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Exhibit 4.38

GUARANTEE AGREEMENT

by and between

BB&T CORPORATION 

as Guarantor

and

U.S. BANK NATIONAL ASSOCIATION 

as Guarantee Trustee

relating to

BB&T CAPITAL TRUST VIII

Dated as of __________________

	 	 	CROSS REFERENCE TABLE1	 	 
	 
	Section of Trust	 	 	 	 
	Indenture Act of	 	 	Section of	 
	1939, as amended	 	 	Agreement	 
	 
	310(a)		 	4.1(a)	
	(b)	 	 	2.8; 4.1(c)	
	(c)	 	 	Inapplicable	 
	311(a)		 	2.2(b)	
	(b)	 	 	2.2(b)	
	(c)	 	 	Inapplicable	 
	312(a)		 	2.2(a)	
	(b)	 	 	2.2(b)	
	(c)	 	 	2.3	 
	313	 	 	2.3	 
	314(a)		 	2.4	 
	(b)	 	 	Inapplicable	 
	(c)	 	 	2.5	 
	(d)	 	 	Inapplicable	 
	(e)	 	 	1.1; 2.5; 3.2	
	(f)	 	 	2.1; 3.2	
	315(a)		 	3.1(d); 3.2(a)	
	(b)	 	 	2.7	 
	(c)	 	 	3.1(c)	
	(d)	 	 	3.1(d)	
	316(a)		 	1.1; 2.6; 5.4	
	(b)	 	 	5.3; 5.7	
	(c)	 	 	8.2	 
	317(a)		 	Inapplicable	 
	(b)	 	 	Inapplicable	 
	318(a)		 	2.1	 
	(b)	 	 	2.1	 
	(c)	 	 	2.1	 

	1     	This Cross-Reference Table does not constitute part of the Agreement and shall not have any bearing upon the interpretation of any of its terms or provisions.
	 

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	Table of Contents
	 	 	 	Page
	ARTICLE I	DEFINITIONS	 	1
	 	SECTION 1.1.	Definitions	1
	ARTICLE II	TRUST INDENTURE ACT	4
	 	SECTION 2.1.	Trust Indenture Act; Application	4
	 	SECTION 2.2.	List of Holders	4
	 	SECTION 2.3.	Reports by the Guarantee Trustee	5
	 	SECTION 2.4.	Periodic Reports to the Guarantee Trustee	5
	 	SECTION 2.5.	Evidence of Compliance with Conditions Precedent	5
	 	SECTION 2.6.	Events of Default; Waiver	5
	 	SECTION 2.7.	Event of Default; Notice	5
	 	SECTION 2.8.	Conflicting Interests	6
	ARTICLE III	POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE	6
	 	SECTION 3.1.	Powers and Duties of the Guarantee Trustee	6
	 	SECTION 3.2.	Certain Rights of Guarantee Trustee	7
	 	SECTION 3.3.	Compensation; Indemnity; Fees	8
	ARTICLE IV	GUARANTEE TRUSTEE	9
	 	SECTION 4.1.	Guarantee Trustee; Eligibility	9
	 	SECTION 4.2.	Appointment, Removal and Resignation of the Guarantee Trustee	9
	ARTICLE V	GUARANTEE	 	10
	 	SECTION 5.1.	Guarantee	10
	 	SECTION 5.2.	Waiver of Notice and Demand	10
	 	SECTION 5.3.	Obligations Not Affected	10
	 	SECTION 5.4.	Rights of Holders	11
	 	SECTION 5.5.	Guarantee of Payment	11
	 	SECTION 5.6.	Subrogation	12
	 	SECTION 5.7.	Independent Obligations	12
	ARTICLE VI	COVENANTS AND SUBORDINATION	12
	 	SECTION 6.1.	Subordination	12
	 	SECTION 6.2.	Pari Passu Guarantees	12
	ARTICLE VII	TERMINATION	 	13
	 	SECTION 7.1.	Termination	13

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	ARTICLE VIII	 MISCELLANEOUS	13
	SECTION 8.1.      	Suc.cessors and Assigns	13
	SECTION 8.2.      	Amendments	13
	SECTION 8.3.      	Notices	13
	SECTION 8.4.      	Benefit	14
	SECTION 8.5.      	Governing Law	14
	                                       SECTION 8.6.      	Counterparts	14

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GUARANTEE AGREEMENT

     GUARANTEE AGREEMENT, dated as of ___________________, between BB&T CORPORATION, a North Carolina corporation (the “Guarantor”), having its principal office at 200 West Second Street, Winston-Salem, North Carolina 27101, and U.S. Bank National Association, a national banking association, as trustee (in such capacity, the “Guarantee Trustee” and, in its separate corporate capacity and not in its capacity as Guarantee Trustee, “U.S. Bank”), for the benefit of the Holders (as defined herein) from time to time of the Capital Securities (as defined herein) of BB&T CAPITAL TRUST VIII, a Delaware statutory trust (the “Issuer Trust”).

RECITALS

     WHEREAS, pursuant to an Amended and Restated Trust Agreement, of even date herewith (the “Trust Agreement”), among BB&T Corporation, as Depositor, the Property Trustee, the Delaware Trustee, and the Administrative Trustees (each as named therein) and the holders from time to time of undivided beneficial interests in the assets of the Issuer Trust, the Issuer Trust is issuing $10,000 aggregate Liquidation Amount (as defined in the Trust Agreement) of its ______% Capital Securities (the “Capital Securities”), representing preferred undivided beneficial interests in the assets of the Issuer Trust and having the terms set forth in the Trust Agreement and $____________aggregate Liquidation Amount (as defined in the Trust Agreement) of its ______% Common Securities (the “Common Securities” and together with the Capital Securities, the “Trust Securities”); and

     WHEREAS, the Capital Securities will be issued by the Issuer Trust, and the proceeds thereof, together with the proceeds from the issuance of the Issuer Trust’s Common Securities, will be used to purchase the Debentures (as defined in the Trust Agreement) of the Guarantor, which Debentures will be deposited with U.S. Bank, as Property Trustee under the Trust Agreement, as trust assets; and

     WHEREAS, as an incentive for the Holders to purchase Trust Securities, the Guarantor desires irrevocably and unconditionally to agree, to the extent set forth herein, to pay to the Holders of the Trust Securities the Guarantee Payments (as defined herein) and to make certain other payments on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the purchase of Trust Securities by each Holder, which purchase the Guarantor hereby acknowledges shall benefit the Guarantor, the Guarantor executes and delivers this Guarantee Agreement for the benefit of the Holders from time to time.

ARTICLE I

DEFINITIONS

SECTION 1.1. Definitions.

     For all purposes of this Guarantee Agreement, except as otherwise expressly provided or unless the context otherwise requires:

     (a) The terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular;

     (b) All other terms used herein that are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein;

     (c) The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation”;

     (d) All accounting terms used but not defined herein have the meanings assigned to them in accordance with United States generally accepted accounting principles;

     (e) Unless the context otherwise requires, any reference to an “Article” or a “Section” refers to an Article or a Section, as the case may be, of this Guarantee Agreement; and

     (f) The words “hereby,” “herein,” “hereof” and “hereunder” and other words of similar import refer to this Guarantee Agreement as a whole and not to any particular Article, Section or other subdivision.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control,” when used with respect to any specified Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

     “Board of Directors” means the board of directors of the Guarantor or the Executive Committee of the board of directors of the Guarantor (or any other committee of the board of directors of the Guarantor performing similar functions) or a committee designated by the board of directors of the Guarantor (or such committee), comprised of two or more members of the board of directors of the Guarantor or officers of the Guarantor, or both.

