Exhibit 10.37


 


2011 Stock Incentive Plan

of Honeywell International Inc. and its Affiliates


 


Restricted
Unit Agreement


 


RESTRICTED UNIT
AGREEMENT made in Morris Township, New Jersey, as of the [DAY] day of [MONTH, YEAR] (the “Award Date”) between Honeywell
International Inc. (the “Company”) and [EMPLOYEE NAME] (the “Employee”).


 


	1.	Grant of Award. The Company has granted you [NUMBER] Restricted Units, subject to the provisions
of this Agreement and the 2011 Stock Incentive Plan of Honeywell International Inc. and its Affiliates (the “Plan”).
The Company will hold the Restricted Units [and Additional Restricted Units (as defined in Section 2)] in a bookkeeping account
on your behalf until they become payable or are forfeited or cancelled.
	 	 
	2.	[FOLLOWING INCLUDED AT COMMITTEE’S DISCRETION: Dividend Equivalents.  Except as otherwise
determined by the Committee, in its sole discretion, you will earn Dividend Equivalents in an amount equal to the value of any
cash or stock dividends paid by the Company upon one Share of Common Stock for each unvested Restricted Unit or Additional Restricted
Unit (as defined below) credited to your bookkeeping account on a dividend record date. In the case of cash dividends, the Company
shall credit to your bookkeeping account, on each dividend payment date, an additional number of Restricted Units (“Additional
Restricted Units”) equal to (a) divided by (b), where (a) equals the total number of unvested Restricted Units and Additional
Restricted Units, if any, subject to this Agreement on such date multiplied by the dollar amount of the cash dividend paid per
Share of Common Stock on such date, and (b) equals the Fair Market Value of a Share on such date. If a dividend is paid to holders
of Common Stock in Shares, the Company shall credit to you, on each dividend payment date, Additional Restricted Units equal to
the total number of unvested Restricted Units and Additional Restricted Units subject to this Agreement on such date multiplied
by the Share dividend paid per Share of Common Stock on such date. Additional Restricted Units are subject to the same restrictions,
including but not limited to vesting, transferability and payment restrictions, that apply to the Restricted Units to which they
relate.]
	 	 
	3.	Payment Amount. Each Restricted Unit [and Additional Restricted Unit] represents one (1)
Share of Common Stock.
	 	 
	4.	Vesting. Except in the event of your Termination of Employment due to death[ or Full Retirement],
the incurrence of a Disability, or the occurrence of a Change in Control, the Restricted Units [and Additional Restricted Units]
will vest as follows: [VESTING PROVISIONS CONSISTENT WITH THE PLAN].





    	 



    	



    

	5.	Form and Timing of Payment. Vested Restricted Units will be redeemed solely for Shares.
[FOLLOWING INCLUDED AT COMMITTEE’S DISCRETION: Except as otherwise determined by the Management Development and Compensation
Committee (the “Committee”), in its sole discretion, vested Additional Restricted Units will be redeemed solely for
Shares.] [Subject to a deferral election made pursuant to Section 12, and] except as otherwise provided in Section 7(b) below,
payment of vested Restricted Units [and Additional Restricted Units] will be made as soon as practicable following the applicable
vesting date but in no event later than two and one-half (2-1/2) months following the end of the calendar year in which the vesting
date occurs. As determined by the Company in its sole discretion prior to the vesting date, any fractional Shares may be paid in
cash or rounded up or down to the nearest whole Share.
	 	 
	6.	Termination of Employment. Except as otherwise provided in Sections 7(a) and 8 of this Agreement,
any Restricted Units [and Additional Restricted Units] that have not vested as of your Termination of Employment will immediately
be forfeited, and your rights with respect to these Restricted Units [and Additional Restricted Units] will end.
	 	 
	7.	Full Retirement, Death or Disability.



 


		a.	Vesting. If your Termination of Employment occurs due to death or you incur a Disability
before the last vesting date described in Section 4 of this Agreement, all of your unvested Restricted Units [and Additional Restricted
Units] will vest as of your Termination of Employment or Disability, as applicable. If you are deceased, the Company will make
a payment to your estate only after the Committee has determined that the payee is the duly appointed executor or administrator
of your estate, subject to Section 7.14 of the Plan.
	 	 	 
