Document:

exhibittentwo.htm

    
      	
              Exhibit
      10.2

            

    

    

    AMENDED
AND RESTATED

    EMPLOYMENT
AGREEMENT

     

    THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT, is entered into as of the 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 Theodore R. French (the
"Executive").

     

    W I T N E
S S E T H:

     

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

     

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

     

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

     

    1. Term of
Employment

     

    The
Company hereby agrees to employ the Executive and the Executive hereby accepts
employment, in accordance with the terms and conditions set forth herein, for a
term (the "Employment Term") commencing on December 21, 2000 (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
and Chief Financial Officer of the Company or in such higher capacity as agreed
by the Company and the Executive, and shall be a member of the Management
Committee and the Executive Leadership Team or any successor body thereto
("ELT").  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 2 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 and organizational structure
of the Company.  The Executive shall devote substantially all of his
business time, attention and energies to the performance of his duties
hereunder, provided the foregoing will not prevent the Executive from
participating in charitable, community or industry affairs, from managing his
and his family's personal passive investments, and (with the consent of the
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.

     

    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.

     

    The
Executive may perform his duties hereunder, when practical, at his office in
Illinois or at such other location where Executive may reside in the future,
provided the performance of his duties at a location other than the Company's
headquarters does not materially interfere with Executive's performance of
duties hereunder, as determined in good faith by the Chief Executive
Officer.

     

    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 $550,000.  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 therefore at a level
commensurate with his position, provided, however, that the minimum annual
target award payable upon the achievement of reasonably attainable objective
performance goals shall be at least sixty percent (60%) of Base Salary, with a
maximum payment of two hundred percent (200%) of Executive's
target.  Executive shall receive a guaranteed minimum 2001 annual
bonus of $330,000, payable in 2002 in accordance with the provisions of the
Company's annual incentive compensation plan.  For (a) 2001 and (b)
each year thereafter, if members of the Management Committee are eligible
therefore, the Executive will have the opportunity to earn an additional cash
bonus under the Textron Quality Management ("TQM") bonus program of up to fifty
percent (50%) of his annual target incentive.

     

    3.3 Hiring
Bonus.  The Company shall pay the Executive a hiring bonus of $100,000
within five (5) days after the Effective Date.

     

    3.4 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 therefore including the following
awards:

     

    
      	
              (a)  

            	
              Options.  On
      the Effective Date the Company shall grant the Executive stock options
      under the Textron Long-Term Incentive Plan (the "Long-Term Incentive
      Plan") to purchase seventy thousand (70,000) shares of the Company's
      common stock at an exercise price equal to fair market value at the time
      of grant (the "Stock Options").  Fifty percent (50%) of the
      Stock Options shall vest on the one year anniversary of the Effective Date
      and the remainder shall vest on the second anniversary of the Effective
      Date, provided in each case the Executive is then employed by the
      Company.  The Stock Options shall terminate on the tenth
      anniversary of the date of grant.  The Stock Options will be
      granted pursuant to Non-Qualified Stock Option Award Agreements or
      Incentive Stock Option Award Agreements, as applicable and in each case
      shall be in all respects subject to the provisions of such agreements and
      the Company's Long-Term Incentive Plan except as otherwise expressly
      provided for herein.

            

    

     

    
      	
              (b)  

            	
              Performance
      Share Units.  The Company shall grant the Executive performance
      share units ("PSUs") under the Company's Long-Term Incentive Plan as
      follows: six thousand (6,000) PSUs for a one (1) year award period ending
      December, 2001; seven thousand (7,000) PSUs for a two (2) year award
      period ending December, 2002; and fifteen thousand (15,000) PSUs for a
      three (3) year award period ending December, 2003.  Commencing
      with award periods ending in 2002, Executive shall also have the
      opportunity to earn up to an additional one hundred percent (100%) of the
      value of the PSUs upon achieving outstanding performance under a special
      long-term incentive program (the "Special PSU
  Program").

            

    

     

    
      	
              (c)  

            	
              Restricted
      Stock.  On the Effective Date the Company shall grant the
      Executive one hundred thousand (100,000) shares of the Company's common
      stock (which shall be dividend bearing), subject to the following vesting
      schedule: twenty thousand (20,000) shares shall vest annually commencing
      January 1, 2002 and each anniversary thereafter provided Executive is then
      employed by the Company (the "Restricted
  Stock").

