Honeywell 2008 Annual Report Download - page 189

Exhibit 10.7
HONEYWELL INTERNATIONAL INC. SEVERANCE PLAN
FOR SENIOR EXECUTIVES
Amended and restated, effective as of January 1, 2009
PART I
GENERAL PROVISIONS
1. Purpose.
The purpose of the Honeywell International Inc. Severance Plan for Senior Executives (the “Plan”) is to provide severance related benefits to selected
eligible employees of a Honeywell Employer (as defined in Part II of the Plan) who are employed in a position in Career Band 6 or above and whose
employment relationship is involuntarily terminated at the initiative of the Employer for reasons other than Gross Cause (as defined below). This Plan is
intended to be an unfunded plan for a select group of management or highly compensated employees for purposes of ERISA (as defined below).
This Plan is comprised of Part I—general provisions relating to the operation of the Plan, and Part II—special provisions that become effective only upon
a Change in Control (as defined below). As set forth herein, this Plan constitutes the amendment and restatement, as of January 1, 2009, of the Severance Plan
for Senior Executives established by Allied Corporation on March 31, 1983 and amended and restated by AlliedSignal Inc. as of April 25, 1988, January 1,
1990, April 29, 1991, January 1, 1994, May 1, 1999 and amended and restated by the Company as of December 20, 2001. The Plan is now hereby amended
and restated effective as of January 1, 2009 to implement changes required pursuant to and consistent with Section 409A of the Code.
As used throughout the Plan unless otherwise clearly or necessarily indicated by context:
(a) “Annual Base Salary” means an amount equal to the product of Base Salary and twelve.
(b) “Annual Incentive Compensation” means, except as provided in Section 19(b), the product of (i) times (ii), where (i) is the target percentage that
would be utilized in determining the Incentive Award for the Participant in the calendar year in which Participant’s Covered Termination occurs, and (ii) is
Annual Base Salary.
(c) “Base Salary” means the monthly base salary payable to a Participant at the highest rate in effect during any of the 36 months preceding a Covered
Termination.
(d) “Board” means the Board of Directors of the Company.