Document:

exhibittenfour.htm

    
      	
              Exhibit
      10.4

            

    

    

    SECOND
AMENDED AND RESTATED

    EMPLOYMENT
AGREEMENT

     

    THIS
SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT, is entered into as of this
26th day of February, 2008, by and between Textron Inc.  (the
"Company"), a Delaware corporation having its principal office at 40 Westminster
Street, Providence, Rhode Island 02903 and Mary L. Howell (the
"Executive").

     

    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;

     

    WHEREAS,
the Company and the Executive entered into an employment agreement as of July
23, 1998;

     

    WHEREAS,
the Company and the Executive entered into an amended and restated employment
agreement as of May 4, 2006; and

     

    WHEREAS,
the Company and the Executive desire to set forth the terms and conditions of
such continued employment in this Second Amended and Restated Employment
Agreement (the "Agreement").

     

    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 Executive Vice President -
Government and International of the Company or in such higher capacity as agreed
by the Company and the Executive.  The Executive shall report
exclusively to the Chief Executive Officer and 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 her
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 and the organizational structure of the Company.  The
Executive shall devote substantially all of her business time, attention and
energies to the performance of her duties hereunder, provided the foregoing will
not prevent the Executive from participating in charitable, community or
industry affairs, from managing her and her family's personal passive
investments, and (with the consent of the Chief Executive Officer or 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 her 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 her
      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 her position, provided that the
      minimum annual target award payable upon the achievement of reasonably
      attainable objective performance goals shall be at least fifty percent
      (50%) 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 her 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.  Notwithstanding anything in the
      SERP, Performance Share Units granted after 2005 shall not be considered
      when determining the benefit under the
SERP.

            

    

     

    
      	
              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 may use the Company’s aircraft for personal travel, including
      travel in which the Executive is accompanied by family or other persons
      traveling for non-business reasons.  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

            

    

     

    
      	
              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 her 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 of the year following the 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
      Internal Revenue Code of 1986, as amended (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 her 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 her 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 her to perform her duties hereunder and shall not be deemed a
      breach or default; and, so 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 her 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 or the Chief Executive Officer of the Cause event
      and has been approved by the O&C Committee at a meeting at which the
      Executive and her 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 her 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 her 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 her
      duties under Section 2 hereof or her 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 her 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 she was terminated without Cause as of her 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 (including but not limited to as a member of the
      Management Committee or any functional replacement therefor), reporting
      lines or a material reduction (other than temporarily while Disabled or
      otherwise incapacitated) in her then status, authorities, duties, or
      responsibilities 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 her 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.  The Executive waives as a Good Reason event the
      change in the SERP made by the last sentence of Section 3.4
      hereof.

            

    

     

    
      	
              (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.  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 her 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).  In addition, in the event the termination is as a
      result of Executive's death, the early retirement factor under Section
      2.03 of the SERP shall be one hundred percent (100%) and the age
      requirement in Section 2.05 of the SERP shall not apply and a death
      benefit shall be paid in accordance with such Section in all
      instances.

            

    

     

    
      	
              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)  

            	
              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 an amount equal
      to three hundred percent (300%) of the Executive's target annual incentive
      compensation award established for the fiscal year during which the
      Executive's termination occurs (the "Termination Year Target
      Bonus").

            

    

     

    
      	
              (b)  

            	
              Continued
      monthly payment for two and one half (21⁄2) years of an amount equal to the
      Executive's monthly Base Salary rate reduced by any disability benefits
      received by the Executive under the Company's long term disability plan
      for the corresponding period.  The monthly payments for the
      first six months following the Executive’s separation from service 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 payments
      shall commence on the first regular payroll date after the end of the
      sixth month following the Executive’s separation from
    service.

            

    

     

    
      	
              (c)  

            	
              Payments
      and benefits as set forth in Section 6.3(c)-(i)
  hereof.

            

    

     

    
      	
              (d)  

            	
              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.

            

    

     

    
      	
              (e)  

            	
              The
      Executive's early retirement factor under Section 2.03 of the Company's
      SERP shall be one hundred percent (100%) (i.e.  providing a
      fifty percent (50%) of Final Average Compensation benefit) under the
      Company's SERP, provided that the benefits payable under the SERP that are
      in excess of the benefits that the Executive would receive thereunder
      without such increased early retirement factor shall not commence to be
      paid until two and one half (2 1⁄2) years after the date of the termination
      of employment.

