<PAGE>   1
                                                              EXHIBIT 10(iii)(k)


                             BANNER AEROSPACE, INC.

                              DEFERRED BONUS PLAN

                                January 21,1998

Section 1.       Purpose

This Plan permits Recipients to elect to defer payment of their Bonus.

Section 2.       Definitions

(a)      "Bonus" means the amount of Bonus (payable in shares of AlliedSignal,
         Inc. common stock) a Participant is entitled to receive as determined
         by the Committee in connection with 1998 or 1999 Extraordinary
         Transactions .

(b)      "Bonus Deferral Election" means an election to defer payment of a
         Bonus until a date specified by the Participant, which date shall not
         be later than December 31, 2005.

(c)      "Bonus Deferral Participant" means a Recipient who has made a Bonus
         Deferral Election and who has been designated by the Committee as
         eligible to participate in the Plan.

(d)      "Committee" means the Compensation and Stock Option Committee of the
         Board, which Committee shall administer this Plan, as provided in
         Section 10 hereof.

(e)      "Corporation" means Banner Aerospace, Inc. and its corporate
         successors.

(f)      "Deferred Bonus" means Bonus deferred pursuant to the terms of this
         Plan.

(g)      "Deferred Bonus Account" means the account or accounting entry which
         signifies the total amount of Deferred Bonus for a particular fiscal
         year with respect to each Bonus Deferral Participant.

(h)      "Deferred Bonus Election Form" means the form by which an eligible
         person elects to become a Bonus Deferral Participant.

(i)      "Designation of Beneficiary Form" means the form by which a
         Participant designates a beneficiary or beneficiaries, or modifies a
         prior designation of a beneficiary or beneficiaries.





                                       1
<PAGE>   2
(j)      "Participant" means a Recipient who is a Bonus Deferral Participant.

(k)      "Plan" shall mean this Deferred Bonus Plan, or any amendment thereto.

(1)      "Payment Date" means each date the Participant elects to receive
         payment of all or a portion of the Deferred Bonus.

(m)      "Recipient" means a person who (i) has been designated by the
         Committee to be entitled to participate in this Plan, and (ii) is
         deemed to be an "Accredited Investor"(as defined under Federal
         Securities Laws). A Recipient need not be an employee of the
         Corporation. Recipients participating in the Plan shall provide such
         certifications and other evidence as the Corporation may reasonably
         require to establish that they are Accredited Investors.

(n)      "Undistributed Balance" of any Deferred Bonus means that portion of
         any Deferred Bonus which has not been distributed to the Bonus Deferral
         Participant by dint of his or her Bonus Deferral Election.

Section 3.         Eligibility

     Each Recipient, or other person deemed eligible to receive a Bonus as
determined by the Committee, is eligible to make a Bonus Deferral Election and
become a Bonus Deferral Participant.

Section 4.         Participation

     In order to participate in the Plan, a Recipient must make a valid Bonus
Deferral Election by executing and filing with the Corporation, before the
period of time for which the Recipient would otherwise be eligible to receive
the Bonus being deferred, a Bonus Deferral Election Form and a Designation of
Beneficiary From.

     A Participant's Bonus Deferral Election defers payment of Bonus awarded
after the date of the adoption of the Plan to the Payment Date designated by
the Participant. Interest shall be paid by the Corporation on the Undistributed
Balance of any Deferred Bonus at 8% per annum, compounded annually, as computed
in accordance with Section 5. The Bonus Deferral Election is irrevocable, but
each Participant may at any time or from time to time amend the designation of
beneficiary or beneficiaries.

     A Participant's Designation of Beneficiary Form designates the beneficiary
or beneficiaries to whom the Participant's account shall be paid in a single
lump sum payment upon Participant's death before the Payment Date.





                                       2
<PAGE>   3
     The Corporation shall establish a single Deferred Bonus Account and shall
credit to that Deferred Bonus Account the Bonus designated by each and all
Participants.

Section 5.         Payment of Accounts and Method of Computation

     Except as provided in Section 7 below, payment shall be made to each
Participant from the Deferred Bonus Account on the Payment Date specified in
that Participant's Deferral Bonus Election Form.