            

    

     

    3.5 Employee
Benefits.  (a) 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 the Key Executive Benefits Program (including the
Deferred Income Plan, the Spillover Pension Plan, the Spillover Savings Plan,
the Survivor Benefit Plan, an executive automobile, club membership and
financial planning and tax preparation), the Company's savings and pension plan
and medical and life insurance.

     

    (b)           The
Executive shall also participate in the Supplemental Retirement Plan for
Textron, Inc.  Key Executives (the "SERP").  Under the SERP
as in effect on the Effective Date, the Executive shall be entitled to receive a
single life annuity upon his retirement from the Company at or after his
reaching age sixty-five (65) equal to fifty percent (50%) of his highest
consecutive five (5) year average compensation.  A reduced benefit is
available if the Executive retires from the Company at or after age sixty (60)
and prior to age 65.  The cash value of the PSUs actually paid under
the Long-Term Incentive Plan (but not under the Special PSU Program) shall be
treated as compensation in the year paid for purposes of calculating the
Executive's SERP benefit.  The SERP benefit shall be reduced by any
amounts payable to Executive under any other Company or prior employer defined
benefit pension arrangement.

     

    3.6 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.

     

    3.7 Perquisites.  To
the extent legally permissible, the Company shall not treat perquisites provided
to the Executive as income to the Executive.  The Executive shall also
be entitled to the following special perquisites (the "Special
Perquisites"):

     

    
      	
              (a)  

            	
              Use
      of Company Aircraft.  The Company shall make good faith efforts
      to provide the Executive upon his reasonable request with use of a Company
      aircraft for the following travel: (i) commuting to and from the
      Executive's primary residence and the Company's headquarters or other
      facilities, (ii) business travel to perform the Executive's duties
      hereunder and (iii) personal travel with the Executive's immediate family,
      provided, however, that, the Executive must accompany his family unless
      the Executive's absence is otherwise approved by the Chief Executive
      Officer.  If the Company aircraft is unavailable, the Company
      shall pay the cost of first-class commercial airline tickets for the
      Executive.  To the extent any expenses under (i) above result in
      imputed income to the Executive, the Company shall fully gross-up
      reimbursement to the Executive such that the Executive has no after tax
      cost for such aircraft travel.  All other personal travel will
      be charged to the Executive as imputed income in accordance with the
      Company's standard operating procedures.  Personal travel not
      described in clause (i) or clause (iii) of this Section 3.7(a) (for
      example, travel for non-business reasons by persons other than the
      Executive and his immediate family) shall be in accordance with the
      Company’s policy for use of Company aircraft.  The parties
      recognize that in light of the Executive's position the use of the Company
      aircraft for personal and family travel is desirable for security
      reasons.

            

    

     

    
      	
              (b)  

            	
              Living
      Expenses.  The Company shall pay the Executive's living expenses
      in Providence, Rhode Island, through December 31, 2001.  The
      expenses must be approved by the Chief Executive Officer (which approval
      shall not be unreasonably withheld) and are limited to reasonable costs
      commensurate with those expenses customarily associated with a member of
      the ELT.  To the extent the Company's payment of such living
      expenses result in imputed income to the Executive, the Company shall
      fully gross-up the Executive such that the Executive has no after tax
      cost.

            

    

     

    
      	
              (c)  

            	
              Relocation.  The
      Company shall pay the Executive's one (1) time relocation costs, provided
      that the Company and Executive mutually agree, in good faith, that such
      relocation will allow the Executive to more efficiently and effectively
      perform his duties hereunder.  The payment of such relocation
      expenses shall be made in accordance with the Company's relocation policy
      for comparable executive level expenditures and shall include a home
      purchase program and full gross-up for all taxes related to the relocation
      expenses regardless of whether any such expenses qualify for tax
      deductibility.

            

    

     

    3.8 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 senior executive employees generally, provided,
however, the right to change such plans, programs or perquisites shall not in
any way limit Executive's right to claim a Good Reason termination pursuant to
Section 5(f)(v) as a result of any such change.  Notwithstanding the
foregoing, the Company shall not terminate, decrease or alter the Special
Perquisites provided in Section 3.7(a) through (c) without Executive's prior
written consent.

