Document:

ex10-35.htm

    Exhibit
10.35

    Summary of Compensation for
Non-Employee Directors

    Effective January 1,
2008

    

    
      	
              Annual
      Board Retainer

            	
              $
      50,000 

            
	
              Board
      Meeting Fee

            	
              $
      1,500 per meeting attended 

            
	
              Committee
      Chair Annual Retainer

            	 
	
              Audit/Compensation

            	
              $
      15,000

            
	
              Committee
      Chair Annual Retainer

            	 
	
              Other
      Committees

            	
              $
      5,000

            
	
              Committee
      Meeting Fee

            	
              $
      1,500 per meeting attended 

            
	
              Annual
      Equity Grant (1)

            	
              $
      125,000

            

    

     

     

    (1)  Granted in the form of Restricted Stock Units effective January
24,2008.  Each director received 3,750 Restricted Stock Units which will
vest in full on December 31, 2008.ex10-36.htm

    Exhibit
10.36

    

    Summary of Compensation for
Executive Officers

    

    The
executive officers of Frontier Oil Corporation (“Frontier”) are “at will”
employees, and none of them has an employment agreement. The unwritten
arrangements under which Frontier’s executive officers are compensated
include:

    

    
      	·  	
              a
      salary, reviewed annually by the Compensation Committee of the Board of
      Directors of Frontier;

            

    

    

    
      	·  	
              eligibility
      for an annual cash bonus, as determined by the Compensation
      Committee;

            

    

    

    
      	·  	
              eligibility
      for awards under Frontier’s Omnibus Incentive Compensation Plan, as
      determined by the Compensation
Committee;

            

    

    

    
      	·  	
              health,
      life, disability, death and other insurance and/or
    benefits;

            

    

    

    
      	·  	
              defined
      contribution pension and savings plan;
and

            

    

    

    
      	·  	
              vacation,
      paid sick leave and all other employee
benefits.

            

    

    

    In
addition, each of the executive officers of Frontier have entered into an
Executive Change in Control Severance Agreement and an Executive Severance
Agreement. Messrs. Gibbs, Eisman and Jennings may also participate in an
Executive Retiree Medical Benefit Plan.

     

     

    The table
below sets forth the base salaries, effective as of January 1, 2008, for the
executive officers of Frontier who held office as of January 1, 2008, as well as
their incentive target for 2008 (as a percentage of base salary).

     

    

      
        	
                Executive
      Officer

              	
                2008 Annual Base
      Salary

              	
                Incentive Target for 2008
      (Percentage of Base Salary)

              
	
                James
      R. Gibbs

                Chairman
      of the Board, Chief Executive Officer and President

              	
                $950,000
      

              	
                100%

              
	
                Michael
      C. Jennings

                Executive
      Vice President-Chief Financial Officer

              	
                $450,000
      

              	
                70%

              
	
                W.
      Paul Eisman

                Executive
      Vice President-Refining & Marketing

              	
                $500,000
      

              	
                70%

              
	
                Jon
      D. Galvin

                Vice
      President

              	
                $295,000
      

              	
                50%

              
	
                Nancy
      J. Zupan

                Vice
      President-Controller

              	
                $295,000
      

              	
                50%

              
	
                J.
      Currie Bechtol

                Vice
      President-General Counsel & Secretary

              	
                $330,000
      

              	
                50%

              
	
                Gerald
      B. Faudel

                Vice
      President-Corporate Relations and Environmental Affairs

              	
                $230,000
      

              	
                40%

              
	
                Doug
      S. Aron

                Vice
      President-Corporate Finance

              	
                $205,000
      

              	
                40%exhibittenone.htm

    
      	
              Exhibit
      10.1

            

    

    

    AMENDED
AND RESTATED

    EMPLOYMENT
AGREEMENT

    

    THIS EMPLOYMENT AGREEMENT, was
entered into as of the 23rd day of July, 1998 by and between Textron Inc. (the
"Company"), a Delaware corporation having its principal office at 40 Westminster
Street, Providence, Rhode Island 02903 and Lewis B. Campbell (the
"Executive").  The Agreement was amended on May 6, 2005, and on May 4,
2006.  The Agreement was amended and restated as of February 26, 2008,
in order to comply with the requirements of Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”), and to make certain other
changes.

    

    W I T N E
S S E T H:

    

    WHEREAS, the Executive is presently
employed by the Company;

    

    WHEREAS, the Company desires to
continue to employ the Executive and the Executive is willing to continue to be
employed by the Company; and

    

    WHEREAS, the Company and the
Executive desire to set forth the terms and conditions of such continued
employment.

    

    NOW THEREFORE, in consideration of
the foregoing and of the mutual covenants and agreements of the parties set
forth in this Agreement, and of other good and valuable consideration, the
adequacy and receipt of which is acknowledged, the parties hereto agree as
follows:

    

    1.              Term
of Employment

    

    The
Company hereby agrees to continue to employ the Executive and the Executive
hereby accepts continued employment, in accordance with the terms and conditions
set forth herein, for a term (the "Employment Term") commencing on July 23, 1998
(the "Effective Date") and terminating, unless otherwise terminated earlier in
accordance with Section 5 hereof, on the third anniversary of the Effective
Date, provided that the Employment Term shall be automatically extended, subject
to earlier termination as provided in Section 5 hereof, for successive
additional one (1) year periods (the "Additional Terms"), unless, at least
ninety (90) days prior to the end of the then Additional Term, the Company or
the Executive has notified the other in writing that the Employment Term shall
terminate at the end of the then current term.

    

    2.              Position
and Responsibilities

    

    During
the Employment Term, the Executive shall serve as the Chief Executive Officer of
the Company or in such higher capacity as agreed by the Company and the
Executive.  The Executive shall report exclusively to the Board of
Directors of the Company (the "Board").  The Executive shall, to the
extent appointed or elected, serve on the Board as a director and as a member of
any committee of the Board, in each case, without additional
compensation.  The Executive shall, to the extent appointed or
elected, serve as a director or as a member of any committee of the board (or
the equivalent bodies in a non-corporate subsidiary or affiliate) of any of the
Company's subsidiaries or affiliates and as an officer or employee (in a
capacity commensurate with his position with the Company) of any such
subsidiaries or affiliates, in all cases, without additional compensation or
benefits and any compensation paid to the Executive, or benefits provided to the
Executive, in such capacities shall be a credit with regard to the amounts due
hereunder from the Company.  The Executive shall have duties,
authorities and responsibilities generally commensurate with the duties,
authorities and responsibilities of persons in similar capacities in similarly
sized companies subject to the By-laws of the Company.  The Executive
shall devote substantially all of his business time, attention and energies to
the performance of his duties hereunder, provided the foregoing will not prevent
the Executive from participating in charitable, community or industry affairs,
from managing his and his family's personal passive investments, and (with the
consent of the Organization and Compensation Committee (or its successor) of the
Board (the "O&C Committee"), which consent will not be unreasonably
withheld, conditioned or delayed) serving on the board of directors of other
companies, provided that these activities do not materially interfere with the
performance of his duties hereunder or create a potential business conflict or
the appearance thereof.  The Company has consented to the Executive's
services on the boards of directors, if any, on which the Executive currently
serves, which boards the Executive has disclosed in writing to the O&C
Committee.  The Executive may retain any compensation or benefits
received as a result of consented to service as a director of entities not
related to the Company.

    

    3.           Compensation
and Benefits

    

    During the Employment Term, the Company
shall pay and provide the Executive the following:

    

    3.1  Base
Salary.  The Company shall pay the Executive a base salary (the "Base
Salary") in an amount which shall be established from time to time by the
O&C Committee (or as otherwise designated by the Board), provided, however,
that such base salary rate shall not be less than his current rate of base
salary.  Base Salary shall be paid to the Executive in accordance with
the Company's normal payroll practices for executives.  Base Salary
shall be reviewed at least annually to ascertain whether, in the judgment of the
reviewing committee, such Base Salary should be increased.  If so
increased, Base Salary shall not be thereafter decreased and shall thereafter,
as increased, be the Base Salary hereunder.

    

    3.2  Annual
Bonus.  The Company shall provide the Executive with the opportunity
to earn an annual cash bonus under the Company's current annual incentive
compensation plan for executives or a replacement plan therefor at a level
commensurate with his position, provided that the minimum annual target award
payable upon the achievement of reasonably attainable objective performance
goals shall be at least seventy percent (70%) of Base Salary.

    

    3.3  Long-Term
Incentives.  The Company shall provide the Executive the opportunity
to earn long-term incentive awards under the current equity and cash based plans
and programs or replacements therefor at a level commensurate with the current
aggregate opportunity being provided to the Executive.

    

    3.4  Employee Benefits. The
Executive shall, to the extent eligible, be entitled to participate at a level
commensurate with his position in all employee benefit welfare and retirement
plans and programs, as well as equity plans, generally provided by the Company
to its senior executives in accordance with the terms thereof as in effect from
time to time. Such plans and programs currently include, without limitation, the
Amended and Restated Supplemental Retirement Plan for Textron Inc. Key
Executives (the "SERP"), the 2007 Long-Term Incentive Plan, the Key Executive
Program (including the Deferred Income Plan, the Spillover Pension Plan, the
Spillover Savings Plan, and the Survivor Benefit Plan), group term life
insurance plan, comprehensive health, major medical, vision and dental insurance
plans and short-term and long-term disability plans.

    

    For
purposes of determining the Executive's benefit under the SERP, the definition
of "Compensation" under the SERP shall be revised as follows: (i) performance
share units granted to the Executive after January 1, 2005 shall not be included
in determining "Compensation"; and (ii) the amount of performance share units
includible in "Compensation" attributable to performance share units accrued for
the 2003-2005 and 2004-2006 performance cycles shall not, on average, exceed the
amount that would be included if each cycle's payment was based on a share price
appreciation of 10% since the closing share price on December 31, 2004 of $73.80
and financial and discretionary performance components combined to yield an
earned performance share unit payout of 80%.

    

    In
addition, in lieu of the schedule provided in Section 2.03 of the SERP, the
Executive's benefits under the SERP shall be based on the Executive's age in
accordance with the following schedule:

    

    
      	
              Age at Retirement

            	
              Percent of Benefit

            
	
              62
      or above

            	
              100%

            
	
              61

            	
              80%

            
	
              60

            	
              60%

            
	
              59

            	
              40%

            

    

    

    3.5  Vacation.  The
Executive shall be entitled to paid vacation in accordance with the standard
written policies of the Company with regard to vacations of executives, but in
no event less than four (4) weeks per calendar year.

    

    3.6  Perquisites.  The
Executive shall not be required to pay the cost of personal travel on Company
aircraft by the Executive and members of the Executive’s immediate family
(although the cost shall be imputed as income to the Executive to the extent
required by applicable tax laws).  The Executive shall pay the cost
(as reasonably determined by the Company) of any other person who travels with
the Executive for non-business reasons.  To the extent legally
permissible, the Company shall not treat perquisites provided to the Executive
as income to the Executive.

    

    3.7  Right to Change
Plans.  The Company shall not be obligated by reason of this Section 3
to institute, maintain, or refrain from changing, amending, or discontinuing any
benefit plan, program, or perquisite, so long as such changes are similarly
applicable to executive employees generally.

    

    3.8  Existing
Awards.  The parties agree that the dividend-payment provision of the
restricted stock awards granted on June 1, 1999, and January 1, 2001, shall be
amended as provided in Exhibit B to ensure that the awards comply with Section
409A of the Code.

