Honeywell 2008 Annual Report Download - page 175

that, for 2005, Participant Deferred Contributions credited to the Executive Supplemental Savings Plan between January 1, 2005 and
December 31, 2005 shall accrue amounts (to be posted each Valuation Date) equivalent to interest, compounded daily, at a rate equal
to 8%. The interest rate described in this paragraph is subject to change from Plan Year to Plan Year and shall be determined annually
by the Chief Financial Officer of the Corporation in consultation with the Treasurer of the Corporation prior to January 1 of each Plan
Year.
(iii) Participant Deferred Contributions credited to the Participant's Account under the Executive Supplemental Savings Plan
prior to January 1, 1994 or after the Participant has terminated employment shall accrue amounts (to be posted each 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. The interest rate described in this paragraph is subject to change from Plan Year to Plan Year and shall be determined annually
by the Chief Financial Officer of the Corporation in consultation with the Treasurer of the Corporation prior to January 1 of each Plan
Year.
(iv) Participant Deferred Contributions credited to the Participant's Account under the Executive Supplemental Savings Plan
between January 1, 1994 and December 31, 2004, but before a Participant terminates employment, shall accrue amounts (to be posted
each Valuation Date) equivalent to interest, compounded daily, at a rate determined annually by the Management Development and
Compensation Committee (the "Committee") of the Board of Directors of the Corporation (the "Board"). The rate established in the
preceding sentence shall not exceed the greater of (i) 10% (8% for Participant Deferred Contributions credited on or after January 1,
2004 and such other percentage that may be established by the Committee for subsequent Plan Years), or (ii) 200% of the 10-year
U.S. Treasury Bond rate at the time of determination and, once established for a Plan Year, shall remain in effect with respect to all
Participant Deferred Contributions credited to the Participant's Account during such Plan Year until such amounts are distributed.
(c) Plan Employer Contributions. Plan Employer Contributions shall be credited to the Participant's Account under the Plan as
unfunded book entries stated as shares of Common Stock (including fractional shares). The number of shares of Common Stock
credited to a Participant's Account shall be determined by dividing the equivalent cash amount (as determined under Subparagraph
5(b)) by the closing price of Common Stock on the day that such Plan Employer Contributions are credited to the Participant's
Account. Amounts equivalent to the dividends that would have been payable in respect of the Common Stock shall be credited to the
Participant's Account as if reinvested in Common Stock, with the number of shares credited determined by dividing the equivalent
cash dividend amount by the closing price of Common Stock on the date the dividends would have been payable. Amounts credited to
the Participant's Account shall accrue amounts equivalent to interest and dividends, as the case may be, until distributed in accordance
with the Plan.
(d) Grandfathered and Non-Grandfathered Accounts. The aggregate amount of the Participant's Deferred Contributions, plus
earnings credited thereon pursuant to this Paragraph 6
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