     “Capital Securities” has the meaning specified in the recitals to this Guarantee Agreement.

     “Common Securities” has the meaning specified in the recitals to this Guarantee Agreement.

     “Event of Default” means (i) a default by the Guarantor in any of its payment obligations under this Guarantee Agreement or (ii) a default by the Guarantor in any other obligation hereunder that remains unremedied for 30 days.

     “Guarantee Agreement” means this Guarantee Agreement, as modified, amended or supplemented from time to time.

     “Guarantee Payments” means the following payments or distributions, without duplication, with respect to the Trust Securities, to the extent not paid or made by or on behalf of the Issuer Trust: (i) any accumulated and unpaid Distributions (as defined in the Trust Agreement) required to be paid on the Trust Securities, to the extent the Issuer Trust shall have funds on hand available therefor at such time; (ii) the Redemption Price (as defined in the Trust Agreement) with respect to any Trust Securities called for redemption by the Issuer Trust, to the extent the Issuer Trust shall have funds on hand available therefor at such time; and (iii) upon a voluntary or involuntary dissolution, winding-up or liquidation of the Issuer Trust, unless Debentures are distributed to the Holders, the lesser of (a) the Liquidation Distribution (as defined in the Trust Agreement) with respect to the Trust Securities, to the extent that the Issuer Trust shall have funds on hand available therefor at such time, and (b) the amount of assets of the Issuer Trust remaining available for distribution to Holders on liquidation of the Issuer.

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     “Guarantee Trustee” means U.S. Bank, solely in its capacity as Guarantee Trustee and not in its individual capacity, until a Successor Guarantee Trustee has been appointed and has accepted such appointment pursuant to the terms of this Guarantee Agreement, and thereafter means each such Successor Guarantee Trustee.

     “Guarantor” has the meaning specified in the first paragraph of this Guarantee Agreement.

     “Holder” means any Holder (as defined in the Trust Agreement) of any Trust Securities; provided, however, that in determining whether the holders of the requisite percentage of Trust Securities have given any request, notice, consent or waiver hereunder, “Holder” shall not include the Guarantor, the Guarantee Trustee, or any Affiliate of the Guarantor or the Guarantee Trustee.

     “Indenture” means the Junior Subordinated Indenture, dated as of August 18, 2005, between BB&T Corporation and U.S. Bank, as trustee, as the same may be modified, amended or supplemented from time to time.

     “Issuer Trust” has the meaning specified in the first paragraph of this Guarantee Agreement.

     “List of Holders” has the meaning specified in Section 2.2(a) .

     “Majority in Liquidation Amount of the Trust Securities” means, except as provided by the Trust Indenture Act, Trust Securities representing more than 50% of the aggregate Liquidation Amount (as defined in the Trust Agreement) of all Trust Securities then Outstanding (as defined in the Trust Agreement).

     “Officers’ Certificate” means, with respect to any Person, a certificate signed by the Chairman or a Vice Chairman of the Board of Directors of such Person or the President or a Vice President of such Person, and by the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary of such Person. Any Officers’ Certificate delivered with respect to compliance with a condition or covenant provided for in this Guarantee Agreement shall include:

     (a) a statement by each officer signing the Officers’ Certificate that such officer has read the covenant or condition and the definitions relating thereto;

     (b) a brief statement of the nature and scope of the examination or investigation undertaken by such officer in rendering the Officers’ Certificate;

     (c) a statement that such officer has made such examination or investigation as, in such officer’s opinion, is necessary to enable such officer to express an informed opinion as to whether or not such covenant or condition has been complied with; and

     (d) a statement as to whether, in the opinion of such officer, such condition or covenant has been complied with.

     “Person” means a legal person, including any individual, corporation, estate, partnership, joint venture, association, joint stock company, company, limited liability company, trust, statutory or business trust, unincorporated association, or government or any agency or political subdivision thereof, or any other entity of whatever nature.

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     “Responsible Officer” means, with respect to the Guarantee Trustee, any Senior Vice President, any Vice President, any Assistant Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, any Trust Officer or Assistant Trust Officer or any other officer of the Corporate Trust Department of the Guarantee Trustee and also means, with respect to a particular matter, any other officer to whom such matter is referred because of that officer’s knowledge of and familiarity with the particular subject.

     “Successor Guarantee Trustee” means a successor Guarantee Trustee possessing the qualifications to act as Guarantee Trustee under Section 4.1.

     “Trust Agreement” means the Amended and Restated Trust Agreement of the Issuer Trust referred to in the recitals to this Guarantee Agreement, as modified, amended or supplemented from time to time.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of which this Guarantee Agreement was executed; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended.

     “Trust Securities” has the meaning specified in the recitals to this Guarantee Agreement.

     “Vice President,” when used with respect to the Guarantor, means any duly appointed vice president, whether or not designated by a number or a word or words added before or after the title “vice president.”

ARTICLE II

TRUST INDENTURE ACT

     SECTION 2.1. Trust Indenture Act; Application.

     Except as otherwise expressly provided herein, the Trust Indenture Act shall apply as a matter of contract to this Guarantee Agreement for purposes of interpretation, construction and defining the rights and obligations hereunder, and this Guarantee Agreement, the Guarantor and the Guarantee Trustee shall be deemed for all purposes hereof to be subject to and governed by the Trust Indenture Act to the same extent as would be the case if this Guarantee Agreement were qualified under the Trust Indenture Act on the date hereof. Except as otherwise expressly provided herein, if and to the extent that any provision of this Guarantee Agreement limits, qualifies or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed duties shall control.

     SECTION 2.2. List of Holders.

     (a) The Guarantor shall furnish or cause to be furnished to the Guarantee Trustee (a) semiannually, on or before June 30 and December 31 of each year, a list, in such form as the Guarantee Trustee may reasonably require, of the names and addresses of the Holders (a “List of Holders”) as of a date not more than 15 days prior to the delivery thereof, and (b) at such other times as the Guarantee Trustee may request in writing, within 30 days after the receipt by the Guarantor of any such request, a List of Holders as of a date not more than 15 days prior to the time such list is furnished, in each case to the extent such information is in the possession or control of the Guarantor and has not otherwise been received by the Guarantee Trustee in its capacity as such. The Guarantee Trustee may destroy any List of Holders previously given to it on receipt of a new List of Holders.

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     (b) The Guarantee Trustee shall comply with the requirements of Section 311(a), Section 311(b) and Section 312(b) of the Trust Indenture Act.

     SECTION 2.3. Reports by the Guarantee Trustee.

     Within 60 days after May 15 of each year, commencing ___________________, the Guarantee Trustee shall provide to the Holders such reports as are required by Section 313 of the Trust Indenture Act, if any, in the form and in the manner provided by Section 313 of the Trust Indenture Act. If this Guarantee Agreement shall have been qualified under the Trust Indenture Act, the Guarantee Trustee shall also comply with the requirements of Section 313(d) of the Trust Indenture Act.

