 Self-reproducing incompressible annulus cut

Let $P$ be a once-punctured torus and let $c$ be a nonseparating essential curve. The annulus $c\times [0,1]$ is an incompressible surface in $P\times [0,1]$. Cutting gives a pair of pants times an interval. Both products are genus-two handlebodies, since a compact connected surface with boundary times an interval is a handlebody of genus $1-\chi (P)$.