Honeywell 2008 Annual Report Download - page 216

provided in the immediately preceding sentence on account of Separation from Service shall be paid (or commence payment 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. Payment on account of a Specified Time shall be
paid (or commence payment in the case of installments) to the Participant in January of the Plan Year elected by the Participant. 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 anything to the contrary in this subparagraph 5(c)(ii),
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.
(d) In-Service Withdrawal. A Participant may request an immediate withdrawal of all or a portion of the Deferral Amounts credited
to a Participant’s Grandfathered Account prior to the date described in subparagraph 5(c)(i) or prior to the date such portion of the
Grandfathered Account has been completely withdrawn, provided that such a request and withdrawal shall be subject to the approval
of the Corporation and such penalties, restrictions or conditions as may be established by the Corporation from time to time. The
penalty shall be a percentage of the amount requested to be withdrawn, calculated as the difference between (a) 6%, and (b) 50% of
the amount, if any, by which 10% exceeds the interest rate on 10-year U.S. Treasury Bonds on the first business day of the calendar
quarter during which the withdrawal request is made.
6. Interest Equivalents. Deferral Amounts shall accrue additional amounts equivalent to interest (“Interest Equivalents”), compounded
daily, from the date the Deferral Amount is credited to the Account to the date of distribution as set forth in this Paragraph 6.
(a) Non-Grandfathered Deferral Amounts.
(i) Deferral Amounts Credited for Plan Years On and After January 1, 2006. Deferral Amounts credited to a Participant’s Non-
Grandfathered Account for Plan Years beginning on or after January 1, 2006, and Deferral Amounts under Paragraph 4(a) credited
to a Participant’s Non-Grandfathered Account in 2006 for the Election Form filed by the Participant for the 2005 Plan Year, shall
accrue Interest Equivalents at an annual rate based upon the cost to the Corporation of borrowing at a fixed rate for a 15-year term.
Such rate is subject to change from Plan Year to Plan Year with respect to amounts credited to a Participant’s Non-Grandfathered
Account for a particular Plan Year and shall be determined annually by the Chief Financial Officer of the Corporation
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