     SECTION 2.4. Periodic Reports to the Guarantee Trustee.

     The Guarantor shall provide to the Guarantee Trustee and the Holders such documents, reports and information, if any, as required by Section 314 of the Trust Indenture Act and the compliance certificate required by Section 314 of the Trust Indenture Act, in the form, in the manner and at the times required by Section 314 of the Trust Indenture Act, provided that such documents, reports and information shall be required to be provided to the Securities and Exchange Commission only if this Guarantee Agreement shall have been qualified under the Trust Indenture Act.

     SECTION 2.5. Evidence of Compliance with Conditions Precedent.

     The Guarantor shall provide to the Guarantee Trustee such evidence of compliance with such conditions precedent, if any, provided for in this Guarantee Agreement that relate to any of the matters set forth in Section 314(c) of the Trust Indenture Act. Any certificate or opinion required to be given by an officer of the Guarantor pursuant to Section 314(c)(1) may be given in the form of an Officers’ Certificate.

     SECTION 2.6. Events of Default; Waiver.

     The Holders of at least a Majority in Liquidation Amount of the Trust Securities may, by vote, on behalf of the Holders of all the Trust Securities, waive any past default or Event of Default and its consequences. Upon such waiver, any such default or Event of Default shall cease to exist, and any default or Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Guarantee Agreement, but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon.

     SECTION 2.7. Event of Default; Notice.

     (a) The Guarantee Trustee shall, within 90 days after the occurrence of an Event of Default known to the Guarantee Trustee, transmit by mail, first class postage prepaid, to the Holders, notice of any such Event of Default known to the Guarantee Trustee, unless such Event of Default has been cured before the giving of such notice, provided that, except in the case of a default in the payment of a Guarantee Payment, the Guarantee Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or Responsible Officers of the Guarantee Trustee in good faith determines that the withholding of such notice is in the interests of the Holders.

     (b) The Guarantee Trustee shall not be deemed to have knowledge of any Event of Default unless the Guarantee Trustee shall have received written notice, or a Responsible Officer charged with the administration of this Guarantee Agreement shall have obtained written notice, of such Event of Default.

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     SECTION 2.8. Conflicting Interests.

     The Trust Agreement and the Indenture shall be deemed to be specifically described in this Guarantee Agreement for the purposes of clause (i) of the first proviso contained in Section 310(b) of the Trust Indenture Act.

ARTICLE III

POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

     SECTION 3.1. Powers and Duties of the Guarantee Trustee.

     (a) This Guarantee Agreement shall be held by the Guarantee Trustee for the benefit of the Holders, and the Guarantee Trustee shall not transfer this Guarantee Agreement to any Person except to a Successor Guarantee Trustee on acceptance by such Successor Guarantee Trustee of its appointment to act as Guarantee Trustee hereunder. The right, title and interest of the Guarantee Trustee, as such, hereunder shall automatically vest in any Successor Guarantee Trustee, upon acceptance by such Successor Guarantee Trustee of its appointment hereunder, and such vesting and cessation of title shall be effective whether or not conveyancing documents have been executed and delivered pursuant to the appointment of such Successor Guarantee Trustee.

     (b) If an Event of Default has occurred and is continuing, the Guarantee Trustee shall enforce this Guarantee Agreement for the benefit of the Holders.

     (c) The Guarantee Trustee, before the occurrence of any Event of Default and after the curing of all Events of Default that may have occurred, shall undertake to perform only such duties as are specifically set forth in this Guarantee Agreement (including pursuant to Section 2.1), and no implied covenants shall be read into this Guarantee Agreement against the Guarantee Trustee. If an Event of Default has occurred (that has not been cured or waived pursuant to Section 2.6), the Guarantee Trustee shall exercise such of the rights and powers vested in it by this Guarantee Agreement, and use the same degree of care and skill in its exercise thereof, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs.

     (d) No provision of this Guarantee Agreement shall be construed to relieve the Guarantee Trustee from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that:

     (i) Prior to the occurrence of any Event of Default and after the curing or waiving of all such Events of Default that may have occurred:

     (A) the duties and obligations of the Guarantee Trustee shall be determined solely by the express provisions of this Guarantee Agreement (including pursuant to Section 2.1), and the Guarantee Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Guarantee Agreement (including pursuant to Section 2.1); and

     (B) in the absence of bad faith on the part of the Guarantee Trustee, the Guarantee Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Guarantee Trustee and conforming to the requirements of this Guarantee Agreement; but in the case of any such certificates or

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opinions that by any provision hereof or of the Trust Indenture Act are specifically required to be furnished to the Guarantee Trustee, the Guarantee Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Guarantee Agreement.

     (ii) The Guarantee Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Guarantee Trustee, unless it shall be proved that the Guarantee Trustee was negligent in ascertaining the pertinent facts upon which such judgment was made.

     (iii) The Guarantee Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of not less than a Majority in Liquidation Amount of the Trust Securities relating to the time, method and place of conducting any proceeding for any remedy available to the Guarantee Trustee, or exercising any trust or power conferred upon the Guarantee Trustee under this Guarantee Agreement.

     (iv) Subject to Sections 3.1(b) and (c), no provision of this Guarantee Agreement shall require the Guarantee Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if the Guarantee Trustee shall have reasonable grounds for believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Guarantee Agreement or adequate indemnity against such risk or liability is not reasonably assured to it.

     SECTION 3.2. Certain Rights of Guarantee Trustee.

     (a) Subject to the provisions of Section 3.1:

     (i) The Guarantee Trustee may rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document reasonably believed by it to be genuine and to have been signed, sent or presented by the proper party or parties.

     (ii) Any direction or act of the Guarantor contemplated by this Guarantee Agreement shall be sufficiently evidenced by an Officers’ Certificate unless otherwise prescribed herein.

     (iii) Whenever, in the administration of this Guarantee Agreement, the Guarantee Trustee shall deem it desirable that a matter be proved or established before taking, suffering or omitting to take any action hereunder, the Guarantee Trustee (unless other evidence is herein specifically prescribed) may, in the absence of bad faith on its part, request and rely upon an Officers’ Certificate which, upon receipt of such request from the Guarantee Trustee, shall be promptly delivered by the Guarantor.

     (iv) The Guarantee Trustee may consult with legal counsel, and the written advice or opinion of such legal counsel with respect to legal matters shall be full and complete authorization and protection in respect of any action taken, suffered or omitted to be taken by it hereunder in good faith and in accordance with such advice or opinion. Such legal counsel may be legal counsel to the Guarantor or any of its Affiliates and may be one of its employees. The Guarantee Trustee shall have the right at any time to seek instructions concerning the administration of this Guarantee Agreement from any court of competent jurisdiction.

     (v) The Guarantee Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Guarantee Agreement at the request or direction of any Holder unless

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such Holder shall have provided to the Guarantee Trustee such adequate security and indemnity as would satisfy a reasonable person in the position of the Guarantee Trustee against the costs, expenses (including attorneys’ fees and expenses) and liabilities that might be incurred by it in complying with such request or direction, including such reasonable advances as may be requested by the Guarantee Trustee; provided that nothing contained in this Section 3.2(a)(v) shall be taken to relieve the Guarantee Trustee, upon the occurrence of an Event of Default, of its obligation to exercise the rights and powers vested in it by this Guarantee Agreement.

     (vi) The Guarantee Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Guarantee Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit.

