Honeywell Savings and Ownership Plan. Distribution Options Guide

Honeywell Savings and Ownership Plan Distribution Options Guide June 2016

For more information on the Plan, visit the HR Direct Website through the Honeywell Intranet or www.honeywell.com, click on 'Employee Access', and then select the 401(k) Savings Plan banner. If you are an inactive employee you may access your account via http://honeywell.voya.com. If you don't have access to the Internet, call One Stop at 1-877-258-3699 and select option 1 (1-877-677-3590 for the hearing impaired, 1-904-791-2025 for international calls). Representatives are available Monday through Friday from 9 a.m. to 8 p.m. Eastern time. WHAT S INSIDE IF YOU ARE TERMINATED AND YOUR ACCOUNT BALANCE IS $5,000 OR LESS. 2 IF YOU ARE TERMINATED AND YOUR ACCOUNT BALANCE IS OVER $5,000..3 OUTSTANDING LOAN(S)... 4 TAX WITHHOLDING/DIRECT ROLLOVER INFORMATION... 5 MAKING YOUR DISTRIBUTION ELECTION... 7 MINIMUM DISTRIBUTION AT AGE 70 1/2... 8 APPENDIX A - BENEFICIARY FORM AND FAQ APPENDIX B - SPECIAL TAX NOTICE This guide is designed to explain your distribution options for the Honeywell Savings and Ownership Plan (the Plan ). Please refer to your Summary Plan Description for more information before making your distribution election. If there is a conflict between the information contained in this guide and the Plan document, the Plan document will always govern. We suggest you consult a professional tax advisor before making your distribution election. - 1 -

If You Terminate Employment and Your Account Balance is $5,000 or Less If your vested account balance is $5,000 or less (without counting amounts in your rollover account), you will have 90 days from the date of your Final Distribution Options notice to make a distribution election. Distribution of taxable amounts will generally be subject to a mandatory 20% Federal withholding tax and applicable state tax. A penalty tax may also apply if you are not age 59 ½. You may generally avoid the mandatory taxes by electing to directly roll over the taxable portion of your distribution to an eligible retirement plan. If an eligible rollover distribution is paid directly to you, you may still roll over that amount within 60 days, but you will have to use other funds to make up for the tax withholding. The minimum rollover is $200. Request your Distribution See Making Your Distribution Election on page 7 of this guide. Failure to Request your Distribution If you do not request a distribution within your election period, your vested account will automatically pay out at the end of your election period as follows: If your vested balance is $1,000 or less (including rollover monies), it will be paid by check payable to you. Mandatory Federal and applicable state withholding taxes will apply on distributions greater than $200. If your vested account balance is greater than $1,000 (including rollover monies), it will automatically roll over to a default individual retirement annuity (IRA) established by Voya Financial. All funds will be rolled over in cash. No Federal or state taxes will be withheld. Contact One Stop for more information on the Voya Financial Rollover IRA. If the value of your vested account exceeds $5,000 (excluding rollover monies) at the end of your election period due to earnings, dividends or repayment of an outstanding loan, your account will not pay out automatically. You may however, request a distribution at any time via the Website or by contacting One Stop. Note: Refer to the Tax Withholding/Direct Rollover Information on page 5 and the Special Tax Notice in Appendix B for detailed tax information. - 2 -

If You Terminate Employment and Your Account Balance is Over $5,000 If your vested account balance is greater than $5,000 (without counting amounts in your rollover account), you may request distribution of your account at any time. Distribution of taxable amounts will generally be subject to a mandatory 20% Federal withholding tax and applicable state tax. A penalty tax may also apply if you are not age 59 ½. You may generally avoid the mandatory taxes by electing to directly rollover the taxable portion of your distribution to an eligible retirement plan. If an eligible rollover distribution is paid directly to you, you may still roll over that amount within 60 days, but you will have to use other funds to make up for the tax withholding. The minimum rollover is $200. Request your Distribution See Making Your Distribution Election on page 7 of this guide. Failure to Request your Distribution If you do not request distribution of your vested account balance sooner, required minimum distributions will automatically be paid to you beginning in December of the year in which you attain age 70 ½. See page 8 for more information on required minimum distributions. Partial Withdrawals You may request a partial withdrawal of your account balance at any time through the Website or by calling One Stop. There is a transaction fee of $20 per withdrawal. The minimum withdrawal is $300. Minimum Balance Required to Remain in the Plan If your vested balance drops to $5,000 or less you will be required to receive a total distribution of your account within 30 days of notification. If you do not request your distribution within the election period your account will pay out in accordance with the rules on page 2 of this guide. Beneficiary Designation Your beneficiary designation must be on file with Honeywell at the time of your death. Any beneficiary designations included in a pre-marital agreement, divorce decree, property settlement agreement, will or other estate planning vehicle, and beneficiary designation you may have made with another plan is not valid unless that same beneficiary designation has been made in accordance with the Plans beneficiary designation process. If you are married and want to name someone other than your spouse as primary beneficiary, your spouse must consent to this designation in writing and have his/her signature witnessed by a notary public. You may designate or change your beneficiary via the Personal Information option on the Plan s Website or by completing the Beneficiary/Consent Designation form in Appendix A. The Honeywell Retirement Earnings Plan If you have a benefit in the Honeywell Retirement Earnings Plan ( REP ), you may be eligible to roll that REP benefit into your Plan account. Note: Refer to the Tax Withholding/Direct Rollover Information on page 5 and the Special Tax Notice in Appendix B for detailed tax information. - 3 -