	 	 	[INCLUDE AS APPLICABLE:
If your Termination of Employment due to Full Retirement occurs before the last vesting date described in Section 4 of this Agreement,
you will be vested in an additional number of Restricted Units [and related Additional Restricted Units] equal to the product of
(a) times (b), minus (c), where (a) equals the total number of Restricted Units specified in Section 1 of this Agreement [plus
the total number of Additional Restricted Units (both vested and unvested) credited to you as of your Termination of Employment],
(b) equals the ratio of your complete years of service as an employee of the Company or its Affiliates between the Award Date and
your Termination of Employment, and the number of complete years of service required under this Agreement to be fully vested in
all Restricted Units [and Additional Restricted Units], and (c) equals the number of Restricted Units [and Additional Restricted
Units] that vested before your Termination of Employment.
	 	 	 
	 	 	OR For the avoidance
of doubt, if your Termination of Employment due to Full Retirement occurs before the last vesting date described in Section 4 of
this Agreement, you will not vest in any Restricted Units [or Additional Restricted Units] as a result of your termination.
	 	 	 
	 	 	OR If your Termination
of Employment due to Full Retirement occurs before the last vesting date described in Section 4 of this Agreement, you will be
vested in an






    	 



    	



    



	 	 	additional number
of Restricted Units [and related Additional Restricted Units] equal to [INSERT VESTING PROVISION ON FULL RETIREMENT].]
	 	 	 
		b.	Payment. [Subject to a deferral election made pursuant to Section 12,] if your Termination
of Employment occurs due to death[ or Full Retirement,] or you incur a Disability, before the last vesting date described in Section
4 of this Agreement, payment for vested Restricted Units [and Additional Restricted Units] will be made as soon as practicable
following your Termination of Employment or Disability, as applicable, but in no event later than the last day of the calendar
year in which such Termination of Employment or Disability occurs. [INCLUDE AS APPLICABLE: Notwithstanding the preceding sentence,
if you are a “specified employee” under Section 409A of the Code as of the date of your Termination of Employment occurs
due to Full Retirement, payment for vested Restricted Units [and Additional Restricted Units] will be made on the first business
day of the first calendar month that begins after the six-month anniversary of your Termination of Employment, or, if earlier,
your death.
	 	 	 
	 	 	[Subject to a deferral
election made pursuant to Section 12,] if (i) you are eligible for Full Retirement on the Award Date or you become eligible for
Full Retirement before the last vesting date described in Section 4 of this Agreement and (ii) your Termination of Employment does
not occur before the last vesting date described in Section 4 of this Agreement, payment for vested Restricted Units [and Additional
Restricted Units] will be made as soon as practicable following the applicable vesting date described in Section 4 of this Agreement
but in no event later than the last day of the calendar year in which each such vesting date occurs.]





 


	8.	Change in Control. In the event of a Change in Control, Restricted Units [and Additional
Restricted Units] that have not vested or terminated as of the date of Change in Control will immediately vest. No later than the
earlier of 90 days after the date of Change in Control or two and one-half months after the end of the calendar year in which the
Change in Control occurs, you will receive for the Restricted Units [and Additional Restricted Units] a single payment in cash
equal to the product of the number of outstanding Restricted Units [and Additional Restricted Units] as of the date of the Change
in Control (including any Restricted Units [and Additional Restricted Units] that vest pursuant to this Section 8) and a multiplication
factor, as set forth in the Plan.
	 	 
	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 to your local employer, prior to any issuance or delivery of Shares on Restricted
Units [or Additional Restricted Units], 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 required by law to be withheld as determined by the Company or your
local employer.
	 	 
	10.	Transfer of Award. You may not transfer the Restricted Units, [Additional Restricted Units]
or any interest in such Units except by will or the laws of descent and distribution





    	 



    	



    



	 	or except as otherwise
permitted by the Committee and as specified in the Plan. Any other attempt to dispose of your interest will be null and void.
	 	 
	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 (including but not limited to Section 11 of the Stock Option
Award Agreement for the Option granted on February 25, 2011, if applicable) 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.
	 	 	 
		b.	Remedies. 



 


		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.
	 	 	 