     (vii) The Guarantee Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through its agents or attorneys, and the Guarantee Trustee shall not be responsible for any misconduct or negligence on the part of any such agent or attorney appointed by it with due care hereunder.

     (viii) Whenever in the administration of this Guarantee Agreement the Guarantee Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or right or taking any other action hereunder, the Guarantee Trustee (A) may request instructions from the Holders, (B) may refrain from enforcing such remedy or right or taking such other action until such instructions are received, and (C) shall be protected in acting in accordance with such instructions.

     (b) No provision of this Guarantee Agreement shall be deemed to impose any duty or obligation on the Guarantee Trustee to perform any act or acts or exercise any right, power, duty or obligation conferred or imposed on it in any jurisdiction in which it shall be illegal, or in which the Guarantee Trustee shall be unqualified or incompetent in accordance with applicable law, to perform any such act or acts or to exercise any such right, power, duty or obligation. No permissive power or authority available to the Guarantee Trustee shall be construed to be a duty to act in accordance with such power and authority.

     SECTION 3.3. Compensation; Indemnity; Fees.

     The Guarantor agrees:

     (a) to pay to the Guarantee Trustee from time to time such reasonable compensation for all services rendered by it hereunder as may be agreed by the Guarantor and the Guarantee Trustee from time to time (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust);

     (b) except as otherwise expressly provided herein, to reimburse the Guarantee Trustee upon request for all reasonable expenses, disbursements and advances incurred or made by the Guarantee Trustee in accordance with any provision of this Guarantee Agreement (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or bad faith; and (c) to indemnify the Guarantee Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence, willful misconduct or bad faith on the part of the Guarantee Trustee, arising out of or in connection with the acceptance or administration of this Guarantee Agreement, including the

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costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder.

     The Guarantee Trustee will not claim or exact any lien or charge on any Guarantee Payments as a result of any amount due to it under this Guarantee Agreement.

     The provisions of this Section 3.3 shall survive the termination of this Guarantee Agreement or the resignation or removal of the Guarantee Trustee.

ARTICLE IV

GUARANTEE TRUSTEE

     SECTION 4.1. Guarantee Trustee; Eligibility.

     (a) There shall at all times be a Guarantee Trustee which shall:

     (i) not be an Affiliate of the Guarantor; and

     (ii) be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at least $50,000,000, and shall be a corporation meeting the requirements of Section 310(a) of the Trust Indenture Act. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of its supervising or examining authority, then, for the purposes of this Section 4.1 and to the extent permitted by the Trust Indenture Act, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.

     (b) If at any time the Guarantee Trustee shall cease to be eligible to so act under Section 4.1(a), the Guarantee Trustee shall immediately resign in the manner and with the effect set out in Section 4.2.

     (c) If the Guarantee Trustee has or shall acquire any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee and Guarantor shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.

     SECTION 4.2. Appointment, Removal and Resignation of the Guarantee Trustee.

     (a) Subject to Section 4.2(c), the Guarantee Trustee may be appointed or removed at any time by the action of the Holders of a Majority in Liquidation Amount of the Trust Securities delivered to the Guarantee Trustee and the Guarantor (i) for cause or (ii) if a Debenture Event of Default (as defined in the Trust Agreement) shall have occurred and be continuing at any time.

     (b) Subject to Section 4.2(c), the Guarantee Trustee may resign from office (without need for prior or subsequent accounting) by giving written notice thereof to the Holders and the Guarantor and by appointing a successor Guarantee Trustee. The Guarantee Trustee shall appoint a successor by requesting from at least three Persons meeting the requirements of Section 4.1(a) their expenses and charges to serve as the Guarantee Trustee, and selecting the Person who agrees to the lowest expenses and charges.

     (c) The Guarantee Trustee appointed hereunder shall hold office until a Successor Guarantee Trustee shall have been appointed and shall have accepted such appointment. No removal or resignation of a Guarantee Trustee shall be effective until a Successor Guarantee Trustee has been

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appointed and has accepted such appointment by written instrument executed by such Successor Guarantee Trustee and delivered to the Guarantor and, in the case of any resignation, the resigning Guarantee Trustee.

     (d) If no Successor Guarantee Trustee shall have been appointed and accepted appointment as provided in this Section 4.2 within 60 days after delivery to the Holders and the Guarantor of a notice of resignation, the resigning Guarantee Trustee may petition, at the expense of the Guarantor, any court of competent jurisdiction for appointment of a Successor Guarantee Trustee. Such court may thereupon, after prescribing such notice, if any, as it may deem proper, appoint a Successor Guarantee Trustee.

     (e) If a resigning Guarantee Trustee shall fail to appoint a successor, or if a Guarantee Trustee shall be removed or become incapable of acting as Guarantee Trustee and a replacement shall not be appointed prior to such resignation or removal, or if a vacancy shall occur in the office of Guarantee Trustee for any cause, the Holders of the Trust Securities, by the action of the Holders of record of not less than 25% in aggregate Liquidation Amount (as defined in the Trust Agreement) of the Trust Securities then Outstanding (as defined in the Trust Agreement) delivered to such Guarantee Trustee, may appoint a Successor Guarantee Trustee or Trustees.

     If no successor Guarantee Trustee shall have been so appointed by the Holders of the Trust Securities and accepted appointment, any Holder, on behalf of such Holder and all others similarly situated, or any other Guarantee Trustee, may petition any court of competent jurisdiction for the appointment of a successor Guarantee Trustee.

ARTICLE V

GUARANTEE

     SECTION 5.1. Guarantee.

     The Guarantor irrevocably and unconditionally agrees to pay in full to the Holders the Guarantee Payments (without duplication of amounts theretofore paid by or on behalf of the Issuer Trust), as and when due, regardless of any defense, right of set-off or counterclaim that the Issuer Trust may have or assert, except the defense of payment. The Guarantor’s obligation to make a Guarantee Payment may be satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing the Issuer Trust to pay such amounts to the Holders.

     SECTION 5.2. Waiver of Notice and Demand.

     The Guarantor hereby waives notice of acceptance of this Guarantee Agreement and of any liability to which it applies or may apply, presentment, demand for payment, any right to require a proceeding first against the Guarantee Trustee, the Issuer Trust or any other Person before proceeding against the Guarantor, protest, notice of nonpayment, notice of dishonor, notice of redemption and all other notices and demands.

     SECTION 5.3. Obligations Not Affected.

     The obligations, covenants, agreements and duties of the Guarantor under this Guarantee Agreement shall in no way be affected or impaired by reason of the happening from time to time of any of the following:

10

     (a) the release or waiver, by operation of law or otherwise, of the performance or observance by the Issuer Trust of any express or implied agreement, covenant, term or condition relating to the Trust Securities to be performed or observed by the Issuer Trust;

     (b) the extension of time for the payment by the Issuer Trust of all or any portion of the Distributions (other than an extension of time for payment of Distributions that results from the extension of any interest payment period on the Debentures as provided in the Indenture), Redemption Price, Liquidation Distribution or any other sums payable under the terms of the Trust Securities or the extension of time for the performance of any other obligation under, arising out of, or in connection with, the Trust Securities;

     (c) any failure, omission, delay or lack of diligence on the part of the Holders to enforce, assert or exercise any right, privilege, power or remedy conferred on the Holders pursuant to the terms of the Trust Securities, or any action on the part of the Issuer Trust granting indulgence or extension of any kind;

     (d) the voluntary or involuntary liquidation, dissolution, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the Issuer Trust or any of the assets of the Issuer Trust;

(e) any invalidity of, or defect or deficiency in, the Trust Securities;

     (f) the settlement or compromise of any obligation guaranteed hereby or hereby incurred; or

     (g) any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a guarantor (other than payment of the underlying obligation), it being the intent of this Section 5.3 that the obligations of the Guarantor hereunder shall be absolute and unconditional under any and all circumstances.

