Honeywell 2006 Annual Report Download - page 171

Notwithstanding the foregoing, a participant's "earnings" do include (i) any salary reduction amount elected by the participant and
credited to a cafeteria plan (as defined in section 125 (c) of the Code) or a qualified cash or deferred arrangement (as defined in
section 401 (k) of the Code) and (ii) the initial value ascribed to any performance shares award the participant elects to receive in lieu
of a portion of his annual discretionary cash bonus.
2.4 Payment of Benefits. Each participant's Employment Agreement provides that in no event shall his Employment Period be
extended beyond his 65th birthday except by mutual agreement of the participant and his employer. Subject to the conditions and
limitations of the plan, upon a participant's attainment of age 65 years, he shall be entitled to a monthly benefit payable for his life
commencing upon his attainment of age 65 years in an amount equal to one-twelfth (1/12) of the sum of the participant's accrued
supplemental retirement benefits. A participant's supplemental retirement benefits shall be paid to him in the form described below
that applies to the participant; provided, however, that in lieu of payment in the normal form described below, the participant may
irrevocably elect, within thirty (30) days after his commencement of participation in the plan, to receive his supplemental retirement
benefits in a single lump sum as soon as practicable after his attainment of age 65 years. A participant's "supplemental retirement
benefit commencement date" means the date of which the initial payment (or, in the case of a single lump sum, full payment) of the
supplemental retirement benefits to which the participant is entitled is payable. Subject to the conditions and limitations of the plan, a
participant's supplemental retirement benefit commencement date shall normally be the first day of the calendar month coincident with
or next following the participant's attainment of age 65 years. Notwithstanding the immediately proceeding sentence, if a participant's
Employment Period under his Employment Agreement terminates prior to his attainment of age 65 years and he is eligible, and elects,
to receive early retirement benefits under the retirement plan, and if the participant requests a supplemental retirement benefit
commencement date prior to his attainment of age 65 years, then with (but only with) the consent of the committee (as defined in
section 3.1 below), the participant's supplemental retirement benefit commencement date shall be such earlier date, if any, selected by
the committee. Supplemental retirement benefits that are paid in a lump sum, or commence, before the participant's attainment of age
65 years, if any, shall be subject to actuarial reduction in accordance with section 2.5 below.
(a) Life Annuity. If a participant does not have a spouse (as defined in section 2.7 below) on his supplemental retirement benefit
commencement date, and if he has not elected pursuant to the proceeding provisions of this section 2.4 to receive his
supplemental retirement benefits in a single lump sum, payment of his supplemental retirement benefits shall be during his
lifetime on a life annuity basis.
(b) Joint and Survivor Annuity. If a participant has a spouse (as defined in section 2.7 below) on his supplemental retirement benefit
commencement date, payment of his supplemental retirement benefits shall be in the form of a joint and 50 percent survivor
annuity unless the participant has theretofore elected pursuant to the preceding provisions of this section 2.4 to have his benefits
provided in a single lump sum. Such joint and 50 percent survivor annuity shall consist of reduced monthly benefit continuing
during the participant's lifetime, and if such spouse is living at the time of the participant's death, payment of 50 percent of such
monthly benefit shall be made to such spouse until such spouse's death occurs. The amount of the participant's and such spouse's
benefits under this subsection shall be calculated so
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