Outstanding Loan(s) Repaying Your Loan You must repay your outstanding loan balance and any accrued interest in full the earlier of (i) 90 days from the date of your Final Distribution Options notice, or (ii) the date you make your distribution election. You may payoff your loan electronically through the Website. You may also send a cashiers check, certified check, bank check or money order made payable to State Street to the following address. Be sure to include your name, first five digits of your Social Security Number and loan number on the check. Regular Address Overnight Address Voya Financial Voya Financial Attn: Honeywell Savings Programs Attn: Honeywell Savings Programs P.O. Box 5162 30 Braintree Hill Office Park Boston, MA 02206-5162 Braintree, MA 02184-8747 Tax Implications of Not Repaying Your Loan The taxable portion of your outstanding loan balance, along with any accrued interest due, will be reported as taxable income in the year of the default. Your After-Tax contributions, Roth 401(k) contributions, and nontaxable Roth 401(k) earnings (if any) may be used to offset the amount that would otherwise be treated as taxable income as a result of the default. Amounts treated as taxable income may also be subject to a 10% penalty tax if you are not age 59 ½. Loan Invoicing In the following limited situations you may be eligible to continue to repay your loan by making direct payments to the Plan, but only if noted in your Final Distributions Option notice: If you (i) were issued a loan under the Honeywell Savings and Stock Ownership Plans before April 1, 2000, (ii) are laid off, and (iii) have loan repayment provisions in your promissory note If you terminate employment with Honeywell due to a divestiture or outsourcing and direct payments are specifically negotiated in the applicable sales or master services agreement If your loan repayments are not made in a timely manner your loan will default. Further information may be obtained by calling One Stop at 1-877 258-3699, Option 1. Note: Refer to the Tax Withholding/Direct Rollover Information on page 5 and the Special Tax Notice in Appendix B for detailed tax information. - 4 -

Tax Withholding/Direct Rollover Information The payment or distribution of taxable amounts will generally be treated as ordinary income in the year of distribution and subject to a mandatory 20% Federal withholding tax. State taxes will be withheld in accordance with the laws of your state of residence. A penalty tax may also apply if you are not age 59 ½ at the time of distribution. You may generally avoid the mandatory taxes by electing to directly roll over the taxable portion of your distribution to an eligible retirement plan. Amounts in your Plan account that are taxable at the time of distribution Before-Tax contributions, Company contributions, Rollovers, Prior Employer contributions and prior IRA contributions to the Plan and all earnings attributable are taxable for Federal income tax purposes when distributed. Additionally, the earnings on After-Tax contributions are taxable when distributed. The earnings on Roth 401(k) contributions are taxable for Federal income tax purposes when distributed if at the time of distribution you are not age 59 ½ (dead or disabled) and have not held those contributions for at least five years. Amounts in your Plan account that are not taxable at the time of distribution After-Tax contributions and Roth 401(k) contributions are not taxable for Federal income tax purposes when distributed. The earnings attributable to Roth 401(k) contributions will not be subject to Federal income tax purposes when distributed if at the time of distribution you are at least age 59 ½ (dead or disabled) and the contributions have been held in your account for at least five years. Additional Penalty Taxes Generally, if you are not age 59 ½, the taxable portion of most distributions or withdrawals that are not rolled over will be subject to a 10% penalty tax. Exceptions to the 10% penalty tax include payments that are paid: After your employment with Honeywell terminates, provided your employment terminates during the year in which you attain age 55 or later; As a result of retirement due to disability; As dividends paid with respect to stock held by an Employee Stock Ownership Plan, such as the Honeywell Savings and Ownership Plan; Directly to the government to satisfy a Federal tax levy; To an alternate payee who is your spouse or former spouse pursuant to a qualified domestic relations order; To cover, but not to exceed, the amount of your deductible medical expenses; To your surviving spouse or other beneficiaries as a result of a your death; or The portion of a distribution of Honeywell Common Stock that is considered net unrealized appreciation. Direct Rollovers to an Eligible Retirement Plan You may directly roll over all or a portion of your taxable distribution to a tax-qualified plan, a 403(a) plan, a 403(b) plan, a 457 plan or a traditional or Roth IRA. You may directly roll over all or a portion of your Roth 401(k) and after tax distribution to a tax-qualified plan, a 403(a) plan, a 403(b) plan, 457 plan or a Roth IRA only if the receiving plan will accept Roth 401(k) or after tax amounts. If you would like to rollover your Roth 401(k) or After-Tax distribution you should first check with the receiving plan or IRA to ensure that it will accept Roth 401(k) or After-Tax amounts. The direct rollover option is not available for required minimum distributions paid after you reach age 70 ½. Please review the Special Tax Notice included in Appendix B of this guide for additional information on rollovers of Roth and non-roth accounts. If an eligible rollover distribution is paid directly to you, you may still roll over that amount within 60 days, but you will have to use other funds to make up for the tax withholding. - 5 -

Distributions of Honeywell Common Stock Please consult the Special Tax Notice in Appendix B of this guide for information regarding special rules that may apply to payments of Honeywell stock if: Your distribution is attributable to After-Tax or Roth 401(k) contributions that you do not rollover, or You were born before January 1, 1936 and receive a lump sum distribution. Minimum Distribution Payments at age 70 ½ Required minimum distributions are not eligible for rollover. Federal tax will be withheld at 10% on the taxable portion of any residual minimum distribution payment paid in mid-december. If you are age 69 ½ or older, please see Required Minimum Distribution at Age 70 ½ on page 8 of this booklet for more information. Important Note: The tax information in this summary is a general description of the applicable tax rules and is based on tax laws in effect at the time this guide was published, and is subject to change. This summary is not a substitute for consultation with your tax advisor. We suggest you review the Special Tax Notice in Appendix B of this guide and consult a professional tax advisor before electing to receive any distribution from your Plan account. - 6 -

