Document:

Exhibit 10.3 Agreement & General Release (Q1 2015)

Exhibit 10.3

	
	
	PLEASE SIGN AND RETURN THIS AGREEMENT AND GENERAL RELEASE TO

	MARK DEBORD BY MARCH 23, 2015.  YOU MAY REVOKE THIS RELEASE WITHIN

	7 DAYS AFTER YOU SIGN IT BY SUBMITTING A WRITTEN REVOCATION TO HR

	DIRECT.

AGREEMENT AND GENERAL RELEASE
Altria Group, Inc. (“Company”) and I, David R. Beran, agree as follows:
I acknowledge that my employment with the Company will end as of March 1, 2015 (my “Departure Date”).  I will receive the benefits described in this Agreement and General Release (“Release”), subject to the terms of this Release, and on the condition that I sign, return, do not revoke, and do not breach this Release.
Section 1 – Benefits
(a)Pay in Lieu of Long-Term Incentive Plan
As consideration for this Release, the Company will provide me with a payment in lieu of my participation in the 2014-2016 Long-Term Incentive Plan (“LTIP”) until my Departure Date.  This payment will be calculated based upon the terms of the LTIP and will be paid in February 2017 after the planned completion of the LTIP in December 2016, subject to approval by the Compensation Committee of Altria’s Board of Directors.  This payment shall not be considered earnings for purposes of the Retirement Plan or Deferred Profit-Sharing Plan for Salaried Employees (“DPS Plan”).  As of my Departure Date, I acknowledge and agree that I cease to be eligible for future long-term incentive plan awards.
(b)Payment In Lieu of 2015 Incentive Compensation
As further consideration for this Release, I will receive a pro-rated payment in lieu of an incentive compensation award for 2015 prorated at target.  This payment shall not be considered earnings for purposes of the Deferred Profit-Sharing Plan for Salaried Employees (“DPS Plan”).
As of my Departure Date, I acknowledge and agree that I cease to be eligible for future incentive compensation awards.
(c)Stock Awards
As further consideration for this Release, the Company will provide me with a cash payment equal to two-thirds (2/3) of the value of my 2013 annual Altria Group 

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Stock Award and one-third (1/3) of the value of my 2014 annual Altria Group Stock Award, less any applicable withholdings.
(i)    These payments for 2013 and 2014 unvested annual stock awards will be based on the average closing price on the New York Stock Exchange Composite Index for a share of Altria Group common stock on each of the 20 trading days immediately preceding my Departure Date.
(ii)    I understand and agree that these payments are being made and the valuations will be determined in accordance with the terms established at the sole discretion of the Company.  I also understand these payments are being made to me based on the forfeiture of my 2013 annual Altria Group Stock Award and my 2014 annual Altria Group Stock Award.  I also understand and agree that any off-cycle or non-annual stock awards that I have received, but which have not vested as of my Departure Date, will be forfeited.  Finally, I understand and agree that I will not be eligible for any future stock awards and that I will not be entitled to receive dividends on any unvested stock awards after my Departure Date.
(d)Unused Vacation 
If I have accrued unused vacation days for the calendar year of my Departure Date, I will be paid for such days.  Any payment for vacation made pursuant to this paragraph is not contingent upon me signing this Release.  
(e)Indemnification
To the extent permitted by the Company’s Articles of Incorporation (“Articles”) and applicable corporate law, the Company shall indemnify me for liability and reimburse me reasonable expenses incurred because I am or was a party to any proceeding by reason of the fact that I was a director, officer or employee of the Company; provided, however, that I furnish a statement of belief and undertaking, which shall be provided by the Company and substantially similar to the sample attached as Attachment A, and comply with any other requirements, required by the Articles or applicable corporate law for such indemnification or reimbursement.
(f)Acknowledgement of Additional Consideration In Exchange For Release
Except as otherwise noted in this Release, I understand and agree that the benefits described in this Release are the full consideration offered in exchange for signing this Release, and that these constitute consideration above that to which I would otherwise be entitled.

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(g)Acknowledgement of Payment of All Compensation and Remuneration
I acknowledge and agree that I have been paid all compensation and remuneration owed to me during or as a result of my employment with the Company, except as specifically set forth in this Release.  I also acknowledge and agree that no other pay or benefits other than those described herein are or will be due to me as a result of my employment with or separation from the Company, except for vested benefits under the Retirement Plan or the Deferred Profit Sharing Plan for Salaried Employees to which I am entitled to receive without executing this Release.
(h)Taxes
I am responsible for paying any taxes on amounts I receive because I signed this Release and I agree that the Company is to withhold all taxes it determines it is legally required to withhold.
(i)Timing of Payments
Except where the timing of certain payments is specifically described elsewhere in this Release, any other payments described in this Release will be paid to me in accordance with applicable law and as soon as practicable after my execution of this Release and the expiration of the 7-day revocation period.
(j)References
The Company agrees to abide by its neutral reference policy with respect to inquiries from potential employers about me.  I agree to provide any potential employer with proper contact information for the ALCS Human Resources Department.  Pursuant to the neutral reference policy, the Company will provide only my dates of employment and last position held with respect to such inquiries.
Section 2 – My Complete Release of Claims
(a)In General
I unconditionally release and discharge all the Claims described in Section 2(b) that I may now have against the Released Parties as defined Section 2(c), except that I am not releasing: (i) any claim that cannot lawfully be released or discharged, (ii) any claim that relates to my right to enforce this Release, or (iii) any claim that may arise after I sign this Release.
(b)Claims Released
Subject only to the exceptions in Section 2(a), I am releasing and discharging all known and unknown claims, promises, causes of action, or similar rights of any type that I presently may have (“Claims”) with respect to any of the Released Parties listed in 

