Honeywell 2008 Annual Report Download - page 233

employee, provide a benefit in the form of a life annuity for the employee (and the employee's joint annuitant or beneficiary) as provided under
the terms of the contractual agreement.
Article IV - Supplemental Benefit
4.01 Payment of Supplemental Benefit
(a) Supplemental Benefits shall be payable directly to such participant, or such participant's joint annuitant or beneficiary, as applicable, from
the general assets of Honeywell and Honeywell shall not be under any obligation to set aside any funds or other assets for the payment of the
Supplemental Benefits under this Plan. Honeywell may, in its sole discretion, establish funds for payment of these Supplemental Benefits.
However, any and all such funds shall remain assets of Honeywell and subject to the claims of creditors of the corporation. Such funds, if any,
shall not be deemed to be assets of this Plan.
Notwithstanding the preceding paragraph, the Committee is authorized (but not required) to cause Honeywell (or any successor thereto) to
fund all or a part of the Supplemental Benefits for such participant or participants as it may select in its sole discretion from time to time. The
amount of such funded Supplemental Benefits shall not be assets of Honeywell and shall not be subject to the claims of creditors of Honeywell.
Such participants, if any, and the amount of any funded Supplemental Benefits shall be designated in Appendix A and the Supplemental
Benefits of any participant not designated in Appendix A or the portion of any Supplemental Benefit not funded as designated in Appendix A
shall not be so funded and shall remain subject to the provisions of the preceding paragraph of this Section 4.01(a) . A participant designated
on Appendix A who is married on the date any funded Supplemental Benefits commence under Section 4.01(b) must obtain the written consent
of the participant's spouse in the form and manner prescribed by the Committee to the election of any form of payment of such funded
Supplemental Benefits other than a 50% joint and survivor annuity with the participant's spouse designated as the joint annuitant. The
Committee is authorized to select, appoint and remove trustees or other entities or individuals, to enter into, amend and terminate trust or other
agreements, to create trust or other secured funds, to cause Honeywell to make contributions to such funds in such amounts as the Committee
may determine from time to time and to take all other actions that it may determine to be necessary or helpful in implementing the funding,
including providing for the payment of Supplemental Benefits in accordance with applicable law.
(b) The following rules shall be used in determining the time and form of payment for a participant’s Supplemental Benefit:
(1) Except as otherwise provided in this paragraph (b), the Actuarial Equivalent value of a participant’s Supplemental Benefit shall be
paid in a single lump sum payment as of the first day of the month following 105 days after the later of the participant’s Separation from Service
Date or Earliest Retirement Date. For purposes of this clause (1), the Earliest Retirement Date of a participant who participates in the
Retirement Earnings Plan formula of the Pension Plan shall be his Separation from Service Date.