Honeywell 2005 Annual Report Download - page 213

existing at the time it becomes a Subsidiary of the Company or at the time it is merged into or consolidated with the Company or a Subsidiary
of the Company;
(ii) Liens on property of the Company or its Subsidiaries existing at the time of acquisition thereof or incurred to secure the payment of
all or part of the purchase price thereof or to secure Debt incurred prior to, at the time of or within 24 months after acquisition thereof for the
purpose of financing all or part of the purchase price thereof;
(iii) Liens on property of the Company or its Subsidiaries (in the case of property that is, in the opinion of the Board of Directors of the
Company, substantially unimproved for the use intended by the Company) to secure all or part of the cost of improvement thereof, or to
secure Debt incurred to provide funds for any such purpose;
(iv) Liens which secure only Debt owing by a Subsidiary of the Company to the Company or to another Subsidiary of the Company;
(v) Liens in favor of the United States of America, any State, any foreign country, or any department, agency, instrumentality, or
political subdivisions of any such jurisdiction, to secure partial, progress, advance or other payments pursuant to any contract or statute or to
secure any Debt incurred for the purpose of financing all or any part of the purchase price or cost of constructing or improving the property
subject thereto, including, without limitation, Liens to secure Debt of the pollution control or industrial revenue bond type; or
(vi) any extension, renewal or replacement (or successive extensions, renewals or replacements), in whole or in part, of any Lien
referred to in the foregoing clauses (i) to (v) inclusive of any Debt secured thereby, provided that the principal amount of Debt secured thereby
shall not exceed the principal amount of Debt so secured at the time of such extension, renewal or replacement, and that such extension,
renewal or replacement Lien shall be limited to all or part of the property which secured the Lien extended, renewed or replaced (plus
improvements on such property);
provided, however, that, the Company and any one or more Subsidiaries owning Restricted Property may issue, assume or guarantee Debt secured by
Liens which would otherwise be subject to the foregoing restrictions in an aggregate principal amount which, together with the aggregate outstanding
principal amount of all other Debt of the Company and its Subsidiaries owning Restricted Property that would otherwise be subject to the foregoing
restrictions (not including Debt permitted to be secured under clause (i) through (vi) above) and the aggregate value of the Sale and Leaseback
Transactions in existence at such time, does not at any one time exceed 10% of the Net Tangible Assets of the Company and its Consolidated
Subsidiaries; and provided further that the following type of transaction, among others, shall not be deemed to create Debt secured by Liens: Liens
required by any contract or statute in order to permit the Company or any of its Subsidiaries to perform any contract or subcontract made by it
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