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Section 2(c).  I understand that the Claims I am releasing and discharging might arise under many different laws (including federal, state and local statutes, executive orders, regulations, other administrative guidance, and common law doctrines), including but not limited to the following:
(i)    Antidiscrimination statutes, such as the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, Executive Order 11141, Title VII of the Civil Rights Act of 1964, Section 1981 of the Civil Rights Act of 1866, Executive Order 11246, the Equal Pay Act, the Americans with Disabilities Act, Sections 503 and 504 of the Rehabilitation Act of 1973, and any other federal, state, or local laws prohibiting these or other kinds of employment discrimination.
(ii)    Federal, state, or local employment statutes, such as the Worker Adjustment and Retraining Notification Act (“WARN Act”), the Employee Retirement Income Security Act of 1974, the Family and Medical Leave Act, and any other federal, state or local laws relating to employment.
(iii)    Other laws, such as federal, state, or local laws regarding workers’ compensation (to the extent permitted by applicable law), an employer’s right to terminate employees, or otherwise regulating employment; any federal, state, or local law enforcing express or implied employment contracts or requiring an employer to deal with employees in any prescribed manner; any other federal, state, or local laws providing recourse for alleged wrongful discharge, physical or personal injury, emotional distress, fraud, negligent misrepresentation, defamation, retaliation and similar or related claims; and the laws of countries outside the United States (including laws mandating severance payments).
(iv)    Examples of Claims I am releasing and discharging include, but are not limited to: (1) Claims that in any way relate to my employment with the Company or its affiliates, or the termination of that employment, such as Claims for compensation, bonuses, incentive compensation payments, lost wages, or leave pay; (2) Claims that in any way relate to the design or administration of any employee benefit program; (3) Claims to any benefits under the Severance Plan; (4) Claims that I have irrevocable or vested rights to severance or similar benefits or to post-employment health or group insurance benefits (other than as specifically set forth in this Release); (5) Claims, such as a benefit claim, that were explicitly or implicitly denied before I signed this Release or (6) any Claim to attorneys’ fees or other indemnities.
(v)    Unknown Claims.  I understand that I am releasing and discharging Claims that I may not know about.  That is my knowing and voluntary intent, even though I recognize that someday I might learn that some or all of the facts I currently believe to be true are untrue and even though I might then regret having signed this Release.  Nevertheless, I am assuming that risk and I agree 

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that this Release shall remain effective in all respects in any such case.  I expressly waive all rights I might have under any law that is intended to protect me from waiving unknown claims and I understand the significance of doing so.
(c)Released Parties
The Released Parties are the Company, all affiliated companies, parents, divisions or subsidiaries, and, with respect to each of them, all of the Company’s or such related entities’ predecessors and successors, and, with respect to the Company and each entity described above, all of their past and present employees, officers, directors, stockholders, owners, representatives, assigns, attorneys, agents, insurers, employee benefit programs (and the trustees, administrators, fiduciaries, and insurers of such programs), and any other persons acting by, through, under, or in concert with any of the persons or entities listed in this paragraph.
(d)Right to Revoke
I may revoke this Release within 7 days after I sign it by submitting a written revocation to HR Direct, in which case this Release will be canceled and of no force or effect, and I will not be entitled to receive the Salary Continuation and other benefits provided in exchange for executing this Release.
Section 3 – My Promises
(a)Pursuit of Released Claims
(i)    No Relief for Pending Claims:  I acknowledge that I have not filed, submitted, initiated, or participated as a party in any complaint, charge, claim or demand relating to my employment against any of the Released Parties that currently is pending or otherwise has not been fully and finally resolved as of my Departure Date, except for the following (list below any pending lawsuits, or government, administrative or other dispute resolution proceedings you have filed, submitted, or otherwise initiated against any of the Released Parties, by caption, number and court or agency (“Pending Claims”); if you write “None” or leave this space blank, you are representing that no such proceedings exist):
	
		
	 
	 

	 
	 

I acknowledge and understand that I am releasing any right to any personal relief under any Pending Claims identified above by signing this Release.
(ii)    No Future Lawsuit for Released Claims:  I further agree not to file any lawsuit, demand for arbitration, or any other adversarial or administrative proceeding seeking personal relief (individually, with others, or as part of a 