Making Your Distribution Election You may make your distribution election through the Website at http://honeywell.voya.com or by calling One Stop at 1-877-258-3699, Option 1. Participant Service Representatives are available to assist you Monday through Friday from 9 a.m. to 8 p.m., Eastern time. International Employees should call 1-904-791-2025. The hearing impaired should call 1-877-677-3590. Have your Login ID and Savings Programs password ready. You will first need to decide whether you want your distribution paid directly to you or whether you want to directly rollover of all or a portion of your distribution. You will then need to decide whether you want the proceeds of your Honeywell Common Stock Fund (if any) o be issued as cash or shares of Honeywell common stock. Fractional shares will be paid in cash. If You Request a Direct Rollover of All or a Portion of Your Distribution You will need the name of the eligible retirement plan accepting the direct rollover, the account number (if available) and the portion of your account you wish to directly rollover. Before you request a direct rollover you should confirm that the receiving plan will accept the roll-in.. The check will be made payable to the financial institution on your behalf and mailed to your address on record along with a distribution statement. The shares will be registered and sent direct transfer to the financial institution. Direct Deposit is not available for distributions that are directly rolled over. It is your responsibility to forward the check to the receiving plan. If You Request a Direct Payment of All or a Portion of Your Distribution You may request Federal tax be withheld at a percentage greater than the mandatory 20%. You may also request to have the cash portion of your distribution directly deposited into your bank account. You may add or update your bank information through the Website or by calling One Stop. Your new account information will be activated and available for direct deposit seven days from the date you update your information. Direct deposit is not available for payments that are made in shares of Honeywell common stock. Any check will be made payable to you and mailed to your address on record along with a distribution statement that details the taxable portion of you distribution. If you elected to receive any portion of your distribution in shares, an account will be created for you at Wells Fargo, the transfer agent for Honeywell, and you will receive information from Wells Fargo directly. A request for distribution completed prior to 4:00 p.m. ET on any business day will be processed at the close of business that day. If completed after 4:00 p.m., ET, it will be processed at the close of the next business day. Important Note: If you wish to request a direct rollover of shares of Honeywell common stock, we recommend that you first verify that the plan or IRA accepting the rollover will accept stock. - 7 -

Required Minimum Distribution at Age 70 ½ Federal law requires that participants who have retired or terminated employment must start receiving required minimum distributions (RMD) in the year in which they attain age 70 ½, and each year thereafter. Your RMD amount is calculated by taking your closing balance on December 31 st of the prior year and dividing it by the applicable factor from the uniform table. If your designated primary beneficiary is your spouse and such spouse is more than 10 years younger than you are, then the actual joint life expectancy of you and your designated primary beneficiary is used to calculate your RMD amount. Minimum distributions are not eligible for rollover in an eligible retirement plan; they must be payable to the participant. As a result, eligible partial withdrawals taken during the tax year cannot be rolled over until you ve satisfied your annual RMD amount. Once you ve satisfied your annual RMD amount, the eligible amount of subsequent payments may be rolled over. If you have not satisfied your RMD by mid-december, a residual minimum distribution payment will automatically be processed from your account. If you are required to receive a residual payment in December: Federal tax will be withheld at 10% State tax will be withheld if it is required by the state in which you live Payment from the Honeywell Common Stock Fund will be made in cash Your payment will be direct deposited if you have direct deposit information on file The Plan must follow the tax laws regarding minimum distributions. Severe tax penalties will be imposed on Plan participants if we do not comply. Specifically, you would be subject to a 50% excise tax on the minimum distribution you should have received (less the amount you did receive) if that distribution is not paid to you in a timely manner. Due to these important tax implications, we suggest you consult with a professional tax advisor prior to the date you attain age 70 ½. Note: Refer to the Tax Withholding/Direct Rollover Information on page 5 and the Special Tax Notice in Appendix B for detailed tax information. - 8 -

