Risk Factors Update Summary

• The Administrator is granted authority to engage third-party advisors for calculations and determinations under the Policy.
• Increase in benefit obligation for non-U.S. plans from $14.7 billion to $19.5 billion.
• Addition of specific competitors as Competing Businesses under the Noncompete Agreement.
• The Clawback Policy now includes detailed definitions and procedures for recovering Erroneously Awarded Compensation.
• Expanded definition of Competing Business to include entities with access to Confidential Information.
• Reduction in net sales from $36.1 billion to $35.5 billion.
• The annual base salary increased to $720,000 effective August 1, 2023, with future adjustments.
• The company amended the Stock Plan for Non-Employee Directors, increasing the initial equity grant value to $130,000.
• Note 114 was added, providing information on the equity compensation plans, with significant changes in the number of securities issued.
• The target incentive compensation increased from 45% to 100% for 2023.
• Decrease in capital expenditures from $1.04 billion to $0.77 billion.
• The number of shares issued for the 1.25% Senior Notes due 2023 increased from 1 billion to 1.3 billion.
• Clarification on the presumption of restrictions applying when associated with a Competing Business.
• The company updated the Offer Letter for a new President, maintaining an $800,000 annual base salary.
• The Policy specifies the Clawback Period as the three completed fiscal years preceding the Restatement Date.
• The target grant date value for annual long-term incentive awards is $3,100,000 starting in 2023.
• The company introduced a Noncompete Agreement for select management employees, outlining restrictions and obligations.
• The number of shares issued for the 0.75% Senior Notes due 2032 decreased from 750 million to 500 million.
• Increase in long-lived assets from $61.5 billion to $62.3 billion.
• The company included an Intellectual Property and Non-Competition Agreement, emphasizing protection of confidential information and inventions.
• Reduction in total segment profit from $8.3 billion to $7.7 billion.
• The company added a clause regarding the ownership of inventions made during employment, ensuring exclusive rights to Honeywell.
• Decrease in interest paid from $649 million to $375 million.
• The company implemented a clause on the disclosure of inventions after termination, requiring disclosure to Honeywell's Law Department.
• Increase in total net payments for repositioning and other charges from $459 million to $512 million.
• The company included a provision on cooperation with Honeywell and assignment of rights for intellectual property protection.