Honeywell 2008 Annual Report Download - page 212

event shall such Open Enrollment Period end later than the December 31 that precedes the Plan Year for which the election to
participate in the Plan applies. For purposes of this Plan, the “Plan Year” shall mean the calendar year.
3. Participation. Each Eligible Employee who wishes to participate in the Plan for a particular Plan Year (a “Participant”) must file a
written deferral election (the “Election Form”) with the Committee during the Open Enrollment Period, which election shall designate
the portion of the compensation elements (as described in Paragraph 4 below) to be deferred for such Plan Year and the form in which
such deferral amounts, and interest thereon, shall be distributed (as described in Paragraph 8 below). The compensation elements
deferred for a particular Plan Year shall be credited to an unfunded deferred compensation account maintained for the Participant
under the Plan (the “Participant Account” or “Account”). Except as otherwise may be permitted by Section 409A of the Code and the
Committee, a Participant may not modify his or her deferral election for a Plan Year at any time during the Plan Year.
4. Contributions to Participant Accounts.
(a) Incentive Awards. During the Open Enrollment Period, an Eligible Employee may elect on his Election Form to defer up to
100% of the cash bonus payable (with such deferral in a whole percentage and 10% increment) to such Eligible Employee under the
Honeywell International Inc. Incentive Compensation Plan for Executive Employees (or any successor plan) or the Honeywell Capital
Management LLC Incentive Compensation Plan (or any successor plan) (each an “Incentive Award”), for the performance period
under the applicable incentive plan that begins in the Plan Year that commences after the Open Enrollment Period.
(b) Base Annual Salary. For Plan Years beginning before January 1, 2006, an Eligible Employee who was employed in Career
Band 6 and above (or an Eligible Employee who occupied a position equivalent thereto) was permitted prior to the beginning of the
applicable Plan Year (and with respect to a newly Eligible Employee, within 30 days after first becoming so eligible) to elect to defer
an aggregate amount of base annual salary otherwise payable in such Plan Year (or with respect to a newly Eligible Employee, in the
remainder of the Plan Year), exclusive of any bonus or any other compensation or allowance paid or payable by the Corporation or its
affiliates (the “Base Annual Salary”). The amount deferred under this Paragraph 4(b) was not permitted to be greater than 50% of the
Eligible Employee’s Base Annual Salary for any pay period. Effective July 29, 2005, no new deferral elections were permitted under
this Paragraph 4(b) for the remainder of the Plan Year beginning January 1, 2005. For Plan Years beginning on and after January 1,
2006, no Eligible Employee may elect to defer any portion of his Base Annual Salary under the Plan.
(c) Deferral Amounts. All amounts determined under this Paragraph 4 which are the subject of an Election Form (the “Deferral
Amounts”) shall, in accordance with the relevant Participant direction, be credited to the relevant Participant Account maintained
under the Plan on the same day the Base Annual Salary or Incentive Award would otherwise have been payable.
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