APPENDIX A - 9 -

FIRST M.I. LAST Honeywell Savings and Ownership Plan Beneficiary Designation and Spousal Consent Honeywell PARTICIPANT'S NAME SOCIAL SECURITY NUMBER DAYTIME PHONE NUMBER XXXX ( ) BENEFICIARY DESIGNATION I hereby designate the following as my Primary Beneficiary (or Beneficiaries) and Contingent Beneficiary (or Beneficiaries) to receive distribution of my account in the Plan upon my death. I understand that: 1. If a Primary Beneficiary dies before me and I have a surviving spouse, the amount allocated to such Primary Beneficiary will be distributed in accordance with my Contingent Beneficiary designation, or, if none, to my surviving spouse. 2. If a Primary Beneficiary dies before me and I do NOT have a surviving spouse, the amount allocated to such Primary Beneficiary will be distributed in accordance with my Contingent Beneficiary designation, or, if none, to my Estate. PRIMARY BENEFICIARY(IES) 1 2 3 4 Name Partial Social Security or Trust ID Number Current Relationship to You *If you list more than one beneficiary, your form will not be processed unless the allocation percentages for all beneficiaries are in whole increments and total 100%. If you need/want to designate more than 4 Primary Beneficiaries, please make such designations on a separate sheet of paper and provide the following information for all beneficiaries: Name, Social Security Number/Trust ID Number, Current Relationship to You, Date of Birth and Allocation %. The sheet by which such designations are made must be signed by you and dated. CONTINGENT BENEFICIARY(IES) 1 2 3 4 Name Partial Social Security or Trust ID Number Current Relationship to You *If you list more than one beneficiary, your form will not be processed unless the allocation percentages for all beneficiaries are in whole increments and total 100%. Date of Birth Allocation %.00%.00%.00%.00% 100.00% Date of Birth Allocation %.00%.00%.00%.00% 100.00% I have received and understand the FAQs provided. Furthermore, I understand that by signing and delivering this Beneficiary Designation and Spousal Consent to the Plan Administrator, and subject to the requirements regarding spousal consent, I hereby revoke all prior designations of beneficiaries that I have made. I also reserve the right at any time to revoke or modify this designation. Forms are effective as soon as practicable upon receipt by the Honeywell Savings Programs. SIGNATURE OF PARTICIPANT DATE All pages of this form must be received for processing. Page 1 of 2

*IF YOU ARE MARRIED, PLEASE SEE THE NEXT PAGE FOR SPOUSAL CONSENT SPOUSAL CONSENT (Consent by Participant s Spouse) Marital Status: (Check One) Married Single Divorced IF YOU ARE MARRIED AND YOU ARE NAMING SOMEONE OTHER THAN YOUR SPOUSE AS PRIMARY BENEFICIARY, THIS BENEFICIARY DESIGNATION WILL NOT BE ACCEPTED UNLESS YOUR SPOUSE AGREES TO SUCH DESIGNATION BY COMPLETING THE BELOW CONSENT TO DESIGNATION OF NON-SPOUSE AS BENEFICIARY. YOUR SPOUSE MUST COMPLETE THIS CONSENT BEFORE A NOTARY PUBLIC. IF YOUR SPOUSE DOES NOT PROVIDE SUCH CONSENT, YOUR BENEFICIARY ELECTION WILL BE REJECTED. CONSENT TO DESIGNATION OF NON-SPOUSE AS BENEFICIARY (To Be Completed by Participant s Spouse) I have read the above Designation of Beneficiary completed by the participant and I hereby consent to such designation of the above-named beneficiary(ies) other than myself. Spouse's Name: Spouse's Signature: Date: (SEAL) State of: County of: On this day of 20, before me personally appeared, known to me to be the person who executed the above Consent to Designation of Non-Spouse as Beneficiary and acknowledged to me that (s)he executed the same. My Commission Expires: Notary Public The completed form MUST be mailed, faxed or emailed to Voya Financial prior to the participant s death. We recommend that you save a copy of this completed beneficiary designation form as well as proof of the mailing, fax or email transmission. Mail: Voya Financial Honeywell Savings Programs PO Box 23679 Jacksonville, FL 32241-3679 Fax: 1-866-329-1564 Email: honeywell@voyaplans.com If you have any questions, please call One Stop - Your Employee Services Access Line at 1-877- 258-3699, Option 1 (1-877-677-3590 for the hearing impaired, 1-617-984-1516 for international calls). I have received and understand the FAQs provided. Furthermore, I understand that by signing and delivering this Beneficiary Designation and Spousal Consent to the Plan Administrator, and subject to the requirements regarding spousal consent, I hereby revoke all prior designations of beneficiaries that I have made. I also reserve the right at any time to revoke or modify this designation. Forms are effective as soon as practicable upon receipt by the Honeywell Savings Programs. I HAVE READ AND UNDERSTAND ALL OF THE ABOVE SIGNATURE OF PARTICIPANT DATE All pages of this form must be received for processing. Page 2 of 2 06/30/2016 HW750001BENEMAN

Honeywell Savings and Ownership Plan (the Plan ) Beneficiary Designation and Spousal Consent Form Frequently Asked Questions Am I required to make a beneficiary designation? No, you are not required to make a beneficiary designation. However, if you do not take action to designate a beneficiary, upon your death, generally your Plan account will be distributed to your surviving spouse, if married, or to your estate, if you do not have a surviving spouse. How do I make a beneficiary designation? You may complete and return the Beneficiary Designation and Spousal Consent form to Voya at the address, fax number, or email address provided on the form, or you may make your beneficiary election through the Plan s website. We suggest that you retain a copy of your designation for your records and proof of delivery including fax confirmation, if faxed. I am married but do not wish to name my spouse as my Primary Beneficiary. How do I name another beneficiary? If you are married and you are naming someone other than your spouse as Primary Beneficiary, your spouse must agree to such designation by completing the Spousal Consent section of the Beneficiary Designation and Spousal Consent Form before a Notary Public. If this consent is not provided, your surviving spouse is still deemed to be your Primary Beneficiary. If I designate a person who is my spouse, and at the time of my death, this person is no longer my spouse, who will my Plan account be paid to upon my death? If, at the time you made your beneficiary designation, you named your spouse as your beneficiary, and at the time of your death this person is no longer your spouse, your Plan account will be paid to your former spouse upon your death unless you (1) remarry, or (2) you revoke your beneficiary designation and submit such revocation to the Plan before you die. You may revoke a prior beneficiary by making a new beneficiary designation using the Beneficiary Designation and Spousal Consent form or through the Plan s website at any time. 1 P age of 4