            

    

     

    
      	
              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 her 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 and one half (21⁄2) times the sum of: (i) the
      Executive's Base Salary, and (ii) the greater of: (x) the Termination Year
      Target Bonus, or (y) the Executive's highest annual incentive compensation
      award 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) time the Final Annual Compensation shall be calculated as equal
      monthly installments payable over a period of two and one half (21⁄2) 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 and
      one half (21⁄2) year period.

            

    

     

    
      	
              (c)  

            	
              Coverage
      under all applicable retiree health and other retiree welfare plans for
      the Executive and her 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 and one half
      (21⁄2) 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 (2 1⁄2) 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 (2 1⁄2) 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.  In addition, and notwithstanding the
      foregoing, with regard to the SERP the Executive's early retirement factor
      under Section 2.03 shall be one hundred percent (100%)
      (i.e.  providing a fifty percent (50%) of Final Average
      Compensation benefit) upon such termination of employment, provided that
      the benefits payable under the SERP that are in excess of the benefits
      that would be received thereunder without the increased early retirement
      factor provided for in this sentence shall not commence to be paid until
      two and one-half (2 1⁄2) years after such termination of employment and all
      benefits under the SERP (which have not yet then commenced to be paid)
      shall be paid at such time notwithstanding the proviso in the prior
      sentence.  "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 2008 (i.e.  any
      grant after the 2005 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 regard 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 and one
      half (21⁄2) 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
      and one half (21⁄2) years after such termination of employment as if the
      Executive had continued employment for such two and one half (21⁄2) 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.  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)  

            	
              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 her 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, Section 6.3, and Section 8.2 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 B, 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 (k),
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 21⁄2 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 highest 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 21⁄2 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 on such termination)
      without regard to any minimum age or service requirements.  For
      this purpose, such benefits shall be calculated with an early retirement
      factor under Section 2.03 of the SERP of one hundred percent (100%) and
      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 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, assuming
      performance at 130% of target levels for the full performance
      cycle.  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)  

            	
              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 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 her 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 she is receiving severance pay from the
      Company pursuant to Section 6.2(b) or Section 9.1 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 Chief
      Executive Officer or 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 her 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 her
      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 her possession or control) belonging to the
      Company.  Notwithstanding the foregoing, the Executive may
      retain her 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 her 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 her 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,
      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 her expenses as provided in Section
      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 Chief Executive Officer 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 her in the arbitration effective as
      of the date of the filing of the arbitration, subject to the Executive
      promptly refunding any amounts paid to her, paying the cost of any
      benefits provided to her and paying to the Company the profits in any
      stock option or other equity awards exercised or otherwise realized by her
      during the pendency of the arbitration which she 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 her obligations under this Agreement
      do not, and shall not, breach any agreement that obligates her to keep in
      confidence any trade secrets or confidential or proprietary information of
      her 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/Mary L. Howell
________________

    Mary L.
Howell

    

    

    

    TEXTRON
INC.

    

    

    

    By:   /s/Lewis B.
Campbell_________

    Name: Lewis B. Campbell

    Title: Chairman, President and
CEO

    
      
        
          -  -

        

         

      

      
         

        
          

        

      

      
         

      

    

    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.

     

    
      
        
          -  -

        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    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:

    

    
      
        
          -  -exhibittenfive.htm

    
      	
              Exhibit
      10.5

            

    

    

    SECOND
AMENDED AND RESTATED

    EMPLOYMENT
AGREEMENT

     

    THIS
SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT is entered into as of this 26th
day of February, 2008, by and between Textron Inc. (the "Company"), a Delaware
corporation having its principal office at 40 Westminster Street, Providence,
Rhode Island 02903 and Terrence O'Donnell (the "Executive").

     

    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;

     

    WHEREAS,
the Company and the Executive entered into an employment agreement as of March
10, 2000;

     

    WHEREAS,
the Company and the Executive entered into an amended and restated employment
agreement as of May 4, 2006; and

     

    WHEREAS,
the Company and the Executive desire to set forth the terms and conditions of
such continued employment in this Second Amended and Restated Employment
Agreement (the "Agreement").

