Dear Business Partner,

As announced in October 2017, Honeywell International Inc. intends to spin-off its Homes and ADI Global Distribution business into a standalone, independent publicly traded company by the end of 2018. Due to the different structure of the current Honeywell legal entities in different countries, spin-off might involve various steps including a legal entity change.

Specifically in the Czech Republic, there will be a new legal entity created named Ademco CZ s.r.o. which will be the successor organisation of the Homes and ADI businesses that are to be spun-off from the current Honeywell, spol. s r.o.. Similar to the current legal structure within Honeywell, spol. s r.o., ADI Global Distribution will have its own “branch office” called Ademco CZ s.r.o. – Security Products o.z. The entire ADI Global Distribution business will spin-off and no current ADI employees stay in Honeywell.

We are currently preparing for the separation and many of these changes are behind the scenes. From the day to day process points of view, we are endeavouring to minimize the changes. We will still work with the same ERP system as before the separation. Most of the changes that will require action on your part will be related to the move of ADI Global Distribution Czech Republic to the new legal entity. Below are some high-level milestones to help you prepare your teams.

Jul / Sept:

• As part of the newly created Homes and ADI business, ADI Global Distribution Czech Republic will start operating from the new legal entity Ademco CZ s.r.o. – Security Products o.z. as of 30th July 2018. This entity will still be owned by Honeywell.
• As a result ADI will have new ID Number, VAT and bank accounts.
• New company details are attached at the end of this letter.
• Please change the company details in your systems accordingly.
• Pending orders, quotes, duties, payables and most agreements of ADI Czech Republic will be allocated to the new ADI legal entity Ademco CZ s.r.o. – Security Products o.z..
• We will execute the computer systems’ separation from Honeywell.

Sept to end of 2018:

• Honeywell will prepare its new Homes and ADI Global group of companies (that will include Ademco CZ s.r.o – Security Products o.z) to be a new publicly traded corporation.

Please be assured that we will continue to communicate with you in a timely manner on the specifics of any changes required to your systems. Throughout this process our priority is to ensure that our systems, processes and relationships with you, our customers and vendors, are not negatively impacted. If you have any questions, please contact your sales representative, customer service representative or purchasing department.

Thank you for your business and continued support.

Sincerely,

Jaroslav Rataj
ADI Global Distribution Czech Republic
Branch Office Manager
Honeywell spol. s r.o. – Security Products o.z.