less: capital expenditures | (54) | (25) | (27) |
| Add: allocated portion of the one-time payment made to Honeywell to terminate the Indemnification Agreement | 595 |  |  |
| **Adjusted free cash flow** | $**19** | $**60** | $**76** |

---

**Capital Resources and Liquidity**

As of December 31, 2025, total cash and cash equivalents were $124 million. The cash reflected on our combined balance sheets represents cash accounts legally owned by our subsidiaries and comprises both (a) bank accounts held by local jurisdictions that do not participate in centralized cash pooling arrangements, as well as (b) bank accounts that participate in centralized cash pooling arrangements and are owned by our subsidiaries.

Historically, Resideo has provided cash management and other treasury services to us, the effect of which is presented as Due to related parties – current, Due from related parties – non-current and Net parent investment in the combined financial statements included elsewhere in this information statement. Upon completion of the Spin-Off, we will cease participation in Resideo's cash pooling process, effectively settle any outstanding related party loan arrangements and our cash and cash equivalents will be held and used solely for our own operations. As a result, our capital structure, long-term commitments and sources of liquidity are expected to change meaningfully from our historical practices. For additional detail regarding changes to our capital structure, see the sections entitled "Unaudited Pro Forma Combined Financial Statements" and "Description of Material Indebtedness" within this information statement.

Our future capital requirements will depend on many factors, including the rate of sales growth, market acceptance of our products, the timing and extent of research and development projects, potential acquisitions of companies or technologies, and the expansion of our sales and marketing activities. We may enter into acquisitions or strategic arrangements in the future, which also could require us to seek additional equity or debt financing. In connection with the Spin-Off, we plan to enter into new financing arrangements described in the section entitled "Description of Material Indebtedness." In connection with the Spin-Off, we will also be issuing shares of ADI preferred stock which will include an obligation to pay regular dividends to the holders of the ADI preferred stock and will include a conversion feature as described in the section entitled "Description of Capital Stock—Preferred Stock." Fulfilling our obligations to pay dividends or the exercise of any optional redemption rights with respect to the outstanding ADI preferred stock could, if paid in cash, impact our liquidity and reduce the amount of cash available for working capital, capital expenditures, growth opportunities, acquisitions, and other general corporate purposes. We believe our existing cash at the Spin-Off, cash flows generated from operations and access to capital markets will provide adequate resources to meet the needs of our current and planned operations.

To the extent our current liquidity is insufficient to fund future activities, we may need to raise additional funds, such as refinancing or securing new secured or unsecured debt, common or preferred equity, disposing of certain assets to fund our operations, and/or other public or private sources of capital. If we raise additional funds by issuing equity securities, the ownership of our existing stockholders will be diluted. The incurrence of additional debt financing would result in debt service obligations, and any future instruments governing such debt could provide for operating and financial covenants that could restrict our operations. We cannot assure you that we could obtain refinancing or additional financing on favorable terms or at all. See "Risk Factors—General Risk Factors—Our ability to raise capital in the future may be limited and our failure to raise capital may limit our ability to invest in strategic priorities and grow our business."

With respect to long-term debt of Resideo and the Indemnification Agreement liability, the Company has not historically made cash payments to third parties as such payments are made by Resideo and there is no expectation or requirement for the Company to be obligated to make payments of this nature in the future as the Indemnification Agreement (including the guarantee provided by ADI) has been terminated on August 13, 2025 and, in the case of the long-term debt of Resideo, ADI is not expected to continue to be an obligor or guarantor with respect to these obligations upon the closing of the Spin-Off.

 ****

***Credit Agreement***

A subsidiary of Resideo (the "Borrower") is the borrower under multiple third-party debt instruments for which we are jointly and severally liable as a guarantor, along with other U.S. subsidiaries of the Borrower. For such arrangements, the Borrower's long-term third-party debt has been allocated to the Company for each reporting period. The related interest expense, including the effects of the Borrower's interest rate swaps and interest rate cap, and amortization of deferred financing costs have been allocated to the Company for the periods presented in this information statement. An allocated portion of the Borrower's unrealized gains or losses on the swaps and interest rate cap were also included within the accumulated other comprehensive loss for all periods presented. The portion of the Borrower's debt and debt-related items allocated to us is based on what we would reasonably expect to pay on behalf of our co-obligors.

In February 2021, the Borrower entered into an Amendment and Restatement Agreement with JPMorgan Chase Bank N.A. as administrative agent and certain other financial institutions as lenders and/or issuing banks (the "Amendment"), which amended and restated (and refinanced in full) the Borrower's then existing Credit Agreement dated as of October 25, 2018 (as amended, amended and restated, supplemented or otherwise modified from time to time, including pursuant to the Amendment, the "Credit Agreement"). Pursuant to the Credit Agreement (after giving effect to the Amendment), the Borrower obtained $1.45 billion of senior secured financing, consisting of (i) $950 million of senior secured term B loans, maturing in February 2028 (the "2028 Term B Loans") and (ii) a $500 million, five-year senior secured revolving credit facility (the "Revolving Credit Facility").

In March 2022, the Credit Agreement was amended, pursuant to which the Borrower obtained an additional $200 million of 2028 Term B Loans.

In June 2023, the Credit Agreement was amended to replace the interest rate reference rate of LIBOR with the secured overnight financing rate ("SOFR").

In May 2024, the Credit Agreement was amended to reprice the 2028 Term B Loans by (i) reducing the interest rate margin from 2.25% to 2.00%, (ii) eliminating the SOFR credit spread adjustment, (iii) reducing the SOFR floor from 0.50% to 0% and (iv) reinstating the call protection (which had previously expired) for six months post-amendment.

In June 2024, the Credit Agreement was amended, pursuant to which the Borrower obtained a new tranche of senior secured term B loans maturing in June 2031 in an aggregate principal amount of $600 million (the "2031 Term B Loans").

In December 2024, the Credit Agreement was amended to reprice the 2028 Term B Loans and the 2031 Term B Loans by (i) reducing the interest rate margin from 2.00% to 1.75% and (ii) reinstating the call protection (which had previously expired) for six months post-amendment.

In August 2025, the Credit Agreement was amended, pursuant to which the Borrower obtained a new tranche of senior secured term B loans maturing in August 2032 in an aggregate principal amount of $1,225 million.

The Borrower has entered into certain interest rate swap agreements to effectively convert a portion of the variable-rate debt to fixed-rate debt.

Refer to *Note 9. Long-Term Debt* to the combined financial statements for a description of the Borrower's debt obligations and the timing of future principal and interest payments.

 ****

***Senior Notes***

In August 2021, the Borrower issued $300 million in principal amount of 4.00% Senior Notes due in 2029 (the "Senior Notes due 2029"). The Senior Notes due 2029 are senior unsecured obligations of Resideo guaranteed by Resideo's existing and future domestic subsidiaries, rank equally with all of Resideo's senior unsecured debt and are senior to all of its subordinated debt.

In July 2024, the Borrower issued $600 million in aggregate principal of 6.50% Senior Notes due 2032 (the "Senior Notes due 2032"). The net proceeds from the Senior Notes due 2032 were used to repay $596 million principal amount of outstanding 2028 Term B Loans.

As of December 31, 2025, the Borrower was in compliance with all covenants related to the Credit Agreement, Senior Notes due 2029 and Senior Notes due 2032.

As of December 31, 2025, Resideo had $3,231 million of long-term debt outstanding under the Credit Agreement, Senior Notes due 2029 and Senior Notes due 2032, of which $18 million is due in the next 12 months.

 ****

***Indemnification Agreement***

Resideo separated from Honeywell in 2018, becoming an independently traded public company as a result of a pro rata distribution of Resideo's common stock to the stockholders of Honeywell ("Resideo Spin-Off"). In connection with the Resideo Spin-Off, Resideo entered into the Indemnification Agreement for which we were jointly and severally liable along with other subsidiaries of Resideo until the termination thereof on August 13, 2025. Accordingly, a portion of Resideo's historical obligations under the agreement, and the resulting termination discussed below, has been allocated to us for the periods presented. The related expenses have also been allocated to us for the periods presented. The portion of Resideo's obligation and related items allocated to us is based on what we would have reasonably expected to pay on behalf of our co-obligors.

Pursuant to the Indemnification Agreement, Resideo had an obligation to make cash payments to Honeywell in amounts equal to 90% of Honeywell's payments, which included amounts billed, with respect to certain environmental claims, remediation and, to the extent arising after the Resideo spin-off, hazardous exposure or toxic tort claims, in each case, including consequential damages (the "liabilities") in respect to specified Honeywell properties contaminated through historical business operations prior to the Resideo spin-off ("Honeywell Sites"), including the legal and other costs of defending and resolving such liabilities, less 90% of Honeywell's net insurance receipts relating to such liabilities, and less 90% of the net proceeds received by Honeywell in connection with (i) affirmative claims relating to such liabilities, (ii) contributions by other parties relating to such liabilities and (iii) certain property sales. The amount payable in respect of such liabilities arising in any given year was subject to a cap of $140 million. Indemnification Agreement expenses are presented within Indemnification Agreement expense in the combined financial statements included elsewhere in this information statement. As of December 31, 2025, no allocated portion of the liabilities related to the Indemnification Agreement is presented within the combined balance sheet as the agreement was terminated.

Refer to *Note 10. Indemnification Agreement* within the combined financial statements included elsewhere in this information statement for additional information.

**Cash Flow Summary for the Years Ended December 31, 2025, 2024 and 2023**

Our cash flows from operating, investing, and financing activities for the years ended December 31, 2025, 2024 and 2023, as reflected in the combined financial statements are summarized as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** | **$ change (2025 v. 2024)** | **$ change (2024 v. 2023)** |
| Cash provided by (used for): | Cash provided by (used for): | Cash provided by (used for): | Cash provided by (used for): | Cash provided by (used for): | Cash provided by (used for): |
| &nbsp;&nbsp;&nbsp;Operating activities | $(522) | $85 | $103 | $(607) | $(18) |
| &nbsp;&nbsp;&nbsp;Investing activities | (68) | (118) | (15) | 50 | (103) |
| &nbsp;&nbsp;&nbsp;Financing activities | 570 | 57 | (42) | 513 | 99 |
| &nbsp;&nbsp;&nbsp;Effect of exchange rate changes on cash | 7 | (6) | 4 | 13 | 10 |
| Net increase in cash, cash equivalents and restricted cash | $(13) | $18 | $50 | $(31) | $32 |

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***Operating Activities***

Net cash used for operating activities for the year ended December 31, 2025 was $(522) million, a decrease of $607 million compared to the $85 million cash provided by operating activities in the prior year. This change was primarily driven by an increase in cash outflows associated with allocated payments related to the Indemnification Agreement, including the termination payment in the year ended December 31, 2025. The cash outflow associated with the Indemnification Agreement in the year ended December 31, 2025 was $634 million which represented an increase in cash used of $581 million relative to the prior year. The remaining change of $26 million was driven by cash used for other working capital accounts, partially offset by income, excluding the impacts of the Indemnification Agreement, and non-cash add-backs.

Net cash provided by operating activities for the year ended December 31, 2024 was $85 million, a decrease of $18 million compared to the prior year. The decrease was primarily attributable to reductions of $9 million in operating lease liabilities and $12 million in deferred income tax liabilities, partially offset by a decrease in cash used for working capital accounts of $2 million.

***Investing Activities***

Net cash used for investing activities for the year ended December 31, 2025 was $(68) million, an increase of $50 million, compared to the prior year, primarily driven by a decrease of $201 million in loans made to related parties, partially offset by a decrease of $122 million in proceeds from related-party loan arrangements and an increase of $29 million in capital expenditures.

Net cash used for investing activities for the year ended December 31, 2024 was $(118) million, an increase of $103 million, compared to the prior year, primarily driven by a decrease of $157 million in proceeds from related-party loan arrangements, which was offset by a decrease of $53 million in net loans made to related parties.

***Financing Activities***

Net cash provided by financing activities for the year ended December 31, 2025 was $570 million, an increase of $513 million compared to the prior year, primarily due to an increase in transfers from Resideo in connection to general financing activities of $453 million and $60 million of cash inflow related to net financings associated with cash pooling arrangements.

Net cash provided by financing activities for the year ended December 31, 2024 was $57 million, an increase of $99 million compared to the prior year, primarily due to an increase in transfers from Resideo in connection to general financing activities of $195 million, which was partially offset by an increase of $96 million in cash outflows related to net financings associated with cash pooling arrangements.

**Contractual Obligations and Probable Liability Payments**

In addition to our long-term debt discussed above, our material cash requirements include the following contractual obligations.

*Operating Leases*

We have operating lease arrangements for the majority of our stores, distribution centers, offices, engineering sites, automobiles, and certain equipment. As of December 31, 2025, we had operating lease payment obligations of $246 million, with $37 million payable within 12 months.

*Purchase Obligations*

On occasion, we enter into purchase obligations with certain vendors. As of December 31, 2025, we had purchase obligations of $78 million, with $78 million payable within 12 months.

**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 revenue or expenses, results of operations, liquidity, capital expenditures, or capital resources.

**Critical Accounting Estimates**

Our combined financial statements are prepared in accordance with U.S. GAAP and pursuant to the regulations of the SEC and are based in part on the application of significant accounting policies, many of which require us to make estimates and assumptions. Application of the critical accounting estimates discussed below requires management's significant judgments and involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition and results of operations. We review our estimates and assumptions on an ongoing basis and reflect changes as appropriate when additional information becomes available. We base our estimates and assumptions on pertinent factors we believe are applicable and reasonable under the circumstances, such as forecasts of future performance, which serve as the foundation for determining how to recognize and measure assets and liabilities not readily apparent from other sources. We consider the below critical areas in the application of our accounting policies and estimates that involve a significant level of estimation uncertainty, complex judgment, subjectivity, and have had or are reasonably likely to have a material impact on our financial condition or results of operations and are critical to the understanding of our combined financial statements. Actual results could differ materially from our estimates and assumptions. Refer to *Note 2. Summary of Significant Accounting Policies* to the combined financial statements included elsewhere in this information statement for a description of our major accounting policies.

***Corporate Expense Allocations***

The combined financial statements include expense allocations for certain corporate, infrastructure, and shared services expenses provided by Resideo on a centralized basis, including, but not limited to, corporate executives, finance, legal, audit, mergers and acquisitions, human resources, information technology, insurance, employee benefits, costs associated with the Spin-Off and other expenses that are either specifically identifiable or clearly applicable to the Company. These expenses have been allocated to us on the basis of direct usage when identifiable, with the remainder allocated on a pro rata basis using an applicable measure of operating income, headcount, or other allocation methodologies that are considered to be a reasonable reflection of the utilization of services provided or the benefit received by ADI during the periods presented. We consider that such allocations have been made on a reasonable basis; however, these allocations may not be indicative of the actual expense that would have been incurred had we operated as an independent, stand-alone public entity, nor are they indicative of our future expenses. Refer to *Note 16. Related Party Transactions* to the combined financial statements included elsewhere in this information statement.

***Goodwill***

We review the carrying values of goodwill and identifiable intangibles whenever events or changes in circumstances indicate that such carrying values may not be recoverable and annually, on the first day of the fourth quarter. If the carrying value of a reporting unit exceeds its fair value, we record a goodwill impairment loss as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Refer to *Note 7. Goodwill and Other Intangible Assets, net* to the combined financial statements included elsewhere in this information statement.

***Warranties and Guarantees***

Expected warranty costs for products sold are recognized based on an estimate of the amount that eventually will be required to settle such obligations. These accruals are based on factors such as past experience, length of the warranty, and various other considerations. Costs of product recalls, which may include the cost of the product being replaced as well as the customer's cost of the recall, including labor to remove and replace the recalled part, are accrued as part of the warranty accrual at the time an obligation becomes probable and can be reasonably estimated. We periodically adjust these provisions to reflect actual experience and other facts and circumstances that impact the status of existing claims. Refer to *Note 12. Commitments and Contingencies* to the combined financial statements included elsewhere in this information statement for additional information.

***Revenue***

Revenue is measured as the amount of consideration expected to be received in exchange for our products. Allowances for cash discounts, volume rebates, and other customer incentive programs, as well as gross customer returns, among others, are recorded as a reduction of sales at the time of sale based upon the estimated future outcome. Cash discounts, volume rebates and other customer incentive programs are based upon certain percentages agreed upon with various customers, which are typically earned by the customer over an annual period.

Revenue is adjusted for variable consideration, which includes customer volume rebates and prompt payment discounts. We measure variable consideration by estimating expected outcomes using analysis and inputs based upon anticipated performance, historical data, and current and forecasted information. Customer returns are recorded as a reduction to sales on an actual basis throughout the year and also include an estimate at the end of each reporting period for future customer returns related to sales recorded prior to the end of the period. We generally estimate customer returns based upon the time lag that historically occurs between the sale date and the return date, while also factoring in any new business conditions that might impact the historical analysis such as new product introduction. Measurement of variable consideration is reviewed by management periodically and revenue is adjusted accordingly. We do not have significant financing components. Refer to *Note 4. Revenue Recognition* to the combined financial statements included elsewhere in this information statement.

***Third-Party Debt***

We are jointly and severally liable for third-party debt of Resideo and, as a result, a portion of Resideo's debt obligations and related expenses were allocated to the Company based on the amount we would reasonably expect to pay on behalf of the co-obligors. This allocation involved judgment and estimates regarding the timing and amount of future payments. The recognized liability reflected our estimate of amounts that were probable and reasonably estimable. Refer to *Note 9. Long-Term Debt* to the combined financial statements included elsewhere in this information statement.

***Indemnification Agreement***

The allocated obligations under the Indemnification Agreement required significant management judgment and estimates. As we were jointly and severally liable for the Indemnification Agreement prior to its termination on August 13, 2025, a portion of Resideo's obligations and related expenses were allocated to the Company based on the amount we would reasonably expect to pay on behalf of the co-obligors. This allocation involved judgment and estimates regarding the timing and amount of future payments.

On July 30, 2025, Resideo entered into the Termination Agreement with Honeywell to terminate the Indemnification Agreement. Subject to the terms and conditions of the Termination Agreement, Resideo made a pre-tax, one-time cash payment of $1,590 million to Honeywell in August 2025 using proceeds from the incremental term loans and a portion of cash on hand. Resideo is no longer required to make any further payments to Honeywell under the Indemnification Agreement and the associated affirmative and negative covenants no longer apply. Refer to *Note 10. Indemnification Agreement* to the combined financial statements included elsewhere in this information statement.

***Income Taxes***

Significant judgment is required in evaluating tax positions. We established additional reserves for income taxes when, despite the belief that tax positions are fully supportable, there remain certain positions 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, we, along with our subsidiaries, are examined by various federal, state, and foreign tax authorities. We regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments and adjust 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. Refer to *Note 14. Income Taxes* to the combined financial statements included elsewhere in this information statement.

**Other Matters**

***Litigation and Indemnification Agreement***

Refer to *Note 10. Indemnification Agreement* and *Note 12. Commitments and Contingencies* to the combined financial statements included elsewhere in this information statement for further discussion.

**Recent Accounting Pronouncements**

Refer to *Note 2. Summary of Significant Accounting Policies* to the combined financial statements included elsewhere in this information statement.

**Quantitative and Qualitative Disclosures About Market Risk**

We are exposed to market risk from foreign currency exchange rates, commodity prices and interest rates, which could affect operating results, financial position, and cash flows. We manage our exposure to these market risks through our regular operating and financing activities.

***Interest Rate Risk***

While we are not the primary obligor on the underlying debt facilities, we are jointly and severally liable for such arrangements and therefore record an allocated portion of the related obligations in our combined financial statements. Accordingly, we are exposed to interest rate risk on the portion of variable-rate debt allocated to us. Our exposure is affected by the overall terms of the debt structure and is sensitive to changes in the general level of interest rates.

As of December 31, 2025, an increase in interest rates by 100bps would have had an immaterial impact on our annual interest expense. From time to time, we may use interest rate hedging instruments to manage our exposure to interest rate risk; however, we had no such arrangements outstanding as of December 31, 2025.

***Foreign Currency Exchange Rate Risk***

We are exposed to market risks from changes in currency exchange rates. While we primarily transact with customers and suppliers in the U.S. dollar, we also transact in foreign currencies, including the British Pound, Canadian Dollar, Euro, Mexican Peso, Indian Rupee and Czech Koruna. These exposures may impact total assets, liabilities, future earnings and/or operating cash flows. Our exposure to market risk for changes in foreign currency exchange rates emerges from transactions arising from international trade, foreign currency denominated monetary assets and liabilities and international financing activities between subsidiaries. We rely primarily on natural offsets to address our exposures and may supplement this approach from time to time by entering into hedging contracts. As of December 31, 2025, we have no outstanding foreign currency hedging arrangements.

***Commodity Price Risk***

While we are exposed to commodity price risk, we attempt to pass through significant changes in component and raw material costs to our customers based on the contractual terms of our arrangements. In limited situations, we may not be fully compensated for such changes in costs.

**BUSINESS**

**Our Company**

ADI is a global specialty distributor of professionally installed low-voltage products serving commercial and residential markets through an omnichannel go-to-market platform. Within North America, ADI is the market-leading distributor in the professionally installed security, fire/life safety and AV product categories. We offer over 500,000 products from more than 1,000 suppliers across key specialty low-voltage categories with strong proximity to our customers with a large network of store locations. Our omnichannel platform is underpinned by a digital experience designed to deepen customer engagement and broaden our reach. We combine an extensive third-party product portfolio and deep supplier relationships with a growing suite of exclusive brands and software-based services. These exclusive brands and services are designed to help our customers build stronger businesses, differentiate our offerings and improve the end user experience. We are headquartered in Melville, New York, with a workforce of over 4,100 associates located in 20 countries. In 2025 and 2024, ADI generated revenues of $4.8 billion and $4.2 billion, net loss of $261 million and $18 million and Adjusted EBITDA of $318 million and $286 million, respectively.

ADI sells primarily to professional installers, dealers and integrators. Our global customer base of over 100,000 professionals spans independent contractors, regional and national systems integrators and low-voltage specialists (security, fire/life safety, AV and data communications). Our customers serve a number of end users, including small and medium businesses, large enterprises and institutions (e.g., in education, retail, hospitality and industrial sectors) and residential homes. We estimate that 67% of our product sales are installed in commercial end markets with the remaining 33% in residential locations. Demand for our products is driven, among other things, by building activity, retrofit/upgrade cycles, building regulations and standards (e.g., fire/life safety codes) and growing adoption of connected technologies in commercial facilities and homes.

We serve our customers through an omnichannel go-to-market platform – leveraging e-commerce and an integrated network of over 200 locations and more than 20 distribution centers spanning 17 countries (including third-party logistics) as well as robust digital storefronts, including our website and mobile app, each of which is designed to meet the needs of professional installers. We believe our global footprint gives us distinct scale and network advantages relative to our low-voltage distribution competitors. Customers benefit from convenient omnichannel access to our robust and expanding product catalog, exclusive and differentiated ADI brands and expert design and technical support to meet complex system requirements. We are continuously expanding our product selection and investing in strengthening our customer experience by adding functionality and features that can boost installer efficiency and profitability.

While ADI operates as a single operating and reportable segment, which reflects our integrated platform and consolidated resource allocation, we are well-diversified across product categories, end markets and regions.

 ****

<u>Breakdown of FY2025 Revenue by Product Category and Region</u>

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| | |
|:---|:---|
| &nbsp;&nbsp;*<u>By Product Type</u>* | &nbsp;&nbsp;*<u>By Region</u>* |
| &nbsp;&nbsp;![](ea028883201_ex99-1img8.jpg) | &nbsp;&nbsp;![](ea028883201_ex99-1img9.jpg) |

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**Our History**

ADI traces its roots to the Alarm Device Manufacturing Company ("ADEMCO"), founded in 1929 by Maurice Coleman in New York. ADEMCO became a leading maker of intrusion and life safety devices through the mid-20<sup>th</sup> century. In 1963, ADEMCO was acquired by the Pittsburgh Railway Company, which renamed itself Pittway in 1967 as it diversified around security and related businesses. In 1988 Pittway formed ADEMCO Distribution Inc. to better distribute its growing security portfolio, an operation that later evolved into ADI.

In February 2000, Honeywell International acquired Pittway bringing ADI under the Automation & Control segment. The business operated for almost two decades within Honeywell before becoming a part of Resideo upon its spin-off in October 2018. Since then, ADI has grown organically, while also executing a focused M&A strategy to broaden adjacencies, add services and expand regional coverage. Between 2020 and 2023, ADI executed six acquisitions deepening category expertise and expanding customer reach into the professional AV, residential AV and data communications categories.

In June 2024, Resideo acquired Snap One for approximately $1.4 billion and combined ADI's scale and leadership in professionally-installed low voltage products distribution with Snap One's strong position and offerings in residential AV, including the innovative Control4 smart home automation platform used in more than 500,000 homes and businesses and the OvrC cloud-based remote management platform empowering more than 60,000 professional installers with cloud-based configuration, project deployment and remote support capabilities. Together, ADI and Snap One provide integrators an increased selection of both third-party products and exclusive brand offerings.

**Industry Overview**

ADI has a global reach in low-voltage specialty distribution across four interrelated product categories: (i) security, (ii) audio-visual (residential AV and professional AV), (iii) fire/life safety and (iv) data communications, with an increasingly convergent landscape with professionals installing across multiple categories. ADI's largest geography by revenue is North America where management estimates these four product categories represented a large and growing TAI of approximately $65 billion in 2025, with security and fire/life safety representing approximately 15%, residential AV representing approximately 10%, professional AV representing approximately 50% and data communications representing approximately 25%. Drivers of demand by product category include:

● *Security (represents greater than 50% of total revenue for fiscal year 2025)*: Demand is driven by growing sophistication of physical and cyber security threats and increased concerns around crime and asset protection, each of which continues to drive adoption and increased security spend across commercial and residential markets. This growth is further augmented by faster tech-led refresh cycles—AI/cloud upgrades in video surveillance, cloud/mobile credentials expanding access control and modernization of intruder alarms. With a well-known brand in North America despite broadline distributors continuing to gain traction with large commercial projects through bundled offerings, management believes ADI is the leading specialty distributor in security, being strongest in the SMB commercial and residential segments, while select distribution competitors maintain a stronger presence in enterprise grade installations.

● *Audio-visual (represents greater than 25% of total revenue for fiscal year 2025) consists of two sub-categories based on the residential and commercial end markets*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Residential AV*: Demand is driven by increasing adoption of products like control, lighting and digital infrastructure, as smart home automation becomes more common. Housing demand continues to outpace supply domestically and more homes are expected to adopt smart home solutions to include a rising number of devices installed per home. While management believes that our category leadership remains strong with our expansive network of local stores that provide quick access to inventory and the availability of exclusive brand products, ADI competes in this fragmented category with multi-regional specialists which have solid local relationships as well as e-commerce companies. Given its size and scale, management believes ADI is the leading specialty distributor in North America in residential AV; however, it remains exposed to other types of competition, including from DIY solutions, and customers shifting to direct purchasing from manufacturers or other e-commerce platforms outside our industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o *Professional AV*: Demand is driven by video displays, collaboration technologies, momentum in healthcare (telemedicine, hospital experiences) and demand for immersive experiences in live events, higher education and enterprise. Given that our customer acquisition strategy in the professional AV space is still maturing and there remain challenges such as inventory gaps for large commercial projects, management believes ADI is an emerging player in professional AV, with attractive growth opportunities in SMB commercial applications.

● *Fire/life safety (represents greater than 10% of total revenue for fiscal year 2025):* Demand is code and ordinance driven, which creates a durable baseline demand. Fire/life safety also benefits from a strong bundle pull with adjacent security categories (e.g., access control, video) in both commercial and residential businesses, reinforcing our cross-selling opportunities in this industry. These dynamics make fire/life safety a resilient and robust driver for the ADI business. With a line card representing all of the marquee fire brands in the distribution channel, management believes ADI is the leading specialty distributor in North America in fire/life safety.

● *Data Communications (represents less than 5% of total revenue for fiscal year 2025)*: Demand is driven by more digital connectivity, data center expansion, increasing AI workloads and increased high-security and low-latency operations. Management believes that relative to the security space, ADI is an emerging player in this category, with a more limited assortment and investment and a smaller but growing customer set.

**Competitive Strengths**

Our competitive strengths stem from our global footprint and distinct scale, inventory availability and reliability, omnichannel go-to-market platform, deep customer and supplier relationships and exclusive brands. With attractive margins, cash flow generation and a differentiated growth profile, we believe we will continue to be well positioned to organically grow our business and pursue selective M&A opportunities, aligned to our go-forward strategic growth initiatives.

● *Preeminent Global Distributor of Security, Fire/Life Safety, AV and Other Low Voltage Products:* We are a global leader in professionally installed low-voltage products, including security and residential AV. We believe we offer the industry's most robust assortment of low-voltage brands—over 500,000 products from over 1,000 suppliers, curated through disciplined category management to meet key customer needs. In 2025, we achieved an NPS of 54, which management believes reflects strong customer satisfaction relative to industry benchmarks. Our position is reinforced by long-standing relationships with top suppliers and premier integrators, high product availability and superior technical sales support.

● *Global Footprint and Reach:* ADI has over 200 locations and more than 20 regional distribution centers spanning 17 countries that serve a customer base of over 100,000 professionals. Our extensive global footprint, combined with our strategic supplier relationships and focus on customer service, enables ADI to scale effectively to serve both local and enterprise customers with a range of product and service solutions. Additionally, we believe our global scale affords us meaningful procurement efficiencies.

● *Leading Digital Platform Offering Distinctive Omnichannel Experience:* Our digital platform (website and mobile app) provides a seamless purchasing experience for professional buyers, integrating third-party and proprietary AI technologies in dynamic, account-specific pricing, real-time inventory visibility across both stores and distribution centers, delivery date estimation based on item, location and past delivery performance and third-party product search and product recommendations informed by shopping context and user behavior. We also leverage third-party, AI-enabled system design and proposal software to automate key steps in the AV project lifecycle, including bill of materials builders, quote-to-order conversion, real-time order tracking and self-service account management. Omnichannel fulfillment options – such as one-hour store pickup, after-hours lockers and same day shipping – further enhance the customer experience across store and digital channels. We believe the strength of our digital platform is a key driver of our global reach, supporting a digital customer base of approximately 55,000 customers, as of December 31, 2025. In 2023, we generated approximately $700 million or 20% of consolidated revenue from our digital platform, which has grown to approximately $1,086 million or 26% of consolidated revenue in 2024 and approximately $1,415 million or 30% of consolidated revenue in 2025.

● *Differentiated Portfolio of Exclusive Brands*: We have more than a dozen proprietary and exclusive brands with products and solutions we develop in collaboration with third parties, which may be joint development manufacturers, contract manufacturers and in some instances, original equipment manufacturers under ADI trademarks and brands and sell exclusively through our omnichannel distribution platform. These exclusive brands and services are anchored by our connected platforms Control4 and OvrC and designed to enhance project performance and installer economics. Control4 delivers comprehensive automation by integrating lighting, audio, video, security and climate control into a single, intuitive system while supporting thousands of third-party devices and enabling personalized automation for users. OvrC, our cloud-based remote management platform, allows dealers to monitor, configure and troubleshoot Control4 networks and connected devices remotely, reducing service costs and downtime. These products and services drive higher margins, stickier customer relationships and attachment opportunities (software licenses, services and accessories), and differentiate ADI in the marketplace. For the year ended December 31, 2025, exclusive brand products continued to be a highly margin accretive offering delivering more than 3 times the gross margin of third-party product sales. In 2023, we generated approximately $134 million or 4% of consolidated revenues from exclusive brands, which has grown to approximately $524 million or 12% of revenue in 2024 and approximately $842 million or 18% of revenue in 2025. This marked increase in exclusive brand revenue was primarily driven by the acquisition of Snap One in June 2024. Our exclusive brand products and services are currently concentrated in the residential market, and while such products and services are present in all four of our product categories, a significant percentage is sold in the audio-visual and data communications categories.

● *Robust Financial Position With Attractive Adjusted EBITDA Margin, Cash Flow Generation and Strong Growth Profile:* We generated consolidated revenues of $4.8 billion in 2025, 4.4% of which was derived from products supplied by Resideo. Our consolidated revenues in 2025 represents 14% growth as reported, with $446 million of such growth attributable to the Snap One acquisition, and an approximately 5% compound annual growth rate from 2020 (on an organic basis excluding the impact of the Snap One acquisition and other acquisition activity), with a net loss margin of (5.5)% and an Adjusted EBITDA margin of 6.6%. Our fiscal policy and balanced capital allocation approach is designed to support disciplined deleveraging while preserving the capacity to reinvest in our business. We expect to continue to leverage our extensive global footprint, comprehensive product offering, differentiated portfolio of exclusive brands, leading digital platform and omnichannel experience and strong supplier and customer relationships to drive growth above our underlying markets and deliver attractive margins. We continue to invest in technology solutions to bolster the customer experience, increase operating expense productivity, enhance our data-driven operating model and expand profitability. We believe we are well positioned to remain a category leader while expanding into attractive growth verticals.

● *Proven Leadership Team with Operational Momentum and a Culture That Wins:* We have a strong management team with extensive experience, both within the industry and across our company. The leadership team has a track record of delivering consistent revenue growth, margin enhancement and strong cash flow. Further, the organization has executed and integrated accretive inorganic growth opportunities and delivered complex digital transformations to further scale the business. Our culture centers on being the indispensable partner for a smarter, safer future. This is accomplished by ensuring we show up, follow through, make it easy to work with us and help each other do our best work so our customers can do theirs. We believe that this combination of leadership depth and values-driven execution will continue to underpin our success and create long-term value for our stakeholders.

**Growth Strategies**

Our growth strategies are designed to extend our category leadership, deepen differentiation from our competitors and improve our financial profile:

● *Extending Market Leadership Through Best-in-Class Omnichannel Customer Experience:* We are unifying our physical and digital "store" with a single, AI-enabled omnichannel customer experience. On the digital front, we are consolidating various transactional platforms, modernizing product data and investing in third-party and proprietary AI technologies to, among other functions, enhance search and product recommendations, automate quote-to-order and other workflows and estimate inventory and delivery dates so that the digital experience can be a true differentiator and shape the customer buying journey. In parallel, we are modernizing our store formats and broadening our in-store merchandising, while our distribution network is being streamlined to enhance service levels and efficiency and create a consistent, high-quality experience across channels, while delivering meaningful cost savings.

● *Deepening Our Exclusive Brand Offerings:* We are deepening our exclusive brands portfolio by optimizing our offering around a competitive portfolio of brands, categories and products, with a differentiated positioning in the residential AV product category and increasing relevance to commercial applications. Our product development priorities focus on improved end user interfaces, integrated product quality for faster testing and quicker releases to strengthen differentiation, and disciplined cost engineering to create more value with our investments. We believe these actions will deliver a more robust cadence of differentiated new product introductions while deepening cross-sell and loyalty.

● *Scaling in Key Growth Categories – Professional AV and Data Communications:* We aim to scale our presence in professional AV and data communications to become a leading category player, leveraging our existing omnichannel go-to-market platform, overlapping customer base and channel conversion trends to accelerate growth share gains. In professional AV, we are investing in field sales and sales engineering talent to penetrate key accounts and attract premium brands, while also expanding our exclusive brands portfolio to create differentiated project bundles. In data communications, we are increasing our industry relevance through broader product offerings and sales coverage, inventory expansion, targeted marketing investments and deeper category expertise. We believe these initiatives will reinforce our one-stop shop value proposition and deepen our relevance with both existing and new customers.

● *Expanding Service Offerings to Deepen Engagement Across the Value Chain:* We aim to build a data-driven services marketplace for professionals, end users and suppliers. For professionals and end users, we are scaling more than twenty differentiated services to increase customer value, including software offerings focused on increased remote monitoring capability, system and network design offerings, device programming and technical support. These offerings are designed to create recurring revenue streams for integrators and ADI, reduce truck rolls and/or improve the end user experience. For suppliers, we are commercializing services that improve planning and sell-through (e.g., data-as-a-service portal that provides visibility into inventory and sales performance). Collectively, these offerings aim to create value for professionals, end users and suppliers—and, in doing so, deepen our partnerships and increase our stickiness across the value chain.

● *Accelerating Growth Through Targeted Acquisitions*: We have a history of successful strategic acquisitions to accelerate growth through category expansion. We intend to continue to selectively pursue acquisitions that will broaden our product portfolio, expand our geographic footprint and enhance our position in strategic growth categories. We believe our industry knowledge and track record in integration and execution position us well to continue to pursue disciplined and accretive strategic acquisitions.

**Materials and Manufacturing**

We purchase third-party products from more than 1000 suppliers, which are located and manufacture in markets including the United States, Mexico, Canada, Asia, and the European Union. The main product categories we source from third parties are security, fire/life safety, networking, audio-visual and data communications. In 2025, our ten largest suppliers accounted for approximately 47% of our revenue by dollar volume for the period, and no single supplier accounted for more than 10% of our revenue for the same period, except for one supplier that generated approximately 13.3% of our total revenue in 2025. We are party to our standard written distribution agreements with more than 800 suppliers, with an average term of 3 years. Our standard distribution agreements are not terminable for convenience, require our suppliers to provide at least 60 days' written notice of any price increase and provide for volume rebates and prompt payment discounts. None of our material distribution agreements are on an exclusive basis. See "Risk Factors—Risks Relating to Our Business—Loss of key suppliers could decrease sales, profit margins and earnings."

We rely on third-party manufacturers to supply third-party products, and we rely on a limited number of contract manufacturers to produce many of our exclusive branded products. Our exclusive brand manufacturing and supply agreements generally provide for a multi-year minimum supply period and are not terminable for convenience. In some cases, our suppliers may be the sole suppliers of a product or product components. Reliance upon third-parties for product supply and production reduces our control over the assembly process, exposing us to risks, including reduced control over quality assurance, production costs and product supply. Raw material price fluctuations, the ability of key suppliers to meet quality and delivery requirements, and catastrophic events can increase the cost and affect the supply of our products and services and impact our ability to meet commitments to customers. See "Risk Factors—Risks Relating to Our Business—Disruptions to our supply chain, logistics network, and fulfillment centers, and reliance on third-party contract manufacturers could impair our ability to meet demand and increase our costs." Additionally, a significant percentage of our exclusive branded products and components are sourced from Asia. Such a regional focus introduces political, economic, social, regulatory and legal uncertainties that may harm our relationships with them. See "Risk Factors—Risks Relating to Our Business—We are subject to the economic, political, regulatory, foreign exchange and other risks of international operations."

**Intellectual Property**

We have major product and software design and development centers in Lehi, Utah, Charlotte, North Carolina and Belgrade, Serbia.

Our deep domain expertise, proprietary technology and brands are protected by a combination of patents, trademarks, copyrights, trade secrets, non-disclosure agreements, contractual provisions and physical and technological safeguards. As of December 31, 2025, we owned approximately 97 worldwide active patents and 25 pending patent applications to protect our research and development investments in new products and services. We have and will continue to protect our products and technology, including by, among other alternatives, asserting our intellectual property rights against third-party infringers. Refer to *Note 12. Commitments and Contingencies* to the combined financial statements. Our intellectual property program includes structured processes for patents and trademarks to safeguard innovation and brand assets. For patents, we regularly review new products under development, conduct patent mining sessions to identify protectable features and provide training to help employees recognize patentable ideas. A dedicated patent committee meets monthly to evaluate submissions, and we review granted patents with product and engineering managers to confirm their ongoing business value before incurring maintenance costs. For trademarks, we review new products to determine the need for protecting additional trademark rights and conduct regular audits of pending and registered marks to ensure active use and appropriate geographic coverage. These practices help maintain a strong and relevant IP portfolio aligned with our strategic objectives. For a more detailed description of the various intellectual property rights and relationships that affect our business, refer to "Risk Factors—Risks Relating to Information Technology, Intellectual Property and Data Security and Privacy."

**Competition**

We compete with global, national, regional and local providers for our distribution of products, as well as direct sales, big box and online sellers with non-traditional business and customer service models. Additionally, we compete with many manufacturers and service providers who have disruptive technologies and products, including large technology companies competing in the connected home space as well as smaller market entrants that offer control capabilities among their products, applications and services and have ongoing development efforts to address the broader connected home market.

Factors influencing our competitive position in the industry include the reputation of our Company, exclusive brands and the third-party brands we sell; price; sales and marketing programs; e-commerce customer experience; product availability; ease of installation; speed and accuracy of delivery; customer and technical support; and product performance.

**Seasonal Nature of Business**

The effects of climate change, such as extreme weather conditions and events and water scarcity, may exacerbate fluctuations in typical weather patterns, creating financial risks to our business. In addition, the dynamic global and macro-economic conditions and regulatory changes may further disrupt these seasonal patterns. We also historically experience some slight variability in our results of operations and capital requirements from quarter to quarter due to the seasonal nature of our end users' businesses with a minor increase in revenues due to more active homebuilding, school spending and general construction activities during the second and third quarters. As a result, our revenue may fluctuate on a quarterly basis, and we may have higher capital requirements during these quarters in order to maintain our inventory levels.

**Human Capital**

As of December 31, 2025, we employed approximately 4,100 employees in 20 countries, of which about 2,693 employees were located in the U.S. and 319 in Mexico. None of our U.S. employees is covered by a collective bargaining agreement and approximately 20% of our non-U.S. employees are covered by national collective labor agreements. We believe relations with our workforce are good.

*Talent Acquisition, Management and Development:*

We have a robust recruiting model to attract all levels of talent across the regions where we operate, and diversity is one of our core components. Our model includes (1) attract, develop, and retain a diverse workforce, (2) foster a winning culture, and (3) be identified as a company of choice by our customers and the communities we serve. We continue to assess the needs of the business and identify diverse organizations to partner with that promote a pipeline of diverse talent.

In 2025, our average time to accepted offer for open roles was 27 days, and we hired approximately 792 employees, of which approximately 140 were warehouse workers. Internally, strategic talent reviews and succession planning occur on an annual basis, globally and across all business areas. In addition, we provide regular trainings to our people managers. Our annual Employee Voice Survey allows each function in our company to better understand engagement across the organization. In 2025, we made enhancements to provide action group owners a deeper understanding of the scores in their groups across various categories.

We conduct three performance review discussions throughout the year and refer to them as the "Pulse." In 2025, we introduced performance ratings as part of the final "Pulse" conversation. The purpose of the rating is to drive accountability, strengthen our succession planning process and establish "pay-for-performance" standards.

*Culture:*

ADI culture is centered on a customer first mentality, ensuring we are an indispensable partner to efficiently support customers' needs. Our seamless omnichannel experience and disciplined category management drive customer satisfaction, reflected in our strong NPS of 54 in 2025. This is accomplished by fostering a collaborative and results oriented ADI culture, so our employees help each other do our best work so we can best help our customers. We believe that this combination of leadership depth and values-driven execution will continue to underpin our success and create long-term value for our shareholders.

Our culture is reflected through four core values:

● Start With The Customer by understanding the customers' needs and have pride in delivering exceptional experience.

● Act As One Team by working toward common goals and engaging from a place of humility and respect.

● Pioneer The Future by embracing change and fostering innovation to fuel growth.

● Make A Difference by making a long-lasting, positive impact on each other, our customers, our communities and our planet.

Our leadership actively works to instill a culture of accountability referred to as: See It, Own It, Solve It, Do It.

● See It: Acknowledge the problem.

● Own it: Take responsibility for it.

● Solve It: Determine what I can do.

● Do it: Take action.

 

*Total Rewards:*

Our primary reward strategy is ensuring "pay-for-performance" on an annual basis, as well as over the long term, which drives a mindset of accountability and productivity. Our compensation guiding principles are to structure compensation that is simple, aligned and balanced. We structure and administer our rewards programs in a manner consistent with good governance practices. We believe that the interests of employees must be aligned with our stockholders. We provide comprehensive and competitive benefits that are designed to meet the varying needs of our employees and promote choice. Our package includes paid time off, flexible work schedules, education assistance programs and more.

These actions reinforce our culture that values employees and seeks to attract and retain the talent that we need to win in the market. We believe the combination of our competitive pay-for-performance compensation programs and our comprehensive benefit programs demonstrate our commitment to a compelling total rewards value proposition for our employees.

 

*Health and Safety:*

Our global Total Case Incident Rate (TCIR), which tracks the number of occupational injuries and illnesses per 100 employees, was 0.55 at the close of 2025. This reflects our continued focus on proactive safety measures. We monitor our health and safety performance through a balanced scorecard of key performance indicators (KPIs), encompassing both reactive incident management and proactive safety measures. In addition to thorough incident investigations and root cause analysis, we leverage data from hazard observations, regular health and safety inspections conducted by line managers and internal audits led by accredited health and safety auditors. These insights enable us to identify and address potential risks before they lead to incidents, reinforcing our ongoing commitment to the well-being of our workforce.