     There shall be no obligation of the Holders to give notice to, or obtain the consent of, the Guarantor with respect to the happening of any of the foregoing.

     SECTION 5.4. Rights of Holders.

     The Guarantor expressly acknowledges that: (i) this Guarantee Agreement will be deposited with the Guarantee Trustee to be held for the benefit of the Holders; (ii) the Guarantee Trustee has the right to enforce this Guarantee Agreement on behalf of the Holders; (iii) the Holders of a Majority in Liquidation Amount of the Trust Securities have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Guarantee Trustee in respect of this Guarantee Agreement or exercising any trust or power conferred upon the Guarantee Trustee under this Guarantee Agreement; and (iv) any Holder may institute a legal proceeding directly against the Guarantor to enforce its rights under this Guarantee Agreement without first instituting a legal proceeding against the Guarantee Trustee, the Issuer Trust or any other Person.

     SECTION 5.5. Guarantee of Payment.

     This Guarantee Agreement creates a guarantee of payment and not of collection. This Guarantee Agreement will not be discharged except by payment of the Guarantee Payments in full (without

11

duplication of amounts theretofore paid by the Issuer Trust) or upon the distribution of Debentures to Holders as provided in the Trust Agreement.

     SECTION 5.6. Subrogation.

     The Guarantor shall be subrogated to all rights (if any) of the Holders against the Issuer Trust in respect of any amounts paid to the Holders by the Guarantor under this Guarantee Agreement; provided, however, that the Guarantor shall not (except to the extent required by mandatory provisions of law) be entitled to enforce or exercise any rights which it may acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of payment under this Guarantee Agreement, if, at the time of any such payment, any amounts are due and unpaid under this Guarantee Agreement. If any amount shall be paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold such amount in trust for the Holders and to pay over such amount to the Holders.

     SECTION 5.7. Independent Obligations.

     The Guarantor acknowledges that its obligations hereunder are independent of the obligations of the Issuer Trust with respect to the Trust Securities and that the Guarantor shall be liable as principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this Guarantee Agreement notwithstanding the occurrence of any event referred to in subsections (a) through (g), inclusive, of Section 5.3 hereof.

ARTICLE VI

COVENANTS AND SUBORDINATION

     SECTION 6.1. Subordination.

     The obligations of the Guarantor under this Guarantee Agreement will constitute unsecured obligations of the Guarantor and will rank subordinate and junior in right of payment to all Senior Indebtedness (as defined in the Indenture) of the Guarantor to the extent and in the manner set forth in the Indenture with respect to the Debentures, and the provisions of Article XIII of the Indenture will apply, mutatis mutandis, to the obligations of the Guarantor hereunder. The obligations of the Guarantor hereunder do not constitute Senior Indebtedness (as defined in the Indenture) of the Guarantor.

     SECTION 6.2. Pari Passu Guarantees.

     The obligations of the Guarantor under this Guarantee Agreement shall rank pari passu with the obligations of the Guarantor under (i) any similar guarantee agreements issued by the Guarantor on behalf of the holders of preferred or capital securities issued by any Issuer Trust (as defined in the Indenture), (ii) the Indenture and the Securities (as defined in the Indenture) issued thereunder; (iii) Section 4.6 of the Trust Agreement and any similar expense agreements entered into by the Guarantor in connection with the offering of Trust Securities (as defined in the Indenture) by any Issuer Trust (as defined in the Indenture), and (iv) any other security, guarantee or other agreement or obligation that is expressly stated to rank pari passu with the obligations of the Guarantor under this Guarantee Agreement or with any obligation that ranks pari passu with the obligations of the Guarantor under this Guarantee Agreement.

12

ARTICLE VII

TERMINATION

     SECTION 7.1. Termination.

     This Guarantee Agreement shall terminate and be of no further force and effect upon (i) full payment of the Redemption Price (as defined in the Trust Agreement) of all Trust Securities, (ii) the distribution of Debentures to the Holders in exchange for all of the Trust Securities or (iii) full payment of the amounts payable in accordance with Article IX of the Trust Agreement upon liquidation of the Issuer Trust. Notwithstanding the foregoing, this Guarantee Agreement will continue to be effective or will be reinstated, as the case may be, if at any time any Holder is required to repay any sums paid with respect to Trust Securities or this Guarantee Agreement.

ARTICLE VIII

MISCELLANEOUS

     SECTION 8.1. Successors and Assigns.

     All guarantees and agreements contained in this Guarantee Agreement shall bind the successors, assigns, receivers, trustees and representatives of the Guarantor and shall inure to the benefit of the Holders of the Trust Securities then outstanding. Except in connection with a consolidation, merger or sale involving the Guarantor that is permitted under Article VIII of the Indenture and pursuant to which the successor or assignee agrees in writing to perform the Guarantor’s obligations hereunder, the Guarantor shall not assign its obligations hereunder, and any purported assignment other than in accordance with this provision shall be void.

     SECTION 8.2. Amendments.

     Except with respect to any changes that do not adversely affect the rights of the Holders in any material respect (in which case no consent of the Holders will be required), this Guarantee Agreement may only be amended with the prior approval of the Holders of not less than a Majority in Liquidation Amount of the Trust Securities. The provisions of Article VI of the Trust Agreement concerning meetings of the Holders shall apply to the giving of such approval.

     SECTION 8.3. Notices.

     Any notice, request or other communication required or permitted to be given hereunder shall be in writing, duly signed by the party giving such notice, and delivered, telecopied or mailed by first class mail as follows:

     (a) if given to the Guarantor, to the address or telecopy number set forth below or such other address or telecopy number as the Guarantor may give notice to the Guarantee Trustee and the Holders:

          BB&T Corporation 

          200 West Second Street, 

          Winston-Salem, North Carolina 27101, 

          Attention: Secretary Telecopy: 336-733-2189

13

     (b) if given to the Guarantee Trustee, at the Issuer Trust’s address or telecopy number set forth below or such other address or telecopy number as the Guarantee Trustee may give notice to the Guarantor and Holders:

          U.S. Bank National Association One Federal Street, 

          3rd Floor, Boston, Massachusetts 02110, 

          Attn: Corporate Trust Services Telecopy: 617-603-6683

          with a copy to:

          BB&T Capital Trust VIII c/o BB&T Corporation

          200 West Second Street, 

           Winston-Salem, North Carolina 27101, 

          Attention: Secretary Telecopy: 336-733-2189

     (c) if given to any Holder, at the address set forth on the books and records of the Issuer Trust.

     All notices hereunder shall be deemed to have been given when received in person, telecopied with receipt confirmed, or mailed by first class mail, postage prepaid, except that if a notice or other document is refused delivery or cannot be delivered because of a changed address of which no notice was given, such notice or other document shall be deemed to have been delivered on the date of such refusal or inability to deliver.

