Honeywell 2003 Annual Report Download - page 42

2. Participation.
(a) An employee of an Employer who is at any time a Participant shall
continue to be a Participant in the Plan until the earlier of (i) the
date the employment relationship with the Employer is severed for
reasons other than a Covered Termination, or (ii) the date the employee
ceases to be employed in a position equivalent to Career Band 6 or
above; provided, however, any employee who ceases to be employed in a
position equivalent to Career Band 6 or above on or after a Change in
Control shall nevertheless continue to be a Participant in the Plan.
(b) A Participant in the Plan who is at any time the subject of a Covered
Termination shall continue to be a Participant until all of the
benefits for which he or she is entitled under Section 3, if any, have
been paid.
3. Severance Benefits.
(a) Eligibility for Benefits. Subject to subparagraph (b) below, a
Participant who is the subject of a Covered Termination shall receive
the benefits described in this Section 3.
(i) Pay Continuation.
(A) An Existing Participant shall receive a benefit in an amount
equal to his or her Base Salary multiplied by the relevant
Severance Pay Factor determined as follows (a detailed
schedule of each Existing Participant's Severance Pay Factor
is attached hereto as Exhibit A):
Salary Grade as of July 1, 1993 Severance Pay Factor
------------------------------- --------------------
20 and 21 18
22 and 23 24
24 and above 36
Provided, however, that the Severance Pay Factor of an
Existing Participant, whose Salary Grade is reduced after a
Change in Control, shall not be reduced.
(B) An Officer Participant shall receive a benefit in an amount
equal to his or her Base Salary multiplied by a Severance Pay
Factor of 18 (or 36 in the case of an Officer Participant who
is an Executive Vice President or Senior Vice President), or
following a Change in Control, a Severance Pay Factor of 24
(36 in the case of an Officer Participant who is an Executive
Vice President or Senior Vice President).
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