**Regulatory Matters**

We are subject to various federal, state, local and foreign government requirements relating to environmental, health and safety protection standards and permitting, labeling and other requirements regarding, among other things, electronic and wireless communications, safety, electromagnetic interference and energy efficiency, digital and physical accessibility, government procurement, air emissions, wastewater discharges, the use, handling and disposal of hazardous or toxic materials, remediation of environmental contamination, data privacy and security, cybersecurity, artificial intelligence, import and export requirements, anti-bribery and corruption laws, tax laws (including U.S. taxes on foreign subsidiaries), foreign exchange controls and cash repatriation restrictions, telemarketing, email marketing, other forms of online advertising and consumer protection, product compliance laws, licensing, regulations and potential expansion of regulations on suppliers regarding the sources of supplies or products, working conditions for and compensation of our employees and others. Additionally, government regulations may impose limitations or prohibitions on sales of products manufactured by certain manufacturers. Moreover, we are subject to audits and inquiries in the normal course of business. These and other laws and regulations impact the manner in which we conduct our business and changes in legislation or government policies can affect our worldwide operations, both favorably and unfavorably. For a more detailed description of the various laws and regulations that affect our business, refer to "Risk Factors—Risks Relating to Legal and Regulatory Matters."

**Properties**

Our corporate headquarters is located in Melville, New York, where we lease approximately 31,703 square feet of office space pursuant to a lease agreement that expires in May 2032, subject to the terms thereof. The following table shows the types of sites owned or leased by the ADI segment and corporate functions as of December 31, 2025:

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| | |
|:---|:---|
|  | **ADI Global<br> Distribution** |
| Distribution centers | 21 |
| Store Locations | 198 |
| Other | 27 |
| &nbsp;&nbsp;&nbsp;Totals | 246 |

---

Other sites owned or leased include offices and engineering, lab and storage sites used by one or more of our functions.

The following table shows the regional distribution of these sites:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Americas** | **Americas** | **Asia <br> Pacific** | **Asia <br> Pacific** | **EMEA** | **EMEA** |
| Sites |  | 191 |  | 4 |  | 51 |

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In addition to the above sites, we partner with third-party logistics that operate warehousing and transportation sites for some of our products.

We believe our properties are adequate and suitable for our business as presently conducted and are adequately maintained.

**Legal Proceedings**

We are subject to various lawsuits, investigations and disputes arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employment and benefits, intellectual property and the environment, health and safety. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. We do not currently believe that such matters are material to our results of operations.

Refer to *Note 12. Commitments and Contingencies* to the combined financial statements for information regarding legal proceedings and contingencies, and for a discussion of risks related to legal proceedings and contingencies, refer to "Risk Factors."

**MANAGEMENT**

**Executive Officers**

Following the separation of ADI from Resideo, we will be an independent, publicly traded company. The following table sets forth information regarding individuals who are expected to serve as ADI's executive officers, including their positions, following the completion of the distribution until the earlier of their resignation or removal, and is followed by a biography of each such individual. Additional officers of the Company will be identified prior to completion of the distribution, and the names and biographies of such additional persons will be provided in subsequent amendments to this information statement. While some of these executive officers may be current employees of Resideo, following the distribution, none of these individuals will be employees of Resideo. The information set forth below is as of , 2026.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Robert Aarnes | 56 | President and Chief Executive Officer |
| Michael Carlet | 58 | Executive Vice President, Chief Financial Officer |
| Jeannine Lane | 65 | Executive Vice President, General Counsel, Corporate Secretary and Chief Compliance Officer |
| Alicia Copeland | 45 | Executive Vice President, Chief Operating Officer |
| Marco Cardazzi | 47 | Executive Vice President, Chief Merchandising Officer |
| James Olender | 47 | Executive Vice President, Chief Information Officer |

---

***Robert Aarnes*** – Prior to the separation of ADI from Resideo, Mr. Aarnes has served as President of the ADI Global Distribution segment of Resideo since 2018. Prior to joining Resideo, Mr. Aarnes served as president of Honeywell's ADI Global Distribution business since January 2017. Mr. Aarnes served as vice president and general manager of Honeywell's ADI North America business from November 2014 to January 2017. Mr. Aarnes served as vice president of operations of Honeywell's ADI North America business from January 2013 to November 2014. Prior to joining Honeywell, Mr. Aarnes served as president and chief executive officer of GUNNAR Optiks, LLC, a company that specializes in developing and manufacturing digital eyewear, from September 2008 to November 2012. Since 2024, Mr. Aarnes serves on the board of directors of MSC Industrial Direct Co., Inc. (NYSE: MSM). Mr. Aarnes received his bachelor's degree in political science from the United States Naval Academy and his MBA in management from San Diego State University.

We believe Mr. Aarnes is qualified to serve on our Board due to his deep experience and daily insight into our business.

***Michael Carlet*** – Prior to the separation of ADI from Resideo, Mr. Carlet has served as the Chief Financial Officer of Resideo since 2024. Prior to joining Resideo, Mr. Carlet served as the Chief Financial Officer of Snap One Holdings Corp. from 2014 to 2024. Prior to joining Snap One Holdings Corp., Mr. Carlet served as Chief Operating Officer and Chief Financial Officer of the automotive division of Sears Holdings from 2013 to 2014. Prior to Sears, Mr. Carlet spent over 15 years with Driven Brands, Inc., the parent company of Meineke Car Care Centers, Inc., Maaco Franchising, Inc. and other automotive franchise brands, where he served as Chief Financial Officer from 2002 to 2013 and as Controller from 1997 to 2000. He began his career in public accounting with Ernst & Young Global Ltd. Mr. Carlet received his BA in Accounting from the Catholic University of America, and his MBA from Wake Forest University School of Business.

***Jeannine Lane*** – Prior to the separation of ADI from Resideo, Ms. Lane has served as the Executive Vice President, General Counsel and Corporate Secretary of Resideo since 2018. Prior to joining Resideo, Ms. Lane was the Vice President and General Counsel of Honeywell Homes since January 2018. She was the Vice President and General Counsel of Honeywell Security and Fire from 2015 to 2017, Honeywell Fire Business and Honeywell Safety Business from 2014 to 2015, Honeywell Life Safety Business from 2013 to 2014 and Honeywell Security from 2004 to 2013. Prior to Honeywell, Ms. Lane served as the Vice President and General Counsel of Prestone Products Corporation, an automotive consumer car care company. Ms. Lane serves on the board of directors of Janus International Group, Inc. (NYSE: JBI). Ms. Lane holds a bachelor's degree in English and Political Science from SUNY University at Albany and a Doctorate of Law from Albany Law School.

***Alicia Copeland*** – Prior to the separation of ADI from Resideo, Ms. Copeland has served as the Senior Vice President, Chief Operating Officer of ADI Global, a division of Resideo ("ADI Global"), since March 2026. Ms. Copeland joined ADI Global in 2016 as Vice President of Americas Operations before becoming Vice President of Global Operations, Chief Transformation Officer and Chief Commercial Officer. She serves on the Institute Board of the National Association of Wholesaler-Distributors. Ms. Copeland holds a master's degree in Industrial Distribution from Texas A&M University and a BS in Organizational Leadership from Pennsylvania State University.

***Marco Cardazzi*** – Prior to the separation of ADI from Resideo, Mr. Cardazzi has served as the Senior Vice President, Chief Merchandising Officer of ADI Global since March 2026. Prior to that, he held multiple leadership roles since he joined ADI Global in 2011, including Chief Marketing Officer from 2024 to 2026, Vice President, Global Marketing from 2017 to 2024, Vice President, North America Marketing from 2015 to 2017 and Senior Product Manager from 2011 to 2015. Prior to ADI Global, he held various product, marketing and operations roles at Global Industrial Company and MSC Industrial Direct Co., Inc. He also served on the Security Industry Association Executive Advisory Board from 2023 to 2026. Mr. Cardazzi holds a BBA in Finance from Baruch College, City University of New York.

 ****

***James Olender*** – Prior to the separation of ADI from Resideo, Mr. Olender has served as Senior Vice President, Chief Information Officer of ADI Global since May 2026. Prior to joining ADI Global, Mr. Olender served as Chief Information Officer for GE Vernova Inc.'s Wind segment from 2022 to 2025, where he was responsible for global digital strategy and IT operations for the business. Mr. Olender served as Chief Information Officer of Product Management, Commercial, and Engineering at General Electric ("GE") Power from 2015 to 2022, where he led digital transformation initiatives and enterprise system integrations across the power generation portfolio. Throughout his tenure at GE and GE Vernova Inc., spanning more than 20 years, Mr. Olender held various leadership positions focused on industrial AI, cybersecurity, and large-scale business separations. Mr. Olender holds a BS in Business Administration from the University at Buffalo.

**Directors**

The following table sets forth information with respect to those persons who are expected to serve on the Board following the completion of the distribution, and is followed by biographies of each such individual. The Resideo Board will continue to evaluate the composition of the Board in order to reflect an appropriate mix of skills, experience and attributes and additional individuals may be added to the Board in the future. The information set forth below is as of , 2026.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Title** |
| Michael Kaufmann | 63 | Director, Chairman of the Board |
| Robert Aarnes | 56 | Director, President and Chief Executive Officer |
| William Galvin | 63 | Director |
| Christine Gorjanc | 69 | Director |
| Cynthia Hostetler | 63 | Director |
| Stephen O. LeClair | 57 | Director |
| Nathan Sleeper | 52 | Director |
| Brian Walker | 48 | Director |

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***Michael Kaufmann*** – Mr. Kaufmann previously served as Chief Executive Officer of Cardinal Health, Inc. ("Cardinal Health"), a globally integrated healthcare services and products company providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices and patients in the home, from 2018 to 2022. Prior to that, he served as Chief Financial Officer of Cardinal Health from 2014 to 2017 and as Chief Executive Officer of the Pharmaceutical Segment from 2009 to 2014. From 2008 to 2009, Mr. Kaufmann was Group President for the medical distribution businesses of Cardinal Health, and he served in other executive positions with Cardinal Health from 1990 through 2008. Prior to joining Cardinal Health, he worked for almost six years in public accounting with Arthur Andersen LLP. Since leaving Cardinal Health, Mr. Kaufmann has been actively involved as a member of the advisory boards of HealthQuest Capital, a private asset firm that provides capital to transformative healthcare companies, and Celonis SE, a global data process intelligence platform, where he was appointed Chairman of North America in 2024, and as a board member of five different healthcare start-up companies. In addition, Mr. Kaufmann has served on the board of directors of MSC Industrial Direct Co., Inc. (NYSE: MSM) since 2015. Mr. Kaufmann holds a BSBA in Accounting and Management from Ohio Northern University.

We believe Mr. Kaufmann is qualified to serve on our Board due to his broad operational experience and his knowledge and expertise in the industrial distribution sector relevant to our business.

***William Galvin*** – Mr. Galvin has over 35 years of experience as a senior executive and leader in the industrial distribution and supply chain services sector. Mr. Galvin was most recently President and CEO of Anixter International, a global distributor of network and security, electrical and electronic and utility power solutions, which from 1975 to 2020 was a publicly traded company. He joined Anixter in 1984 as part of the sales and marketing team. Mr. Galvin held several senior management positions before becoming CEO in 2018. Mr. Galvin led the organization through significant transformations, focusing on network innovation, sustainability and geographic expansion. He currently sits on the boards of Integrated Power Services and Engineered & Industrial Solutions and serves as a Trustee and Governance Chair for Cristo Rey St. Martin College Prep School. Mr. Galvin holds a BS in Business Administration from Manhattan College. Mr. Galvin is an operating advisor of CD&R.

We believe Mr. Galvin is qualified to serve on our Board due to his experience and expertise in the industrial distribution sector relevant to our business.

***Christine Gorjanc*** – Ms. Gorjanc currently serves on the boards of directors of Polestar Automotive (NASDAQ: PSNY), an electric performance car brand, and Forward Air Corporation (NASDAQ: FRWD), a leading asset-light provider of transportation services including related logistic services, both of which she joined in 2024 and she serves as the chair of both audit committees. From 2019 to 2025, she also served as a member of the board of directors of Juniper Networks, a leader in secure AI driven networks, where she served on the audit committee and as lead director. Ms. Gorjanc also served on the board of directors of Invitae, Inc., a genetic testing and services company, from 2015 to 2024, where she served as chair of the audit committee as well as a member of the compensation committee. Ms. Gorjanc briefly served as the Interim Chief Financial Officer of Invitae, Inc. from July until August 2023. Following her time as Interim Chief Financial Officer, Invitae, Inc. entered into Chapter 11 of the Bankruptcy Code in February 2024. From 2021 to 2022, Ms. Gorjanc also served on the board of directors of Zymergen, Inc., a biotechnology company, and from 2023 until 2024, on the board of directors of Shapeway Holdings, Inc., a publicly-traded digital manufacturing platform. Ms. Gorjanc served as the Chief Financial Officer of Arlo Technologies, Inc., an intelligent cloud infrastructure and mobile app platform company, from 2018 to 2020. She previously served as the Chief Financial Officer of NETGEAR, Inc., a provider of networking products and services from 2008 to 2018, where she also served as Chief Accounting Officer from 2006 to 2008 and Vice President, Finance from 2005 to 2006. Ms. Gorjanc received her BA in Accounting from the University of Texas at El Paso and her MS in Taxation from Golden Gate University.

 ****

We believe Ms. Gorjanc is qualified to serve on our Board due to her extensive experience in senior leadership roles and her financial expertise.

***Cynthia Hostetler*** – Prior to the separation of ADI from Resideo, Ms. Hostetler has served as a director on the Resideo Board since 2020 and has been chair of the Nominating and Governance Committee and a member of the Finance Committee. Ms. Hostetler has 26 years of leadership experience managing large investment funds (with significant global markets investments), guiding institutional investors and allocating capital resources for businesses. An experienced board member, she currently serves on several mutual fund boards, including as trustee of Invesco Funds, director of TriLinc Global Impact Fund and board member of Investment Company Institute. She has also served on the board of Vulcan Materials Company (NYSE: VMC) since 2014. From 2020 to 2024, she served on the board of Textainer Group Holdings Limited. Ms. Hostetler received her bachelor's degree from Southern Methodist University and her JD from the University of Virginia School of Law.

We believe Ms. Hostetler is qualified to serve on our Board due to her board expertise in governance, finance, investment management and corporate responsibility.

**Stephen O. LeClair** – Mr. LeClair previously served as the Executive Chair and Chair of the Board of Core & Main, Inc., a leading specialty distributor with a focus on water, wastewater, storm drainage and fire protection products, and related services. Mr. LeClair served as the Chair of the Board of Core & Main beginning in 2024 and then as the Executive Chair of Core & Main from 2025 until April 1, 2026. Prior to that, Mr. LeClair served as Core & Main's Chief Executive Officer from August 2017 to March 2025. He also served as president of HD Supply Waterworks and as president of HD Supply Lumber and Building Materials until its divestiture to ProBuild Holdings in 2008. Mr. LeClair joined HD Supply in 2005 as senior director of operations and served as HD Supply's Chief Operating Officer from 2008 to 2011 and as its President from 2011 to 2017. Prior to that, he was senior vice president of GE Equipment Services. He held progressively responsible roles at GE Appliances and Power Generation in distribution, manufacturing and sales. Mr. LeClair has served on the boards of directors of Dycom Industries Inc. (NYSE: DY) since 2025 and AAON, Inc. (NASDAQ: AAON) since 2017. Mr. LeClair holds a bachelor's degree in Mechanical Engineering from Union College and an MBA from the University of Louisville.

We believe Mr. LeClair is qualified to serve on our Board due to his deep experience in the industrial distribution sector and his knowledge and expertise of the day-to-day business and operations of a company like ours.

***Nathan Sleeper*** – Prior to the separation of ADI from Resideo, Mr. Sleeper has served as a director on the Resideo Board since 2024. Mr. Sleeper has been with Clayton, Dubilier & Rice, LLC since 2000. He serves as CD&R's Chief Executive Officer, chairs CD&R's executive committee and is a member of its investment, operating review, and compliance committees. He also leads the firm's industrials investment vertical and is responsible for firm operations. Prior to CD&R, he worked in the investment banking division of Goldman Sachs. Since February 2026, Mr. Sleeper has served on the board of Columbus McKinnon Corporation (NASDAQ: CMCO). Previously, Mr. Sleeper served on the boards of public companies, including Beacon Roofing Supply Inc. (formerly NASDAQ: BECN) from 2015 to 2016 and 2018 to 2023, Core & Main, Inc. (NYSE: CNM) from 2021 to 2024 and Atkore International Group Inc. (NYSE: ATKR) from 2016 to 2018, as well as on numerous privately held company boards. Mr. Sleeper received his bachelor's degree from Williams College and his MBA from Harvard Business School.

We believe Mr. Sleeper is qualified to serve on our Board due to his broad experience in the financial and investment communities and his insight into the industrials markets that are relevant to our business.

 ****

***Brian Walker*** – Mr. Walker is the Senior Vice President, Sales and Onsite Services of W.W. Grainger, Inc. ("Grainger"), a large broad line distributor with operations primarily in North America and Japan. Since he joined Grainger in 2006 as Purchasing Manager, Mr. Walker has held many roles of increasing responsibility. Most recently, he served as Chief Product Officer, preceded by Vice President, Digital Architecture and Operations and President of Gamut.com. While headquartered in London, England, he served as Vice President of Strategy and Marketing for Grainger's Online Business with operations in Canada, Germany, Japan, South Korea, the United Kingdom and the United States. Prior to joining Grainger, Mr. Walker led teams in warehousing, logistics, supply chain and sales operations at McMaster-Carr Supply Company. Currently, Mr. Walker serves on the Board of Trustees of the Illinois Institute of Technology and is a member of Wesleyan University's President's Council. Mr. Walker holds a bachelor's degree in economics from Wesleyan University, a master's degree in applied statistics from DePaul University and an MBA from the University of Chicago's Booth School of Business.

We believe Mr. Walker is qualified to serve on our Board due to his deep experience in the distribution sector and the effective implementation and leveraging of digital platforms therein.

**Our Board Following the Spin-Off and Corporate Governance Guidelines**

***Majority Voting Standard***

Upon completion of the distribution, our bylaws are expected to provide for a majority voting standard for election of directors in uncontested elections, where each director will be elected by the affirmative vote of a majority of the votes cast. The Board is expected to adopt a director resignation policy, under which no incumbent director nominee shall qualify for service as a director unless he or she agrees to submit upon renomination to the Board an irrevocable resignation effective upon such director nominee's failure to receive a majority of the votes cast in an uncontested election. The Nominating and Governance Committee (excluding the nominee, if applicable) will make a recommendation to the Board as to whether to accept or reject the resignation, or whether other action should be taken. The Board, excluding the nominee, will act on the resignation and publicly disclose its decision in accordance with the bylaws. An election of directors is considered to be contested if there are more nominees for election than positions on the Board to be filled by election at the meeting of stockholders. In a contested election, the required vote would be a plurality of votes cast.

***Director Independence***

The Board has determined that Messrs. Kaufmann, Galvin, LeClair, Sleeper and Walker and Mses. Gorjanc and Hostetler are independent directors under the applicable rules of the NYSE.

The Board will assess on a regular basis, and at least annually, the independence of directors and, based on the recommendation of the Nominating and Governance Committee, will make a determination as to which members are independent.

***Classified Board***

Our certificate of incorporation will provide that, until the annual stockholder meeting in 2032, our Board will be divided into three classes, with each class consisting, as nearly as may be possible, of one-third of the total number of directors:

● our Class I directors will be Michael Kaufmann, Robert Aarnes and Christine Gorjanc;

● our Class II directors will be William Galvin, Cynthia Hostetler and Brian Walker; and

● our Class III directors will be Stephen O. LeClair and Nathan Sleeper.

The directors designated as Class I directors will have terms expiring at the first annual meeting of stockholders following the distribution in 2027. At the 2027 annual meeting of stockholders, the successors of the Class I directors shall be elected for a term expiring at the 2030 annual meeting of stockholders and the successors thereof shall be elected for a term expiring at the 2032 annual meeting of stockholders. The directors designated as Class II directors will have terms expiring at the 2028 annual meeting of stockholders. At the 2028 annual meeting of stockholders, the successors of the Class II directors shall be elected for a term expiring at the 2031 annual meeting and the successors thereof shall be elected for a term expiring at the 2032 annual meeting of stockholders. The directors designated as Class III directors will have terms expiring at the 2029 annual meeting of stockholders. At the 2029 annual meeting of stockholders, the successors of the Class III directors shall be elected for a term expiring at the 2032 annual meeting of stockholders. Beginning at the 2032 annual meeting, all of our directors will stand for election each year for annual terms, and our Board will therefore no longer be divided into three classes. Before our Board is declassified, it would take at least two elections of directors for any individual or group to gain control of our Board. Accordingly, while the classified board is in effect, these provisions could discourage a third party from initiating a proxy contest, making a tender offer or otherwise attempting to control us.

***Committees of the Board of Directors***

Effective immediately prior to the commencement of "when issued" trading of shares of common stock on the NYSE, the Board will have a standing Audit Committee, and effective upon the completion of the separation, the Board will have a standing Compensation Committee and a standing Nominating and Governance Committee.

 

*Audit Committee*. The initial members of the Audit Committee will be Ms. Gorjanc and Messrs. LeClair and Walker, and Ms. Gorjanc will serve as the Chair of the Audit Committee. The Board has determined that Ms. Gorjanc is an "audit committee financial expert" for purposes of the rules of the SEC. In addition, the Board has determined that Ms. Gorjanc and Messrs. LeClair and Walker are independent, as defined by the rules of the NYSE and Section 10A(m)(3) of the Exchange Act. Rule 10A-3 of the Exchange Act and the NYSE rules require that our Audit Committee have at least one independent member upon the listing of our common stock, have a majority of independent members within 90 days of the date of this information statement and be composed entirely of independent members within one year of the date of this information statement. The Audit Committee typically meets in executive session, without the presence of management, at each regularly scheduled meeting, and reports to the Board on its actions and recommendations at each regularly scheduled Board meeting. The Audit Committee will meet at least quarterly and will assist the Board in:

● appointing and recommending to the stockholders for approval the firm to be engaged as the Company's independent auditor and will be directly responsible for the compensation, retention and oversight of the independent auditor, including the resolution of disagreements between management and the independent auditor regarding financial reporting;

● reviewing the results of each external audit and other matters related to the conduct of the audit and advising the Board on whether it recommends that the combined financial statements be included in the annual report on Form 10-K;

● reviewing with management and the independent auditors, prior to filing, the interim financial results to be included in quarterly reports on Form 10-Q;

● reviewing and discussing with the independent auditors any identified critical audit matters;

● evaluating the independent auditor's performance at least annually;

● approving all non-audit engagements with the independent auditor;

● reviewing reports of the independent auditor and the chief internal auditor related to the adequacy of the Company's internal accounting controls, disclosure processes and its procedures designed to ensure compliance with laws and regulations;

● considering and reviewing, in consultation with the independent auditor and the chief internal auditor, the scope and plan for forthcoming external and internal audits;

● reviewing annually the performance of the internal audit group;

● reviewing annually the effectiveness of the integrity and compliance program;

● reviewing management's assessment of the effectiveness of the Company's internal control over financial reporting;

● reviewing, approving and establishing procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls, auditing matters and for the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters or other legal, ethical, reputational or regulatory concerns;

● producing the annual Report of the Audit Committee included in the annual proxy statement; and

● overseeing major financial risks and enterprise exposures and risk assessment and risk management policies, including risks related to cybersecurity, data privacy, primary IT systems of record, artificial intelligence and material litigation instituted against the Company.

 

*Compensation Committee*. The initial members of the Compensation Committee will be Messrs. LeClair and Galvin and Ms. Hostetler, and Mr. LeClair will serve as the Chair of the Compensation Committee. The Board has determined that Messrs. LeClair and Galvin and Ms. Hostetler are independent, as defined by the rules of the NYSE and Section 10C(a) of the Exchange Act. In addition, we expect that Messrs. LeClair and Galvin and Ms. Hostetler will qualify as "non-employee directors" for purposes of Rule 16b-3 under the Exchange Act. The Compensation Committee will discharge the Board's responsibilities relating to the compensation of our executive officers, including setting goals and objectives for, evaluating the performance of, and approving the compensation paid to, our executive officers. The Compensation Committee is also responsible for:

● reviewing and approving the corporate goals and objectives relevant to the compensation of the CEO, evaluating the CEO's performance relative to these goals and objectives and determining and approving the CEO's compensation level;

● reviewing and approving the annual salary and other remuneration of the executive officers;

● periodically reviewing the operation and structure of the Company's compensation programs;

● reviewing proposals for, and determining total share usage under, the Company's equity compensation programs;

● overseeing the Company's plans, policies and programs related to hiring, development and retention of talent;

● reviewing or taking such action in connection with the bonus, stock, retirement and other benefit plans of the Company and its subsidiaries;

● establishing and reviewing annual stock ownership guidelines applicable to directors and senior management;

● advising the Board with respect to proposed changes in Board or committee compensation;

● reviewing and discussing with management the Compensation Discussion and Analysis and other executive compensation disclosure included in the annual proxy statement;

● assisting the Board in oversight of the Company's policies and strategies relating to culture and human capital management;

● producing the annual Compensation Committee report included in the annual proxy statement; and

● exercising sole authority to retain and terminate a compensation consultant, as well as approving the consultant's fees and other terms of engagement.

*Nominating and Governance Committee*. The initial members of the Nominating and Governance Committee will be Ms. Hostetler and Messrs. Kaufmann and Sleeper, and Ms. Hostetler will serve as the Chair of the Nominating and Governance Committee. The Board has determined that Ms. Hostetler and Messrs. Kaufmann and Sleeper are independent, as defined by the rules of the NYSE. The Nominating and Governance Committee is responsible for:

● actively seeking individuals qualified to become Board members and recommending them to the full Board for consideration, including evaluating all potential candidates, including those suggested or nominated by third parties;

● considering director candidates holistically to ensure a diversity of perspectives, taking into consideration factors such as skills, experience, gender, ethnicity, race, nationality and age;

● making recommendations to the Board on the disclosures in the annual proxy statement on director independence, governance and director nomination matters;

● overseeing the Company's new director orientation program and continuing education program for incumbent directors;

● reviewing and reassessing the adequacy of the Company's Corporate Governance Guidelines;

● overseeing and reporting to the Board on the Company's compliance with its programs relating to the Code of Business Conduct;

● overseeing and reporting to the Board regarding the Company's insider trading policies and procedures;

● overseeing and reporting to the Board on the Company's role as a responsible corporate citizen; and

● overseeing the annual performance review of the Board and its Committees.

The Board is expected to adopt a written charter for each of the Audit Committee, the Compensation Committee and the Nominating and Governance Committee. These charters will be posted on our website in connection with the separation.

**Compensation Committee Interlocks and Insider Participation**

During our fiscal year ended December 31, 2025, we were not a separate or independent company and did not have a Compensation Committee or any other committee serving a similar function. Decisions as to the compensation for that fiscal year of those who will serve as our executive officers were made by Resideo, as described in the sections of this information statement captioned "Executive Compensation" and "Director Compensation."

**Corporate Governance**

***Stockholder Recommendations for Director Nominees***

Our bylaws will contain provisions that address the process by which a stockholder may nominate an individual to stand for election to the Board. We expect that the Board will adopt a policy concerning the evaluation of stockholder recommendations of Board candidates by the Nominating and Governance Committee.

***Corporate Governance Guidelines***

The Board is expected to adopt a set of Corporate Governance Guidelines in connection with the separation to assist it in guiding our governance practices. These practices will be regularly reevaluated by the Nominating and Governance Committee in light of changing circumstances and best practices to ensure the Guidelines continue to serve our best interests and the best interests of our stockholders. These guidelines will cover a number of areas, including the role of the Board of Directors, Board composition, director independence, director selection, qualification and election, director compensation, executive sessions, key Board responsibilities, CEO evaluation, succession planning, risk management, Board leadership and operations, conflicts of interest, annual Board assessments, Board committees, director orientation and continuing education, Board agenda, materials, information and presentations, director access to management and independent advisers and Board communication with stockholders and others. A copy of our corporate governance guidelines will be posted on our website.

***Director Qualification Standards***

Our Corporate Governance Guidelines will provide that the Nominating and Governance Committee is responsible for reviewing with the Board the appropriate skills and characteristics required of board members in the context of the makeup of the Board and developing criteria for identifying and evaluating board candidates. We believe that it is important that our directors possess and demonstrate:

● personal and professional integrity and character;

● prominence and reputation in his or her profession;

● skills, knowledge and expertise (including business or other relevant experience) that in aggregate are useful and appropriate in overseeing and providing strategic direction with respect to our business and serving the long-term interests of our stockholders;

● the capacity and desire to represent the interests of the stockholders as a whole; and

● ability to devote sufficient time to overseeing the affairs of ADI.

The Nominating and Governance Committee will be responsible for recommending to the Board a slate of nominees for election at each annual meeting of stockholders. Nominees may be suggested by directors, members of management, stockholders or, in some cases, by a third-party search firm. The Nominating and Governance Committee will consider a wide range of factors when assessing potential director nominees. This includes consideration of the current composition of the Board, any perceived need for one or more particular areas of expertise, the balance of management and independent directors, the need for committee- specific expertise, the evaluations of other prospective nominees and the qualifications of each potential nominee relative to the attributes, skills and experience described above. The Board does not expect to have a formal or informal policy with respect to diversity but believes that the Board, taken as a whole, should embody a diverse set of skills, knowledge, experiences and backgrounds appropriate in light of our needs, and in this regard expects to subjectively take into consideration the diversity (with respect to race, gender and national origin) of the Board when considering director nominees. The Board does not expect to make any particular weighting of diversity or any other characteristic in evaluating nominees and directors.

A stockholder who wishes to recommend a prospective nominee for the Board should notify the Nominating and Governance Committee in writing using the procedures described in this section under "—Corporate Governance—Stockholder Recommendations for Director Nominees" with whatever supporting material the stockholder considers appropriate. If a prospective nominee has been identified other than in connection with a director search process initiated by the Nominating and Governance Committee, the Nominating and Governance Committee will make an initial determination as to whether to conduct a full evaluation of the candidate. The Nominating and Governance Committee's determination of whether to conduct a full evaluation will be based primarily on the Nominating and Governance Committee's view as to whether a new or additional Board member is necessary or appropriate at such time, the likelihood that the prospective nominee can satisfy the evaluation factors described above and any other factors as the Nominating and Governance Committee may deem appropriate. The Nominating and Governance Committee will take into account whatever information is provided to the Nominating and Governance Committee with the recommendation of the prospective candidate and any additional inquiries the Nominating and Governance Committee may in its discretion conduct or have conducted with respect to such prospective nominee.

***Board's Role in Risk Oversight***

Our management will have day-to-day responsibility for assessing and managing our risk exposure and the Board and its committees will oversee those efforts, with particular emphasis on the most significant risks facing us. Each committee will report to the full Board on a regular basis, including as appropriate with respect to the committee's risk oversight activities.

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| | |
|:---|:---|
| **BOARD/COMMITTEE** | **PRIMARY AREAS OF RISK OVERSIGHT** |
| Full Board | Risks associated with our strategic plan, acquisition and capital allocation program, capital structure, liquidity, organizational structure and other significant risks and overall risk assessment and risk management policies. |
| Audit Committee | Risks related to financial controls, legal and compliance risks and major financial, privacy, security and business continuity risks, cybersecurity, artificial intelligence risk management and risk controls. |
| Compensation Committee | Risks associated with compensation policies and practices and human capital management. |
| Nominating and Governance Committee | Risks related to corporate governance and board management, succession planning for the CEO and other executive officers and sustainability. |

---

***Code of Business Conduct***

In connection with the separation, we will adopt a Code of Business Conduct that requires all of our business activities to be conducted in compliance with applicable laws and regulations and ethical principles and values. All of our directors, officers and employees will be required to read, understand and abide by the requirements of the Code of Business Conduct.

These documents will be accessible on our website. Any waiver of the Code of Business Conduct for directors or executive officers may be made only by the Board or a committee of the Board. We will disclose any amendment to, or waiver from, a provision of the Code of Business Conduct for the principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions, on our website within four business days following the date of the amendment or waiver. In addition, we will disclose any waiver from the Code of Business Conduct for our other executive officers and our directors on our website. Our website, and the information contained therein, or connected thereto, is not incorporated by reference into this information statement.

 ****

***Procedures for Treatment of Complaints Regarding Accounting, Internal Accounting Controls and Auditing Matters***

In accordance with the Sarbanes-Oxley Act, we expect that our Audit Committee will adopt procedures for the receipt, retention and treatment of complaints regarding accounting, internal accounting controls and auditing matters and to allow for the confidential, anonymous submission by employees and others of concerns regarding questionable accounting or auditing matters.

 ****

***Website Disclosure***

We intend to disclose any amendment to the Code of Business Conduct that relates to any element of the code of ethics definition enumerated in Item 406(b) of Regulation S-K, and any waiver from a provision of the Code of Business Conduct granted to any of our directors, principal executive officer, principal financial officer, principal accounting officer or controller or any other executive officer, in the "Investors—Corporate Governance" section of our corporate website, *www.adiglobal.com*, within four business days following the date of such amendment or waiver.

**EXECUTIVE COMPENSATION**

**Compensation Discussion and Analysis**

**Introduction**

ADI is currently a subsidiary of Resideo and not an independent public company. At the time of the Spin-Off, ADI will have executive compensation programs, policies and practices for its executive officers that are similar in many respects to those of Resideo. After the Spin-Off, the executive compensation programs, policies and practices for our executive officers will be subject to the review and approval of a compensation committee ("Compensation Committee") of the Board, which will be formed in connection with the Spin-Off. We expect that the executive compensation programs, policies and practices for our executive officers will align incentives more closely with ADI's performance, strategic initiatives, industry peers, and the long-term interests of our stockholders, which is expected to help us attract, retain, and motivate highly qualified personnel.

For purposes of this Compensation Discussion and Analysis (this "CD&A") and the disclosure that follows, the following individuals would have constituted the named executive officers of ADI had it been an independent public company during 2025 and, subject to approval of the Resideo Board and our Board, are expected to serve in the capacity set forth next to such individual's name following the Spin-Off:

● Robert Aarnes, President and Chief Executive Officer;

● Michael Carlet, Executive Vice President, Chief Financial Officer;

● Jeannine Lane, Executive Vice President, General Counsel, Corporate Secretary and Chief Compliance Officer;

● Alicia Copeland, Executive Vice President, Chief Operating Officer; and

● Marco Cardazzi, Executive Vice President, Chief Merchandising Officer.

We refer to each of Messrs. Aarnes, Carlet and Cardazzi and Mses. Lane and Copeland as "named executive officers" or "NEOs" for purposes of this CD&A and the disclosure that follows. This CD&A discusses Resideo's historical compensation programs, policies and practices as applied to Messrs. Aarnes, Carlet and Cardazzi and Mses. Lane and Copeland, which were made by the Compensation and Human Capital Management Committee (the "Resideo CHCMC") of the Resideo Board or the Resideo management team, as applicable, and outlines certain aspects of ADI's anticipated post-Spin-Off compensation structure for such NEOs. Neither of Ms. Copeland nor Mr. Cardazzi were executive officers or "named executive officers" of Resideo during 2025.

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| | |
|:---|:---|
| **NAMED EXECUTIVE OFFICER** | **POSITION(S)** |
| Robert Aarnes | President and Chief Executive Officer |
| Michael Carlet | Executive Vice President, Chief Financial Officer |
| Jeannine Lane | Executive Vice President, General Counsel, Corporate Secretary and Chief Compliance Officer |
| Alicia Copeland | Executive Vice President, Chief Operating Officer |
| Marco Cardazzi | Executive Vice President, Chief Merchandising Officer |

---

**Executive Compensation Philosophy and Approach**

***Resideo Practice***

Resideo strives to create a compensation program that rewards for performance and engages its participants by requiring them to focus on driving the business to generate long-term value for its shareholders, thereby building a performance-driven leadership culture. Utilizing this philosophy, Resideo's executive compensation program has been designed to:

● Provide competitive pay levels using its peer group data for market context;

● Create sustained increases in shareholder value through incentives designed to drive high performance;

● Drive revenue growth and margin expansion and accelerate innovation;

● Reward achievement of near- and long-term business performance targets;

● Make pay decisions based on an executive's skills and responsibilities, individual performance, experience, importance to the organization, retention, affordability and internal pay equity; and

● Deliver compensation in accordance with good governance practices that do not encourage undue risk-taking. Resideo's executive compensation program for 2025 utilized net revenue and operating income margin as components of its annual incentive plan. At least half of its long-term incentive award is linked to a combination of relative total shareholder return and return on invested capital, which reinforces Resideo's belief that the interests of its executive team must be intricately linked to shareholder value.

***Going Forward***

We anticipate that our executive compensation objectives and approach will initially be similar to Resideo's. Following the Spin-Off, our Compensation Committee will review these objectives and approach to ensure they meet our business needs and strategic objectives.

**Commitment to Compensation Best Practices**

***Resideo Practice***

In carrying out its responsibilities, the Resideo CHCMC is committed to regularly reviewing and considering best practices in governance in executive compensation and maintains the following policies and practices that guide Resideo's ongoing, annual executive compensation program:

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| | | | |
|:---|:---|:---|:---|
| **WHAT RESIDEO DOES** | **WHAT RESIDEO DOES** | **WHAT RESIDEO DOES NOT DO** | **WHAT RESIDEO DOES NOT DO** |
| ![](ea028883201_ex99-1img5.jpg) | Maintains robust stock ownership guidelines requiring its officers and directors to hold a significant ownership position in Resideo | ![](ea028883201_ex99-1img6.jpg) | Allow hedging or pledging of its securities by its directors and employees, including its NEOs |
| ![](ea028883201_ex99-1img5.jpg) | Provides compensation packages heavily weighted toward equity compensation to align incentives with shareholder interests | ![](ea028883201_ex99-1img6.jpg) | Backdate or spring-load equity awards |
| ![](ea028883201_ex99-1img5.jpg) | Ties incentive compensation programs to the metrics that are expected to drive shareholder value | ![](ea028883201_ex99-1img6.jpg) | Reprice stock options or stock appreciation rights without shareholder approval |
| ![](ea028883201_ex99-1img5.jpg) | Uses multiple performance metrics for its annual incentive plan with goals directly linked to its annual operating plan that drives its growth plan | ![](ea028883201_ex99-1img6.jpg) | Offer any compensation programs or policies that reward excessive risk-taking |
| ![](ea028883201_ex99-1img5.jpg) | Ensures a significant portion of its NEOs' compensation is variable and based on company performance | ![](ea028883201_ex99-1img6.jpg) | Provide multi-year guaranteed payments to executive officers |
| ![](ea028883201_ex99-1img5.jpg) | Grants PSUs that require above-median TSR (55th percentile) to earn the target level of shares | ![](ea028883201_ex99-1img6.jpg) | Offer tax reimbursement payments or gross-ups on any severance or change in control payments |
| ![](ea028883201_ex99-1img5.jpg) | Retains an independent compensation consultant, selected by the Resideo CHCMC, to advise on competitive compensation practices | ![](ea028883201_ex99-1img6.jpg) | Provide any significant perquisites |
| ![](ea028883201_ex99-1img5.jpg) | Requires a double-trigger for any severance benefits to its NEOs provided in connection with a change in control | ![](ea028883201_ex99-1img6.jpg) | Enter into or amend an agreement with an executive officer that provides cash severance benefits exceeding 2.99x base plus bonus without advisory shareholder ratification |
| ![](ea028883201_ex99-1img5.jpg) | Requires its NEOs, where permitted by law, to sign non-competition and intellectual property agreements |  |  |
| ![](ea028883201_ex99-1img5.jpg) | Sets the annual goals for its CEO with consultation and regular performance evaluations by its independent directors |  |  |
| ![](ea028883201_ex99-1img5.jpg) | Maintains a compensation recoupment ("clawback") policy triggered by an accounting restatement of its financial statements, which is applicable to all of its Section 16 officers, including the NEOs |  |  |
| ![](ea028883201_ex99-1img5.jpg) | Evaluates and manages risk in its compensation programs |  |  |

---

 ****

***Going Forward***

We anticipate that our approach to compensation best practices will generally follow the same policies and practices of Resideo described above. Following the Spin-Off, our Compensation Committee will review all aspects of its process and may make adjustments that it believes are appropriate.

**Peer Group and Market Data**

***Resideo Practice***

With the assistance of its independent compensation consultant, FW Cook, the Resideo CHCMC selected the companies below to include in its peer group based on similar size revenue and market capitalization as well as alignment with Resideo's current profile, targeting industrial and distribution companies and internet and technology companies and focusing on the connected home. The peer companies generally had reported annual revenues within a range of one-fourth and two times Resideo's annual revenues and market capitalization within a range of one-fourth and four times Resideo's market capitalization at the time of analysis. This peer group was determined without regard to the Spin-Off. This peer group was used to support Resideo CHCMC's 2025 compensation decisions.

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| | | | |
|:---|:---|:---|:---|
| **RESIDEO PEER GROUP** | **RESIDEO PEER GROUP** | **RESIDEO PEER GROUP** | **RESIDEO PEER GROUP** |
| ● | A.O. Smith Corp. (AOS) | ● | Lennox International Inc. (LII) |
| ● | Acuity Brands, Inc. (AYI) | ● | Masco (MAS) |
| ● | ADT Inc. (ADT) | ● | NCR Corporation (VYX) |
| ● | Allegion plc (ALLE) | ● | Owens Corning (OC) |
| ● | CommScope Holding Company, Inc. (COMM) | ● | Pentair plc (PNR) |
| ● | Fortune Brands Home & Sec. (FBIN) | ● | Regal Rexnord Corporation (RRX) |
| ● | Generac Holdings, Inc. (GNRC) | ● | UFP Industries (UFPI) |
| ● | Jeld-Wen Holdings, Inc. (JELD) | ● | Watsco, Inc. (WSO) |
| ● | Juniper Networks, Inc. (JNPR) |  |  |

---

In addition, the Resideo CHCMC selected the two alternative peer group sets below in anticipation of the Spin-Off, with the assistance of FW Cook. These companies were selected based on the criteria described above, as applied to both, (1) the remaining business of Resideo as it is expected to exist and operate following the Spin-Off, and (2) ADI Global Distribution on a standalone basis.

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| | | | |
|:---|:---|:---|:---|
| **RESIDEO PEER GROUP (POST SPIN-OFF)** | **RESIDEO PEER GROUP (POST SPIN-OFF)** | **RESIDEO PEER GROUP (POST SPIN-OFF)** | **RESIDEO PEER GROUP (POST SPIN-OFF)** |
| ● | A.O. Smith Corp. (AOS) | ● | Gibraltar Industries, Inc. (ROCK) |
| ● | AAON, Inc. (AAON) | ● | Griffon Corporation (GFF) |
| ● | Acuity Brands, Inc. (AYI) | ● | Itron, Inc. (ITRI) |
| ● | Alarm.com Holdings Inc. (ALRM) | ● | NCR Voyix Corporation (VYX) |
| ● | Allegion plc (ALLE) | ● | Pentair plc (PNR) |
| ● | Atkore Inc. (ATKR) | ● | Regal Rexnord Corporation (RRX) |
| ● | Fortune Brands Innovations, Inc. (FBIN) | ● | Sunrun Inc. (RUN) |
| ● | Generac Holdings Inc. (GNRC) | ● | UFP Industries, Inc. (UFPI) |
|  |  | ● | Vistance Networks, Inc. (VISN) |

---

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| | | | |
|:---|:---|:---|:---|
| **ADI GLOBAL DISTRIBUTION PEER GROUP (POST SPIN-OFF)** | **ADI GLOBAL DISTRIBUTION PEER GROUP (POST SPIN-OFF)** | **ADI GLOBAL DISTRIBUTION PEER GROUP (POST SPIN-OFF)** | **ADI GLOBAL DISTRIBUTION PEER GROUP (POST SPIN-OFF)** |
| ● | Accendra Health, Inc. (ACH) | ● | Henry Schein, Inc. (HSIC) |
| ● | Adapthealth Corp. (AHCO) | ● | LKQ Corporation (LKQ) |
| ● | Applied Industrial Technologies, Inc. (AIT) | ● | MSC Industrial Direct Co., Inc. (MSM) |
| ● | BlueLinx Holdings Inc. (BXC) | ● | ScanSource, Inc. (SCSC) |
| ● | Boise Cascade Company (BCC) | ● | SiteOne Landscape Supply, Inc. (SITE) |
| ● | DNOW Inc. (DNOW) | ● | The Andersons, Inc. (ANDE) |
| ● | DXP Enterprise, Inc. (DXPE) | ● | The Chefs' Warehouse, Inc. (CHEF) |
|  |  | ● | Watsco, Inc. (WSO) |

---

While the Resideo CHCMC considers peer group information provided by its independent consultant as part of its benchmarking analysis, it also refers to other available resources, including published compensation data from surveys, to fully understand competitive compensation practices in the external marketplace for executive talent.