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putative class) in the future pursuing any of the Claims released and discharged in this Release.  I acknowledge and understand that I am expressly waiving my right to any personal relief for Claims released and discharged in this Release, including but not limited to lost wages, salary, benefits, money damages, attorneys’ fees, costs, reinstatement, or any other legal or equitable relief whatsoever, even if sought on my behalf by any governmental agency or any person claiming to represent me and/or any member of a putative class.  
Notwithstanding the above, I acknowledge that nothing in this Release prevents me from continuing to participate in any government investigation identified above, or filing any other charge or complaint with a governmental agency relating to my employment and cooperating in the investigation of such a charge or complaint.  I understand and acknowledge that once the government has completed its investigation of any such charge or complaint, I will not personally be able to pursue or accept relief for any of the claims made in that charge or complaint to the extent such claims have been released by me pursuant to this Release.
(b)Company Property and Records Management
By my signature below, I certify that I have conducted a diligent search for, and have returned or return herewith: (1) any and all "Confidential Information," as that term is defined in Section 3(f) of this Release; (2) the originals and all copies of any business records of the Company and its affiliates and any credit cards, access and identification cards, computers, cellular telephones, PDA’s, wireless devices, keys, and any other property of the Company or its affiliates in my possession; and (3) any and all other confidential, secret or proprietary materials in my custody, possession or control belonging to or obtained from the Company and its affiliates.
I also certify that I have properly preserved and retained all records of the Company within my possession or control that are needed for business or legal purposes in accordance with the Company’s policies and other applicable guidance addressing records management.  I have appropriately provided both access to those records and instructions to management regarding those records such that the Company will be able to find and utilize them.
(c)Certification of Compliance
By my signature below, I certify to the best of my knowledge that, during my employment with the Company, I have not engaged in conduct that violated the Company’s policies or applicable laws (with the exception of any conduct previously reported to the Company).  I also certify that, during my employment with the Company, I have been afforded the opportunity to report to the Company any alleged violations of its policies or applicable laws, and that to the best of my knowledge there is no violation of which I am aware that has not been reported.

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(d)Non-Admission of Liability
I agree not to assert that this Release is an admission of guilt or wrongdoing and I acknowledge that the Released Parties do not believe or admit that any of them has done anything wrong. 
(e)No Disparagement
I agree not to criticize, denigrate or disparage any of the Released Parties or any of the Company’s policies and practices.  I agree not to criticize, denigrate or disparage any product manufactured, sold, or being developed by any of the Released Parties at the time this Release is executed.
(f)Nondisclosure and Non-Competition
I acknowledge that during the course of my employment, I was entrusted with certain personnel, business, financial, technical and other proprietary information and materials, which are the property of the Company and/or its affiliates and which involve confidential information concerning the Company’s operations, business methods and employees (“Confidential Information”).  I promise that I will not communicate or disclose to any third party, or use for my own account, without the written consent of the Company, any such information or materials, except as set forth in Section 3(g), unless and until such information becomes generally available to the public through no fault of mine.  I also agree that this promise will never expire.  
I further agree that I have not disclosed, and will forever refrain from disclosing, to any person or entity the terms and conditions of this Release or the negotiations leading up to this Release.  However, this does not prevent me from disclosing this Release to my tax advisor, immediate family, and legal counsel, provided that my tax advisor, immediate family, and legal counsel are instructed not to disclose the terms and conditions to anyone and they agree not to disclose the terms and conditions to anyone.
I acknowledge that the Company and/or its affiliates would be irreparably harmed by any actual or threatened breach of my promises in this Section 3(f) and that the Company and/or its affiliates will be entitled to an injunction prohibiting me from committing any such violation.  I agree that any violation or breach of the nondisclosure obligations set forth in this Release, including, but not limited to, disclosures by me, my tax advisor, immediate family or legal counsel, will entitle the Company to recover from me any and all amounts previously paid to me because I signed this Release, but will not release me from the performance of my obligations under this Release.
I acknowledge I may have executed a previous agreement or agreements (“Prior Agreement”) with the Company, its affiliates, or a predecessor to such companies, relating to confidentiality of information or non-competition obligations. I acknowledge 

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and agree that, to the extent applicable and not contrary to the terms of this Release, the terms of such Prior Agreement shall remain in full force and effect.
(g)Notice of Request for Disclosure
In the event I am lawfully issued a subpoena or court order or other lawful request by a regulator or governmental authority related to my employment with or separation from the Company or its affiliates, I will give the Company at least 10 days’ notice prior to the time noticed for such disclosure, unless such notice is impossible, in which case, I will give the Company immediate notice within not more than 24 hours after I receive any such subpoena, court order or request.  I understand, notwithstanding any other provision of this Release, that nothing in this Release prohibits me from complying with and responding truthfully to any lawfully-issued subpoena, court order or other lawful request by any regulatory agency or governmental authority.
(h)Implementation
I agree to sign any documents and do anything else that is necessary in the future to implement this Release.
(i)Cooperation
To the extent consistent with applicable law, I agree to cooperate reasonably and truthfully with the Company and its affiliates in the prosecution, defense, or pursuit of any matter in which I was involved during my employment.  I also agree that, consistent with applicable law,  I will not assist and/or participate in the pursuit of any claims or actions brought against any of the Released Parties except as set forth in Sections 3(a) and 3(g). 
Section 4 – Consequences of Violating My Promises
The promises and representations I made in Section 3 are a material inducement for the Company to enter into this Release.  If the Company determines I have violated a promise in Section 3 or that if any representation I made in Section 3 was false when made, the Company will notify me of such violation.  I agree that the Company may, in its discretion and without waiving any other rights or remedies it may have, cease payment of any payments under this Release.  I also agree to reimburse the Company, upon its request and as allowed by applicable law, for any amounts previously paid to me or on my behalf because I signed this Release and to pay any other damages, reasonable costs, expenses, and attorneys’ fees that the Company or any of the other Released Parties may incur as a result of my breaching any promise I made in Section 3 of this Release or if any representation I made in Section 3 of this Release was false when made.