I named my child(ren)as my Primary Beneficiary(ies) following my divorce, and I later remarried. As per the terms with my new spouse, he/she agreed to not receive my Plan benefit. Do I need to make another designation? Yes, following your marriage to your new spouse you would need to make a new designation whereby your new spouse would need to complete the Spousal Consent portion of the Beneficiary Designation and Spousal Consent form indicating his/her agreement to have your Plan benefit paid to the Primary Beneficiary(ies) you list on the same form. If a new form is not submitted in this manner, your Plan benefit will be made to your surviving spouse following your death and not to the Primary Beneficiary(ies) you previously named. I have made my beneficiary designations to the Plan in my will. Is this sufficient documentation for distribution of my Plan benefit following my death? No, designation of your Plan benefit must be made through the Plan s website or through the Plan s Beneficiary Designation and Spousal Consent form. Designations made through your will cannot be accepted by the Plan. I am naming my spouse as Primary Beneficiary and my child(ren) as Contingent Beneficiary(ies) of my Plan account. If my spouse pre-deceases me, how will my Plan account be paid upon my death? If the Primary Beneficiary dies before you, the Plan account will be paid to the Contingent Beneficiary(ies) designated. If no Contingent Beneficiary(ies) were designated, your Plan benefit will be paid to your estate. If I am naming Primary and Contingent Beneficiary(ies) as part of my designation, how will my benefit be paid upon my death? If at the time of your death your Primary Beneficiary(ies) are alive, the Plan benefit would be paid to the Primary Beneficiary(ies). If at the time of your death your Primary Beneficiary(ies) are deceased, the Plan benefit would be paid to your Contingent Beneficiary(ies). If no Contingent Beneficiary(ies) were named, the benefit would pay to your spouse, or, if none, to your estate. If at the time of your death your Primary Beneficiary(ies) are alive, but passed away before the notification of your death was made to the Plan, the Plan benefit would be paid to the estate of your Primary Beneficiary. 2 P age of 4

If I have named multiple beneficiaries as either Primary or Contingent Beneficiary(ies) and one of such beneficiaries has passed away, how is the benefit paid to the remaining designated beneficiaries? If your Plan benefit is to be paid among, for example, three Contingent Beneficiaries (all Primary Beneficiaries are deceased), and one of the Contingent Beneficiaries is deceased upon your death, the portion of the Plan benefit which would have been paid to the deceased Contingent Beneficiary will instead be paid to your estate, if unmarried, or to your surviving spouse, if married. The remaining Contingent Beneficiaries will receive the allocation of your Plan account that you designated. If your Plan benefit is to be paid among, for example, three Primary Beneficiaries, and one of the Primary Beneficiaries is deceased upon your death, the portion of the Plan benefit that would have been paid to the deceased Primary Beneficiary will instead be paid to the surviving Contingent Beneficiary(ies), if any. If there are no Contingent Beneficiaries, the amount will be paid to your estate. How often may I change my beneficiary designation? You may change your beneficiary designation as often as you need. Any new designation will revoke your prior designation. If you are married and you are naming someone other than your spouse as Primary Beneficiary, your spouse must agree to such designation by completing the Spousal Consent section of the Beneficiary Form before a Notary Public. How will I know if the designation I have made and submitted is not accepted? If a beneficiary designation is not accepted, you will receive notification with an explanation why the election is not valid. You may also review approved beneficiary designations via the Plan website and on your participant statement. You will receive a confirmation statement following any beneficiary change. How do I submit my Beneficiary Designation Form? Send the completed form by mail, fax or email to Voya. Mail: Voya Financial Honeywell Savings Programs P.O. Box 23679 Jacksonville, FL 32241-3 P age of 4

Fax: 1-866-329-1564 Email: Honeywell@voyaplans.com The form must be submitted prior to the participant s death. How will I know when my beneficiary designation has been updated and accepted? Beneficiary election changes are generally processed within 2 business days if submitted on the Plan s website and within 5-7 business days after receipt if submitted via form. You will receive a confirmation statement that reflects any changes made to your beneficiary designation in the Plan. How can I confirm my Plan beneficiary? You may confirm your beneficiary designation through your Plan website available on HR Direct or outside of the Honeywell network at http://honeywell.voya.com and by selecting Personal Information, then Beneficiary Information. Your beneficiary designation is also listed on your Plan statement. For questions, you may contact One Stop at 1-877-258-3699, option 1 and speak to a Plan representative. 4 P age of 4

