EXHIBIT 10.4
2011 Stock Incentive Plan
of Honeywell International Inc. and its
Affiliates
Stock
Option Award Agreement
STOCK OPTION AWARD AGREEMENT made
in ▇▇▇▇▇▇ Township, New Jersey, as of the [DATE] (the “Date of Grant”), between Honeywell International Inc. (the “Company”)
and __________________ (the “Employee”).
| 1. | Grant of Option. The Company has granted you an
Option to purchase ________ Shares of Common Stock, subject to the provisions of this Agreement and the 2011 Stock Incentive
Plan for Employees of Honeywell International Inc. and its Affiliates (the “Plan”). This Option is a nonqualified Option. |
| 2. | Exercise Price. The purchase price of the Shares
covered by the Option will be _____ per Share. |
| 3. | Vesting. Except in the event of your death or
Disability or as otherwise provided in Section 8 of this Agreement relating to a Change in Control, the Option will become exercisable
as follows: [DESCRIBE VESTING PROVISIONS CONSISTENT WITH THE PLAN]. |
| 4. | Term of Option. The Option must be exercised prior
to the close of the New York Stock Exchange (“NYSE”) on [EXPIRATION DATE], subject to earlier termination or cancellation
as provided below. If the NYSE is not open for business on the expiration date specified, the Option will expire at the close of
the NYSE on the business day immediately preceding [EXPIRATION DATE]. |
| 5. | Payment of Exercise Price. You may pay the Exercise
Price by cash, certified check, bank draft, wire transfer, postal or express money order, or any other alternative method specified
in the Plan and expressly approved by the Committee. Notwithstanding the foregoing, you may not tender any form of payment that
the Committee determines, in its sole and absolute discretion, could violate any law or regulation. |
| 6. | Exercise
of Option. Subject to the terms and conditions of this Agreement, the Option may
be exercised by contacting the Honeywell Stock Option Service Center, managed by ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, by telephone at ▇-▇▇▇-▇▇▇-▇▇▇▇ or ▇-▇▇▇-▇▇▇-▇▇▇▇, or on the internet
at ▇▇▇.▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇. If the Option is exercised
after your death, the Company will deliver Shares only after the Committee has determined
that the person exercising the Option is the duly appointed executor or administrator
of your estate or the person to whom the Option has been transferred by your will or
by the applicable laws of descent and distribution. |
| 7. | Termination, Retirement, Disability or Death.
The Option will vest and remain exercisable as follows: |
| Event |
Vesting |
Exercise |
| Death |
Immediate vesting as of death. |
Expires earlier of (i) original expiration date, or (ii) 3 years after death. |
| Disability |
Immediate vesting as of incurrence of Disability. |
Expires earlier of (i) original expiration date, or (ii) 3 years after Disability. |
|
Full Retirement
(Termination of
Employment on or after age 60 and 10
Years of Service) |
Unvested Awards forfeited as of Full Retirement. |
Expires earlier of (i) original expiration date, or (ii) 3 years after retirement. |
|
Early Retirement
(Termination of
Employment on or after age 55 and 10 Years
of Service) |
Unvested Awards forfeited as of Early Retirement. |
Expires earlier of (i) original expiration date, or (ii) 3 years after retirement. |
| Voluntary termination |
Unvested Awards forfeited as of Termination of Employment. |
Expires earlier of (i) original expiration date, or (ii) 30 days after termination. |
| Involuntary termination not for Cause |
Unvested Awards forfeited as of Termination of Employment. |
Expires earlier of (i) original expiration date, or (ii) 1 year after termination. |
| Involuntary termination for Cause |
Unvested Awards forfeited as of Termination of Employment. |
Vested Awards immediately cancelled. |
Except as expressly provided herein, all rights
hereunder shall cease to accrue, and you will forfeit the unvested portion of this Award and all rights to continue vesting in
the Award as of your Termination of Employment. Further, you will not be entitled to receive additional awards hereunder after
your Termination of Employment.