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Section 5 – In the Event of Death, Disability, Other Employment or Retirement
(a)Death
In the event that I die prior to the date all payments under this Release have been made to me, my estate shall receive any remaining payments in a manner and at a time determined by the Company under the circumstances, less applicable withholdings.
(b)Disability
As of my Departure Date, I am no longer eligible to participate in the Company’s Short-Term Disability Plan.  
(c)Retirement 
Since I am eligible to retire under the Retirement Plan, my “Retirement Date” will be considered the first day of the month I elect in my retirement application for a retirement benefit.  I am able to participate in Company-sponsored post-retirement health and welfare benefits if eligible under, and in accordance with the terms of, the Retiree Medical Plan.  I acknowledge that the Company (or its successors) may, and reserves the right at its discretion to, terminate, amend, modify or reduce all or a portion of the post-retirement health and welfare benefits offered under the applicable plans at any time.
Section 6 – Consideration of Release
I acknowledge that before deciding to sign this Release, I was given a period of at least 21 calendar days to consider this Release.  If I choose to execute this Release prior to the expiration of the 21 day period, my execution prior to the expiration of the 21 day period is my free and voluntary act.  I further acknowledge that the Company encouraged me to discuss this Release with my attorney before signing it and that I had the opportunity to do so to the extent I deemed appropriate.  I further acknowledge that I (a) carefully read this Release; (b) fully understand it; and (c) enter into it voluntarily and without relying on any promises, statements or representations by the Company or its employees.  
Section 7 – Miscellaneous
(a)Entire Agreement
Except as otherwise noted in this Release, this Release constitutes the entire agreement between me and the Company.  This Release may not be modified or canceled in any manner except by a writing signed by both me and an authorized Company official.  I acknowledge that the Company has made no representations or promises to me other than those in this Release.  If any provision in this Release is found to be invalid or unenforceable, all other provisions will remain fully enforceable. 

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(b)Successors
This Release binds my heirs, administrators, representatives, executors, successors, and assigns, and anyone else claiming through me or on my behalf, and will inure to the benefit of all Released Parties and their respective heirs, administrators, representatives, executors, successors, and assigns.
(c)Interpretation and Governing Law
This Release shall be construed as a whole according to its fair meaning.  It shall not be construed strictly for or against me or any of the Released Parties.  Unless the context indicates otherwise, the term “or” shall be deemed to include the term “and” and the singular or plural number shall be deemed to include the other.  Captions are intended solely for convenience of reference and shall not be used in the interpretation of this Release.  This Release shall be governed by and construed and enforced in accordance with the laws of the Commonwealth of Virginia applicable to contracts made and to be performed therein, without giving effect to conflict of laws principles.
BY SIGNING BELOW, THIS RELEASE IS AGREED TO AND VOLUNTARILY ACCEPTED BY:

	
				
	Date:
	March 2, 2015
	 
	/s/ DAVID R. BERAN

	 
	 
	 
	David R. Beran

	 
	 
	 
	Personnel #:  54586

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	Date:
	March 12, 2015
	 
	/s/ J. MARK DEBORD

	 
	 
	 
	J. Mark DeBord

	 
	 
	 
	Vice President, Human Resources

	 
	 
	 
	Altria Client Services Inc.

	 
	 
	 
	On behalf of the Company

      

10RTN-03.29.2015-Exhibit 10.1

Exhibit 10.1
	
						
	Raytheon
	 
	 
	Thomas A. Kennedy
	 
	Raytheon Company

	 
	 
	Chairman and CEO
	 
	870 Winter Street

	 
	 
	 
	781.522.6400 business
	 
	Waltham, Massachusetts

	 
	 
	 
	781.522.6401 fax
	 
	02451 USA

	 
	 
	 
	tkennedy1@raytheon.com
	 
	 

January 15, 2015

Jay B. Stephens

Re:  Transition Agreement 

Dear Jay:

This Transition Agreement ("Agreement") confirms the understandings we have reached with respect to your retirement from employment with Raytheon Company.

1.Retirement Date: Your separation date from Raytheon will be June 30, 2015, with your retirement commencing July 1, 2015. During the period of employment from April 1, 2015 to June 30, 2015 you may continue to participate in professional related organizations of which you are a member with reasonable expenses provided by the Company to support such meeting activities.

		
	2.
	Results Based Incentive ("RBI") Bonuses: You will receive an RBI payment for 2014 of

$1,300,000. The payment will be made at the normal timeframe in 2015 that payment is made to all eligible employees. You will receive an RBI payment for 2015 of $800,000 to be paid June 30, 2015.

		
	3.
	Restricted Stock Awards: You will be granted Restricted Stock Units with a value of

$1,000,000, awarded in March 2015 in conjunction with the Company's annual Restricted Stock Grants, subject to approval by the Raytheon Board of Directors. The Award of such Restricted Stock Units shall be subject to the terms of related Restricted Stock Unit Award Agreements and shall vest on the third anniversary of the award.

Treatment of your unvested restricted share awards will be according with the provisions of the Plan under which they were granted and the Grant Agreements. Restricted Shares, on which the restrictions have not lapsed as of the separation date, will be forfeited as of that date. In lieu thereof, subject to approval by the Board of Directors, a grant of new Restricted Stock Units of the same number of shares will be effective upon retirement with your commitment to support the General Counsel and Secretary leadership transition, acceptance of this Agreement, and the terms of the attached Restricted Stock Unit Agreement (Exhibit A). These Restricted Stock Units will vest in equal portions over two years in accordance with and subject to the terms and conditions of the attached Restricted Stock Unit Agreement.