	 	 	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 Restricted Units [and Additional Restricted Units] that have not vested under this Agreement
shall immediately be cancelled, and you shall forfeit any rights you





    	 



    	



    



	 	 	have with respect to such Units as of the date of the
Committee’s determination, and (ii) you shall immediately deliver to the Company Shares equal in value to the
Restricted Units [and Additional Restricted Units] you received 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.	[FOLLOWING INCLUDED AT COMMITTEE’S DISCRETION: Deferral of Payment. If you would like
to defer payment on the Restricted Units and related Additional Restricted Units, you may do so in writing on the deferral form
provided with this grant setting forth your desired payment schedule. The deferral will not be permitted if, within the determination
of the Company, such deferral would result in a violation of Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”) and the regulations promulgated thereunder. If the deferral is not permitted, then payment will be made as
provided in Section 5 or 7(b), as applicable. All Additional Restricted Units will be subject to the same deferral restrictions
as the Restricted Units to which they relate. Except as otherwise determined by the Company, Dividend Equivalents credited on deferred
Restricted Units and deferred Additional Restricted Units will be paid in cash as soon as practicable following the date such Dividend
Equivalents are credited but in no event later than 2-1/2 months following the end of the year in which the Dividend Equivalents
vest.]
	 	 
	13.	Restrictions on Payment of Shares. Payment of Shares for your Restricted Units [and Additional
Restricted Units] is subject to the conditions that, to the extent required at the time of exercise, (i) the Shares underlying
the Restricted Units [and Additional Restricted Units] will be duly listed, upon official notice of redemption, upon the New York
Stock Exchange, 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 for
the Company.
	 	 
	14.	Adjustments. Any adjustments to the Restricted Units [and Additional Restricted Units] will
be governed by Section 5.3 of the Plan.
	 	 
	15.	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 applicable securities laws in respect
of trading in the Company’s securities. The Company will have the right to recover, or receive reimbursement for, any compensation
or profit you realize on the disposition of Shares received for Restricted Units [or Additional Restricted Units] to the extent
that the Company has a right of recovery or reimbursement under applicable securities laws.





    	 



    	



    

	16.	Plan Terms Govern. The vesting and redemption of Restricted Units [or Additional Restricted
Units], the disposition of any Shares received for Restricted Units [or Additional Restricted Units], the treatment of gain on
the disposition of these Shares, [and the treatment of Dividend Equivalents] are subject to the provisions 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. By accepting the
Award, you acknowledge that the Plan and the Plan prospectus, as in effect on the date of this Agreement, have been made available
to you for your review.
	 	 
	17.	Personal Data.



 


		a.	By entering into this Agreement, and as a condition of the grant of the Restricted Units, 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 restricted units 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 restricted units 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.





    	 



    	



    

		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.



 


	18.	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 Restricted Units [and Additional Restricted
Units]. 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 Restricted Units [and Additional Restricted Units] 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 Restricted Units [and Additional Restricted Units] hereunder, and any future grant
of Restricted Units [or Additional Restricted Units] under the Plan, is entirely voluntary, and at the complete discretion of the
Company. Neither the grant of the Restricted Units, [the Additional Restricted Units] 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.



 


	19.	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 your Restricted Units [and Additional Restricted Units] 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 this
Award or the account established on your behalf. You have no rights as a shareowner of the Company
pursuant to the Restricted Units [or Additional Restricted Units] until Shares are actually delivered to you.
	 	 
	20.	Incorporation of Other Agreements. This Agreement and the Plan constitute the entire understanding
between you and the Company regarding the Restricted Units. This Agreement supersedes any prior agreements, commitments or negotiations
concerning the Restricted Units [and the Additional Restricted Units].
	 	 
	21.	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.
	 	 
	22.	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.
	 	 
	23.	Agreement Changes. The Company reserves the right to change the terms of this Agreement
and the Plan without your consent to the extent necessary or desirable to comply with the requirements of Code section 409A, the
Treasury regulations and other guidance thereunder.
	 	 
	24.	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 Restricted Units, and that any prior agreements, commitments or
negotiations concerning the Restricted Units are replaced and superseded.
	 	 
	25.	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,
101 Columbia Road, Morristown, New Jersey 07962 in writing within thirty (30) days of the Award Date.



 


	 	I Accept:	 	 
	 	 	 	 
	 	 	 	 
	 	Signature	Date