    

    3.9     Performance
Bonus.  The Company shall pay the Executive a lump sum cash payment
equal to $2,500,000 (the "Performance Bonus") after satisfaction of the
following: (i) the Executive's attainment of age sixty five (65) while employed
by the Company or his earlier termination as a result of a termination by the
Company without Cause or by the Executive for Good Reason (a "Protected
Termination"); (ii) earnings per share growth of the Company at a cumulative
annual average of at least 10% over the three (3) year period commencing January
1, 2009 and ending December 31, 2011, as reported in the Company's audited
financial statements (or, in the case of a Protected Termination, through the
date of termination if after January 1, 2009, and without any requirement (but
subject to pro-ration in accordance with the next paragraph as if the
Executive's date of termination was his date of death) if before January 1,
2009); and (iii) if the Executive's employment terminated as a result of the
Executive's voluntary retirement (other than for Good Reason) at or after age
sixty five (65) and before January 1, 2012, the prior designation of a successor
Chief Executive Officer.  The Performance Bonus shall be paid ten (10)
days after the conditions in the preceding sentence are satisfied (or, if later,
ten (10) days after the earlier of (A) the end of the six-month period following
the Executive’s Protected Termination and (B) the date of the Executive’s death
following his Protected Termination).

    

    If the
Executive's employment is terminated before the Executive’s sixty-fifth (65th)
birthday as a result of his death or Disability, the Company shall pay the
Executive a lump sum cash payment equal to the Performance Bonus multiplied by a
fraction, the numerator of which is the number of days the Executive was
employed by the Company since May 1, 2005, and the denominator of which is the
number of days between May 1, 2005 and the Executive's sixty-fifth (65th)
birthday.  If the Executive’s employment is terminated for death, the
lump-sum payment shall be made ten (10) days after the Executive’s
death.  If the Executive’s employment is terminated for Disability,
the lump-sum payment shall be made ten (10) days after the earlier of (A) the
end of the six-month period  following the Executive’s termination for
Disability and (B) the date of the Executive’s death following his termination
for Disability.

    

    The
Performance Bonus shall not be considered in determining any benefits payable to
the Executive under the SERP or any other retirement plan maintained by the
Company.

    

    4.   Expenses

    

    Upon submission of appropriate
documentation, in accordance with its policies in effect from time to time, the
Company shall pay, or reimburse, the Executive for all ordinary and necessary
expenses, in a reasonable amount, which the Executive incurs during the
Employment Term in performing his duties under this Agreement including, but not
limited to, travel, entertainment, and professional dues and
subscriptions.   To the extent that any reimbursement under this
paragraph would be includable in the Executive’s gross income for federal income
tax purposes, the Executive shall submit the necessary documentation and shall
receive the reimbursement no later than March 15 following the calendar year in
which the expense is incurred.

    

    5.   Termination
of Employment

    

    The Executive's employment with the
Company (including but not limited to any subsidiary or affiliate or the
Company) and the Employment Term shall terminate upon the occurrence of the
first of the following events:

    

    
      	
               
      

            	
              (a)

            	
              Automatically
      on the date of the Executive's
death.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Except
      as provided in the following sentence, upon thirty (30) days written
      notice by the Company to the Executive of a termination due to Disability,
      provided such notice is delivered during the period of
      Disability.  If the Executive’s Disability results in a
      “separation from service” within the meaning of Section 409A of the Code
      (for example, because there is no reasonable expectation that the
      Executive will return to perform services for the Company, or because the
      permitted time period under Section 409A for a bona fide leave of absence
      expires), and if the Employment Term has not terminated pursuant to the
      preceding sentence on or before the date of the Executive’s separation
      from service, the Employment Term shall terminate automatically when the
      separation from service occurs, without any requirement for written notice
      by the Company.  The term "Disability" shall mean, for purposes
      of this Agreement, the inability of the Executive, due to any medically
      determinable physical or mental impairment, to engage in the performance
      of his material duties of employment with the Company as contemplated by
      Section 2 herein for a period of more than one hundred eighty (180)
      consecutive days or for a period that is reasonably expected to exist for
      a period of more than one hundred eighty (180) consecutive days, provided
      that interim returns to work of less than ten (10) consecutive business
      days in duration shall not be deemed to interfere with a determination of
      consecutive absent days if the reason for absence before and after the
      interim return are the same.  The existence or non-existence of
      a Disability shall be determined by a physician agreed upon in good faith
      by the Executive (or his representatives) and the Company.  It
      is expressly understood that the Disability of the Executive for a period
      of one hundred eighty (180) consecutive days or less shall not constitute
      a failure by him to perform his duties hereunder and shall not be deemed a
      breach or default; and, as long as the Executive’s employment has not been
      terminated pursuant to this paragraph, the Executive shall receive full
      compensation for any such period of Disability or for any other temporary
      illness or incapacity during the term of this
  Agreement.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Immediately
      upon written notice by the Company to the Executive of a termination due
      to his retirement at or after the Executive's attainment of age sixty-five
      (65).

            

    

    

    
      	
               
      

            	
              (d)

            	
              Immediately
      upon written notice by the Company to the Executive of a termination for
      Cause, provided such notice is given within ninety (90) days after the
      discovery by the Board of the Cause event and has been approved by at
      least two-thirds of the Board at a meeting at which the Executive and his
      counsel had the right to appear and address such meeting after receiving
      at least five (5) business days written notice of the meeting and
      reasonable detail of the facts and circumstances claimed to provide a
      basis for such termination.  The term "Cause" shall mean, for
      purposes of this Agreement: (i) an act or acts of willful
      misrepresentation, fraud or willful dishonesty (other than good faith
      expense account disputes) by the Executive which in any case is intended
      to result in his or another person or entity's substantial personal
      enrichment at the expense of the Company; (ii) any willful misconduct by
      the Executive with regard to the Company, its business, assets or
      employees that has, or was intended to have, a material adverse impact
      (economic or otherwise) on the Company; (iii) any material, willful and
      knowing violation by the Executive of (x) the Company's Business Conduct
      Guidelines, or (y) any of his fiduciary duties to the Company which in
      either case has, or was intended to have, a material adverse impact
      (economic or otherwise) on the Company; (iv) the willful or reckless
      behavior of the Executive with regard to a matter of a material nature
      which has a material adverse impact (economic or otherwise) on the
      Company; (v) the Executive's willful failure to attempt to perform his
      duties under Section 2 hereof or his willful failure to attempt to follow
      the legal written direction of the Board, which in either case is not
      remedied within ten (10) days after receipt by the Executive of a written
      notice from the Company specifying the details thereof; (vi) the
      Executive's conviction of, or pleading nolo contendere or guilty to, a
      felony (other than (x) a traffic infraction or (y) vicarious liability
      solely as a result of his position provided the Executive did not have
      actual knowledge of the actions or inactions creating the violation of the
      law or the Executive relied in good faith on the advice of counsel with
      regard to the legality of such action or inaction (or the advice of other
      specifically qualified professionals as to the appropriate or proper
      action or inaction to take with regard to matters which are not matters of
      legal interpretation)); or (vii) any other material breach by the
      Executive of this Agreement that is not cured by the Executive within
      twenty (20) days after receipt by the Executive of a written notice from
      the Company of such breach specifying the details thereof.  No
      action or inaction should be deemed willful if not demonstrably willful
      and if taken or not taken by the Executive in good faith as not being
      adverse to the best interests of the Company.  Reference in this
      paragraph (d) to the Company shall also include direct and indirect
      subsidiaries of the Company, and materiality and material adverse impact
      shall be measured based on the action or inaction and the impact upon, and
      not the size of, the Company taken as a whole, provided that after a
      Change in Control, the size of the Company, taken as a whole, shall be a
      relevant factor in determining materiality and material adverse
      impact.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Upon
      written notice by the Company to the Executive of an involuntary
      termination without Cause.  A notice by the Company of
      non-renewal of the Employment Term pursuant to Section 1 above shall be
      deemed an involuntary termination of the Executive by the Company without
      Cause as of the end of the Employment Term, but the Executive may
      terminate at any time after the receipt of such notice and shall be
      treated as if he was terminated without Cause as of his termination
      date.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Upon
      twenty (20) days written notice by the Executive to the Company of a
      termination for Good Reason (which notice sets forth in reasonable detail
      the facts and circumstances claimed to provide a basis for such
      termination) unless the Good Reason event is cured within such twenty (20)
      day period.  The term "Good Reason" shall mean, for purposes of
      this Agreement, without the Executive's express written consent, the
      occurrence of any one or more of the following: (i) the assignment to the
      Executive of duties materially inconsistent with the Executive's then
      authorities, duties, responsibilities, and status (including offices,
      titles, and reporting requirements), or any reduction in the Executive's
      then title, position, reporting lines or a material reduction (other than
      temporarily while Disabled or otherwise incapacitated) in his then status,
      authorities, duties, or responsibilities including but not limited to
      holding his then position in the Company while the Company is a subsidiary
      of another entity (holding stock in the Company entitled to at least fifty
      percent (50%) of the vote for the election of directors) and not holding
      the same or equivalent position in the ultimate parent entity or, if then
      a director of the Company, failure to be nominated or reelected as a
      director of the Company or removal as such; (ii) relocation of the
      Executive from the principal office of the Company (excluding reasonable
      travel on the Company's business to an extent substantially consistent
      with the Executive's business obligations) or relocation of the principal
      office of the Company to a location which is at least fifty (50) miles
      from the Company's current headquarters, provided, however, if the
      Executive at the time of the relocation is not located at the principal
      office, such relocation provision shall apply based on his then location;
      (iii) a reduction by the Company in the Executive's Base Salary; (iv) a
      reduction in the Executive's aggregate level of participation in any of
      the Company's short and/or long-term incentive compensation plans, or
      employee benefit or retirement plans, policies, practices, or arrangements
      in which the Executive participated as of the Effective Date, or, after a
      Change in Control, participated immediately prior to the Change in
      Control; (v) the failure of the Company to obtain and deliver to the
      Executive a satisfactory written agreement from any successor to the
      Company to assume and agree to perform this Agreement; or (vi) any other
      material breach by the Company of this
    Agreement.  

            

    

    

    
      	
               
      

            	
              (g)

            	
              Upon
      written notice by the Executive to the Company of the Executive's
      voluntary termination of employment without Good Reason (which the Company
      may, in its sole discretion, make effective earlier than the effective
      date specified in the Executive’s notice).  A notice by the
      Executive of non-renewal of the Employment Term pursuant to Section 1
      above shall be deemed a voluntary termination by the Executive without
      Good Reason as of the end of the Employment
  Term.

            

    

    

    To the extent that any payment would be
made or any benefit would be provided under this Agreement as a result of the
Executive’s termination of employment under paragraph (b), (c), (d), (e), (f),
or (g) of this Section 5, the payment or benefit shall be provided only if the
Executive has also incurred a “separation from service” within the meaning of
Section 409A of the Code; and any timing requirements associated with the
payment or benefit (such as, for example, a requirement that a payment be
delayed for six months following the Executive’s termination) shall be applied
in relation to the date on which the “separation from service” occurs for
purposes of Section 409A.  The preceding sentence shall apply solely
to determine the timing of payments under the Agreement in compliance with
Section 409A.  The Agreement is not intended, and shall not be
construed, to require that the Executive incur a “separation from service”
within the meaning of Section 409A before the Executive or the Company shall
have grounds to terminate the Executive’s employment under paragraph (b), (c),
(d), (e), (f), or (g) of this Section 5.

