Honeywell 2008 Annual Report Download - page 217

in consultation with the Treasurer of the Corporation prior to January 1 of each Plan Year. Interest Equivalents described in this
clause (i) shall be vested at the time such amounts are credited to the Participant’s Non-Grandfathered Account. All Interest
Equivalents credited to the Participant’s Non-Grandfathered Account pursuant to this clause (i) shall be paid at the same time and
in the same form as the corresponding Deferral Amounts for which the Interest Equivalents relate.
(ii) Deferral Amounts Credited for the 2005 Plan Year. Deferral Amounts under Paragraph 4(b) credited to a Participant’s Non-
Grandfathered Account in the 2005 Plan Year for the Election Form filed by the Participant for the 2005 Plan Year shall accrue
Interest Equivalents at a single rate established by the Committee, in its sole discretion. Such rate is subject to change from Plan
Year to Plan Year with respect to amounts credited to a Participant’s Non-Grandfathered Account for the 2005 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. The rate of notional interest established hereunder shall be set forth on Schedule A attached
hereto and made a part hereof. Any portion of such rate designated as the “Contingent Rate” shall become nonforfeitable only if
the Participant is still employed by the Corporation or any affiliate at the end of the third full calendar year in which the Deferral
Amount relates; provided, however, in the event a Participant terminates employment with the Corporation or an affiliate prior to
such date for reasons other than gross cause, the Committee shall treat such portion as nonforfeitable in the event the Participant’s
employment with the Corporation or an affiliate is involuntarily terminated (including a termination for “good reason” under any
applicable severance plan of the Corporation or an affiliate) or is terminated for such reasons as the Committee may determine
from time to time in its sole discretion. All Interest Equivalents credited to the Participant’s Non-Grandfathered Account pursuant
to this clause (ii) shall be paid at the same time and in the same form as the corresponding Deferral Amounts for which the Interest
Equivalents relate.
2002-2004 Deferrals. 2002-2004 Deferrals shall accrue Interest Equivalents at a single rate established by the Committee, in its
sole discretion. The rate established by the Committee shall not exceed the greater of (i) 10% or (ii) 200% of the 10-year U.S.
Treasury Bond rate at the time of determination. Such Interest Equivalents, once established for a Plan Year, shall remain in effect
with respect to Deferral Amounts credited to the Participant’s Non-Grandfathered Account for each such Plan Year until the
Deferral Amounts are distributed. The rate of notional interest established hereunder shall be set forth on Schedule A attached
hereto and made a part hereof. Any portion of such rate designated as the “Contingent Rate” shall become nonforfeitable only if
the Participant is still employed by the Corporation or any affiliate at the end of the third full calendar year in which the Deferral
Amount relates, provided, however, in the event a Participant has a Separation from Service with the Corporation or an affiliate
prior to such date for reasons other than gross cause, the Committee shall treat such portion as nonforfeitable in the event the
Participant’s employment with the Corporation or an affiliate is involuntarily terminated (including a termination for “good
reason” under any applicable severance plan of the Corporation or an affiliate). Notwithstanding the
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