APPENDIX B - 10 -

HONEYWELL SAVINGS AND OWNERSHIP PLAN SPECIAL TAX NOTICE REGARDING PLAN PAYMENTS YOUR ROLLOVER OPTIONS You are receiving this notice in the event you initiate a payment and all or a portion of a payment you are receiving from the Honeywell Savings and Ownership Plan (the "Plan") is eligible to be rolled over to an IRA or an eligible employer plan. If all or part of the payment is from a designated Roth account (a type of account with special tax rules in some employer plans), your payment is eligible to be rolled over to a Roth IRA or designated Roth account in an employer plan. This notice is intended to help you decide whether to do such a rollover and to provide information to you pertaining to the taxation of your distribution for amounts not rolled over. Rules that apply to most payments from a plan are described in the "General Information About Rollovers" section. Special rules that only apply in certain circumstances are described in the "Special Rules and Options" section. In cases where the rules for a payment from a designated Roth account are different than the rules for a payment that is not from a designated Roth account, the rules that apply to each type of distribution are displayed side-by-side below. If you are receiving payments that are both from a designated Roth account and not from a designated Roth account, the payor will tell you the amount that is being paid from each type of account. If you have additional questions after reading this notice, you can contact a Plan representative at One Stop at 1-877-258-3699, Option 1 for the savings programs. WAIVER OF NOTICE PERIOD Generally, neither a direct rollover nor a payment can be made from the Plan until at least 30 days after you receive this notice. After receiving this notice, you have at least 30 days to consider whether or not to have your withdrawal directly rolled over. If you do not wish to wait until this 30-day notice period ends before your election is processed, you may waive the notice period by making an affirmative election indicating whether or not you wish to make a direct rollover. Your withdrawal will then be processed in accordance with your election as soon as practicable after it is received by the Plan administrator. How can a rollover affect my taxes? GENERAL INFORMATION ABOUT ROLLOVERS Payments not from designated Roth accounts You will be taxed on the taxable portion of a payment from the Plan if you do not roll it over. If you are under age 59½ and you do Payments from designated Roth accounts After-Tax contributions included in a payment from a designated Roth account are not taxed, but earnings might be taxed. The tax treatment of earnings included

Payments not from designated Roth accounts not rollover such taxable amounts, you will also have to pay a 10% additional income tax on early distributions (unless an exception applies). However, if you do a rollover, you will not have to pay tax until you receive payments later and the 10% additional income tax will not apply if those payments are made after you are age 59½ (or if an exception applies). See page 5 for more information on the 10% penalty and a list of exceptions. After-Tax contributions included in a payment that is not from a designated Roth account are not taxed; however, you may rollover such contributions. See page 6 for further information. Payments from designated Roth accounts in the payment depends on whether the payment is a qualified distribution. 1 If a portion of your Roth account is distributed, the payment will include an allocable portion of the earnings in your designated Roth account. If the payment from the Plan is not a qualified distribution 1 and you do not do a rollover to a Roth IRA or a designated Roth account in an employer plan, you will be taxed on the earnings in the payment. If you are under age 59½, a 10% additional income tax on early distributions will also apply to the earnings (unless an exception applies). However, if you do a rollover, you will not have to pay taxes currently on the earnings and you will not have to pay taxes later on payments that are qualified distributions. 1 See page 5 for more information on the 10% penalty and a list of exceptions. If the payment from the Plan is a qualified distribution, 1 you will not be taxed on any part of the payment even if you do not do a rollover. If you do a rollover, you will not be taxed on the amount you roll over and any earnings on the amount you roll over will not be taxed if paid later in a qualified distribution. 1 Where may I roll over the payment? Payments not from designated Roth accounts You may roll over the taxable portion of the payment to either an IRA (an individual retirement account or individual retirement annuity) or an employer plan (a tax-qualified plan, section 403(b) plan, or governmental section 457(b) plan) that will accept the rollover. The rules of the IRA or employer plan that holds the rollover will determine your investment options, fees, and rights to payment from the IRA or employer plan (for Payments from designated Roth accounts You may roll over the payment to either a Roth IRA (a Roth individual retirement account or Roth individual retirement annuity) or a designated Roth account in an employer plan (a tax-qualified plan or section 403(b) plan) that will accept the rollover. The rules of the Roth IRA or employer plan that holds the rollover will determine your investment options, fees, and rights to payment from the Roth IRA or employer plan (for example, no spousal consent rules apply to Roth IRAs and Roth IRAs may not provide loans). Further, the 1 A qualified distribution from a designated Roth account in the Plan is a payment made after you reach age 59½ (or after your death or disability) and after you have had a designated Roth account in the Plan for at least 5 years. In applying the 5-year rule, you count from January 1 of the year your first contribution was made to the designated Roth account. However, if you did a direct rollover to a designated Roth account in the Plan from a designated Roth account in another employer plan, your participation will count from January 1 of the year your first contribution was made to the designated Roth account in the Plan or, if earlier, to the designated Roth account in the other employer plan. 2

Payments not from designated Roth accounts example, no spousal consent rules apply to IRAs and IRAs may not provide loans). Further, the amount rolled over will become subject to the tax rules that apply to the IRA or employer plan. If you have After-Tax contributions included in a payment that is not from a designated Roth account, see page 6 for further information on where you may roll over the payment. Payments from designated Roth accounts amount rolled over will become subject to the tax rules that apply to the Roth IRA or the designated Roth account in the employer plan. In general, these tax rules are similar to those described elsewhere in this notice, but differences include: If you do a rollover to a Roth IRA, all of your Roth IRAs will be considered for purposes of determining whether you have satisfied the 5-year rule (counting from January 1 of the year for which your first contribution was made to any of your Roth IRAs). If you do a rollover to a Roth IRA, you will not be required to take a distribution from the Roth IRA during your lifetime and you must keep track of the aggregate amount of the after-tax contributions in all of your Roth IRAs (in order to determine your taxable income for later Roth IRA payments that are not qualified distributions 1 ). Eligible rollover distributions from a Roth IRA can only be rolled over to another Roth IRA. How do I do a rollover? There are two ways to do a rollover. You can do either a direct rollover or a 60-day rollover. If you do a direct rollover, the Plan will make the payment directly to your IRA or an employer plan; payment from a designated Roth account may be paid directly to your Roth IRA or designated Roth account in an employer plan. You should contact the IRA sponsor or the administrator of the employer plan for information on how to do a direct rollover. If you do not do a direct rollover: Payments not from designated Roth accounts You may still do a rollover of the taxable amounts of the payment by making a deposit into an IRA or eligible employer plan that will accept it. You will have 60 days after you receive the payment to make the deposit. Payments from designated Roth accounts You may still do a rollover by making a deposit within 60 days into a Roth IRA, whether the payment is a qualified or nonqualified distribution. 1 In addition, you can do a rollover by making a deposit within 60 days into a designated Roth account in an employer plan if 1 A qualified distribution from a designated Roth account in the Plan is a payment made after you reach age 59½ (or after your death or disability) and after you have had a designated Roth account in the Plan for at least 5 years. In applying the 5-year rule, you count from January 1 of the year your first contribution was made to the designated Roth account. However, if you did a direct rollover to a designated Roth account in the Plan from a designated Roth account in another employer plan, your participation will count from January 1 of the year your first contribution was made to the designated Roth account in the Plan or, if earlier, to the designated Roth account in the other employer plan. 3