     

    4. Expenses

     

    Upon
submission of appropriate documentation, in accordance with its policies in
effect from time to time, the Company shall pay 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 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.

            

    

     

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

            

    

     

    
      	
              (e)  

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

            

    

     

    
      	
              (f)  

            	
              Upon
      twenty (20) days written notice by the Executive to the Company of a
      termination for Good Reason (which notice sets forth in reasonable detail
      the facts and circumstances claimed to provide a basis for such
      termination) unless the Good Reason event is cured within such twenty (20)
      day period.  The term "Good Reason" shall mean, for purposes of
      this Agreement, without the Executive's express written consent, the
      occurrence of any one or more of the following: (i) the assignment to the
      Executive (other than temporarily while Disabled or otherwise
      incapacitated) of duties materially inconsistent with the Executive's then
      position, authorities, duties, responsibilities, and status (including
      offices, titles, and reporting requirements); (ii) any material reduction
      in the Executive's then title, position, reporting lines or a material
      reduction (other than temporarily while Disabled or otherwise
      incapacitated) in his then status, authority, duties or responsibilities
      (it being acknowledged by the parties that a material reduction will occur
      in the event of a transaction in which the Company is acquired directly or
      indirectly by another entity in such manner that the Company is no longer
      a "reporting company" under the Securities Exchange Act of 1934 based on
      its common stock being publicly traded, unless Executive becomes Chief
      Financial Officer of the ultimate parent entity) or, if then a director of
      the Company, failure to be nominated or reelected as a director of the
      Company or removal as such, provided, however, that it is not intended
      hereby that any incidental reallocation or reassignment of personnel or
      minor changes in the areas reporting to the Executive (so long as such
      changes are not core functions of Executive's responsibilities) shall
      constitute Good Reason for the Executive's resignation unless the
      cumulative result of such actions is to so modify the Executive's role so
      as to make it materially different from such role immediately prior to
      such actions; (iii) relocation (A) 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 (B) 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, in the case of clause (B), if the
      Executive at the time of such relocation is not located at the principal
      office of the Company, 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; (iv) a reduction by the Company in the
      Executive's Base Salary; (v) 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 that in either case has a
      disproportionate adverse aggregate impact on the Executive as compared to
      other similarly situated executives; (vi) Executive's voluntary
      termination of employment for any reason during the thirty (30) day period
      following the one (1) year anniversary of a Change in Control; (vii) 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 (viii) any other material breach
      by the Company of this Agreement.

            

    

     

    
      	
              (g)  

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

            

    

     

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

    

    6. Consequences
of a Termination of Employment

     

    6.1 Termination
Due to Death or Retirement.  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, (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") and (iv) a pro-rata portion of the
annual incentive compensation for the year of Executive's termination calculated
as follows: the product of the Executive's annual bonus for the calendar year of
the Executive’s termination, multiplied by a fraction, the numerator of which is
the number of days of the current fiscal year during which Executive was
employed by the Company, and the denominator of which is 365, provided, however,
Executive shall only receive such pro-rata bonus if other senior executives
remaining employed by the Company through the end of such year receive an annual
bonus with respect to such year, and only to the extent that the applicable
corporate performance goals are achieved (a "Pro Rata Bonus").  In
addition, Executive shall be fully vested in the Stock Options and the
Restricted Stock (the "Special Vesting") and the Company shall pay the COBRA
premiums for eighteen (18) months (or if earlier, until termination of
Executive's health care continuation coverage under the Company’s group health
plans pursuant to sections 601 through 608 of the Employee Retirement Income
Security Act of 1974, as amended ("COBRA Coverage")).  The Accrued
Obligations described in clauses (i) and (ii), above, shall be paid on the first
regular payroll date after the Executive’s termination (or, if earlier, 45 days
after the Executive’s termination).  The Pro Rata Bonus shall be paid
in a lump sum on March 1 of the calendar year following the date of 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, to any Accrued Obligations and the
following:

     

    
      	
              (a)  

            	
              The
      product of the Executive's prior year bonus multiplied by a fraction, the
      numerator of which is the number of days of the current fiscal year during
      which Executive was employed by the Company, and the denominator of which
      is 365 (provided, however, Executive shall only receive such pro-rata
      bonus if other senior executives remaining employed by the Company through
      the end of such year receive an annual bonus with respect to such year),
      paid in a lump sum on March 1 of the calendar year following the date of
      the Executive’s termination.