    

    6.  Consequences
of a Termination of Employment

     

    6.1           Termination
Due to Death or Retirement.

    

    
      	
               
      

            	
              (a)

            	
              If
      the Employment Term ends on account of the Executive's termination due to
      death pursuant to Section 5(a) above or retirement pursuant to Section
      5(c) above, the Executive (or the Executive's surviving spouse, or other
      beneficiary as so designated by the Executive during his lifetime, or to
      the Executive's estate, as appropriate) shall be entitled, in lieu of any
      other payments or benefits, to (i) payment promptly of any unpaid
      Base Salary, unpaid annual incentive compensation (for the preceding
      fiscal year) and any accrued vacation, (ii) reimbursement for any
      unreimbursed business expenses incurred prior to the date of termination,
      and (iii) any amounts, benefits or fringes due under any equity,
      benefit or fringe plan, grant or program in accordance with the terms of
      said plan, grant or program but without duplication (collectively, the
      "Accrued Obligations").   The Accrued Obligations described
      in clauses (i) and (ii) of the preceding sentence shall be paid on the
      first regular payroll date after the Executive’s termination (or, if
      earlier, 45 days after the Executive’s
  termination).

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      Executive shall be entitled to the Performance Bonus, subject to, and in
      accordance with, Section 3.9 of this
Agreement.

            

    

    

    6.2           Termination
Due to Disability.  If the Employment Term ends as a result of
Disability pursuant to Section 5(b) above, the Executive shall be entitled, in
lieu of any other payments or benefits, subject to Section 7(b) hereof, to any
Accrued Obligations and the following:

    

    
      	
               
      

            	
              (a)

            	
              The
      Executive shall be deemed to have satisfied the definition of "total
      disability" under the 1994 Long-Term Incentive Plan or the equivalent
      definition under any successor plan
thereto.

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      Executive shall be entitled to the Performance Bonus, subject to, and in
      accordance with, Section 3.9 of this
Agreement.

            

    

    

    6.3           Involuntary
Termination by the Company Without Cause or Termination by the Executive for
Good Reason.  If the Executive is involuntarily terminated by the
Company without Cause in accordance with Section 5(e) above or the Executive
terminates his employment for Good Reason in accordance with Section 5(f) above,
the Executive shall be entitled, in lieu of any other payments or benefits,
subject to Section 7(b) hereof, to any Accrued Obligations and the
following:

    

    
      	
               
      

            	
              (a)

            	
              Payment
      in a lump sum, on March 1 of the calendar year following the date of the
      Executive's termination, of an amount equal to the Executive's annual
      bonus for the calendar year of the Executive’s termination (to the extent
      that the applicable corporate performance goals are achieved) multiplied
      by a fraction, the numerator of which is the number of days during the
      fiscal year of the Executive's termination that the Executive was employed
      by the Company and the denominator is three hundred sixty-five
      (365).

            

    

    

    
      	
               
      

            	
              (b)

            	
              An
      amount equal to two (2) times the sum of:  (i) the Executive's
      Base Salary, and (ii) the greater of:  (x) the Termination Year
      Target Bonus, or (y) the average of the Executive's annual incentive
      compensation awards earned during the last three (3) fiscal years ending
      prior to the fiscal year of termination (whether or not deferred) (the sum
      of (i) and (ii) being hereinafter referred to as “Final Annual
      Compensation”).   An amount equal to one and one half (11⁄2)
      times the Final Annual Compensation shall be paid in a lump sum on the
      first regular payroll date after the end of the six-month period following
      the Executive’s termination.  An amount equal to the remaining
      one (1⁄2) times the Final Annual Compensation shall be calculated as equal
      monthly installments payable over a period of two (2) years; provided,
      however, that the monthly installments for the first six months following
      the Executive’s termination shall be paid in a lump sum, without interest,
      on the first regular payroll date after the end of the six-month period,
      and the remaining monthly installments shall commence on the first regular
      payroll date after the end of the sixth month following the Executive’s
      termination and shall be paid for the remainder of the two (2) year
      period.  For purposes of this Agreement, the Executive’s
      "Termination Year Target Bonus" shall mean the Executive’s target annual
      incentive compensation award established for the fiscal year during which
      the Executive's termination occurs.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Coverage
      under all applicable retiree health and other retiree welfare plans for
      the Executive and his dependents, on the same terms that apply to other
      salaried retirees of the Company and their
  dependents.

            

    

    

    
      	
               
      

            	
              (d)

            	
              To
      the extent eligible on the date of termination, continued participation,
      at no additional cost (before tax) to the Executive than the Executive
      would have as an employee, in  the Company’s Survivor Benefit
      Plan for Textron Key Executives, accidental death and dismemberment
      insurance coverage, and dependent life insurance coverage until two (2)
      years after the date of termination; provided, however, that in the event
      the Executive obtains other employment that offers substantially similar
      or improved benefits, as to any particular welfare plan, such continuation
      of coverage by the Company for such benefits under such plan shall
      immediately cease.  The Company shall also reimburse the
      Executive for the cost (before tax) of purchasing (under the Company’s
      group insurance policy, or under an individual policy if coverage under
      the Company’s policy is not available), for the continuation period
      described in the preceding sentence, the level of Company-paid term life
      insurance coverage and long-term disability insurance coverage that the
      Executive received on the date of termination.  The Company
      shall reimburse the cost of coverage for the first six months following
      the Executive’s termination in a lump sum, without interest, on the first
      regular payroll date after the end of the six-month period, and the
      Company shall reimburse the cost monthly thereafter for the remainder of
      the continuation period.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Two
      and one-half (21⁄2) additional years of service (including age as if such
      service was completed) and compensation credit (at the Executive's "Then
      Compensation Level") for benefit purposes under any defined benefit type
      retirement plan, including but not limited to the SERP and the Spillover
      Pension Plan if then in effect, and, if the Executive is not eligible to
      receive benefits under any such plan on the date of termination, two and
      one-half (21⁄2) additional years of age for determining eligibility to
      receive such benefits; provided that benefits under any such plan will not
      commence until the Executive actually attains the required distribution
      age (taking into account only the Executive’s actual service) under the
      plan or the Executive's spouse qualifies for death benefits under such
      plan, and will be paid in accordance with the terms of such plan; and
      further provided that, with regard to any plan qualified under Section
      401(a) of the Code, the additional amounts may be provided on a
      nonqualified plan basis. "Then Compensation Level" shall mean an annual
      rate of compensation equal to the sum of (i) Final Annual Compensation and
      (ii) the performance units and performance share units earned with respect
      to the measurement periods ending at or about the end of the fiscal year
      immediately preceding the year of termination (to the extent recognized in
      the definition of 'Compensation' under the applicable plan; in the case of
      the SERP as provided in Section 3.4 above such that no amounts deemed
      earned in respect of performance share units in 2007 (i.e. any grant after
      the 2004 grant) or later years shall be included in Compensation for
      purposes of the SERP); provided, however, that with respect to the year of
      termination, in lieu of utilization of the amount in clause (ii) above,
      the Executive will be deemed to have received in the year of termination
      the full amount of performance units and performance share units earned
      with respect to the measuring periods ending on or about the end of the
      fiscal year immediately preceding the year of termination (whether or not
      such amount is actually paid to the Executive prior to the date of
      termination); provided, further, that, other than as set forth in the
      immediately preceding proviso, the amounts described in clause (ii) above
      shall be included in "Compensation" under the plans referred to in this
      Section 6.3(e) in lieu of any amounts actually paid to the Executive in
      respect of performance units and performance share units in the year of
      termination and thereafter.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Payment
      in a lump sum, on the first regular payroll date after the end of the
      six-month period following the Executive’s termination, of two (2) times
      the amount of the maximum Company annual contribution or match to any
      defined contribution type plan in which the Executive
      participates.

            

    

    

    
      	
               
      

            	
              (g)

            	
              Immediate
      full vesting of any outstanding stock options that would vest within two
      (2) years after such termination of employment as if the Executive had
      continued employment for such two (2) year period.  The terms of
      the Executive's outstanding options are deemed to be modified to the
      extent required by this Section
6.3(g).

            

    

    

    
      	
               
      

            	
              (h)

            	
              Payment
      when it would otherwise be paid in accordance with the 1994 Long-Term
      Incentive Plan or any successor plan of any amount due with regard to
      performance share units outstanding on the date of termination multiplied
      by a fraction, the numerator of which is the number of days that the
      Executive was employed by the Company during the performance period and
      the denominator is the total number of days in the performance
      period.  For purposes of calculating the foregoing amounts, all
      discretionary performance targets relating to the Executive's individual
      performance will be deemed to be fully achieved and the actual level of
      achievement of all financial performance targets will be determined as if
      the Executive continued to be employed through the end of the applicable
      measuring period.

            

    

    

    
      	
               
      

            	
              (i)

            	
              Immediate
      full vesting of the Executive's accounts under the Deferred Income
      Plan.

            

    

    

    
      	
               
      

            	
              (j)

            	
              The
      Executive shall be entitled to the Performance Bonus, subject to, and in
      accordance with, Section 3.9 of this
Agreement.

            

    

    

    
      	
               
      

            	
              (k)

            	
              If
      the Executive dies after the Executive’s termination of employment and
      before the end of the six-month period following the Executive’s
      termination, any payment provided under this Section 6.3 that would have
      been made (in the case of a lump-sum payment) or that would have commenced
      (in the case of a periodic payment) on the first regular payroll date
      after the end of the six-month period shall instead be made or commence on
      the first regular payroll date following the Executive’s death, provided
      that the Executive’s beneficiary is otherwise entitled to receive the
      payment under this Section 6.3.  To the extent that any payment
      under this Section 6.3 is made “on the first regular payroll date”
      following a date or event, the regular payroll date shall be determined
      based on the Company’s payroll cycle applicable to the Executive at the
      time of his separation from service (within the meaning of Section 409A of
      the Code), without regard to any change in the payroll cycle that becomes
      effective after the Executive’s separation from
  service.

            

    

    

    6.4           Termination
by the Company for Cause or Termination by the Executive without Good
Reason.  If the Executive is terminated by the Company for Cause or
the Executive terminates his employment without Good Reason, the Executive shall
be entitled to receive all Accrued Obligations.

    

    6.5           Coordination
With Other Plans.  The rules set forth in this Section 6.5 shall apply
to all amounts provided under the Agreement.

    

    
      	
               
      

            	
              (a)

            	
              To
      the extent that the Executive’s Base Salary, annual incentive
      compensation, or other amounts payable under this Agreement are subject to
      a valid deferral election (or are deferred pursuant to a plan provision)
      that had become irrevocable at the time of the Executive’s termination of
      employment, the deferred amounts shall be paid in accordance with the
      terms of the deferred compensation arrangement.  Any amount
      payable under this Agreement that would be regarded as a substitute for an
      amount that was deferred as provided in the preceding sentence (for
      example, a payment made in lieu of deferred annual incentive compensation)
      also shall be paid in accordance with the terms of the deferred
      compensation arrangement.  This Section 6.5(a) is intended, and
      shall be applied, solely to prevent the Executive’s deferral election or
      an automatic deferral provision from being revocable to the extent that
      its revocation would violate Section 409A of the
  Code.

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      amounts and benefits provided under Sections 6 and 8 hereof are intended
      to be inclusive and not duplicative of the amounts and benefits due under
      the Company's employee benefit plans and programs, and this Agreement
      shall be applied in a manner consistent with that intent.  To
      the extent that a duplicative benefit is provided under this Agreement and
      under another employee benefit plan, policy, or program of the Company,
      the following rules shall apply:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Any
      benefit provided under a retirement plan that is tax-qualified under
      Section 401(a) of the Code shall be paid exclusively as provided under the
      tax-qualified retirement plan, and the duplicative benefit provided under
      this Agreement shall be reduced by the value of the tax-qualified
      retirement benefit.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Any
      benefit provided under a disability pay plan, death benefit plan, bona
      fide vacation pay plan, or other plan or policy that is excluded from the
      definition of “nonqualified deferred compensation” under Treasury
      Regulations § 1.409A-1(a)(5) shall be paid exclusively as provided
      under the plan or policy, and the duplicative benefit provided under this
      Agreement shall be reduced by the value of the benefit provided under the
      plan or policy.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              To
      the extent that a provision of this Agreement makes specific reference to
      another plan or program of the Company and states that the terms of the
      other plan or program shall govern with respect to the calculation,
      payment, or timing of payment of a particular benefit, that benefit shall
      be paid as provided in the other plan or program, as stated in this
      Agreement.

