Document:

Exhibit 10.3

 

2011 Stock Incentive Plan

of Honeywell International Inc. and its Affiliates

 

RESTRICTED UNIT AGREEMENT, FORM 2

 

This 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 4)] in a bookkeeping account on your behalf until they become payable or are forfeited or cancelled.

 

2.           Definitions. For purposes of this Agreement, the following definitions apply:

 

		a.	“Actual Award” means the product of (i) the Plan Payout Percentage (as determined under
Section 3), and (ii) your Target Award.

 

		b.	“Compensation Peer Group” means [INSERT COMPANY NAMES]. If there is any change in the
corporate capitalization of a company in the Compensation Peer Group during a Measurement Period (such as a stock split, corporate
transaction or any partial or complete liquidation), the Committee, in its sole discretion, may take such change into account in
determining the Total Shareholder Return of that company. If any company included in the Compensation Peer Group ceases to exist
or to be publicly traded during the Measurement Period, or undergoes any other similar change, the Committee shall determine the
consequences of such event for purposes of this Agreement, including without limitation, the replacement of such company in the
Compensation Peer Group.

 

		c.	“Measurement Period” means [DESCRIBE MEASUREMENT PERIOD].

 

		d.	“Performance Cycle” means the period beginning on [DATE] and ending on [DATE].

 

		e.	“Target Award” means the number of Restricted Units awarded to you for the Performance
Cycle under Section 1 of this Agreement.

 

		f.	“Total Shareholder Return” means the ratio of (A) a company’s share price as
of the last trading day of a Measurement Period (determined using the average closing share price over the 30 preceding trading
days) plus earned dividends per share during the Measurement Period, over (B) the company’s share price as of the first trading
day of a Measurement Period (determined using the average

    	 

    	

    

closing share price over the 30 preceding trading
days). Dividends are assumed earned and reinvested on the ex-dividend date.

 

		g.	[INSERT ADDITIONAL BUSINESS-RELATED DEFINITIONS AS APPLICABLE]

 

3.           Performance Measures. For each Measurement
Period, the Company’s Total Shareholder Return will be compared to the Total Shareholder Return of each company in the Compensation
Peer Group, and the Total Shareholder Return of the Compensation Peer Group and the Company shall be ranked. [DESCRIBE OTHER BUSINESS-RELATED
PERFORMANCE MEASURES, AS APPLICABLE]

 

The Plan Payout Percentage shall be
determined based on the following for the Performance Cycle: [DESCRIBE HOW PLAN PAYOUT PERCENTAGE IS DETERMINED].

 

4.           [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.
At the vesting date specified in Section 6, such Dividend Equivalents shall be adjusted up or down based on your Actual Award.
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 with any fractional Shares rounded up to the nearest whole Share You will
continue to earn Additional Restricted Units on unpaid Restricted Units and Additional Restricted Units that are held in your bookkeeping
account until the vested shares are paid to you.]

 

5.           Payment Amount. Each Restricted Unit [and
Additional Restricted Unit] represents one (1) Share of Common Stock.

 

6.           Vesting. Except as otherwise provided in
Sections 8, 9 and 10 and a deferral election, the vesting and payment of Restricted Units [and related Additional Restricted Units]
is contingent upon you remaining actively employed by the Company on the applicable vesting date(s) specified below: [DESCRIBE
VESTING DATE(S)].

    	 

    	

    

Except as otherwise provided in Sections
8, 9 and 10 and a deferral election, payment will be made as soon as practicable following the vesting date, but in no event later
than 2-1/2 months after the end of the calendar year in which vesting occurs.

 

The Actual Award [and related Additional
Restricted Units] will be paid solely in Shares.

 

7.           Termination of Employment. Except as otherwise
provided in this Agreement, if your Termination of Employment occurs for any reason before the vesting date(s) specified above,
any unvested Restricted Units [and Additional Restricted Units] will be forfeited and your rights with respect to any award under
this Agreement will terminate.