| 8. | Change in Control. In the event that you incur
an involuntary Termination of Employment not for Cause (as defined in Section 2.7 of the Plan) or a voluntarily Termination of
Employment for Good Reason (as defined in Section 5.4(d) of the Plan) on or before the second anniversary of the date of a Change
in Control, any portion of the Option that has not vested or terminated as of your Termination of Employment will vest as of your
Termination of Employment and become exercisable in full as of the date of such Termination of Employment. |
| 9. | Withholdings. The
Company or your local employer shall have the power and the right to deduct or withhold, or require you to remit to the Company
or your local employer, an amount sufficient to satisfy taxes imposed under the laws of any country, state, province, city or other
jurisdiction, including but not limited to income taxes, capital gain taxes, transfer taxes, and social security contributions,
and National Insurance Contributions, that are |
2
required by law to be withheld with respect to
the grant of the Option, any exercise of the your rights under this Agreement, the sale of Shares acquired from the exercise of
the Option, and/or payment of dividends on Shares acquired pursuant to the Option.
| 10. | Transfer of Option. You may not transfer the Option
or any interest in the Option except by will or the laws of descent and distribution or except as permitted by the Committee and
as specified in the Plan. |
| 11. | Requirements for and Forfeiture of Award. |
| a. | General. The Award is expressly contingent upon
you complying with the terms, conditions and definitions contained in this Section 11 and in any other agreement that governs your
noncompetition with Honeywell, your nonsolicitation of Honeywell’s employees, customers, suppliers, business partners and
vendors, and/or your conduct with respect to Honeywell’s trade secrets and proprietary and confidential information. For
purposes of this Section 11, the term “Honeywell” is defined as Honeywell International Inc. (a Delaware corporation
having a place of business at Columbia Road and Park Avenue, ▇▇▇▇▇▇ Township, ▇▇▇▇▇▇ County, New Jersey), its predecessors, designees
and successors, as well as its past, present and future operating companies, divisions, subsidiaries, affiliates and other business
units, including businesses acquired by purchase of assets, stock, merger or otherwise. |
| 1. | You expressly agree and acknowledge that the forfeiture
provisions of subsection 11.b.2. of this Agreement shall apply if, from the Award Date until the date that is twenty-four (24)
months after your Termination of Employment for any reason, you (i) enter into an employment, consultation or similar agreement
or arrangement (including any arrangement for service as an agent, partner, stockholder, consultant, officer or director) with
any entity or person engaged in a business in which Honeywell is engaged if the business is competitive (in the sole judgment of
the Committee) with Honeywell and the Committee has not approved the agreement or arrangement in writing, or (ii) make any statement,
publicly or privately (other than to your spouse and legal advisors), which would be disparaging (as defined below) to Honeywell
or its businesses, products, strategies, prospects, condition, or reputation or that of its directors, employees, officers or members;
provided, however, that nothing shall preclude you from making any statement in good faith which is required by any applicable
law or regulation or the order of a court or other governmental body, or (iii) write or contribute to a book, article or other
media publication, whether in written or electronic format, that is in any way descriptive of Honeywell or your career with Honeywell
without first submitting a draft thereof, at least thirty (30) days in advance, to the Honeywell International Inc. Senior Vice
President and General ▇▇▇▇▇▇▇, whose judgment about whether such book, article or other media publication is disparaging shall
be determinative; or such a book, article or other media publication is published after a determination that it is disparaging. |
3
For purposes of this subsection
11.b.1, the term “disparaging” shall mean any statement or representation (whether oral or written and whether true
or untrue) which, directly or by implication, tends to create a negative, adverse, or derogatory impression about the subject of
the statement or representation or which is intended to harm the reputation of the subject of the statement or representation.
