Document:

FORM OF RAYTHEON COMPANY NONQUALIFIED STOCK OPTION AGREEMENT

 Exhibit 10.5 
  
 RESTRICTED STOCK AWARD AGREEMENT 
  
 This Restricted Stock Award Agreement, dated as of
[                    ] between Raytheon Company, a Delaware corporation (the “Company”), and
[                    ], an employee of the Company or one of its subsidiaries (the “Holder”). 
  
 1. The Company hereby awards to the Holder
[            ] shares of common stock of the Company, par value $.01 per share (the “Shares”), subject to the terms and conditions of the 2001 Stock Plan (the “Plan”)
and the provisions of this Agreement, including the vesting provisions set forth below: 
  

			
	 Vesting Date

	 	 Number of Shares

	 	 	 

  
 2. The Shares shall be
registered in the name of the Holder and retained in the custody of the Company until such time as the Shares (or other evidence of ownership of the Shares) are delivered to the Holder or forfeited to the Company in accordance with the terms hereof
(the “Restriction Period”). During the Restriction Period, the Holder will be entitled to vote the Shares and to receive dividends paid on the Shares. 
  

3. If the Holder is continuously employed by the Company or one of its Affiliates from the date of award of the Shares through the dates listed above,
the Company shall, on or about such date(s), deliver to the Holder evidence of ownership in book entry form of the number of Shares set forth opposite such date. 
  
 4. Restrictions on the Shares shall terminate as follows: 
  
 (a) upon the Holder’s death; 
  

(b) in accordance with the vesting schedule set forth above in the event of (i) a Medical Leave of Absence of at least one year or (ii) total
disability as evidenced by commencement and continuation for more than one year of benefits under the Company’s Long Term Disability Plan (or but for the fact that the Holder is not a member, qualification for benefits under the Long Term
Disability Plan); or 
  
 (c) upon a Change in Corporate Control.

  
 5. The awarding of the Shares shall not be deemed to create a
contract of employment between the Holder and the Company and shall not in any way prohibit or restrict the right of the Company to terminate the Holder’s employment at any time, for any reason. The awarding of the Shares does not guarantee the
right or expectation of the receipt of future Awards under the Plan or any future plan adopted by the Company. 
  
 6. If during the Restriction Period the Holder ceases to be an employee of the Company or one of its subsidiaries for any reason other than as specified
in Paragraph 4, then the Holder shall cease to be entitled to delivery of any of the Shares as to which the applicable restrictions have not theretofore lapsed, and all rights of the Holder in and to such shares, including any prorated portion of
the shares with respect to a partial year of employment, shall be forfeited immediately after the Holder ceases to be an employee of the Company or any subsidiary. 
  
 7. Until the lapse of the restrictions applicable to any Shares held in custody for the Holder pursuant to this Agreement,
such shares may not be sold, transferred, pledged, exchanged, hypothecated or disposed of by the Holder (except that delivery of Shares may be deferred as set forth in paragraph 9 below) and shall not be subject to execution, attachment or similar
process. 

 8. In addition to amounts in respect of taxes which the Company shall be required by law to deduct or
withhold from any dividend payments on the Shares, the Company may withhold from any Shares deliverable to the Holder hereunder a number of shares whose market value is sufficient in amount for the Company to satisfy any applicable federal, state or
local tax withholding requirement. The Holder shall not be entitled to any Shares or dividends on any Shares until all such tax obligations have been satisfied in full. 
  
 9. Notwithstanding any other provision in the Plan to the contrary, the Committee may, subject to certain terms and
conditions, permit the Holder to: (i) defer receipt of the delivery of Shares; or (ii) convert or exchange an award of Shares hereunder for another Award under the Plan or under any other plan or arrangement. 
  
 10. 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. 
  
 11. Notices required or permitted hereunder shall be in writing and shall be delivered personally or by mail, postage prepaid, addressed to the Office of
the General Counsel of the Corporation, 870 Winter Street, Waltham, Massachusetts 02451, and to the Holder at his or her address as shown on the Company’s payroll records, or to such other address as the Holder by notice to the Company may
designate in writing from time to time. 
  

	
	RAYTHEON COMPANY
	
	 
	
	 William H. Swanson

	 Chairman and Chief Executive Officer

  

	
	ACCEPTED:FORM OF PERFORMANCE SHARE AWARD AGREEMENT

 Exhibit 10.6 
  
 [GRAPHIC APPEARS HERE] 
  
 Raytheon 2001 Stock Plan 
 200[    ] Performance Share Award 
  
 Raytheon Company hereby grants to you, the recipient identified below, an award of stock units with respect to its common stock, par value $0.01 per share (the “Stock”), pursuant to the Raytheon 2001 Stock Plan (as amended
from time to time, the “Plan”) on the following terms and conditions: 
  

	1.	Details of Award 

  

			
	 Recipient
	 	 
	 Total Target Number of Shares of Stock
	 	 
	 Performance Cycle
	 	 Calendar years 200[    ] through 200[    ]

  

	2.	Conditions to Award 

  
 Pursuant to this Award, you will entitled to payment of up to one-half of the total target number of shares set out above based on Raytheon’s
“free cash flow” per share over the Performance Cycle, and up to one-half of the total target number of shares set out above based on the total return to Raytheon’s shareholders (compounded annually), relative to that of its
“peers,” over the Performance Cycle. The precise extent to which any such shares will have been earned will be determined by the Management Development and Compensation Committee of Raytheon’s Board of Directors (the
“Committee”) as soon as possible following the close of the Performance Cycle from the following tables: 
  