     

    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 such continued employment, in accordance with the terms and
conditions set forth herein, for a term (the "Employment Term") that commenced
on March 10, 2000 (the "Effective Date") and terminating, unless otherwise
terminated earlier in accordance with Section 5 hereof, on the next anniversary
of March 10, 2008, 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 Executive Vice President
and General Counsel of the Company or in such higher capacity as agreed by the
Company and the Executive. The Executive shall also serve as a member of the
Management Committee (or any equivalent committee or group as may replace the
Management Committee from time to time). The Executive shall report exclusively
to the Chief Executive Officer and 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 and the organizational structure of the
Company. Except as provided in the next succeeding sentence, 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 Chief Executive Officer or 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. In particular, Executive
(a) may continue to serve as a part-time partner at Williams & Connolly
LLP, and (b) may serve on the board of directors of each of (i) The
Gerald R. Ford Foundation, (ii) the Air Force Academy Falcon Foundation,
(iii) IGI, Inc. and (iv) ePlus, Inc., in each case retaining any compensation or
emoluments therefrom.

     

     

    
      	
              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 an initial base salary (the "Base
Salary") at a rate of $425,000.00. 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 by the O&C Committee (or as
otherwise designated by the Board) 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 55% 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.

     

    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.
Notwithstanding anything in the SERP, Performance Share Units granted after 2005
shall not be considered when determining the benefit under the
SERP.

     

    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 may use the Company’s aircraft for personal travel, including travel
in which the Executive is accompanied by family or other persons traveling for
non-business reasons.  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 Special
Provisions. The Company shall provide to the Executive the special provisions
set forth on Amended and Restated Exhibit B hereto, which Amended and Restated
Exhibit B is incorporated herein.

     

     

    
      	
              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 of the year following the 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
      Internal Revenue Code of 1986, as amended (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.  If the
      Executive’s employment is terminated for Disability before the date on
      which the Executive becomes eligible for payments pursuant to the
      Company’s disability benefits program, the Executive shall receive a
      lump-sum payment, on the first regular payroll date after the end of the
      six-month period following the Executive’s termination, equal to the
      additional Base Salary the Executive would have earned between his
      termination date and the date of his eligibility for disability benefits
      if he had remained employed during that
period.

            

    

     

    
      	
              (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 or the Chief Executive Officer of the Cause event
      and has been approved by the O&C Committee 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 that with respect to such
      vicarious liability 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 (including membership on the Management Committee or its
      equivalent) or reporting lines or a material reduction (other than
      temporarily while Disabled or otherwise incapacitated) in his then status,
      authorities, duties or responsibilities (or, should the Company be
      reorganized such that it becomes a subsidiary or controlled party of any
      other entity, the Executive's not holding authorities, duties,
      responsibilities, status, offices, titles or reporting lines in such
      parent or controlling party at least commensurate with those held by him
      at the Company immediately prior to such reorganization) 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
      but shall not cover a relocation to the principal office prior to a Change
      in Control; (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.  The Executive waives as a Good Reason event the
      change in the determination of his SERP benefits made by the last sentence
      of Section 3.4 and the last sentence of Section 4(a) of Amended and
      Restated Exhibit B attached
hereto.

            

    

     

    
      	
              (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. 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).

     

    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 (but subject to the last sentence of such Section
5(b)), to any Accrued Obligations.

     

    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 the Prorated Portion (as determined in the
      next sentence) of the earned annual incentive compensation award for the
      fiscal year in which the Executive's termination occurs, payable promptly
      after the end of such fiscal year. "Prorated Portion" 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
    365.

            

    

     

    
      	
              (b)  

            	
              An
      amount equal to two times the sum of (i) the Executive's Base Salary and
      (ii) the higher of (x) the Executive's target incentive compensation
      established for the fiscal year in which the Executive's termination
      occurs or (y) a multiple thereof equal to the product of such target
      amount and the multiple of target earned by the Executive for the prior
      fiscal year (whether or not deferred) (the sum of (i) and (ii) being
      hereinafter referred to as the "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 half (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 year
      period.

            

    

     

    
      	
              (c)  

            	
              Payment
      of the premium for COBRA continuation health coverage (whether under the
      Company's health plans or those of Williams & Connolly LLP, but in no
      event at a premium rate higher than the premiums payable under COBRA to
      the Company for the continuation of such health care coverage as the
      Executive had in effect with respect to himself and his family immediately
      prior to his termination) for the Executive and the Executive's dependents
      until the earliest of (i) eighteen (18) months after such termination,
      (ii) until no longer eligible for COBRA continuation benefit coverage or
      (iii) the Executive commences other substantially full-time
      employment.