Section 6.         Form of Bonus and Payment

     The Bonus eligible to be deferred represents a fixed number of shares of
common stock of AlliedSignal Inc. owned by the Corporation. The closing stock
price of such stock on the date the Bonus is awarded by the Committee will be
used to calculate interest under Section 4, which amount will be increased by
interest earned in prior periods for purposes of computing the annual interest
to be calculated under Section 4. Any dividends payable on such stock during
the deferral period shall be paid for the benefit of the Corporation. The
number of Shares shall be adjusted to give effect to any stock splits or other
recapitalization events of AlliedSignal Inc., which could affect the number of
Shares held during the deferral period. Distributions of Bonus to a Participant
shall be made in kind. Distributions of interest to a Participant shall be made
in cash at such time and in such proportion as payments of Bonus, as designated
on the Participant's Bonus Deferral Election.

Section 7.         Death of a Participant

     Upon the death of a Participant, the full amount held for him or her in
the Deferred Bonus Account shall be paid to the beneficiary or beneficiaries of
such Account designated by the Participant on his last submitted Designation of
Beneficiary Form for such account.

Section 8.         Participant's Rights Unsecured

     The right of the Participant or any beneficiary of a Participant to
receive any distribution hereunder shall be an unsecured claim against the
general assets of the Corporation. Notwithstanding anything herein to the
contrary, the Corporation shall not sell, transfer or otherwise alienate the
Deferred Bonus Account, and the stock held therein, except for distributions to
Participants or their beneficiary or beneficiaries in accordance with this
Plan. Notwithstanding the foregoing, the Committee may vote the stock of
AlliedSignal, Inc. which is subject to the Plan, participate in
reorganizations, recapitalizations, mergers or other events and receive all
proceeds in liquidation of AlliedSignal Inc.





                                       3
<PAGE>   4
Section 9.         Participant's Interest is Nonforfeitable

     The interest of a Participant or any beneficiary of a Participant in his
Deferred Bonus Account shall in all events be vested and nonforfeitable,
irrespective of any continuing relationship between the Participant and the
Corporation.

Section 10.        Administration of the Plan - Committee

     The Plan shall be administered by the Committee. The Committee shall act
by vote of a majority of its members or by unanimous written consent. The Plan
may be amended, modified, or terminated by the Committee, except that no such
action shall (without the consent of the Participant, or, if the Participant
has deceased, any beneficiary or beneficiaries, distributed or personal
representative) alter the rights of a Participant with respect to the Deferred
Bonus Account established pursuant to this Plan prior to the date of such
amendment, modification or termination.

Section 11.        Alienation

     Neither the Deferred Bonus Account nor any amount, the payment of which
has been deferred under this Plan, shall be subject in any manner to the
Participant's or his creditor's sale, transfer, levy or charge, and any attempt
by such Participant or his creditors to so alienate, sell, transfer, levy or
charge the same shall be void; nor shall any such amount be in any manner
subject to the debts, contracts, liabilities, engagements or torts of the
Participant.

Section 12.        Taxes

     The Participants and their beneficiaries, distributees, and personal
representative will bear all Federal, foreign, state, local or other income or
other taxes imposed on amounts paid under this Plan. All such taxes shall be
computed by, and remitted to, the Corporation at each Payment Date, for deposit
by the Corporation with the appropriate taxing jurisdiction.

Section 13.        Consent

     By electing to become a Participant, each Recipient shall be deemed
conclusively to have accepted and consented to all the terms of this Plan and
all actions or decisions made by the Corporation, or the Committee with regard
to the Plan. Such terms and consent shall also apply to and be binding upon the
beneficiaries, distributees, and personal representatives and other successors
in interest of each Participant.




                                       4
<PAGE>   5
Section 14.        Severability

     In the event any provision of this Plan would serve to invalidate the
Plan, that provision shall be deemed to be null and void, and the Plan shall be
construed as if it did not contain the particular provision that would make it
invalid.

Section 15.        Applicable Law

The Plan shall be interpreted and construed under the laws of the State of
Delaware.

Section 16.        No Right of Continuing Employment

     Nothing contained herein shall be construed as conferring upon the
Participant the right to continue in the employment of the Corporation.




                                       5