 

8.           Death or Disability. If your Termination
of Employment occurs because of your death or you incur a Disability before the last day of the Performance Cycle, you or your
estate will receive your Target Award as your Actual Award for the Performance Cycle. [No Additional Restricted Units will be paid
in this case. OR Additional Restricted Units will be calculated as provided in Section 4.]

 

If your Termination of Employment
occurs because of your death or you incur a Disability after the last day of the Performance Cycle but before the Actual Award
is fully paid, you or your estate will receive the remainder of your unpaid Actual Award for the Performance Cycle. [No Additional
Restricted Units will be paid in this case. OR Additional Restricted Units will be calculated as provided in Section 4.]

 

9.           Full Retirement. [INCLUDE AS APPLICABLE:
For the avoidance of doubt, if your Termination of Employment occurs solely because of your Full Retirement before the last day
of the Performance Cycle, all Restricted Units [and Additional Restricted Units] will be forfeited and your rights with respect
to any award under this Agreement will terminate.

 

OR

 

If your Termination of Employment occurs solely because
of your Full Retirement before the last day of the Performance Cycle, you will receive a pro-rata payment of your Target Award
as your Actual Award equal to the product of (a) times (b), minus (c), where (a) equals the total number of Restricted Units set
forth in Section 1 above [plus the total number of Additional Restricted Units 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

 

If your Termination of Employment occurs solely because
of your Full Retirement before the last day of the Performance Cycle, you will be vested in an additional number of

    	 

    	

    

Restricted Units [and related Additional Restricted Units]
equal to [INSERT VESTING PROVISION ON FULL RETIREMENT].]

 

[INCLUDE AS APPLICABLE: If your Termination of Employment
occurs solely because of your Full Retirement after the last day of the Performance Cycle but before the Actual Award is fully
paid, you will receive the remainder of your unpaid Actual Award for the Performance Cycle.

 

OR

 

If your Termination of Employment occurs solely because
of your Full Retirement after the last day of the Performance Cycle but before the Actual Award is fully paid, any unpaid Actual
Award will be forfeited and your rights with respect to any such Actual Award under this Agreement will terminate.

 

OR

 

If your Termination of Employment occurs solely because
of your Full Retirement after the last day of the Performance Cycle but before the Actual Award is fully paid, any unpaid Actual
Award will be paid as follows: [INSERT VESTING PROVISION ON FULL RETIREMENT].]

 

[No Additional Restricted Units will be paid in this case.
OR Additional Restricted Units will be calculated as provided in Section 4.]

 

[INCLUDE AS APPLICABLE: Notwithstanding the preceding
sentence, if you are a “specified employee” under Section 409A of the Code as of the date 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, 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
6 of this Agreement and (ii) your Termination of Employment does not occur before the last vesting date described in Section 6
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 6 of this Agreement but in no event later than the last day of the calendar year
in which each such vesting date occurs.]

 

10.         Change in Control. Notwithstanding anything
in Sections 2 through 9 above to the contrary, in the event of a Change in Control (as defined in the Plan), the following provisions
apply:

 

		a.	Rollover of Awards. If adjusted or exchanged pursuant to Section 5.3(c), 5.3(d)(ii), 5.3(e)
or 5.3(f) of the Plan, Restricted Units [and Additional Restricted Units] that have not vested or terminated as of the date of
the Change in Control will continue to vest in accordance with the schedule described in Section 6 of

    	 

    	

    

this Agreement (or as adjusted if more favorable);
provided, however, that (x) if you incur an involuntary Termination of Employment not for Cause (as defined in Section 2.7 of the
Plan) or a voluntary 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 the Change in Control and after the Performance Cycle has ended, [subject to the terms of a deferral
election,] the unpaid portion of your Actual Award will immediately vest in full and be settled no later than the earlier of 90
days after the Termination of Employment or two and one-half months after the end of the calendar year in which the Termination
of Employment occurs, or (y) if you incur an involuntary Termination of Employment not for Cause (as defined in Section 2.7 of
the Plan) or a voluntary Termination of Employment for Good Reason (as defined in Section 5.4(d) of the Plan) during the two-year
period following the Change in Control and before the Performance Cycle has ended, [subject to the terms of a deferral election,]
an amount equal to the Target Award will be paid in Shares no later than the earlier of 90 days after the Termination of Employment
or two and one-half months after the end of the calendar year in which the Termination of Employment occurs.