            

    

     

    
      	
              (b)  

            	
              The
      Special Vesting.

            

    

     

    
      	
              (c)  

            	
              COBRA
      Coverage (as described in Section 6.1) for Executive and his
      dependents.

            

    

     

    
      	
              (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.

            

    

     

    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)  

            	
              A
      Pro Rata Bonus, paid in a lump sum on March 1 of the calendar year
      following the date of the Executive’s
  termination.

            

    

     

    
      	
              (b)  

            	
              An
      amount equal to two (2) 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 “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 (2) year
      period.

            

    

     

    
      	
              (c)  

            	
              To
      the extent eligible at such time or, if the Executive would be eligible
      with credit for an additional two (2) years of age and service credit,
      coverage under applicable retiree health and retiree life insurance plans
      for the Executive and (in the case of retiree health coverage) his
      dependents.  If the Executive is eligible for retiree life
      insurance coverage only because of the additional age and service credit,
      the Executive shall pay the full cost of purchasing the coverage (under
      the Company’s group insurance policy, or under an individual policy if
      coverage under the Company’s policy is not available), and the Company
      shall reimburse the Executive for the cost (before tax) of the
      coverage.  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.  If not eligible for continued health coverage under
      the retiree health plan, Executive and his dependents shall receive COBRA
      Coverage as described above in Section
6.1.

            

    

     

    
      	
              (d)  

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

            

    

     

    
      	
              (e)  

            	
              Immediate
      full vesting of the Stock Options, the Restricted Stock and any
      outstanding stock options or other equity award that would vest within two
      (2) years after such termination of employment as if the Executive had
      continued employment for such two (2) year period.  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.  In addition, to the extent the Stock Options or any
      other options are exercisable for less than two and three-quarters (2-3/4)
      years after the Executive's termination, the Executive also shall receive
      a cash payment equal to the estimated cash value of such options for the
      lesser of two and three-quarters (2-3/4) years or the remainder of the
      respective terms of such options (calculated in accordance with the same
      Black-Scholes methodology used for the Company's then latest audited
      financial statements or, if not so used, for internal valuation of the
      last stock option grants made by the Company prior to the
      termination).  The Black-Scholes payment shall be made in a lump
      sum, without interest, on the first regular payroll date after the end of
      the six-month period following the Executive’s termination.  The
      terms of the Executive's outstanding options are deemed to be modified to
      the extent required by this Section
6.3(e).

            

    

     

    
      	
              (f)  

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

            

    

     

    
      	
              (g)  

            	
              To
      the extent that with regard to any particular item, the Executive would
      receive better treatment under the applicable Company plan or program,
      such better treatment shall apply.

            

    

     

    
      	
              (h)  

            	
              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(c).

            

    

     

    
      	
              (b)  

            	
              Any
      amounts payable and benefits or additional rights provided pursuant to
      Section 6.2, 6.3 or 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 Section 8.2(i), the equity award shall not vest pursuant
      to Section 6.3(g) or Section 8.2(i) until the Executive’s release has
      become irrevocable.  The Company and the Executive shall execute
      the release of claims and shall deliver executed copies to one another
      within forty-five days following the Executive’s separation from
      service.

            

    

     

    
      	
              (c)  

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

            

    

     

    8. Change in
Control

     

    8.1 Employment
Termination in Connection with a Change in Control.

     

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

     

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

     

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

     

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

     

    
      	
              (a)  

            	
              Any
      Accrued Obligations.

            

    

     

    
      	
              (b)  

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

            	
              To
      the extent the Executive is eligible, was eligible prior or after the
      Change in Control (or, if earlier, the Qualifying Termination) or if the
      Executive would be eligible with credit for an additional three (3) years
      of age and service credit, coverage under applicable retiree health and
      retiree life insurance plans for the Executive and (in the case of retiree
      health coverage) the Executive’s eligible dependents.  If the
      Executive is eligible for retiree life insurance coverage only because of
      the additional age and service credit, the Executive shall pay the full
      cost of purchasing the coverage (under the Company’s group insurance
      policy, or under an individual policy if coverage under the Company’s
      policy is not available), and the Company shall reimburse the Executive
      for the cost (before tax) of the coverage.  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.