4.LTPP Stock Units: Payout (if earned) will be based on the performance achieved for the three year cycle pursuant to the terms of the LTPP Plan. As of the date of this document, you have awards at target of 57,739 shares of restricted stock units awarded under the following LTPP Programs and prorated to June 30, 2015:
	
				
	Plan Year
	Target Shares
	Prorata target shares based on months
	Payable in February

	2012-2014
	24,140
	36/36 mths  = 24,140 shares
	2015

	2013-2015
	20,619
	30/36 mths = 17,183 shares
	2016

	2014-2016
	12,980
	18/36 mths = 6,490 shares
	2017

5.Senior Executive Life Insurance: Reductions to life insurance coverage began on December 1, 2011 (the first day of the month following your 65th birthday), with subsequent reductions occurring every December thereafter until 2016, when a final capped benefit of $600,000 is reached.

6.Other Benefits: In addition to Senior Executive Life Insurance coverage, you are eligible for company sponsored retiree life insurance in the amount of $2,000. You are also eligible to receive a maximum of $12,000 per year for 3 years ($36,000) following retirement for financial services. A detailed retirement portfolio will be prepared for you to explain both your pension payout options and your healthcare options in retirement. The Human Resource organization is prepared to walk you through the detail and assist you with your transition of benefits.

		
	7.
	Paid Time Off: You will be paid any accrued but unused PTO as of your separation date.

8.Advisory Services: Between the dates of July 1, 2015 and December 31, 2015, at mutually agreed times, you will be available up to three days a month to provide Advisory Services on behalf of Raytheon Company at no additional compensation . Assignment of any Advisory Service responsibilities will be at the direction of the Raytheon Company Chief Executive Officer, with reasonable expenses and first class air travel provided by the Company to support any Advisory Service responsibilities.

		
	9.
	General Release: You agree to execute the General Release attached hereto.

10.Legal Proceedings: You agree that you will cooperate fully with the Company, regarding existing and future legal or administrative proceedings or asserted claims relating to events which occurred during your employment in which Raytheon is a party, and as to which you might in the Company's view have personal knowledge, including without limitation the execution of affidavits or other documents providing information requested by Raytheon Company.

11.Security Clearance: In the course of your employment at Raytheon, you may have come into possession of or exposure to matters due to your security clearance. The Company reminds you that disclosure of any information which came to you as a result of your security clearance, including work product, company plans and other matters, shall not be discussed or revealed in any way, except if required to do so pursuant to a proceeding instituted by an appropriate government agency or at the request of an authorized company agent. The Company shall continue to hold your DOD collateral TS security clearance as appropriate or until it is otherwise transferred to an appropriate sponsor.

12.Confidential and Proprietary Information: You agree to keep all confidential and proprietary information of the Company, its subsidiaries and affiliated companies, including joint venture partners, strictly confidential except to the extent disclosure is required by law or court order, and except to the extent that such confidential and proprietary information has become public through no fault of your own.

13.Ethics Compliance: You hereby represent and warrant that, to the best of your knowledge, you have complied in full with all Raytheon Company policies related to ethics, and have disclosed to the Company all matters which were required to be disclosed by said policies.

14.Confidentiality of This Agreement: Except as otherwise required by law or regulation, you agree to keep the terms and conditions of this Agreement confidential and will not disclose the terms  hereof to anyone,  except to immediate family  members, tax accountants,  lawyers, financial advisors, the Internal Revenue Service or any other taxing authority and/or others who have a reasonable need to know the terms hereof.

15.Insider Information: In the course of your responsibilities, you may constitute an "insider" for securities law purposes. We would like to remind you that any financial plan, program, estimate or 

matter not readily available to the general public shall be kept in strictest confidence and may not be disclosed or discussed.

16.Non-Disparagement Agreement: You and Raytheon Company mutually agree not to disparage one another. Raytheon, its officers, directors and employees, and you shall have the right to make truthful responses to any charges, accusations or allegations, and no such response shall be considered a breach of this non-disparagement agreement.

17.Governing Law and Arbitration: This Agreement shall be governed by and construed and enforced in accordance with the laws of Massachusetts. Any dispute arising under this Agreement shall be settled exclusively through arbitration. Such arbitration shall be conducted in accordance with the rules of the American Arbitration Association before a single arbitrator in the city to be determined by mutual agreement. The decision of the arbitrator shall be final and binding on both parties. Judgment may be entered on the award of the arbitrator in any court having proper jurisdiction.

You understand that, if you elect to revoke the Release attached hereto within seven (7) days after its execution, this Letter Agreement shall be null and void and each party will have all rights and obligations afforded them under the law as if this Letter Agreement had not been signed by the parties and as if the Release had never been signed by you. You agree, in the event of revocation of the Release, to immediately return any consideration received in support of said Release.

This Agreement shall be binding upon and inure to the benefit of you and Raytheon Company and each of your respective successors and assigns.

This Agreement sets forth the entire agreement and understandings of the parties and supersedes all previous discussions, commitments or agreements.

If you have any questions about this Agreement, please contact me.

