Honeywell 2008 Annual Report Download - page 178

the extent otherwise provided with respect to fractional shares, all distributions of Plan Employer Contribution Amounts shall be made
in Common Stock. Installments after the first installment payment, if applicable, shall be paid in the January of each succeeding
calendar year until the entire amount of the Plan Employer Contribution Amounts shall have been paid. 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.
(iii) Calculation of Installment Payments. If installment payments are to be made to a Participant for any Plan Year, the amount
of each installment shall be determined by (A) multiplying the balance of the Participant Deferred Contribution Amounts credited to
the Participant for such Plan Year by a fraction, the numerator of which is one and the denominator of which is (x) the number of
installments elected, reduced by (y) one for each annual installment previously received, and (B) multiplying the balance of the Plan
Employer Contribution Amount on the last Valuation Date of such Plan Year by a fraction, the numerator of which is one and the
denominator of which is (x) the number of installments elected, reduced by (y) one for each annual installment previously received,
and then rounding down to the next whole share of Common Stock; provided, however, the amount of the last installment shall be
determined without regard to the rounding requirement of the preceding portion of this clause.
(b) Adjustment of Form of Distribution.
(i) 2005 Plan Year and Later. For Plan Years beginning on or after January 1, 2005, a Participant may not change the timing or
payment form of distribution of the Non-Grandfathered Contribution Amounts credited to his Non-Grandfathered Account for any
such Plan Year.
2004 Plan Year and Earlier. For Plan Years beginning before January 1, 2005, prior to the beginning of any calendar year, a
Participant may elect to change the timing and method of distribution of the Participant's Grandfathered Contribution Amounts that
are credited to his Grandfathered Account commencing with such calendar year. A Participant's Grandfathered Contribution Amounts
credited to the Participant's Grandfathered Account prior to the effective date of such change (the "Prior Balance"), and all amounts
thereafter accrued with respect to the Prior Balance, shall not be affected by such change and, except as otherwise provided in this
Paragraph 7 or as determined by the Plan Administrator pursuant to Paragraph 9, shall be distributed only in accordance with the
election in effect at the time such Prior Balance was credited to the Participant's Grandfathered Account.
(ii) Distribution Default for Amounts Credited to the Participant's Grandfathered Account.
(A) Distribution Default for Participant Deferred Contribution Amounts. Any Participant Deferred Contribution Amounts
credited to a Participant's Grandfathered Account which are not covered by a timely distribution election under Subparagraph 7(a)(i)
above shall be distributed to the Participant in one (1) lump-sum cash payment as soon as practicable during the month of January of
the calendar year immediately following the later of the calendar year in which the Participant last contributed to the Plan or the
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