The Resideo CHCMC reviews the peer group benchmark data as one reference point to guide its compensation decisions, although actual compensation levels may vary based on the Resideo CHCMC's consideration of other factors described below.

***Going Forward***

The ADI Global Distribution peer group established by the Resideo CHCMC with the assistance of FW Cook, as described above, will help inform our initial decision-making with respect to the Company's executive compensation program and ensure that such program supports the Company's recruitment and retention needs and is fair and efficient. The Resideo CHCMC selected companies for inclusion in this peer group based on (1) the extent to which they compete with the Company for executive talent because they operate in the same industry (or in a similar industry), (2) comparability of revenues and market capitalization, and (3) other qualitative factors such as business fit and complexity.

Following the Spin-Off, our Compensation Committee will review the peer group on a periodic basis and determine whether any changes are appropriate based on its view of the competitive environment in which we operate.

**Elements of Compensation**

***Resideo Practice***

The following table provides an overview of Resideo's executive compensation program as applied to its NEOs, including Messrs. Aarnes and Carlet and Ms. Lane.

● Financial metrics for 2025 were Net Revenue and Operating Income as a percentage of Net Revenue ("Operating Income Margin"), each on a constant currency basis

● Restricted stock units ("RSUs") representing 50% of the total LTI value for NEOs other than the CEO, who announced his intended retirement from Resideo, vesting annually over three years in equal, one-third installments; and

● Performance stock units ("PSUs") representing 50% of the total LTI value for NEOs other than the CEO, with potential payout determined based 50% on Resideo's total shareholder return measured against the total shareholder return of the companies in the S&P 600 Index ("rTSR") and 50% based on return on invested capital ("ROIC") during a 3-year performance period. Resideo's CEO did not receive an LTI award in 2025 due to his intended retirement from Resideo

***Going Forward***

We anticipate that our executive compensation program upon the Spin-Off will generally include the same elements as Resideo's executive compensation programs. Following the Spin-Off, our Compensation Committee will review the primary elements of our executive compensation program, and mix thereof, to ensure 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**

<u>2025 Base Salary</u>

***Resideo Practice***

Base salaries provide a competitive level of fixed compensation for Resideo's NEOs, which are aligned with their roles and account for additional factors such as their level of experience and individual performance. The Resideo CHCMC considers competitive fixed cash compensation to be an important foundation of a competitive total compensation program that will both retain and motivate its executives. At least annually, the Resideo CHCMC reviews the competitiveness of base salaries relative to external benchmarks and considers changes, as appropriate, taking into consideration market data as well as other relevant factors, including key elements of the compensation philosophy described above. For 2025, base salaries for Resideo's NEOs were generally increased to reflect market-based increases of 4%, which generally align with increases provided to other employees in the United States. The fiscal 2025 annual base salaries for Messrs. Aarnes, Carlet and Cardazzi and Mses. Lane and Copeland, including any change from the prior year, are reflected below:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Title** | **2024 Base<br> Salary** | **2025 Base<br> Salary** | **Percent<br> Increase** |
| Robert Aarnes | President and Chief Executive Officer | $643700 | $670000 | 4.1% |
| Michael Carlet | Executive Vice President, Chief Financial Officer | $575000 | $600000 | 4.3% |
| Jeannine Lane | Executive Vice President, General Counsel, Corporate Secretary and Chief Compliance Officer | $567600 | $591000 | 4.1% |
| Alicia Copeland | Executive Vice President, Chief Operating Officer | $395000 | $442000<sup>(1)</sup> | 11.9% |
| Marco Cardazzi | Executive Vice President, Chief Merchandising Officer | $335000 | $347730 | 3.8% |

---

(1) Ms. Copeland was promoted
to SVP, Chief Operating Officer - ADI effective September 12, 2025. Prior to her promotion, the base salary payable to Ms. Copeland
was $414,750.

***Going Forward***

Following the Spin-Off, we anticipate that our Compensation Committee will establish base salary levels for our executive officers taking into account a review of benchmarking data for similar roles, individual performance, and competitive positioning.

<u>2025 Annual Incentive Plan</u>

***Resideo Practice***

The fiscal 2025 annual incentive plan provided Resideo's NEOs and Ms. Copeland and Mr. Cardazzi the opportunity to earn a cash bonus with a target amount equal to a specified percentage of the executive's base salary. Under the 2025 annual incentive plan, Resideo's NEOs and Ms. Copeland and Mr. Cardazzi were eligible to receive a payout ranging from a threshold payment of 25% to a maximum of 200% of the target award allocated to the achievement of each financial metric. No bonus is paid if performance under both metrics is below threshold. If one metric is below threshold and the other is above threshold, the maximum payout is 90% of target.

In determining the financial metrics used to set performance targets for the 2025 annual incentive compensation awards, the Resideo CHCMC considered, among other factors, the importance of a clear and direct link between its financial results and awards under its annual incentive plan. To that end, for 2025, the Resideo CHCMC selected financial metrics, consisting of Net Revenue and Operating Income Margin, each on a constant currency basis. At the time the performance metrics and goals were set for 2025, the Resideo CHCMC also determined that certain items not contemplated at that time would be excluded from the results determined after the end of the year, including the results of businesses acquired and divested during 2025, unanticipated legal settlements, restructuring and similar unusual events.

The relative weighting of each financial metric and a definition of the metric under Resideo's 2025 annual incentive plan is set forth below:

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| | | |
|:---|:---|:---|
| **Financial Metric** | **Weighting** | **Definition\*** |
| Net Revenue | 50% | The aggregate transaction price recognized from satisfied performance obligations for the products and services provided to Resideo's customers net of discounts, rebates, other customer incentive programs, and gross customer returns. For purposes of this financial metric, net revenue is determined on a constant currency basis to remove the impact of foreign currency fluctuations. |
| Operating Income Margin | 50% | Represents the ratio of operating income to net revenue. |

---

\* The financial metrics are reported on a constant currency basis.

In setting the 2025 financial targets, the Resideo CHCMC was focused on Resideo's commitment to aligning executive compensation with its financial performance and strategic goals, and incentivizing behaviors aligned with shareholder interests. To this end, the target Goal for Net Revenue for consolidated Resideo and for ADI was set above the actual Net Revenue amount achieved last year. In addition, the target Goal for Operating Income Margin for P&S was set above the actual Operating Income Margin achieved last year for P&S. The target Goal for Net Revenue for P&S was slightly lower compared to the actual amounts achieved last year due primarily to foreign currency exchange impacts. In addition, the target Goal for Operating Income Margin for consolidated Resideo was set below the actual amount achieved last year due to anticipated strategic investments and because a higher percentage of consolidated Operating Income was expected from ADI relative to P&S (which has a lower target Operating Income Margin than P&S) due to the inclusion of a full year of the Snap One business as part of ADI. The target goal for Operating Income Margin for ADI was set below the actual amounts achieved last year due to anticipated cash to be used for strategic investments.

In certifying the level of performance achieved for 2025, the Resideo CHCMC ratified those adjustments previously approved by the Resideo CHCMC when the metrics were set, including impacts of foreign exchange rates, amounts related to restructuring, impairment and extinguishment costs, unanticipated legal settlements, and other adjustments that were not contemplated at the time the goals were originally determined. These adjustments resulted in a $90 million decrease, $46 million decrease, and $44 million decrease in Net Revenue for consolidated Resideo, ADI, and P&S respectively. Operating Income Margin increased by 50 bps, 10 bps, and 50 bps for consolidated Resideo, ADI, and P&S, respectively.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Financial Performance\*** | | **For the Period January 1, 2025 – December 31, 2025** | **For the Period January 1, 2025 – December 31, 2025** | **For the Period January 1, 2025 – December 31, 2025** | **For the Period January 1, 2025 – December 31, 2025** | **For the Period January 1, 2025 – December 31, 2025** | |
| **Total Resideo<br> Financial Metrics<br> (Weight)** |<br>**Threshold<br> ($M)** | **Goal<br> ($M)<sup>(1)</sup>** | **Maximum<br> ($M)** | **Actual<br> ($M)** | **Financial Performance<br> % of Goal** | **Financial Performance Payout %** |<br>**Weighted<br> Payout %** |
| Net Revenue (50%) | $6652 | $7391 | $8130 | $7382 | 99.9% | 99.9% | 50% |
| Operating Income Margin (50%) | 7.3% | 8.6% | 9.9% | 8.6% | 100.5% | 104.0% | 52% |
| &nbsp;&nbsp;&nbsp;Total Resideo |  |  |  |  |  |  | 101.5% |

---

\* Actual results are reported at constant currency.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Financial Performance\*** | | **For the Period January 1, 2025 – December 31, 2025** | **For the Period January 1, 2025 – December 31, 2025** | **For the Period January 1, 2025 – December 31, 2025** | **For the Period January 1, 2025 – December 31, 2025** | **For the Period January 1, 2025 – December 31, 2025** | |
| **ADI Global Distribution Financial Metrics (Weight)** |<br>**Threshold<br> ($M)** | **Goal<br> ($M)<sup>(1)</sup>** | **Maximum<br> ($M)** | **Actual<br> ($M)** | **Financial Performance<br> % of Goal** | **Financial Performance Payout %** |<br>**Weighted<br> Payout %** |
| Net Revenue (50%) | $4343 | $4825 | $5308 | $4738 | 98.2% | 91.0% | 45% |
| Operating Income Margin (50%) | 4.4% | 5.2% | 6.0% | 4.5% | 86.0% | 53.2% | 27% |
| &nbsp;&nbsp;&nbsp;ADI Total |  |  |  |  |  |  | 72.1% |
| &nbsp;&nbsp;&nbsp;Total Resideo |  |  |  |  |  |  | 101.5% |
| &nbsp;&nbsp;&nbsp;Weighted Total <br>(50% ADI Total/50% Resideo Total) |  |  |  |  |  |  | 86.8% |

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\* Actual results are reported at constant currency.

\*\* For Ms. Copeland and Mr. Cardazzi, the financial metrics were weighted 60% on the results of the ADI segment and 40% on Resideo's consolidated results, which resulted in a weighted payout percentage of 83.8%.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Financial Performance\*** | | **For the Period January 1, 2025 – December 31, 2025** | **For the Period January 1, 2025 – December 31, 2025** | **For the Period January 1, 2025 – December 31, 2025** | **For the Period January 1, 2025 – December 31, 2025** | **For the Period January 1, 2025 – December 31, 2025** | |
| **Products & Solutions (P&S)Financial Metrics (Weight)** |<br>**Threshold<br> ($M)** | **Goal<br> ($M)<sup>(1)</sup>** | **Maximum<br> ($M)** | **Actual<br> ($M)** | **Financial Performance<br> % of Goal** | **Financial Performance Payout %** |<br>**Weighted<br> Payout %** |
| Net Revenue (50%) | $2309 | $2566 | $2823 | $2644 | 103.1% | 130.6% | 65% |
| Operating Income Margin (50%) | 17.3% | 20.3% | 23.3% | 21.1% | 104.0% | 126.7% | 63% |
| &nbsp;&nbsp;&nbsp;Products and Solutions Total |  |  |  |  |  |  | 128.6% |
| &nbsp;&nbsp;&nbsp;Total Resideo |  |  |  |  |  |  | 101.5% |
| &nbsp;&nbsp;&nbsp;Weighted Total (50% Products and Solutions Total/50% Resideo Total) |  |  |  |  |  |  | 115.0% |

---

\* Actual results are reported at constant currency.

The financial metrics for Mr. Carlet and Ms. Lane were based on Resideo's consolidated results. The financial metrics for Mr. Aarnes' annual incentive award were weighted 50% on the results of the ADI segment, and 50% on Resideo's consolidated results. The financial metrics for Mr. Cardazzi and Ms. Copeland were weighted 60% on the results of the ADI segment, and 40% on Resideo's consolidated results. The Bonus Target percentage for each of Messrs. Aarnes, Carlet and Cardazzi and Ms. Lane remained the same as in 2024. For Ms. Copeland, the Bonus Target percentage was increased from 60% to 70% in September 2025 in connection with Ms. Copeland's promotion.

To determine the actual 2025 annual incentive cash awards paid to each of Resideo's NEOs and to Ms. Copeland and Mr. Cardazzi pursuant to Resideo's 2025 annual incentive plan, the following formula was applied (the base salary amount used in the formula was the NEO's 2025 base salary rate):

![](ea028883201_ex99-1img7.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **NEO** | **2025 Base Salary** | **Bonus Target <br> %** | **Financial <br> Performance <br> Payout <br> Percentage** | **Annual <br> Incentive Cash <br> Award<sup>(1)</sup>** |
| Robert Aarnes | $670000 | 100.00% | 86.80% | $581560 |
| Michael Carlet | $600000 | 100.00% | 101.50% | $609000 |
| Jeannine Lane | $591000 | 80.00% | 101.50% | $479892 |
| Alicia Copeland<sup>(2)</sup> | $442000 | 62.96% | 83.80% | $235892 |
| Marco Cardazzi | $347730 | 50.00% | 83.80% | $152984 |

---

(1) The
 amounts actually paid to Ms. Copeland and Mr. Cardazzi in respect of an Annual Incentive Cash Award represent an additional
 discretionary adjustment of 108% and 105%, respectively.

(2) Ms. Copeland
 was promoted to SVP, Chief Operating Officer - ADI effective September 12, 2025. Prior to her promotion, the base salary payable
 to Ms. Copeland was $414,750. In connection with her promotion, Ms. Copeland's annual incentive target was increased
 from 60% to 70%.

***Going Forward***

 ****

Following the Spin-Off, we anticipate that our Compensation Committee will develop an annual incentive plan focused on near-term operational and financial goals that support our unique business objectives, while also allowing for meaningful pay differentiation tied to the performance of individuals and groups.

<u>2025 Long-Term Incentives</u>

***Resideo Practice***

 ****

The goal of Resideo's LTI plan is to align the compensation of its executives with the interests of shareholders by granting annual equity awards to encourage strong operational and financial performance that results in long-term shareholder value creation. LTI compensation also serves as a retention instrument and provides equity-building opportunities for executives. These equity awards are granted under the Amended and Restated 2018 Stock Incentive Plan of Resideo Technologies, Inc. and its Affiliates (the "Resideo 2018 Stock Incentive Plan"). In determining the target award value for each executive, the Resideo CHCMC considers competitive LTI award information among our peer group companies provided by the independent compensation consultant, taking into consideration the total value of all elements of compensation. Further, the Resideo CHCMC recognizes the importance of LTI awards in providing a compensation package that will motivate and retain executives.

The tables below show the mix of annual LTI components for 2025:

---

| | |
|:---|:---|
|  | **NEOs (Other Than CEO)\* <br>(% of Total LTI)** |
| Performance Stock Units (PSUs) | 50% |
| Restricted Stock Units (RSUs) | 50% |

---

\* Resideo's CEO did not receive an LTI award in 2025 due to his intended retirement from Resideo.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **2025 LTI Award <br> Target Value** | **2025 PSU Target Value<sup>(1)</sup>** | **2025 RSU Target Value** |
| Robert Aarnes | $2200000 | $1100000 | $1100000 |
| Michael Carlet | $2000000 | $1000000 | $1000000 |
| Jeannine Lane | $1500000 | $750000 | $750000 |
| Alicia Copeland | $350000 | $– | $350000 |
| Marco Cardazzi | $252000 | $– | $252000 |

---

(1) Ms. Copeland and Mr. Cardazzi,
who were not named executive officers of Resideo for the year ended December 31, 2025, were not eligible to receive an award of
PSUs in 2025.

The number of shares awarded to an executive for each component of the award is determined by dividing the target value by the average of the closing stock price of a share of Resideo's common stock on the three market trading days leading up to and including the grant date, rounded down to the nearest cent.

2025 RSUs

The annual RSUs awarded in 2025 will vest ratably over a three-year period, with one-third of the shares vesting on each anniversary of the grant date, subject to the recipient being employed through each vesting date, but continue to vest after retirement.

2025 PSUs

For 2025, the Resideo CHCMC approved the redesign of Resideo's PSU program to include a component based on the three-year average ROIC and retain the three-year rTSR component, each weighted equally and independent of one another. The performance period for the PSUs granted in 2025 is for the three-year period ending on December 31, 2027 (the "2025 PSUs") and the maximum payout of the 2025 PSUs is 200% of the target award. This change in design was primarily driven by Resideo's shareholder engagement conversations, which emphasized the importance to shareholders of linking executive compensation to our financial results, while also remaining aligned with shareholders' interests by maintaining a performance metric based on Resideo's stock price through rTSR. The rTSR component for the 2025 PSUs may be earned by comparing Resideo's total shareholder return ("TSR") to the TSR of other companies in the S&P 600 Index from the grant date of February 13, 2025 through December 31, 2027. The threshold, target and maximum levels of rTSR achievement that correspond to the number of shares that may be earned are set forth below. Performance below the threshold level will result in no shares being paid for the rTSR component of the 2025 PSUs. In addition, there is a cap on the payout for the rTSR performance measure if Resideo's TSR is negative for the performance period. Under those circumstances, the maximum payout will be capped at 100% of the target award, regardless of Resideo's relative performance against the other companies in the S&P 600 Index.

The new ROIC metric included in the 2025 PSUs will be earned if certain levels of a three-year average ROIC is achieved. There will be no payout for the ROIC portion of the 2025 PSUs if the performance achieved is below the threshold level set for this component. In addition, there is a flat funding schedule around the target level to recognize the inherent difficulty in goal-setting over a three-year period (with a 98%-102% collar around the target goal). ROIC is defined as Net Operating Profit x (1-tax rate) divided by Total Debt + Other Long-Term Liabilities (excluding any liabilities under the Indemnification Agreement + shareholder equity – excess cash).

---

| | |
|:---|:---|
|  | **Payout as percent of <br>Target shares\*** |
| Threshold 25th | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50% |
| Target 55th | 100% |
| Maximum 75th | 200% |

---

\* Linear interpolations between points

The Resideo CHCMC established threshold, target and maximum goals for the ROIC performance measure for the 2025 PSUs. The specific ROIC performance goals for the three-year award period are maintained by Resideo as proprietary and confidential. The Resideo CHCMC believes that disclosure of these specific performance goals would represent competitive harm to Resideo as the ROIC goals and results are not publicly disclosed and are competitively sensitive. The Resideo CHCMC believes the attainment of the target performance levels, while uncertain, could be reasonably achieved with strong execution by the Resideo team of the long-term financial plan. Threshold goals represent the minimum level of performance necessary for there to be a payout for the ROIC performance measure and the Resideo CHCMC believes the threshold goals are rigorous, but likely to be achieved. Maximum goals represent the performances at which payouts for the ROIC performance measure are 200% of the target award and reinforces stretch achievements. Even if actual results exceed the maximum goals, the payouts for the ROIC performance measure are capped at 200% of the target award to mitigate any incentive to encourage excessive risk taking across Resideo. Maximum goals represent levels of performance at which the Resideo CHCMC determined a payout of 200% of target would be appropriate. The Resideo CHCMC believes that the maximum goals established are more aggressive goals. Resideo expects to provide disclosure of the actual ROIC goals and performance attained for the 2025 PSUs in the proxy statement for our 2028 Annual Meeting. In addition to approving performance measures, goals and weightings, the Resideo CHCMC also established specific and typical corporate adjustment events and that are consistent with past practice for determining payouts under the 2025 PSUs. The adjustment events include material impacts from acquisitions and divestitures, changes in tax or accounting principles, termination, modification, restructuring or settlement of any agreement with Honeywell entered into at the time Resideo was separated from Honeywell, purchase accounting adjustments, foreign currency exchange rates, restructuring activities, impairment and extinguishment costs, and other adjustments that were not contemplated as part of Resideo's financial plan at the time the goals were originally determined.

The rTSR and ROIC performance metrics in the 2025 PSUs are measured and paid out independently of each other. As such, if the threshold level of the rTSR is not achieved, but is achieved for ROIC, or vice versa, an amount of the 2025 PSUs would be earned.

2023 PSUs

December 31, 2025 marked the end of the three-year performance period for PSUs granted in February 2023. Those PSUs vested based on the ranking of Resideo's total shareholder return ("TSR") over the three-year period from January 1, 2023 through December 31, 2025 as compared to the TSR of the companies in the S&P 600 Index over the same period. The total shares that could have been earned by an executive under these awards range from 50% of the target award for achievement of the minimum level of performance to a maximum of 200% of the target award. Based on Resideo achieving a TSR rank of 78 out of the 527 companies in the S&P 600 Index, which represents a 85.36 percentile ranking, the 2023 PSU awards achieved a payout of 200% of the target award.

*Special Awards to Mr. Aarnes*

The Resideo CHCMC approved a special grant of $5 million in RSUs for Mr. Aarnes in February 2024 for retention. Unlike the standard annual RSU awards, the special RSU awards vest 50% on each of the third and fourth anniversaries of the grant date and do not provide for continued vesting in the event of retirement. The Resideo CHCMC considered a variety of factors when making the decision to provide the special grant, including the outstanding leadership of Mr. Aarnes in driving performance for ADI. For Mr. Aarnes, the acquisition of Snap One, which expanded Resideo's smart technology portfolio and broadened its distribution capabilities across the residential and commercial markets, expanded his responsibilities significantly. In addition, the Resideo CHCMC felt that Mr. Aarnes' leadership was critical to the successful integration of the business. The total value of Mr. Aarnes outstanding equity in absolute and relative terms was also considered in the Resideo CHCMC's decision to make this special award.

 ****

***Going Forward***

Following the Spin-Off, our long-term incentive award program will initially be similar to Resideo's program, and we will have adopted the 2026 Stock Incentive Plan of ADI Global Distribution Inc. and its Affiliates (the "2026 Equity Plan"), effective as of the effective time of the Distribution. Further, unvested awards under the Resideo 2018 Stock Incentive Plan held by Messrs. Aarnes, Carlet and Cardazzi and Mses. Lane and Copeland (as well as other employees of Resideo transferring to ADI in connection with the Spin-Off) will be converted into comparable awards of equivalent value under the 2026 Equity Plan. For additional information regarding the conversion of such awards, see "—Treatment of Outstanding Equity Awards Resulting from the Distribution" below. Our Compensation Committee will review our program with the goal of ensuring it is effective in attracting, retaining and motivating skilled executives and aligning the interests of management and shareholders.

**Other Components of Compensation**

 ****

<u>Severance Plans</u>

***Resideo Practice***

<u>Officer Severance Plan</u>

Certain of Resideo's NEOs, including Messrs. Aarnes and Carlet and Ms. Lane, participate in the Resideo Technologies, Inc. Severance Plan for Designated Officers (the "Resideo Officer Severance Plan"). The Resideo Officer Severance Plan addresses severance for Resideo's officers upon a termination of employment following a change in control ("CIC"), considered a "double trigger," and is intended to ensure the continued attention of such officers to their roles and responsibilities without the distraction that may arise from the possibility of a job loss concurrent with a CIC of Resideo. In addition, the Resideo Officer Severance Plan provides for severance payments and benefits that become payable if the employment of one of Resideo's covered officers is terminated by Resideo without "cause" (as defined in the Resideo Officer Severance Plan), subject to such individual signing and not revoking a release of claims. The Resideo CHCMC adopted the Resideo Officer Severance Plan to provide competitive post-employment compensation arrangements that promote the continued attention, dedication and continuity of the members of Resideo's senior management team, including its NEOs, and enable Resideo to continue to recruit talented senior executive officers.

The Spin-Off will not constitute a CIC under the Resideo Officer Severance Plan. However, the Resideo CHCMC adopted an amendment to the Resideo Officer Severance Plan (the "Officer Divestiture Amendment"), pursuant to which covered officers would be entitled to certain "double trigger" severance protection in the event of their experiencing a qualifying termination following a "divestiture" (as defined in the Officer Divestiture Amendment and which would include the Spin-Off). Specifically, the Officer Divestiture Amendment provides that, in the event of an executive's termination by Resideo without "cause" or resignation for "good reason" (as each such term is defined in the Resideo Officer Severance Plan) within 18 months following a divestiture that is consummated prior to December 31, 2027, then the executive would be entitled to receive the same level of enhanced severance benefits that would be available if the transaction were a CIC, as well as full accelerated vesting of any then-unvested awards under the Resideo 2018 Stock Incentive Plan (including any successor award received in substitution or exchange therefor in connection with such divestiture). However, any enhanced severance payable pursuant to the Officer Divestiture Amendment would be payable in the same time and form as if the qualifying termination were not in connection with a transaction (versus the accelerated payment timing that would apply in the event of a qualifying termination that is in connection with a CIC).

<u>Executive Severance Plan</u>

Certain of Resideo's executives who are not officers, including Ms. Copeland and Mr. Cardazzi during 2025, participate in the Severance Pay Plan for Designated Executive Employees of Resideo Technologies, Inc. (the "Resideo Executive Severance Plan"). The Resideo Executive Severance Plan provides for severance payments that become payable if the employment of a covered executive is involuntarily terminated by Resideo without "cause" (as defined in the Resideo Executive Severance Plan), subject to such individual signing and not revoking a release of claims. Under the Resideo Executive Severance Plan, a covered executive is entitled to nine months of base salary payable in periodic installments. The Resideo CHCMC adopted the Resideo Executive Severance Plan to provide competitive post-employment compensation arrangements that promote the continued attention, dedication and continuity of the members of Resideo's management team and enable Resideo to recruit and retain talented executives. Unlike the Resideo Officer Severance Plan, the Resideo Executive Severance Plan does not provide for enhanced severance payments or benefits.

***Going Forward***

The Officer Divestiture Amendment requires that the successor in a divestiture transaction (such as ADI) assume the obligations thereunder. Further, following the Spin-Off, we anticipate that our Compensation Committee will develop severance programs to provide competitive post-employment compensation arrangements that promote the continued attention, dedication and continuity of the members of our senior management team, including our NEOs, and enable us to recruit talented senior executive officers going forward.

For additional information regarding the severance benefits provided to Messrs. Aarnes, Carlet and Cardazzi and Mses. Lane and Copeland, see "—Potential Payments Upon Termination or Change in Control Table" below. Following the Spin-Off, Ms. Copeland and Mr. Cardazzi will participate in ADI's severance plan for officers along with Messrs. Aarnes and Carlet and Ms. Lane but will not be eligible under the Resideo Officer Severance Plan for the enhanced severance payments and benefits provided for thereunder.

<u>Nonqualified Deferred Compensation Plans</u>

***Resideo Practice***

 ****

Resideo's executive officers (including its NEOs) may choose to participate in the Resideo Supplemental Savings Plan, a nonqualified deferred compensation plan that permits additional tax-deferred retirement savings options. The Resideo Supplemental Savings Plan has two components, the Deferred Incentive Program ("DIP") and the Supplemental Savings Program ("SSP"). Executive officers can elect to defer up to 100% of their annual incentive award under the DIP component. In addition, under the SSP component, executive officers may also elect to defer eligible compensation that cannot be contributed to the Resideo's 401(k) plan due to IRS limitations. The amounts contributed to the SSP are eligible for company matching credits, not to exceed 100% of the first 7% contributed combined between the SSP and the Resideo's 401(k) plan. The participant account balances in the SSP are subject to gains and losses, based on the returns of the Fidelity<sup>®</sup> U.S. Bond Index Fund.

***Going Forward***

Following the Spin-Off, we do not anticipate the adoption of any nonqualified deferred compensation plans for our executive officers or other employees in the near term.

<u>Benefits and Perquisites</u>

 ****

***Resideo Practice***

Resideo's NEOs are eligible to receive the same benefits as its salaried employees in the U.S. Resideo, and the Resideo CHCMC believes this approach is reasonable and consistent with the overall compensation objectives to attract and retain employees. These benefits include medical, dental, vision, disability insurance, a 401(k) plan and other plans and programs made available to other eligible employees in the U.S.

Resideo also provides its NEOs with an annual executive physical paid for by Resideo. These physicals provide a more in-depth review of the health of Resideo's executive officers. In addition, Resideo pays the lease expense for a remote office for Mr. Aarnes to provide him with the ability to work out of an office in close proximity to his home in Florida on days when he is not on business travel or working from the Company's headquarters in Melville, New York.

 **

***Going Forward***

 **

We anticipate that our benefits and perquisites upon the Spin-Off will generally include the same benefits and perquisites as provided by Resideo. Following the Spin-Off, our Compensation Committee will review the benefits and perquisites provided by ADI to ensure they remain competitive and meet our business needs and strategic objectives.

**Stock Ownership Guidelines**

***Resideo Practice***

The Resideo CHCMC believes that the interests of Resideo's executives, including its NEOs, will be more aligned with those of shareholders, and its NEOs will more effectively pursue strategies that promote shareholders' long-term interests, if such executives hold substantial amounts of Resideo stock. All of Resideo's executive officers, including its NEOs, are subject to minimum stock ownership guidelines that are administered by the Resideo CHCMC. Under these guidelines, executive officers must hold shares of Resideo common stock or equivalents equal in value to the following multiples of their initial base salary as in effect when the executive becomes subject to the policy (6x base salary, for the CEO, and 3x base salary, for other executive officers). Resideo's executive officers have five years from the date they become subject to the guidelines to meet the ownership requirement. Shares owned outright, unvested RSU awards and earned performance stock awards are counted toward the ownership requirement. Shares may be sold during the accumulation period if satisfactory progress towards meeting the minimum requirement is demonstrated. As of December 31, 2025, all of Resideo's executive officers have met the minimum stock ownership requirement.

 ****

***Going Forward***

 ****

We expect to adopt substantially similar stock ownership guidelines in connection with the Spin-Off.

**Incentive Recoupment ("Clawback") Policy**

***Resideo Practice***

 ****

In 2023, the Resideo CHCMC approved a revised Clawback policy to comply with the new NYSE listing standards. Under the policy, in the event Resideo is required to prepare an accounting restatement, it will take reasonable steps to promptly recover any excess incentive-based compensation paid to its current and former executive officers based on any misstated financial reporting measure that was received during the three-year period preceding the date Resideo is required to prepare the restatement.

***Going Forward***

We expect to adopt a substantially similar clawback policy in connection with the Spin-Off.

**Insider Trading Policy**

***Resideo Practice***

The Resideo Board has adopted an insider trading policy governing the purchase, sale, and other transactions in Resideo's securities by directors, officers and employees of Resideo, and by Resideo itself. Resideo believes its insider trading policy is reasonably designed to promote compliance with insider trading laws, rules and regulations, and applicable NYSE listing standards. Resideo's insider trading policy is filed with the SEC as an exhibit to our Annual Report on Form 10-K.

***Going Forward***

 ****

We expect to adopt a substantially similar insider trading policy (and related procedures) in connection with the Spin-Off.

**Hedging and Pledging Policy**

***Resideo Practice***

It is the policy of Resideo that all of its directors, officers and employees are prohibited from engaging in short sales of Resideo securities and selling or purchasing puts or calls or otherwise trading in or writing options on Resideo securities and using certain financial instruments (including forward sale contracts, equity swaps, collars and exchange funds), holding securities in margin accounts or pledging Resideo securities as collateral, in each case, that are designed to hedge or offset any decrease in the market value of Resideo securities.

***Going Forward***

We expect to adopt a substantially similar hedging and pledging policy (and related procedures) in connection with the Spin-Off.

**Tax Deductibility of Executive Compensation**

***Resideo Practice***

 ****

Section 162(m) of the Internal Revenue Code limits the federal income tax deduction for annual individual compensation to $1 million for Resideo'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. Resideo intends to comply with the transition rule for written binding contracts in effect on November 2, 2017, to the extent applicable. The Resideo CHCMC 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 Resideo CHCMC reserves the ability to structure compensation arrangements to provide appropriate compensation to its executives, even where such compensation is not deductible under Section 162(m).

 ****

 ****

***Going Forward***

We anticipate that, similar to the approach followed by the Resideo CHCMC, following the Spin-Off, our Compensation Committee will review the tax impact of executive compensation on ADI 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).

**Executive Compensation Tables**

***Summary Compensation Table***

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Officer Name** | **Position** | **Year** | **Base**<br> **Salary**<br> **($)<sup>(1)</sup>** | **Bonus**<br> **($)<sup>(2)</sup>** | **Stock**<br> **Awards**<br> **($)<sup>(3)</sup>** | **Non-Equity**<br> **Incentive Plan**<br> **Compensation**<br> **($)<sup>(4)</sup>** | **Changes in**<br> **Pension**<br> **Value and**<br> **Non Qual.**<br> **Deferred**<br> **Comp**<br> **Earnings**<br> **($)<sup>(5)</sup>** | **All Other**<br> **Compensation**<br> **($)<sup>(6)</sup>** | **Total <br>Compensation <br>($)** |
| **Robert Aarnes** | President and Chief Executive Officer | 2025 | 662818 |  | 2377828 | 581560 | 27314 | 71985 | 3721505 |
|  |  | 2024 | 638638 |  | 7914367 | 711289 | 83990 | 32071 | 9380356 |
|  |  | 2023 | 616884 |  | 2829023 | 624900 | 82242 | 26222 | 4179271 |
| **Michael Carlet<sup>(7)</sup>** | EVP, Chief Financial Officer | 2025 | 593173 | 1286250 | 2161668 | 609000 |  | 31410 | 4681501 |
|  |  | 2024 | 482692 |  | 473351 | 382854 |  | 6167 | 1345064 |
| **Jeannine Lane** | EVP, General Counsel, Corporate Secretary and Chief Compliance Officer | 2025 | 584610 |  | 1621244 | 597226 | 20861 | 52591 | 2876532 |
|  |  | 2024 | 563131 |  | 1509087 | 586671 | 261161 | 52545 | 2972595 |
|  |  | 2023 | 546692 |  | 1671680 | 511328 | 318764 | 30546 | 3079010 |
| **Alicia Copeland** | EVP, Chief Operating Officer | 2025 | 416693 | 60000 | 862321 | 235892 |  | 44356 | 1619262 |
| **Marco Cardazzi** | EVP, Chief Merchandising Officer | 2025 | 344254 | 60000 | 248042 | 152984 | 25341 | 26213 | 856834 |

---

(1) Represents actual base salary
paid in 2025, taking into account any increases based on the timing such increases were actually implemented.

(2) The amount for Mr. Carlet represents a transaction bonus
related to the acquisition of Snap One in 2024. The amounts for Mr. Cardazzi and Ms. Copeland represent retention bonuses paid in April
and February 2025, respectively.

(3) Stock awards granted in 2025 consisted of, for Messrs. Aarnes
and Carlet and Ms. Lane, RSU awards and PSU awards and, for Ms. Copeland and Mr. Cardazzi, RSU awards only. The amounts reported in this
column represent the aggregate grant date fair value of the RSU awards for fiscal years 2025, 2024, and 2023 and, for Messrs. Aarnes
and Carlet and Ms. Lane, of the PSU awards for fiscal years 2025, 2024, and 2023, in each case, as applicable. These amounts were calculated
in accordance with the provisions of FASB ASC Topic 718 utilizing the assumptions discussed in Note 8 of the Notes to the Financial
Statements in Resideo's Form 10-K for the year ended December 31, 2025. The fair values of PSU awards differ from the target values
described in the Compensation Discussion & Analysis, which are determined based on the closing stock price on the three market trading
days leading up to and including the grant date for the target number of units awarded. The value of the 2025 PSUs, if maximum performance
is achieved, are as follows:

---

| | |
|:---|:---|
| **Name** | **PSUs <br> Maximum<br> ($)** |
| **Robert Aarnes** | 2590148 |
| **Michael Carlet** | 2354689 |
| **Jeannine Lane** | 1765992 |

---

The fair value of the RSUs is based on the average of the high and low prices for Resideo stock on the grant date. The value of the 2025 rTSR PSUs reflect the grant date fair value of the PSUs when granted based on the Monte Carlo simulation model using the assumptions shown in the table below. The value of the ROIC PSUs (50% of the award) is based on the average of the high and low prices of the target number of shares of Resideo stock on the grant date.

---

| | | | |
|:---|:---|:---|:---|
| **Grant Date** | **Fair Value** | **Volatility** | **Risk Free Rate** |
| February 12, 2025 | $29.75 | 45.18% | 4.28% |

---

(4) The amounts in this column represent the annual incentive payments made to each NEO as described in more detail in "—Compensation Discussion & Analysis —Elements of Compensation" above. The amounts shown were paid shortly after the end of the respective fiscal year.

(5) The amounts in this column represent the aggregate change in the present value of Messrs. Aarnes' and Cardazzi's and Ms. Lane's accumulated benefit under Resideo's pension plans (as disclosed in the Pension Benefits table below).

(6) The amounts reported in this column include costs for remote office lease (Mr. Aarnes), employer contributions under the 401(k) plan, employer contributions to the executive's health savings account, the cost of excess life and liability insurance, and costs for executive physicals (Mr. Aarnes and Mses. Lane and Copeland).

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **401(k) Company <br> Contributions ($)** | **Deferred <br> Compensation <br> Plan Company <br> Contributions<br> ($)** | **Other**<br> **Benefits<br> ($)<sup>(a)(b)</sup>** |
| **Robert Aarnes** | 23500 | – | 48485 |
| **Michael Carlet** | 23500 | – | 7910 |
| **Jeannine Lane** | 23500 | – | 29091 |
| **Alicia Copeland** | 23500 | – | 20856 |
| **Marco Cardazzi** | 23500 | – | 2713 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) Includes
 costs paid by Resideo for medical insurance, basic life and accidental death and dismemberment insurance, excess life and liability
 insurance premiums and, for Mr. Aarnes and Mses. Lane and Copeland, executive physicals.

(b) Included
 in the amount reported for Mr. Aarnes is $38,275 for lease payments for a remote office.

(7) Mr.
 Carlet became CFO of Resideo effective as of August 9, 2024.

**Grants of Plan-Based Awards — Fiscal Year 2025**

The following table summarizes the grants of plan-based awards made to Messrs. Aarnes, Carlet and Cardazzi and Mses. Lane and Copeland during the fiscal year ended December 31, 2025.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Estimated Future Payouts Under <br>Non-Equity Incentive Plan Awards** | **Estimated Future Payouts Under <br>Non-Equity Incentive Plan Awards** | **Estimated Future Payouts Under <br>Non-Equity Incentive Plan Awards** | **Estimated Future Payouts<br> Under Incentive Plan Awards** | **Estimated Future Payouts<br> Under Incentive Plan Awards** | **Estimated Future Payouts<br> Under Incentive Plan Awards** | | |
| <br>**Officer Name** | <br>**Grant Date** | **<br> Threshold**<br> **($)<sup>(1)</sup>** | **<br> Target <br>($)** | **Maximum <br>($)** | **Threshold <br>(#)** | **Target <br>(#)** | **Maximum <br>(#)** | **All Other**<br>**Stock <br>Awards <br>(#)** | **Grant Date <br> Fair Value <br> of Stock** <br>**and Option**<br> **Awards**<br> **($/sh.)<sup>(6)</sup>**  |
| **Robert Aarnes** AIP<sup>(2)</sup> | January 1, 2025 | 167500 | 670000 | 1340000 |  |  |  |  |  |
| RSU<sup>(3)</sup> | February 12, 2025 |  |  |  |  |  |  | 50667 | 1082754 |
| PSU<sup>(4)</sup> | February 12, 2025 |  |  |  | 25334 | 50668 | 101336 |  | 1295074 |
| **Michael Carlet** AIP<sup>(2)</sup> | January 1, 2025 | 150000 | 600000 | 1200000 |  |  |  |  |  |
| RSU<sup>(3)</sup> | February 12, 2025 |  |  |  |  |  |  | 46061 | 984324 |
| PSU<sup>(4)</sup> | February 12, 2025 |  |  |  | 23031 | 46062 | 92124 |  | 1177345 |
| **Jeannine Lane** AIP<sup>(2)</sup> | January 1, 2025 | 118200 | 472800 | 945600 |  |  |  |  |  |
| RSU<sup>(3)</sup> | February 12, 2025 |  |  |  |  |  |  | 34546 | 738248 |
| PSU<sup>(4)</sup> | February 12, 2025 |  |  |  | 17273 | 34546 | 69092 |  | 882996 |
| **Alicia Copeland** AIP<sup>(2)</sup> | January 1, 2025 | 65282 | 261127 | 522254 |  |  |  |  |  |
| RSU<sup>(3)</sup> | February 12, 2025 |  |  |  |  |  |  | 16121 | 344506 |
| RSU<sup>(5)</sup> | July 31, 2025 |  |  |  |  |  |  | 18500 | 517815 |
| **Marco Cardazzi** AIP<sup>(2)</sup> | January 1, 2025 | 43466 | 173865 | 347730 |  |  |  |  |  |
| RSU<sup>(3)</sup> | February 12, 2025 |  |  |  |  |  |  | 11607 | 248042 |

---

(1) Represents the payment received for the minimum level of performance required to earn a payout under the plan for 2025.

(2) Annual incentive plan ("AIP") compensation awarded under the Resideo Bonus Plan for the 2025 performance year, which is paid in early 2026.

(3) Annual RSUs granted under the Resideo 2018 Stock Incentive Plan, which will vest ratably on the first, second and third anniversaries of the grant date. See the Outstanding Equity Awards at 2025 Fiscal Year-End table below for further details on the equity awards listed above. The fair value of the RSUs reflected in the final column was $21.37, the average of the high and low prices for Resideo stock on the date of grant.

(4) Fifty percent (50%) of the PSUs granted under the Resideo 2018 Stock Incentive Plan, which are subject to Resideo's rTSR ranking against the companies in the S&P 600 Index for the period from February 13, 2025 through December 31, 2027, will pay out in February 2028 if earned. See "—Compensation Discussion and Analysis—2025 Executive Compensation Decisions—2025 Long-Term Incentives—2025 PSUs" above for additional information. The amounts in the Target column for the rTSR PSUs represent the number of shares earned at a ranking of the 55th percentile as compared to the companies in the S&P 600 Index. The amounts in the column labeled Threshold represent the total number of shares that would be earned if both Resideo were to achieve a ranking of the 25th percentile and attainment of 85% of the ROIC goal over the performance period. The amounts in the column labeled Maximum represent the total number of shares that would be earned if Resideo were to achieve a ranking of the 75th percentile or above for the rTSR awards, or, for the ROIC PSUs, which represent fifty percent (50%) of the award, the achievement of 115% of the ROIC goal over the performance period. The fair value reflected in the final column is calculated in accordance with the provisions of FASB ASC Topic 718 as shown in footnote 2 to the Summary Compensation Table above. For the 2025 ROIC PSU awards, the fair value was $21.37, the average of the high and low prices of a share on the date of grant.

(5) This special RSU award was granted under the Resideo 2018 Stock Incentive Plan for retention, and will vest ratably on the first, second and third anniversaries of the grant date. See the Outstanding Equity Awards at 2025 Fiscal Year-End table below for further details on the equity award listed above. The fair value of the RSUs reflected in the final column was $27.99, the average of the high and low prices of a share on the date of grant.

(6) The fair value of the RSUs reflected in the final column is based on the average of the high and low prices for Resideo stock on the grant date.