            

    

     

    
      	
              (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 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.

            

    

     

    
      	
              (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 Amended and Restated Supplemental Executive Retirement
      Plan for Textron Inc.  Key Executives 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), compensation
      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 not 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 occurred) 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) 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) 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) 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).  In addition,
      to the extent any stock options are exercisable for less than three (3)
      years after the Executive's termination (or, if less, the remainder of the
      respective terms of such options, including any termination of
      exercisability of all Company stock options in connection with the Change
      in Control or a merger related thereto), the Executive also shall receive
      a cash payment equal to the estimated future value of such options for the
      lesser of three (3) years or the remainder of the respective terms of such
      options (calculated in accordance with the same Black-Scholes methodology
      used for the Company's then latest audited financial statements or, if not
      so used, for internal valuation of the last stock option grants made by
      the Company prior to the earlier of the Qualifying Termination or the
      Change in Control).  If the Qualifying Termination occurs after
      a Section 409A Change in Control, the entire Black-Scholes payment shall
      be made 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 the Black-Scholes payment
      described in Section 6.3(e) (reduced by any Black-Scholes payment made
      under Section 6.3(e) before the Change in Control) shall be paid as
      provided in Section 6.3(e), and any incremental additional amount payable
      under this Section 8.2(i) solely as a result of the Change in Control
      shall be paid in a lump sum, without interest, on the later of (i) 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.

            

    

     

    
      	
              (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)  

            	
              To
      the extent that with regard to any particular item, the Executive would
      receive better treatment under the applicable Company plan or program,
      such better treatment shall apply.

            

    

     

    
      	
              (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 "Non-Compete Period"), the Executive
      will not engage in Competition with the Company with the Listed Companies,
      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.  The Listed Companies are United
      Technologies Corporation, General Dynamics Corporation, Daniher
      Corporation, Emerson and Tyco International Ltd.  The Listed
      Companies may not be amended or added to without the prior written consent
      of both parties hereto.

            

    

     

    
      	
              (b)  

            	
              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 the Listed Companies.  Notwithstanding anything
      else in this Section 9, Competition shall not include: (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 providing of accounting/auditing services in an accounting firm that
      audits or provides services to Listed Companies, provided that the
      Executive does not personally represent such Listed Companies, or (iv) the
      employment by, or provision of services to, an investment banking firm or
      consulting firm that provides services to Listed Companies, provided that
      the Executive does not personally represent or provide services to such
      Listed Companies.

            

    

     

    
      	
              (b)  

            	
              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)  

            	
              Upon
      written request of the Executive, the Chief Executive Officer of the
      Company shall consider, in good faith, and within ten (10) days after
      receipt of the latter of (i) such written notice and (ii) any information
      reasonably requested in accordance with the last sentence of this
      subsection, notify the Executive in writing whether or not the Company
      will waive the limitation prohibiting the Executive from working for a
      Listed Company during the Non-Compete Period, provided, however, that if
      the Company does not reply within ten (10) days, the Company shall be
      deemed to have waived such limitation.  The Executive shall
      promptly provide the Company with such information as it may reasonably
      request to evaluate whether or not it should waive such
      limitation.

            

    

     

    
      	
              (c)  

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

            

    

     

    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.

     

    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 past or present
      respective 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) statements the Executive believes to be
      truthful that are 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 and Indemnification.

     

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

    

    11. Assignment

     

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

     

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

     

    12. Legal
Remedies

     

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

     

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

     

    12.3 Notice.  Any
notices, requests, demands, or other communications provided for by this
Agreement shall be sufficient if in writing and if delivered personally, sent by
telecopier, sent by an overnight service or sent by registered or certified
mail.  Notice to the Executive not delivered personally (or by
telecopy where the Executive is known to be) shall be sent to the last address
on the books of the Company, and notice to the Company not delivered personally
(or by telecopy to the known personal telecopy of the person it is being sent
to) shall be sent to it at its principal office.  All notices to the
Company shall be delivered to the 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 him in the arbitration effective as of the date of the filing
of the arbitration, subject to the Executive promptly refunding any amounts paid
to him, paying the cost of any benefits provided to him and paying to the
Company the profits in any stock option or other equity awards exercised or
otherwise realized by him during the pendency of the arbitration which he is
ultimately held not to be entitled to; provided the arbitrators may terminate
such payments and benefits in the event that they determine at any point that
the Executive is intentionally delaying conclusion of the
arbitration.