            

    

     

    
      	
              (d)  

            	
              Payment,
      on the first regular payroll date after the end of the six-month period
      following the Executive’s termination, of a lump sum amount equal to the
      present discounted value of any "Credit Date Payments" (as described in
      Section 9 of Amended and Restated Exhibit B) then remaining unpaid, with
      the amount of each such unpaid Credit Date Payment being discounted back
      to the date of payment under this Section 6.3(d) at a discount rate of
      5.65% per annum.

            

    

     

    
      	
              (e)  

            	
              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 6.3 or Section 8.2 beyond any Accrued Obligations and 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 the last sentence of
      Section 8.2(i), the equity award shall not vest pursuant to 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 of the greater of: (i)
      the Executive's target annual incentive compensation award established for
      the fiscal year during which the Executive's award termination occurs, or
      (ii) the Executive's earned annual incentive award for the fiscal year
      prior to the fiscal year in which the Change in Control occurs (whether or
      not deferred).

            

    

     

    
      	
              (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 highest annual incentive compensation earned over the three
      (3) fiscal years ending prior to the Change in Control (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, 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 Employees, 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 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 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 actuarial present value but not the commencement date for calculation
      of benefits (all of which shall be deemed to commence on the date of
      termination)), compensation (the Executive's "Then Compensation Level")
      and service credits shall be added). "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 2008
      (i.e. any grant after the 2005 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 regard 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 8.2(g) 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.  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, assuming
      performance at target levels for the full performance
      cycle.  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 benefit
      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)  

            	
              Payment,
      on the first regular payroll date after the end of the six-month period
      following the Executive’s termination, of a lump sum amount equal to the
      present discounted value of any "Credit Date Payments" (as defined in
      Section 9 of Amended and Restated Exhibit B) then remaining unpaid, with
      the amount of each such unpaid Credit Date Payment being discounted back
      to the date of payment under this Section 8.2(k) at a discount rate of
      5.65% per annum.

            

    

    
      	
               
      

            	
               

            	
            

    

    
      	
              (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 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 6.3(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 Chief
      Executive Officer or 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 6.3(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 then current 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, 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
Chief Executive Officer with a copy (not itself constituting notice) to the
Executive Vice President, Human Relations. A copy (not itself constituting
notice) of any notice to the Executive shall be delivered to Jerry L. Shulman,
Williams & Connolly LLP, 725 12th Street, N.W., Washington, D.C. 20005.
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's 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 and each Exhibit hereto, except to the extent
specifically provided otherwise herein or therein, 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. In the event of any
discrepancy or conflict between this Agreement and either Exhibit, the
provisions of the Exhibit shall prevail. 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 that 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/ Terrence
O’Donnell  ___________

                                      Terrence O'Donnell

     

    TEXTRON
INC.

     

    By:  /s/ Lewis B.
Campbell_________

                                        Name:  Lewis B.
Campbell

                                       
Title:    Chairman, President and CEO

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    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.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SECOND
AMENDED AND RESTATED

     

    EXHIBIT B
TO

     

    SECOND
AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     

    OF
TERRENCE O'DONNELL

     

    DATED AS
OF February 26, 2008 (the "Employment Agreement")

     

    The
following constitute special compensation provisions to be provided to the
Executive by the Company. All initially capitalized terms not otherwise defined
in this Exhibit B shall have the same meanings as in the Employment Agreement.
This Exhibit B shall be deemed incorporated by reference into and to be part of
the Employment Agreement, provided, however, that to the extent, if any, that
there is a discrepancy or conflict between the text of the Employment Agreement
and this Exhibit B, the provisions of this Exhibit B shall prevail.

     

    
      	
              1)  

            	
              Hiring
      Bonus:

            

    

     

    The
Executive received a special hiring bonus in the amount of $200,000, subject to
withholding and other deductions in accordance with the Company's usual
compensation policies.

     

    
      	
              2)  

            	
              Performance Share
      Units:

            

    

     

    The
Executive was granted initial Performance Share Units ("PSU's") as
follows:

     

    a) Cycle
2000          4,000
PSU's

     

    b) Cycle
2000-01     6,000 PSU's

     

    c) Cycle
2000-02     7,500 PSU's

     

    
      	
              3)  

            	
              Stock
      Options:

            

    

     

    The
Executive received an initial grant of non-qualified options to acquire 20,000
shares of voting common stock of the Company, such grant to be pursuant to an
agreement in the form of the Company's normal non-qualified stock option
agreement for key executives.