**Outstanding Equity Awards at 2025 Fiscal Year End**

The following table summarizes information regarding outstanding equity awards held by Messrs. Aarnes, Carlet and Cardazzi and Mses. Lane and Copeland as of the fiscal year ended December 31, 2025.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** | **Stock Awards** |
| <br>**Officer Name** | <br>**Grant Date** | <br>**Notes** | **Number of<br> Securities <br> Underlying Unexercised Options (#) Exercisable** | **Number of Securities Underlying Unexercised Options (#) Unexercisable** | **Option Price <br> ($)** | **Unexercised Option Expiration<br> Date** | **Number of Shares or Units<br> of Stock That <br> Have Not Vested<br> (#)** | **Market Value\* of Shares or Units That Have Not Vested<br> ($)** | **Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)** | **Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights** |
| **Robert Aarnes** | &nbsp;&nbsp;2/20/2020 | (1) | 107989 |  | 10.27 | 2/19/2027 | **-** | **-** | **-** | **-** |
|  | &nbsp;&nbsp;&nbsp;2/14/2023 | (2) | **-** |  | **-** | **-** | 19267 | 676657 | **-** | **-** |
|  | &nbsp;&nbsp;2/5/2024 | (3) | **-** |  | **-** | **-** | **-** | **-** | 129334 | 4542210 |
|  | &nbsp;&nbsp;2/5/2024 | (4) | **-** |  | **-** | **-** | 43111 | 1514058 | **-** | **-** |
|  | &nbsp;&nbsp;2/15/2024 | (5) | **-** |  | **-** | **-** | 248632 | 8731956 | **-** | **-** |
|  | &nbsp;&nbsp;2/12/2025 | (6) | **-** |  | **-** | **-** | **-** | **-** | 50668 | 1779460 |
|  | &nbsp;&nbsp;2/12/2025 | (7) | **-** |  | **-** | **-** | **-** | **-** | 25334 | 889730 |
|  | &nbsp;&nbsp;2/12/2025 | (8) | **-** |  | **-** | **-** | 50667 | 1779425 | - | - |
|  | &nbsp;&nbsp;**Total** |  | **107989** |  | - | - | **361677** | **12702096** | **205336** | **7211400** |
| **Michael Carlet** | &nbsp;&nbsp;6/14/2024 | (9) | **-** |  | **-** | **-** | 12019 | 422107 | **-** | **-** |
|  | &nbsp;&nbsp;6/14/2024 | (10) | **-** |  | **-** | **-** | 23111 | 811658 | **-** | **-** |
|  | &nbsp;&nbsp;6/14/2024 | (9) | **-** |  | **-** | **-** | 917 | 32205 | **-** | **-** |
|  | &nbsp;&nbsp;6/14/2024 | (11) | **-** |  | **-** | **-** | 11267 | 395697 | **-** | **-** |
|  | &nbsp;&nbsp;6/14/2024 | (12) | **-** |  | **-** | **-** | 19499 | 684805 | **-** | **-** |
|  | &nbsp;&nbsp;8/9/2024 | (13) | **-** |  | **-** | **-** | **-** | **-** | 21140 | 742437 |
|  | &nbsp;&nbsp;8/9/2024 | (14) | **-** |  | **-** | **-** | 7046 | 247456 | **-** | **-** |
|  | &nbsp;&nbsp;2/12/2025 | (6) | **-** |  | **-** | **-** | **-** | **-** | 46062 | 1617697 |
|  | &nbsp;&nbsp;2/12/2025 | (7) | **-** |  | **-** | **-** | **-** | **-** | 23031 | 808849 |
|  | &nbsp;&nbsp;2/12/2025 | (8) | **-** |  | **-** | **-** | 46061 | 1617662 | **-** | **-** |
|  | &nbsp;&nbsp;**Total** |  | - |  | - | - | **119920** | **4211590** | **90233** | **3168983** |
| **Jeannine Lane** | &nbsp;&nbsp;&nbsp;2/14/2023 | (2) | **-** |  | **-** | **-** | 11385 | 399841 | **-** | **-** |
|  | &nbsp;&nbsp;&nbsp;2/5/2024 | (3) | **-** |  | **-** | **-** | **-** | **-** | 76424 | 2684011 |
|  | &nbsp;&nbsp;&nbsp;2/5/2024 | (4) | **-** |  | **-** | **-** | 25474 | 894647 | **-** | **-** |
|  | &nbsp;&nbsp;&nbsp;2/12/2025 | (6) | **-** |  | **-** | **-** | **-** | **-** | 34546 | 1213256 |
|  | &nbsp;&nbsp;&nbsp;2/12/2025 | (7) | **-** |  | **-** | **-** | **-** | **-** | 17273 | 606628 |
|  | &nbsp;&nbsp;&nbsp;2/12/2025 | (8) | **-** |  | **-** | **-** | 34546 | 1213256 | **-** | **-** |
|  | &nbsp;&nbsp;**Total** |  | - |  | - | - | **71405** | **2507744** | **128243** | **4503895** |
| **Alicia Copeland** | &nbsp;&nbsp;&nbsp;2/14/2023 | (2) | **-** |  | **-** | **-** | 2942 | 103323 | **-** | **-** |
|  | &nbsp;&nbsp;&nbsp;2/5/2024 | (4) | **-** |  | **-** | **-** | 9719 | 341331 | **-** | **-** |
|  | &nbsp;&nbsp;&nbsp;2/12/2025 | (8) | **-** |  | **-** | **-** | 16121 | 566170 | **-** | **-** |
|  | &nbsp;&nbsp;&nbsp;7/31/2025 | (15) | **-** |  | **-** | **-** | 18500 | 649720 | **-** | **-** |
|  | &nbsp;&nbsp;**Total** |  | - |  | - | - | **47282** | **1660544** | - | - |
| **Marco Cardazzi** | &nbsp;&nbsp;&nbsp;2/14/2023 | (2) | **-** |  | **-** | **-** | 2732 | 95948 | **-** | **-** |
|  | &nbsp;&nbsp;&nbsp;8/1/2024 | (16) | **-** |  | **-** | **-** | 4966 | 174406 | **-** | **-** |
|  | &nbsp;&nbsp;&nbsp;2/5/2024 | (4) | **-** |  | **-** | **-** | 9288 | 326195 | **-** | **-** |
|  | &nbsp;&nbsp;&nbsp;2/12/2025 | (8) | **-** |  | **-** | **-** | 11607 | 407638 | **-** | **-** |
|  | &nbsp;&nbsp;**Total** |  | - |  | - | - | **28593** | **1004186** | - | - |

---

\* Based on the closing stock price for Resideo stock on December 31, 2025 ($35.12).

&nbsp;&nbsp;&nbsp;&nbsp;(1) These non-qualified stock options were granted on February 20, 2020, and are fully vested.

(2) The remaining RSUs vested on February 14, 2026.

(3) These PSUs were awarded on February 5, 2024 and can be earned after the end of the three-year performance period ending on December 31, 2026. The number of PSUs that the NEO will receive is dependent upon the ranking of Resideo's rTSR as compared to the TSR of the companies in the S&P 600 Index. However, in connection with the Spin-Off, these PSUs will be automatically converted into RSUs under the 2026 Equity Plan, which will cover a number of shares of ADI's common stock determined in accordance with the treatment discussed in "—Compensation Discussion and Analysis—Treatment of Outstanding Equity Awards Resulting from the Distribution" below. Such converted RSUs under the 2026 Equity Plan will otherwise generally be subject to the same terms and conditions as the PSUs (including the service-based vesting condition through December 31, 2026). The number of PSUs shown is the maximum number of shares that can be earned (on a pre-conversion basis).

(4) The remaining RSUs will vest in equal installments on February 5, 2026 and February 5, 2027.

(5) These RSUs will vest in equal installments on February 15, 2027 and February 15, 2028.

(6) These PSUs were awarded on February 12, 2025 and can be earned after the end of the three-year performance period on December 31, 2027. The number of PSUs that the NEO will receive is dependent upon the ranking of Resideo's rTSR as compared to the TSR of the companies in the S&P 600 Index. However, in connection with the Spin-Off, these PSUs will be automatically converted into RSUs and PSUs, as applicable, under the 2026 Equity Plan, which shall cover a number of shares of ADI's common stock determined in accordance with the treatment discussed in "—Compensation Discussion and Analysis—Treatment of Outstanding Equity Awards Resulting from the Distribution" below. Such converted RSUs under the 2026 Equity Plan will otherwise generally be subject to the same terms and conditions as the PSUs (including the service-based vesting condition through December 31, 2027), and the converted PSUs will vest based on ADI's rTSR. The number of PSUs shown is the maximum number of shares that can be earned (on a pre-conversion basis).

(7) These PSUs were awarded on February 12, 2025 and can be earned after the end of the three-year performance period on December 31, 2027. The number of PSUs that the NEO will receive is dependent upon the achievement of a weighted-average return on invested capital (ROIC) goal for fiscal years 2025, 2026, and 2027. However, in connection with the Spin-Off, these PSUs will be automatically converted into RSUs and PSUs, as applicable, under the 2026 Equity Plan, which shall cover a number of shares of ADI's common stock determined in accordance with the treatment discussed in "—Compensation Discussion and Analysis—Treatment of Outstanding Equity Awards Resulting from the Distribution" below. Such converted RSUs under the 2026 Equity Plan will otherwise generally be subject to the same terms and conditions as the PSUs (including the service-based vesting condition through December 31, 2027), and the converted PSUs will vest based on ADI's rTSR. The number of PSUs shown is the target number of shares that can be earned (on a pre-conversion basis).

(8) These RSUs were awarded on February 12, 2025 and vest in equal installments on February 12, 2026, February 12, 2027 and February 12, 2028.

(9) These RSUs were issued upon conversion of previous Snap One stock awards on the date of the acquisition of Snap One and the remaining vested on February 15, 2026.

(10) These RSUs were issued upon conversion of previous Snap One stock awards on the date of the acquisition of Snap One and the remaining will vest in equal installments on February 15, 2026 and February 15, 2027.

(11) These RSUs were issued upon conversion of previous Snap One stock awards on the date of the acquisition of Snap One and vest in equal quarterly installments until fully vested on February 15, 2027.

(12) These RSUs were issued upon conversion of previous Snap One stock awards on the date of the acquisition of Snap One and vest as to one-fourth of the shares on the first anniversary of the grant date and then in equal quarterly installments until fully vested on February 15, 2028.

(13) These PSUs were awarded on August 9, 2024 and can be earned after the end of the three-year performance period ending on December 31, 2026. The number of PSUs that Mr. Carlet will receive is dependent upon the ranking of our rTSR as compared to the TSR of the companies in the S&P 600 Index. However, in connection with the Spin-Off, these PSUs will be automatically converted into RSUs under the 2026 Equity Plan, which will cover a number of shares of ADI's common stock determined in accordance with the treatment discussed in "—Compensation Discussion and Analysis—Treatment of Outstanding Equity Awards Resulting from the Distribution" below. Such converted RSUs under the 2026 Equity Plan will otherwise generally be subject to the same terms and conditions as the PSUs (including the service-based vesting condition through December 31, 2026). The number of PSUs shown is the maximum number of shares that can be earned (on a pre-conversion basis).

(14) The remaining RSUs will vest in equal installments on August 9, 2026 and August 9, 2027.

(15) These RSUs vest in equal installments on July 31, 2026, July 31, 2027 and July 31, 2028.

(16) The remaining RSUs will vest on August 1, 2026.

**Option Exercises and Stock Vested**

The following table summarizes information regarding stock options exercised by our NEOs during the fiscal year ended December 31, 2025 and RSU and PSU awards that vested during that same period, as applicable.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Option Awards** | **Option Awards** | **Stock Awards** | **Stock Awards** |
| <br>**Officer Name** | **# of Shares <br> Acquired on <br> Exercise <br> (#)** | **Value<br> Realized <br> on Exercise <br> ($)** | **Number of Shares**<br> **Acquired on**<br> **Vesting**<br> **(#)<sup>(1)</sup>** | **Value Realized**<br> **on Vesting**<br> **($)<sup>(2)</sup>**  |
| **Robert Aarnes** | 47000 | 833310 | 221482 | 7179807 |
| **Michael Carlet** |  |  | 57450 | 1381921 |
| **Jeannine Lane** | 111507 | 2153837 | 101329 | 3181156 |
| **Alicia Copeland** |  |  | 15070 | 343135 |
| **Marco Cardazzi** | 7079 | 53331 | 14979 | 348296 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents the total number of RSUs that vested during 2025 before share withholding for taxes, including, where applicable, PSUs granted in 2023, which achieved a payment of 200% of the target shares for the performance period ended December 31, 2025, and were settled in February 2026.

(2) Represents the total value of RSUs and PSUs (where applicable) at the vesting date calculated as the average of the high and low prices for Resideo stock on the applicable day of vesting multiplied by the total number of RSUs and PSUs that vested. The individual totals may include multiple vesting transactions during the year.

**Pension Benefits**

The following table provides summary information and related disclosures provide information regarding benefits under the Resideo Technologies, Inc. Pension Plan ("RPP") and the Resideo Supplemental Pension Plan ("SPP"), a nonqualified plan. The RPP and SPP provide pension benefits only to those employees who previously participated in the Honeywell pension plans prior to its spin-off of Resideo (which includes Messrs. Aarnes and Cardazzi and Ms. Lane).

The RPP and SPP benefits depend on the length of a participant's employment with Resideo and certain predecessor companies. This information is provided in the table below under the column entitled "Number of Years of Service." A participant's credited service is generally equal to his or her period of employment with Resideo or an affiliate (or, for periods prior to October 29, 2018, Honeywell International Inc. or a Honeywell affiliate), excluding periods of employment when the participant was not eligible to participate in the RPP or a predecessor Honeywell plan. The column in the table below entitled "Present Value of Accumulated Benefits" represents a financial calculation that estimates the cash value today of the full pension benefit that has been earned by Messrs. Aarnes and Cardazzi and Ms. Lane. It is based on various assumptions, including assumptions about longevity and future interest rates. Additional details about the pension benefits for Messrs. Aarnes and Cardazzi and Ms. Lane follow the table.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Officer Name** | **Plan Names** | **Number of <br> Years of <br> Service <br> (#)** | **Present <br> Value of <br> Accumulated <br> Benefits ($)** | **Payments <br> During <br> Last <br> Year ($)** |
| **Robert Aarnes** | Resideo Technologies, Inc. Pension Plan (Qualified component) | 13.0 | 126201 |  |
|  | Resideo Technologies, Inc. Supplemental Pension Plan (Non-Qualified component) | 13.0 | 346687 |  |
|  | **Total** |  | **472888** |  |
| **Jeannine Lane** | Resideo Technologies, Inc. Pension Plan (Qualified component) | 31.3 | 609137 |  |
|  | Resideo Technologies, Inc. Supplemental Pension Plan (Non-Qualified component) | 31.3 | 1140457 |  |
|  | **Total** |  | **1749594** |  |
| **Marco Cardazzi** | Resideo Technologies, Inc. Pension Plan (Qualified component) | 14.9 | 144442 |  |
|  | Resideo Technologies, Inc. Supplemental Pension Plan (Non-Qualified component) | 14.9 | 32282 |  |
|  | **Total** |  | **176724** |  |

---

***Summary Information***

The RPP is a tax-qualified pension plan in which employees who were participants in the Honeywell pension plans (prior to Honeywell's spin-off of Resideo) participate. The RPP complies with tax requirements applicable to broad-based pension plans, which impose dollar limits on the compensation that can be used to calculate benefits and on the amount of benefits that can be provided. As a result, the pensions that can be paid under the RPP for higher-paid employees represent a much smaller fraction of current income than the pensions that can be paid to less highly paid employees. This difference is made up, in part, with supplemental pensions through the SPP. If an NEO who is eligible to receive a benefit under the SPP terminates employment, the NEO's benefits under the SPP will be paid to the NEO 105 days after his or her termination date.

***Pension Benefit Calculation Formulas***

Within the RPP and the SPP, a variety of formulas are used to determine pension benefits. Different benefit formulas apply for different groups of employees for historical reasons (e.g., past acquisitions by a predecessor company) and the differences in the benefit formulas for our NEOs reflect this history, as applicable.

The Retirement Earnings Plan ("REP") formula is used to determine the amount of pension benefits for participants under the RPP and the SPP. Under this formula, benefits are paid as a lump sum equal to (a) 3% or 6% of final average compensation (the average of a participant's annual compensation for the five calendar years that produces the highest average out of the previous 10 calendar years) multiplied by (b) credited service.

For each pension benefit calculation formula, compensation includes base pay, short-term incentive compensation, payroll-based rewards and recognition and lump-sum incentives. The amount of compensation taken into account under the RPP is limited by tax rules. The amount of compensation taken into account under the SPP is not. The table below describes which formulas are applicable to the relevant NEO:

---

| | |
|:---|:---|
| **NAME** | **DESCRIPTION OF PENSION BENEFITS/FORMULA** |
| **Mr. Aarnes** | Mr. Aarnes' pension benefits under the RPP and the SPP are determined under the 3% REP formula. |
| **Ms. Lane** | Ms. Lane's pension benefits under the RPP and the SPP are determined under the 6% REP formula. |
| **Mr. Cardazzi** | Mr. Cardazzi's pension benefits under the RPP and the SPP are determined under the 3% REP formula. |

---

**Nonqualified Deferred Compensation**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Officer Name** | **Executive<br> Contributions<br> in 2025<br> ($)<sup>(1)</sup>** | **Registrant<br> Contributions <br> in 2025<br> ($)<sup>(2)</sup>** | **Aggregate<br> Earnings <br> in 2025<br> ($)<sup>(3)</sup>** | **Aggregate <br> Withdrawals and <br> Distributions in 2025<br> ($)** | **Aggregate Balance<br> at the End of <br> Fiscal Year 2025<br> ($)<sup>(4)</sup>** |
| **Jeannine Lane** | 117334 | – | 7152 | – | 222046 |

---

(1) The amounts in this column
were contributed by Ms. Lane into her account under the deferred compensation plan, which includes amounts reflected in the "Base
Salary" column of the Summary Compensation Table.

(2) The amounts in this column
are contributions made to Ms. Lane's account in 2026 for the 2025 calendar year.

(3) The amounts in this column
represent changes in Ms. Lane's account balance, including dividends and interest, during 2025.

(4) Of the balance shown, the following
amounts were previously reported in the Summary Compensation Table for Ms. Lane: 2024: $16,419; 2023: $0.

All SPP and deferred compensation amounts are unfunded and unsecured obligations of Resideo and are subject to the same risks as any of Resideo's general obligations.

***Resideo Supplemental Savings Plan***

The Resideo Supplemental Savings Program ("RSSP") is a nonqualified deferred compensation plan that allows eligible Resideo employees, including its NEOs, to save additional amounts in excess of what is allowed under Resideo's tax-qualified 401(k) plan due to the annual deferral and compensation limits imposed by the Internal Revenue Code. The RSSP has two components, the DIP and the SSP. Executive officers can elect to defer up to 100% of their annual bonus awards under the DIP component. In addition, executive officers may also participate in the SSP component to defer eligible compensation that cannot be contributed to Resideo's 401(k) savings plan due to IRS limitations. The amounts contributed to the SSP component are eligible for matching contributions not to exceed 100% of the first 7% contributed combined between the SSP and the 401(k) plan. Matching contributions are always vested.

**Interest Rate**. All funds are invested in the Fidelity U.S. Bond Index Fund, and participant accounts are credited with interest based on the fund's performance. Matching contributions are also treated as invested in the Fidelity U.S. Bond Index Fund.

**Distribution**. Amounts transferred from the Honeywell Supplemental Savings Plan or Honeywell Deferred Incentive Plan to the RSSP will follow the same distribution options as applied under the Honeywell plan. For deferrals to the RSSP that started in 2019 or later years, payments will commence at the earlier of the January or July at least six months following the participant's separation from service; death; or the in-service distribution date elected by the participant. Amounts will be paid to participants in a lump sum or in installment payments for distributions triggered by separation from service or an in-service distribution at the election of the participant. Participant RSSP accounts are distributed in cash only. Participants can make different payment elections under the SSP and the DIP components of the RSSP.

**Compensatory Arrangements with NEOs**

Resideo is party to an employment agreement with Mr. Carlet, the material terms of which are summarized below.

The summary below excludes payments and benefits generally available to all executive officers under the terms of Resideo's equity award agreements that are described above. Resideo does not have any individual compensatory arrangements with Messrs. Aarnes or Cardazzi or Mses. Lane or Copeland.

***Employment Agreement with Michael Carlet, Executive Vice President, Chief Financial Officer***

Resideo entered into an employment agreement with Mr. Carlet, effective August 9, 2024, in connection with his appointment as Chief Financial Officer. Pursuant to the agreement, Mr. Carlet is eligible to receive an annual base salary of $575,000, subject to annual adjustment. Mr. Carlet has a target annual incentive compensation opportunity equal to 100% of his annual base salary. Mr. Carlet's 2024 annual bonus was pro-rated as follows: (1) for the period January 1, 2024 through August 8, 2024, his target bonus percentage was 85% and payout for this period was based on the Snap One bonus plan metrics and Snap One financial results; and (2) for the period from August 9, 2024 through December 31, 2024, his target bonus percentage was 100% and payout for this period was based on the Resideo Bonus Plan metrics and Resideo financial results. Beginning in 2025, Mr. Carlet would be eligible for annual long-term incentive awards targeted at $2,000,000, which may consist of time-based restricted stock units and performance-based restricted stock units, or some combination thereof. Mr. Carlet received an initial equity award with a grant date value of $400,000 on August 9, 2024, 50% of which was issued as restricted stock units and 50% of which was issued as performance-based restricted stock units with measurements and goals as implemented for the Resideo executive team. The restricted stock units will vest at a rate of one-third of the shares on each of the first, second, and third anniversaries of the grant date, provided in all cases Mr. Carlet continues to be employed by Resideo on such vesting date. In connection with the Spin-Off, Mr. Carlet's unvested equity awards will be converted into awards underlying ADI common stock under the 2026 Equity Plan, as described in "—Treatment of Outstanding Equity Awards Resulting from the Distribution" below.

See "—Compensation Discussion and Analysis—Material Offer Letters" below for information regarding our go-forward offer letters.

**Potential Payments Upon Termination or Change in Control**

***Resideo Severance Plans***

These benefits are determined primarily under the Resideo Officer Severance Plan and the Resideo Executive Severance Plan, each of which has been periodically reviewed and benchmarked against severance practices of companies in Resideo's approved compensation peer group. Benefits provided under each plan are conditioned on the executive executing a full release of claims. In addition, benefits under the Resideo Officer Severance Plan are conditioned on compliance with certain non-competition and non-solicitation covenants in favor of Resideo. The right to continued severance benefits under the plans ceases in the event of a violation of such covenants. In addition, Resideo has the right to recover certain severance benefits already paid to any executive who violates such restrictive covenants.

In addition to the Resideo Officer Severance Plan and the Resideo Executive Severance Plan, several other benefit plans of Resideo, such as its annual incentive plan, also have provisions that impact these benefits. These benefits ensure that Resideo's 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 – such as circumstances that might lead to the termination of an executive's employment or that might lead to a CIC or similar transaction. Generally, this is achieved by assuring that an executive would receive a level of continued compensation if their employment is adversely affected in these circumstances, subject to certain conditions. These benefits help ensure that affected executives act in the best interests of shareholders, even if such actions are otherwise contrary to their personal interests. This is critical because these are circumstances in which the actions of NEOs may have a material impact on shareholder value. Accordingly, Resideo set the level and terms of these benefits in a way it believes is necessary to obtain the desired results. The level of benefit and the rights to benefits are determined by the type of termination event, as described below.

In the case of a CIC, severance benefits under the Resideo Officer Severance Plan (applicable to Messrs. Aarnes and Carlet and Ms. Lane) are payable only in the event that both parts of the "double trigger" are satisfied. That is, (i) there must be a CIC of Resideo, and (ii)(A) the NEO must be involuntarily terminated other than for cause, or (B) the NEO must initiate the termination of his or her own employment for good reason. Similarly, the Resideo 2018 Stock Incentive Plan does not offer single-trigger vesting of equity awards that are assumed or replaced by an acquirer upon a CIC.

Notably, the Spin-Off will not constitute a CIC under the Resideo Officer Severance Plan. However, the Resideo CHCMC adopted an amendment to the Resideo Officer Severance Plan to provide enhanced severance protection in connection with the Spin-Off. The Officer Divestiture Amendment provides that NEOs would be entitled to certain "double trigger" severance protection in the event of their experiencing a qualifying termination following a "divestiture" (such as the Spin-Off). See "—Compensation Discussion and Analysis—Other Components of Compensation—Severance Plans" above for additional information regarding the impact of the Officer Divestiture Amendment on severance rights of Messrs. Aarnes and Carlet and Ms. Lane in relation to the Spin-Off.

***Equity Awards***

*Death and Disability* – In the case of a recipient's death or disability, vesting of options and RSUs accelerates in full and a pro rata portion of the PSUs will vest and settle if, and to the extent of, Resideo's actual achievement of the performance measures during the performance period. The options remain exercisable until the earlier of three years after termination or the original expiration date.

 

*Involuntary Termination Without Cause –* If an executive officer, including Messrs. Aarnes and Carlet and Ms. Lane (but not Ms. Copeland or Mr. Cardazzi since they were not executive officers of Resideo during 2025), is subject to an involuntary termination without cause by Resideo, a pro rata portion of his or her options and RSUs will vest immediately upon termination, and a pro rata portion of the PSUs will vest and settle if, and to the extent of, Resideo's actual achievement of the performance measures during the performance period. The options will remain exercisable until the earlier of one year after termination or the original expiration date.

 

*Voluntary Resignation –* If a recipient resigns voluntarily from Resideo (other than as a Retirement as described below), he or she will forfeit any unvested options, RSUs and PSUs, and will have 30 days to exercise any then-vested options.

 

*Retirement –* Equity awards generally provide that an award recipient is retirement eligible if he or she is age 55 years or older, has at least 10 years of service to Resideo and also has provided Resideo with at least 6 months' prior notice that he or she is considering retirement. If an NEO is retirement eligible, his or her employment with Resideo ends as a result of retirement and he or she accepts certain post-employment conditions, RSU awards and options will continue to vest in accordance with the original vesting schedule (and options shall remain exercisable until the earlier of their original expiration date and three (3) years after retirement) and the PSU awards will vest on a pro rata basis, based on actual performance as measured at the end of the performance period.

*"Double Trigger" Change in Control –* In the event of an involuntary termination without cause or resignation for good reason within 24 months of a CIC, all unvested options and RSUs will vest in full. In the event of an involuntary termination without cause or resignation for good reason within 24 months of a CIC, PSUs will vest in full (i) if the CIC occurs after the end of the performance period, based on actual results and (ii) if the CIC occurs during the performance period, based on target. If the surviving entity in the CIC does not continue, assume, or replace the awards, the options and RSU awards will vest in full immediately, and assuming the performance period has not been completed, the PSU awards will vest in full based on target performance.

*"Double Trigger" Divestiture* – Under the Resideo Officer Severance Plan (applicable to Messrs. Aarnes and Carlet and Ms. Lane), in the event of an involuntary termination without cause or resignation for good reason within 18 months of a divestiture that is consummated prior to December 31, 2027, all unvested options, RSUs, and PSUs will generally vest in the same manner as if the transaction constituted a CIC (as described above).

The following table summarizes estimated payments and benefits to which Messrs. Aarnes, Carlet and Cardazzi and Mses. Lane and Copeland would be entitled upon the hypothetical occurrence of various termination scenarios or a CIC. The information in the table below is based on the assumption, in each case, that the termination of employment occurred on December 31, 2025. Accrued pension and non-qualified deferred compensation benefits, which are described elsewhere in the registration statement of which this information statement forms a part, are not included in the table below in accordance with the applicable disclosure requirements, even though they may become payable at the times specified in the table. Following the Spin-Off, Ms. Copeland and Mr. Cardazzi will participate in ADI's severance plan for officers along with Messrs. Aarnes and Carlet and Ms. Lane but will not be eligible under the Resideo Officer Severance Plan for the enhanced severance payments and benefits provided for thereunder.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Payments and Benefits** | **Named Executive<br> Officer** | **Termination by the Company Without Cause<br> ($)** | **Termination due to Retirement<br> ($)** | **Death <br> ($)** | **Disability<br> ($)** | **Divestiture, Termination without Cause, or by NEO for Good Reason<br> ($)** | **Change-in-Control- Termination of<br> Employment by Company without Cause, or by NEO for Good Reason <br> ($)** |
| Cash Severance<sup>(1)</sup> (Base Salary) | **Robert Aarnes** | 1005000 |  |  |  | 1340000 | 1340000 |
| Cash Severance<sup>(1)</sup> (Base Salary) | **Michael Carlet** | 900000 |  |  |  | 1200000 | 1200000 |
| Cash Severance<sup>(1)</sup> (Base Salary) | **Jeannine Lane** | 886500 |  |  |  | 1182000 | 1182000 |
| Cash Severance<sup>(1)</sup> (Base Salary) | **Alicia Copeland** | 331500 |  |  |  | 331500 | 331500 |
| Cash Severance<sup>(1)</sup> (Base Salary) | **Marco Cardazzi** | 260798 |  |  |  | 260798 | 260798 |
| Annual Incentive<br> Compensation<sup>(2)</sup> - Year of Termination | **Robert Aarnes** |  |  | 670000 | 670000 | 1340000 | 1340000 |
| Annual Incentive<br> Compensation<sup>(2)</sup> - Year of Termination | **Michael Carlet** |  |  | 600000 | 600000 | 1200000 | 1200000 |
| Annual Incentive<br> Compensation<sup>(2)</sup> - Year of Termination | **Jeannine Lane** |  |  | 472800 | 472800 | 945600 | 945600 |
| Annual Incentive<br> Compensation<sup>(2)</sup> - Year of Termination | **Alicia Copeland<sup>(5)</sup>** |  |  | 278283 | 278283 |  |  |
| Annual Incentive<br> Compensation<sup>(2)</sup> - Year of Termination | **Marco Cardazzi** |  |  | 173865 | 173865 |  |  |
| Outstanding<br> Equity Awards<sup>(3)</sup> | **Robert Aarnes** |  | 18870093 | 23496271 | 23496271 | 23496271 | 23496271 |
| Outstanding<br> Equity Awards<sup>(3)</sup> | **Michael Carlet** |  |  | 6200506 | 6200506 | 6200506 | 6200506 |
| Outstanding<br> Equity Awards<sup>(3)</sup> | **Jeannine Lane** |  | 6206358 | 7462122 | 7462122 | 7462122 | 7462122 |
| Outstanding<br> Equity Awards<sup>(3)</sup> | **Alicia Copeland<sup>(6)</sup>** |  |  | 1660544 | 1660544 |  | 1660544 |
| Outstanding<br> Equity Awards<sup>(3)</sup> | **Marco Cardazzi<sup>(6)</sup>** |  |  | 1004186 | 1004186 |  | 1004186 |
| Benefits<sup>(4)</sup> | **Robert Aarnes** | 28513 |  |  |  | 38017 | 38017 |
|  | **Michael Carlet** | 28513 |  |  |  | 38017 | 38017 |
|  | **Jeannine Lane** | 18237 |  |  |  | 24316 | 24316 |
|  | **Alicia Copeland** |  |  |  |  |  |  |
|  | **Marco Cardazzi** |  |  |  |  |  |  |
| Total | **Robert Aarnes** | 1033513 | 18870093 | 24166271 | 24166271 | 26214288 | 26214288 |
|  | **Michael Carlet** | 928513 |  | 6800506 | 6800506 | 8638523 | 8638523 |
|  | **Jeannine Lane** | 904737 | 6206358 | 7934922 | 7934922 | 9614038 | 9614038 |
|  | **Alicia Copeland** | 331500 |  | 1938827 | 1938827 | 331500 | 1992044 |
|  | **Marco Cardazzi** | 260798 |  | 1178051 | 1178051 | 260798 | 1264984 |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) For Messrs. Aarnes and Carlet and Ms. Lane, cash severance is governed
by the Resideo Officer Severance Plan, as described in "—Compensation Discussion and Analysis—Other Components of Compensation—Severance
Plans" above. Cash severance equals 18 months of base salary for a non-transaction involuntary termination, and 24 months of highest
base salary plus two times annual incentive compensation for a qualifying termination following a CIC (payable in a lump sum) or a divestiture
(payable in installments). For Ms. Copeland and Mr. Cardazzi, cash severance is governed by the Resideo Executive Severance Plan, as described
in "—Compensation Discussion and Analysis—Other Components of Compensation—Severance Plans" above. Cash
severance equals nine months of base salary for an involuntary termination, regardless of whether such involuntary termination is in connection
with a CIC. The Resideo Executive Severance Plan does not provide for "good reason" as a qualifying termination trigger or
enhanced severance payments or benefits upon a termination in connection with a CIC. All severance is subject to the individual's
execution and non-revocation of a release of claims.

&nbsp;&nbsp;&nbsp;&nbsp;(2) In addition to the amounts reflected in the final two columns, if any of Messrs. Aarnes or Carlet or Ms. Lane is terminated without cause in qualifying situations following a CIC or divestiture, he or she will also be entitled to a pro-rated annual incentive award for the period of employment during the year of termination.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Amounts represent the intrinsic value of RSUs and PSUs (as applicable) as of December 31, 2025 for which the vesting would be accelerated pursuant to the award terms described above. The value included for RSUs and PSUs (as applicable) is the product of the number of units for which vesting would be accelerated and $35.12, the closing price of Resideo common stock on December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;(4) The amounts reflected represent Resideo's cost for continuation of benefits, such as medical, dental, vision and life insurance, for the "Salary Continuation Period" as defined under the Resideo Officer Severance Plan and Resideo Executive Severance Plan, as applicable.

(5) The amounts reflected represent Ms. Copeland's entitlement as of December 31, 2025, which reflects her promotion during 2025.

(6) The amounts reflected in the final column represent the "double-trigger" CIC vesting pursuant to the Resideo 2018 Stock Incentive Plan.

**Treatment of Outstanding Equity Awards Resulting from the Distribution**

We expect that equity awards outstanding under the Resideo 2018 Stock Incentive Plan and the 2018 Stock Plan for Non-Employee Directors of Resideo Technologies, Inc. (the "Resideo 2018 Director Stock Plan") will be adjusted in connection with the Distribution with the intent to maintain the economic value of those awards before and after the Spin-Off. Other than stock options, unvested Resideo equity awards held by ADI employees and non-employee directors will be converted into equity awards of ADI, as further described in the table below, with terms, such as the vesting schedule, that will generally continue unchanged.

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| | |
|:---|:---|
| **Type of Award** | **Treatment of Award** |
| **Stock Options** | Resideo stock options held by one ADI employee, whether vested or unvested as of the Distribution, will remain outstanding at Resideo and subject to the terms of the Resideo stock option award agreement and the Resideo 2018 Stock Incentive Plan (including the term, exercisability and vesting schedule, if any), disregarding the effect of any termination of service with Resideo in connection with the Distribution and, following the date of the Distribution, a termination of service with ADI will be deemed a termination of service with Resideo for purposes of such Resideo stock option awards. The exercise price of, and the number of shares subject to, each such stock option award will be adjusted in a manner intended to preserve the intrinsic value of the Resideo stock option award as measured immediately before and immediately after the Distribution, subject to rounding and applicable law. |
| **Unvested Restricted Stock Units (RSUs)** | Each RSU award with respect to Resideo common stock that is unvested as of the Distribution held by an ADI employee or non-employee director will be converted into an RSU award with respect to ADI common stock that preserves the economic value of the original unvested Resideo RSU award as measured immediately before and immediately after the Distribution, subject to rounding. Each such converted ADI RSU award will otherwise be subject to the same terms and conditions as those that applied to the Resideo RSU award immediately prior to the Distribution but subject to the terms of the 2026 Equity Plan. |
| **Deferred Restricted Stock Units ("Deferred RSUs")** | *Unvested Deferred RSUs*. Each unvested Deferred RSU award with respect to Resideo common stock held by ADI non-employee directors will be treated in the same manner as unvested RSUs described above.<br>*Vested Deferred RSUs (Employees)*. Each vested Deferred RSU award with respect to Resideo common stock held by ADI employees will remain outstanding at Resideo and be subject to the same terms and conditions (including deferral schedule and permissible payment events) following the Distribution, disregarding the effect of any termination of service with Resideo in connection with the Distribution and, following the date of the Distribution, a termination of service with ADI will be deemed a termination of service with Resideo for purposes of such Deferred RSU awards.<br>*Vested Deferred RSUs (Non-Employee Directors)*. Each vested Deferred RSU award with respect to Resideo common stock held by ADI non-employee directors will be converted into two RSU awards, one in Resideo common stock and one in ADI common stock, with the resulting post-Distribution RSU awards (collectively, the "New Deferred RSUs") having a combined intrinsic value immediately following the Distribution equal to the intrinsic value of the existing Resideo Deferred RSU award immediately before the Distribution. The New Deferred RSUs will be subject to the same terms and conditions (including deferral schedule and permissible payment events) following the Distribution, and subject to the terms of the Resideo 2018 Director Stock Plan or the 2026 Equity Plan, as applicable, disregarding the effect of any termination of service with Resideo in connection with the Distribution. Following the date of the Distribution, a non-employee director of ADI will be deemed to experience a separation from service upon ceasing to provide services to the Board for purposes of such New Deferred RSUs. Non-employee directors of Resideo who do not serve on our Board immediately following the Distribution will also receive New Deferred RSUs in the same manner as described above (except that such individual will be deemed to experience a separation from service upon ceasing to provide services to the Resideo Board). |

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| | |
|:---|:---|
| **Performance Stock Units (PSUs)** | Each PSU award with respect to Resideo common stock held by an ADI employee will be converted into an award of unvested time- and/or performance-based restricted stock units with respect to ADI common stock that preserves the economic value of the number of Resideo PSUs deemed earned or issued at target, as applicable (collectively, the "ADI Post-Spin Awards") as follows: with respect to any Resideo PSU (i) granted in 2024, the number of units deemed earned will be based on actual performance measured as of June 30, 2026, which will be converted into a time-based restricted stock unit with respect to ADI common stock; (ii) granted in 2025, (x) 50% of the total number of units subject thereto, which vest based on a return on invested capital metric, will vest based on actual performance measured as of December 31, 2025 and such number of units deemed earned will be converted into a time-based restricted stock unit with respect to ADI common stock, and the remaining 50% of such units will be converted into an unvested time and performance-based restricted stock unit of ADI with vesting terms determined by the Resideo CHCMC, which performance metrics will be based on relative total shareholder return of ADI common stock; and (y) 50% of the total number of units subject thereto, which vest based on relative total shareholder return of ADI common stock, will vest based on actual performance measured as of June 30, 2026 and such number of units deemed earned will be converted into a time-based restricted stock unit with respect to ADI common stock, and the remaining 50% of such units will be converted into an unvested time and performance-based restricted stock unit of ADI with vesting terms determined by the Resideo CHCMC, which performance metrics will be based on relative total shareholder return of ADI common stock; and (iii) granted in 2026, 100% of the target number of units subject thereto will be converted into an unvested time and performance-based restricted stock unit of ADI with vesting terms determined by the Resideo CHCMC. Except as provided above, each ADI Post-Spin Award Former PSU award will otherwise be subject to the same terms and time-based vesting conditions as those that applied to the Resideo PSU award immediately prior to the Distribution but subject to the terms of the 2026 Equity Plan. |

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**2026 Equity Plan**

Prior to the Spin-Off, we expect our Board to adopt, and Resideo, as our sole shareowner, to approve, the 2026 Equity Plan for the benefit of certain of our current and future employees, non-employee directors and other service providers. The following summary of the material terms of the 2026 Equity Plan is qualified in its entirety by reference to the full text of the 2026 Equity Plan, the form of which is incorporated by reference herein and to be filed as Exhibit 10.5 to the Form 10 of which this Information Statement forms a part.

In addition, awards will be issued under the 2026 Equity Plan in connection with the conversion and replacement of awards granted by Resideo prior to the Spin-Off and held by ADI employees, non-employee directors and other service providers, as well as non-employee directors of Resideo as discussed above ("Conversion Awards"). Conversion Awards will be denominated in our common stock following the Distribution and will otherwise be issued in accordance with the Employee Matters Agreement. See "—Treatment of Outstanding Equity Awards Resulting from the Distribution" above.

*Purpose of the 2026 Equity Plan*. The purpose of the 2026 Equity Plan would be to aid ADI in recruiting and retaining highly qualified employees, non-employee directors and other service providers who are capable of assuring the future success of ADI. We expect that awards of stock-based compensation and opportunities for stock ownership in ADI will provide incentives to our employees, non-employee directors and other service providers to exert their best efforts for the success of our business and thereby align their interests with those of our stockholders.

*Shares Available for Awards*. If the 2026 Equity Plan is approved by Resideo, as our sole shareholder, and our Board, 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 2026 Equity Plan would be , which includes the number of shares underlying Conversion Awards. It is expected that the 2026 Equity Plan will contain a limit on the number of shares of common stock available for grant in the form of incentive stock options to . In addition, it is expected that the 2026 Equity Plan will contain an annual limit on the aggregate grant date fair value of awards that may be granted to our non-employee directors of $750,000.

Under the 2026 Equity Plan, it is expected that ADI will have the flexibility to grant different types of equity compensation awards, including stock options, stock appreciation rights, restricted stock, RSUs and other awards based, in whole or in part, on the value of ADI equity, as well as cash-based awards. The grant, vesting, exercise and settlement of awards granted under the 2026 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 2026 Equity Plan. Vested RSUs held by non-employee directors may be deferred in accordance with the terms of the 2026 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 2026 Equity Plan.

Shares that are subject to awards that are paid in cash, terminate, lapse or are canceled or forfeited would be available again for grant under the 2026 Equity Plan and would not be counted for purposes of the limits above. Shares that are reacquired by ADI with cash tendered in payment of the exercise price of an award and shares that are tendered or withheld in payment of all or part of the exercise price or tax withholding amount relating to an award will not be added back to the number of shares authorized under the 2026 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 2026 Equity Plan.

*Eligibility*. It is expected that employees, non-employee directors and other service providers of ADI or its affiliates would be eligible to receive awards under the 2026 Equity Plan. Certain current and former non-employee directors of Resideo who do not serve on our Board will also be eligible to participate in the 2026 Equity Plan, solely with respect to the grant of New Deferred RSUs (as discussed in "—Compensation Discussion and Analysis—Treatment of Outstanding Equity Awards Resulting from the Distribution" above).

*Administration*. It is expected that our Compensation Committee would have the authority to administer the 2026 Equity Plan, including the authority to select the persons who receive awards, determine the number of shares subject to the awards and establish the terms and conditions of the awards, consistent with the terms of the 2026 Equity Plan. Subject to the expected provisions of the 2026 Equity Plan, our Compensation Committee may specify the circumstances under which the exercisability or vesting of awards may be accelerated or whether awards or amounts payable under awards may be deferred. Our Compensation Committee may waive or amend the terms of an award, consistent with the terms of the 2026 Equity Plan, but may not reprice a stock option or stock appreciation right, whether through amendment, cancellation and replacement, or exchange for cash or any other awards. Our Compensation Committee would have the authority to interpret the 2026 Equity Plan and establish rules for the administration of the 2026 Equity Plan. It is expected that the 2026 Equity Plan will provide that our Compensation Committee may delegate its powers and duties under the 2026 Equity Plan to one or more directors or other individuals as the committee deems to be advisable, except that only our Compensation Committee or our Board would have authority to grant and administer awards to executive officers and non-employee directors.

The Board may also exercise the powers of our Compensation Committee with respect to the 2026 Equity Plan and awards granted thereunder at any time.

*Tax Consequences of Awards*. The following is a brief summary of the principal United States federal income tax consequences of awards and transactions under the 2026 Equity Plan for the employees, non-employee directors and other service providers selected to participate in the 2026 Equity Plan (the "Participants") and the Company. This summary is not intended to be exhaustive and, among other things, does not describe local, state or foreign tax consequences.

*Options and Stock Appreciation Rights*. A Participant will not recognize any income at the time a stock option or stock appreciation right is granted, nor will the Company be entitled to a deduction at that time. When a stock option is exercised, the Participant will recognize ordinary income in an amount equal to the excess of the fair market value of the shares received as of the date of exercise over the exercise price of the option. When a stock appreciation right is exercised, the Participant will recognize ordinary income in an amount equal to the cash received or, if the stock appreciation right is settled in shares, the shares received as of the date of exercise. The Company generally will be entitled to a corresponding tax deduction in the same time period and amount as the Participant recognizes income.

*Restricted Stock and RSUs*. A Participant will not recognize any income at the time of grant of a restricted stock unit or share of restricted stock (whether subject to time-based vesting or performance-based vesting), and the Company will not be entitled to a deduction at that time. The Participant will recognize ordinary income in an amount equal to the fair market value of the shares received or, if the restricted stock unit is paid in cash, the amount payable, upon settlement of a restricted stock unit. In the year in which shares of restricted stock are no longer subject to a substantial risk of forfeiture (i.e., in the year that the shares vest), the Participant will recognize ordinary income in an amount equal to the excess of the fair market value of the shares on the date of vesting over the amount, if any, the Participant paid for the shares. Under certain circumstances and if permitted by an individual award, a Participant may elect (within 30 days after being granted restricted stock) to recognize ordinary income in the year of receipt instead of the year of vesting. If such an election is made, the amount of income recognized by the Participant will be equal to the excess of the fair market value of the shares on the date of receipt over the amount, if any, the Participant paid for the shares. The Company generally will be entitled to a corresponding tax deduction in the same time period and amount as the Participant recognizes income.

*Other Types of Awards*. If other awards are granted under the 2026 Equity Plan, the tax consequences may differ from those described above for stock options, stock appreciation rights, restricted stock and RSUs. As a general matter, the Company typically would be entitled to a tax deduction in respect of any such compensatory awards in the same time period and amount as the Participant recognizes income in respect of such awards.

*Withholding of Taxes*. The Company has the right to require, prior to the issuance or delivery of shares in settlement of any award, the Participant to pay any taxes required by law.