     SECTION 8.4. Benefit.

     This Guarantee Agreement is solely for the benefit of the Holders and is not separately transferable from the Trust Securities.

     SECTION 8.5. Governing Law.

     THIS GUARANTEE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     SECTION 8.6. Counterparts.

     This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.

[Remainder of page intentionally left blank.]

14

     IN WITNESS WHEREOF, the parties hereto have executed this Guarantee Agreement as of the day and year first above written.

	BB&T CORPORATION,
	as Guarantor
	 
	 
	By:
	Name:
	Title:
	 
	 
	 
	U.S. BANK NATIONAL ASSOCIATION,
	as Guarantee Trustee
	 
	 
	By:
	Name:
	Title:agreementwithsdonnelly.htm

    
      Exhibit
10.1

      

    

     

    

    

    
      	
              Lewis
      B. Campbell

              Chairman,
      President and Chief Executive Officer

              Textron
      Inc.

               

            	
              40
      Westminster St.

              Providence,
      RI 02903

              Tel:
      (401) 457-2322

              Fax:
      (401) 457-3682

              lcampbell@textron.com

            

    

     

    
 

    June 26, 2008

    

    Scott C. Donnelly

    6450
Given Road

    Cincinnati,
Ohio 45243

    

    Dear
Scott:

    

    I am
pleased to offer you the position of Executive Vice President and Chief
Operating Officer of Textron Inc., reporting directly to me.  The
Board and I believe you have the personal and professional qualifications to
make significant contributions to the continued success of Textron and that you
will be an excellent leader of the organization as we address the challenges and
opportunities facing us.

    

    As
Executive Vice President and Chief Operating Officer, you 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 Textron’s By-laws and its organizational
structure.

    

    The main
features of your compensation package, as approved by the Organization and
Compensation Committee of the Board, are summarized below:

     

    
      	
              ·  

            	
              Base
      salary of $850,000 per year.

            

    

     

    
      	
              ·  

            	
              An
      annual incentive award for 2008 (payable in March 2009) under Textron’s
      annual incentive plan, in an amount determined by the Organization and
      Compensation Committee by applying the 2008 performance goals and award
      levels for executive officers to your base salary on a non-prorated basis;
      but in no event shall your annual incentive award for 2008 be less than
      $1,320,000.

            

    

     

    
      	
              ·  

            	
              Target
      awards under Textron’s annual incentive plan for 2009 and subsequent years
      having a “target” value of at least 90% of base salary, payable upon the
      attainment of any performance goals established for the year by the
      Organization and Compensation Committee.  Actual payouts may
      vary from zero to 200% of your target award each year based on the
      Organization and Compensation Committee’s determination that Textron has
      attained these performance goals.  Payouts are made within the
      first 21⁄2 months after the end of the performance
  period.

            

    

     

    
      	
              ·  

            	
              A
      long-term incentive award for 2009 with a value of $3,500,000, and
      long-term incentive awards for subsequent years as determined by the
      Organization and Compensation Committee as part of its review of senior
      management compensation.  Long-term incentive awards will
      consist of performance shares or performance share units, restricted stock
      or restricted stock units, stock options, or other equity awards in
      proportions and subject to vesting requirements and other terms and
      conditions determined by the Organization and Compensation
      Committee.  Each component of your 2009 award will be in the
      same proportions as awarded to me.  At present, awards of
      restricted stock and restricted stock units include dividend equivalents
      paid currently in cash.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
          Scott C.
Donnelly

          June 26,
2008

          Page
2

        

      

    

     

    
      	
              ·  

            	
              Effective
      on the later of July 1, 2008, and three business days after your first day
      of employment with Textron, three pro-rata awards of performance share
      units for the award cycles ending in 2008, 2009, and 2010, based on the
      time remaining within each performance cycle, with a combined value of
      $2,100,000.  The performance share units will be payable upon
      the achievement of any performance goals established for the award cycle
      by the Organization and Compensation Committee.  The award for
      2008 also will be subject to a requirement that you not voluntarily
      terminate your employment with Textron before the first anniversary of the
      grant date, and will be payable after you satisfy this minimum vesting
      requirement.  This minimum vesting requirement is mandated by
      Textron’s 2007 Long-Term Incentive Plan (LTIP), as approved by
      shareholders.

            

    

     

    
      	
              ·  

            	
              Effective
      on the later of July 1, 2008, and three business days after your first day
      of employment with Textron, an initial award of nonqualified stock options
      with a value of $2,510,000 (determined using standard Towers Perrin
      methodology), having a 10-year term and an exercise price equal to the
      fair market value of Textron stock on the grant date, and to become
      exercisable 20% on first business day of the month on or after the
      anniversary of the grant date in each year from 2010 through 2014,
      provided that you are still employed by Textron on each vesting
      date.  Because the 2007 LTIP limits annual individual grants to
      200,000 stock options in any year, your stock option grant will be for a
      maximum of 200,000 shares.  Any additional amount necessary to
      reach the $2,510,000 target value will be paid in cash within 30 days
      after your first day of employment with
Textron.

            

    

     

    
      	
              ·  

            	
              A
      nonqualified pension benefit determined using the benefit formula under
      the Textron Master Retirement Plan (but without regard to the limits on
      compensation and benefits imposed by the Internal Revenue Code), taking
      into account your service with both General Electric and Textron, and
      using the definition of pensionable compensation and final average
      compensation in the Textron Spillover Pension Plan.  This
      nonqualified pension benefit will become 100% vested upon the earlier of
      your completion of ten years of service with Textron and your attainment
      of age 62 while employed by Textron, and will be reduced by the combined
      value of any benefit you are eligible to receive under (1) a tax-qualified
      defined benefit plan maintained by General Electric, (2) a tax-qualified
      defined benefit plan maintained by Textron (before any reduction in your
      tax-qualified defined benefit to reflect an offset for your account under
      the Textron Retirement Account Plan), and (3) the Textron Spillover
      Pension Plan (or any successor nonqualified defined benefit plan
      maintained by Textron).  The forms of payment and other terms of
      your nonqualified pension benefit will be as determined by the Board and
      reflected in a separate document or an appendix to the Textron Spillover
      Pension Plan.

            

    

     

    
      	
              ·  

            	
              Eligibility
      to participate in the Deferred Income Plan for Textron Executives, or any
      successor elective deferred compensation plan offered to Textron’s senior
      executives.  You would participate in the Deferred Income Plan
      as a “Schedule A” participant, which is the participation level that
      applies to Textron’s other senior executives.  The Deferred
      Income Plan currently provides a matching contribution equal to 10% of any
      elective deferred income (not including deferrals of base salary) that a
      Schedule A participant allocates to the Textron stock unit account in the
      plan.  You would be eligible to receive this matching
      contribution to the same extent as other Schedule A
      participants.

            

    

     

    
      	
              ·  

            	
              Eligibility
      to participate in Textron’s health, disability, life insurance, annual
      physical, and other welfare benefit programs at the same level as
      Textron’s other senior executives.

            

    

     

    
      	
              ·  

            	
              Eligibility
      for four weeks of paid vacation, and for relocation benefits consistent
      with (and subject to the same tax treatment as) the benefits under
      Textron’s relocation policy for senior
  executives.