     

    
      	
              4)  

            	
              Special Pension
      Calculations

            

    

     

    a) All long
term incentive compensation earned by the Executive (whether or not deferred)
pursuant to any long term incentive plan (including without limitation the
Performance Share Units) shall be included in measuring the Executive's
compensation for purposes of any of the Company's pension plans. Notwithstanding
the immediately preceding sentence, for purposes of determining the Executive's
benefits under the SERP, the definition of "Compensation" under the SERP shall
be revised so as to exclude therefrom the value of any Performance Share Units
granted to the Executive in respect of the 2006-08 performance cycle or any
subsequent performance cycles.

     

    b) There
shall be no deduction from or offset to any pension payment or death benefit
otherwise due to the Executive from the Company or any affiliated entity
(collectively, the "Textron Group") or pursuant to any employee benefit plan,
program or policy provided by the Textron Group as a result of or in connection
with any amounts available or paid to the Executive that are derived or paid
from any defined benefit plan, defined contribution plan or unfunded retirement,
withdrawal or death benefit plan of Williams & Connolly LLP
("W&C").

     

    c) In the
event that the Executive is involuntarily terminated without Cause or terminates
his employment with Good Reason (as such term is defined in the Employment
Agreement), in either case prior to reaching age 60, the Executive shall
nevertheless be entitled to payment of a pension pursuant to the Executive
Supplemental Pension Plan equal to 25% of the pension to which he would have
been entitled thereunder upon retirement at age 65.

     

    
      	
              5)  

            	
              Deferred Income
      Plan

            

    

     

    In the
event of (a) a Qualified Termination following a Change in Control, (b) an
involuntary termination of the Executive by the Company without Cause or (c) a
termination by the Executive for Good Reason, any otherwise unvested premium
payable by the Company with respect to any deferred income under the Deferred
Income Plan shall be fully vested as of such date.

     

    
      	
              6)  

            	
              Perquisites

            

    

     

    The
Executive shall be entitled to:

     

    a) An
executive automobile and related expenses in accordance with normal Company
policy for key executives

     

    b) Financial
Planning and Tax Preparation services generally accorded key
executives

     

    c) Club
membership (both initiation fees and regular dues) in accordance with normal
Company policy for key executives

     

    d) Payment
of or reimbursement for all bar review course fees, bar examination fees, annual
dues or similar fees or expenses incurred by the Executive for the purpose of
becoming licensed or qualified as an attorney eligible to practice within the
State of Rhode Island or in any other jurisdiction in which the Executive in
good faith determines he should be so licensed or qualified

     

    e) Payment
or reimbursement for (i) up to six (6) months temporary housing in a furnished
"executive suites" or comparable housing in the Providence, Rhode Island
metropolitan area, (ii) all local travel, food and entertainment expenses within
such metropolitan area while the Executive is housed in such temporary housing,
and (iii) reasonable travel, housing, food and other house hunting expenses
actually incurred by the Executive or members of his immediate family in
traveling to, from and within the Providence, Rhode Island metropolitan area in
search of long-term housing for the Executive and his family

     

    
      	
              7)  

            	
              Travel between
      Providence, Rhode Island and Washington,
  DC

            

    

     

    The
parties to the Employment Agreement acknowledge that (a) the Executive will
maintain residences in each of the Providence, Rhode Island and Washington, DC
metropolitan areas, and (b) the Executive will, in addition to his position with
the Company, continue on a limited-time basis as a partner in W&C. The
Executive will, therefore, travel frequently between such metropolitan areas. In
recognition of such understandings, and in order to clarify the allocation of
expenses for such travel, the parties have agreed to the following:

     

    a) To the
extent that the Executive uses transportation equipment or facilities owned or
operated by or for any member of the Textron Group, which equipment or
facilities are not being diverted from another corporate use to accommodate the
Executive, and without regard to the purpose of the Executive's travel, the
Executive may utilize such equipment or facilities at no cost to him, provided,
however, that to the extent required by any law, the Company shall report
appropriate charges for any travel thereupon by the Executive as additional
income to the Executive in accordance with such law and normal Company
policy.

     

    b) The
parties acknowledge and agree that the Executive will conduct Textron-Group
related business in both Providence, Rhode Island and Washington, DC. To the
extent that the Executive travels between such metropolitan areas on Textron
Group-related business using commercial travel facilities, all such reasonable
travel expenses shall be paid for or reimbursed by the Company in accordance
with its normal policies for key executives.