**ADI Severance Plans**

Following the Spin-Off, we expect to adopt severance programs that are substantially similar to those currently maintained by Resideo, including the Resideo Officer Severance Plan and Resideo Executive Severance Plan. For additional information regarding the Resideo Officer Severance Plan and Resideo Executive Severance Plan, see "—Compensation Discussion and Analysis—Other Components of Compensation—Severance Plans" above.

**DIRECTOR COMPENSATION**

Following the Spin-Off, we expect that our Compensation Committee will periodically review and make recommendations to the Board 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 the Board. Resideo has approved an initial director compensation program for ADI 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 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 the Board and its committees, and an equity component, designed to align the interests of directors and stockholders and, by vesting over time, to create an incentive for continued service on the Board.

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| | |
|:---|:---|
| &nbsp;&nbsp;**ADI Board of Directors' Annual Compensation** | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash Retainer** | $90000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Board Chairman – Additional Cash Retainer** | $120000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Board Committee Membership – Additional Cash Retainer** | Audit Committee Chair: $27,500<br> Audit Committee Member: $12,500<br> Compensation Committee Chair: $20,000<br> Compensation Committee Member: $10,000<br> Other Committee Chair: $15,000<br> Other Committee Member: $7,500<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Annual Equity Grants**<br> RSUs vest on the earliest of the first anniversary of the date of grant, the next Annual Meeting of Stockholders, the director's death or disability, or the occurrence of a change in control.<br>| Each non-employee director receives an annual restricted stock unit grant with a target value of $150,000 on the date of the Annual Meeting of Stockholders. Directors will receive a full annual equity grant upon the Spin-Off, which will vest upon the first anniversary of the date of grant, as well as a full annual equity grant upon the first Annual Meeting of Stockholders following the Spin-Off, subject to vesting as set forth herein. |

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Cash elements are paid in quarterly installments in arrears and prorated for partial years of service. We do not separately compensate our directors for attending Board or committee meetings.

**Director Deferred Compensation Plan**

The ADI Deferred Compensation Plan for Non-Employee Directors (the "Director Deferred Compensation Plan") encourages our directors to defer a portion of their cash compensation to be held in the form of equity or deferred cash, which can only be paid at the end of their tenure on the Board or in other limited circumstances. In addition, non-employee directors are also permitted to defer their annual equity award in accordance with the terms of the 2026 Equity Plan.

Prior to the first day of each calendar year, each non-employee director may (i) elect to defer all of his or her annual cash retainer fees as well as any annual committee and chair fees other than reimbursements otherwise payable to him or her by ADI into deferred stock units ("DSUs") or deferred cash pursuant to the Director Deferred Compensation Plan, and (ii) elect to defer payment of his or her annual equity grant of RSUs into DSUs, effective once the award has vested in accordance with its terms and conditions. Each DSU under the Director Deferred Compensation Plan, and each vested RSU that a non-employee director has elected to defer under the terms of the 2026 Equity Plan, represents the right to receive one share of our common stock generally on the first day of the seventh calendar month following the date the non-employee director incurs a separation of service from us.

**Other Benefits**

Non-employee directors will also be provided with $ 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 the Board, must hold ADI common stock (including unvested RSUs) with a market value of at least five times the value of the annual cash retainer in effect at the time they became a director before being permitted to sell any ADI common stock holdings, including net shares from vesting of restricted stock unit grants (*i*.*e*., shares vested less shares required to pay applicable taxes).

**CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS**

**Agreements with Resideo**

Following the separation and distribution, we and Resideo will operate separately, each as a public company. We will enter into a separation and distribution agreement with Resideo, which is referred to in this information statement as the "separation agreement." In connection with the separation, we will also enter into various other agreements to effect the separation and provide a framework for our relationship with Resideo after the separation, including a transition services agreement, an employee matters agreement, a tax matters agreement and an intellectual property matters agreement. These agreements will provide for the allocation between us and Resideo of the assets, employees, services, liabilities and obligations (including investments, property and employee benefits and tax-related assets and liabilities) of Resideo and its subsidiaries attributable to periods prior to, at and after our separation from Resideo and will govern certain relationships between us and Resideo after the separation.

The following summaries of each of the agreements listed above are qualified in their entireties by reference to the full text of the applicable agreements, forms of which are filed as exhibits to the registration statement of which this information statement forms a part. When used in this section, "distribution date" refers to the date on which Resideo commences distribution of our common stock to the holders of shares of Resideo common stock.

**The Separation Agreement**

We intend to enter into a separation agreement with Resideo prior to the distribution of our common stock to Resideo common stockholders. The separation agreement will set forth our agreements with Resideo regarding the principal actions to be taken in connection with the separation. It will also set forth other agreements that govern certain aspects of our relationship with Resideo following the separation and distribution. This summary of the separation agreement is qualified in its entirety by reference to the full text of the agreement, which is incorporated by reference into this information statement.

***Transfer of Assets and Assumption of Liabilities***

The separation agreement will identify assets to be transferred, liabilities to be assumed and contracts to be allocated to each of Resideo and us as part of the Reorganization Transactions described herein, and will describe when and how these transfers, assumptions and assignments will occur, though many of the transfers, assumptions and assignments will have already occurred prior to the parties' entering into the separation agreement. The separation agreement will provide for those transfers of assets and assumptions of liabilities that are necessary in connection with the separation so that we and Resideo retain the assets necessary to operate our respective businesses and retain or assume the liabilities allocated in accordance with the separation. The separation agreement will also provide for the settlement or extinguishment of certain liabilities and other obligations between us and Resideo. In particular, the separation agreement will provide that, subject to the terms and conditions contained in the separation agreement:

● "ADI Assets" (as defined in the separation agreement), including, but not limited to, the equity interests of our subsidiaries, assets reflected on our pro forma balance sheet and certain other assets either exclusively or primarily relating to our business, will be retained by or transferred to us or one of our subsidiaries, except as set forth in the separation agreement or one of the other agreements described below;

● "ADI Liabilities" (as defined in the separation agreement), including, but not limited to, the following will be retained by or transferred to us or one of our subsidiaries:

○ all liabilities to the extent relating to, arising out of or resulting from (a) the operation or conduct of our ADI Global Distribution business, as conducted at any time prior to, at or after the separation (including, except as set forth in the separation agreement or other ancillary agreements, any liabilities from any act or failure to act by us that creates liability under the separation agreements entered into between Honeywell and Resideo as part of Resideo's spin-off from Honeywell (the "Honeywell Separation Agreements") to the extent relating to, arising out of or resulting from the operation or conduct of our business); (b) the operation or conduct of any business conducted by us or any of our subsidiaries at any time after the separation (including, except as set forth in the separation agreement or other ancillary agreements, any liabilities from any act or failure to act by us that creates liability under the Honeywell Separation Agreements to the extent relating to, arising out of or resulting from the operation or conduct of our business); or (c) any ADI Asset, whether arising before, at or after the separation;

○ any and all "ADI Environmental Liabilities" (as defined in the separation agreement);

○ liabilities (whether accrued, contingent or otherwise) reflected on our pro forma balance sheet;

○ liabilities (whether accrued, contingent or otherwise) relating to, arising out of or resulting from, any infringement, misappropriation or other violation of any intellectual property of any other person related to the conduct of our business;

○ any product liability claims or other claims of third parties to the extent primarily relating to, arising out of or resulting from any product developed, manufactured, marketed, distributed, leased or sold by our business;

○ any liabilities (whether accrued, contingent or otherwise) relating to, arising out of or resulting from any action exclusively related to our ADI Global Distribution business or any action that is not exclusively related to our ADI Global Distribution business to the extent (but solely to the extent) such liabilities relate to our ADI Global Distribution business;

○ liabilities (whether accrued, contingent or otherwise) relating to, arising out of or resulting from any form, registration statement, schedule or similar disclosure document filed or furnished with the SEC on or after the separation by us or our subsidiaries or as pursuant to any financing arrangements entered into by us or our subsidiaries; and

○ all liabilities (whether accrued, contingent or otherwise) relating to, arising out of or resulting from disclosure documents filed or furnished with the SEC that are related to us or the separation (including the Form 10 registration statement of which this information statement is a part and this information statement) or as a result of any statements (whether oral or written), press releases or other public disclosures made on or prior to the separation by or on behalf of us or Resideo, including by any officer thereof, in respect of the transactions contemplated by the separation agreement and the other ancillary agreements entered into in connection therewith.

"ADI Liabilities" do not include any liabilities that are expressly contemplated by separation agreement or any ancillary agreement as liabilities to be assumed by Resideo or its subsidiaries. In addition, the separation agreement provides that the fact that a liability constitutes an "ADI Liability" under the separation agreement does not affect the rights and liabilities of us or Resideo, as applicable, in respect of Resideo products distributed by us pursuant to arrangements between us and Resideo, whether prior to, at or after the separation.

All other assets and liabilities (whether accrued, contingent or otherwise) of Resideo will be assumed and retained by or transferred to Resideo or one of its subsidiaries (other than us or one of our subsidiaries), except as set forth in the separation agreement or one of the other agreements described below and except for other limited exceptions that will result in us retaining or assuming certain other specified liabilities.

The allocation of liabilities with respect to taxes, except for payroll taxes and reporting and other tax matters expressly covered by the employee matters agreement, is solely covered by the tax matters agreement.

Except as expressly set forth in the separation agreement or in any ancillary agreement, 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 title, free and clear of any security interest, that any necessary consents or governmental approvals are not obtained and that any requirements of laws or judgments are not complied with. In general, neither we nor Resideo will make any representations or warranties regarding any assets or liabilities transferred or assumed, any consents or approvals that may be required in connection with such transfers or assumptions or any other matters.

Information in this information statement with respect to the assets and liabilities of the parties following the separation is presented based on the allocation of such assets and liabilities pursuant to the separation agreement, unless the context otherwise requires. Certain of the liabilities and obligations to be assumed by one party or for which one party will have an indemnification obligation under the separation agreement and the other agreements relating to the separation are, and following the separation may continue to be, the legal or contractual liabilities or obligations of another party. Each such party that continues to be subject to such legal or contractual liability or obligation will rely on the applicable party that assumed the liability or obligation or the applicable party that undertook an indemnification obligation with respect to the liability or obligation, as applicable, under the separation agreement, to satisfy the performance and payment obligations or indemnification obligations with respect to such legal or contractual liability or obligation.

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***Cash Adjustments***

In connection with the Spin-Off, we intend to make a one-time cash dividend of approximately $900 million of the net proceeds of the Financing as partial consideration for the contribution of assets and liabilities to us by Resideo. Separate from this cash payment, the separation agreement will require Resideo, as promptly as practicable following the separation, to calculate the Company's aggregate cash balance as of the time of the separation.

The separation agreement will contain cash adjustment provisions, with payment of such adjustments to be made within 5 business days of the determination of the aggregate cash balance. Pursuant to the adjustment provisions, if our aggregate cash balance at the time of the separation is determined to have been greater than the reference cash balance of $150 million, we will pay Resideo the excess and if our aggregate cash balance at the time of the separation is determined to have been less than the reference cash balance of $150 million, Resideo will pay us the shortfall. For the purpose of these cash adjustment provisions, "cash balance" means cash and cash equivalents as defined in the separation agreement. For the purposes of our unaudited pro forma combined financial statements set forth in this information statement, we have assumed a $150 million reference cash balance.

***Further Assurances; Separation of Guarantees***

To the extent that any transfers of assets or assumptions of liabilities contemplated by the separation agreement have not been consummated on or prior to the date of the distribution, the parties will agree to cooperate with each other to effect such transfers or assumptions while holding such assets or liabilities for the benefit of the appropriate party so that all the benefits and burdens relating to such asset or liability inure to the party entitled to receive or assume such asset or liability. Each party will agree to use reasonable best efforts to take or to cause to be taken all actions, and to do, or to cause to be done, all things reasonably necessary under applicable law or contractual obligations to consummate and make effective the transactions contemplated by the separation agreement and other transaction agreements. Additionally, we and Resideo will use reasonable best efforts (i) to remove us and our subsidiaries as a guarantor of liabilities retained by Resideo and its subsidiaries and (ii) to remove Resideo and its subsidiaries as a guarantor of liabilities to be assumed by us and our subsidiaries.

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***Shared Contracts***

Certain shared contracts are to be assigned or amended to facilitate the separation of our business from Resideo. If such contracts cannot be assigned or amended, the parties are required to take reasonable actions to cause the appropriate party to receive the benefit of the contract for a specified period of time after the separation is complete.

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***Release of Claims and Indemnification***

Except as otherwise provided in the separation agreement or in any ancillary agreement, each party will release and forever discharge the other party and its subsidiaries and affiliates from all pre-separation liabilities. The releases will not extend to obligations or liabilities under any agreements between the parties that remain in effect following the separation pursuant to the separation agreement or any ancillary agreement. These releases will be subject to certain exceptions set forth in the separation agreement, including, but not limited to, liabilities relating to the willful misconduct or fraud of any directors, officers, agents or employees of each party.

The separation agreement will provide for cross-indemnities that, except as otherwise provided in the separation agreement, are principally designed to place financial responsibility for the obligations and liabilities allocated to us under the separation agreement with us and financial responsibility for the obligations and liabilities allocated to Resideo under the separation agreement with Resideo. Specifically, each party will indemnify, defend and hold harmless the other party, its affiliates and subsidiaries and each of its officers, directors, employees and agents for any losses arising out of or due to:

● the liabilities or alleged liabilities the indemnifying party assumed or retained pursuant to the separation agreement;

● the assets the indemnifying party assumed or retained pursuant to the separation agreement;

● the operation of the indemnifying party's business, whether prior to, at or after the distribution; and

● any breach by the indemnifying party of any provision of the separation agreement or any other ancillary agreement unless such other ancillary agreement expressly provides for separate indemnification therein.

Each party's aforementioned indemnification obligations will be uncapped; provided that the amount of each party's indemnification obligations will be subject to reduction by any insurance proceeds (net of premium increases) received by the party being indemnified. The separation agreement will also specify procedures with respect to claims subject to indemnification and related matters. Indemnification with respect to taxes will be governed by the tax matters agreement.

***Legal Matters***

Except as otherwise set forth in the separation agreement or in any ancillary agreement (or as otherwise described above), each party to the separation agreement will assume the liability for, and control of, all pending, threatened and future legal matters related to its own business or its assumed or retained liabilities and will indemnify the other party for any liability arising out of or resulting from such legal matters.

***Dispute Resolution***

If a dispute arises between us and Resideo under the separation agreement, the dispute will be submitted for final and binding arbitration administered in accordance with the Commercial Arbitration Rules and Mediation Procedures of the American Arbitration Association to be decided in accordance with, and as otherwise set forth, in the separation agreement.

***Insurance***

Following the separation, we will be responsible for obtaining and maintaining at our own cost our own insurance coverage. Additionally, with respect to certain claims arising prior to the distribution, we may seek coverage under Resideo's third-party insurance policies to the extent that the terms of such policies provide for such coverage to our business, and subject to the terms and conditions of such policies, including any limits on coverage or scope, any deductibles and other fees and expenses. If we and Resideo jointly make any claim for coverage under Resideo's third-party insurance policies for amounts that have been or may in the future be incurred partially by Resideo and partially by us, any insurance recovery resulting therefrom will first be allocated to reimburse us or Resideo for our respective costs, legal and consulting fees, and other out-of-pocket expenses incurred in pursuing such insurance recovery, with the remaining net proceeds from the insurance recovery to be allocated as between us and Resideo in proportion to the relative losses experienced by each in respect of such claim. We will remain liable for all uninsured, uncovered, unavailable or uncollectible amounts, incurred from and after the separation.

***Term and Termination***

Prior to the distribution, Resideo has the unilateral right to terminate the separation agreement and related agreements. After the distribution, the term of the separation agreement is indefinite and it may only be terminated with the prior written consent of both Resideo and us.

***Separation Costs and Expenses***

All costs and expenses with respect to the separation incurred prior to the separation will be borne and paid by Resideo, except as provided in the separation agreement or in any of the ancillary agreements.

All costs and expenses with respect to the separation incurred after the separation will be borne and paid by us except to the extent such fees and expenses were incurred in connection with services expressly requested by Resideo in writing.

Any costs or expenses incurred in obtaining consents or novation from a third party will be borne by the entity to which such contract is being assigned.

***Treatment of Intercompany Loans and Advances***

Upon completion of the separation other than as contemplated by the separation agreement, all loans and advances between Resideo or any subsidiary of Resideo (other than us and our subsidiaries), on the one hand, and us or any of our subsidiaries, on the other hand, will be terminated.

***Other Matters Governed by the Separation Agreement***

Other matters governed by the separation agreement include confidentiality, access to and provision of records, treatment of outstanding guarantees and similar credit support.

**Commercial Product Purchase Agreement**

We and Resideo will enter into a commercial product purchase agreement, effective upon the distribution, pursuant to which we will purchase certain security and safety products from Resideo for resale through our channel for a period of three years, with a semi-exclusive right to sell certain security products in the United States and Canada (with the exception of certain named distributors). Pricing will be agreed as ordered and in line with typical market prices, except with respect to the security products for which we will be guaranteed a certain fixed price in line with our distribution margins (which fixed price will not impact the price at which customers purchase the product). Pursuant to the commercial product purchase agreement, we will also be obligated to purchase in line with certain minimum commitments based on our sales during calendar year 2026, and the agreement is subject to customary termination rights with the ability to renew without the semi-exclusivity rights.

**Transition Services Agreement**

We and Resideo will enter into a transition services agreement that will be effective upon the distribution, pursuant to which Resideo and its subsidiaries and we and our subsidiaries will provide to each other, for an interim, transitional period, various services on an arm's length basis in order to help ensure an orderly transition following the separation and the distribution. The cost of these services will be negotiated between us and Resideo as set forth in the transition services agreement.

The transition services agreement will terminate on the expiration of the term of the last service provided under it, unless earlier terminated by either party under certain circumstances, including but not limited to, in the event of any uncured material breach by the other party or its applicable affiliates. If no term period is provided for a specified service, then such service is to terminate on the second anniversary of the effective date of the transition services agreement. The recipient of a particular service generally can terminate that service prior to the scheduled expiration date, subject to a minimum notice period equal to 30 days.

We and Resideo have agreed to perform our respective services in a manner that is substantially consistent with that provided immediately prior to the distribution.

The transition services agreement will generally provide that the applicable service recipient indemnifies the applicable service provider for liabilities that such service provider incurs arising from the provision of services other than liabilities arising from such service provider's gross negligence or intentional misconduct, and that the applicable service provider indemnifies the applicable service recipient for liabilities that such service recipient incurs arising from such service provider's gross negligence or intentional misconduct. Subject to certain exceptions, the liabilities of each party providing services under the transition services agreement will generally be limited to the aggregate charges received by the parties in the preceding three months as of the time of calculation. The transition services agreement also will provide that the provider of a service will not be liable to the recipient of such service for any special, indirect, incidental, punitive or consequential or similar damages.

**Tax Matters Agreements**

In connection with the separation, we and Resideo will enter into a tax matters agreement that will govern the parties' respective rights, responsibilities and obligations with respect to taxes, including responsibility for tax liabilities, entitlement to tax refunds and other tax benefits, allocation of tax attributes, preparation and filing of tax returns, control of audits and other tax proceedings and other matters relating to taxes.

In general, we will be responsible for any U.S. federal, state, local or foreign taxes (and any related interest, penalties or audit adjustments) imposed with respect to tax returns that include only us and/or any of our subsidiaries. We will generally be responsible for preparing and filing any such tax returns, and will generally have the authority to control tax contests with respect thereto. Further, but only to the extent such taxes exceed a certain indemnification threshold, we will be responsible for any U.S. federal, state, local or foreign taxes (and any related interest, penalties or audit adjustments) relating to our business that are imposed on Resideo (including as a result of any such taxes imposed on Resideo by Honeywell as a result of the 2018 TMA that are allocated to us under the tax matters agreement), including taxes relating to pre-distribution periods reflected on tax returns that include (i) us and/or any of our subsidiaries and (ii) Resideo and/or any of its subsidiaries.

In addition, the tax matters agreement will impose certain restrictions on us and our subsidiaries that will be designed to preserve the tax-free status of the distribution and certain related transactions, as well as the intended tax treatment of certain transactions entered into pursuant to the internal restructuring. We (and our subsidiaries) will be barred from taking any action, or failing to take any action, if such action or failure to act would adversely affect, or could reasonably be expected to adversely affect, the tax-free status or other intended tax treatment of these transactions. In addition, for the two-year period following the distribution, we (and our subsidiaries) will be subject to specific restrictions on our ability to enter into certain capital-raising, strategic or other corporate transactions, including restrictions on: (i) mergers and other acquisition or sale transactions involving our stock, (ii) any corporate transaction which would cause us to undergo a 50% or greater change in our stock ownership (as determined for purposes of Section 355(e) of the Code), (iii) redemptions or repurchases of our stock, (iv) liquidation transactions, (v) discontinuing the active conduct of our trade or business, (vi) issuance or sale of our stock or other securities (including securities convertible into our stock, but excluding certain compensatory arrangements), (vii) sales of assets outside of the ordinary course of business and (viii) amendments to our certificate of incorporation (or other organizational documents) or other actions affecting the voting rights of our common stock.

The tax matters agreement will provide special rules that allocate tax liabilities in the event the distribution, together with certain related transactions, as well as any transaction entered into pursuant to the Reorganization Transactions that is intended to be tax-free for applicable tax law purposes, is not tax-free (or otherwise fails to qualify for its intended tax treatment). In general, under the tax matters agreement, each party is expected to be responsible for any taxes, whether imposed on us or Resideo, that arise from (1) the failure of the distribution, together with certain related transactions, to qualify for tax-free treatment under the Code or (2) the failure of certain related transactions or the internal restructuring to qualify for their intended tax treatment, in each case, to the extent that the failure to so qualify is attributable to post-distribution actions by such party or transactions with respect to such party's stock, or to a breach of certain representations or covenants made by that party in the tax matters agreement or in any documents relating to the IRS ruling or opinion of outside tax advisors obtained in connection with the distribution, certain related transactions or the internal restructuring.

In addition, effective upon the making of the distribution, we will join the 2018 TMA that Resideo executed with Honeywell on October 19, 2018 in connection with the Resideo Spin-Off and agree to become bound by the terms and conditions thereof as though an original party thereto. The 2018 TMA provides, among other things, for indemnification of Honeywell for any taxes (and reasonable expenses) resulting from the failure of the Resideo Spin-Off and related internal transactions to qualify for their intended tax treatment under U.S. federal, state and local income tax law, as well as foreign tax law, where such taxes result from (a) breaches of covenants and representations made and agreed to in connection with the Resideo Spin-Off, (b) the application of certain provisions of U.S. federal income tax law to these transactions or (c) any other action or omission (other than actions expressly required or permitted by the related transaction agreements) taken by Resideo that gives rise to these taxes.

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**Employee Matters Agreement**

We and Resideo will enter into an employee matters agreement that will govern our and Resideo's compensation and employee benefit obligations with respect to the employees and other service providers of each company, and generally will allocate liabilities and responsibilities relating to employment matters and employee compensation and benefit plans and programs.

***Treatment of Outstanding Resideo Equity Awards***

See "Executive Compensation—Compensation Discussion and Analysis—Treatment of Outstanding Equity Awards Resulting from the Distribution" for disclosure regarding the treatment of outstanding equity awards under the 2018 Stock Incentive Plan of Resideo Technologies, Inc. and its affiliates and the 2018 Stock Plan for Non-Employee Directors of Resideo Technologies, Inc. in connection with the distribution.

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***Treatment of Resideo Benefit Plans***

The employee matters agreement will provide that, following the completion of the distribution, our employees generally will no longer participate in benefit plans sponsored or maintained by Resideo and will commence participation in our benefit plans, which are described in the section called "Executive Compensation."

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***No Hire of Employees***

Subject to customary exceptions, neither we nor Resideo will, without the consent of the other party, hire or attempt to hire an employee employed in an executive or senior management capacity at the other party or its subsidiaries, or a former employee who was employed in such capacity within 6 months of the date of hire or attempted hiring, for 18 months following the distribution.

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***General Matters***

The employee matters agreement also will set forth the general principles relating to employee matters, including with respect to the assignment and transfer of employees, the assumption and retention of liabilities and related assets, workers' compensation, payroll taxes, regulatory filings, leaves of absence, the provision of comparable benefits, employee service credit, the sharing of employee information and the duplication or acceleration of benefits.

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***Term and Termination***

Prior to the distribution, Resideo has the unilateral right to terminate the separation agreement and related agreements, including the employee matters agreement. After the distribution, the term of the employee matters agreement is indefinite and may only be terminated or amended with the prior written consent of both Resideo and us.

**Intellectual Property Matters Agreement**

We and Resideo will enter into an intellectual property matters agreement pursuant to which Resideo will grant to us a non-exclusive, royalty-free, fully paid-up, worldwide, irrevocable, sublicensable license to use certain intellectual property rights retained by Resideo. We will be able to sublicense our rights in connection with activities relating to our and our subsidiaries' business but not for independent use by third parties, and we can transfer such rights in connection with certain future business unit and product line divestments.

We will also grant back to Resideo a non-exclusive, royalty-free, fully paid-up, worldwide, irrevocable, sublicensable (subject to the restrictions below) license to continue to use certain intellectual property rights owned by or transferred to us. Resideo will be able to sublicense its rights in connection with activities relating to Resideo's and its subsidiaries' retained business but not for independent use by third parties. This license-back will permit Resideo to continue to use certain of our intellectual property rights in the conduct of its remaining businesses. We believe that the license-back will have little impact on our businesses because Resideo's use of our intellectual property rights is generally limited to products and services that are not part of our businesses.

The intellectual property matters agreement is intended to provide freedom to operate in the event that any of Resideo's retained intellectual property is used in any of our current businesses, and, as such, applies to all portions of our current businesses. However, we believe there may be relatively little use of such retained intellectual property in our businesses, and as a result, we do not believe that the intellectual property matters agreement has a material impact on any of our businesses.

The term of the intellectual property matters agreement is perpetual.

**Exchange Agreement, Shareholders Agreement and ADI Preferred Stock Exchange**

In connection with the Spin-Off, Resideo will enter into the Exchange Agreement with the Preferred Stockholders providing for the exchange by the Preferred Stockholders of shares of Resideo preferred stock held by them for shares of ADI preferred stock. The ADI preferred stock will be convertible perpetual participating preferred stock of the Company, with an initial conversion price equal to $, and accrue dividends at a rate of 7.00 *%* per annum, compounded quarterly (payable in cash or in kind, as described further below). The aggregate number of shares of Company common stock, into which the ADI preferred stock may be converted will initially be equal to based on the initial conversion price.

The ADI preferred stock will rank senior to the shares of Company common stock with respect to dividend rights and with respect to rights on liquidation, winding-up and dissolution. Holders of shares of ADI preferred stock will be entitled to cumulative dividends which are payable quarterly in arrears, will accrue on a daily basis from the issuance date of such shares and are payable at the Company's option either (i) in cash or (ii) in kind (by adding the dividend to the Accumulated Amount (as defined in the ADI Certificate of Designations) of such shares), at a rate of 7.00% per annum, subject to adjustment as described below and as set forth in the ADI Certificate of Designations. Holders of ADI preferred stock are also entitled to receive certain dividends declared or paid on the Company common stock on an as-converted basis. No dividends will be payable to holders of shares of Company common stock unless the full dividends are paid at the same time to the holders of the ADI preferred stock.

Upon the occurrence of a "Triggering Event" (which shall include, but is not limited to, (i) the Company's failure to pay dividends when required, (ii) the Company's failure to comply with its obligations under the ADI Certificate of Designations to reserve and keep available for issuance the requisite number of shares of Company common stock issuable upon conversion of the ADI preferred stock, (iii) the Company taking specified restricted actions without the consent of a majority of the holders of the ADI preferred stock or (iv) the Company's failure to maintain the listing of the Company common stock on the NYSE or another national securities exchange), the dividend rate will become 10.00% per annum for so long as the Triggering Event remains in effect. At any time during which a Triggering Event is occurring, without the consent of the holders representing at least a majority of the then-issued and outstanding shares of ADI preferred stock, no dividends will be declared or paid or set apart for payment, or other distributions declared or made, upon any junior equity securities, including the Company common stock.

Holders of the ADI preferred stock will have the right, at any time and from time to time (including after any notice of redemption given by the Company), at their option, to convert any or all of their ADI preferred stock, in whole or in part, into fully paid and non-assessable shares of Company common stock at the then-effective conversion price, initially equal to $ and subject to adjustment as set forth in the ADI Certificate of Designations and described below. The number of shares of Company common stock into which a share of ADI preferred stock will be convertible will be determined by dividing the sum of the Accumulated Amount (as defined in the ADI Certificate of Designations) plus any interim accrued and unpaid dividends on such share of ADI preferred stock in effect at the time of conversion, by the conversion price in effect at the time of conversion. Following the expiration of the Lock-Up Period, the Company may, at its option exercised by written notice to the holders of ADI preferred stock within 10 business days following the relevant measurement period, require conversion of all (but not less than all) of the outstanding shares of ADI preferred stock to Company common stock if at any time the Company common stock trading price exceeds 200% of the then-effective conversion price for at least 20 out of 30 trailing trading days, subject to the satisfaction of the Common Stock Liquidity Conditions (as defined in the ADI Certificate of Designations).

The conversion price is subject to customary anti-dilution adjustments, including in the event of any stock split, stock dividend, recapitalization or similar event. Subject to certain limitations, following the expiration of the Lock-Up Period, the Company has the option to redeem the outstanding shares of ADI preferred stock, in whole or in part, for an aggregate redemption price equal to the two times (2X) the sum of the Accumulated Amount (as defined in the ADI Certificate of Designations) plus any interim accrued and unpaid dividends (calculated at 1X instead of 2X) on such share of ADI preferred stock in effect at the time of redemption, subject to the satisfaction of the Common Stock Liquidity Conditions (as defined in the ADI Certificate of Designations), provided that such redemption that is for less than all of the then outstanding shares of ADI preferred stock may not result in the CD&R Group's beneficial ownership of Company common stock (on an as-converted basis) falling below three percent (3.00%) of the Company common stock then outstanding as of such redemption date. In the event of a Change of Control (as defined in the ADI Certificate of Designations), the Company will have the option, pursuant to the terms of the ADI Certificate of Designations, to purchase all (but not less than all) of the outstanding shares of ADI preferred stock at a price per share equal to the 150% of the sum of the Accumulated Amount (as defined in the ADI Certificate of Designations) plus any interim accrued and unpaid dividends (calculated at 100% instead of 150%) on such share of ADI preferred stock in effect at the time of such purchase. Any holder of ADI preferred stock may, prior to any such redemption (including after the Company has given notice of redemption), elect to convert any shares of ADI preferred stock elected to be redeemed by the Company.

Holders of the ADI preferred stock generally will be entitled to vote with the holders of the shares of Company common stock on all matters submitted for a vote of holders of shares of Company common stock (voting together with the holders of shares of Company common stock as one class) and will be entitled to a number of votes equal to the number of votes to which shares of Company common stock issuable upon conversion of such shares of ADI preferred stock would have been entitled (without any limitations based on the Company's authorized but unissued shares of Company common stock) if such shares of Company common stock had been outstanding at the time of the applicable vote and related record date.

Additionally, certain matters will require the approval of the holders of a majority of the outstanding ADI preferred stock, voting as a separate class, including, without limitation, (1) amendments or modifications to the Company's certificate of incorporation, bylaws or the ADI Certificate of Designations that would adversely affect the ADI preferred stock, (2) authorization, creation, increase in the authorized amount or issuance of any class or series of senior or parity equity securities or any security convertible into, or exchangeable or exercisable for, shares of senior or parity equity securities, (3) any increase or decrease in the authorized number of shares of ADI preferred stock or the issuance of additional shares of ADI preferred stock, (4) amendments to the Company's debt agreements that would, among other things, adversely affect the Company's ability to pay dividends in kind on the ADI preferred stock, subject to certain exceptions and (5) adoption of any plan of liquidation, dissolution or winding-up of the Company or filing of any voluntary petition for bankruptcy, receivership or any similar proceeding.

The ADI Certificate of Designations will provide that, upon closing of the Spin-Off, CD&R Holdings (i) may designate two Company directors, for so long as the CD&R Group beneficially owns ADI common stock and ADI preferred stock equal to at least 10% of the outstanding shares of Company common stock, determined on an as-converted basis and calculated in accordance with the ADI Certificate of Designations and (ii) may designate one Company director, for so long as the CD&R Group beneficially owns ADI common stock and ADI preferred stock equal to at least 5.00% but less than 10.00% of the outstanding shares of Company common stock, determined on an as-converted basis and calculated in accordance with the ADI Certificate of Designations.

Pursuant to a Shareholders Agreement (the "Shareholders Agreement") to be entered into with the Preferred Stockholders and CD&R Channel Holdings II, L.P. ("CD&R Holdings II"), for so long as the CD&R Group holds ADI preferred stock (or shares of Company common stock issued upon conversion of the ADI preferred stock) representing at least 25.00% of the shares of ADI preferred stock initially issued to the CD&R Group at closing of the Spin-Off, the CD&R Group will have customary preemptive rights to participate in future equity and equity-linked issuances by the Company up to the extent necessary to maintain its pro rata ownership percentage in the Company, subject to customary exceptions.

The Shareholders Agreement will provide that, until the later to occur of (i) June 14, 2027 and (ii) 12 months after the date on which CD&R Holdings no longer has a designee on, or the right to designate a person to, the Company's board, subject to customary exceptions, the Preferred Stockholders will be subject to customary standstill restrictions set forth in the Shareholders Agreement, including restrictions on acquiring additional shares of Company common stock that would cause the Preferred Stockholders to beneficially own more than 19.9% of the then outstanding Company common stock (assuming the conversion into Company common stock of all shares of ADI preferred stock then held by the Preferred Stockholders).

Under the Shareholders Agreement, subject to certain exceptions, during the Lock-Up Period, the Preferred Stockholders are restricted from transferring to a non-affiliate the ADI preferred stock, any shares of Company common stock received upon conversion thereof or any shares of Company common stock owned by them as of immediately following the consummation of the Spin-Off. Upon transfer of any ADI preferred stock to a person not affiliated with the Preferred Stockholders, such ADI preferred stock must be converted into shares of Company common stock at the time of transfer. The Preferred Stockholders are also restricted at any time from transferring the shares of ADI preferred stock initially issued to the Preferred Stockholders, any shares of Company common stock received upon conversion thereof, any shares of Company common stock owned by them as of immediately following the consummation of the Spin-Off or any shares of capital stock of the Company acquired following the consummation of the Spin-Off to certain prohibited transferees, including persons who would beneficially own, following such transfer, five percent (5.00%) or more of any class or series of equity securities of the Company, certain specified competitors and certain potential activist investors, subject to specified exceptions.

Each of the Exchange Agreement and Shareholders Agreement contains customary representations and warranties and covenants of each party related to breaches of its respective representations and warranties and covenants.

**Registration Rights Agreement**

In connection with the Spin-Off and the ADI preferred stock exchange, upon consummation of the Spin-Off, the Company will enter into a registration rights agreement with CD&R Holdings and CD&R Holdings II, pursuant to which the Company will agree to file a resale shelf registration statement for the benefit of CD&R Holdings and CD&R Holdings II and their permitted transferees, and pursuant to which CD&R Holdings and CD&R Holdings II may, subject to any restrictions on transfer imposed by the Shareholders Agreement described above, request that the Company conduct an underwritten offering of, or register, shares of Company common stock or Company common stock received upon conversion of ADI preferred stock held by CD&R Holdings and eligible for registration thereunder ("registrable securities"). CD&R Holdings and CD&R Holdings II will also have customary piggyback registration rights and may request that the Company include their registrable securities in certain future registration statements or offerings of Company common stock by the Company. These registration rights will terminate when CD&R Holdings and CD&R Holdings II no longer own any registrable securities.

**Procedures for Approval of Related Person Transactions**

The Board is expected to adopt a written policy on related person transactions, under which we will have a written Policy Concerning Related Party Transactions (the "Policy") regarding the review and approval or ratification of transactions between the Company and related parties. The Policy does not apply to the transactions described above. Each of the agreements between us and Resideo and its subsidiaries that have been entered into prior to the distribution, and any transactions contemplated thereby, will be deemed to be approved and not subject to the terms of such Policy.

The Policy applies to any transaction in which ADI or its subsidiaries are a participant, the amount involved exceeds $120,000 and a related party has a direct or indirect material interest. A related party means any director or executive officer of the Company, any nominee for director, any stockholder known to the Company to be the beneficial owner of more than 5% of any class of the Company's voting securities and any immediate family member of any such persons. Under the Policy, reviews will be conducted by management to determine which transactions or relationships should be referred to the Audit Committee for consideration. The Audit Committee will then review the material facts and circumstances regarding a transaction and determine whether or not the transaction is fair and reasonable and consistent with the Policy. Under the Policy, any related party transaction will be required to be submitted for prior approval where reasonably possible or, if not approved in advance, submitted for ratification. The Policy will be in addition to the provisions addressing conflicts of interest in our Code of Business Conduct and any similar policies regarding conflicts of interest adopted by the Board. Our directors, executive officers and all other employees will be expected to comply with the Code of Business Conduct.

The definition of "related person transactions" for purposes of the policy covers the transactions that are required to be disclosed under Item 404(a) of Regulation S-K promulgated under the Exchange Act.

**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

Before the distribution, all of the outstanding shares of our common stock will be owned beneficially and of record by Resideo. The following tables set forth information with respect to the expected beneficial ownership of our common stock by: (1) each person expected to beneficially own more than five percent of our common stock, (2) each expected director and named executive officer and (3) all of our expected directors and executive officers as a group, in each case based upon the distribution ratio. We based the share amounts on each person's beneficial ownership of Resideo common stock as of , 2026, assuming a distribution ratio of share(s) of our common stock for each share of common stock of Resideo. Solely for the purposes of this table, we assumed that of our shares of common stock were issued and outstanding as of , 2026, based on Resideo common stock outstanding as of such date and the distribution ratio. The actual number of shares of our common stock to be outstanding following the distribution will be determined on the record date for the distribution. Except as indicated, the address of each director and executive officer shown in the table below is c/o ADI Global Distribution Inc., 275 Broadhollow Rd Suite 400, Melville, New York, 11747.

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| | | |
|:---|:---|:---|
| **Name and address of Beneficial Owner** | **Amount and <br> Nature of<br> Beneficial <br> Ownership** | **% of <br> Class** |
| **5% Beneficial Owner** |  |  |
| CD&R Channel Holdings II, L.P.<sup>(1)</sup> |  |  |
| BlackRock, Inc.<sup>(2)</sup> |  |  |
| Dimensional Fund Advisors LP<sup>(3)</sup> |  |  |
| **Directors and Named Executive Officers** |  |  |
| <u>Non-Employee Directors</u> |  |  |
| Michael Kaufmann |  |  |
| William Galvin <sup>(4)</sup> |  |  |
| Christine Gorjanc |  |  |
| Cynthia Hostetler<sup>(5)</sup> |  |  |
| Stephen O. LeClair |  |  |
| Nathan Sleeper<sup>(6)</sup> |  |  |
| Brian Walker |  |  |
| <u>Named Executive Officers</u> |  |  |
| Robert Aarnes<sup>(7)</sup> |  |  |
| Michael Carlet<sup>(8)</sup> |  |  |
| Jeannine Lane<sup>(9)</sup> |  |  |
| Alicia Copeland<sup>(10)</sup> |  |  |
| Marco Cardazzi<sup>(11)</sup> |  |  |
| All Directors and Executive Officers as a Group (12 persons) |  |  |

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\* Represents less than 1%.

(1) The amount shown and the following information is derived from a Schedule 13D/A filed November 13, 2025 by CD&R Holdings, CD&R Holdings II, CD&R Investment Associates XII, Ltd. ("CD&R Investment Associates") and CD&R Associates XII, L.P. ("CD&R Associates"), which sets forth their beneficial ownership as of November 13, 2025. According to the Schedule 13D/A, CD&R Holdings II is the beneficial owner of 33,478,322 shares of Resideo common stock (with sole voting power with respect to 0 shares, shared voting power with respect to 33,478,322 shares, sole dispositive power with respect to 0 shares and shared dispositive power with respect to 33,478,322 shares). The shares reported represent (i) 18,517,830 shares of Resideo common stock beneficially owned by CD&R Holdings on an as-converted basis (based on an initial conversion price of Resideo preferred stock of $26.92), which are issuable upon conversion, at the option of the holder, of 498,500 shares of Resideo preferred stock that are held directly by CD&R Holdings, and (ii) 14,960,492 shares of Resideo common stock held directly by CD&R Holdings II. CD&R Holdings II and CD&R Investment Associates may be deemed to beneficially own the shares held by CD&R Holdings because CD&R Holdings is wholly owned by CD&R Holdings II and CD&R Investment Associates is the general partner of CD&R Holdings II, but each of CD&R Holdings II and CD&R Investment Associates expressly disclaims such beneficial ownership. CD&R Investment Associates may be deemed to beneficially own the 14,960,492 shares of Resideo common stock that are held directly by CD&R Holdings II because CD&R Investment Associates is the general partner of CD&R Holdings II, but CD&R Investment Associates expressly disclaims such beneficial ownership. Investment and voting decisions with respect to the securities reported are made by majority vote of an investment committee of limited partners of CD&R Associates that consists of more than ten individuals, each of whom is also an investment professional of CD&R (the "Investment Committee"). All members of the Investment Committee expressly disclaim beneficial ownership of the shares held by CD&R Holdings II. CD&R Investment Associates is managed by a two-person board of directors. Donald J. Gogel and Nathan K. Sleeper, as the directors of CD&R Investment Associates, may be deemed to share beneficial ownership of the reported shares, and they expressly disclaim such beneficial ownership. Taking into account the shares reported, CD&R Holdings beneficially owns 10.9% of the outstanding shares of Resideo common stock and CD&R Holdings II, CD&R Investment Associates and CD&R Associates beneficially own 19.7% of the outstanding shares of Resideo common stock, based on (x) the initial conversion price of Resideo preferred stock of $26.92 and (y) 151,247,101 shares of Resideo common stock outstanding as of February 17, 2026, as reported in Resideo's Form 10-K, filed February 24, 2026. The business address of CD&R Holdings, CD&R Holdings II, CD&R Investment Associates and CD&R Associates is c/o Maples Corporate Services Limited, P.O. Box 309, Ugland House, South Church Street, George Town, Grand Cayman, KY1-1104, Cayman Islands, British West Indies.

(2) The amount shown and the following information is derived from a Schedule 13G/A filed with the SEC on October 17, 2025, according to which BlackRock, Inc. is the beneficial owner of 19,722,433 shares of Resideo common stock (with sole voting power with respect to 19,389,943 shares, shared voting power with respect to 0 shares, sole dispositive power with respect to 19,722,433 shares and shared dispositive power with respect to 0 shares). The business address of BlackRock, Inc. is 50 Hudson Yards, New York, NY 10001.

(3) The amount shown and the following information is derived from a Schedule 13G filed with the SEC on October 31, 2024, according to which Dimensional Fund Advisors LP, in its capacity as investment adviser to certain managed accounts and investment fund vehicles on behalf of investment advisory clients, is the beneficial owner of 7,894,069 shares of Resideo common stock (with sole voting power with respect to 7,640,645 shares, shared voting power with respect to 0 shares, sole dispositive power with respect to 7,894,069 shares and shared dispositive power with respect to 0 shares). The business address of Dimensional Fund Advisors LP is 6300 Bee Cave Road, Building One, Austin, TX 78746.

(4) Based on shares of ADI preferred stock to be held by a trust of which Mr. Galvin is a trustee.

(5) Based on the distribution ratio, consists of shares of ADI common stock to be held by Ms. Hostetler.

(6) Based on the distribution ratio, consists of shares of ADI common stock subject to restricted stock units to be held by Mr. Sleeper that will vest within 60 days of , 2026. Restricted stock units issued to Mr. Sleeper will be held for the benefit of, and Mr. Sleeper will be obligated to transfer the shares of ADI common stock received in settlement thereof to, CD&R, or an affiliate thereof, and Mr. Sleeper therefore disclaims beneficial ownership of such restricted stock units.

(7) Based on the distribution ratio, consists of (i) shares of ADI common stock to be held by Mr. Aarnes and (ii) shares of ADI common stock issuable pursuant to stock options to be held by Mr. Aarnes that will be exercisable upon completion of the separation.

(8) Based on the distribution ratio, consists of (i) shares of ADI common stock to be held by Mr. Carlet and (ii) shares of ADI common stock subject to restricted stock units to be held by Mr. Carlet that will vest within 60 days of , 2026.