Sincerely,

 /s/ Thomas A. Kennedy      
Thomas A. Kennedy
Date: January 17, 2015

GENERAL RELEASE

I agree to accept the benefits and payments set forth in the Transition Agreement dated, January 15, 2015, as full satisfaction in all respects of any and all obligations of any kind which might otherwise be due me from Raytheon Company. I hereby specifically waive, remise, release and forever discharge Raytheon Company, its affiliates, subsidiaries, directors, officers, employees, agents and successors (hereinafter referred to as "Raytheon") from all manner of claims, liabilities, demands and causes of action, know or unknown, fixed or contingent, which I may have or claim to have against Raytheon as a result of my employment and the termination thereof, and do hereby covenant not to file or commence a lawsuit against Raytheon to assert any such claims. I understand that this General Release encompasses all claims arising under federal, state or local law, including but not limited to claims arising under any theory of wrongful discharge. This General Release is binding upon my successors, heirs, executors and administrators, but does not waive any rights or claims unrelated to this Agreement or my employment with Raytheon Company, and which occur subsequent to the date of my separation from Raytheon Company and the date this General Release is executed.

I have read carefully and fully understand all the provisions of this General Release. I understand that I may consult with an attorney before executing this General Release. I acknowledge that this General Release sets forth the entire agreement between me and Raytheon with respect to additional consideration being provided to me and that I have not relied upon any representation or statement, written or oral, not set forth in this document.

   

   /s/ Jay B. Stephens                        
(Signature)

Date:   January 15, 2015   

Exhibit A

RAYTHEON 2010 STOCK PLAN 
RESTRICTED STOCK UNIT AWARD AGREEMENT

This Restricted Stock Unit Award Agreement, dated as of June 30, 2015 (the "Award Date") is between Raytheon Company (the "Company"), and Jay B. Stephens, an employee of the Company or one of its Affiliates  ("you").

		
	1.
	Award of Units

The Company hereby awards you the number of restricted stock units ("Units") set forth below, with respect to its common stock, par value $0.01 per share (the "Stock"), subject to the terms and conditions of the Raytheon 2010 Stock Plan (the "Plan") and the vesting and other provisions of this Agreement. Subject to the provisions hereof, each Unit represents the right to receive one share of Stock (a "Share") plus additional cash payments in lieu of dividends as described in Section 6 below.

	
					
	Total Number of Restricted Units (the "Award"):   16,527
	Vesting Date/ # Units

	Vesting Schedule:
(Each period  from the Award Date until the Vesting Date is a "Restriction Period".)
	l
	June 30, 2016
	8,264

	l
	June 30, 2017
	8,263

		
	2.
	Acceptance of Award

This Award is not effective or enforceable until you properly acknowledge your acceptance of the Award by returning an executed copy of this Award Agreement to Executive Compensation as instructed below no later than July 30, 2015. If you do not properly acknowledge your acceptance of this Award Agreement on or before July 30, 2015, this Award will be forfeited.

Acceptance of this Award Agreement must be made only by you personally or by a person acting pursuant to a power of attorney in the event of your inability to acknowledge your acceptance due to your disability or deployment in the Armed Forces (and not by your estate, your spouse or any other person). If you desire to accept this Award, you must acknowledge your acceptance and receipt of this Award Agreement by signing and returning a copy of it to:  Raytheon  Company, Executive  Compensation,  Attention:   Nicole  Wilson,  870 Winter Street. Waltham, MA   02451, in the enclosed self-addressed stamped envelope.

Assuming prompt and proper acknowledgement of your acceptance of this Award Agreement as described above, this Award will be effective as of the Award Date. Acceptance of this Award Agreement constitutes your consent to any action taken under the Plan consistent with its terms with respect to this Award and your agreement to be bound by the restrictions contained in Exhibit A attached hereto ("Post-Employment Conduct").

		
	3.
	Vesting of Units on Continued Service

Subject to Sections 4, 5, and 8E below, if you are continuously employed by the Company or an Affiliate from the Award Date until the Vesting Date noted above, the Units associated with that Vesting Date shall vest and the restrictions on those Units shall lapse.

		
	4.
	Effect of Termination of Employment

Notwithstanding anything herein to the contrary, if (i) on the Award Date you have attained at least the age of sixty (60) and have completed at least ten (10) years of service and (ii) you cease to be an employee of the Company or an Affiliate for any reason, other than for Cause, after the Award Date but prior to the end of the Restriction Period, you will continue to vest in your Units and receive dividend equivalents (as provided in Section 6 below) per the Vesting Schedule, as if you remained employed by the Company or an Affiliate until the end of the Restriction 

Period.

		
	5.
	Effect of Death, Medical Leave of Absence, Disability or Change in Control.

Notwithstanding anything above to the contrary, the Units shall vest and restrictions on the Units shall lapse as follows:

		
	a)
	immediately upon your death;

		
	b)
	in accordance with the Vesting Schedule in the event of (i) a Medical Leave of Absence of at least one year or (ii) Disability; or

		
	c)
	immediately upon a Change in Control.

