Honeywell 2008 Annual Report Download - page 213

(d) A Participant’s Account shall consist of two sub-accounts, as applicable: (1) a sub-account which consists of Base Annual
Salary and any earnings thereon that were earned and vested as of December 31, 2001, and Incentive Awards and any earnings
thereon that were earned as of December 31, 2001 and vested as of December 31, 2004 (the “Grandfathered Account”), and (2) a sub-
account which consists of Base Annual Salary and any earnings thereon that is earned and vested on or after January 1, 2002, and
Incentive Awards that are earned on or after January 1, 2002 and vested on or after January 1, 2005 (the “Non-Grandfathered
Account”). Base Annual Salary, Incentive Awards and any earnings thereon that were earned in the Plan Years beginning January 1,
2002, January 1, 2003 and January 1, 2004 and that are credited to a Participant’s Non-Grandfathered Account will be referred to
herein as “2002-2004 Deferrals”.
5. Deferral Requirements.
(a) Plan Years Beginning On or After January 1, 2006. A Participant’s Deferral Amounts under the Plan for Plan Years beginning
on or after January 1, 2006 will be paid in one lump-sum payment to such Participant in the January of the Plan Year that follows the
Plan Year in which the Participant has a Separation from Service (as defined in Section 409A(a)(2)(A)(i) of the Code and its
corresponding regulations) with the Corporation and its affiliates, unless the Participant elects on his Election Form during the Open
Enrollment Period that the Deferral Amounts for the Plan Year will instead be paid in substantially equal annual installments (not to
exceed ten) if he has a Separation from Service with the Corporation and its affiliates on or after he attains age 55 and has completed
ten Years of Service (as defined below), in which case the first installment shall commence in the January of the Plan Year that
follows the Plan Year in which the Participant has a Separation from Service and each remaining installment will be paid to the
Participant in each succeeding January.
Notwithstanding the foregoing, if at the time of the Participant’s Separation from Service, the Participant is a Specified Employee (as
defined below) the payments provided in the preceding paragraph shall be paid (or commence in the case of installments) in (i) the
January of the Plan Year that follows the Plan Year in which the Participant’s Separation from Service with the Corporation and its
affiliates occurs, if the Participant’s Separation from Service with the Corporation and its affiliates occurs prior to July 1 of such Plan
Year, or (ii) the July of the Plan Year that follows the Plan Year in which the Participant’s Separation from Service with the
Corporation and its affiliates occurs, if the Participant’s Separation from Service with the Corporation and its affiliates occurs after
June 30 of such Plan Year. If the Participant elected to receive his distribution in the form of installment payments, after the first
payment is made pursuant to the immediately preceding sentence, each subsequent installment will be paid to the Participant in the
January of each Plan Year that follows until all installments are paid to the Participant.
Notwithstanding the foregoing, if the Participant dies after the Separation from Service but before the end of the Plan Year in which
the Separation from Service occurs, or if a Specified Employee dies before the payment date described in the preceding paragraph, the
Participant’s beneficiary will receive the payment or payments in a lump sum within 60 days of the date of the Participant’s death.
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