(9) Based on the distribution ratio, consists of shares of ADI common stock to be held by Ms. Lane.

(10) Based on the distribution ratio, consists of (i) shares of ADI common stock to be held by Ms. Copeland and (ii) shares of ADI common stock subject to restricted stock units to be held by Ms. Copeland that will vest within 60 days of , 2026.

(11) Based on the distribution ratio, consists of (i) shares of ADI common stock to be held by Mr. Cardazzi and (ii) shares of ADI common stock subject to restricted stock units to be held by Mr. Cardazzi that will vest within 60 days of , 2026.

**THE SEPARATION AND DISTRIBUTION**

**Background**

On July 30, 2025, Resideo announced its intention to separate its ADI Global Distribution business from the remainder of its businesses. On , 2026, the Resideo Board approved the distribution of 100% of the issued and outstanding shares of common stock of ADI, a newly-formed company that will hold the ADI Global Distribution business.

ADI is currently a wholly-owned subsidiary of Resideo, and in connection with the distribution, we expect that Resideo will complete the Reorganization Transactions, as a result of which ADI will become the parent company of the Resideo operations comprising, and the entities that will conduct, the ADI Global Distribution business. The Resideo Board has approved the distribution of 100% of the issued and outstanding shares of our common stock on the basis of share(s) of our common stock for each share of Resideo common stock held as of the close of business on the record date of , 2026.

At Eastern Time, on , 2026, the distribution date, each Resideo common stockholder will receive share(s) of our common stock for each share of Resideo common stock held at the close of business on the record date for the distribution, as described below. Resideo common stockholders will receive cash in lieu of any fractional shares of our common stock that they would have received after application of this ratio. You will not be required to make any payment, surrender or exchange your Resideo common stock or take any other action to receive your shares of our common stock in the distribution. The distribution of our 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 this section under "—Conditions to the Distribution."

**Reasons for the Separation**

In 2025, the Resideo Board conducted a review of Resideo's business portfolio, with the goal of enhancing stockholder value. Recognizing differences in operational and strategic focus across its businesses, the Resideo Board evaluated a range of alternatives for separating the ADI Global Distribution business, including a spin-off, a potential sale transaction and other separation structures, as well as the option of maintaining the existing portfolio and structure.

In conjunction with the consummation of the transaction that resulted in the termination of the Indemnification Agreement, the Resideo Board ultimately concluded that the separation of Resideo's ADI Global Distribution business from the remainder of its businesses would be in the best interests of Resideo and its stockholders and approved the pursuit of the separation. A wide variety of factors were considered by the board of directors in evaluating the separation, including the following potential benefits:

● *Improved Investor Alignment.* The separation is intended to allow investors to separately value each company based on its distinctive investment identity. Our business differs from Resideo's other businesses in important respects. These differences include each respective business' core competencies, business model, strategic focus and capital and R&D expenditure needs. Post-separation, investors will be able to evaluate the merits, performance and prospects of each company on a standalone basis, which we believe will lead to a better appreciation of these characteristics, a more efficient valuation of each respective business and, in turn, more efficient access to the capital markets.

● *Enhanced Strategic and Management Focus, with Improved Operational Agility.* The separation is intended to allow each company to more effectively pursue its distinct operating priorities and strategies with greater focus and flexibility. Dedicated boards and management teams will concentrate on each of the companies' own unique opportunities for long-term growth and profitability, while maintaining a commitment to our culture of continuous improvement.

● *Tailored Capital Structures and Capital Allocation Strategies.* The separation is intended to allow each business to establish its own optimal capital structure and manage its capital allocation strategy with greater agility and focus. Each company will concentrate financial resources solely on its own operations without having to compete with each other for investment capital. This will enable more efficient, company-specific capital allocation based on profitability, cash flow and growth opportunities, driving innovation and improving growth and returns.

● *Independent Equity Structures and Greater Access to Unique Strategic Opportunities.* The separation is intended to create independent equity structures for Resideo and ADI that are aligned with each company's respective industry and provide each with an enhanced ability to capitalize on unique growth opportunities. In addition, each company will be able to directly access the capital markets and will have more flexibility to pursue growth through selective M&A opportunities that are more closely aligned with each company's core strategy.

● *Enhanced Talent Management, Recruitment and Retention and Alignment of Management Incentives and Performance*. The separation is intended to permit each company to more effectively attract, retain and motivate talent, and to offer stock-based compensation that is more closely aligned to its business model and growth strategy.

The Resideo Board also considered the following potentially negative factors in evaluating the separation:

● *Loss of Joint Purchasing Power and Increased Costs.* As a current part of Resideo, the ADI Global Distribution business benefits from Resideo's size and purchasing power in procuring certain goods, services and technologies. After the separation, as a separate, independent entity, ADI may be unable to obtain these goods, services and technologies at prices or on terms as favorable as those Resideo obtained prior to the separation. We may also incur costs for certain functions previously performed by Resideo, such as accounting, tax, legal, human resources and other general administrative functions, that are higher than the amounts reflected in our historical combined financial statements, which could cause our profitability to decrease.

● *Disruptions to the Business as a Result of the Separation.* The actions required to separate our and Resideo's respective businesses could disrupt our and Resideo's operations prior to and after the separation.

● *Increased Significance of Certain Costs and Liabilities.* Certain costs and liabilities that were otherwise less significant to Resideo as a whole will be more significant for us and Resideo after the separation as stand-alone companies.

● *One-time Costs of the Separation.* We (and prior to the separation, Resideo) will incur costs in connection with the transition to being a stand-alone public company that may include accounting, tax, legal and other professional services costs, recruiting and relocation costs associated with hiring or reassigning our personnel and costs to separate information systems.

● *Risk of Failure to Realize Anticipated Benefits of the Separation.* We may not achieve the anticipated benefits of the separation for a variety of reasons, including, among others, that: (i) the separation will require significant amounts of management's time and effort, which may divert management's attention from operating and growing our businesses; and (ii) following the separation, we may be more susceptible to market fluctuations, and other events may be more disadvantageous for us than if we were still part of Resideo, because our businesses will be less diversified than Resideo's businesses prior to the separation.

● *Limitations on Strategic Transactions*. Under the terms of the tax matters agreement that we will enter into with Resideo, for a period of two (2) years following the date of the distribution, we will be restricted from taking certain actions that could cause the distribution or certain related transactions (including certain transactions undertaken as part of the Reorganization Transactions) to fail to qualify as tax-free for U.S. federal income tax purposes or other applicable law. These restrictions may limit our ability to pursue certain strategic transactions or engage in other transactions that might increase the value of our businesses.

While all of the bullets above are considered to be potentially negative factors to us, only the second, third and fourth bullets above are considered to be potentially negative factors to Resideo.

The Resideo Board concluded that the potential benefits of the separation outweighed these factors.

**Formation of a New Company Prior to the Distribution**

We were incorporated in Delaware on December 10, 2025 for the purpose of holding Resideo's ADI Global Distribution business. As part of the plan to separate these businesses from the remainder of its businesses, in connection with the Reorganization Transactions, Resideo plans to transfer the equity interests of certain entities that operate the ADI Global Distribution business and the assets and liabilities of the ADI Global Distribution business to us, as set forth in the separation agreement.

**Reorganization Transactions**

As part of the separation, and prior to the distribution, Resideo and its subsidiaries expect to complete an internal reorganization in order to transfer to ADI the ADI Global Distribution business that it will hold following the separation (the "Reorganization Transactions"). Among other things, the Reorganization Transactions are expected to result in ADI owning, directly or indirectly, the operations comprising, and the entities that conduct, the ADI Global Distribution business.

The Reorganization Transactions are expected to include various restructuring transactions pursuant to which (i) the operations, assets and liabilities of Resideo and its subsidiaries used to conduct the ADI Global Distribution business will be separated from the operations, assets and liabilities of Resideo and its subsidiaries used to conduct Resideo's other businesses and (ii) such ADI Global Distribution business' operations, assets and liabilities will be contributed, transferred or otherwise allocated to ADI or one of its direct or indirect subsidiaries. These restructuring transactions may take the form of asset transfers, mergers, demergers, dividends, 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 ADI Global Distribution business in such jurisdictions.

As part of the Reorganization Transactions, Resideo will contribute to ADI certain liabilities and certain assets, including equity interests in entities that are expected to conduct the ADI Global Distribution business.

Following the completion of the Reorganization Transactions and immediately prior to the distribution, ADI will be the parent company of the entities that are expected to conduct the ADI Global Distribution business and Resideo will remain the parent company of the entities that currently conduct all of Resideo's operations except the ADI Global Distribution business.

**When and How You Will Receive the Distribution**

With the assistance of Broadridge, Resideo expects to distribute on a pro rata basis our common stock at , Eastern Time, on , 2026, the distribution date, to all holders of outstanding shares of Resideo common stock as of the close of business on , 2026, the record date for the distribution. Broadridge, which currently serves as the transfer agent and registrar for shares of Resideo common stock, will serve as the settlement and distribution agent in connection with the distribution and the transfer agent and registrar for our common stock.

If you own shares of Resideo common stock as of the close of business on the record date for the distribution, our common stock that you are entitled to receive in the distribution will be issued electronically, as of the distribution date, to you in direct registration form or to your bank or brokerage firm on your behalf. If you are a registered holder, Broadridge will then mail you a direct registration account statement that reflects your shares of our common stock. If you hold your shares through a bank or brokerage firm, your bank or brokerage firm will credit your account for the shares. Direct registration form refers to a method of recording share ownership when no physical share certificates are issued to stockholders, as is the case in the distribution. If you sell shares of Resideo common stock in the "regular-way" market up to and including the distribution date, you will be selling your right to receive shares of our common stock in the distribution.

Commencing on or shortly after the distribution date, if you hold physical share certificates that represent your shares of Resideo 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 our common stock that have been registered in book-entry form in your name.

Most Resideo common stockholders hold their shares of common stock through a bank or brokerage firm. In such cases, the bank or brokerage firm would be 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 shares of Resideo common stock through a bank or brokerage firm, your bank or brokerage firm will credit your account for the shares of our 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.

Holders of Resideo preferred stock will not be entitled by virtue of their Resideo preferred stock to receive shares of our common stock in the Spin-Off and instead will exchange a portion of the Resideo preferred stock they currently hold for shares of ADI preferred stock. In connection with the Spin-Off, we expect certain terms of the Resideo preferred stock to be amended to be consistent with the terms of the ADI preferred stock described herein. Specifically, we expect the lock-up period applicable to the Resideo preferred stock to be extended to match the Lock-Up Period applicable to the ADI preferred stock, and that Resideo's right, in certain circumstances, to convert or redeem the Resideo preferred stock will not be exercisable until after the expiration of the Lock-Up Period. As a result, following the Spin-Off, shares of ADI preferred stock and Resideo preferred stock are expected to have substantially similar rights, preferences and privileges and qualifications, limitations and restrictions. The amount of Resideo preferred stock exchanged for ADI preferred stock and the conversion prices of the Resideo preferred stock and ADI preferred stock will be based on the relative equity values of Resideo and ADI that are expected immediately following the Spin-Off as determined by the Resideo Board, in consultation with the holders of Resideo preferred stock, in connection with the Resideo Board approving the Spin-Off. As a result, immediately following the Spin-Off, outstanding shares of Resideo preferred stock will remain issued and outstanding, shares of Resideo preferred stock will be cancelled and shares of ADI preferred stock will be issued and outstanding. All accrued and unpaid dividends on Resideo preferred stock will be paid in cash immediately prior to the ADI preferred stock exchange and the aggregate liquidation preference of the preferred stock of Resideo and ADI immediately after the Spin-Off will equal the total liquidation preference (defined as the Accumulated Amount in the Resideo Certificate of Designations) of the Resideo preferred stock immediately prior to the Spin-Off. See "Description of Capital Stock—Preferred Stock" and "Certain Relationships and Related Person Transactions—Exchange Agreement, Shareholders Agreement and ADI Preferred Stock Exchange" for more information on ADI preferred stock.

Immediately following the Spin-Off, the CD&R Group will beneficially own shares of our common stock and ADI preferred stock, which, taken together on an as-converted basis, represent approximately % of our total voting power. As a result, the CD&R Group may have the indirect ability to influence our policies and operations, including through its ability to designate up to two directors to our board of directors, and its interests as a preferred equity holder may diverge from, or even conflict with, the interests of the other holders of our common stock. See "Risk Factors—The CD&R Group will hold a significant equity interest in our business and may exercise influence over us, including through its ability to designate up to two directors to our Board, and its interests as a preferred equity holder may diverge from, or even conflict with, the interests of the other holders of our common stock."

**Transferability of Shares You Receive**

Shares of our 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 the Company which may include certain Company executive officers, directors or principal stockholders. 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 Our Common Stock You Will Receive**

For each share of Resideo common stock that you own at the close of business on , 2026, the record date for the distribution, you will receive share(s) of our common stock on the distribution date.

Resideo will not distribute any fractional shares of our common stock to its stockholders. Instead, Broadridge 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 transfer agent, in its sole discretion, without any influence by Resideo or us, will determine when, how, through which broker-dealer and at what price to sell the whole shares. Any broker-dealer used by the transfer agent will not be an affiliate of either Resideo or us. Neither we nor Resideo will be able to guarantee any 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 of payment made in lieu of such fractional shares.

We estimate that it will take approximately two weeks from the distribution date for the distribution agent to complete the distributions of the aggregate net cash proceeds. If you hold your shares of Resideo common stock through a bank or brokerage firm, your bank or brokerage firm will receive, on your behalf, your pro rata share of the aggregate net cash proceeds of the sales and will electronically credit your account for your share of such proceeds.

**Incurrence of Indebtedness**

In connection with the Spin-Off, we expect to incur indebtedness in an aggregate principal amount of approximately $1.0 billion, which is expected to consist of a term credit facility and a series of debt securities. The terms of such indebtedness are subject to change and will be finalized prior to the closing of the Spin-Off. We intend to make a one-time cash dividend of approximately $900 million of the net proceeds of the Financing as partial consideration for the contribution of assets and liabilities to us by Resideo. We will also use the net proceeds to pay related fees and expenses, with any remainder to be retained for general corporate purposes. We expect that the credit agreement governing the term credit facility described above will also contain a revolving credit facility with commitments for borrowings of up to $500 million, which we expect will be undrawn upon completion of the Spin-Off. We expect that Resideo will use these cash proceeds to repay a portion of its outstanding indebtedness and related fees and expenses and, to the extent any proceeds remain after giving effect to such payments, for general corporate purposes. See "Description of Material Indebtedness," "Capitalization," "Unaudited Pro Forma Combined Financial Statements," and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Capital Resources and Liquidity." The separation agreement will contain cash adjustment provisions pursuant to which, following completion of the cash payment described above and the Spin-Off, either we or Resideo will make a separate cash payment to the other if our aggregate cash balance at the time of the Spin-Off is determined to be greater or less than the reference cash balance of $150 million. See "The Separation Agreement—Cash Adjustments."

**Results of the Distribution**

After our separation from Resideo, we will be an independent, publicly traded company. The actual number of shares to be distributed will be determined at the close of business on , 2026, the record date for the distribution. The distribution will not affect the number of outstanding shares of Resideo common stock or any rights of Resideo common stockholders. Resideo will not distribute any fractional shares of our common stock.

We will enter into a separation agreement and other related agreements with Resideo to effect the separation and provide a framework for our relationship with Resideo after the separation. These agreements provide for the allocation between Resideo and us of the assets, employees, services, liabilities and obligations (including investments, property and employee benefits and tax-related assets and liabilities) of Resideo and its subsidiaries attributable to periods prior to, at and after our separation from Resideo and will govern certain relationships between Resideo and us after the separation. For a more detailed description of these agreements, please refer to the section entitled "Certain Relationships and Related Person Transactions."

**Market for Our Common Stock**

There is currently no public trading market for our common stock. We have applied to list our common stock on the NYSE under the symbol "ADIG." We have not and will not set the initial price of our common stock. The initial price will be established by the public markets.

We cannot predict the price at which our common stock will trade after the distribution. In fact, the combined trading prices of share of Resideo common stock and share(s) of our common stock after the distribution (representing the number of shares of our common stock to be received per one share of Resideo common stock in the distribution) may not equal the "regular-way" trading price of a share of Resideo common stock immediately prior to the distribution. The price at which our common stock trades may fluctuate significantly, particularly until an orderly public market develops. Trading prices for our common stock will be determined in the public markets and may be influenced by many factors. Please refer to the section entitled "Risk Factors—Risks Relating to Our Common Stock and the Securities Market."

**Trading Between the Record Date and the Distribution Date**

We expect a "when-issued" market in our common stock to develop as early as three trading days prior to the distribution date and continue up to and including the distribution date. "When-issued" trading refers to a sale or purchase made conditionally on or before the distribution date because the securities of the spun-off entity have not yet been distributed. If you own shares of Resideo common stock at the close of business on the record date, you will be entitled to receive shares of our common stock in the Spin-Off. You may trade this entitlement to receive shares of our common stock, without the shares of Resideo common stock you own, on the "when-issued" market. We expect "when-issued" trades of our common stock to settle within two trading days after the distribution date. On the first trading day following the distribution date, we expect that "when-issued" trading of our common stock will end and "regular-way" trading will begin.

We also anticipate that, as early as three trading days prior to the distribution date and continuing up to and including the distribution date, there will be two markets in Resideo common stock: a "regular-way" market and an "ex-distribution" market. Shares of Resideo common stock that trade on the regular-way market will trade with an entitlement to receive shares of our common stock in the Spin-Off. Shares that trade on the ex-distribution market will trade without an entitlement to receive shares of our common stock in the Spin-Off. Therefore, if you sell shares of Resideo common stock in the regular-way market up to and including the distribution date, you will be selling your right to receive shares of our common stock in the Spin-Off. However, if you own shares of Resideo common stock at the close of business on the record date and sell shares of Resideo common stock on the ex-distribution market up to and including the distribution date, you will still receive the shares of our common stock that you would otherwise be entitled to receive in the Spin-Off.

If "when-issued" trading occurs, the listing for our common stock is expected to be under a trading symbol different from our regular-way trading symbol. We will announce our "when-issued" trading symbol when and if it becomes available. If the Spin-Off does not occur, all "when-issued" trading will be null and void.

**Conditions to the Distribution**

The distribution will be effective at Eastern Time, on , 2026, the distribution date, provided that the following conditions will have been satisfied (or waived by Resideo in its sole and absolute discretion), including:

● the Resideo Board shall have approved the Spin-Off and not withdrawn such approval, and shall have declared the dividend of our common stock to Resideo common stockholders;

● the transfer of assets and liabilities to us in accordance with the separation agreement will have been completed, other than any assets and liabilities intended to transfer after the distribution pursuant to the separation agreement;

● the receipt by Resideo and continuing validity of a private letter ruling from the IRS and/or an opinion of its outside tax advisors, in each case, satisfactory to the Resideo Board, regarding the qualification of the distribution, together with certain related transactions, as a "reorganization" within the meaning of Sections 368(a)(1)(D) and 355 of the Code, and which ruling and/or opinion, as applicable, shall not have been withdrawn, rescinded or modified in any material respect;

● the SEC will have declared effective the registration statement on Form 10 of which this information statement forms a part, no stop order suspending the effectiveness of the registration statement will be in effect, no proceedings for such purpose will be pending before or threatened by the SEC and this information statement will have been made available to Resideo common stockholders;

● all registrations, consents and filings required under the securities or blue sky laws of states or other political subdivisions of the United States or of other foreign jurisdictions in connection with the separation will have been received or made;

● the agreements relating to the separation will have been duly executed and delivered by the parties;

● no order, injunction or decree issued by any court of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the separation, the distribution or any of the related transactions will be in effect;

● the shares of our common stock to be distributed will have been accepted for listing on the NYSE, subject to official notice of distribution;

● the transactions contemplated by the Exchange Agreement will have been consummated;

● an independent appraisal firm shall have delivered a solvency opinion relating to Resideo and ADI;

● the Financing described under the section entitled "Description of Material Indebtedness" will have been completed; and

● no other event or development will have occurred or exist that, in the judgment of Resideo's board of directors, in its sole and absolute discretion, makes it inadvisable to effect the separation, the distribution or the other related transactions.

The satisfaction of the foregoing conditions does not create any obligations on Resideo's part to effect the separation, and the Resideo Board has reserved the right, in its sole and absolute discretion, to abandon, modify or change the terms of the separation, including by accelerating or delaying the timing of the consummation of all or part of the separation, at any time prior to the distribution date. To the extent that the Resideo Board determines that any modifications by Resideo materially change the material terms of the distribution, Resideo will notify Resideo common stockholders in a manner reasonably calculated to inform them about the modification as may be required by law.

**MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES**

The following is a discussion of certain material U.S. federal income tax consequences of the distribution to "U.S. holders" (as defined below) of Resideo 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 as of 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 information statement. No assurance can be given that the IRS would not assert, or that a court would not sustain, a position contrary to any of the tax consequences described below.

This discussion applies only to U.S. holders of shares of Resideo 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, will be consummated in accordance with the separation agreement and the other agreements related to the separation and as described in this information statement.

This discussion is for general information purposes only and does not constitute tax advice or an opinion of counsel. This discussion does not address all aspects of U.S. federal income taxation that may be relevant to particular holders of Resideo 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, including, without limitation:

● broker-dealers;

● tax-exempt organizations;

● banks or other financial institutions;

● mutual funds, regulated investment companies or insurance companies;

● certain former U.S. citizens or long-term residents of the United States;

● 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 acquired Resideo common stock upon the exercise of employee stock options or otherwise as compensation;

● holders who hold their Resideo common stock as part of a "hedge," "straddle," "conversion," "synthetic security," "integrated investment," "constructive sale transaction" or other integrated or risk reduction transaction;

● 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 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 with respect to any tax considerations under state, local or non-U.S. 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 five percent or more of the outstanding shares of Resideo common stock.

If a partnership, or any entity or arrangement treated as a partnership for U.S. federal income tax purposes, holds Resideo common stock, the tax treatment of a partner in such partnership will generally depend on the status of the partner and the activities of the partnership. Holders of Resideo common stock that are partnerships and partners in such partnerships should consult their own tax advisors as to the consequences of the distribution.

For purposes of this discussion, a "U.S. holder" is a beneficial owner of Resideo common stock that is, for U.S. federal income tax purposes:

● an individual who is a citizen or a resident of the United States;

● a corporation (or any other entity or arrangement 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 IS A GENERAL DISCUSSION OF MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE DISTRIBUTION UNDER CURRENT LAW AND IS FOR GENERAL INFORMATION PURPOSES ONLY. ALL HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE PARTICULAR TAX CONSEQUENCES OF THE DISTRIBUTION TO THEM, INCLUDING THE APPLICABILITY AND EFFECT OF U.S. FEDERAL, STATE, LOCAL, NON-U.S. AND OTHER TAX LAWS.**

**General**

It is a condition to the distribution that Resideo receive a private letter ruling from the IRS and/or an opinion of its outside tax counsel, in each case, satisfactory to the Resideo Board, regarding the qualification of the distribution, together with certain related transactions, as a "reorganization" within the meaning of Sections 368(a)(1)(D) and 355 of the Code, and which ruling and/or opinion, as applicable, shall not have been withdrawn, rescinded or modified in any material respect. The receipt and continued effectiveness of the IRS private letter ruling and/or the opinion of outside tax counsel, as applicable, is a separate condition to the distribution, which may be waived by the Resideo Board in its sole and absolute discretion. The IRS private letter ruling and/or the opinion of Resideo's outside tax counsel will be based upon and rely on, among other things, various facts and assumptions, as well as certain representations, statements and undertakings of Resideo and ADI, including facts, assumptions, representations, statements and undertakings relating to the past and future conduct of the companies' respective businesses and other matters. If any of these facts, assumptions, representations and statements are or become inaccurate or incomplete, or if any such undertaking is not complied with, Resideo may not be able to rely on the IRS private letter ruling and/or the opinion of Resideo's outside tax counsel, and the conclusions reached therein could be jeopardized.

Notwithstanding Resideo's receipt of the IRS private letter ruling and/or the opinion of its outside tax counsel, the IRS could determine on audit that the distribution or any related transaction is taxable for U.S. federal income tax purposes if it determines that any of the facts, assumptions, representations, statements or undertakings upon which the ruling or the opinion were based are not correct or have been violated, or if it disagrees with any of the conclusions in the opinion, or for other reasons, including as a result of certain changes in the stock ownership of Resideo or ADI after the distribution or other post-distribution actions or transactions. Accordingly, notwithstanding Resideo's receipt of the IRS private letter ruling and/or the opinion of its outside tax counsel, there can be no assurance that the IRS will not assert that the distribution or any of the related transactions does 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 in any such challenge or if the distribution or any related transaction is otherwise determined to be taxable for U.S. federal income tax purposes, Resideo, ADI and/or Resideo's common stockholders could incur significant U.S. federal income tax liabilities. Please refer to "—Material U.S. Federal Income Tax Consequences if the Distribution, Together with Certain Related Transactions, Qualifies as a Transaction That is Generally Tax-Free under Sections 355 and 368(a)(1)(D) of the Code" below.

**Material U.S. Federal Income Tax Consequences if the Distribution, Together with Certain Related Transactions, Qualifies as a Transaction That is Generally Tax-Free under Sections 355 and 368(a)(1)(D) of the Code.**

If the distribution, together with certain related transactions, qualifies 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 U.S. federal income tax consequences of the distribution generally are as follows:

● no gain or loss will be recognized by (and no amount will be includible in the income of) Resideo 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 or with respect to any "excess loss account" or "intercompany transaction" required to be taken into account by Resideo 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 Resideo common stock upon the receipt of ADI common stock in the distribution, except with respect to any cash received in lieu of fractional shares (if any) of ADI common stock (as described below);

● the aggregate tax basis of the Resideo common stock and the ADI common stock received in the distribution (including any fractional share interest in ADI common stock for which cash is received) in the hands of each U.S. holder of Resideo common stock immediately after the distribution will equal the aggregate basis of Resideo common stock held by such U.S. holder immediately before the distribution, allocated between the Resideo common stock and the ADI common stock (including any fractional share interest in ADI 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 ADI common stock received by each U.S. holder of Resideo common stock in the distribution (including any fractional share interest in ADI common stock for which cash is received) will generally include the holding period at the time of the distribution for the Resideo common stock with respect to which the distribution is made.

A U.S. holder who receives cash in lieu of a fractional share of ADI common stock in the distribution will generally be treated as having received such fractional share in the distribution and then 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 Resideo common stock exceeds one year at the time of the distribution.

If a U.S. holder of Resideo common stock holds different blocks of Resideo common stock (generally shares of Resideo 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 ADI common stock received in the distribution in respect of particular blocks of Resideo common stock.

**Material U.S. Federal Income Tax Consequences if the Distribution is Taxable**

As discussed above, notwithstanding receipt by Resideo of the private letter ruling from the IRS and/or the opinion of its outside tax counsel, in each case, regarding the qualification of the distribution, together with certain related transactions, as a "reorganization" within the meaning of Sections 368(a)(1)(D) and 355 of the Code, 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 Resideo, ADI and Resideo common stockholders 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 Resideo or ADI could cause the distribution and certain related transactions to not qualify for tax-free treatment for U.S. federal income tax purposes. Depending on these circumstances, ADI may be required to indemnify Resideo for taxes (and certain related losses) resulting from the distribution and certain related transactions not qualifying as tax-free.

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, in general, for U.S. federal income tax purposes, Resideo would recognize taxable gain as if it had sold the ADI common stock in a taxable sale for its fair market value (unless Resideo and ADI jointly make an election under Section 336(e) of the Code with respect to the distribution, in which case, in general, (1) Resideo would recognize taxable gain as if ADI had sold all of its assets in a taxable sale in exchange for an amount equal to the fair market value of the ADI common stock and the assumption of all of ADI's liabilities and (2) ADI would obtain a related step up in the basis of its assets), and Resideo common stockholders who receive ADI 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, which would generally be taxed as a dividend to the extent of the stockholder's pro rata share of Resideo's current and accumulated earnings and profits, including Resideo's taxable gain, if any, on the distribution, then treated as a non-taxable return of capital to the extent of the stockholder's basis in Resideo common stock and thereafter treated as capital gain from the sale or exchange of Resideo common stock.

Even if the distribution, together with certain related transactions, were to otherwise qualify as a tax-free transaction under Sections 368(a)(1)(D) and 355 of the Code, it may result in taxable gain to Resideo (but not its stockholders) 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% or greater interest (by vote or value) in Resideo or ADI. For this purpose, any acquisitions of Resideo or ADI 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 Resideo or ADI may be able to rebut that presumption depending on the circumstances (including by qualifying for one or more safe harbors under applicable Treasury Regulations).

In connection with the distribution, Resideo and ADI will enter into a tax matters agreement pursuant to which ADI 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 for their intended tax treatment under applicable law, and if such failure were the result of actions taken after the distribution by Resideo or ADI, then the party responsible for such failure will be responsible for all taxes imposed on Resideo or ADI to the extent such taxes result from such actions. However, if such failure was the result of any acquisition of ADI shares, or of certain of ADI's representations, statements or undertakings being incorrect, incomplete or breached, then ADI will generally be responsible for all taxes imposed a result of such acquisition or breach. For a discussion of the tax matters agreement, see "Certain Relationships and Related Person Transactions—Agreements with Resideo" and "Certain Relationships and Related Person Transactions—Tax Matters Agreements." Except for a certain indemnification threshold, ADI's indemnification obligations to Resideo under the tax matters agreement are not expected to be limited in amount or subject to any cap. If ADI is required to pay any taxes or indemnify Resideo and its subsidiaries and officers and directors under the circumstances set forth in the tax matters agreement, ADI may be subject to substantial liabilities.

**Information Reporting and Backup Withholding**

Payments of cash to U.S. holders of Resideo common stock in lieu of fractional shares of ADI common stock (if any) 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 GENERAL DISCUSSION OF MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE DISTRIBUTION UNDER CURRENT LAW. IT IS NOT A COMPLETE ANALYSIS OR DISCUSSION OF ALL POTENTIAL TAX CONSEQUENCES THAT MAY BE IMPORTANT TO PARTICULAR HOLDERS AND IT DOES NOT CONSTITUTE TAX ADVICE. ALL HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE PARTICULAR TAX CONSEQUENCES OF THE DISTRIBUTION TO THEM, INCLUDING THE APPLICABILITY AND EFFECT OF U.S. FEDERAL, STATE, LOCAL, NON-U.S. AND OTHER TAX LAWS.**

**DESCRIPTION OF MATERIAL INDEBTEDNESS**

Prior to or concurrent with the separation, we expect to incur approximately $1.0 billion of indebtedness and obtain commitments for $500 million in the form of a revolving credit facility in connection with the Financing. We intend to make a one-time cash dividend of approximately $900 million to Resideo that will be funded from the net proceeds of the Financing.

ADI Funding is expected to enter into certain senior credit facilities, which we expect will consist of an aggregate principal amount of up to $1.0 billion that will be available through (i) a seven-year secured term loan facility in an initial aggregate principal amount of up to $500 million (the "Term Facility"), and (ii) a five-year revolving credit facility with committed availability of $500 million, which we expect will be undrawn as of the date we complete the Spin-Off (the "Revolving Facility" and, together with the Term Facility, the "Senior Credit Facilities"). We anticipate that the Senior Credit Facilities will contain customary affirmative and negative covenants that, among other things, limit or restrict our and/or our subsidiaries' ability, subject to certain exceptions, to incur liens or indebtedness, to make acquisitions and other investments, to merge or engage in other fundamental changes or sell or otherwise dispose of assets, to make dividends or distributions or to make repayments on certain other debt. We also expect to be required to maintain compliance with a leverage ratio under the Revolving Facility. We also anticipate that the Senior Credit Facilities will contain customary events of default.

ADI Funding is also expected to incur senior unsecured notes with terms to be determined, in an aggregate principal amount of $500 million (the "Senior Notes"). We expect that the Senior Notes will be guaranteed initially by ADI and all wholly-owned material domestic restricted subsidiaries of ADI Funding, subject to customary exclusions. The Senior Notes are expected to have terms customary for senior unsecured notes of this type, including customary events of default.

We intend to use the net proceeds of the Financing, in part, to fund a one-time cash dividend to Resideo as partial consideration for the transfer of the assets and liabilities of Resideo to us and to pay related fees and expenses, with the remaining net proceeds to be held in cash and cash equivalents and for general corporate purposes.

The foregoing summarizes some of the currently expected terms of our Senior Credit Facilities and the Senior Notes. However, the foregoing summary does not purport to be complete, and the terms of the Senior Credit Facilities have not yet been finalized and the offering of our Senior Notes has not yet commenced. There may be changes to the expected size and other terms of the Senior Credit Facilities and the Senior Notes, some of which may be material.

**DESCRIPTION OF CAPITAL STOCK**

 

*In connection with the distribution, we will amend and restate our certificate of incorporation and our bylaws. The following is a description of the material terms of, and is qualified in its entirety by, our certificate of incorporation and bylaws, each of which will be in effect upon the consummation of the distribution, the forms of which are filed as exhibits to this information statement. Because this is only a summary, it may not contain all the information that is important to you.*

**Authorized Capital Stock**

Our authorized capital stock consists of shares of common stock, par value $0.001 per share and shares of preferred stock, par value $0.001 per share, of which shares are designated as Series A Cumulative Convertible Participating Preferred Stock. We will issue shares of ADI preferred stock to Resideo in connection with the Spin-Off, which Resideo will in turn exchange with the Preferred Stockholders pursuant to the Exchange Agreement. The number of authorized shares of either the common stock or preferred stock may be increased or decreased (but not below the number of shares thereof then outstanding) by a vote of the stockholders entitled to vote, voting as a single class, subject to the rights of the holders of ADI preferred stock. The common stock is our only class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended.

**Common Stock**

 ****

***Dividend Rights***

The holders of shares of our common stock are entitled to receive dividends when, as and if declared by our Board at its discretion out of funds legally available for that purpose, subject to applicable law and the preferential rights of any preferred stock, including the ADI preferred stock, that may be outstanding.

 ****

***Voting Rights***

The holders of our common stock and ADI preferred stock (voting together as one class, with the ADI preferred stock voting on as-converted basis) are entitled to one vote for each share held of record on all matters submitted to a vote of the common stockholders. Corporate actions to be taken by vote of the stockholders generally require the vote of holders of a majority in voting power of the shares of capital stock of the Company entitled to vote on the matter and who are present in person or represented by proxy, except as otherwise required by law or provided in our certificate of incorporation or bylaws. Our certificate of incorporation does not provide for cumulative voting by stockholders in the election of directors. Directors are elected by the affirmative vote of the majority of votes cast, except that if the number of nominees exceeds the number of directors to be elected, the directors are elected by a plurality of the votes cast, up to the number of directors to be elected in such meeting. A majority of the votes cast means that the number of shares voted "for" a director must exceed the number of votes cast "against" that director.

 ****

***Liquidation Rights***

Subject to the preferential liquidation rights of any preferred stock that may be outstanding, including the ADI preferred stock, upon our liquidation, dissolution or winding-up, the holders of our common stock will be entitled to share ratably in our assets legally available for distribution to our stockholders.

 ****

***Other Rights***

The holders of our common stock are not entitled to preemptive rights or preferential rights to subscribe for shares of our capital stock or rights to redeem or convert the holders' shares of our common stock.

**Preferred Stock**

Our certificate of incorporation authorizes our Board to designate and issue from time to time one or more series of preferred stock without stockholder approval. Our Board may fix the number of shares constituting each such series and the designation of such series, the voting powers (if any) of the shares of such series, and the preferences and relative, participating, optional and other rights, if any, and any qualifications, limitations or restrictions, of the shares of each such series.

As of , 2026, Resideo had 500,000 outstanding shares of Resideo preferred stock. Holders of Resideo preferred stock will not be entitled by virtue of their Resideo preferred stock to receive shares of our common stock in the Spin-Off and will instead exchange a portion of the Resideo preferred stock they currently hold for shares of ADI preferred stock. In connection with the Spin-Off, we expect certain terms of the Resideo preferred stock to be amended to be consistent with the terms of the ADI preferred stock described herein. Specifically, we expect the lock-up period applicable to the Resideo preferred stock to be extended to match the Lock-Up Period applicable to the ADI preferred stock, and that Resideo's right, in certain circumstances, to convert or redeem the Resideo preferred stock will not be exercisable until after the expiration of the Lock-Up Period. As a result, following the Spin-Off, shares of ADI preferred stock and Resideo preferred stock are expected to have substantially similar rights, preferences and privileges and qualifications, limitations and restrictions. The amount of Resideo preferred stock exchanged for ADI preferred stock and the conversion prices of the Resideo preferred stock and ADI preferred stock will be based on the relative equity values of Resideo and ADI as have been determined by the Resideo Board, in consultation with the holders of Resideo preferred stock. As a result, immediately following the Spin-Off, outstanding shares of Resideo preferred stock will remain issued and outstanding, shares of Resideo preferred stock will be cancelled and shares of ADI preferred stock will be issued and outstanding. All accrued and unpaid dividends on Resideo preferred stock will be paid in cash immediately prior to the ADI preferred stock exchange and the aggregate liquidation preference of the preferred stock of Resideo and ADI immediately after the Spin-Off will equal the total liquidation preference (defined as the Accumulated Amount in the Resideo Certificate of Designations) of the Resideo preferred stock immediately prior to the Spin-Off. The shares of Resideo preferred stock that remain outstanding will continue to have the same rights, preferences and privileges and qualifications, limitations and restrictions set forth in Resideo's public filings with the SEC except as otherwise specified in this information statement.

For more information on the ADI preferred stock, see "Certain Relationships and Related Person Transactions—Exchange Agreement, Shareholders Agreement and ADI Preferred Stock Exchange."

**Anti-Takeover Provisions**

Our certificate of incorporation, our bylaws and the DGCL contain certain provisions that may discourage an unsolicited takeover of the Company or make an unsolicited takeover of the Company more difficult. The following are some of the more significant anti-takeover provisions that are applicable to the Company:

***Charter Documents***

*Classified Board.* Our certificate of incorporation provides that, until our annual stockholder meeting in 2032, our Board will be divided into three classes, with each class consisting, as nearly as may be possible, of one-third of the total number of directors. Beginning with the 2032 annual meeting, all directors will be elected to a term of office that expires at the 2033 annual meeting and thereafter each year for annual terms, and our Board will therefore no longer be divided into three classes.

*Removal.* Subject to the rights of the holders of any outstanding series of preferred stock, our certificate of incorporation provides that (i) until the election of directors at our annual stockholder meeting in 2032, our stockholders may remove directors only for cause and (ii) from and after the election of directors at our annual stockholder meeting in 2032, our stockholders may remove directors with or without cause. Removal requires the affirmative vote of holders of at least a majority of our voting stock entitled generally to vote on the election of directors of the Company.

*Blank-Check Preferred Stock*. Subject to the rights of the holders of any outstanding series of preferred stock, our certificate of incorporation authorizes our Board to designate and issue, without any further vote or action by the stockholders, preferred stock from time to time in one or more series and, with respect to each such series, to fix the number of shares constituting the series and the designation of the series, the voting powers (if any) of the shares of the series, and the preferences and relative, participating, optional and other rights, if any, and any qualifications, limitations or restrictions, of the shares of such series.

 

*No Stockholder Action by Written Consent*. Subject to the rights of the holders of any outstanding series of preferred stock, our certificate of incorporation expressly excludes the right of our stockholders to act by written consent. Stockholder action must take place at an annual meeting or at a special meeting of our stockholders.

*Special Stockholder Meetings*. Our certificate of incorporation and bylaws provide that special meetings of stockholders may be called by (i) the Chairman of our Board, (ii) a majority of our Board or (iii) a stockholder, or a group of stockholders, owning a twenty-five percent (25%) or more "net long position," as defined in the bylaws, of our outstanding stock for at least 30 days, provided that such stockholder(s) satisfy the requirements set forth in the bylaws.

*Requirements for Advance Notification of Stockholder Nominations and Proposals*. Under our bylaws, stockholders of record are able to nominate persons for election to our Board or bring other business constituting a proper matter for stockholder action only by providing proper notice to our secretary. In the case of annual meetings, proper notice must be given, generally between 90 and 120 days prior to the first anniversary of the prior year's annual meeting as first specified in the notice of meeting (without regard to any postponements or adjournments of such meeting after such notice was first sent). In the case of an election of directors to be held at a special meeting, proper notice must be given no earlier than the 90th day prior to the relevant meeting and no later than the later of the 60th day prior to such meeting or the 10th day following the public announcement of the meeting. Our bylaws also specify requirements as to the substance and form of a stockholder's notice.

*No Cumulative Voting.* Our certificate of incorporation does not provide for cumulative voting in the election of directors. Accordingly, each share of our voting stock is entitled to one vote for each director seat to be filled, and stockholders may not aggregate or cumulate votes for a single nominee. The absence of cumulative voting may, under certain circumstances, make it more difficult for a minority stockholder or group of stockholders to elect a director nominee without support from a majority of the voting power entitled to vote in the election of directors.

*Amendments to Certificate of Incorporation and Bylaws*. The DGCL provides that the affirmative vote of holders of a majority of a company's voting stock then outstanding is required to amend the company's certificate of incorporation unless the company's certificate of incorporation provides for a higher threshold, and our certificate of incorporation does not provide for a higher threshold. Our certificate of incorporation provides that our bylaws may be amended by our Board or by the affirmative vote of holders of at least a majority of our voting stock entitled generally to vote in the election of directors of the Company.

***Delaware Takeover Statute***

In general, Section 203 of the DGCL prohibits a Delaware corporation with a class of voting stock listed on a national securities exchange or held of record by 2,000 or more stockholders from engaging in a "business combination" with an "interested stockholder" for a three-year period following the time that this stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner. A "business combination" includes, among other things, a merger, asset or stock sale or other transaction resulting in a financial benefit to the interested stockholder. An "interested stockholder" is a person who, together with affiliates and associates, owns or did own within three years prior to the determination of interested stockholder status, 15% or more of the corporation's voting stock. Under Section 203 of the DGCL, a business combination between a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions:

● Before the stockholder became an interested stockholder, the board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

● Upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding shares owned by persons who are directors and also officers and employee stock plans, in some instances; or

● At or after the time the stockholder became an interested stockholder, the business combination was approved by the board of directors of the corporation and authorized at an annual or special meeting of the stockholders by the affirmative vote of at least two-thirds of the outstanding voting stock which is not owned by the interested stockholder.

The DGCL permits a corporation to opt out of, or choose not to be governed by, its anti-takeover statute by expressly stating so in its original certificate of incorporation (or subsequent amendment to its certificate of incorporation or bylaws approved by its stockholders). The certificate of incorporation does not contain a provision expressly opting out of the application of Section 203 of the DGCL; therefore, the Company is subject to the anti-takeover statute.

In connection with the Exchange Agreement, we have approved the ADI preferred stock exchange and CD&R Holdings as an "interested stockholder" for purposes of Section 203 of the DGCL such that, without limiting the standstill to which CD&R Holdings is subject, Section 203 of the DGCL will not be applicable to any business combination with CD&R Holdings. See "Risk Factors–Risks Relating to Our Common Stock and the Securities Market–The ADI Preferred stock we expect to issue in connection with the Spin-Off will have rights, preferences and privileges that are not held by, and are preferential to, the rights of our common stock and will reduce the relative voting power of holders of our common stock."

**Limitations on Liability, Indemnification of Officers and Directors and Insurance**

Section 145 of the DGCL provides that a corporation may indemnify directors and officers against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with any threatened, pending or completed actions, suits or proceedings in which such person is made a party by reason of such person being or having been a director or officer of the registrant. The DGCL provides that Section 145 is not exclusive of other rights to which those seeking indemnification may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors or otherwise. Our bylaws will provide for indemnification by the Company of its directors and officers to the fullest extent permitted by the DGCL or other applicable law.

Section 102(b)(7) of the DGCL permits a corporation to provide in its certificate of incorporation that a director of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except for liability (i) for any breach of the director's duty of loyalty to the corporation or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) for unlawful payments of dividends or unlawful stock repurchases, redemptions or other distributions, or (iv) for any transaction from which the director derived an improper personal benefit. Our certificate of incorporation will provide that the Company may, through bylaw provisions, agreements with agents or other persons, votes of stockholders or disinterested directors or otherwise provide indemnification rights to the fullest extent permitted by the DGCL or any other law of the State of Delaware.

We expect to maintain standard policies of insurance under which coverage is provided (a) to our directors and officers against loss rising from claims made by reason of breach of duty or other wrongful act, and (b) to the Company with respect to payments which may be made by the Company to such officers and directors pursuant to the above indemnification provision or otherwise as a matter of law.