            

    

     

    In
recognition of the substantial long-term incentive awards you will forfeit when
you leave your current position with General Electric, the Organization and
Compensation Committee has approved the following in addition to the
compensation described above:

     

    
      	
              ·  

            	
              A
      cash payment of $4,100,000, payable in two installments.  The
      first installment of $2,100,000 is to be paid no later than September 30,
      2008.  The remaining balance
of

            

    

     

    
      
        
           

        

        
          
            

          

        

        
          
            Scott C.
Donnelly

            June 26,
2008

            Page
3  

          

        

      

    

    
       

      
        	
                 

              	
                $2,000,000
      is to be paid no later than February 28, 2009, provided that you are still
      employed by Textron on December 31,
2008.

              

      

       

    

    
      	
              ·  

            	
              Effective
      on the later of July 1, 2008, and three business days after your first day
      of employment with Textron, an award of restricted stock units with a
      value of $7,500,000, with 75% of the units vesting ratably on the first
      business day of the month on or after the anniversary of the grant date in
      each of 2009, 2010, and 2011, and with the remaining 25% of the units
      vesting ratably on the first business day of the month on or after the
      anniversary of the grant date in each of 2012, 2013, and 2016; provided
      that you are, in each case, still employed by Textron on the vesting
      date.  The award will be paid to you in shares of Textron stock
      within 21⁄2 months after the restricted stock units vest.  You
      will be eligible to receive dividend equivalents paid currently in cash on
      the entire award.

            

    

     

    All
equity awards described in this letter will be made under the Textron Inc. 2007
Long-Term Incentive Plan (or under a successor plan), and will be subject to the
terms and conditions of the plan and award agreement under which they are
granted.  Where the letter specifies a value for an award, the number
of shares (or equivalent cash) necessary to provide the specified value will be
determined by Towers Perrin, the independent compensation consultant to the
Organization and Compensation Committee (or any successor independent
compensation consultant to the Committee), using its standard methodology for
valuing equity awards.

    

    I am
confident that you will have a long and successful career with
Textron.  However, in the event that Textron should terminate your
employment involuntarily (without Cause), or in the event that you should
terminate for Good Reason, you would be entitled to the separation benefits
described in Appendix
A, which are the same as the separation benefits provided under my
employment agreement on the date of this letter.

    

    For
purposes of this letter, including determining your entitlement to separation
benefits, the terms “Cause,” “Good Reason,” and “Change in Control” have the
meanings set forth in Appendix
B.  All separation benefits (other than those required by law
or vested before your separation) will be subject to your signing a release of
claims reasonably acceptable to Textron, an agreement to cooperate in any
proceedings relating to matters in which you were involved before your
separation, and an agreement to abide by the same covenants (non-competition,
non-solicitation, maintaining confidentiality, etc.) that appear in my
employment agreement on the date of this letter.

    

    You will
be covered by the indemnification provisions of Textron’s By-Laws to the same
extent as Textron’s other senior officers.  Textron will cover you
under directors and officers liability insurance for bona fide claims based on
your actions or failure to act in your capacity as a Textron officer in the same
amount and to the same extent as Textron covers its other officers and
directors.

    

    If you
accept this offer of employment with Textron, Textron agrees to pay your
reasonable legal fees and costs (before tax) associated with your reviewing the
terms of this offer.

    

    All of
the payments and benefits described in this letter are subject to applicable tax
withholding, to the terms and conditions of the Textron plans under which they
are provided (as amended from time to time), and to the requirements of
applicable law.  The dollar amounts and values described in this
letter are gross amounts, before any applicable tax or tax
withholding.

    

    This
offer of at-will employment is subject to Textron’s normal pre-employment
requirements, which include verification of employment and a mandatory drug
test.  The terms of the offer will be governed by the laws of
Delaware.  This offer remains in effect until August 1, 2008. We
anticipate that you will start work on or before August 1, 2008.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
          Scott C.
Donnelly

          June 26,
2008

          Page
4

        

      

    

    

    I am
pleased to offer you this opportunity to join the Textron team and look forward
to hearing from you soon.  I assure you of a very warm welcome to
Textron.

    

    Sincerely,

    

    

    
      	/s/
      Lewis B. Campbell	 
      	
              Date:

            	 
      June 30, 2008
	
              Lewis
      B. Campbell

            	 
      	 
      	 
      

    

    

    I have
read the foregoing offer of at-will employment.  I understand that
this offer is the complete agreement between me and Textron concerning the terms
of my employment, and that it replaces any prior agreements or understandings
between me and Textron or offers or promises made by Textron.  I agree
with, and accept, this offer of employment subject to the terms and conditions
detailed in this letter and the attachments.

    

    

    
      	
              Signed:

            	/s/
      Scott C. Donnelly	 
      	
              Date:

            	 
      June 26, 2008
	 
      	
              Scott
      C. Donnelly

            	 
      	 
      	 
      

    

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
 

    APPENDIX
A

     

    SEPARATION
BENEFITS

    

    The
separation benefits referred to in your offer letter are listed in this
appendix.  “Regular Separation Benefits” are available if your
involuntary termination (not for Cause) or termination for Good Reason occurs at
any time other than the Change in Control period described in the following
sentence.  “Change in Control Separation Benefits” are available if
your involuntary termination (not for Cause) or termination for Good Reason
occurs during the period beginning within 180 days before a Change in Control
and ending on the second anniversary of the Change in Control.  In all
cases, your “separation” means your separation from service within the meaning
of section 409A of the Internal Revenue Code.

    

    All of
your separation benefits shall be paid at the time and in the form specified for
the corresponding benefit in the employment agreement between Textron Inc. and
Lewis B. Campbell dated February 26, 2008, which is the version of my employment
agreement in effect on the date of this letter.

    

    You are
not entitled to receive the separation benefits described in this appendix upon
your death while employed by Textron, your total disability, or your voluntary
or mandatory retirement at or after reaching age 65.  If your
termination occurs for any of these reasons, Textron will pay you (or your
designated beneficiary in the event of your death) any compensation you have
earned but have not yet received at the time of your death, disability, or
retirement, in accordance with Textron’s normal payroll practices and the terms
of any benefit plan or program in which you participate.

    

    In
addition to the separation benefits summarized below, in the event that you
become entitled to payments or benefits that would constitute “parachute
payments” within the meaning of section 280G(b)(2) of the Internal Revenue Code,
and the value of the parachute payments exceeds 110% of an amount equal to 2.99
times your “base amount” (within the meaning of section 280G(b)(3) of the
Internal Revenue Code), you will be entitled to a gross up of any excise tax
imposed by section 4999 of the Internal Revenue Code on your parachute payments
(and any excise, income, or payroll tax imposed on the initial gross-up
payment), calculated and paid as provided in Exhibit A of my employment
agreement as in effect on the date of this letter.  If the value of
your parachute payments does not exceed 110% of an amount equal to 2.99 times
your “base amount,” your parachute payments will be reduced so that they are
equal to 2.99 times your “base amount,” as provided in Exhibit A of my
employment agreement as in effect on the date of this letter.

    

    
      	
              Regular
      Separation
      Benefits

            	
              Change
      in Control Separation Benefits

            
	
              Accrued
      obligations

              Compensation
      previously earned but not yet paid, such as unpaid base salary, unpaid
      amount of previous year’s annual incentive compensation, and amounts
      accrued and vested under other benefit plans and programs.