		
	6.
	Payment; Dividend Equivalents

The Company shall deliver to you evidence of ownership of the net number of Shares equal to the number of vested Units reduced by the number of Shares previously accelerated to pay taxes, if any, and the number of Shares necessary to satisfy tax withholding obligations, both as described in Section 8E below, as soon as practicable after the Vesting Date applicable to the Units or, if earlier, on your death or on any Change in Control which is a change of ownership or effective control of the Company or a change of ownership of a substantial portion of its assets, in each case, for purposes of Section 409A of the Code. For the avoidance of doubt, after a Change in Control occurs, such Units shall be considered vested and not subject to forfeiture hereunder. During any Restriction Period, unless otherwise forfeited, you shall be entitled to receive a cash payment in lieu of dividends on the number of Shares the Units covered by this Award represent, when, if and to the extent that the Board has approved a dividend for all Company common shareholders during any Restriction Period.

		
	7.
	Post-Employment  Conduct

Except where prohibited by law, by accepting this Award, you agree to the Post-Employment Conduct restrictions contained in Exhibit A to this Award Agreement.

		
	8.
	Other Provisions

		
	A.
	No  Guaranty  of Future  Awards. This Award does not guarantee you the right to or expectation  of future Awards under the Plan or any future plan adopted by the Company. 

		
	B.
	No Rights as Shareholder. You shall not be considered a shareholder of the Company with respect to the Units until Shares are issued to you in payment of the Units. Therefore, you have no right to vote the Units or to receive dividends with respect to such Units except as provided in Section 6 above. 

		
	C.
	No Rights to Continued Employment; Recipient Obligations. This Award shall not be deemed to create a contract or other promise of continued employment with the Company or an Affiliate and shall not in any way prohibit or restrict the ability of the Company or an Affiliate to terminate your employment at any time for any reason. This Award Agreement provides for certain obligations on your part following the cessation of your employment with the Company or an Affiliate and shall not, by implication or otherwise, affect in any way your obligations to the Company or an Affiliate during the term of your employment by the Company or an Affiliate, whether pursuant to written agreements between the Company and you, the provisions of applicable Company policies that may be adopted from time to time or applicable law or regulation. 

		
	D.
	Restrictions on Transfer of Units. Until the vesting of, and lapse of the restrictions applicable to, any Units and the delivery of Shares in payment therefor, Units may not be sold, transferred, pledged, exchanged, hypothecated or disposed of by you and shall not be subject to execution, attachment or similar process. 

		
	E.
	Taxes. Taxes may be assessed and/or withheld as required by law at applicable United States federal, state and/or other tax rates (under the laws of the jurisdictions in which you reside or that may otherwise be applicable to you) with respect to Units, issuance of Shares and cash in lieu of dividends. The Company will accelerate the vesting and payment of Units to pay your Federal Insurance Contributions Act (FICA) tax on Units, the income tax withholding that results from payment of your FICA tax, and your additional FICA 

tax and income tax withholding attributable to the pyramiding of FICA tax and income tax withholding due to the foregoing payments. 
		
	F.
	Clawback. If you are an elected officer, in addition to any other remedies available to the Company (but subject to applicable law), if the Board determines that it is appropriate, the Company  may recover (in whole or in part) any payment made pursuant to this Award where: (1) the payment was predicated upon achieving certain financial results that were subsequently the subject of a restatement of Company financial statements filed with the Securities and Exchange Commission; (2) the Board determines that you engaged in knowing or intentional fraudulent or illegal conduct that caused or substantially caused the need for the restatement; and (3) a lower payment would have been made to you pursuant to the Award based upon the restated financial results. In any  such  instance,  the Company will, to the extent practicable, seek to recover from you the amount by which the payment pursuant to the Award for the relevant period exceeded the lower payment that would have been made based on the restated financial results. The Company's right of recovery applies to both the vested and unvested portion of the Award.  

		
	G.
	Compliance  with   Section  409A  of  the  Code.   Notwithstanding  anything  in this Agreement  to  the contrary, to the extent that this Agreement constitutes a nonqualified deferred compensation plan  to which Code Section 409A applies, the administration  of this Award  (including time and manner  of payments under it) shall comply with Section 409A. 

		
	H.
	Plan. All terms and conditions  of the Plan are incorporated herein by reference and constitute an integral part hereof. Any capitalized terms used but not defined herein  shall have the meanings ascribed to them in the Plan. 

		
	I.
	Notices.  Notices required or permitted hereunder shall be in writing and shall be delivered personally or by mail, postage prepaid, addressed to Raytheon Company, 870 Winter Street, Waltham, Massachusetts 02451, Attention: Senior Vice President, Human Resources, and to you at your address as shown on the Company's payroll records. 

		
	J.
	Entire Agreement; Successors and Assigns. The Plan and this Award Agreement constitute the entire agreement governing the terms of the Award to you. The Award Agreement shall inure to the benefit of the Company's successors and assigns and may be assigned by the Company without your consent. 

		
	K.
	Governing Law. This Award Agreement shall be governed by the law of the Commonwealth of Massachusetts, without regard to its provisions governing conflicts of law.

Your acceptance of this Award constitutes your agreement to the terms of this Restricted Stock Unit Award Agreement.

RAYTHEON  COMPANY
	
		
	 
	 

	Thomas A. Kennedy
	 

	Chief Executive Officer
	 

(Please complete, sign and return by mail.)

