Honeywell 2006 Annual Report Download - page 172

that it is the actuarial equivalent of the supplemental retirement benefits to which the participant would otherwise be entitled
under the plan. If such spouse predeceases the participant, or if the participant and such spouse cease to be married after the
participant's supplemental retirement benefits commencement date, there shall be no adjustment to the participant's monthly
payments and no supplemental retirement benefits shall be payable to any person after the participant's death.
2.5 Actuarial Equivalent. A benefit shall be actuarially equivalent to another benefit if the actuarial reserve required to provide such
benefit is equal to the actuarial reserve required to provide such other benefit, computed on the basis of the same actuarial
assumptions, interest rates, tables, methods and procedures, including reduction factors for commencement of payments prior to
attainment of age 65 years, that are used for purposes of the retirement plan as in effect on the applicable date that a benefit payment
amount is determined.
2.6 Pre-Retirement Surviving Spouse Benefit. If a participant dies prior to his supplemental retirement benefit commencement date, no
supplemental retirement benefits under the plan shall be paid or payable with respect to the participant; provided, however, that if the
participant has a spouse (as defined in section 2.7 below) at the time of his death, such spouse shall be entitled to receive a monthly
benefit for such spouse's lifetime equal to 50 percent of the amount of monthly benefit that would have been payable to the participant
in the form of a joint and 50 percent survivor annuity if he had terminated employment as of the date of his death with entitlement to
supplemental retirement benefits under the plan and the committee (as defined in section 3.1 below) had permitted his supplemental
retirement benefits commencement date to occur on the first day of the calendar month coincident with or next following the date of
his death, taking into account actuarial reduction for commencement prior to the participant's attainment of age 65 years. The first
payment to the spouse shall be made as of the first day of the calendar month coincident with or next following the date of
participant's death and the final payment shall be made as of the first day of the calendar month during which the spouse's death
occurs. If, prior to the participant's death, the participant had elected pursuant to section 2.4 above to receive his supplemental
retirement benefits in a single lump sum, in lieu of the monthly payments described above, such spouse shall be entitled to receive a
single lump sum equal to 50 percent of the lump sum value of the participant's supplemental retirement benefits as of the date of his
death, taking into account actuarial factors for payment prior to the participant's attainment of age 65 years. Such lump sum payment
shall be made to such spouse as soon as practicable following the participant's death.
2.7 Spouse. For purposes of the plan, a person will be considered the "spouse" of a participant as of any date if and only if such person
and the participant have been married in a religious or civil ceremony recognized under the laws of the state where the marriage was
contracted and the marriage remains legally effective. Any person which is not, or who has ceased to be, a participant's "spouse" on
the participant's supplemental retirement benefit commencement date (or, in the event of the participant's death prior to his
supplemental retirement benefits commencement date, the date of his death) shall not be considered the participant's "spouse" for
purposes of the plan.
2.8 Forfeiture Early Termination of Employment Period. If the participant's Employment Period ends early pursuant to paragraph 5 of
his Employment Agreement on account of a Termination for Cause or a Termination by Executive with Advance Notice (as such
terms are defined, respectively, in his Employment Agreement), or if after the participant's Employment
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