     

    13. Miscellaneous.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    13.8 Construction.  No
provision of this Agreement shall be interpreted or construed against any party
because that party or its legal representative drafted that
provision.  The captions and headings of the Sections of this
Agreement are for convenience of reference only and are not to be considered in
construing this Agreement.  Unless the context of this Agreement
clearly requires otherwise: (a) references to the plural include the singular,
the singular the plural, and the part the whole, (b) references to one gender
include all genders, (c) "or" has the inclusive meaning frequently identified
with the phrase "and/or," (d) "including" has the inclusive meaning frequently
identified with the phrase "including but not limited to" or "including without
limitation," (e) references to "hereunder," "herein" or "hereof" relate to this
Agreement as a whole, and (f) the terms "dollars" and "$" refer to United States
dollars.  Section, subsection, exhibit and schedule references are to
this Agreement as originally executed unless otherwise specified.  Any
reference herein to any agreement, including this Agreement, shall be deemed to
include such agreement as it may be modified, varied, amended or supplemented
from time to time.  Any reference herein to any statute, rule or
regulation shall be deemed to include such statute, rule or regulation as it may
be modified, varied, amended or supplemented from time to time.  Any
reference herein to any person shall be deemed to include the heirs, personal
representatives, successors and permitted assigns of such person.

     

    13.9 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/Theodore R.
French_____________

    Theodore
R. French

    

     

    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: (i) 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 and (ii) an
      amount equal to the product of any deductions disallowed for federal,
      state or local income tax purposes because of the inclusion of the
      Gross-Up Payment in the Executive's adjusted gross income multiplied by
      the highest applicable marginal rate of federal, state or local income
      taxation, respectively, for the calendar year in which the Gross-Up
      Payment is to be made.  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 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 (or by the Internal Revenue Service or other
      taxing authority) 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 Accountants (or the Internal Revenue Service or
      other taxing authority) 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 Accountants, 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 any such issues, 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
      Accountants.

            

    

     

    
      	
              (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 13.9 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:exhibittenthree.htm

    
      	
              Exhibit
      10.3

            

    

    

    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 John D. Butler (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
and Chief Human Resources Officer 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 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.  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.  The Company has consented to the Executive's
services on the boards of directors, if any, on which the Executive currently
serves, which boards the Executive has disclosed in writing to the O&C
Committee.  The Executive may retain any compensation or benefits
received as a result of consented to service as a director of entities not
related to the Company.

     

    
      	
              3.  

            	
              Compensation
      and Benefits

            

    

     

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

     

    
      	
              3.1  

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

            

    

     

    
      	
              3.2  

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

            

    

     

    
      	
              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.

            

    

     

    
      	
              (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 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 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 his 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 his then location; (iii) a reduction by the Company in the
      Executive's Base Salary; (iv) a reduction in the Executive's aggregate
      level of participation in any of the Company's short and/or long-term
      incentive compensation plans, or employee benefit or retirement plans,
      policies, practices, or arrangements in which the Executive participated
      as of the Effective Date, or, after a Change in Control, participated
      immediately prior to the Change in Control; (v) the failure of the Company
      to obtain and deliver to the Executive a satisfactory written agreement
      from any successor to the Company to assume and agree to perform this
      Agreement; or (vi) any other material breach by the Company of this
      Agreement.  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 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).  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 (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 (21⁄2) 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 his employment for Good Reason in accordance with
      Section 5(f) above, the Executive shall be entitled, in lieu of any other
      payments or benefits, subject to Section 7(b) hereof, to any Accrued
      Obligations and the following:

            

    

     

    
      	
              (a)  

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

            

    

     

    
      	
              (b)  

            	
              An
      amount equal to two (2) times the sum of: (i) the Executive's Base Salary,
      and (ii) the greater of: (x) the Termination Year Target Bonus, or (y) the
      Executive's average 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 (1⁄2) times the Final Annual Compensation
      shall be calculated as equal monthly installments payable over a period of
      two (2) years; provided, however, that the monthly installments for the
      first six months following the Executive’s termination shall be paid in a
      lump sum, without interest, on the first regular payroll date after the
      end of the six-month period, and the remaining monthly installments shall
      commence on the first regular payroll date after the end of the sixth
      month following the Executive’s termination and shall be paid for the
      remainder of the two (2) year
period.