            

    

    

    
      	
               
      

            	
              (iv)

            	
              In
      all other circumstances in which any payment or benefit under this
      Agreement duplicates a payment or benefit provided under another employee
      benefit plan, policy, or program of the Company, or to the extent that the
      payment or benefit under this Agreement is or could be subject to offset
      by the benefit under another employee benefit plan, policy, or program of
      the Company, the duplicative benefit shall be paid exclusively as provided
      in this Agreement, and the duplicative benefit provided under the other
      employee benefit plan, policy, or program shall be reduced by the value of
      the benefit provided under this
Agreement.

            

    

    

    
      	
               
      

            	
              (v)

            	
              The
      benefit coordination provisions in this Section 6.5(b) are intended, and
      shall be applied, to ensure that the payments made to the Executive are
      exempt from, or comply with, Section 409A of the Code, and that the
      coordination of benefits between this Agreement and the other employee
      benefit plans, policies, or programs in which the Executive participates
      will not result in any acceleration or re-deferral of deferred
      compensation that would violate Section 409A of the
  Code.

            

    

    

    6.6           The
Executive’s right under this Section 6 to receive any payments in installments
shall be treated as a right to a series of separate payments for purposes of
Section 409A of the Code, as provided in Treas. Reg.
§ 1.409A-2(b)(2)(iii).

    

    7.           No
Mitigation/No Offset/Release

    

    
      	
               
      

            	
              (a)

            	
              In
      the event of any termination of employment hereunder, the Executive shall
      be under no obligation to seek other employment and there shall be no
      offset against any amounts due the Executive under this Agreement on
      account of any remuneration attributable to any subsequent employment that
      the Executive may obtain.  The amounts payable hereunder shall
      not be subject to setoff, counterclaim, recoupment, or
      defense.  The preceding sentence shall not limit the Company’s
      right to enforce the forfeiture provision in Section
    9.6(b).

            

    

    

    
      	
               
      

            	
              (b)

            	
              Any
      amounts payable and benefits or additional rights provided pursuant to
      Section 6.2 (other than Section 6.2(b)), Section 6.3 (other than Section
      6.3(j)) and Section 8.2 (other than Section 8.2(k)) beyond Accrued
      Obligations and amounts or rights due under law, and, in the case of
      Section 6.3 and Section 8.2, beyond the sum of any amounts due (without
      execution of a release) under the Company severance program then in
      effect, or, if greater, three (3) months Base Salary as severance, shall
      only be payable if the Executive delivers to the Company a release of all
      claims of the Executive (other than those specifically payable or
      providable hereunder on or upon the applicable type of termination and any
      rights to indemnification, contribution, exculpation, advances, or
      directors and officers liability insurance under the Company's
      organizational documents, under any plan or agreement, or at law) with
      regard to the Company, its subsidiaries and related entities and their
      respective past or present officers, directors and employees, in the form
      attached to this Agreement as Exhibit C, that has become irrevocable
      before the date on which such payment or benefit is due to be paid or
      provided.  To the extent that options and other equity awards
      are eligible for accelerated vesting pursuant to Section 6.3(g) or the
      last sentence of Section 8.2(i), the equity award shall not vest pursuant
      to Section 6.3(g) or Section 8.2(i) until the Executive’s release has
      become irrevocable.  The Company and the Executive shall execute
      the release of claims and shall deliver executed copies to one another
      within forty-five days following the Executive’s separation from
      service.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Upon
      any termination of employment, upon the request of the Company, the
      Executive shall deliver to the Company a resignation from all offices and
      directorships and fiduciary positions of the Executive in which the
      Executive is serving with, or at the request of, the Company or its
      subsidiaries, affiliates or benefit
plans.

            

    

    

    8.           Change
in Control

    

    8.1           Employment
Termination in Connection with a Change in Control.

    

    (a)           In
the event of a Qualifying Termination during the period commencing one hundred
eighty (180) days prior to the effective date of a Change in Control and
terminating on the second anniversary of the effective date of a Change in
Control (the "Change in Control Protection Period"), then in lieu of the
benefits provided to the Executive under Section 6.3 of this Agreement, the
Company shall pay the Executive the amounts and provide the benefits described
in Section 8.2, below.  For purposes of this Section 8, a Qualifying
Termination shall mean any termination of the Executive's employment (i) by the
Company without Cause, or (ii) by the Executive for Good Reason.

    

    (b)           If
the Change in Control is a “Section 409A Change in Control,” as defined in
Section 8.3, and if the Qualifying Termination occurs after the Section 409A
Change in Control, all applicable payments shall be made in a lump sum on the
first regular payroll date after the end of the six-month period following the
Qualifying Termination), except as otherwise provided in Section 8.2(a) through
(l), below.

    

    (c)           If
the Change in Control is not a Section 409A Change in Control, or if the
Qualifying Termination occurs before a Section 409A Change in Control, any
payment or benefit that would have been provided under Section 6.3 or under a
separate compensation plan in the absence of a Change in Control shall be paid
exclusively as provided in Section 6.3 or in the separate compensation plan,
without acceleration or other adjustment to reflect the Change in
Control.  Any incremental additional payment or benefit that is
provided under this Section 8 solely upon an Executive’s Qualifying Termination
during the Change in Control Protection Period shall be paid  in a
lump sum within 30 business days after the effective date of the Change in
Control (or, if later, on the first regular payroll date after the end of the
six-month period following the Qualifying Termination).

    

    8.2           Payments
Upon a Qualifying Termination.  Subject to the provisions of Section
8.1(b) and (c) regarding the time and manner of payment, the payments and
benefits payable upon a Qualifying Termination are as follows:

    

    
      	
               
      

            	
              (a)

            	
              Any
      Accrued Obligations.

            

    

    

    
      	
               
      

            	
              (b)

            	
              A
      lump-sum cash payment (subject to the distribution rules set forth later
      in this paragraph) equal to three (3) times the highest rate of the
      Executive's Base Salary rate in effect at any time up to and including the
      date of the Executive's termination.   If the Qualifying
      Termination occurs after a Section 409A Change in Control, the entire
      amount shall be paid in a lump sum, without interest, on the first regular
      payroll date after the end of the sixth month following the Executive’s
      termination.  If the Change in Control is not a Section 409A
      Change in Control, or if the Qualifying Termination precedes a Section
      409A Change in Control, an amount equal to 2 times the Executive’s Base
      Salary (reduced by any payments attributable to Base Salary made under
      Section 6.3(b) before the Change in Control) shall be paid as provided in
      Section 6.3(b), and any incremental additional amount payable under this
      Section 8.2(b) solely as a result of the Change in Control shall be paid
      in a lump sum, without interest, on the later of (i) on the first regular
      payroll date after the end of the sixth month following the Executive’s
      termination, or (ii) within 30 business days after the effective date of
      the Change in Control.

            

    

    

    
      	
               
      

            	
              (c)

            	
              A
      lump-sum cash payment equal to the Prorated Portion (as determined in the
      next sentence) of the greater of: (i) the Executive's Termination Year
      Target Bonus or (ii) the Executive's earned annual incentive award for the
      fiscal year prior to the fiscal year in which the earlier of the Change in
      Control or the Qualifying Termination occurs (whether or not
      deferred).  The "Prorated Portion" of the foregoing amount shall
      be determined by multiplying such amount by a fraction, the numerator of
      which is the number of days during the fiscal year of termination that the
      Executive is employed by the Company, and the denominator of which is
      three hundred sixty-five (365).

            

    

    

    
      	
               
      

            	
              (d)

            	
              A
      lump-sum cash payment (subject to the distribution rules set forth later
      in this paragraph) equal to three (3) times the greater of: (i) the
      Executive's average annual incentive compensation earned over the three
      (3) fiscal years ending prior to the earlier of the Change in Control or
      the Qualifying Termination (whether or not deferred); or (ii) the
      Executive's target incentive compensation established for the fiscal year
      in which the Executive's date of termination occurs.  If the
      Qualifying Termination occurs after a Section 409A Change in Control, the
      entire amount shall be paid in a lump sum, without interest, on the first
      regular payroll date after the end of the sixth month following the
      Executive’s termination.  If the Change in Control is not a
      Section 409A Change in Control, or if the Qualifying Termination precedes
      a Section 409A Change in Control, an amount equal to 2 times the bonus
      amount described in Section 6.3(b)(ii) (reduced by any installment
      payments attributable to the bonus amount made under Section 6.3(b) before
      the Change in Control) shall be paid as provided in Section 6.3(b), and
      any incremental additional amount payable under this Section 8.2(d) solely
      as a result of the Change in Control shall be paid in a lump sum, without
      interest, on the later of (i) on the first regular payroll date after the
      end of the sixth month following the Executive’s termination, or (ii)
      within 30 business days after the effective date of the Change in
      Control.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Coverage
      under all applicable retiree health and other retiree welfare plans for
      the Executive and the Executive's eligible dependents, on the same terms
      that apply to other salaried retirees of the Company and their
      dependents.

            

    

    

    
      	
               
      

            	
              (f)

            	
              To
      the extent eligible prior or after the Change in Control (or, if earlier
      the Qualifying Termination), continued participation (coordinated with (e)
      above to the extent duplicative), at no additional cost (before tax) to
      the Executive than the Executive would have as an employee, in the
      Company’s Survivor Benefit Plan for Textron Key Executives, accidental
      death and dismemberment insurance coverage, and dependent life insurance
      coverage  until three (3) years after the date of termination,
      provided, however, that in the event the Executive obtains other
      employment that offers substantially similar or improved benefits, as to
      any particular welfare plan, such continuation of coverage by the Company
      for such similar or improved benefit under such plan shall immediately
      cease.  The Company shall also reimburse the Executive for the
      cost (before tax) of purchasing (under the Company’s group insurance
      policy, or under an individual policy if coverage under the Company’s
      policy is not available), for the continuation period described in the
      preceding sentence, the level of Company-paid term life insurance coverage
      and long-term disability insurance coverage that the Executive received
      immediately before the Change in Control (or, if earlier, at the time of
      the Qualifying Termination).  The Company shall reimburse the
      cost of coverage for the first six months following the Executive’s
      termination in a lump sum, without interest, on the first regular payroll
      date after the end of the six-month period, and the Company shall
      reimburse the cost monthly thereafter for the remainder of the
      continuation period.

