Honeywell 2003 Annual Report Download - page 43

(C) A New Participant shall receive a benefit in an amount equal
to his or her Base Salary multiplied by a Severance Pay
Factor of 12.
(ii) Annual Incentive Compensation. An Existing Participant or an
Officer Participant shall receive a benefit in an amount equal to
his or her Annual Incentive Compensation multiplied by the
applicable Pro Rata Factor. The Pro Rata Factor shall be
determined for the calendar year in which a Covered Termination
occurs and each calendar year thereafter through the end of the
calendar year in which the Severance Period ends.
(iii) Benefit Continuation. For the duration of the Severance Period,
the Employer will continue the Participant's employee benefits
including, without limitation, continuation of the Participant's
savings plan participation (to the extent permissible under
Section 401(a) of the Code, provided, however that company
matching contributions for Participants shall be limited to
eighteen months and basic and contributory life and medical
insurance (including qualified dependents) ("welfare plan
coverage"), at the active employee coverage level and prevailing
employee contribution rate, if any; provided, however, (A) that
such level of welfare plan coverage shall not exceed the level of
welfare plan coverage in effect on the date of the Participant's
Covered Termination, (B) that such continuation of welfare plan
coverage will cease on the date similar benefits are provided the
Participant by a subsequent employer, (C) executive perquisites,
such as automobiles or memberships, will be governed by the terms
of the particular programs, and (D) that no employee benefit
shall be continued for a longer period of time than that provided
by the terms of the controlling employee benefit plan applicable
to the Participant on the date of such Participant's Covered
Termination. Notwithstanding the foregoing (but subject to
Sections 5 and 20(c)), to the extent that a Participant was
provided with a flex-perk allowance, executive liability and auto
insurance or an executive life insurance plan or policy
immediately prior to a Covered Termination, such benefit or
benefits shall be continued for the duration of the Severance
Period.
(iv) Pension Service Continuation. Except as otherwise provided by an
applicable pension plan and, subject to the requirements for
qualification of Section 401(a) of the Code, only the first
twelve (12) months of the Severance Period, Pay Continuation and
Prorated Annual Incentive Compensation will be recognized for
purposes of the vesting and pension calculation provisions of the
AlliedSignal Inc. Retirement Program or any other pension plan
sponsored by an Employer in which the Participant participates.
The normal policy for qualifying leaves remains applicable
thereafter.
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