Honeywell 2002 Annual Report Download - page 43

respect to the Prior Balance, shall not be affected by such change and, except
as otherwise provided in this Section 6 or as determined by the Plan
Administrator pursuant to Section 8, shall be distributed only in accordance
with the election in effect at the time such Prior Balance was credited to the
Participant's Account.
(c)(i) Distribution Default for Participant Deferred Contribution Amounts.
Any Participant Deferred Contribution Amounts credited to a Participant's
Account which are not covered by a timely distribution election under
subsections (a) and (b) above shall be distributed to the Participant in one
lump-sum cash payment as soon as practicable during the month of January of the
calendar year immediately following the later of the year in which the
Participant last contributed to the Plan or the year in which the Participant
terminates his employment with the Corporation or any of its subsidiaries
(whether by reason of Retirement or otherwise); provided, however, if the
Participant has made an election pursuant to Sections 9(a)(i) or 9(a)(ii), the
lump sum payment shall be made within the 90-day period following a Change in
Control, as defined in Section 9(c).
(c)(ii) Distribution Default for Plan Employer Contribution Amounts. Any
Plan Employer Contribution Amounts credited to a Participant's Account which are
not covered by a timely distribution election under subsections (a) and (b)
above shall be distributed to the Participant in Common Stock as soon as
practicable during the month of January of the calendar year immediately
following the later of the year in which the Participant last contributed to the
Plan or the year in which the Participant terminates his employment with the
Corporation or any of it subsidiaries (whether by reason of Retirement or
otherwise); provided, however, if the Participant has made an election pursuant
to Sections 9(a)(i) or (ii), the distribution shall be made within the 90-day
period following a Change in Control, as defined in Section 9(c). Any fractional
shares of Common Stock shall be paid in an equivalent cash amount, as determined
using the closing price of Common Stock on the trading date next preceding the
distribution date.
(d) Changing Prior Distribution Elections. The Plan Administrator may from
time to time allow Participants to request new elections with respect to the
distribution of a Participant's Prior Balance under the Plan (other than any
portion of such Prior Balance for which distributions have already commenced).
The Plan Administrator shall reserve the right to accept or reject any such
request at any time and such election shall be subject to such restrictions and
limitations as the Plan Administrator shall determine in its sole discretion,
provided that any new election shall generally be required to be made at least
twelve (12) months prior to any scheduled payment date. The Plan Administrator
may also allow a Participant to request an immediate distribution of all or a
portion of such Participant's Prior Balance (including any portion of such Prior
Balance for which distributions have already commenced) and any Deferred
Contribution Amounts and Plan Employer Contribution Amounts credited to the
Participant's Account immediately prior to such request. Any such immediate
distribution shall be subject to a penalty equal to six percent (6%) of the
amount requested to be distributed and shall be subject to such other
restrictions or conditions as may be established by the Plan Administrator from
time to time.
(e) Special Distribution Provision. Notwithstanding any provision in this
Plan to the contrary, if all or a portion of a Participant's Account is
determined to be includible in the Participant's gross income and subject to
income tax at any time prior to the time such Account would otherwise be paid,
the Participant's Account or that portion of the Participant's Account shall
be distributed to the Participant. For this purpose, an amount is determined
to be includible in the Participant's gross income upon the earliest of: (i) a
final determination by the
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