            

    

    

    
      	
               
      

            	
              (g)

            	
              A
      lump-sum cash payment (subject to the distribution rules set forth later
      in this paragraph) of the actuarial present value equivalent (as
      determined in accordance with the most favorable (to the Executive)
      overall actuarial assumptions and subsidies in any of the Company's
      tax-qualified or nonqualified type defined benefit pension plans in which
      the Executive then participates) of the accrued benefits accrued by the
      Executive as of the date of termination under the terms of any
      nonqualified defined benefit type retirement plan, including but not
      limited to, the SERP and the Spillover Pension Plan, and assuming the
      benefit was fully vested (and commenced immediately upon such termination)
      without regard to any minimum age or service requirements. For this
      purpose, such benefits shall be calculated under the assumption that the
      Executive's employment continued following the date of termination for
      three (3) full years (i.e., three (3) additional years of age (including,
      but not limited to, for purposes of determining the early retirement
      factor and the actuarial present value, but not the commencement date of
      benefits for calculation purposes (all of which shall be deemed to
      commence on the date of termination)), compensation (at the Executive's
      Then Compensation Level) and service credits shall be
      added).  If the Qualifying Termination occurs after a Section
      409A Change in Control, the present value of the amount that would have
      been payable under the nonqualified defined benefit type retirement plans
      if no Change in Control had occurred shall be paid in a lump sum, without
      interest, on the date when it would otherwise have been payable under the
      nonqualified plans if no Change in Control had
      occurred.   If the Change in Control is not a Section 409A
      Change in Control, or if the Qualifying Termination precedes a Section
      409A Change in Control, the amount that would have been payable under the
      nonqualified defined benefit type retirement plans if no Change in Control
      had occurred (reduced by any payments made under the plans before the
      Change in Control) shall be paid as provided under the terms of the
      applicable nonqualified plans.  In either case, any incremental
      additional amount payable under this Section 8.2(g) solely as a result of
      the Change in Control shall be paid in a lump sum, without interest, on
      the later of (i) on the first regular payroll date after the end of the
      sixth month following the Executive’s termination, or (ii) within 30
      business days after the effective date of the Change in
      Control.

            

    

    

    
      	
               
      

            	
              (h)

            	
              A
      lump-sum cash payment, on the later of (i) on the first regular payroll
      date after the end of the sixth month following the Executive’s Qualifying
      Termination, or (ii) within 30 business days after the effective date of
      the Change in Control, equal to three (3) times the amount of the maximum
      Company contribution or match to any defined contribution type plan in
      which the Executive participates.

            

    

    

    
      	
               
      

            	
              (i)

            	
              Full
      vesting and payment of any outstanding performance share units, based on
      actual performance for the portion of the performance cycle through the
      date of the Change in Control, and assuming performance at target levels
      for the portion of the performance cycle after the Change in
      Control.  Subject to Section 8.1(c), the payment described in
      the preceding sentence shall be made in a lump sum, without interest, on
      the later of (i) on the first regular payroll date after the end of the
      sixth month following the Executive’s Qualifying Termination, or (ii)
      within 30 business days after the effective date of the Change in
      Control.  For equity awards other than performance share units,
      immediate full vesting of any outstanding stock options and other equity
      awards (and lapse of any forfeiture
provisions).

            

    

    

    
      	
               
      

            	
              (j)

            	
              Outplacement
      services at a level commensurate with the Executive's position, including
      use of an executive office and secretary, for a period of one (1) year
      commencing on the date of termination but in no event extending beyond the
      date on which the Executive commences other full time
      employment.  The only taxable payments or in-kind benefits
      provided under this paragraph during the first six months following the
      Executive’s Qualifying Termination shall be (A) in-kind benefits that
      the Executive could otherwise deduct as business expenses under Sections
      162 or 167 of the Code (disregarding limitations based on adjusted gross
      income), and (B) reasonable outplacement expenses actually incurred
      by the Executive and directly related to the Qualifying
      Termination.  Any taxable outplacement expenses incurred during
      the first six months following the Executive’s termination that are
      otherwise payable under this paragraph, but whose payment during the
      initial six-month period would result in additional tax under Section 409A
      of the Code, shall be paid by the Executive during the initial six-month
      period; and the Company shall reimburse the Executive for the payments in
      a lump sum, without interest, on the first regular payroll date after the
      end of the sixth month following the Executive’s Qualifying
      Termination.

            

    

    

    
      	
               
      

            	
              (k)

            	
              The
      Executive shall be entitled to the Performance Bonus, subject to, and in
      accordance with, Section 3.9 of this
Agreement.

            

    

    

    
      	
               
      

            	
              (l)

            	
              If
      the Executive dies after the Executive’s termination of employment and
      before the end of the six-month period following the Executive’s
      termination, any payment provided under Section 8.1 or this Section 8.2
      that would have been made (in the case of a lump-sum payment) or that
      would have commenced (in the case of a periodic payment) on the first
      regular payroll date after the end of the six-month period shall instead
      be made or commence on the first regular payroll date following the
      Executive’s death, provided that the Executive’s beneficiary is otherwise
      entitled to receive the payment under Section 8.1 or this Section
      8.2.  To the extent that any payment under Section 8.1 or this
      Section 8.2 is made “on the first regular payroll date” following a date
      or event, the regular payroll date shall be determined based on the
      Company’s payroll cycle applicable to the Executive at the time of his
      separation from service (within the meaning of Section 409A of the Code),
      without regard to any change in the payroll cycle that becomes effective
      after the Executive’s separation from
service.

            

    

    

    8.3  Definition
of "Change in Control."  A Change in Control of the Company shall be
deemed to have occurred as of the first day any one or more of the following
conditions shall have been satisfied:

    

    
      	
               
      

            	
              (a)

            	
              Any
      "person" or "group" (within the meaning of Section 13(d) and 14(d)(2) of
      the Securities Exchange Act of 1934, as amended (the "Exchange Act"))
      other than the Company, any trustee or other fiduciary holding Company
      common stock under an employee benefit plan of the Company or a related
      company, or any corporation which is owned, directly or indirectly, by the
      stockholders of the Company in substantially the same proportions as their
      ownership of the Company's common stock, is or becomes the beneficial
      owner (as defined in Rule 13d-3 under the Exchange Act) of more than
      thirty percent (30%) of the then outstanding voting
  stock;

            

    

    

    
      	
               
      

            	
              (b)

            	
              During
      any period of two (2) consecutive years, individuals who at the beginning
      of such period constitute the Board and any new director whose election by
      the Board or nomination for election by the Company's stockholders was
      approved by a vote of at least two-thirds of the directors then still in
      office who either were directors at the beginning of the two year period
      or whose election or nomination for election was previously so approved,
      cease for any reason to constitute at least a majority of the
      Board;

            

    

    

    
      	
               
      

            	
              (c)

            	
              The
      consummation of a merger or consolidation of the Company with any other
      corporation, other than a merger or consolidation which would result in
      the voting securities of the Company outstanding immediately prior thereto
      continuing to represent (either by remaining outstanding or being
      converted into voting securities of the surviving entity) more than fifty
      percent (50%) of the combined voting securities of the Company or such
      surviving entity outstanding immediately after such merger or
      consolidation; or

            

    

    

    
      	
               
      

            	
              (d)

            	
              The
      approval of the stockholders of the Company of a plan of complete
      liquidation of the Company or an agreement for the sale or disposition by
      the Company of all or substantially all of its
  assets.

            

    

    

    A
“Section 409A Change in Control” shall be deemed to have occurred as of the
first day on which any one or more of the conditions in paragraphs (a) through
(d), above, has been satisfied, if the event also constitutes a “change in
ownership,” “change in effective control,” or “change in the ownership of a
substantial portion of the Company’s assets” as defined in regulations or other
guidance under Section 409A of the Code.

    

    8.4  Excise
Tax Equalization Payment.  In the event that the Executive becomes
entitled to payments and/or benefits which would constitute "parachute payments"
within the meaning of Section 280G(b)(2) of the Code, the provisions of Exhibit
A will apply.

    

    8.5  The
Executive’s right under this Section 8 to receive any payments in installments
shall be treated as a right to a series of separate payments for purposes of
Section 409A of the Code, as provided in Treas. Reg.
§ 1.409A-2(b)(2)(iii).

    

    9.   Noncompetition,
Confidentiality and Nondisparagement

    

    9.1  Agreement
Not to Compete.

    

    
      	
               
      

            	
              (a)

            	
              The
      Executive agrees that for a period of two (2) years after the termination
      of the Executive's employment, the Executive will not engage in
      Competition with the Company with the Listed Companies, provided that
      after the Executive's termination of employment the Listed Companies shall
      be limited to those effectively listed at the time of his termination and
      still on such list at the time of any alleged activity of the Executive,
      including, but not limited to, (i) soliciting customers, business or
      orders for, or selling any products and services in, Competition with the
      Company for such Listed Companies or (ii) diverting, enticing, or
      otherwise taking away customers, business or orders of the Company, or
      attempting to do so, in either case in Competition with the Company for
      such Listed Companies.

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      Executive agrees that if, while he is receiving severance pay from the
      Company pursuant to Section 6.2(b) or Section 6.3(b), the
      Executive:  (i) violates (a) above, or (ii) otherwise engages in
      Competition in the Restricted Territory, whether or not with the Listed
      Companies, Section 9.6(b) hereof shall
apply.

            

    

    

    
      	
               
      

            	
              (c)

            	
              The
      Executive agrees that the restrictions contained in this Section 9 are
      necessary for the protection of the business and goodwill of the Company
      because of the trade secrets within the Executive's knowledge and are
      considered by the Executive to be reasonable for such
    purpose.

            

    

    

    9.2           Definitions.

    

    
      	
               
      

            	
              (a)

            	
              "Competition"
      shall mean engaging in, as an employee, director, partner, principal,
      shareholder, consultant, advisor, independent contractor or similar
      capacity, with (a) the Listed Companies or (b) in any business, activity
      or conduct which directly competes with the business of the Company,
      provided that, with regard to the period after termination of the
      Executive's employment, Section 9.1(b)(ii) shall only apply to business
      lines in which the Company is engaged both at the time of termination of
      employment and at the time of the determination and which during the last
      fiscal year ending prior to the date of such termination represented at
      least five percent (5%) of the Company's revenues (the "Prohibited
      Lines").  Notwithstanding anything else in this Section 9,
      Competition shall not include:  (A) (i) holding five percent
      (5%) or less of an interest in the equity or debt of any publicly traded
      company, (ii) engaging in any activity with the prior written approval of
      the O&C Committee, (iii) the practice of law in a law firm that
      represents entities in Competition with the Company, provided that the
      Executive does not personally represent such entities, or (iv) the
      employment by, or provision of services to, an investment banking firm or
      consulting firm that provides services to entities that are in Competition
      with the Company provided that the Executive does not personally represent
      or provide services to such entities that are Listed Companies or
      otherwise with regard to businesses in Competition with the Prohibited
      Lines, or (B) with regard to Section 9.1(b)(ii), (i) being employed by, or
      consulting for, a non-Competitive division or business unit of an entity
      which is in Competition with the Company (and participating in such
      entity's employee equity plans), (ii) being employed by, or consulting
      for, an entity which had annual revenues in the last fiscal year prior to
      the Executive being employed by, or consulting for, the entity generated
      through business lines in Competition with the Prohibited Lines of the
      Company that do not exceed five percent (5%) of such entity's total annual
      revenues, provided that revenues within the Executive's area of
      responsibility or authority are not more than ten percent (10%) composed
      of the revenues from the businesses in Competition with the Prohibited
      Lines, or (iii) any activities conducted after a Change in Control of the
      Company.

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      Restricted Territory shall mean any geographic area in which the Company
      with regard to the Prohibited Lines did more than nominal
      business.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Listed
      Companies shall mean those entities which are within the "peer group"
      established by the Company for the performance graphs in its proxy
      statement pursuant to Item 402(l) of Regulation S-K under the Exchange Act
      and which are in a list of no more than five (5) entities established by
      the Company from time to time and available from the Chief Human Resources
      Officer, provided that the addition of any entity to the list shall not be
      effective until sixty (60) days after it is so
  listed.

            

    

    

    
      	
               
      

            	
              (d)

            	
              For
      purposes of this Section 9, "Company" shall mean the Company and its
      subsidiaries and affiliates.