Acknowledged by:
	
				
	 
	 
	 
	 

	Signature
	 
	Date
	 

	 
	 
	 
	 

	Print Name
	 
	Employee ID
	 

Exhibit A
Post-Employment Conduct
The Post Employment Conduct Restrictions (the "Restrictions") attached as Exhibit A to the Restricted Stock Unit Award Agreement (the "Award Agreement") with an Award Date of June 30, 2015 are agreed to in consideration of, among other things, the grant of restricted stock units to Jay B. Stephens ("you"), under the Award Agreement pursuant to the Raytheon 20 I 0 Stock Plan (the "Plan"). Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Award Agreement or the Plan. The following terms as used herein shall mean:
Authorized Company Representative means the Company's Chief  Executive  Officer  acting upon the advice and recommendation of the Company's General Counsel;
Restricted Activity means any activity (A) in which you contribute your knowledge, directly or indirectly, in whole or in part, as an employee, consultant, agent or director or any other similar capacity that, in any such case, involves or relates to products, services or solutions of a Restricted Business that, directly or indirectly, compete with those of the Company; or (B) that may require or involve disclosure of trade secrets, proprietary or confidential information; and
Restricted Business means any business enterprise that operates in one or more of the same markets as the Company including, but not limited to, the following companies: Alliant Techsystems Inc., BAE Systems Inc., The Boeing Company, EADS, Exelis Inc., General Dynamics Company, the Harris Company, Honeywell International Inc., L-3 Communications Company, Lockheed Martin Corporation, MBDA Incorporated, Northrop Grumman Company, Rockwell Collins,  Inc., SAIC, Thales, United Technologies Company.

By accepting the Award, you agree as follows:

1.Consideration and Acknowledgement. You acknowledge and agree that the benefits and compensation opportunities being made available to you under the Award Agreement are in addition to the benefits and compensation opportunities that otherwise are or would be available to you in connection with your employment by the Company or an Affiliate and that the continued vesting of the Award under Sections 4 and 5 of the Award Agreement is expressly made contingent upon your agreements with the Company set forth in these Restrictions. You acknowledge that the  scope and duration of the Restrictions are necessary to be effective and are fair and reasonable in light of the value of the benefits and compensation opportunities being made available to you under the Award Agreement. You further acknowledge and agree that as a result of the positions you hold with the Company and the access to and extensive knowledge of the Company's confidential or proprietary information, employees, suppliers and customers, the Restrictions are reasonably required for the protection of the Company's legitimate business interests.
		
	2.
	Restrictions.

(a)Covenant   Not   To   Compete  - Without  the  prior  written  consent  of  an  Authorized   Company Representative, you agree that during any Restriction Period following cessation of employment  you will not engage in any Restricted Activity for any: (i) Restricted Business; (ii) entity directly or indirectly  controlling, controlled by, or under common control with a Restricted Business; and (iii) successor to all or part of the business of any Restricted   Business as a result of a merger, reorganization, consolidation,  spin-off, split-up, acquisition, divestiture, or similar transaction.
(b)Non-Solicit - Without the prior written consent of an Authorized Company Representative, you agree that during any Restriction Period following cessation of employment you will not (i) interfere with any contractual relationship between the Company or an Affiliate and any customer of, supplier or distributor to, or manufacturer for the Company or an Affiliate to the detriment of the Company or an Affiliate or (ii) induce
or attempt to induce any person who is an employee of the Company or an Affiliate to perform work or services for any entity other than the Company or an Affiliate.
(c)Protection of Confidential and Proprietary Information - You agree to keep all confidential and 

proprietary information of the Company and its Affiliates, including joint venture partners, strictly confidential except to the extent disclosure is required by law or court order, and except to the extent that such confidential and proprietary information has become public through no fault of your own.
(d)Cooperation  in  Litigation  and  Investigations  - Following the date on which you cease to be  an employee of the Company or an Affiliate, you agree, to the extent reasonably requested, to cooperate with the Company in  any  pending  or  future  litigation  (including  alternative  dispute  resolution  proceedings)   or investigations in which the Company or Affiliates is a party or is required or requested to provide  testimony and regarding which, as a result of your employment with the Company or an Affiliate, you reasonably could be expected to have knowledge or information relevant to the litigation or investigation. Notwithstanding any other provision of these Restrictions, nothing in these Restrictions shall affect your  obligation to cooperate with any governmental inquiry or investigation or to give truthful testimony in court.

3.Annual  Validation  of  Compliance. You acknowledge and agree that you shall confirm in writing to  the Company, prior to each annual vesting date provided in Section 1 of the Award Agreement, your compliance with the restrictions set forth in Section 2 hereof. Failure to provide such annual written  confirmation may result in the forfeiture of any unvested Units.

		
	4.
	Result of Breach of Section 2 or Section 3. In the event that you breach any of the covenants or agreements in Section 2 or Section 3 hereof, to the extent your Units have not fully vested, all of your remaining rights, title or interest in the Award and any dividend equivalents with respect thereto, shall cease.

5.Invalidity; Unenforceability. It is the desire and intent of the parties that the provisions of these Restrictions shall be enforced to the fullest extent permissible. Accordingly, if any particular provision of these Restrictions is adjudicated to be invalid or unenforceable, the Award Agreement shall be deemed amended to delete the portion adjudicated to be invalid or unenforceable, such deletion to apply only with respect to the operation of this provision in the particular jurisdiction in which such adjudication is made.
These Restrictions are effective as of the acceptance by you of the Award of Units under this Award Agreement and is not contingent on the vesting of your Units.

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