Honeywell 2008 Annual Report Download - page 174

(b) Plan Employer Contributions. There shall be credited to the Participant's Account employer contributions under the Plan ("Plan
Employer Contributions") in an aggregate amount equal to (i) minus (ii), where (i) is 50% (for Participants entitled to a 50% Employer
Contribution in the Qualified Savings Plans) or 100% (for Participants entitled to a 100% Employer Contribution in the Qualified
Savings Plans) of the lesser of (x) 8% of the Participant's Base Annual Salary without regard to any limitations that may apply under
the Code, or (y) the sum the Participant contributes as Before-Tax Contributions and/or After-Tax Contributions to the Qualified
Savings Plans and as Participant Deferred Contributions, and (ii) is the total amount of Employer Contributions contributed to the
Participant's account under the Qualified Savings Plans; provided, however, that in no event shall the combined Plan Employer
Contributions and Savings Plan Employer Contributions exceed 8% of the Participant's Base Annual Salary without regard to any
limitations that may apply under the Code, and provided, further, that Plan Employer Contributions shall not be made with respect to a
Participant during any period of suspension of Employer Contributions with respect to such Participant under the terms of the
Qualified Savings Plans, whether or not such Participant continues to make Participant Contributions under the Qualified Savings
Plans during the period of such suspension.
(c) Vesting. Participant Deferred Contributions and Plan Employer Contributions (collectively "Total Contribution Amounts") and
all amounts accrued with respect to Total Contribution Amounts in accordance with Paragraph 6, shall be vested at the time such
amounts are credited to the Participant's Account.
(d) All Contributions Prorated. Total Contribution Amounts shall be credited to a Participant's Account each pay period.
6. The Participant's Account.
(a) Types of Accounts. A Participant's Account shall consist of two sub-accounts, as applicable: (1) a sub-account which consists
of Participant Deferred Contributions and Employer Contributions to the Plan, and interest earned thereon, for amounts that were
earned and vested as of December 31, 2004 (the "Grandfathered Account"), and (2) a sub-account which consists of Participant
Deferred Contributions and Employer Contributions to the Plan, and interest earned thereon, for amounts that are earned and vested on
or after January 1, 2005 (the "Non-Grandfathered Account").
(b) Participant Deferred Contributions.
(i) Participant Deferred Contributions shall be credited to the Participant's Account under the Plan as unfunded book entries
stated as cash balances.
(ii) Participant Deferred Contributions credited to the Participant's Account after December 31, 2004, and all Participant
Deferred Contributions credited to a Participant's Account under the Supplemental Savings Plan before January 1, 2006, shall accrue
amounts (to be posted on the Valuation Date) equivalent to interest, compounded daily, at a rate based upon the cost to the
Corporation of borrowing at a fixed rate for a 15-year term; provided however
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