            

    

    

    9.3  Agreement
Not to Engage in Certain Solicitation. The Executive agrees that the Executive
will not, during the Executive's employment with the Company or during the two
(2) year period thereafter, directly or indirectly, solicit or induce, or
attempt to solicit or induce, any non-clerical employee(s), sales
representative(s), agent(s), or consultant(s) of the Company to terminate such
person's employment, representation or other association with the Company for
the purpose of affiliating with any entity with which the Executive is
associated ("Solicitation").

    

    9.4  Confidential
Information.

    

    
      	
               
      

            	
              (a)

            	
              The
      Executive specifically acknowledges that any trade secrets or confidential
      business and technical information of the Company or its vendors,
      suppliers or customers, whether reduced to writing, maintained on any form
      of electronic media, or maintained in mind or memory and whether compiled
      by the Executive or the Company (collectively, "Confidential
      Information"), derives independent economic value from not being readily
      known to or ascertainable by proper means by others; that reasonable
      efforts have been made by the Company to maintain the secrecy of such
      information; that such information is the sole property of the Company or
      its vendors, suppliers, or customers and that any retention, use or
      disclosure of such information by the Executive during the Employment Term
      (except in the course of performing duties and obligations of employment
      with the Company) or any time after termination thereof, shall constitute
      misappropriation of the trade secrets of the Company or its vendors,
      suppliers, or customers, provided that Confidential Information shall not
      include: (i) information that is at the time of disclosure public
      knowledge or generally known within the industry, (ii) information deemed
      in good faith by the Executive, while employed by the Company, desirable
      to disclose in the course of performing the Executive's duties, (iii)
      information the disclosure of which the Executive in good faith deems
      necessary in defense of the Executive's rights provided such disclosure by
      the Executive is limited to only disclose as necessary for such purpose,
      or (iv) information disclosed by the Executive to comply with a court, or
      other lawful compulsory, order compelling him to do so, provided the
      Executive gives the Company prompt notice of the receipt of such order and
      the disclosure by the Executive is limited to only disclosure necessary
      for such purpose.

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      Executive acknowledges that the Company from time to time may have
      agreements with other persons or with the United States Government, or
      agencies thereof, that impose obligations or restrictions on the Company
      regarding inventions made during the course of work under such agreements
      or regarding the confidential nature of such work.  If the
      Executive's duties hereunder will require disclosures to be made to him
      subject to such obligations and restrictions, the Executive agrees to be
      bound by them.

            

    

    

    9.5           Scope
of Restrictions.  If, at the time of enforcement of this Section 9, a
court holds that the restrictions stated herein are unreasonable under
circumstances then existing, the parties hereto agree that the maximum period,
scope or geographical area reasonable under such circumstances shall be
substituted for the stated period, scope or area and that the court shall be
allowed to revise the restrictions contained herein to cover the maximum period,
scope and area permitted by law.

    

    9.6           Remedies.

    

    
      	
               
      

            	
              (a)

            	
              In
      the event of a material breach or threatened material breach of Section
      9.1(a), Section 9.3, Section 9.4 or Section 9.10, the Company, in addition
      to its other remedies at law or in equity, shall be entitled to injunctive
      or other equitable relief in order to enforce or prevent any violations of
      the provisions of this Section 9.  Except as specifically
      provided with regard to Listed Companies, the Company agrees that it will
      not assert to enjoin or otherwise limit the Executive's activities based
      on an argument of inevitable disclosure of confidential
      information.

            

    

    

    
      	
               
      

            	
              (b)

            	
              In
      the event Section 9.1(b) applies, the Company may immediately cease
      payment to the Executive of all future amounts due under Sections 6.2(a)
      or (b) or Sections 6.3(a) or (b), as well as otherwise specifically
      provided in any other plan, grant or
program.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Upon
      written request of the Executive, the Company shall within thirty (30)
      days notify the Executive in writing whether or not in good faith it
      believes any proposed activities would be in Competition and, if it so
      determines or does not reply within thirty (30) days, it shall be deemed
      to waive any right to treat such activities as Competition unless the
      facts are otherwise than as presented by the Executive or there is a
      change thereafter in such activities.  The Executive shall
      promptly provide the Company with such information as it may reasonably
      request to evaluate whether or not such activities are in
      Competition.

            

    

    

    9.7           Uniformity.  In
no event shall any definitions of Competition or Solicitation (or a similar
provision) as it applies to the Executive with regard to any plan of program or
grant of the Company be interpreted to be any broader than as set forth in this
Section 9.

    

    9.8           Delivery
of Documents.  Upon termination of this Agreement or at any other time
upon request by the Company, the Executive shall promptly deliver to the Company
all records, files, memoranda, notes, designs, data, reports, price lists,
customer lists, drawings, plans, computer programs, software, software
documentation, sketches, laboratory and research notebooks and other documents
(and all copies or reproductions of such materials in his possession or control)
belonging to the Company.  Notwithstanding the foregoing, the
Executive may retain his rolodex and similar phone directories (collectively,
the "Rolodex") to the extent the Rolodex does not contain information other than
name, address, telephone number and similar information, provided that, at the
request of the Company, the Executive shall provide the Company with a copy of
the Rolodex.

    

    9.9           Nondisparagement.

    

    
      	
               
      

            	
              (a)

            	
              During
      the Employment Term and thereafter, the Executive shall not with willful
      intent to damage economically or as to reputation or vindictively
      disparage the Company, its subsidiaries or their respective past or
      present officers, directors or employees (the "Protected Group"), provided
      that the foregoing shall not apply to (i) actions or statements taken or
      made by the Executive while employed by the Company in good faith as
      fulfilling the Executive's duties with the Company or otherwise at the
      request of the Company, (ii) truthful statements made in compliance with
      legal process or governmental inquiry, (iii) as the Executive in good
      faith deems necessary to rebut any untrue or misleading public statements
      made about him or any other member of the Protected Group, (iv) statements
      made in good faith by the Executive to rebut untrue or misleading
      statements made about him or any other member of the Protected Group by
      any member of the Protected Group, and (v) normal commercial puffery in a
      competitive business situation.  No member of the Protected
      Group shall be a third party beneficiary of this Section
      9.9(a).

            

    

    

    
      	
               
      

            	
              (b)

            	
              During
      the Employment Term and thereafter, neither the Company officially nor any
      then member of the Executive Leadership Team (or the equivalent) of the
      Company, as such term is currently used within the Company, shall with
      willful intent to damage the Executive economically or as to reputation or
      otherwise vindictively disparage the Executive, provided the foregoing
      shall not apply to (i) actions or statements taken or made in good
      faith  within the Company in fulfilling duties with the Company,
      (ii) truthful statements made in compliance with legal process,
      governmental inquiry or as required by legal filing or disclosure
      requirements, (iii) as in good faith deemed necessary to rebut any untrue
      or misleading statements by the Executive as to any member of the
      Protected Group or (iv) normal commercial puffery in a competitive
      business situation.

            

    

    

    
      	
               
      

            	
              (c)

            	
              In
      the event of a material breach or threatened material breach of clauses
      (a) or (b) above, the Company or the Executive, as the case may be, in
      addition to its or the Executive's other remedies at law or in equity,
      shall be entitled to injunctive or other equitable relief in order to
      enforce or prevent any violations of this Section
  9.9.

            

    

    

    10           Liability
Insurance

    

    The
Company shall cover the Executive under directors and officers liability
insurance for bona fide (within the meaning of Treas. Reg. § 1.409A-1(b)(10))
claims based on the Executive’s actions or failure to act in his capacity as a
director, officer, employee, or fiduciary of the Company in the same amount and
to the same extent, if any, as the Company covers its other officers and
directors.  The Company shall maintain the coverage both during and,
while potential liability exists, after the Employment Term.

    

    11           Assignment

    

    11.1           Assignment
by the Company.  This Agreement may and shall be assigned or
transferred to, and shall be binding upon and shall inure to the benefit of, any
successor of the Company, and any such successor shall be deemed substituted for
all purposes of the "Company" under the terms of this Agreement.  As
used in this Agreement, the term "successor" shall mean any person, firm,
corporation or business entity which at any time, whether by merger, purchase,
or otherwise, acquires all or substantially all of the assets of the
Company.  Notwithstanding such assignment, the Company shall remain,
with such successor, jointly and severally liable for all its obligations
hereunder. Except as herein provided, this Agreement may not otherwise be
assigned by the Company.

    

    11.2           Assignment
by the Executive.  This Agreement is not assignable by the
Executive.  This Agreement shall inure to the benefit of and be
enforceable by the Executive's personal or legal representatives, executors, and
administrators, successors, heirs, distributees, devisees, and
legatees.  If the Executive should die while any amounts payable to
the Executive hereunder remain outstanding, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement to
the Executive's devisee, legatee, or other designee or, in the absence of such
designee, to the Executive's estate.

    

    12           Legal
Remedies

    

    12.1           Payment
of Legal Fees.  The Company shall pay the Executive's reasonable legal
fees and costs associated with entering into this Agreement.  To the
fullest extent permitted by law, the Company shall promptly pay upon submission
of statements all legal and other professional fees, costs of litigation,
prejudgment interest, and other expenses incurred during the Executive’s
lifetime or in the five-year period following the Executive’s death in
connection with any dispute arising hereunder and/or in connection with any
release of claims executed or to be executed in connection herewith; provided,
however, the Company shall be reimbursed by the Executive for (i) the fees and
expenses advanced in the event the Executive's claim is in a material manner in
bad faith or frivolous and the arbitrator or court, as applicable, determines
that the reimbursement of such fees and expenses is appropriate, or (ii) to the
extent that the arbitrator or court, as appropriate, determines that such legal
and other professional fees are clearly and demonstrably
unreasonable.  Prejudgment interest shall be paid at the rate awarded
by the arbitrator or court on any money award or judgment obtained by the
Executive or by any person claiming by or through the Executive under this
Agreement, payable at the same time as the underlying award or judgment is
paid.  The only taxable payments
or  reimbursements provided under this paragraph during the first
six months following the Executive’s Qualifying Termination shall be
reimbursements that the Executive could otherwise deduct as business expenses
under Sections 162 or 167 of the Code (disregarding limitations based on
adjusted gross income).  After the end of the sixth month following
the Executive’s Qualifying Termination, taxable reimbursements shall be provided
under this paragraph subject to the following requirements: (A) all
reimbursements shall be provided pursuant to a written policy that provides an
objectively determinable nondiscretionary description of the reimbursements
provided; (B) all reimbursements shall be paid no later than the end of the
calendar year following the year in which the expense was incurred; (C) no
reimbursement shall be subject to liquidation or exchange for another benefit;
and (D) the amount of reimbursable expense incurred in one year shall not affect
the amount of reimbursement available in another year.  Any taxable
expenses incurred during the first six months following the Executive’s
termination that are otherwise payable or reimbursable under this paragraph, but
whose payment during the initial six-month period would result in additional tax
under Section 409A of the Code, shall be paid or reimbursed in a lump sum,
without interest, on the first regular payroll date after the end of the sixth
month following the Executive’s Qualifying Termination.

    

    12.2           Arbitration.  All
disputes and controversies arising under or in connection with this Agreement,
other than the seeking of injunctive or other equitable relief pursuant to
Section 9 hereof, shall be settled by arbitration conducted before a panel of
three (3) arbitrators sitting in New York City, New York, or such other location
agreed by the parties hereto, in accordance with the rules for expedited
resolution of commercial disputes of the American Arbitration Association then
in effect. The determination of the majority of the arbitrators shall be final
and binding on the parties.  Judgment may be entered on the award of
the arbitrator in any court having proper jurisdiction. All expenses of such
arbitration, including the fees and expenses of the counsel of the Executive,
shall be borne by the Company and the Executive shall be entitled to
reimbursement of his expenses as provided in Section 12.1 hereof.