| 2. | In addition to the relief described in any other agreement
that governs your noncompetition with Honeywell, your nonsolicitation of Honeywell’s employees, customers, suppliers, business
partners and vendors, and/or your conduct with respect to Honeywell’s trade secrets and proprietary and confidential information,
if the Committee determines, in its sole judgment, that you have violated the terms of any such agreement or you have engaged in
an act that violates subsection 11.b.1. of this Agreement, (i) any portion of the Option you have not exercised (whether vested
or unvested) shall immediately be cancelled, and you shall forfeit any rights you have with respect to the Option as of the date
of the Committee’s determination, and (ii) you shall immediately deliver to the Company Shares equal in value to the gross
amount of any profit you realized upon an exercise of the Option during the period beginning twelve (12) months prior to your Termination
of Employment and ending on the date of the Committee’s determination. |
| 3. | Notwithstanding anything in the Plan or this Agreement
to the contrary, you acknowledge that the Company may be entitled or required by law, Company policy or the requirements of an
exchange on which the Shares are listed for trading, to recoup compensation paid to you pursuant to the Plan, and you agree to
comply with any Company request or demand for recoupment. |
| 12. | Adjustments. Any adjustments to the Option will
be governed by Section 5.3 of the Plan. |
| 13. | Restrictions on Exercise. Exercise of the Option
is subject to the conditions that, to the extent required at the time of exercise, (i) the Shares covered by the Option will be
duly listed, upon official notice of issuance, upon the NYSE, and (ii) a Registration Statement under the Securities Act of 1933
with respect to the Shares will be effective. The Company will not be required to deliver any Common Stock until all applicable
federal and state laws and regulations have been complied with and all legal matters in connection with the issuance and delivery
of the Shares have been approved by counsel of the Company. |
| 14. | Disposition of Securities. By accepting the Award,
you acknowledge that you have read and understand the Company’s policy, and are aware of and understand your obligations
under U.S. federal securities laws in respect of trading in the Company’s securities, and you agree not to use the Company’s
“cashless exercise” program (or any successor program) at any time when you possess material nonpublic information
with respect to the Company or when using the program would otherwise result in a violation of securities law. The Company will
have the right to recover, or receive reimbursement for, any compensation or profit realized on the exercise of the Option or by
the disposition of Shares received upon exercise of the Option to the extent that the Company has a right of recovery or reimbursement
under applicable securities laws. |
4
| 15. | Plan Terms Govern. The exercise of the Option,
the disposition of any Shares received upon exercise of the Option, and the treatment of any gain on the disposition of these Shares
are subject to the terms of the Plan and any rules that the Committee may prescribe. The Plan document, as may be amended from
time to time, is incorporated into this Agreement. Capitalized terms used in this Agreement have the meaning set forth in the Plan,
unless otherwise stated in this Agreement. In the event of any conflict between the terms of the Plan and the terms of this Agreement,
the Plan will control unless otherwise stated in this Agreement. By accepting the Award, you acknowledge receipt of the Plan and
the prospectus, as in effect on the date of this Agreement. |
| a. | By entering into this Agreement, and as a condition of
the grant of the Option, you expressly consent to the collection, use, and transfer of personal data as described in this Section
to the full extent permitted by and in full compliance with applicable law. |
| b. | You understand that your local employer holds, by means
of an automated data file, certain personal information about you, including, but not limited to, name, home address and telephone
number, date of birth, social insurance number, salary, nationality, job title, any shares or directorships held in the Company,
details of all options or other entitlement to shares awarded, canceled, exercised, vested, unvested, or outstanding in your favor,
for the purpose of managing and administering the Plan (“Data”). |
| c. | You further understand that part or all of your Data
may be also held by the Company or its Affiliates, pursuant to a transfer made in the past with your consent, in respect of any
previous grant of options or awards, which was made for the same purposes of managing and administering of previous award/incentive
plans, or for other purposes. |
| d. | You further understand that your local employer will
transfer Data to the Company or its Affiliates among themselves as necessary for the purposes of implementation, administration,
and management of your participation in the Plan, and that the Company or its Affiliates may transfer data among themselves, and/or
each, in turn, further transfer Data to any third parties assisting the Company in the implementation, administration, and management
of the Plan (“Data Recipients”). |
| e. | You understand that the Company or its Affiliates, as
well as the Data Recipients, are or may be located in your country of residence or elsewhere, such as the United States. You authorize
the Company or its Affiliates, as well as the Data Recipients, to receive, possess, use, retain, and transfer Data in electronic
or other form, for the purposes of implementing, administering, and managing your participation in the Plan, including any transfer
of such Data, as may be required for the administration of the Plan and/or the subsequent holding of Shares on your behalf, to
a broker or third party with whom the Shares may be deposited. |
5
| f. | You understand that you may show your opposition to the
processing and transfer of your Data, and, may at any time, review the Data, request that any necessary amendments be made to it,
or withdraw your consent herein in writing by contacting the Company. You further understand that withdrawing consent may affect
your ability to participate in the Plan. |
| 17. | Discretionary Nature and Acceptance of Award.