**Exclusive Forum**

Our certificate of incorporation and bylaws will provide that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the exclusive forum for any current or former stockholder (including a current or former beneficial owner) to bring the following types of actions or proceedings under Delaware statutory or common law: (i) any derivative action, suit or proceeding brought on our behalf; (ii) any action, suit or proceeding asserting a claim that is based upon a violation of a duty owed by any of our current or former directors, officers or stockholders to us or to our stockholders; (iii) any action, suit or proceeding asserting a claim against us, or any current or former director, officer or stockholder arising pursuant to the Delaware General Corporation Law (or any successor provision thereto), our certificate of incorporation or our bylaws (as either may be amended from time to time); (iv) any action, suit or proceeding asserting a claim against us related to or involving the internal affairs doctrine; or (v) any action asserting an "internal corporate claim" as that term is defined in Section 115 of the Delaware General Corporation Law shall be the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have, or declines to accept, jurisdiction, the federal court for the District of Delaware).

To the fullest extent permitted by law, if any action, the subject matter of which is within the scope described above, is filed in a court other than the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have, or declines to accept, jurisdiction, the federal court for the District of Delaware) (a "Foreign Action"), by or on behalf of any current or former stockholder (including a current or former beneficial owner), such stockholder shall be deemed to have consented (x) to the personal jurisdiction of the Court of Chancery (or the federal court for the District of Delaware, as applicable) in connection with any action brought in any such court to enforce the applicable provisions of our certificate of incorporation and bylaws and (y) having service of process made upon such stockholder in any such action by service upon such stockholder's counsel in the Foreign Action as agent for such stockholder. Our certificate of incorporation and bylaws also provide that unless we consent otherwise in writing, the federal district courts of the United States of America will be the exclusive forum for the resolution of any complaint asserting a cause or causes of action arising under the Securities Act.

Although our certificate of incorporation and bylaws contain the choice of forum provision described above, it is possible that a court could find that such a provision is inapplicable for a particular claim or action or that such provision is unenforceable.

This choice of forum provision may limit a stockholder's ability to bring a claim in a judicial forum that the stockholder finds favorable for disputes with us or any of our directors, officers, other employees or stockholders, which may discourage lawsuits with respect to such claims or make such lawsuits more costly for stockholders, although our stockholders will not be deemed to have waived our compliance with federal securities laws and the rules and regulations thereunder.

**Transfer Agent and Registrar**

After the distribution, the transfer agent and registrar for shares of our common stock will be Broadridge Corporate Issuer Solutions, LLC.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the SEC a registration statement on Form 10 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 us and our 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 are not necessarily complete, and you should refer to the exhibits attached to the registration statement for copies of the actual contract or document. The SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov.

As a result of the distribution, we will become subject to the informational requirements of the Exchange Act and will be required to file periodic current reports, proxy statements and other information with the SEC. We intend to furnish our stockholders with annual reports containing financial statements audited by an independent accounting firm.

In addition, following the completion of the distribution, we will make the information filed with or furnished to the SEC available free of charge through our website, *www.adiglobal.com,* as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. The information contained in, or that can be accessed through, our website is not incorporated by reference and is not part of this information statement.

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.

**INDEX TO THE COMBINED FINANCIAL STATEMENTS**

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| | |
|:---|:---|
|  | **Page** |
| **ADI Global Distribution Business of Resideo Technologies Audited Combined Financial Statements** |  |
| [Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)](#a_001) | F-2 |
| [Combined Balance Sheets as of December 31, 2025 and 2024](#a_002) | F-4 |
| [Combined Statements of Operations for the years ended December 31, 2025, 2024 and 2023](#a_003) | F-5 |
| [Combined Statements of Comprehensive (Loss) Income for the years ended December 31, 2025, 2024 and 2023](#a_004) | F-6 |
| [Combined Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023](#a_005) | F-7 |
| [Combined Statements of Changes in Equity for the years ended December 31, 2025, 2024 and 2023](#a_006) | F-8 |
| [Notes to the Combined Financial Statements](#a_007) | F-9 |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the shareholders and the Board of Directors of Resideo Technologies, Inc.

**Opinion on the Financial Statements**

We have audited the accompanying combined balance sheets of ADI Global Distribution (the "Company"), a business of Resideo Technologies, Inc. ("Resideo"), as of December 31, 2025 and 2024, the related combined statements of operations, comprehensive (loss) income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2025, 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, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, 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 financial statements have been derived from the historical accounting records maintained by Resideo as if the operations of the Company had been conducted independently from Resideo and were prepared on a stand-alone basis in accordance with the 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 Matter**

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates 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 does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

 ****

 ****

***Corporate Allocations – Refer to Note 2 and Note 16 to the Financial Statements***

 

*Critical Audit Matter Description*

The Company recorded an allocation of expenses related to certain Resideo corporate functions on the basis of direct usage when identifiable, with the remainder allocated on a pro rata basis using an applicable measure of operating income, headcount, or other allocation methodologies reflecting the utilization of services provided or the benefit received by the Company during the periods presented. Additionally, the balance sheet includes certain assets and liabilities held by Resideo that are specifically identifiable or otherwise attributable to the Company (collectively, the "corporate allocations"). The allocation of these expenses, assets, and liabilities requires significant judgement by the Company's management.

Given the complexity in allocating certain of these expenses, assets, and liabilities and judgements necessary to estimate them, 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 recording of certain corporate allocations included the following, among others:

● We tested the design and implementation of controls over the allocation of expenses, assets, and liabilities related to certain Resideo corporate functions.

● We assessed the reasonableness of management's process for identifying assets, liabilities, and expenses attributable to the Company.

● We assessed the reasonableness of management's methods and assumptions for allocating expenses, assets, and liabilities related to certain Resideo corporate functions.

● We performed detail transaction testing over corporate allocations recorded, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Evaluating
 the completeness of the corporate allocations recorded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o For
 certain of the corporate allocations, testing the source information underlying the determination
 of the allocation and recalculating the allocation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o For
 other corporate allocations, developing an independent expectation of the allocation and
 comparing such expectation to the amount recorded by management.

/s/ DELOITTE & TOUCHE LLP

Charlotte, North Carolina

March 31, 2026

We have served as the Company's auditor since 2025.

**ADI GLOBAL DISTRIBUTION**

**COMBINED BALANCE SHEETS**

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| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| <br>(in millions) | **2025** | **2024** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $124 | $137 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 659 | 608 |
| &nbsp;&nbsp;&nbsp;Inventories, net | 1036 | 900 |
| &nbsp;&nbsp;&nbsp;Other current assets | 154 | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1973 | 1766 |
| Property, plant and equipment, net | 107 | 95 |
| Goodwill | 1066 | 1055 |
| Intangible assets, net | 744 | 810 |
| Operating lease right-of-use assets | 236 | 166 |
| Due from related parties - non-current | 13 | 186 |
| Other assets | 13 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $4152 | $4095 |
| **LIABILITIES AND EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $717 | $656 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 175 | 164 |
| &nbsp;&nbsp;&nbsp;Current portion of obligations payable under Indemnification Agreement |  | 52 |
| &nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 37 | 33 |
| &nbsp;&nbsp;&nbsp;Due to related parties - current | 68 | 189 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 997 | 1094 |
| Long-term debt | 1185 | 475 |
| Non-current portion of operating lease liabilities | 209 | 140 |
| Obligations payable under Indemnification Agreement |  | 218 |
| Deferred tax liabilities | 60 | 64 |
| Other liabilities | 17 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $2468 | $2007 |
| **COMMITMENTS AND CONTINGENCIES (Note 12)** |  |  |
| Equity |  |  |
| &nbsp;&nbsp;&nbsp;Net parent investment | 1726 | 2158 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net | (42) | (70) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | 1684 | 2088 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $4152 | $4095 |

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The accompanying notes are an integral part of these combined financial statements.

**ADI GLOBAL DISTRIBUTION**

**COMBINED STATEMENTS OF OPERATIONS**

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| Net revenue | $4784 | $4197 | $3570 |
| Cost of goods sold | 3719 | 3346 | 2902 |
| &nbsp;&nbsp;&nbsp;Gross profit | 1065 | 851 | 668 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative expenses | 752 | 598 | 454 |
| &nbsp;&nbsp;&nbsp;Intangible asset amortization | 95 | 55 | 13 |
| &nbsp;&nbsp;&nbsp;Transaction related expenses | 16 | 45 |  |
| &nbsp;&nbsp;&nbsp;Restructuring, impairment and extinguishment costs | 9 | 22 | 13 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | 39 | 17 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 911 | 737 | 480 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from operations | 154 | 114 | 188 |
| Indemnification Agreement expense | 364 | 79 | 67 |
| Other (income) expense, net | (2) | 4 | (5) |
| Interest expense | 50 | 39 | 32 |
| Interest income | (8) | (15) | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) income before taxes | (250) | 7 | 112 |
| Provision for income taxes | 11 | 25 | 50 |
| &nbsp;&nbsp;&nbsp;Net (loss) income | $(261) | $(18) | $62 |

---

The accompanying notes are an integral part of these combined financial statements.

**ADI GLOBAL DISTRIBUTION**

**COMBINED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME**

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| Comprehensive (loss) income: |  |  |  |
| &nbsp;&nbsp;&nbsp;Net (loss) income | $(261) | $(18) | $62 |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of tax: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange translation gain (loss) | 30 | (21) | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in fair value of effective cash flow hedges | (2) | (4) | (4) |
| &nbsp;&nbsp;&nbsp;Total other comprehensive income (loss), net of tax | 28 | (25) | 10 |
| Comprehensive (loss) income | $(233) | $(43) | $72 |

---

The accompanying notes are an integral part of these combined financial statements.

**ADI GLOBAL DISTRIBUTION**

**COMBINED STATEMENTS OF CASH FLOWS**

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| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| **Cash Flows From Operating Activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net (loss) income | $(261) | $(18) | $62 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash in operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 115 | 71 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring, impairment and extinguishment costs | 9 | 22 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 25 | 23 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (1) | (14) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use-asset amortization | 37 | 26 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 1 | 4 | 5 |
| &nbsp;&nbsp;&nbsp;Changes in assets and liabilities, net of acquired companies: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | (38) | (32) | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | (119) | (120) | (47) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | (30) | 5 | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 44 | 117 | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | (2) | 12 | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | (33) | (26) | (17) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related parties - current | (4) |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Obligations payable under Indemnification Agreement | (270) | 26 | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | 5 | (11) | (11) |
| &nbsp;&nbsp;&nbsp;Net cash (used in) provided by operating activities | (522) | 85 | 103 |
| **Cash Flows From Investing Activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (54) | (25) | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from loans with related parties | 1 | 123 | 280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans made to related parties | (15) | (216) | (269) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investing activities, net | - | - | 1 |
| &nbsp;&nbsp;&nbsp;Net cash used in investing activities | (68) | (118) | (15) |
| **Cash Flows From Financing Activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in due to related parties related to cash pooling arrangements | 8 | (52) | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net transfers from/(to) parent | 562 | 109 | (86) |
| &nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 570 | 57 | (42) |
| &nbsp;&nbsp;&nbsp;Effect of exchange rate changes on cash and cash equivalents | 7 | (6) | 4 |
| Net (decrease) increase in cash and cash equivalents | (13) | 18 | 50 |
| Cash and cash equivalents at beginning of year | 137 | 119 | 69 |
| Cash and cash equivalents at end of year | $124 | $137 | $119 |

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The accompanying notes are an integral part of these combined financial statements.

**ADI GLOBAL DISTRIBUTION**

**COMBINED STATEMENTS OF CHANGES IN EQUITY**

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| | | | |
|:---|:---|:---|:---|
| (in millions) | **Net Parent<br> Investment** | **Accumulated<br> Other<br> Comprehensive<br> Loss, net** | **Total<br> Equity** |
| **Balance as of January 1, 2023** | $842 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(55) | $787 |
| &nbsp;&nbsp;&nbsp;Net income | 62 |  | 62 |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation gain - net of taxes |  | 14 | 14 |
| &nbsp;&nbsp;&nbsp;Changes in fair value of effective cash flow hedges - net of taxes |  | (4) | (4) |
| &nbsp;&nbsp;&nbsp;Net transfers to Parent | (35) | - | (35) |
| **Balance as of December 31, 2023** | $869 | $(45) | $824 |
| &nbsp;&nbsp;&nbsp;Net loss | (18) |  | (18) |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation (loss) - net of taxes |  | (21) | (21) |
| &nbsp;&nbsp;&nbsp;Changes in fair value of effective cash flow hedges - net of taxes |  | (4) | (4) |
| &nbsp;&nbsp;&nbsp;Net transfers from Parent | 1307 | - | 1307 |
| **Balance as of December 31, 2024** | $2158 | $(70) | $2088 |
| &nbsp;&nbsp;&nbsp;Net loss | (261) |  | (261) |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation gain- net of taxes |  | 30 | 30 |
| &nbsp;&nbsp;&nbsp;Changes in fair value of effective cash flow hedges - net of taxes |  | (2) | (2) |
| &nbsp;&nbsp;&nbsp;Net transfers to Parent | (171) | - | (171) |
| **Balance as of December 31, 2025** | $1726 | $(42) | $1684 |

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The accompanying notes are an integral part of these combined financial statements.

**Note 1. Description of the Business and Basis of Presentation**

***Description of Business***

 **

On July 30, 2025, Resideo Technologies, Inc. ("Resideo" or "Parent") announced its plan to separate its business into two distinct, publicly traded companies. Under the plan, Resideo would execute a spin-off ("Spin-off") to Resideo shareholders of its ADI Global Distribution business ("ADI," the "Company," "we," or "our"). The Spin-off is expected to be completed through a tax-free pro rata distribution of all of the outstanding shares of common stock of ADI to Resideo shareholders. In connection with the Spin-off, Resideo will also enter into an agreement with preferred stockholders to exchange preferred stock of Resideo for shares of ADI preferred stock.

ADI is a leading, global specialty distributor of professionally installed low-voltage products, including security and audio-visual ("AV") solutions, serving commercial and residential markets through an omnichannel go-to-market platform. ADI sells primarily to professional installers, dealers, and integrators. We offer an expansive list of products from leading suppliers across key specialty low-voltage categories. ADI complements supplier products with a suite of exclusive brands and services offerings. ADI Global Distribution is our sole reportable segment based upon the information used by our chief operating decision maker ("CODM") in evaluating the performance of our business and allocating resources and capital.

 **

***Basis of Presentation***

 **

The Company has historically operated as a part of Resideo; consequently, stand-alone financial statements have not historically been prepared. The accompanying Combined Financial Statements have been derived from Resideo's historical accounting records, including the historical cost basis of assets and liabilities comprising the Company, as well as the historical revenues, direct costs, and allocations of indirect costs attributable to the operations of the Company. The Combined Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and the Parent's historical accounting policies. These combined financial statements do not purport to reflect what the financial position, results of operations, comprehensive income or cash flows would have been had the Company operated as a separate, stand-alone entity during the periods presented.

All intercompany transactions within the Company have been eliminated in the Combined Financial Statements. Certain financing transactions with Resideo were deemed to have been settled immediately through net parent investment in the Combined Balance Sheets. Other transactions that were historically cash settled between Resideo and the Company have been included in the Combined Financial Statements as due from related parties or due to related parties, primarily related to cash pooling and intercompany loans. In the Combined Statements of Cash Flows, the cash flows arising from related party loans receivable and payable are reflected in investing activities. The cash flows arising from cash pooling arrangements are reflected in financing activities. Refer to *Note 16. Related Party Transactions* to the Combined Financial Statements.

The Combined Balance Sheets reflect all of the assets and liabilities of the Company that are specifically identifiable or otherwise attributed to the Company, including net parent investment as a component of equity. Net parent investment represents Resideo's historical investment in the Company and includes accumulated net income attributable to the Company, and as well as the net effect of transactions with Resideo and its subsidiaries.

Resideo operates a centralized treasury function domestically and internationally, while also maintaining bank accounts in local jurisdictions separate from these centralized treasury functions. Certain of our cash is transferred to Resideo according to centrally managed cash programs and Resideo funds our operations and investing activities, as needed. Cash and cash equivalents and restricted cash in the Combined Balance Sheets represents cash and cash equivalents and restricted cash held by legal entities of the Company. Some of these legal entities participate in the cash pooling and others maintain bank accounts in local jurisdictions, which operate outside the cash pooling arrangements. This arrangement is not reflective of the manner in which the Company would have been able to finance its operations had it been a stand-alone business separate from Resideo during the periods presented.

Resideo's third-party debt related to Senior Notes and the Term Loan along with the corresponding interest expense and financial statement impacts of interest rate hedges have been allocated to the Company for the periods presented as the Company was jointly and severally liable for such debt. The Company is not a counterparty to the interest rate hedges and therefore, the asset and liability balances associated with the hedges are not included in the Combined Financial Statements. Refer to *Note 9. Long-Term Debt* to the Combined Financial Statements.

The Combined Statements of Operations includes expense allocations for certain corporate expenses provided by Resideo on a centralized basis ("Resideo Corporate Costs"), including, but not limited to corporate executives, finance, legal, audit, mergers and acquisitions, human resources, information technology, insurance, employee benefits, costs associated with the Spin-off and other expenses that are either specifically identifiable or clearly applicable to the Company. These expenses have been allocated to the Company on the basis of direct usage when identifiable, with the remainder allocated on a pro rata basis using an applicable measure of operating income, headcount or other allocation methodologies that are considered to be a reasonable reflection of the utilization of services provided or the benefit received by the Company during the periods presented. However, the Resideo Corporate Costs allocations may not be indicative of the actual expense that would have been incurred had the Company operated as an independent, stand-alone public entity, nor are they indicative of the Company's future expenses. Refer to *Note 16. Related Party Transactions* to the Combined Financial Statements.

**Note 2. Summary of Significant Accounting Policies** 

We consider the following policies to be beneficial in understanding the judgments involved in the preparation of our Combined Financial Statements and the uncertainties that could impact our financial condition, results of operations and cash flows.

***(a) Use of Estimates* -** The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosures of contingent assets and liabilities in the Combined Financial Statements and accompanying notes. Estimates are used for, but not limited to, provisions for expected credit losses and inventory reserves, revenue recognition, accounting for income taxes, accounting for business combinations, valuation of the reporting unit for purposes of assessing goodwill for impairment, valuation of long-lived asset groups for impairment testing, the useful lives of long-lived assets, accruals for employee benefits, stock-based compensation, warranties, allocation methodology for third-party debt and the Indemnification Agreement obligation, as defined below, and certain contingencies. We base our estimates on historical experience, market participant fair value considerations, projected future cash flows, and various other factors that are believed to be reasonable under the circumstances. Actual future results could differ materially from those estimates.

***(b) Business Combinations* -** Our acquisitions are accounted for under Accounting Standards Codification "ASC" 805, Business Combinations. Accordingly, the assets and liabilities of acquired companies are included in the Combined Balance Sheets from the acquisition date, adjusted to reflect their fair value. Intangible assets are measured and recognized at fair value and amortized over their estimated useful lives. We recognize goodwill equal to the difference between the purchase price and the fair value of identifiable assets and liabilities. Acquisition-related costs are recognized as incurred.

We estimate the fair value of acquired assets and liabilities as of the acquisition date utilizing either a cost or income approach. Determining the fair value of acquired intangible assets involves significant estimates and assumptions, including, but not limited to, forecasted revenue growth rates, customer attrition rates, market-participant discount rates, assumed royalty rates, and income tax rates. The valuation of tangible and intangible assets and liabilities resulting from an acquisition is subject to management review and may change materially between the preliminary allocation and end of the purchase price allocation period, which is a maximum of one year.

Customer relationships are valued using the multi-period excess earnings method. The multi-period excess earnings method estimates the discounted net earnings attributable to the customer relationships that are acquired after considering items, such as possible customer attrition. Estimated useful lives and the length and trend of the projected cash flow period are determined based on the expected attrition of the customer relationships, which is based on our historical experience and future expectations for renewing and extending similar customer relationships.

Technology and trade names are valued using the relief from royalty method to estimate the cost savings that will accrue to the Company, which would require royalty payments or license fees on revenue earned by using the asset. The useful lives of the assets are determined based on management's estimate of the period of time the technology or name will be in use.

***(c) Cash, Cash Equivalents and Restricted Cash*** - Cash and cash equivalents may consist of cash on hand, money market instruments, time deposits, and highly liquid investments. All highly liquid investments with original maturities of three months or less are considered cash equivalents. Cash and cash equivalents that are restricted as to the withdrawal or use under terms of certain contractual agreements are recorded in other current assets on the Combined Balance Sheets and are not material. Cash, cash equivalents, and restricted cash are carried at cost, which approximates fair value. The cash reflected on the Combined Balance Sheets represents cash accounts legally owned by the Company's subsidiaries and comprises both (a) bank accounts held by local jurisdictions that do not participate in centralized cash pooling arrangements as well as (b) bank accounts that participate in centralized cash pooling arrangements and are owned by the Company's subsidiaries.

***(d) Accounts Receivable, net of Allowance for Credit Losses -*** Accounts receivable are recorded at the invoiced amount, presented net of allowance for credit losses and do not bear interest. We review the adequacy of the allowance for credit losses on an ongoing basis using historical collection trends and aging of receivables. Management also periodically evaluates individual customers' financial condition, credit history, and the current economic conditions to make adjustments to the allowance when it is considered necessary. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Allowance for credit losses was immaterial as of December 31, 2025 and 2024.

***(e) Concentration of Credit Risk*** - Credit risk represents the loss that would be recognized at the reporting date if counterparties failed to perform as contracted. We continually monitor the creditworthiness of our customers to which we grant credit terms in the normal course of business. The terms and conditions of credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. Management does not believe we are exposed to any significant concentrations of credit risk that arise from cash and cash equivalent investments or accounts receivable.

***(f) Inventories* -** Inventories are stated at the lower of cost or net realizable value with cost being determined using the moving-average method. Inventory reserves are maintained for obsolete and surplus items.

The following table summarizes the details of our inventories, net:

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| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| <br>(in millions) | **2025** | **2024** |
| Raw materials | $4 | $7 |
| Finished products | 1032 | 893 |
| Total inventories, net | $1036 | $900 |

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***(g) Property, Plant and Equipment*** - Property, plant and equipment are stated at cost, less accumulated depreciation. For financial reporting purposes, the straight-line method of depreciation is used over the estimated useful lives. Leasehold improvements are capitalized and amortized using the straight-line method over the shorter of their estimated useful lives or the term of the underlying lease. Depreciation is recognized in cost of sales and selling, general and administrative expenses based on the nature and use of the underlying assets.

The following table summarizes the details of our property, plant and equipment, including useful lives:

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| | | | |
|:---|:---|:---|:---|
| | **December 31,** | **December 31,** | |
| <br>(in millions) | **2025** | **2024** | <br>**Useful Lives** |
| Machinery and equipment | $58 | $51 | 3-16 years |
| Building improvements | 121 | 116 | 5-10 years |
| Construction in progress | 28 | 12 | NA |
| Gross property, plant and equipment | 207 | 179 |  |
| Accumulated depreciation | (100) | (84) |  |
| Total property, plant and equipment, net | $107 | $95 |  |

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NA = Not applicable; assets categorized as construction in progress are not depreciated.

Depreciation expense was $21 million, $16 million and $9 million for the years ended December 31, 2025, 2024 and 2023, respectively. Capital expenditures in accounts payable were $7 million, $5 million and $2 million for the years ended December 31, 2025, 2024 and 2023, respectively.

***(h) Impairment of Long-Lived Assets*** - We assess the recoverability of the carrying amount of property, plant and equipment if events or changes in circumstances indicate that the carrying amount of the related group of assets may not be recoverable. We perform an impairment test primarily utilizing the replacement cost method (a Level 3 valuation method) for the fair value of property, plant and equipment. If the expected undiscounted cash flows are less than the carrying amount of the asset an impairment loss is recognized as the amount by which the carrying amount of the asset exceeds its fair value.

***(i) Goodwill and Intangible Assets*** - We review the carrying values of goodwill whenever events or changes in circumstances indicate that such carrying values may not be recoverable as well as annually, on the first day of the fourth quarter. The fair values calculated for the goodwill impairment test uses the market approach in combination with the income approach. The fair value is a Level 3 valuation based on certain unobservable inputs including estimated future cash flows and discount rates aligned with market-based assumptions that would be utilized by market participants in valuing these assets or prices of similar assets. If the carrying value of a reporting unit exceeds its fair value, we record a goodwill impairment loss as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Refer to *Note 7. Goodwill and Other Intangible Assets, net* to the Combined Financial Statements.

For definite-lived intangible assets, cost is generally amortized on a straight-line basis over the asset's estimated economic life. Definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. In these circumstances, they are tested for impairment based on undiscounted cash flows and, if impaired, written down to estimated fair value based on either discounted cash flows or appraised values. See *Note 7. Goodwill and Other Intangible Assets, net* to the Combined Financial Statements for further information.

***(j) Restructuring*** - We enter into various restructuring initiatives, optimization projects, strategic transactions, and other business activities that may include the recognition of exit or disposal costs. Exit or disposal costs are typically costs of termination benefits, such as severance, and costs associated with the closure or consolidation of operating facilities. Impairment of property and equipment and other current or long-term assets as a result of a restructuring initiative is recognized as a reduction of the appropriate asset. Refer to *Note 5. Restructuring* to the Combined Financial Statements.

***(k) Warranties and Guarantees*** - Expected warranty costs for products sold are recognized based on an estimate of the amount that will eventually be required to settle such obligations. These accruals are based on factors such as historical experience, warranty period, and various other considerations. Costs of product recalls, which may include the cost of replacing the product as well as the customer's cost of the recall, including labor to remove and replace the recalled part, are accrued as part of the warranty accrual when an obligation becomes probable and can be reasonably estimated. We periodically adjust these provisions to reflect actual experience and other facts and circumstances that impact the status of existing claims. Refer to *Note 12. Commitments and Contingencies* to the Combined Financial Statements.

***(l) Leases*** - Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from leases. An incremental borrowing rate is used to calculate the present value of the remaining lease payments.

Each contract is reviewed at inception to determine if it contains a lease and whether the lease qualifies as an operating or financing lease. For short-term leases (leases with a term of one year or less), right-of-use assets or lease liabilities are not recognized in the Combined Balance Sheets. Operating leases are expensed on a straight-line basis over the term of the lease. In determining the lease term, we consider the probability of exercising renewal or early termination options. In addition to the monthly base rent, we are often charged separately for common area maintenance, utilities, and taxes, which are considered non-lease components. These non-lease component payments are expensed as incurred and are not included in operating lease assets or liabilities.

Right-of-use assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable in accordance with our long-lived asset impairment assessment policy. We perform an impairment test primarily utilizing the income method to estimate the fair value of right-of-use assets, which incorporates Level 3 inputs such as internal business plans, real estate market capitalization and rental rates, and discount rates. Refer to *Note 8. Leases* to the Combined Financial Statements.

 ****

***(m) Revenue Recognition*** - We enter into contracts that pertain to products, which are accounted for as separate performance obligations and are typically one year or less in duration. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For product sales, typically each product sold to a customer represents a distinct performance obligation. Revenue is measured as the amount of consideration expected to be received in exchange for our products. We recognize the majority of our revenue from performance obligations that are satisfied at a point in time, generally when the product has shipped from our facility and control has transferred to the customer. For certain products, it is industry practice that customers take title to products upon delivery, at which time revenue is then recognized. For contracts with multiple performance obligations, the Company allocates the contract's transaction price to each performance obligation based on the relative stand-alone selling price ("SSP"). Judgment is required to determine the SSP for each distinct performance obligation that is not sold separately. In instances where SSP is not directly observable, the primary method used to estimate the SSP is the expected cost plus an estimated-margin approach. For services, revenue is recognized ratably over the contract period in an amount that reflects the consideration expected to be received in exchange for those services as the customer receives such services on a consistent basis throughout the contract period. Allowances for cash discounts, volume rebates, and other customer incentive programs, as well as gross customer returns, among others, are recorded as a reduction of sales.

Revenue is adjusted for variable consideration, which includes customer volume rebates. We measure variable consideration by estimating expected outcomes using analysis and inputs based upon anticipated performance, historical data, and current and forecasted information. Customer returns are recorded as a reduction to sales on an actual basis throughout the year and also include an estimate at the end of each reporting period for future customer returns related to sales recorded prior to the end of the period. We generally estimate customer returns based upon the time lag that historically occurs between the sale date and the return date, while also factoring in any new business conditions that might impact the historical analysis such as new product introduction. Measurement of variable consideration is reviewed by management periodically and revenue is adjusted accordingly. We do not have significant financing components. Sales, use, and value added taxes collected and remitted to various government authorities are not recognized as revenue and are reported on a net basis. Shipping and handling fees billed to customers are included in revenue. Refer to *Note 4. Revenue Recognition* to the Combined Financial Statements.

***(n) Research and Development*** - We conduct research and development activities, which consist primarily of the development of new products and solutions as well as enhancements and improvements to existing products that substantially change the product. Research and development costs primarily relate to employee compensation and consulting fees, which are expensed as incurred.

***(o) Defined Contribution Plans*** *-* Certain eligible employees of the Company participate in the various Parent sponsored defined contribution plans. These plans have various terms depending on the country of employment. For the years ended December 31, 2025, 2024 and 2023, we recognized compensation expense related to the defined contribution plans of $9 million, $10 million and $7 million, respectively.

***(p) Stock-Based Compensation Plans*** - The principal awards issued under our Parent's stock-based compensation plans, which are described in *Note 6. Stock-Based Compensation Plans*, are restricted stock units ("RSUs"), performance stock units ("PSUs") and stock option awards. The cost for such awards is measured at the grant date based on the fair value of the award. Some awards are issued with a market condition, which are valued on the grant date utilizing a Monte Carlo simulation model. Stock options are valued on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model and the Monte Carlo simulation model require estimates of future stock price volatility, expected term, risk-free interest rate, and forfeitures.

For all stock-based compensation, the fair value of the award is recognized as expense over the requisite service period (generally the vesting period of the equity award) and is included in either selling, general and administrative expenses or restructuring, impairment and extinguishment costs in the Combined Statements of Operations depending on whether the expense relates to our restructuring programs. Our time-based restricted stock awards are typically subject to graded vesting over a service period, while our performance-or market-based awards are typically subject to cliff vesting at the end of the service period.

***(q) Pension*** - A number of the Company's employees participate in defined benefit pension plans administered and sponsored by the Parent and the Company. The participation of the Company's employees in these plans is reflected in the Combined Financial Statements under the multi-employer approach with a proportionate allocation of net periodic benefit costs associated with the Company recorded in the Combined Statement of Operations. For the years ended December 31, 2025, 2024 and 2023, the associated costs were immaterial. The allocated service cost related to these plans is recognized in selling, general and administrative expenses. The allocated interest costs and allocated expected return on plan assets related to these plans are recognized in other (income) expense, net in the Combined Statements of Operations.

Certain plans sponsored by the Parent are only comprised of the Company's employees. The assets, liabilities and associated costs of the defined benefit plans in which only the Company's employees participate are fully reflected in the Combined Financial Statements. As of December 31, 2025 and 2024, liabilities related to these plans were immaterial and recognized in other liabilities in the Combined Balance Sheets. Pension related assets and service costs were immaterial. The service cost related to these plans is recognized in selling, general and administrative expenses. The interest costs and expected return on plan assets related to these plans are recognized in other (income) expense, net in the Combined Statements of Operations.

***(r) Fair Value Accounting*** - We classify and disclose assets and liabilities that are carried at fair value in one of the following three categories:

Level 1- quoted market prices in active markets for identical assets and liabilities

Level 2 - observable market-based inputs or unobservable inputs that are corroborated by market data

Level 3 - unobservable inputs that are not corroborated by market data

Financial and non-financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

We conduct business on a multinational basis in a wide variety of foreign currencies. We are exposed to market risks from changes in currency exchange rates. These exposures may impact future earnings and/or operating cash flows. The exposure to market risk for changes in foreign currency exchange rates arises from international trade transactions, foreign currency denominated monetary assets and liabilities, and international financing activities between subsidiaries. We rely on natural offsets to address these market risk exposures. As of December 31, 2025 and 2024, we had no foreign exchange forward or option hedging contracts.

The carrying amounts of cash and cash equivalents, accounts receivable, other current assets, accounts payable, and accrued liabilities approximate fair value because of their short-term maturities.

***(s) Foreign Currency Translation and Remeasurement*** - Assets and liabilities of operations outside the U.S. with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Revenue, 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, net. Foreign currency remeasurement and transaction gains and losses are included in other (income) expense, net in the Combined Statements of Operations.

***(t) Advertising Costs -*** Advertising costs are expensed as incurred. For the years ended December 31, 2025, 2024 and 2023, advertising costs totaled $13 million, $10 million and $6 million, respectively, and are included in selling, general and administrative expenses.

***(u) Debt and Debt Issuance Costs*** *-* Debt is recorded at initial fair value, which reflects the proceeds received, net of debt issuance costs. Debt is subsequently stated at amortized cost. Debt issuance costs related to a recognized debt liability are presented in the Combined Balance Sheets as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. The Parent's third-party long-term debt and the related interest expense have been allocated to the Company for the periods presented as the Company was jointly and severally liable for such debt. Refer to *Note 9. Long-Term Debt* to the Combined Financial Statements for further details.

***(v) Indemnification Agreement -*** Our Parent separated from Honeywell International Inc. ("Honeywell") in 2018, becoming an independently traded public company as a result of a pro rata distribution of our Parent's common stock to the stockholders of Honeywell ("the Parent Spin-Off"). In connection with the Parent Spin-Off from Honeywell, our Parent entered into an Indemnification and Reimbursement Agreement (the "Indemnification Agreement") pursuant to which our Parent had an obligation to make cash payments to Honeywell. As the Company is jointly and severally liable for the obligations under the Parent's agreement with Honeywell, the expense and liability have been allocated for the periods.

On July 30, 2025, our Parent entered into a definitive agreement with Honeywell to terminate the Indemnification Agreement. As a result, our Parent is no longer required to make any further payments to Honeywell under the Indemnification Agreement. Refer to *Note 10. Indemnification Agreement* to the Combined Financial Statements for further details.

 ****

***(w) Interest Expense and Income*** - The Company presents interest expense and interest income separately within the Combined Statements of Operations. Interest expense and interest income arise from the Company's treasury activities, including related party transactions with our Parent.

Our Parent's interest rate derivative agreements are designated as cash flow hedges with hedge effectiveness assessed at inception and quarterly thereafter. As the Company is jointly and severally liable for a portion of the Parent's debt, an allocated portion of our Parent's unrealized gains or losses on the related swaps and interest rate hedges were included within the accumulated other comprehensive loss, net for all periods presented. Refer to *Note 17. Interest Expense and Interest Income* for additional information.

***(x) Net Parent Investment -*** The Company's equity in the Combined Balance Sheets represents the Parent's net investment in the Company and is presented as net parent investment. The Combined Statements of Changes in Equity include net cash transfers and intercompany receivables and payables between the Company and other Parent affiliates. Net parent investment also includes assets and liabilities that were historically held at the Parent level but are specifically attributable to the Company. Refer to *Note 16. Related Party Transactions* for additional information.

***(y) Income Taxes -*** The Company's operations have historically been included in the Parent's combined U.S. and non-U.S. income tax returns in most locations. The income tax payables and receivables reflected in the financial statements have been recorded consistently with the stand-alone Company who will retain the income tax payables and receivables on a go forward basis.

Income tax expense included in the Combined Financial Statements has been calculated following the separate return method, which applies ASC 740, Income Taxes, as if the Company was a stand-alone enterprise and a separate taxpayer for the periods presented. The calculation of income taxes on a separate return basis requires considerable judgment and the use of both estimates and allocations that affect the calculation of certain tax liabilities and the determination of the recoverability of certain deferred tax assets, which arise from temporary differences between the tax and financial statement recognition of revenue and expenses. As a result, the Company's deferred income tax rate and deferred tax balances may differ materially from those in Parent's historical results.

The provision for income taxes is determined using the asset and liability approach of ASC 740. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes result from differences between the financial statement and tax basis of the Company's assets and liabilities and are measured using enacted rates in effect for the year in which the temporary differences are expected to be recovered or settled. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The tax carryforwards reflected in the Company's Combined Financial Statements have been recorded based on the activity of the Company and may differ from the historical tax carryforwards of the Parent.

***(z) Segment Information*** - We operate as one operating and reportable segment. The segment information is evaluated by the CODM for the purpose of assessing performance and allocating resources. The Company's CODM is its Chief Executive Officer. Our CODM utilizes net income as the primary measure of segment performance because it reflects the underlying business performance and provides the CODM with a basis for making resource allocation decisions. The CODM uses net income to monitor budget versus actual results, for assessing performance of the segment and as a component in determining management's compensation. Our CODM does not utilize assets for making resource allocation decisions. The CODM does not receive additional expense information beyond what is presented within the Combined Statements of Operations.

***(aa) Accounting Pronouncements*** - We consider the applicability and impact of all recent 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 an immaterial impact on our Combined Financial Statements.

*Recent Adopted Accounting Pronouncements*

In December 2023, the FASB issued ASU 2023-09, *Improvements to Income Tax Disclosures*, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. We adopted annual requirements under ASU 2023-09 on January 1, 2025 which have been incorporated into *Note 14. Income Taxes* to our Combined Financial Statements on a prospective basis.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires entities to disclose, on an annual and interim basis, significant segment expenses that are regularly reviewed by the CODM and included within each reported measure of segment profit or loss. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal periods beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company adopted annual requirements under ASU 2023-07 on January 1, 2024.

*Recent Accounting Pronouncements*

In November 2024, the FASB issued ASU 2024-03*, Income Statement – Reporting Comprehensive Income - Expense Disaggregation Disclosure (Topic 220): Disaggregation of Income Statement Expenses*. This ASU requires entities to disaggregate operating expenses into specific categories, such as purchases of inventory, employee compensation, depreciation, and amortization, to provide enhanced transparency into the nature and function of expenses. The guidance is effective for annual reporting years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. We are currently assessing the impact of adoption on our Combined Financial Statements and related disclosures.

**Note 3. Acquisitions** 

**2024**

On June 14, 2024, we acquired 100% of the issued and outstanding equity of Snap One Holdings Corp. ("Snap One"), a leading provider of smart-living products, services, and software to professional integrators, for an aggregate purchase price of $1,405 million. This acquisition aligns with our strategic objective to expand our distribution network, market presence, and product portfolio within the smart home and audio-visual sectors, enhancing our competitive positioning in the industry.

The acquisition was funded by the Parent. The net assets acquired in connection with the acquisition are presented in net transfers from/(to) Parent in the Combined Statements of Cash Flows. Refer to *Note 16. Related Party Transactions* for additional information.

The acquisition was accounted for using the acquisition method of accounting, and the fair value of the total purchase consideration transferred was $1,405 million, which included $17 million of non-cash share-based compensation award conversions.

During the first quarter of 2025, measurement period adjustments were made to income taxes assets and liabilities within the one-year measurement period. As a result, goodwill related to the acquisition decreased by $5 million, reflecting a net decrease in income tax liabilities. We subsequently finalized the accounting for the acquisition of Snap One and the following table presents the final fair values of assets acquired and liabilities assumed as of the date of acquisition.

---

| | |
|:---|:---|
| (in millions) |  |
| **Assets acquired:** |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $47 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 49 |
| &nbsp;&nbsp;&nbsp;Inventories | 240 |
| &nbsp;&nbsp;&nbsp;Other current assets | 27 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment | 63 |
| &nbsp;&nbsp;&nbsp;Goodwill <sup>(1)</sup> | 398 |
| &nbsp;&nbsp;&nbsp;Intangible assets <sup>(2)</sup> | 770 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 61 |
| &nbsp;&nbsp;&nbsp;Other assets | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets acquired | 1663 |
| **Liabilities assumed:** |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | 48 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 56 |
| &nbsp;&nbsp;&nbsp;Current portion of operating lease liabilities | 14 |
| &nbsp;&nbsp;&nbsp;Non-current portion of operating lease liabilities | 47 |
| &nbsp;&nbsp;&nbsp;Deferred tax liabilities | 71 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities assumed | 258 |
| &nbsp;&nbsp;&nbsp;Net assets acquired | $1405 |

---

<sup>(1)</sup> Of the $398 million goodwill from the acquisition, $90 million is expected to be tax deductible over time. Goodwill is comprised of expected synergies for the combined operations and the assembled workforce acquired in the acquisition.

<sup>(2)</sup> Includes customer relationships of $590 million, technology of $110 million, and trademarks of $70 million with weighted average useful lives of 12, 7, and 10 years, respectively.

The Company expensed approximately $34 million of costs related to the acquisition of Snap One during the twelve months ended December 31, 2024. These costs are included in transaction related expenses in the Combined Statements of Operations and consisted primarily of advisory, insurance, and legal fees. The Company assumed $21 million of seller success fees which were paid upon the closing of the acquisition.

Snap One's contribution in the period post-acquisition for the year ended December 31, 2024 was $553 million of revenue and a $27 million loss in pre-tax income.

The Company expensed $9 million of integration costs in connection with the Snap One acquisition during the year ended December 31, 2025. These costs are recognized in transaction related expenses in the Combined Statements of Operations.

***Unaudited Pro Forma Financial Information***

The following unaudited pro forma financial information summarizes the results of operations for the periods indicated as if the Snap One acquisition had been completed on January 1, 2023.

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2024** | **2023** |
| Net revenue | $4658 | $4631 |
| Net loss | (18) | (10) |

---

The unaudited pro forma financial information includes, where applicable, adjustments for (i) the recognition in cost of goods sold of the inventory step-up, (ii) amortization expense related to acquired intangible assets, (iii) the recognition of acquisition-related costs in the year ended December 31, 2023, (iv) associated tax-related impacts of adjustments and (v) other adjustments. These pro forma adjustments are based on the available information as of the date hereof and upon assumptions that the Company believes are reasonable to reflect the impact of the acquisition with the Company's historical financial information on a pro forma basis. Adjustments do not include costs related to integration activities, cost savings or synergies that have been or may be achieved by the combined business.

**Note 4. Revenue Recognition**

**Disaggregated Revenue**

We have a single operating segment: ADI Global Distribution. Disaggregated revenue information for ADI Global Distribution is presented by region.

A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For product sales, typically each product sold to a customer represents a distinct performance obligation. We recognize the majority of our revenue from performance obligations that are satisfied at a point in time. Approximately 1% of our revenue is satisfied over time. We have current contract liabilities of $28 million and $26 million recognized in accrued liabilities as of December 31, 2025 and 2024, respectively. We have non-current contract liabilities $11 million and $12 million recognized in other liabilities as of December 31, 2025 and 2024, respectively. The contract liabilities primarily relate to deferred revenues assumed through the acquisition of Snap One. Additionally, contract assets were not material as of December 31, 2025 and 2024.

The timing of satisfaction of performance obligations does not significantly vary from the typical timing of payment. For some contracts, we may be entitled to receive an advance payment.

We have applied the practical expedient to not disclose the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed.

The following tables present revenue by geographic location and product type, as we believe this presentation best depicts how the nature, amount, timing, and uncertainty of net revenue and cash flows are affected by economic factors:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| Americas <sup>(1)</sup> | $4189 | $3680 | $3085 |
| International <sup>(2)</sup> | 595 | 517 | 485 |
| Total net revenue | $4784 | $4197 | $3570 |

---

<sup>(1)</sup> Americas represents North, Central and South America.

<sup>(2)</sup> International represents all geographies that are not included in Americas.

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| Third-party brands | $3942 | $3673 | $3436 |
| Exclusive brands | 842 | 524 | 134 |
| Total net revenue | $4784 | $4197 | $3570 |

---

**Note 5. Restructuring**

Restructuring, impairment and extinguishment costs consist of the following:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| Restructuring expenses | $8 | $21 | $7 |
| Impairment and extinguishment costs | 1 | 1 | 6 |
| Total restructuring, impairment and extinguishment costs | $9 | $22 | $13 |

---

We took restructuring actions, including capturing synergies from our Snap One acquisition, to align our cost structure based on our strategic objectives and our outlook of market conditions. The intent of these actions is to lower costs, increase margins, and position us for long-term growth. We expect to execute on our restructuring programs over the next 12 months, and the estimated cost of these remaining actions is approximately $4 million. We may incur additional restructuring expenses associated with these plans or new plans in the future.

Impairment losses are reflected as reductions to the carrying amount of the related assets with corresponding losses recognized in the Combined Statements of Operations. Debt extinguishment costs represent Corporate allocated costs associated with third-party debt.