     

    c) To the
extent that such travel utilizes commercial travel facilities but is for
non-Textron Group related purposes, the Executive shall be responsible for
paying for or reimbursing the Company for all such expenses.

     

    
      	
              8)  

            	
              Special Relationship
      with W&C

            

    

     

    In
further recognition of (a) the Executive's continuing relationship with W&C,
and (b) the attorney-client relationship between the Company and W&C, the
parties have agreed as follows:

     

    a) The
Executive may simultaneously serve the Company as provided for in Section 2 of
the Employment Agreement and remain as a part-time partner in W&C, all as
set forth in such Section 2.

     

    b) Any legal
services performed by the Executive, whether directly or as a supervisor, on
behalf of any member of the Textron Group, regardless of where it is performed,
shall be considered as having been performed in his capacity as an officer and
employee of the Company and not as a partner of W&C.

     

    c) Any legal
services performed or supervised by any other partner, associate or staff at
W&C for any member of the Textron Group, whether or not subject to
supervision by the Executive, shall be considered as having been performed by
the firm as outside counsel to the Textron Group.

     

    d) W&C
shall not bill the Company for any time spent by the Executive with respect to
any matter relating to any member of the Textron Group, nor will it bill the
Company for any travel expenses incurred by the Executive in the course of such
representation (all of which will be treated as employment-related expenses of
the Executive subject to his Employment Agreement). W&C shall bill the
Company, however, for all travel expenses of any other partner or employee of
W&C, and for all messenger, photocopying and similar office services, all in
accordance with its normal billing practices, without regard to whether the
Executive directed the incurrence of such services on behalf of any member of
the Textron Group or supervised the matter with respect to which such travel or
services were ordered.

     

    e) W&C
shall remain free to represent and to provide any services to or on behalf of
any other clients to the same extent as if the Executive had no personal
affiliation with the Company. The Executive shall timely inform W&C of any
matter from which he should, in his good faith judgment, be screened, and
W&C may rely in good faith on such determination by the
Executive.

     

    f) The
Company will indemnify, defend and hold harmless W&C and its partners,
associates and staff from and against any liability, loss, cost or expense (a
"Loss") incurred or suffered by any of them, in whatever capacity, in connection
with or as a result of any investigation or proceeding of any sort to the extent
relating to or arising out of any legal services performed by the Executive
(including his supervision of any legal services provided by the firm for or on
behalf of any member of the Textron Group) in his capacity as an employee of the
Company, provided, however, no such indemnity shall apply if and to the extent
that such Loss relates to or arises out of services deemed hereunder to have
been performed by the firm for or on behalf of any member of the Textron Group
(whether or not such services were supervised by the Executive).

     

    g) W&C
and each other indemnified party under this Section 8 shall be a third party
beneficiary thereof, with rights to enforce the provisions thereof to the extent
related to such indemnified party.

     

    
      	
              9)  

            	
              Credit Date
      Payments

            

    

     

    Beginning
as of January 1, 2006, and continuing on each anniversary thereof through and
including January 1, 2009 (each a "Credit Date"), Textron will credit the
Executive's Moody's Account within Textron's Deferred Income Plan for Textron
Key Executives (the "Deferred Income Plan") with the sum of $157,465.00 per year
over and above any other deferred income credited to any account of the
Executive within the Deferred Income Plan (each such additional payment, a
"Credit Date Payment"), provided, however, that no such additional Credit Date
Payment shall be credited as of any Credit Date (a) unless the Executive is, as
of such Credit Date, an employee of Textron, or (b) as otherwise provided in
Sections 6.3(d) or 8.2(k) of the Agreement. Notwithstanding anything to the
contrary set forth in the Employment Agreement or this Exhibit B, Credit Date
Payments shall not be included in measuring the Executive's compensation for
purposes of any of the Company's pension plans.

     

    
      	
              10)  

            	
              Approvals

            

    

     

    To the
extent that any commitment or covenant of the Company contained in either the
Employment Agreement or this Second Amended and Restated Exhibit B, including
without limitation the provisions of Sections 4 and 5 of this Second Amended and
Restated Exhibit B, shall constitute an exception to normal compensation or
benefit policies of the Company for its key executives, the Organization and
Compensation Committee of the Board of Directors of the Company shall promptly
and expressly approve such exceptions.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    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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