By accepting this Award, you agree to be bound by the terms of this Agreement and acknowledge that: |
| a. | The Company (and not your local employer) is granting
your Option. Furthermore, this Agreement is not derived from any preexisting labor relationship between you and the Company, but
rather from a mercantile relationship. |
| b. | The Company may administer the Plan from outside your
country of residence and United States law will govern all options granted under the Plan. |
| c. | Benefits and rights provided under the Plan are wholly
discretionary and, although provided by the Company, do not constitute regular or periodic payments. |
| d. | The benefits and rights provided under the Plan are not
to be considered part of your salary or compensation under your employment with your local employer for purposes of calculating
any severance, resignation, redundancy or other end of service payments, vacation, bonuses, long-term service awards, indemnification,
pension or retirement benefits, or any other payments, benefits or rights of any kind. You waive any and all rights to compensation
or damages as a result of the termination of employment with your local employer for any reason whatsoever insofar as those rights
result, or may result, from the loss or diminution in value of such rights under the Plan or your ceasing to have any rights under,
or ceasing to be entitled to any rights under, the Plan as a result of such termination. |
| e. | The grant of the Option hereunder, and any future grant
of an option under the Plan, is entirely voluntary, and at the complete discretion of the Company. Neither the grant of the Option
nor any future grant by the Company will be deemed to create any obligation to make any future grants, whether or not such a reservation
is explicitly stated at the time of such a grant. The Company has the right, at any time and/or on an annual basis, to amend, suspend
or terminate the Plan; provided, however, that no such amendment, suspension, or termination will adversely affect your rights
hereunder. |
| f. | The Plan will not be deemed to constitute, and will not
be construed by you to constitute, part of the terms and conditions of employment. Neither the Company nor your local employer
will incur any liability of any kind to you as a result of any change or amendment, or any cancellation, of the Plan at any time. |
| g. | Participation in the Plan will not be deemed to constitute,
and will not be deemed by you to constitute, an employment or labor relationship of any kind with the Company. |
6
| 18. | Limitations. Nothing in this Agreement or the Plan gives you any right to continue in the
employ of the Company or any of its Affiliates or to interfere in any way with the right of the Company or any Affiliate to terminate
your employment at any time. Payment of Shares is not secured by a trust, insurance contract or other funding medium, and you do
not have any interest in any fund or specific asset of the Company by reason of the Option. You have no rights as a shareowner
of the Company pursuant to the Option until Shares are actually delivered you. |
| 19. | Incorporation of Other Agreements. This Agreement and the Plan constitute the entire understanding
between you and the Company regarding the Option. This Agreement supersedes any prior agreements, commitments or negotiations concerning
the Option. |
| 20. | Severability. The invalidity or unenforceability of any provision of this Agreement will
not affect the validity or enforceability of the other provisions of the Agreement, which will remain in full force and effect.
Moreover, if any provision is found to be excessively broad in duration, scope or covered activity, the provision will be construed
so as to be enforceable to the maximum extent compatible with applicable law. |
| 21. | Governing Law. The Plan, this Agreement, and all determinations made and actions taken under
the Plan or this Agreement shall be governed by the internal substantive laws, and not the choice of law rules, of the State of
Delaware and construed accordingly, to the extent not superseded by applicable federal law. |
| 22. | Acknowledgements. By accepting this Agreement, you agree to the following: (i) you have
carefully read, fully understand and agree to all of the terms and conditions described in this Agreement, the Plan, the Plan’s
prospectus and all accompanying documentation; and (ii) you understand and agree that this Agreement and the Plan constitute the
entire understanding between you and the Company regarding the Option, and that any prior agreements, commitments or negotiations
concerning the Option are replaced and superseded. |
| 23. | Award Acceptance. To retain this Award, you must accept it by signing the Agreement below
and, by signing this Agreement, you will be deemed to consent to the application of the terms and conditions set forth in this
Agreement and the Plan. If you do not wish to accept this Award, you must contact Honeywell International Inc., Executive Compensation/AB-1D,
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ in writing within thirty (30) days of the Award Date. |
7