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              (d)  

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

            

    

     

    
      	
              (e)  

            	
              Two
      and one-half (21⁄2) additional years of service (including age as if such
      service was completed) and compensation credit (at the Executive's "Then
      Compensation Level") for benefit purposes under any defined benefit type
      retirement plan, including but not limited to the SERP and the Spillover
      Pension Plan if then in
      effect, and, if the Executive is not eligible to receive benefits under
      any such plan on the date of termination, two and one-half (21⁄2) additional
      years of age for determining eligibility to receive such benefits,
      provided that benefits under any such plan will not commence until the
      Executive actually attains the required distribution age (taking into
      account only the Executive’s actual service) under the plan or the
      Executive's spouse qualifies for death benefits under such plan, and will
      be paid in accordance with the terms of such plan; and further provided
      that, with regard to any plan qualified under Section 401(a) of the Code,
      the additional amounts may be provided on a nonqualified plan
      basis.  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 (21⁄2) 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 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 (2) times
      the amount of the maximum Company annual contribution or match to any
      defined contribution type plan in which the Executive
      participates.

            

    

     

    
      	
              (g)  

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

            

    

     

    
      	
              (h)  

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

            

    

     

    
      	
              (i)  

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

            

    

     

    
      	
              (j)  

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

            

    

     

    
      	
              6.4  

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

            

    

     

    
      	
              6.5  

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

            

    

     

    
      	
               
      

            	
              (a)

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

            

    

    

    
      	
               
      

            	
              (b)

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

            

    

    

    
      	
               
      

            	
              (i)

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

            

    

    

    
      	
               
      

            	
              (ii)

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

            

    

    

    
      	
               
      

            	
              (iii)

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

            

    

    

    
      	
               
      

            	
              (iv)

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

            

    

    

    
      	
               
      

            	
              (v)

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

            

    

     

    
      	
              6.6  

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

            

    

     

    
      	
              7.  

            	
              No
      Mitigation/No Offset/Release

            

    

     

    
      	
              (a)  

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

            

    

     

    
      	
              (b)  

            	
              Any
      amounts payable and benefits or additional rights provided pursuant to
      Section 6.2, 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, upon 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)
      upon the first regular payroll date after the end of the sixth month
      following the Executive’s termination, or (ii) within 30 business days
      after the effective date of the Change in
  Control.

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              (d)  

            	
              A
      lump-sum cash payment (subject to the distribution rules set forth later
      in this paragraph) equal to three (3) times the greater of: (i) the
      Executive's average annual incentive compensation earned over the three
      (3) fiscal years ending prior to the earlier of the Change in Control or
      the Qualifying Termination (whether or not deferred); or (ii) the
      Executive's target incentive compensation established for the fiscal year
      in which the Executive's date of termination occurs.  If the
      Qualifying Termination occurs after a Section 409A Change in Control, the
      entire amount shall be paid in a lump sum, without interest, on the first
      regular payroll date after the end of the sixth month following the
      Executive’s termination.  If the Change in Control is not a
      Section 409A Change in Control, or if the Qualifying Termination precedes
      a Section 409A Change in Control, an amount equal to 2 times the bonus
      amount described in Section 6.3(b)(ii) (reduced by any installment
      payments attributable to the bonus amount made under Section 6.3(b) before
      the Change in Control) shall be paid as provided in Section 6.3(b), and
      any incremental additional amount payable under this Section 8.2(d) solely
      as a result of the Change in Control shall be paid in a lump sum, 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, based on
      actual performance for the portion of the performance cycle through the
      date of the Change in Control, and assuming performance at target levels
      for the portion of the performance cycle after the Change in
      Control.   Subject to Section 8.1(c), the payment described
      in the preceding sentence shall be made in a lump sum, without interest,
      on the later of (i) on the first regular payroll date after the end of the
      sixth month following the Executive’s Qualifying Termination, or (ii)
      within 30 business days after the effective date of the Change in
      Control.  For equity awards other than performance share units,
      immediate full vesting of any outstanding stock options and other equity
      awards (and lapse of any forfeiture
provisions).