            	
              Accrued
      obligations

              Compensation
      previously earned but not yet paid, such as unpaid base salary, unpaid
      amount of previous year’s annual incentive compensation, and amounts
      accrued and vested under other benefit plans and programs.

               

            

    

    

     

     

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                Regular
      Separation
      Benefits

              	
                Change
      in Control Separation
      Benefits

              
	
                Pro-rata bonus

                A
      pro-rata portion (based on days employed in the bonus year divided by 365)
      of the annual bonus for the year of separation (to the extent that
      applicable corporate performance goals are achieved).

              	
                Pro-rata
      bonus

                A
      pro-rata portion (based on days employed in the bonus year divided by 365)
      of the greater of (1) your target annual incentive compensation for the
      year of separation and (2) your actual incentive compensation award for
      the year ending before the earlier of your separation and the change in
      control.

                 

              
	
                Severance
      pay

                Severance
      pay equal to two times the sum of (1) your annual base salary and (2) the
      greater of (a) your target annual incentive compensation for the year of
      your separation and (b) the average of your actual incentive compensation
      awards for the three most recent years.

              	
                Severance
      pay

                Severance
      pay equal to three times the sum of (1) your highest base salary in effect
      at any time before your separation, and (2) the greater of (a) your target
      annual incentive compensation for the year of your separation and (b) the
      average of your actual incentive compensation awards for the three years
      ending before the earlier of your separation and the change in
      control.

                 

              
	
                Insurance
      coverage

                To
      the extent eligible at separation, continued participation, at no greater
      cost (before tax) than you paid as an employee, in Textron’s accidental
      death and dismemberment coverage and dependent life insurance
      coverage.

                 

                Reimbursement
      for the cost (before tax) of purchasing the level of company-paid term
      life insurance and long-term disability insurance coverage you received at
      your separation.

                 

                The
      continued insurance coverage or reimbursement described in this section
      will end two years after your separation (or, if earlier, when you become
      eligible for comparable or better benefits under the plan of a successor
      employer).

              	
                Insurance coverage

                To
      the extent eligible at your separation or the change in control, continued
      participation, at no greater cost (before tax) than you paid as an
      employee, in Textron’s accidental death and dismemberment coverage and
      dependent life insurance coverage.

                 

                Reimbursement
      for the cost (before tax) of purchasing the level of company-paid term
      life insurance and long-term disability insurance coverage you received at
      the earlier of your separation and the change in control.

                 

                The
      continued insurance coverage or reimbursement described in this section
      will end three years after your separation (or, if earlier, when you
      become eligible for comparable or better benefits under the plan of a
      successor employer).

                 

              
	
                Additional
      pension
      credit

                21⁄2
      additional years of age, service, and compensation credit for benefit
      computation purposes, and 21⁄2 additional years of age credit for purposes
      of determining eligibility to receive benefits, under any nonqualified
      defined benefit pension plan in which you participate at your
      separation.

                 

              	
                Additional pension credit

                Full
      vesting and 3 additional years of age, service, and compensation credit
      for benefit computation purposes under any nonqualified defined benefit
      pension plan in which you participate at your
  separation.

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        
          	
                   Regular
      Separation
      Benefits

                	
                   Change
      in Control Separation Benefits

                
	
                  Contribution replacement

                  2
      times the maximum annual Textron contribution or match to any defined
      contribution plan in which you participate at your
separation.

                   

                	
                  Contribution replacement

                  3
      times the maximum annual Textron contribution or match to any defined
      contribution plan in which you participate at your
    separation.

                
	
                  Stock
      option
      vesting

                  Immediate
      full vesting of any outstanding stock options that would have vested if
      you had remained employed for 2 years after your separation.

                   

                	
                  Equity
      award vesting

                  Immediate
      full vesting of any outstanding stock options, restricted stock units, and
      other equity awards.

                
	
                  Pro-rata
      payment of performance
      share units

                  Subject
      to the provisions of the 2007 LTIP or successor plan, a pro-rata portion
      (based on days employed in the performance period divided by total days in
      the performance period) of any performance share units outstanding at your
      separation (to the extent that applicable corporate performance goals are
      achieved). In determining the pro-rata portion of your initial performance
      share unit awards granted for the award cycles ending in 2008, 2009, and
      2010, the number of days constituting the performance period will be
      measured from the grant date to the last day of the applicable performance
      period.

                   

                	
                  Full
      payment of performance share
      units

                  Full
      vesting and payment of outstanding performance share units, based on
      actual performance through the change in control and assuming target
      performance after the change in control.

                
	
                  Vesting of deferred compensation

                  Immediate
      full vesting of your accounts under Textron’s Deferred Income
      Plan.

                	
                  Vesting
      of deferred
      compensation

                  [No
      provision in employment agreement. However, Textron’s Deferred Income Plan
      currently provides for full vesting upon a change in
control.]

                   

                
	 
      	
                  Outplacement services

                  Outplacement
      services at a level commensurate with your position, including office and
      secretary, for 1 year after your separation (or, if earlier, until you
      commence a new full-time job).

                   

                

        

         

        

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

    

    

    

    APPENDIX
B

     

    DEFINITIONS

     

    

    TERMINATION FOR
CAUSE

    

    The
executive may be terminated immediately upon written notice by Textron 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
letter: (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 Textron; (ii) any willful
misconduct by the executive with regard to Textron, its business, assets or
employees that has, or was intended to have, a material adverse impact (economic
or otherwise) on Textron; (iii) any material, willful and knowing violation by
the executive of (x) Textron's Business Conduct Guidelines, or (y) any of
his fiduciary duties to Textron which in either case has, or was intended to
have, a material adverse impact (economic or otherwise) on Textron; (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
Textron; (v) the executive's willful failure to attempt to perform his duties 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 Textron specifying the details
thereof; or (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)).  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
Textron.  Reference in this paragraph to Textron shall also include
direct and indirect subsidiaries of Textron, and materiality and material
adverse impact shall be measured based on the action or inaction and the impact
upon, and not the size of, Textron taken as a whole, provided that after a
change in control, the size of Textron, taken as a whole, shall be a relevant
factor in determining materiality and material adverse impact.

    

    TERMINATION FOR GOOD
REASON

    

    The
executive may terminate for Good Reason upon twenty (20) days written notice by
the executive to Textron 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 letter, 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
Textron while Textron is a subsidiary of another entity (holding stock in
Textron 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 Textron, failure to be nominated or
reelected as a director of Textron or removal as such; (ii) relocation of the
executive from the principal office of Textron (excluding reasonable travel on
Textron's business to an extent substantially consistent with 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    the
executive's business obligations) or relocation of the principal office of
Textron to a location which is at least fifty (50) miles from Textron'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 Textron in the executive's base
salary; (iv) a reduction in the executive's aggregate level of participation in
any of Textron'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 August 1, 2008, or, after a change in
control, participated immediately prior to the change in control; (v) the
failure of Textron to obtain and deliver to the executive a satisfactory written
agreement from any successor to Textron to assume and agree to perform the
obligations set forth in this letter; or (vi) any other material breach by
Textron of this letter.

    

    CHANGE IN
CONTROL

     

    A Change
in Control of Textron Inc. (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.

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