 

		b.	Cashout of Awards. Unless adjusted or exchanged pursuant to Section 5.3(c), 5.3(d)(ii),
5.3(e) or 5.3(f) of the Plan (concerning rollover of outstanding awards in certain circumstances), Restricted Units [and Additional
Restricted Units] that have not vested or terminated as of the date of the Change in Control will immediately vest. If the Change
in Control occurs after the Performance Cycle has ended, [subject to the terms of a deferral election,] you will receive the portion
of your unpaid Actual Award. If the Change in Control occurs before the Performance Cycle has ended, [subject to the terms of a
deferral election,] the Actual Award will be based on the Target Award or other level of substantially achieved performance, as
determined by the Committee prior to the Change in Control. No later than the earlier of 90 days after the date of the 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 vested and
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 10) and an amount equal to the greater of (i) the highest
price per Share paid by the successor, as determined by the Committee, and (ii) the highest Fair Market Value during the period
of 90 days that ends on the date of the Change in Control. Any securities or other property that is part or all of the consideration
paid for Shares pursuant to the Change in Control will be valued at the higher of (x) the valuation placed on the securities or
property by any entity that is a party with the Company to the Change in Control, or (y) the valuation placed on the securities
or property by the Committee.

    	 

    	

    

11.         [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
shall 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 shall be made as provided in this Agreement. All Additional Restricted Units shall be subject to
the same deferral restrictions as the Restricted Units to which they relate.]

 

12.         Transfer of Awards. 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 shall
be null and void.

 

13.         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.

 

14.         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 14 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 14.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 Counsel, 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.

 

For purposes of this subsection
14.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 14.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.

    	 

    	

    

15.         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] shall 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 shall be effective. The Company shall 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.

 

16.         Adjustments.Any adjustments to the Restricted
Units [and Additional Restricted Units] will be governed by Section 5.3 of the Plan.

 

17.         Disposition of Securities. By accepting
the Award, you acknowledge that you have read and understand (i) 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 and (ii) the Company’s
stock ownership guidelines as they apply to this Award. The Company shall 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.

 

18.         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 shall 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. Without limiting the generality of the foregoing, you agree
that all determinations made by the Committee of Total Shareholder Return and the Company’s ranking within the Compensation
Peer Group shall be final, binding and conclusive on you in accordance with Article III of the Plan.

 

19.         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.

 

20.         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 [, 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.

 

21.         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 [and Additional Restricted Units] until Shares are actually delivered
to you.

 

22.         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 Additional Restricted Units].

    	 

    	

    

23.         Severability. The invalidity or unenforceability
of any provision of this Agreement shall not affect the validity or enforceability of the other provisions of the Agreement, which
shall remain in full force and effect. Moreover, if any provision is found to be excessively broad in duration, scope or covered
activity, the provision shall be construed so as to be enforceable to the maximum extent compatible with applicable law.

 

24.         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.

 

25.         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.

 

26.         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.

 

27.         Award Acceptance. To retain this Award,
you must accept it by signing the Agreement below and, by signing this Agreement, you shall 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	DateEXHIBIT 10.4

2011 Stock Incentive Plan

of Honeywell International Inc. and its
Affiliates

 

Stock
Option Award Agreement

STOCK OPTION AWARD AGREEMENT made
in Morris 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 Morgan
                                         Stanley Smith Barney, by telephone at 1-888-723-3391 or 1-210-677-3660, or on the internet
                                         at www.benefitaccess.com. 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, Morris Township, Morris 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. 

		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, 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 Counsel, 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.

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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.

		16.	Personal Data. 

		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,
101 Columbia Road, Morristown, New Jersey 07962 in writing within thirty (30) days of the Award Date.

 

 

			 

	 	I Accept:
	
	 	 	
	 	 	
	 	 	
	 	Signature
	Date

7

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