            

    

     

    
      	
              (j)  

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

            

    

     

    
      	
              (k)  

            	
              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 6.2(b) or Section 6.3(b), the Executive: (i)
      violates (a) above, or (ii) otherwise engages in Competition in the
      Restricted Territory, whether or not with the Listed Companies, Section
      9.6(b) hereof shall apply.

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              9.2  

            	
              Definitions.

            

    

     

    
      	
              (a)  

            	
              "Competition"
      shall mean engaging in, as an employee, director, partner, principal,
      shareholder, consultant, advisor, independent contractor or similar
      capacity, with (a) the Listed Companies or (b) in any business, activity
      or conduct which directly competes with the business of the Company,
      provided that, with regard to the period after termination of the
      Executive's employment, Section 9.1(b)(ii) shall only apply to business
      lines in which the Company is engaged both at the time of termination of
      employment and at the time of the determination and which during the last
      fiscal year ending prior to the date of such termination represented at
      least five percent (5%) of the Company's revenues (the "Prohibited
      Lines").  Notwithstanding anything else in this Section 9,
      Competition shall not include: (A) (i) holding five percent (5%) or less
      of an interest in the equity or debt of any publicly traded company, (ii)
      engaging in any activity with the prior written approval of the 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 6.2(a)
      or (b) or Sections 6.3(a) or (b), as well as otherwise specifically
      provided in any other plan, grant or
program.

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              9.7  

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

            

    

     

    
      	
              9.8  

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

            

    

     

    
      	
              9.9  

            	
              Nondisparagement.

            

    

     

    
      	
              (a)  

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

            

    

     

    
      	
              (b)  

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

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              10.  

            	
              Liability
      Insurance

            

    

     

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

     

    
      	
              11.  

            	
              Assignment

            

    

     

    
      	
              11.1  

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

            

    

     

    
      	
              11.2  

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

            

    

     

    
      	
              12.  

            	
              Legal
      Remedies

            

    

     

    
      	
              12.1  

            	
              Payment
      of Legal Fees.  The Company shall pay the Executive's reasonable
      legal fees and costs associated with entering into this
      Agreement.  To the fullest extent permitted by law, the Company
      shall promptly pay upon submission of statements all legal and other
      professional fees, costs of litigation, prejudgment interest, and other
      expenses incurred during the Executive’s lifetime or in the five-year
      period following the Executive’s death in connection with any dispute
      arising hereunder and/or in connection with any release of claims executed
      or to be executed in connection herewith; provided, however, the Company
      shall be reimbursed by the Executive for (i) the fees and expenses
      advanced in the event the Executive's claim is in a material manner in bad
      faith or frivolous and the arbitrator or court, as applicable, determines
      that the reimbursement of such fees and expenses is appropriate, or (ii)
      to the extent that the arbitrator or court, as appropriate, determines
      that such legal and other professional fees are clearly and demonstrably
      unreasonable.  Prejudgment interest shall be paid at the rate
      awarded by the arbitrator or court on any money
      award or judgment obtained by the Executive or by any person claiming by
      or through the Executive, 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 to the senior legal
      officer.  Delivery shall be deemed to occur on the earlier of
      actual receipt or tender and rejection by the intended
      recipient.

            

    

     

    
      	
              12.4  

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

            

    

     

    
      	
              13.  

            	
              Miscellaneous

            

    

     

    
      	
              13.1  

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

            

    

     

    
      	
              13.2  

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

            

    

     

    
      	
              13.3  

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

            

    

     

    
      	
              13.4  

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

            

    

     

    
      	
              13.5  

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

            

    

     

    
      	
              13.6  

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

            

    

     

    
      	
              13.7  

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

            

    

     

    
      	
              13.8  

            	
              Section
      409A.

            

    

     

    
      	
              (a)  

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

            

    

     

    
      	
              (b)  

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

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              14.  

            	
              Governing
      Law

            

    

     

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

     

    

     

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

     

    

    

    /s/ John D.
Butler_________________

    John D.
Butler

    

    

    

    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:

    

    
      
        
          -  -

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