Payments not from designated Roth accounts If you do not do a direct rollover, the Plan is required to withhold 20% of the payment for Federal income taxes (up to the amount of cash and property received other than employer stock). This means that, in order to roll over the entire payment in a 60-day rollover, you must use other funds to make up for the 20% withheld. If you do not roll over the entire amount of the payment, the portion not rolled over will be taxed and will be subject to the 10% additional income tax on early distributions if you are under age 59½ (unless an exception applies). See page 5 for more information on the 10% penalty and a list of exceptions. Payments from designated Roth accounts the payment is a nonqualified distribution and the rollover does not exceed the amount of the earnings in the payment. You cannot do a 60-day rollover to an employer plan of any part of a qualified distribution. 1 If you receive a distribution that is a nonqualified distribution and you do not roll over an amount at least equal to the earnings allocable to the distribution, you will be taxed on the amount of those earnings not rolled over, including the 10% additional income tax on early distributions if you are under age 59½ (unless an exception applies). See page 5 for more information on the 10% penalty and a list of exceptions. If you do a direct rollover of only a portion of the amount paid from the Plan and a portion is paid to you, each of the payments will include an allocable portion of the earnings in your designated Roth account. If you do not do a direct rollover and the payment is not a qualified distribution, 1 the Plan is required to withhold 20% of the earnings for Federal income taxes (up to the amount of cash and property received other than employer stock). This means that, in order to roll over the entire payment in a 60-day rollover to a Roth IRA, you must use other funds to make up for the 20% withheld. How much may I roll over? If you wish to do a rollover, you may roll over all or part of the amount eligible for rollover. Any payment from the Plan is eligible for rollover except: Certain payments spread over a period of at least 10 years or over your life or life expectancy (or the lives or joint life expectancy of you and your beneficiary) Required minimum distributions after age 70½ or after your separation from service, if later Required minimum distributions after death Hardship distributions ESOP dividends 1 A qualified distribution from a designated Roth account in the Plan is a payment made after you reach age 59½ (or after your death or disability) and after you have had a designated Roth account in the Plan for at least 5 years. In applying the 5-year rule, you count from January 1 of the year your first contribution was made to the designated Roth account. However, if you did a direct rollover to a designated Roth account in the Plan from a designated Roth account in another employer plan, your participation will count from January 1 of the year your first contribution was made to the designated Roth account in the Plan or, if earlier, to the designated Roth account in the other employer plan. 4

Corrective distributions of contributions that exceed tax law limitations Loans treated as deemed distributions (for example, loans in default due to missed payments before your employment ends) The Plan administrator or the payor can tell you what portion of a payment is eligible for rollover. If I don't do a rollover, will I have to pay the 10% additional income tax on early distributions? Payments not from designated Roth accounts If you are under age 59½, you will have to pay the 10% additional income tax on early distributions for any payment from the Plan (including amounts withheld for income tax) that you do not roll over, unless one of the exceptions listed below applies. This tax is in addition to the regular income tax on the payment not rolled over. Payments from designated Roth accounts If a payment is not a qualified distribution 1 and you are under age 59½, you will have to pay the 10% additional income tax on early distributions with respect to the earnings allocated to the payment that you do not roll over (including amounts withheld for income tax), unless one of the exceptions listed below applies. This tax is in addition to the regular income tax on the earnings not rolled over. The 10% additional income tax does not apply to the following payments from the Plan: Payments made after you separate from service if you will be at least age 55 in the year of the separation Payments that start after you separate from service if paid at least annually in equal or close to equal amounts over your life or life expectancy (or the lives or joint life expectancy of you and your beneficiary) Payments made due to disability Payments after your death Payments of ESOP dividends Corrective distributions of contributions that exceed tax law limitations Payments made directly to the government to satisfy a Federal tax levy Payments made under a qualified domestic relations order (QDRO) Payments up to the amount of your deductible medical expenses 1 A qualified distribution from a designated Roth account in the Plan is a payment made after you reach age 59½ (or after your death or disability) and after you have had a designated Roth account in the Plan for at least 5 years. In applying the 5-year rule, you count from January 1 of the year your first contribution was made to the designated Roth account. However, if you did a direct rollover to a designated Roth account in the Plan from a designated Roth account in another employer plan, your participation will count from January 1 of the year your first contribution was made to the designated Roth account in the Plan or, if earlier, to the designated Roth account in the other employer plan. 5