The following table summarizes the status of our restructuring expenses included within accrued liabilities on the Combined Balance Sheets:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| <br>(in millions) | **2025** | **2024** |
| Beginning of year | $9 | $3 |
| &nbsp;&nbsp;&nbsp;Charges | 8 | 21 |
| &nbsp;&nbsp;&nbsp;Usage <sup>(1)</sup> | (13) | (15) |
| End of year | $4 | $9 |

---

<sup>(1)</sup> Usage primarily relates to cash payments and shares issued associated with employee termination costs.

**Note 6. Stock-Based Compensation Plans** 

The Parent's Stock Incentive Plan, which consists of the Amended and Restated 2018 Stock Incentive Plan of Resideo Technologies, Inc. and its Affiliates and the 2018 Stock Incentive Plan for Non-Employee Directors of Resideo Technologies, Inc., provides for the grant of stock options, stock appreciation rights, restricted stock units, restricted stock, and other stock-based awards.

Our stock-based compensation expense was $27 million, $28 million and $15 million, for the years ended December 31, 2025, 2024 and 2023, respectively. Stock-based compensation expense is included in either selling, general and administrative expenses or restructuring, impairment and extinguishment cost in the Combined Statements of Operations based on the nature of the expense. Stock-based compensation expense recorded in selling, general and administrative expenses was $25 million, $23 million and $15 million for the years ended December 31, 2025, 2024 and 2023, respectively. Stock-based compensation expense recorded in restructuring, impairment and extinguishment costs was $2 million, $5 million and $0 million for the years ended December 31, 2025, 2024 and 2023, respectively.

*Restricted Stock Unit and Performance Stock Unit Activity*

 ****

RSUs are issued to certain key employees and to non-employee directors. These awards entitle the holder to receive one share of the Parent's common stock for each unit upon vesting. RSUs typically become fully vested over a three-year period following the grant date; however, RSU awards granted to our non-employee directors have a one-year service period. We measure stock-based compensation expense based on the estimated fair value of the award at the grant date.

PSUs are issued to certain key employees. These awards entitle the holder to receive a specified number of our common stock, dependent on our financial metrics or market conditions, for each unit upon vesting. The number of shares of the Parent's common stock that may ultimately be issued as settlement for each award may range from 0% to 200% of the target award, subject to the achievement of the Parent's market-based Total Shareholder Return ("TSR") relative to the performance of the S&P SmallCap 600 Index over a three-year performance period for a portion of the PSUs. A portion of the PSUs granted in 2025 are separately subject to the achievement of a performance-based return on invested capital ("ROIC"). PSUs typically vest at the end of a three-year period and upon achievement of the performance target.

The fair value of market-based PSUs based on relative TSR was estimated using a Monte Carlo simulation model. For PSUs issued during the years ended December 31, 2025, 2024 and 2023, the calculation of the fair value of these awards was calculated using the following assumptions:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Expected volatility | 45.2% | 45.9% | 63.4% |
| Risk-free interest rate % | 4.3% | 4.2% | 4.2% |
| Expected term (in years) | 2.88 | 2.90 | 2.88 |
| Dividend yield <sup>(1)</sup> |  | —% | —% |

---

<sup>(1)</sup> The Parent has never declared or paid any cash dividends on its common stock and does not intend to pay cash dividends on its common stock.

The following table summarizes activity related to our Parent's Stock Incentive Plan for ADI employees:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **PSUs <sup>(1)</sup>** | **PSUs <sup>(1)</sup>** | **RSUs** | **RSUs** |
| <br>(in thousands except for per share amounts) | **Number of<br> Performance<br> Stock Units** | **Weighted<br> Average<br> Grant Date<br> Fair Value<br> Per Share** | **Number of<br> Restricted<br> Stock Units** | **Weighted<br> Average<br> Grant Date<br> Fair Value<br> Per Share** |
| Non-vested as of January 1, 2025 | 206 | $29.69 | 2413 | $20.50 |
| &nbsp;&nbsp;&nbsp;Granted | 42 | 26.09 | 586 | 21.76 |
| &nbsp;&nbsp;&nbsp;Vested | (45) | 36.11 | (1157) | 20.52 |
| &nbsp;&nbsp;&nbsp;Forfeited | (30) | 36.11 | (182) | 20.64 |
| Non-vested as of December 31, 2025 | 173 | 25.97 | 1660 | 21.09 |

---

<sup>(1)</sup> Includes PSUs at target payout. Final common shares issued may be different based upon the actual achievement versus the performance measure target.

As of December 31, 2025, unrecognized compensation cost related to unvested awards granted to employees under the Parent's Stock Incentive Plan is as follows:

---

| | | |
|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** |
| <br>(in millions) | **Unrecognized<br> Compensation Cost** | **Weighted-Average<br> Period** |
| RSUs | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23 | 1 year, 9 months |
| PSUs | 2 | 1 year, 1 month |
| &nbsp;&nbsp;&nbsp;Total unrecognized compensation cost | $25 |  |

---

The fair value of shares vested is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| RSUs | $32 | $16 | $5 |
| PSUs | 1 | - | 3 |
| Total | $33 | $16 | $8 |

---

 

*Stock Options*

Stock option awards entitle the holder to purchase shares of our Parent's common stock at a specific price when the options vest. Stock options typically vest over 3 years from the date of grant and expire 7 years from the grant date. There were no stock options granted to employees during the twelve months ended December 31, 2025, 2024 and 2023. For the year ended December 31, 2023, there were no stock options expired or exercised during the year.

The following table summarizes stock option activity related to the Parent's Stock Incentive Plan:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Stock Options** | **Stock Options** | **Stock Options** | **Stock Options** |
|  | **Number of Stock<br> Options (in<br> thousands)** | **Weighted<br> Average<br> Exercise<br> Price** | **Weighted<br> Average<br> Contractual<br> Life** | **Aggregate<br> Intrinsic <br> Value <sup>(1)</sup> (in millions)** |
| Stock options outstanding and exercisable as of December 31, 2024 | 173 | $11.72 | 2.0 years | $2 |
| Exercised | (65) | 15.97 |  | 1 |
| Stock options outstanding and exercisable as of December 31, 2025 | 108 | $10.27 | 1.1 years | $3 |

---

<sup>(1)</sup> Represents the total intrinsic value (the difference between the fair market value of our Parent's common stock as of the relevant date and the exercise price, multiplied by the number of in-the-money service-based common stock options) that would have been received by the option holders had all option holders exercised their options on the relevant date. This amount is subject to change based on changes to the fair market value of our Parent's common stock.

For the years ended December 31, 2025, 2024 and 2023, there was no unrecognized compensation cost related to stock options granted under the Parent's Stock Incentive Plan as all stock options were fully vested. Cash received from stock options exercised was not material for all periods presented.

**Note 7. Goodwill and Other Intangible Assets, net**

Our goodwill balance and changes in carrying value is as follows:

---

| | |
|:---|:---|
| (in millions) | **Goodwill** |
| Balance as of January 1, 2024 | $660 |
| &nbsp;&nbsp;&nbsp;Acquisitions <sup>(1)</sup> | 403 |
| &nbsp;&nbsp;&nbsp;Impact of foreign currency translation | (8) |
| Balance as of December 31, 2024 | $1055 |
| &nbsp;&nbsp;&nbsp;Adjustments <sup>(1)</sup> | (5) |
| &nbsp;&nbsp;&nbsp;Impact of foreign currency translation | 16 |
| Balance as of December 31, 2025 | $1066 |

---

<sup>(1)</sup> Refer to *Note 3. Acquisitions* for additional information.

All intangible assets are subject to amortization. These intangible assets consist of the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | | |
| <br>(in millions) | **Gross<br> Carrying<br> Amount** | **Accumulated<br> Amortization** | **Net<br> Carrying<br> Amount** | <br>**Useful** <br> **Lives** | <br> **Weighted<br> Average<br> Amortization** |
| Patents and technology | $110 | $(28) | $82 | 5 - 10 years | 7 years |
| Customer relationships | 675 | (140) | 535 | 7 - 15 years | 12 years |
| Trademarks | 74 | (15) | 59 | 10 years | 10 years |
| Software | 109 | (41) | 68 | 3 - 7 years | 5 years |
| &nbsp;&nbsp;&nbsp;Total intangible assets | $968 | $(224) | $744 |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | | |
| <br>(in millions) | **Gross<br> Carrying<br> Amount** | **Accumulated<br> Amortization** | **Net<br> Carrying <br> Amount** | <br>**Useful<br> Lives** | <br>**Weighted<br> Average<br> Amortization** |
| Patents and technology | $110 | $(10) | $100 | 5 - 10 years | 7 years |
| Customer relationships | 675 | (87) | 588 | 7 - 15 years | 12 years |
| Trademarks | 74 | (8) | 66 | 10 years | 10 years |
| Software | 81 | (25) | 56 | 3 - 5 years | 5 years |
| &nbsp;&nbsp;&nbsp;Total intangible assets | $940 | $(130) | $810 |  |  |

---

Intangible assets are amortized on a straight-line basis or a basis consistent with the expected future cash flows over their expected useful lives. Intangible asset amortization expense was $95 million, $55 million and $13 million during the years ended December 31, 2025, 2024 and 2023, respectively. Refer to *Note 16. Related Party Transactions* for the allocation of corporate costs related to intangible asset amortization.

The estimated aggregate amortization on these intangible assets for each of the next five years as of December 31, 2025 is as follows:

---

| | |
|:---|:---|
| (in millions) | **Amortization<br> Expense** |
| 2026 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95 |
| 2027 | $89 |
| 2028 | $86 |
| 2029 | $76 |
| 2030 | $66 |

---

**Note 8. Leases**

We are party to operating leases for the majority of our stores, distribution centers, offices, engineering sites, automobiles, and certain equipment. Certain real estate leases include variable rental payments which adjust periodically based on inflation. Other variable amounts paid under operating leases, such as taxes and common area maintenance, are charged to selling, general and administrative expenses as incurred. Generally, lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Operating lease expense was $68 million, $52 million and $40 million recognized in selling, general and administrative expenses for the years ended December 31, 2025, 2024 and 2023, respectively.

Total operating lease costs include variable lease costs of $15 million, $12 million and $8 million recognized in selling, general and administrative expenses for the years ended December 31, 2025, 2024 and 2023, respectively.

The following table summarizes the carrying amounts of our operating leased assets and liabilities along with key inputs used to discount our lease liabilities:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| <br>(in millions, except weighted-average data) | **2025** | **2024** |
| Operating lease right-of-use assets | $236 | $166 |
| Current portion of operating lease liabilities | $37 | $33 |
| Non-current portion of operating lease liabilities | $209 | $140 |
| Weighted-average remaining term | 7.17 years | 6.05 years |
| Weighted-average incremental borrowing rate | 5.98% | 5.95% |

---

The following table summarizes our future minimum lease payments under our non-cancelable leases as of December 31, 2025:

---

| | |
|:---|:---|
| (in millions) | **Commitments** |
| 2026 | $49 |
| 2027 | 47 |
| 2028 | 42 |
| 2029 | 35 |
| 2030 | 30 |
| Thereafter | 104 |
| Total lease payments | 307 |
| &nbsp;&nbsp;&nbsp;Less: Imputed interest | (61) |
| Present value of operating lease liabilities | $246 |

---

Supplemental cash flow information related to operating leases is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| Cash paid for operating lease liabilities | $45 | $25 | $17 |
| Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities <sup>(1)</sup> | $101 | $94 | $10 |

---

<sup>(1)</sup> The year ended December 31, 2024 includes $61 million of operating lease assets acquired from the Snap One acquisition.

As of December 31, 2025 we have additional operating leases that have not yet commenced. Obligations under these leases are not material.

**Note 9. Long-Term Debt**

Our Parent is the obligor of multiple third-party debt instruments for which subsidiaries of the Company are also jointly and severally liable. Accordingly, a portion of the Parent's long-term debt and short-term debt was allocated to the Company for the years ended December 31, 2025 and 2024 as the Company was jointly and severally liable for such debt. The related interest expense and unamortized deferred financing costs and loss on extinguishments on the debt have been allocated to the Company for the periods presented. Given the lack of a contractual agreement for the Company to pay a specified amount to Parent (i.e., its co-obligors), the allocation basis was determined based on what the Company would reasonably expect to pay on behalf of its co-obligors. No payments were made by the Company to third-party creditors as payments are made by Parent historically and in each reporting period.

The outstanding debt of Resideo and the allocations of debt to ADI as of December 31, 2025 and 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| <br>(in millions) | **Allocation to<br> ADI** | **Total<br> Resideo** | **Allocation to<br> ADI** | **Total<br> Resideo** |
| 4.000% Senior Notes due 2029 | $112 | $300 | $72 | $300 |
| 6.500% Senior Notes due 2032 | 224 | 600 | 144 | 600 |
| Variable rate A&R Term B Facility | $871 | $2331 | $266 | $1115 |
| &nbsp;&nbsp;&nbsp;Gross debt | 1207 | 3231 | 482 | 2015 |
| Less: current portion of long-term debt <sup>(1)</sup> | $(7) | $(18) | (2) | (6) |
| Less: unamortized deferred financing costs | (15) | (46) | (5) | (26) |
| Total long-term debt | $1185 | $3167 | $475 | $1983 |

---

<sup>(1)</sup> Included within accrued liabilities on the Combined Balance Sheets.

*A&R Credit Agreement* 

 

Resideo ("Borrower") entered into the A&R Credit Agreement to provide an initial seven- year senior secured Term B loan facility in an aggregate principal amount of $950 million with a maturity date of February 2028. In March 2022, the Borrower amended the A&R Credit Agreement adding $200 million in additional term loans. In June 2023, the Borrower amended the A&R Credit Agreement to replace the interest rate reference rate of LIBOR with the secured overnight financing rate (SOFR). Included in the A&R Term B Facility is a five-year senior secured revolving credit facility in an aggregate capacity of $500 million (the A&R Revolving Credit Facility and, together with the A&R Term B Facility, the "A&R Senior Credit Facilities").

In May 2024, the A&R Term B Facility was amended to (i) reduce the interest rate margin from 2.25% to 2.00%, (ii) eliminate the SOFR credit spread adjustment, and (iii) reduce the SOFR floor from 0.50% to 0%.

In June 2024, the Borrower further amended the A&R Credit Agreement to add $600 million of term loans with a maturity date of May 2031 to partially finance the acquisition of Snap One. The Borrower also extended the term of the A&R Revolving Credit Facility for a new five-year term.

In July 2024, the Borrower issued $600 in aggregate principal of 6.50% Senior Notes due 2032 ("Senior Notes due 2032"). The issue price of the Senior Notes due 2032 was equal to 100% of the principal amount. The net proceeds from the Senior Notes due 2032 were used to repay $596 principal amount of outstanding indebtedness under the Company's A&R Term B Facility.

In December 2024, the A&R Term B Facility was further amended to reduce the interest rate margin from 2.00% to 1.75%.

In August 2025, the A&R Credit Agreement was further amended. Borrower issued $1,225 million of incremental term loans which mature in August 2032. Net proceeds of $1,198 million were primarily used to fund the termination of the Indemnification Agreement. Refer to *Note 10. Indemnification Agreement* to the Combined Financial Statements for further discussion.

As a result of the August 2025 amendment, the A&R Term B Facility bears interest at a rate per annum based on Term SOFR plus an interest rate margin of 2.00% per annum. As of December 31, 2025 and December 31, 2024, the weighted average interest rate on the A&R Term B Facility, excluding the impact of the interest rate swaps, was 5.76% and 6.13%, respectively.

The Borrower is obligated to make quarterly principal payments throughout the term of the A&R Term B Facility according to the amortization provisions in the A&R Credit Agreement. In addition to paying interest on outstanding borrowings under the A&R Revolving Credit Facility, the Borrower is required to pay a quarterly commitment fee between 0.25% and 0.35% based on the unused portion of the A&R Revolving Credit Facility depending on the Borrower's consolidated leverage ratio. Up to $75 million may be utilized under the A&R Revolving Credit Facility for the issuance of letters of credit to the Borrower or any of the Borrower's subsidiaries. There were no outstanding borrowings and no letters of credit issued under the A&R Revolving Credit Facility.

The A&R Credit Agreement includes customary affirmative and negative covenants and reporting requirements, including limitations on indebtedness, liens, investments, and other restricted transactions. All obligations under the A&R Credit Agreement are unconditionally guaranteed jointly and severally by the Borrower and substantially all of the direct and indirect wholly owned subsidiaries of the Borrower that are organized under the laws of the U.S. (collectively, the "Guarantors"). The A&R Credit Agreement is secured on a first priority basis by the equity interests of each direct subsidiary of the Borrower, as well as the tangible and intangible personal property and material real property of the Borrower and each of the Guarantors. As of December 31, 2025, the Borrower is in compliance with all covenants.

*Senior Notes*

In August 2021, the Borrower issued $300 million in principal amount of 4.00% Senior Notes due 2029 ("Senior Notes due 2029").

In July 2024, the Borrower issued $600 million in aggregate principal of Senior Notes due 2032 ("Senior Notes due 2032" and together with the Senior Notes due 2029, the "Senior Notes").

The Senior Notes are senior unsecured obligations of our Parent guaranteed by or Parent's existing and future domestic subsidiaries and rank equally with all of our Parent's senior unsecured debt and senior to all of Parent's subordinated debt. The Senior Notes limit the Borrower and restricted subsidiaries' ability to, among other things, incur additional secured indebtedness; enter into certain sale and leaseback transactions; incur liens; and consolidate, merge or sell all or substantially all of its assets. These covenants are subject to a number of limitations and exceptions. Additionally, upon certain events constituting a change of control together with a ratings downgrade, the holders of the Senior Notes have the right to require the Borrower to offer to repurchase the Senior Notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, to (but not including) the date of purchase.

*Interest Expense Allocation*

Interest expense of Resideo and allocations of interest expense to ADI for the years ended December 31, 2025, 2024 and 2023 is as follows:

---

| | | |
|:---|:---|:---|
| | **Year Ended <br> December 31, 2025** | **Year Ended <br> December 31, 2025** |
| <br>(in millions) | **Allocation to<br> ADI** | **Total<br> Resideo** |
| Interest expense | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42 | $150 |
| Amortization of deferred financing costs | 2 | 6 |
| &nbsp;&nbsp;&nbsp;Total interest expense allocation | $44 | $156 |

---

---

| | | |
|:---|:---|:---|
| | **Year Ended<br> December 31, 2024** | **Year Ended<br> December 31, 2024** |
| <br>(in millions) | **Allocation to<br> ADI** | **Total<br> Resideo** |
| Interest expense | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28 | $118 |
| Amortization of deferred financing costs | 1 | 4 |
| &nbsp;&nbsp;&nbsp;Total interest expense allocation | $29 | $122 |

---

---

| | | |
|:---|:---|:---|
| | **Year Ended <br> December 31, 2023** | **Year Ended <br> December 31, 2023** |
| <br>(in millions) | **Allocation to<br> ADI** | **Total<br> Resideo** |
| Interest expense | $19 | $98 |
| Amortization of deferred financing costs | 1 | 3 |
| &nbsp;&nbsp;&nbsp;Total interest expense allocation | $20 | $101 |

---

 ****

 ****

**Note 10. Indemnification Agreement** 

Our Parent separated from Honeywell in 2018, becoming an independently traded company as a result of a pro rata distribution of our Parents common stock to the stockholders of Honeywell ("the Parent Spin-Off"). In connection with the Parent Spin-Off from Honeywell, our Parent entered into an Indemnification Agreement pursuant to which our Parent has an obligation to make cash payments associated with Honeywell's environmental liabilities which were capped at $140 million annually. Prior to the Parent entering into a definitive agreement with Honeywell to terminate the Indemnification Agreement, the Indemnification Agreement extended until the earlier of (1) December 31, 2043; or (2) December 31 of the third consecutive anniversary where the annual reimbursement obligation (including accrued amounts) has been less than $25 million.

Subsidiaries of the Company are jointly and severally liable for our Parent's obligations for the Indemnification Agreement. As such, an allocated portion of our Parent's Indemnification Agreement expenses are presented within Indemnification Agreement expense in the Combined Statements of Operations. A portion of the associated liability is presented within current portion of obligations payable under Indemnification Agreement and obligations payable under Indemnification Agreements in the Combined Balance Sheet as of December 31, 2024, as the Company was jointly and severally liable for such agreement until our Parent entered into an agreement with Honeywell in the third quarter of 2025 to terminate it as discussed under "Termination Agreement" below. Given the lack of a contractual agreement for the Company to pay a specified amount to Parent (i.e., its co-obligors), the allocation basis was determined based on what the Company would reasonably expect to pay on behalf of its co-obligors. No payments were made by the Company to Honeywell as payments were made by Parent historically in each applicable reporting period.

*Termination Agreement*

On July 30, 2025, our Parent entered into a definitive agreement with Honeywell to terminate the Indemnification Agreement ("Termination Agreement"). Our Parent made a pre-tax, one-time cash payment of $1,590 million to Honeywell, which occurred in the third quarter of 2025. In addition, our Parent also paid a regularly scheduled payment of $35 million in the first, second and third quarters of 2025. Upon completion of the pre-tax, one-time cash payment, the Indemnification Agreement was fully terminated. Our Parent is no longer required to make any further payments to Honeywell under the Indemnification Agreement and the associated affirmative and negative covenants will no longer apply. As a result of the Termination Agreement, our Parent recorded $972 million in pre-tax expense in 2025. As of December 31, 2025, the liability in connection with the Indemnification Agreement was fully repaid and is not presented in the Combined Balance Sheet. As the subsidiaries of the Company are jointly and severally liable for our Parent's obligations during the periods the obligations were outstanding, an allocated portion of the expense is presented within Indemnification Agreement expense, net in the Combined Statements of Operations.

The allocated portion of the Indemnification Agreement is as follows:

---

| | | |
|:---|:---|:---|
| (in millions) | **Allocation to<br> ADI** | **Total<br> Resideo** |
| Balance as of January 1, 2024 | $243 | $652 |
| &nbsp;&nbsp;&nbsp;Allocation of accruals for liabilities deemed probable and reasonably estimable | 79 | 211 |
| &nbsp;&nbsp;&nbsp;Change in Honeywell obligation | (52) | (140) |
| Balance as of December 31, 2024 | 270 | 723 |
| Allocation of accruals for liabilities deemed probable and reasonably estimable | 364 | 972 |
| Change in Honeywell obligation | (634) | (1695) |
| Balance as of December 31, 2025 | $- | $- |

---

The allocated portion of the liabilities related to the Indemnification Agreement included in the following balance sheet accounts are as follows:

---

| | | |
|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** |
| <br>(in millions) | **Allocation to<br> ADI** | **Total<br> Resideo** |
| Current portion of Obligations payable under Indemnification Agreement | $52 | $140 |
| Obligations payable under Indemnification Agreement | 218 | 583 |
| &nbsp;&nbsp;&nbsp;Total Indemnification Agreement liability | $270 | $723 |

---

As of December 31, 2025, the liability in connection with the Indemnification Agreement was fully repaid and is not presented in the Combined Balance Sheet.

The portion of the Indemnification Agreement expense allocated to the Company is presented within Indemnification Agreement expense account in the Combined Statements of Operations.

Indemnification Agreement expense allocated to ADI for the years ended December 31, 2025, 2024 and 2023 are as follows:

---

| | | |
|:---|:---|:---|
| | **Indemnification<br> Agreement Expense** | **Indemnification<br> Agreement Expense** |
| <br>(in millions) | **Allocation to<br> ADI** | **Total<br> Resideo** |
| Year Ended December 31, 2025 | $364 | $972 |
| Year Ended December 31, 2024 | 79 | 211 |
| Year Ended December 31, 2023 | 67 | 178 |

---

**Note 11. Accrued Liabilities**

Accrued liabilities consist of the following:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| <br>(in millions) | **2025** | **2024** |
| Compensation, benefit and other employee-related | 45 | 45 |
| Deferred revenue | 28 | 25 |
| Customer rebate reserve | 20 | 12 |
| Other <sup>(1)</sup> | 82 | 82 |
| &nbsp;&nbsp;&nbsp;Total accrued liabilities | $175 | $164 |

---

<sup>(1)</sup> Other includes current portion of long-term debt, accruals for sales allowances, interest, advertising, taxes payable, product warranties, freight payable, restructuring, rent, travel, professional fees, legal reserves and other reserves.

**Note 12. Commitments and Contingencies**

***Other Matters***

We are subject to lawsuits, investigations and disputes arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, acquisitions and divestitures, employee matters, 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, based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. No such matters are material to our financial statements.

 ****

 ****

***Warranties and Guarantees***

In the normal course of business, we issue product warranties and product performance guarantees. We accrue for the estimated cost of product warranties and product performance guarantees based on contract terms and historical experience at the time of sale. Adjustments to initial obligations for warranties and guarantees are made as changes to the obligations become reasonably estimable. Product warranties and product performance guarantees are included in accrued and other liabilities.

The following table summarizes information concerning recorded obligations for product warranties and product performance guarantees:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| <br>(in millions) | **2025** | **2024** |
| Beginning balance | $10 | $- |
| &nbsp;&nbsp;&nbsp;Accruals for warranties/guarantees issued during the year <sup>(1)</sup> | 13 | 16 |
| &nbsp;&nbsp;&nbsp;Settlement/adjustment of warranty/guarantee claims | (14) | (6) |
| Ending balance | $9 | $10 |

---

<sup>(1)</sup> For the years ended December 31, 2025 and 2024 the increase is primarily due to warranties and guarantees assumed through the acquisition of Snap One.

***Purchase Commitments***

Our unconditional purchase obligations include purchase commitments with suppliers and other obligations entered into during the normal course of business regarding the purchase of goods and services. For the years ended December 31, 2025, 2024 and 2023, purchases related to these obligations were $98 million, $98 million and $20 million, respectively.

The following table summarizes the future aggregate payments on these obligations as of December 31, 2025:

---

| | |
|:---|:---|
| (in millions) | **Payments** |
| 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78 |
| 2027 |  |
| 2028 |  |
| 2029 | - |
| 2030 and thereafter | - |
| &nbsp;&nbsp;&nbsp;Total | $78 |

---

**Note 13. Other (Income) Expense, net**

 ****

Other (income) expense, net consists of the following:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| Foreign exchange translation (gain)/loss | $(3) | $3 | $(9) |
| Pension interest cost and expected return | 1 | 1 | 3 |
| Other, net | - | - | 1 |
| &nbsp;&nbsp;&nbsp;Total other (income) expense, net | $(2) | $4 | $(5) |

---

**Note 14. Income Taxes**

Income tax expense is based on pretax financial accounting income. Deferred income taxes are recognized for the temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes and such amounts for income tax purposes.

The following is a summary of the components of income (loss) before provision for income taxes:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| U.S. | $(270) | $(16) | $86 |
| Non-U.S. | 20 | 23 | 26 |
| &nbsp;&nbsp;&nbsp;Total | $(250) | $7 | $112 |

---

The components of the provision for income taxes consisted of the following for the year ended December 31, 2025:

---

| | |
|:---|:---|
| (in millions) | **Year Ended<br> December 31, 2025** |
| **Current:** |  |
| &nbsp;&nbsp;&nbsp;U.S. federal | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;U.S. state and local | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-U.S. | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current | 12 |
| **Deferred:** |  |
| &nbsp;&nbsp;&nbsp;U.S. federal | (1) |
| &nbsp;&nbsp;&nbsp;U.S. state and local | (1) |
| &nbsp;&nbsp;&nbsp;Non-U.S. | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred | (1) |
| **Total income tax expense:** |  |
| &nbsp;&nbsp;&nbsp;U.S. federal |  |
| &nbsp;&nbsp;&nbsp;U.S. state and local | 2 |
| &nbsp;&nbsp;&nbsp;Non-U.S. | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total income tax expense | $11 |

---

The components of the provision for income taxes consisted of the following for the years ended December 31, 2024 and 2023, respectively:

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2024** | **2023** |
| **Current:** |  |  |
| U.S. | $28 | $40 |
| Non-U.S. | 11 | 11 |
| &nbsp;&nbsp;&nbsp;Total current | 39 | 51 |
| **Deferred:** |  |  |
| U.S. | (13) | (1) |
| Non-U.S. | (1) | - |
| &nbsp;&nbsp;&nbsp;Total deferred | (14) | (1) |
| Total provision | $25 | $50 |

---

The reconciliation of income tax computed at the U.S. federal statutory tax rate to the effective income tax rate is as follows for 2025:

---

| | |
|:---|:---|
|  | **Year Ended December 31, 2025** |
| (in millions) | **%** |
| U.S. federal statutory income tax rate | 21.0% |
| State and local income tax, net of federal (national) income tax effect <sup>(1)</sup> | (0.6) |
| Foreign Tax Effects | (1.9) |
| Effect of Cross-Border Tax Laws |  |
| Tax Credits | 0.4 |
| Nontaxable or Nondeductible Items |  |
| &nbsp;&nbsp;&nbsp;Non-deductible indemnification costs | (30.6) |
| &nbsp;&nbsp;&nbsp;Interest expense deduction | 9.2 |
| &nbsp;&nbsp;&nbsp;§162(m) excess officer compensation | (0.8) |
| &nbsp;&nbsp;&nbsp;Other Nondeductible Expenses | (0.3) |
| Other Adjustments | (0.5) |
| &nbsp;&nbsp;&nbsp;Effective income tax rate | (4.2)% |

---

<sup>(1)</sup> State Taxes in California, New York, New Jersey, Florida, Georgia, Pennsylvania, and Maryland made up the majority (greater than 50%) of the tax effect in this category.

The reconciliation of income tax computed at the U.S. federal statutory tax rate to the effective income tax rate is as follows for 2024 and 2023:

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2024** | **2023** |
| U.S. federal statutory income tax rate | 21.0% | 21.0% |
| Impact of foreign operations | 21.9 | 1.2 |
| U.S. state income taxes | 46.0 | 7.0 |
| Non-deductible indemnification costs | 196.1 | 11.2 |
| Executive compensation over $1 million | 13.7 | 0.6 |
| U.S. taxation of foreign earnings | 9.2 | 0.6 |
| Tax credits | (26.2) |  |
| Change in valuation allowance | 47.0 | 2.4 |
| Non-taxable income items | (4.0) | (0.1) |
| Other non-deductible expenses | 3.8 | 0.3 |
| All other items, net | (0.8) | (0.4) |
| Effective income tax rate | 327.7% | 43.8% |

---

Deferred income taxes reflect the net impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. The tax effects of the temporary differences as of December 31, 2025 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| <br>(in millions) | **2025** | **2024** |
| **Deferred tax assets:** |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | $62 | $44 |
| &nbsp;&nbsp;&nbsp;Employee compensation and related reserves | 8 | 11 |
| &nbsp;&nbsp;&nbsp;Inventory costing and related reserves | 14 | 10 |
| &nbsp;&nbsp;&nbsp;Capitalized research and development |  | 36 |
| &nbsp;&nbsp;&nbsp;Other accruals and reserves | 18 | 19 |
| &nbsp;&nbsp;&nbsp;§163(j) carryforward | 23 |  |
| &nbsp;&nbsp;&nbsp;Net operating losses, capital losses, and tax credits | 58 | 47 |
| &nbsp;&nbsp;&nbsp;Other | 5 | 5 |
| Gross deferred tax assets | 189 | 172 |
| &nbsp;&nbsp;&nbsp;Valuation allowance | (24) | (24) |
| Total deferred tax assets | $165 | $148 |
| **Deferred tax liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Intangibles | $(142) | $(150) |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment | (13) | (11) |
| &nbsp;&nbsp;&nbsp;Operating lease assets | (60) | (42) |
| &nbsp;&nbsp;&nbsp;Other | (6) | (5) |
| Total deferred tax liabilities | $(220) | $(208) |
| Net deferred tax liabilities | $(55) | $(60) |

---

*Valuation allowance*

 

In assessing the need for a valuation allowance, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We evaluate our ability to realize the tax benefits associated with deferred tax assets by analyzing the relative impact of all the available positive and negative evidence regarding our forecasted taxable income using both historical and projected future operating results, the reversal of existing taxable temporary differences, taxable income in prior carry-back years (if permitted), and the availability of tax planning strategies. The ultimate realization of deferred tax assets is dependent upon the generation of certain types of future taxable income during the periods in which those temporary differences become deductible. In making this assessment, we consider the scheduled reversal of deferred tax liabilities, our ability to carry back the deferred tax asset, projected future taxable income, and tax planning strategies. A valuation allowance is recorded in each jurisdiction when it is more likely than not that the deferred income tax asset will not be realized. Changes in deferred tax asset valuation allowances typically impact income tax expense.

We maintain a valuation allowance of $24 million against a portion of deferred tax assets. Valuation allowances principally relate to foreign net operating loss carryforwards. As of December 31, 2025, we have deferred tax assets relating to foreign net operating loss carryforwards of $16 million. These tax losses can be carried forward to offset the income tax liabilities on future income in these countries. Cumulative tax losses of $13 million can be carried forward indefinitely, while the remaining $3 million of tax losses must be used during tax years 2025 to 2045.

The rollforward of the valuation allowance on deferred taxes is as follows for the periods indicated:

---

| | | |
|:---|:---|:---|
| | **December 31,** | **December 31,** |
| <br>(in millions) | **2025** | **2024** |
| Beginning balance | $24 | $10 |
| Additions | - | 14 |
| Ending balance | $24 | $24 |

---

As of December 31, 2025, our total undistributed earnings of foreign affiliates were $84 million, of which $20 million was not considered indefinitely reinvested. While these earnings would not be subject to incremental U.S. tax, if we were to actually distribute these earnings, they could be subject to additional foreign income taxes and/or withholding taxes payable in foreign jurisdictions. Thus, we provide for foreign income taxes payable upon future distributions of the earnings not considered indefinitely reinvested annually. For the year ended December 31, 2025, the tax charge related to earnings that are not considered indefinitely reinvested is not material. Determination of the unrecognized deferred foreign income tax liability related to these undistributed earnings is not practicable due to the complexities associated with this hypothetical calculation.

*Uncertain tax positions*

 

The following table displays the gross unrecognized tax benefit as a result of uncertain tax positions, excluding interest and penalties for the years ended December 31, 2025, 2024 and 2023. It is not anticipated that the total unrecognized tax benefits will change significantly within the next twelve months.

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| Unrecognized tax benefits at beginning of year | $5 | $- | $- |
| Acquisitions | - | 5 | - |
| Unrecognized tax benefits at end of year | $5 | $5 | $- |

---

Included in the balance of unrecognized tax benefits as of December 31, 2025 and 2024 are potential benefits of $5 million that if recognized would affect the effective tax rate.

We report accrued interest and penalties related to unrecognized tax benefits in income tax expense. For the years ended December 31, 2025 and 2024, we recognized no net expense for interest and penalties related to unrecognized tax benefits nor were there any related accruals.

Any movement which impacts the Combined Statements of Operations for an unrecognized tax benefit that is not conveying with the Company in the Transaction is settled to net parent investment. For the years ended December 31, 2025, 2024 and 2023, no amount impacts the Combined Statements of Operations.

*Cash paid for taxes*

 

---

| | |
|:---|:---|
| (in millions) | **Year Ended<br> December 31, 2025** |
| U.S. federal | $- |
| U.S. state and local | 2 |
| Foreign |  |
| &nbsp;&nbsp;&nbsp;Canada | 7 |
| Other foreign jurisdictions | 2 |
| &nbsp;&nbsp;&nbsp;Total income tax payments, net of refunds expense | $11 |

---

 

The Company paid $13 million and $11 million of income taxes, net of refunds during the years ended December 31, 2024 and 2023, respectively.

**Note 15. Geographic Areas - Financial Data**

Revenue and long-lived assets by geography are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Net Revenue <sup>(1)</sup>** | **Net Revenue <sup>(1)</sup>** | **Net Revenue <sup>(1)</sup>** | **Long-Lived Assets <sup>(2)</sup>** | **Long-Lived Assets <sup>(2)</sup>** |
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** | **December 31,** | **December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** | **2025** | **2024** |
| U.S. | $3883 | $3402 | $2829 | $288 | $218 |
| Europe | 538 | 502 | 468 | 33 | 28 |
| Other International | 363 | 293 | 273 | 22 | 15 |
| &nbsp;&nbsp;&nbsp;Total | $4784 | $4197 | $3570 | $343 | $261 |

---

<sup>(1)</sup> Net revenue is classified according to its country of origin.

<sup>(2)</sup> Long-lived assets are comprised of property, plant and equipment, net and right-of-use lease assets.

**Note 16. Related Party Transactions**

*Allocations of Corporate Costs*

The Combined Financial Statements reflect allocations of certain expenses from Parent, including, but not limited to, corporate executives, finance, legal, audit, mergers and acquisitions, human resources, information technology, insurance, employee benefits, costs associated with the Spin-off and other expenses that are either specifically identifiable or clearly applicable to the Company. The allocation methods used include relative percentage of segment operating income, headcount, and other methods that considered the relative time spent based on internal resources. Management believes that the methods used to allocate expenses to the Company are reasonable; however, the allocations may not be indicative of actual expenses that would have been incurred had we operated as an independent, publicly traded company for the periods presented. Actual costs that the Company may have incurred had it been a stand-alone company would depend on a number of factors, including the chosen organizational structure, whether functions were outsourced or performed by our employees and strategic decisions made in areas such as manufacturing, selling and marketing, research and development, information technology and infrastructure.

Amounts recorded in selling, general and administrative expenses were $49 million, $76 million and $47 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Amounts recorded in transaction related expenses were $7 million for the year ended December 31, 2025 and relate to costs incurred by our Parent associated with the Spin-off. There were no allocated transaction related expenses in the years ended December 31, 2024 and 2023.

Amounts recorded in intangible asset amortization were $1 million, $2 million and $2 million for the years ended December 31, 2025, 2024 and 2023, respectively.

 

*Transactions with Parent* 

Our intercompany arrangements between the Company and Parent are included within these Combined Financial Statements consist of receivables and payables arising from trade transactions as well as related party loan balances associated with the participation of certain of our subsidiaries in the Parent's centralized cash management programs. Additionally, we have intercompany loans with the Parent and certain of its subsidiaries. Activity related to loans receivables and payables is presented in the Combined Statement of Cash Flows in investing activities and financing activities, respectively.

During the year ended December 31, 2025, certain amounts due from our Parent outstanding as of December 31, 2024 were contributed to our Parent as equity transactions and reflected as a decrease in net parent investment. The total was $53 million and was comprised of related party loans due from our Parent of $185 million and cash pooling arrangement balances due to our Parent of $132 million. This activity is reflected in other non-cash investing and financing activities in the net transfers (to)/from Parent table.

During the normal course of operations, the Company makes inventory purchases from Parent. During the years ended December 31, 2025, 2024 and December 31, 2023, the Company purchased $175 million, $195 million and $285 million of inventory from Parent, respectively. Certain purchases are cash settled and reflected net on the Combined Balance Sheets within due to related parties - current of $1 million and $4 million as of December 31, 2025 and 2024, respectively.

Our payable balance pursuant to the cash pooling arrangements, presented net as due to related parties - current in the Combined Balance Sheets, was $67 million and $185 million as of December 31, 2025 and 2024, respectively. Cash pooling arrangements between the Company and Parent that are not anticipated to be cash settled are reflected in net parent investment in the Combined Balance Sheets and totaled $71 million and $105 million as of December 31, 2025 and 2024. Our receivable balance pursuant to the intercompany loans, presented net within due from related parties - non-current on the Combined Balance Sheets, was $13 million and $186 million as of December 31, 2025 and 2024.

The Company recognized related party interest expense and income from financing transactions with Parent. During the years ended December 31, 2025, 2024 and 2023 the Company recognized $6 million, $10 million and $12 million of related party interest expense, respectively. During the years ended December 31, 2025, 2024 and 2023 the Company recognized $3 million, $6 million and $10 million of related party interest income, respectively.

The Company pays and receives cash interest in connection with the related party loans and cash pooling arrangements. During the years ended December 31, 2025, 2024 and December 31, 2023 the Company paid interest to the Parent of $6 million, $12 million and $14 million, respectively. During the years ended December 31, 2025, 2024 and 2023 the Company received interest from the Parent of $3 million, $5 million and $10 million, respectively.

 

 

*Net Transfers (To)/From Parent*

Net transfers (to)/from Parent are included within financing activities in the Combined Statements of Cash Flows and within net parent investment in the Combined Statements of Changes in Equity. This activity represents the net effect of transactions between the Company and Resideo.

The components of net transfers (to)/from Parent are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| Net transfers from/(to) Parent as reflected in the Combined Statements of Cash Flows | $562 | $109 | $(86) |
| Stock-based compensation expense | 27 | 28 | 15 |
| Allocation of depreciation & amortization | 2 | 3 | 3 |
| Allocation of third-party debt and cash flow hedges | (709) | (188) | 24 |
| Acquisitions and investments |  | 1355 | 9 |
| Other non-cash investing and financing activities | (53) | - | - |
| Net transfers (to)/from Parent as reflected in the Combined Statements of Changes in Equity | $(171) | $1307 | $(35) |

---

**Note 17. Interest Expense and Interest Income**

Interest expense consists of the following:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| Third-party debt | $44 | $29 | $20 |
| Related party liabilities | 6 | 10 | 12 |
| &nbsp;&nbsp;&nbsp;Total interest expense | $50 | $39 | $32 |

---

Interest income consists of the following:

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>(in millions) | **2025** | **2024** | **2023** |
| Related party assets | $3 | $6 | $10 |
| Interest rate hedges | 2 | 6 | 6 |
| Interest income on cash and cash equivalents | 3 | 3 | 2 |
| &nbsp;&nbsp;&nbsp;Total interest income | $8 | $15 | $18 |

---

**Note 18. Subsequent Events**

The Company evaluated subsequent events for recognition or disclosure through March 31, 2026, the date the Combined Financial Statements were available to be issued.

On February 20, 2026, the U.S. Supreme Court ruled that tariffs imposed by the U.S. government under the IEEPA were unauthorized. The Supreme Court did not address refunds or remedies but instead remanded the matter to the Court of International Trade ("CIT") to address remedies. The CIT ruled that the government must issue refunds and has given the government at least 45 days to update its systems and processes to manage the refund process with required updates to the court on a weekly basis. In addition, the government has stopped the collection of IEEPA tariffs. However, the government imposed a new tariff surcharge of l0% under the balance of payments statute (19 USC 2132) on all imports with certain exceptions for certain commodities (e.g., electronics, critical minerals) and USMCA qualified products. The new tariffs took effect on February 24, 2026, and will remain in effect for 150 days (the maximum under the statute). Tariffs have not been previously imposed under this statutory provision. While we are taking measures to preserve our rights to refunds through the existing administrative processes, it is still unclear when the government will issue refunds. On a go forward basis, on balance with the new tariffs, the recission of the IEEPA tariffs is not expected to have a material impact to our business.

## Exhibit 99.2

**Exhibit 99.2**

![](ea028883201_ex99-2img1.jpg)

V96830 - [TBD] See the reverse side for instructions on how to access materials. You are receiving this communication because you hold shares of Resideo Technologies, Inc . ("Resideo") . Resideo has released informational materials regarding the spin - off of its wholly - owned subsidiary, ADI Global Distribution Inc . ("ADI"), that are now available for your review . This notice provides instructions on how to access materials for informational purposes only . To effect the spin - off, Resideo will distribute on a pro rata basis to its common stockholders all of the issued and outstanding common shares of ADI held by it . Following the distribution, which will be effective as of the date and time referenced in the Information Statement that ADI has prepared in connection with the spin - off, ADI will be an independent, publicly - traded company . Resideo is not soliciting proxy or consent authority in connection with the spin - off . The materials consist of the Information Statement, plus any supplements, that ADI has prepared in connection with the spin - off . You may view the materials online at www . materialnotice . com and easily request a paper or e - mail copy (see reverse side) . Important Notice Regarding the Availability of Materials RESIDEO TECHNOLOGIES, INC.

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V96831 - [TBD] How to View Online: Visit: www.materialnotice.com. Have the information that is printed in the box marked by the arrow above. How to Request and Receive a PAPER or E - MAIL Copy: If you want to receive a paper or e - mail copy of these materials, you must request one. There is NO charge for requesting a copy. Please choose one of the following methods to make your request: 1) BY INTERNET : www.materialnotice.com 2) BY TELEPHONE : 1 - 800 - 579 - 1639 3) BY E - MAIL\* : sendmaterial@materialnotice.com \* If requesting materials by e - mail, please send a blank e - mail with the information that is printed in the box marked by the arrow above in the subject line. Requests, instructions and other inquiries sent to this e - mail address will NOT be forwarded to your investment advisor. Materials Available to VIEW or RECEIVE: ��

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V96832 - [TBD] THIS NOTICE WILL ENABLE YOU TO ACCESS MATERIALS FOR INFORMATIONAL PURPOSES ONLY

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V96833 - [TBD] THIS PAGE WAS INTENTIONALLY LEFT BLANK