    

    12.3           Notice.  Any
notices, requests, demands, or other communications provided for by this
Agreement shall be sufficient if in writing and if delivered personally, sent by
telecopier, sent by an overnight service or sent by registered or certified
mail.   Notice to the Executive not delivered personally (or by
telecopy where the Executive is known to be) shall be sent to the last address
on the books of the Company, and notice to the Company not delivered personally
(or by telecopy to the known personal telecopy of the person it is being sent
to) shall be sent to it at its principal office.  All notices to the
Company shall be delivered to the Chairman of the O&C Committee with a copy
to the senior legal officer.  Delivery shall be deemed to occur on the
earlier of actual receipt or tender and rejection by the intended
recipient.

    

    12.4           Continued
Payments.  In the event after a Change in Control either party files
for arbitration to resolve any dispute as to whether a termination is for Cause
or Good Reason, until such dispute is determined by the arbitrators, the
Executive shall continue to be treated economically and benefit wise in the
manner asserted by him in the arbitration effective as of the date of the filing
of the arbitration, subject to the Executive promptly refunding any amounts paid
to him, paying the cost of any benefits provided to him and paying to the
Company the profits in any stock option or other equity awards exercised or
otherwise realized by him during the pendency of the arbitration which he is
ultimately held not to be entitled to; provided the arbitrators may terminate
such payments and benefits in the event that they determine at any point that
the Executive is intentionally delaying conclusion of the
arbitration.

    

    13           Miscellaneous

    

    13.1           Entire
Agreement.  This Agreement, except to the extent specifically provided
otherwise herein, supersedes any prior agreements or understandings, oral or
written, between the parties hereto or between the Executive and the Company,
with respect to the subject matter hereof and constitutes the entire Agreement
of the parties with respect to the subject matter hereof.  To the
extent any severance plan or program of the Company that would apply to the
Executive is more generous to the Executive than the provisions hereof, the
Executive shall be entitled to any additional payments or benefits which are not
duplicative.

    

    13.2           Modification.  This
Agreement shall not be varied, altered, modified, canceled, changed, or in any
way amended, nor any provision hereof waived, except by mutual agreement of the
parties in a written instrument executed by the parties hereto or their legal
representatives.

    

    13.3           Severability.  In
the event that any provision or portion of this Agreement shall be determined to
be invalid or unenforceable for any reason, the remaining provisions of this
Agreement shall be unaffected thereby and shall remain in full force and
effect.

    

    13.4           Counterparts.  This
Agreement may be executed in two (2) or more counterparts, each of which shall
be deemed to be an original, but all of which together will constitute one and
the same Agreement.

    

    13.5           Tax
Withholding.  The Company may withhold from any benefits payable under
this Agreement all federal, state, city, or other taxes as may be required
pursuant to any law or governmental regulation or ruling.

    

    13.6           Beneficiaries.  The
Executive may designate one or more persons or entities as the primary and/or
contingent beneficiaries of any amounts to be received under this Agreement.
Such designation must be in the form of a signed writing acceptable to the Board
or the Board's designee.  The Executive may make or change such
designation at any time.

    

    13.7           Representation.  The
Executive represents that the Executive's employment by the Company and the
performance by the Executive of his obligations under this Agreement do not, and
shall not, breach any agreement that obligates him to keep in confidence any
trade secrets or confidential or proprietary information of his or of any other
party, to write or consult to any other party or to refrain from competing,
directly or indirectly, with the business of any other party.  The
Executive shall not disclose to the Company, and the Company shall not request
that the Executive disclose, any trade secrets or confidential or proprietary
information of any other party.

    

    13.8     Section
409A.

    

    
      	
               
      

            	
              (a)

            	
              Although
      the payments and benefits provided under the Agreement are intended to be
      exempt from, or to comply with, Section 409A of the Code, the Company
      shall not be liable for any additional tax, interest, or penalty the
      Executive incurs as a result of the failure of any payment or benefit to
      satisfy the requirements of Section 409A, except as provided in subsection
      (c), below.  The Company will promptly make any change in the
      Agreement that the Executive reasonably requests to ensure that the
      Agreement will comply with Section 409A, provided that the requested
      change does not alter any substantive provision of the Agreement in a
      manner that the Company, in its sole discretion, reasonably regards as
      being contrary to the Company’s
interest.

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      Company will consider in good faith any change in the Agreement that the
      Executive reasonably requests to ensure that the Agreement will comply
      with Section 409A.  If the Company is not willing to accept the
      proposed change as written, the Company will promptly communicate to the
      Executive the reasons for the Company’s refusal and any revisions that
      would make the proposed change acceptable to the
  Company.

            

    

    

    
      	
               
      

            	
              (c)

            	
              The
      Company shall indemnify the Executive, as provided in this subsection (c),
      if a violation of Section 409A occurs as a result of (1) the Company’s
      clerical error, (2) the Company’s failure to administer this Agreement or
      any benefit plan or program in accordance with its written terms, or (3) a
      provision of any benefit plan or program of the Company (other than this
      Agreement) that fails to comply with Section 409A (each event described in
      clauses (1) through (3) is referred to as an “Indemnified Section 409A
      Violation”), and the Executive incurs additional tax under Section 409A as
      a result of the Indemnified Section 409A Violation.  The Company
      shall reimburse the Executive for (i) the 20% additional income tax
      described in Section 409A(a)(1)(B)(i)(II) of the Code (to the extent that
      the Executive incurs the 20% additional income tax as a result of the
      Indemnified Section 409A Violation), and (ii) any interest or penalty that
      is assessed with respect to the Executive’s failure to make a timely
      payment of the 20% additional income tax described in clause (i), provided
      that the Executive pays the 20% additional income tax promptly upon being
      notified that the tax is due (the amounts described in clause (i) and
      clause (ii) are referred to collectively as the “Section 409A
      Tax”).  The Company shall make a payment (the “Gross-Up
      Payment”) to the Executive such that the net amount the Executive retains,
      after paying any federal, state, or local income tax or FICA tax on the
      Gross-Up Payment, shall be equal to the Section 409A Tax.  The
      Company and the Executive shall calculate, adjust (if necessary), and pay
      or repay the Gross-Up Payment in accordance with the procedures specified
      in subsections (c) through (g) of Exhibit A (but substituting “Section
      409A Tax” for “Excise Tax” wherever the latter term appears in Exhibit
      A).

            

    

    

    14           Governing
Law

    

    The
provisions of this Agreement shall be construed and enforced in accordance with
the laws of the State of Delaware, without regard to any otherwise applicable
principles of conflicts of laws.

    

    

    IN
WITNESS WHEREOF, the Executive and the Company have executed this Agreement, as
of the day and year first above written.

     

    
      	
               
      

            	
              /s/Lewis B.
      Campbell__________

            

    

    
      	
               
      

            	
              Lewis
      B. Campbell

            

    

     

    

    
      	
               
      

            	
              TEXTRON
      INC.

            

    

    

    

    
      	
               
      

            	
              By:
      /s/Lord Powell
      of Bayswater_

            

    

    
      	
               
      

            	
              Name:  Lord
      Powell of Bayswater KCMG

            

    

    
      	
               
      

            	
              Title:  Chairman,
      Organization & Compensation
Committee

            

    

    

    
      
        
          -  -

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              EXHIBIT
      A

            

    

    

    
      	
               
      

            	
              Parachute
      Gross Up

            

    

    

    (a)           In
the event that the Executive shall become entitled to payments and/or benefits
provided by this Agreement or any other amounts in the "nature of compensation"
(whether pursuant to the terms of this Agreement or any other plan, arrangement
or agreement with the Company, any person whose actions result in a change of
ownership or effective control covered by Section 280G(b)(2) of the Code or any
person affiliated with the Company or such person) as a result of such change in
ownership or effective control (collectively the "Company Payments"), and such
Company Payments will be subject to the tax (the "Excise Tax") imposed by
Section 4999 of the Code (and any similar tax that may hereafter be imposed by
any taxing authority) the Company shall pay to the Executive at the time
specified in subsection (d) below an additional amount (the "Gross-up Payment")
such that the net amount retained by the Executive, after deduction of any
Excise Tax on the Company Payments and any U.S. federal, state, and for local
income or payroll tax upon the Gross-up Payment provided for by this paragraph
(a), but before deduction for any U.S. federal, state, and local income or
payroll tax on the Company Payments, shall be equal to the Company
Payments.  Notwithstanding the foregoing, if the then present
aggregate value of the Company Payments (calculated in accordance with the
principles of Section 280G of the Code and the regulations promulgated
thereunder) does not exceed 110% of the “Safe Harbor Amount” (which shall be
2.99 times the Executive’s “base amount” within the meaning of Section
280G(b)(3) of the Code), then the Company shall not pay the Executive a Gross-up
Payment, and the Company Payments (whether due pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with the Company) shall be
reduced so that the then present aggregate value of the Company Payments equals
the Safe Harbor Amount.  The reduction of the Company Payments, if
applicable, shall be effected in the following order (unless the Executive
elects another method of reduction by written notice to the Company prior to the
Change in Control): (i) any cash severance benefits based on a multiple of Base
Salary or annual incentive compensation; (ii) any other cash amounts payable to
the Executive; (iii) any benefits valued as parachute payments; (iv)
acceleration of vesting of any stock option for which the exercise price exceeds
the then fair market value of the underlying stock; and (v) acceleration of
vesting of any equity award not covered by subsection (iv).

    

    (b)           For
purposes of determining whether any of the Company Payments and Gross-up
Payments (collectively the "Total Payments") will be subject to the Excise Tax
and the amount of such Excise Tax, (x) the Total Payments shall be treated as
"parachute payments" within the meaning of Section 280G(b)(2) of the Code, and
all "parachute payments" in excess of the "base amount" (as defined under Code
Section 280G(b)(3) of the Code) shall be treated as subject to the Excise Tax,
unless and except to the extent that, in the opinion of the Company's
independent certified public accountants appointed prior to any change in
ownership (as defined under Code Section 280G(b)(2)) or tax counsel selected by
such accountants (the "Accountants") such Total Payments (in whole or in part)
either do not constitute "parachute payments," represent reasonable compensation
for services actually rendered within the meaning of Section 280G(b)(4) of the
Code in excess of the "base amount" or are otherwise not subject to the Excise
Tax, and (y) the value of any non-cash benefits or any deferred payment or
benefit shall be determined by the Accountants in accordance with the principles
of Section 280G of the Code.

    

    (c)           For
purposes of determining the amount of the Gross-up Payment, the Executive shall
be deemed to pay U.S. federal income taxes at the highest marginal rate of U.S.
federal income taxation in the calendar year in which the Gross-up Payment is to
be made and state and local income taxes at the highest marginal rate of
taxation in the state and locality of the Executive's residence for the calendar
year in which the Company Payment is to be made, net of the maximum reduction in
U.S. federal income taxes which could be obtained from deduction of such state
and local taxes if paid in such year.  In the event that the Excise
Tax is subsequently determined by the Accountants to be less than the amount
taken into account hereunder at the time the Gross-up Payment is made, the
Executive shall repay to the Company, at the time that the amount of such
reduction in Excise Tax is finally determined, the portion of the prior Gross-
up Payment attributable to such reduction (plus the portion of the Gross-up
Payment attributable to the Excise Tax and U.S. federal, state and local income
tax imposed on the portion of the Gross-up Payment being repaid by the Executive
if such repayment results in a reduction in Excise Tax or a U.S. federal, state
and local income tax deduction), plus interest on the amount of such repayment
at the rate provided in Section 1274(b)(2)(B) of the
Code.  Notwithstanding the foregoing, in the event any portion of the
Gross-up Payment to be refunded to the Company has been paid to any U.S.
federal, state and local tax authority, repayment thereof (and related amounts)
shall not be required until actual refund or credit of such portion has been
made to the Executive, and interest payable to the Company shall not exceed the
interest received or credited to the Executive by such tax authority for the
period it held such portion.  The Executive and the Company shall
mutually agree upon the course of action to be pursued (and the method of
allocating the expense thereof) if the Executive's claim for refund or credit is
denied.