Certain payments made while you are on active duty if you were a member of a reserve component called to duty after September 11, 2001 for more than 179 days If I do a rollover to an IRA or a Roth IRA, will the 10% additional income tax apply to early distributions from the IRA or Roth IRA? If you receive a payment from an IRA or a Roth IRA when you are under age 59½, you will have to pay the 10% additional income tax on early distributions from the IRA or on early distributions of earnings from the Roth IRA, unless an exception applies or, in the case of a Roth IRA, the payment is a qualified distribution. 1 In general, the exceptions to the 10% additional income tax for early distributions from an IRA or a Roth IRA are the same as the exceptions listed above for early distributions from a plan. However, there are a few differences for payments from an IRA or a Roth IRA, including: There is no special exception for payments after separation from service after age 55. The exception for qualified domestic relations orders (QDROs) does not apply (although a special rule applies under which, as part of a divorce or separation agreement, a tax-free transfer may be made directly to an IRA or Roth IRA, as applicable, of a spouse or former spouse). The exception for payments made at least annually in equal or close to equal amounts over a specified period applies without regard to whether or not you have had a separation from service. There are additional exceptions for (1) payments for qualified higher education expenses, (2) payments up to $10,000 used in a qualified first-time home purchase, and (3) payments after you have received unemployment compensation for 12 consecutive weeks (or would have been eligible to receive unemployment compensation but for self-employed status). Will I owe State income taxes? This notice does not describe any State or local income tax rules (including withholding rules). SPECIAL RULES AND OPTIONS If your payment that is not from a designated Roth account includes After-Tax contributions After-Tax contributions included in a payment that is not from a designated Roth account are not taxed. If a payment is only part of your benefit, an allocable portion of your after-tax contributions is included in the payment, so you cannot take a payment of only after-tax contributions. If you have pre-1987 After- Tax contributions maintained in a separate account, a special rule may apply to determine whether the After-Tax contributions are included in a payment. You may roll over to an IRA a payment that includes After-Tax contributions through either a direct rollover or a 60-day rollover. You must keep track of the aggregate amount of the After-Tax contributions in all of your IRAs (in order to determine your taxable income for later payments from the IRAs) as the 1 A qualified distribution from a designated Roth account in the Plan is a payment made after you reach age 59½ (or after your death or disability) and after you have had a designated Roth account in the Plan for at least 5 years. In applying the 5-year rule, you count from January 1 of the year your first contribution was made to the designated Roth account. However, if you did a direct rollover to a designated Roth account in the Plan from a designated Roth account in another employer plan, your participation will count from January 1 of the year your first contribution was made to the designated Roth account in the Plan or, if earlier, to the designated Roth account in the other employer plan. 6

IRA provider is not required to track the information. If you do a direct rollover of only a portion of the amount paid from the Plan and at the same time the rest is paid to you, the portion directly rolled over consists first of the amount that would be taxable if not rolled over. You may roll over to an employer plan all of a payment that includes After-Tax contributions, but only through a direct rollover (and only if the receiving plan separately accounts for After-Tax contributions and is not a governmental section 457(b) plan). You can do a 60-day rollover to an employer plan of part of a payment that includes After-Tax contributions, but only up to the amount of the payment that would be taxable if not rolled over. If you miss the 60-day rollover deadline Generally, the 60-day rollover deadline cannot be extended. However, the IRS has the limited authority to waive the deadline under certain extraordinary circumstances, such as when external events prevented you from completing the rollover by the 60-day rollover deadline. To apply for a waiver, you must file a private letter ruling request with the IRS. Private letter ruling requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590, Individual Retirement Arrangements (IRAs). If your payment includes employer stock that you do not roll over Payments not from designated Roth accounts If you do not do a rollover, you can apply a special rule to payments of employer stock (or other employer securities) that are either attributable to After-Tax contributions or paid in a lump sum after separation from service (or after age 59½, disability, or the participant's death). Under the special rule, the net unrealized appreciation on the stock will not be taxed when distributed from the Plan and will be taxed at capital gain rates when you sell the stock. Net unrealized appreciation is generally the increase in the value of employer stock after it was acquired by the Plan. If you do a rollover for a payment that includes employer stock (for example, by selling the stock and rolling over the proceeds within 60 days of the payment), the special rule relating to the distributed employer stock will not apply to any subsequent payments from the IRA or Payments from designated Roth accounts If you receive a payment that is not a qualified distribution 1 and you do not roll it over, you can apply a special rule to payments of employer stock (or other employer securities) that are paid in a lump sum after separation from service (or after age 59½, disability, or the participant's death). Under the special rule, the net unrealized appreciation on the stock included in the earnings in the payment will not be taxed when distributed to you from the Plan and will be taxed at capital gain rates when you sell the stock. If you do a rollover to a Roth IRA for a nonqualified distribution that includes employer stock (for example, by selling the stock and rolling over the proceeds within 60 days of the distribution), you will not have any taxable income and the special rule relating to the distributed employer stock will not apply to any subsequent payments from the Roth IRA or employer plan. Net unrealized appreciation is generally the increase in the value of the employer stock after it was acquired by the Plan. The Plan administrator can tell you the amount of any net 1 A qualified distribution from a designated Roth account in the Plan is a payment made after you reach age 59½ (or after your death or disability) and after you have had a designated Roth account in the Plan for at least 5 years. In applying the 5-year rule, you count from January 1 of the year your first contribution was made to the designated Roth account. However, if you did a direct rollover to a designated Roth account in the Plan from a designated Roth account in another employer plan, your participation will count from January 1 of the year your first contribution was made to the designated Roth account in the Plan or, if earlier, to the designated Roth account in the other employer plan. 7