			
	 Cumulative 3-Year Free Cash
 Flow per share

	 	 Target Share Award Multiplier

	 $
	 	 
	 $
	 	 
	 $
	 	 
	 $
	 	 
	 $
	 	 
	 $
	 	 
	 $
	 	 
	 $
	 	 

  

					
	 Total Return to Shareholders

	 Percentile

	 	 Rank vs. Peers

	 	 Target Share Award Multiplier

	 100th
	 	1	 	1.000
	 90th
	 	2	 	1.000
	 80th
	 	3	 	0.875
	 70th
	 	4	 	0.750
	 60th
	 	5	 	0.625
	 50th
	 	6	 	0.500
	 40th
	 	7	 	0.375
	 30th
	 	8	 	0.250
	 <30th
	 	9, 10 or 11	 	No Award

  
 “Internal Free
Cash Flow:” Raytheon’s cash from operations per share, after capital expenditures and interest payments, all as determined in accordance with generally accepted accounting principles and rounded to the nearest cent per
share. 
  
 “Peers:” Boeing, General Dynamics, Goodrich,
Honeywell, L-3 Communications, Lockheed Martin, Northrop Grumman, Rockwell Collins, Textron, and United Technologies. In the event of any mergers or other corporate events affecting the foregoing companies during the Performance Cycle, the Committee
may make such adjustments to the peer group of companies, the total return calculations of the affected companies and the metrics set out above as it may determine in its sole discretion would most nearly carry out the original purposes and intent
of this Award. 

	3.	Effect of Termination of Employment, Etc. 

  
 You must remain an employee until the end of the Performance Cycle in order to be entitled to any payment pursuant to this Award, except as provided in Section 4 and
except as follows. If your employment with Raytheon ends during the Performance Cycle on account of your Retirement, as that term is defined in the Plan, or because you become disabled or die, after the end of the Performance Cycle, you (or in the
event of your death, your estate) will be entitled to a pro rata portion of the number of shares of Stock you would have received, if any, had you remained employed until the end of the Performance Cycle. The pro rata portion will be based on the
number of full months in the Performance Cycle during which you were employed as compared to the total number of months in the Cycle. 
  

	4.	Effect of Change of Corporate Control 

  
 If a Change of Corporate Control, as defined in the Plan, should occur during the Performance Cycle, the Award will terminate. However, at or immediately following the
Change of Corporate Control, you will be entitled to receive a pro rata portion of the total target number of shares covered by this Award, without regard to the extent to which the performance conditions of Section 2 have been satisfied. The pro
rata portion will be based on the number of full months in the Performance Cycle preceding the Change of Corporate Control as compared to the total number of months in the Cycle. 
  

	5.	Payment 

  

	 	A.	Timing. Promptly following determination of the number of shares of Stock you have earned under this Award, such number, if any, will be paid to you together with a dividend
equivalent amount of shares calculated in accordance with the following paragraph. However, you will not be entitled to any payment with respect to shares of Stock covered by this Award until you have made satisfactory arrangements with Raytheon to
satisfy any tax or other withholding obligations which might arise in connection with payment and all payments will be net of any such withholding. 

  

	 	B.	Dividend Equivalents. The dividend equivalent amount will be a number of shares calculated assuming that the dividends, if any, paid by Raytheon on the shares of Stock
which you ultimately become entitled to under this Award (and on any prior dividend equivalent amount attributable to such shares), had been reinvested in additional shares of Stock as of the respective payment dates of each dividend. You will not
be entitled to any dividend equivalent amount on shares of Stock covered by this Award which are not ultimately earned. 

  

	 	C.	Form of Payment. As provided in the Plan, at the election of the Committee earned shares and any dividend equivalent amount will be paid in the form of shares
of Stock. 

  

	6.	Other Provisions 

  

	 	A.	Other Conditions of Plan Apply. This Award is subject to all of the remaining terms and conditions of the Plan, including but not limited
to the provisions relieving Raytheon of any obligation to issue shares of Stock until all applicable securities laws have been complied with and providing that the grant of awards under the Plan, including this Award, will not interfere with or
limit in any way Raytheon’s right to terminate your employment at any time. The Plan is administered and interpreted by the Committee, whose determinations are final and binding on all persons concerned. 

  

	 	B.	No Guaranty of Future Awards. This Award in no way guarantees you the right to or expectation that you may receive similar awards with
respect to any other similar performance cycle or period which the Committee may, in its discretion, establish and as to which the Committee may elect grant awards under the Plan. 

  

	 	C.	No Rights as Stockholder. You will not be considered a shareholder of Raytheon with respect to the shares of Stock covered by this Award or
any dividend equivalent amount of shares unless and until shares of Stock are actually issued and certificates therefor delivered to you. 

  

	 	D.	Governing Law. This Award shall be governed by, construed and administered in accordance with applicable federal law; provided, however, that to the
extent not in conflict with federal law, this Award shall be governed by, construed and administered in accordance with the laws of the State of Delaware, other than its laws respecting choice of law. 

  

	 	E.	Counterparts. This Award may be executed in one or more counterparts all of which together shall constitute but one instrument. 

  

					
	 RAYTHEON COMPANY
	 	 
	 By:
	 	  

	 	  

	 Title:
	 	 Chairman and CEO
	 	 Signature of Recipient

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