    

    In the
event that the Excise Tax is later determined by the Accountant or the Internal
Revenue Service to exceed the amount taken into account hereunder at the time
the Gross-up Payment is made (including by reason of any payment the existence
or amount of which cannot be determined at the time of the Gross-up Payment),
the Company shall make an additional Gross-up Payment in respect of such excess
(plus any interest or penalties payable with respect to such excess) at the time
that the amount of such excess is finally determined.

    

    (d)           The
Gross-up Payment or portion thereof provided for in subsection (c) above shall
be paid not later than the thirtieth (30th) day following an event occurring
which subjects the Executive to the Excise Tax; provided, however, that if the
amount of such Gross-up Payment or portion thereof cannot be finally determined
on or before such day, the Company shall pay to the Executive on such day an
estimate, as determined in good faith by the Accountant, of the minimum amount
of such payments and shall pay the remainder of such payments (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code), subject to
further payments pursuant to subsection (c) hereof, as soon as the amount
thereof can reasonably be determined, but in no event later than the ninetieth
day after the occurrence of the event subjecting the Executive to the Excise
Tax.  In the event that the amount of the estimated payments exceeds
the amount subsequently determined to have been due, the Company shall promptly
notify the Executive of the excess payment, and the Executive shall repay the
excess amount to the Company within fifteen days after the Executive receives
the notice (together with interest at the rate provided in Section 1274(b)(2)(B)
of the Code).

    

    (e)           In
the event of any controversy with the Internal Revenue Service (or other taxing
authority) with regard to the Excise Tax, the Executive shall permit the Company
to control issues related to the Excise Tax (at its expense), provided that such
issues do not potentially materially adversely affect the Executive, but the
Executive shall control any other issues.  In the event the issues are
interrelated, the Executive and the Company shall in good faith cooperate so as
not to jeopardize resolution of either issue, but if the parties cannot agree
the Executive shall make the final determination with regard to the
issues.  In the event of any conference with any taxing authority as
to the Excise Tax or associated income taxes, the Executive shall permit the
representative of the Company to accompany the Executive, and the Executive and
the Executive's representative shall cooperate with the Company and its
representative.

    

    (f)           The
Company shall be responsible for all charges of the Accountant.

    

    (g)           The
Company and the Executive shall promptly deliver to each other copies of any
written communications, and summaries of any verbal communications, with any
taxing authority regarding the Excise Tax covered by this Exhibit
A.

    
      
        
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    EXHIBIT
B

    

    Amendment
to Restricted Stock Awards

    Granted
on June 1, 1999, and January 1, 2001

    

    To the
extent that the restricted stock awards granted to the Executive on June 1,
1999, and January 1, 2001, as subsequently amended, have not vested or been
forfeited before February 26, 2008, the provisions of each the restricted
stock award governing the payment of dividends shall be amended as follows,
effective as of February 26, 2008:

    

    Dividends
shall be credited to the Executive and such dividends shall be accounted for as
if reinvested in actual Textron common stock (although no funds shall be set
aside or shares purchased for the Executive, and the obligation to pay the
dividends to the Executive shall be an unfunded obligation of the
Company).  Such dividends shall vest immediately.  Payment
of the dividends shall be made in a lump sum in cash within 30 days after the
earliest of the following dates, if the Executive is still employed by the
Company on the applicable date: (1) the fixed date on which the underlying
shares of restricted stock are scheduled to vest; (2) the date of the
Executive’s death; and (3) the date on which the Executive incurs a
“Disability,” as defined in the restricted stock agreement, that also qualifies
as a “disability” for purposes of Section 409A(a)(2)(C) of the Internal Revenue
Code.  If the Executive’s separation from service with the Company
(within the meaning of Section 409A of the Internal Revenue Code) occurs before
the payment date identified in the preceding sentence, the dividends shall be
paid in a lump sum in cash on the earlier of the following dates: (1) on the
first regular payroll date after the date of the Executive’s death following his
separation from service, and (2) on the first regular payroll date after the end
of the sixth month following the Executive’s separation from
service.

    

    
      
        
          -  -

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
C

    

    Form of
Release

    

    

    NOTICE:
YOU MAY CONSIDER THIS GENERAL RELEASE OF CLAIMS FOR UP TO TWENTY-ONE (21) DAYS
FROM YOUR NOTICE OF TERMINATION.  IF YOU DECIDE TO SIGN IT, YOU MAY
REVOKE THIS GENERAL RELEASE OF CLAIMS WITHIN SEVEN (7) DAYS AFTER SIGNING
IT.  IF YOU REVOKE THE RELEASE WITHIN THIS PERIOD, YOUR REVOCATION
MUST BE IMMEDIATELY SUBMITTED IN WRITING AS DESCRIBED  IN THE
RELEASE.  YOU MIGHT WISH TO CONSULT WITH AN ATTORNEY BEFORE SIGNING
THIS DOCUMENT.

    

    TEXTRON,
INC.

    

    GENERAL
RELEASE OF CLAIMS

    

    My
Employment Agreement with Textron Inc. (“Textron”) states that I will
receive certain payments and benefits in the event of the termination of my
employment only if I execute a general release of claims and I do not revoke the
general release during the applicable revocation period.  In
consideration of the payments and benefits that I will receive under my
Employment Agreement, on behalf of myself and on behalf of any person acting by,
through, or under me (collectively, the “Executive Releasors”), I
hereby release, waive, and forever discharge Textron, Inc.; its current and
former subsidiaries and related entities; its and their respective past or
present officers and directors; its and their employees, fiduciaries, agents,
and insurers (but only in their capacity as employees, fiduciaries, agents, or
insurers of Textron and its current and former subsidiaries and related
entities); and the successors and assigns of each of them (collectively, the
“Textron Releasees”)
from any and all liability, charges, causes of action, demands, damages, or
claims for relief of any kind whatsoever, whether known or unknown at this time,
arising out of, or connected with, my employment with Textron and/or the
termination of my employment from the beginning of the world through the
effective date of this Release.  The claims waived by me under this
General Release of Claims (the “Release”) include, but are not
limited to, all matters in law, in equity, in contract, in tort, or pursuant to
statute, including any claim for discrimination in employment on the basis of
age, race, sex, national origin, disability, religion, or any other type of
discrimination under the Age Discrimination in Employment Act (“ADEA”), Title VII of the Civil
Rights Act of 1964, the Americans with Disabilities Act, or other federal, state
or local law or ordinance, to the fullest extent permitted under
law.

    

    This
Release does not apply to any claims or rights that may arise after the date I
signed this Release.  I understand that Textron is not admitting to
any violation of my rights or any duty or obligation owed to me.

    

    Exclusions

    

    Excluded
from this Release are my claims that, by law, cannot be waived, including but
not limited to (1) the right to file a charge with or participate in an
investigation conducted by certain government agencies including, but not
limited to, the United States Equal Employment Opportunity Commission, (2) any
rights or claims to benefits accrued under benefit plans maintained by Textron
under the Employee Retirement Income Security Act, and (3) any claims that
cannot be waived under the Fair Labor Standards Act or the Family and Medical
Leave Act.  Also excluded from this Release are my claims for
payments, benefits, indemnity, contribution, exculpation, advances, and
insurance that are expressly excluded from the requirement that I execute a
Release by specific reference in my Employment Agreement with
Textron.  Further, nothing set forth herein shall serve to release or
waive Textron’s obligations pursuant to and in accordance with the terms of
Sections 6, 7(a), 8, 9.9(b), 9.9(c), 10, 11.1, 12, 13.6, and 13.8 of my
Employment Agreement with Textron, each of which shall survive the execution of
this Release, or serve to release or waive my right to enforce the terms of this
Release.

    

    Acknowledgements

    

    I
acknowledge and agree to the following:

    

    
      	
              1.  

            	
              The
      benefits I am receiving under the Employment Agreement constitute
      consideration over and above any benefits that I might be entitled to
      receive without executing this
Release;

            

    

     

    
      	
              2.  

            	
              Textron
      advised me in writing to consult with an attorney prior to signing this
      Release;

            

    

     

    
      	
              3.  

            	
              I
      was given a period of at least twenty-one (21) days within which to
      consider this Release; and

            

    

     

    
      	
              4.  

            	
              Textron
      has advised me of my statutory right to revoke my agreement to this
      Release at any time within seven (7) days after my signing this
      Release.

            

    

     

    Representations
and Warranties

    

    I warrant
and represent that my decision to sign this Release was entirely voluntary on my
part.  My decision was not made in reliance on any inducement,
promise, or representation, whether express or implied, other than the
inducements, representations, and promises expressly set forth herein and in the
Employment Agreement, and my decision did not result from any threats or other
coercive activities to induce my agreement to this Release.

    

    In
addition, I warrant and represent that neither I nor any other Executive
Releasor will sue Textron or any other Textron Releasee in any forum for any
claim covered by this Release, except that I may bring a claim under ADEA to
challenge this Release.

    

    I further
warrant and represent that I fully understand and appreciate the consequences of
my signing this Release.

    

    Textron further warrants and represents
that it has obtained or will obtain any approvals that are necessary for Textron
to enter into and abide by the terms of this Release.

    

    Revocation

    

    If I decide to exercise my right to
revoke this Release within seven (7) days after my agreement to this Release, I
warrant and represent that I will notify Textron in writing, in accordance with
the notice provisions of my Employment Agreement, of my intent to revoke this
Release, and that I will simultaneously return in full any consideration
received from Textron that was subject to the condition that I execute a general
release of claims.

    

    Entire
Agreement

    

    This
Release, except to the extent specifically provided otherwise herein, supersedes
any prior agreements or understandings, oral or written, between the parties
hereto with respect to the subject matter hereof and constitutes the entire
agreement of the parties with respect to the subject matter hereof.

    

    Modification

    

    This
Release shall not be varied, altered, modified, canceled, changed, or in any way
amended, nor any provision hereof waived, except by mutual agreement of the
parties in a written instrument executed by the parties hereto or their legal
representatives.

    

    Successors
and Assigns

    

    This
Release shall inure to the benefit of and be binding upon each of the parties
and their respective successors and assigns; provided, however, that neither
this Release nor any of the rights, interests, or obligations hereunder shall be
assigned by either of the parties hereto without the prior written consent of
the other party, and no assignment of any right, interest or obligation shall
release any such assigning party therefrom unless the other party shall have
consented to such release in writing specifically referring to the right,
interest or obligation from which such assigning party is to be
released.  Any purported assignment in violation of this paragraph
shall be void and of no force or effect.  This paragraph shall not
prevent any successor to a Textron Releasee from receiving the benefit of (and
being bound by) the Release automatically, without the need for prior written
consent by the Executive Releasors.

    

    Governing
Law

    

    The
provisions of this Release shall be construed and enforced in accordance with
the laws of the State of Delaware, without regard to any otherwise applicable
principles of conflicts of laws.

    

    Counterparts

    

    This
Release may be executed in two (2) or more counterparts, each of which shall be
deemed to be an original, but all of which together will constitute one and the
same agreement.

    

    

    IN
WITNESS WHEREOF, the Executive and Textron have executed this Release as of the
day and year first above written.

    

    

    ____________________________

    [EXECUTIVE]

    

    

    

    

    TEXTRON
INC.

    

    

    

    

    By:  ___________________________

    Name:

    Title:

    

    
      
        
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