Honeywell 2008 Annual Report Download - page 149

option exercise price or tax withholding obligations, are reacquired with cash tendered in satisfaction of an
option exercise price or with monies attributable to any tax deduction enjoyed by Honeywell to the exercise of
an option, and are under any outstanding awards assumed under any equity compensation plan of an entity
acquired by Honeywell.
The number of shares that may be issued under the Honeywell Global Stock Plan as of December 31, 2008
is 3,093,821. This plan is an umbrella plan for five plans maintained solely for eligible employees of
participating non-U.S. countries. One sub-plan, the Global Employee Stock Purchase Plan, allows eligible
employees to contribute between 2.2% and 8.8% of base pay from January through September of each year
to purchase shares of Common Stock the following November at the fair market value on the date of
purchase. Participant accounts are credited with matching shares equal to 20% of their contributions that are
subject to continued employment for 3 years. For 2008, Honeywell used Treasury shares to provide the
shares under this plan. Employees purchased and were credited with 197,034 shares of Common Stock in
2008.
Another sub-plan, the UK Sharebuilder Plan, allows an eligible UK employee to contribute a specified
percentage of taxable earnings that is then invested in shares. The company matches those shares and
dividends paid are used to purchase additional shares. Matched shares are subject to a three-year vesting
schedule. Shares taken out of the plan before five years lose their tax-favored status. For the year ending
December 31, 2008, 102,466 shares were credited to participants' accounts under the UK Sharebuilder Plan.
The remaining three sub-plans, Honeywell International Technologies Employees Share Ownership Plan
(Ireland), the Honeywell Measurex (Ireland) Limited Group Employee Profit Sharing Scheme and the
Honeywell Ireland Software Employees Share Ownership Plan, allow eligible Irish employees to contribute
specified percentages of base pay, bonus or performance pay that are then invested in shares. Shares must
be held in trust for at least two years and lose their tax-favored status if they are taken out of the plan before
three years. For the year ending December 31, 2008, 32,070 shares were credited to participants' accounts
under these three plans.
The remaining 342,000 shares included in column (c) are shares remaining for future grants under the Non-
Employee Director Plan.
(4) Equity compensation plans not approved by shareowners that are included in the table are the Supplemental
Non-Qualified Savings Plan for Highly Compensated Employees of Honeywell International Inc. and its
Subsidiaries, the AlliedSignal Incentive Compensation Plan for Executive Employees of AlliedSignal Inc. and
its Subsidiaries, and the Deferred Compensation Plan for Non- Employee Directors of Honeywell International
Inc.
The Supplemental Non-Qualified Savings Plan for Highly Compensated Employees of Honeywell
International Inc. and its Subsidiaries is an unfunded, non-tax qualified plan that provides benefits equal to
the employee deferrals and company matching allocations that would have been provided under Honeywell's
U.S. tax-qualified savings plan if the Internal Revenue Code limitations on compensation and contributions
did not apply. The company matching contribution is credited to participants' accounts in the form of notional
shares of Common Stock. Additional notional shares are credited to participants' accounts equal to the value
of any cash dividends payable on actual shares of Common Stock. The notional shares are distributed in the
form of actual shares of Common Stock when payments are made to participants under the plan.
The AlliedSignal Incentive Compensation Plan for Executive Employees of AlliedSignal Inc. and its
Subsidiaries was a cash incentive compensation plan maintained by AlliedSignal Inc. This plan has expired.
Employees were permitted to defer receipt of a cash bonus payable under the plan and invest the deferred
bonus in notional shares of Common Stock. The notional shares are distributed in the form of actual shares of
Common Stock when payments are made to participants under the plan. No further deferrals can be made
under this plan. The number of shares of Common Stock that remain to be issued under this expired plan as
of December 31, 2008 is 51,539.
The Deferred Compensation Plan for Non-Employee Directors of Honeywell International Inc. provides for
mandatory and elective deferral of certain payments to non-employee directors. Mandatory deferrals are
invested in notional shares of Common Stock. Directors may also invest
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