Document:

Exhibit 10.3

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT is entered into as of this 4th
day of May, 2006, by and between Textron Inc. (the "Company"), a Delaware
corporation having its principal office at 40 Westminster Street, Providence,
Rhode Island 02903 and Terrence O'Donnell residing at 5133 Yuma Street,
N.W., Washington, DC 20016 (the "Executive").

     W I T N E S S E T H:

        WHEREAS, the Executive is presently employed by the Company;

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

        WHEREAS, the Company and the Executive entered into an employment agreement
as of March 10, 2000 (the "Employment Agreement"); and

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

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

1.     Term of Employment

The Company hereby agrees to continue to employ the Executive and the
Executive hereby accepts such continued employment, in accordance with the terms
and conditions set forth herein, for a term (the "Employment Term") that
commenced on March 10, 2000 (the "Effective Date") and terminating, unless
otherwise terminated earlier in accordance with Section 5 hereof, on the next
anniversary of the Effective Date (the "Original Employment Term"), provided
that the Employment Term shall be automatically extended, subject to earlier
termination as provided in Section 5 hereof, for successive additional one (1)
year periods (the "Additional Terms"), unless, at least ninety (90) days prior
to the end of the then Additional Term, the Company or the Executive has
notified the other in writing that the Employment Term shall terminate at the
end of the then current term.

2.     Position and Responsibilities

During the Employment Term, the Executive shall serve as the Executive Vice
President and General Counsel of the Company or in such higher capacity as
agreed by the Company and the Executive. The Executive shall also serve as a
member of the Management Committee (or any equivalent committee or group as may
replace the Management Committee from time to time). The Executive shall report
exclusively to the Chief Executive Officer and the Board of Directors of the
Company (the "Board"). The Executive shall, to the extent appointed or elected,
serve on the Board as a director and as a member of any committee of the Board,
in each case, without additional compensation. The Executive shall, to the
extent appointed or elected, serve as a director or as a member of any committee
of the board (or the equivalent bodies in a non-corporate subsidiary or
affiliate) of any of the Company's subsidiaries or affiliates and as an
officer or employee (in a capacity commensurate with his position with the
Company) of any such subsidiaries or affiliates, in all cases without additional
compensation or benefits, and any compensation paid to the Executive, or
benefits provided to the Executive, in such capacities shall be a credit with
regard to the amounts due hereunder from the Company. The Executive shall have
duties, authorities and responsibilities generally commensurate with the duties,
authorities and responsibilities of persons in similar capacities in similarly
sized companies, subject to the By-laws of the Company and the
organizational structure of the Company. Except as provided in the next
succeeding sentence, the Executive shall devote substantially all of his
business time, attention and energies to the performance of his duties
hereunder, provided the foregoing will not prevent the Executive from
participating in charitable, community or industry affairs, from managing his
and his family's personal passive investments, and (with the consent of the
Chief Executive Officer or the Organization and Compensation Committee (or its
successor) of the Board (the "O&C Committee"), which consent will not be
unreasonably withheld, conditioned or delayed) serving on the board of directors
of other companies or as a partner in the law firm of Williams & Connolly LLP,
provided in each case that these activities do not materially interfere with the
performance of his duties hereunder or create a potential business conflict or
the appearance thereof. In particular, Executive (a) may continue to serve
as a part-time partner at Williams & Connolly LLP, and (b) may serve on
the board of directors of each of (i) The Gerald R. Ford Foundation,
(ii) the Air Force Academy Falcon Foundation, (iii) IGI, Inc. and (iv)
ePlus, Inc., in each case retaining any compensation or emoluments therefrom.

3.     Compensation and Benefits

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

            3.1     Base Salary. The Company shall pay the
Executive an initial base salary (the "Base Salary") at a rate of $425,000.00.
Base Salary shall be paid to the Executive in accordance with the Company's
normal payroll practices for executives. Base Salary shall be reviewed at least
annually by the O&C Committee (or as otherwise designated by the Board) to
ascertain whether, in the judgment of the reviewing committee, such Base Salary
should be increased. If so increased, Base Salary shall not be thereafter
decreased and shall thereafter, as increased, be the Base Salary hereunder.

            3.2     Annual Bonus. The Company shall provide
the Executive with the opportunity to earn an annual cash bonus under the
Company's current annual incentive compensation plan for executives or a
replacement plan therefor at a level commensurate with his position, provided
that the minimum annual target award payable upon the achievement of reasonably
attainable objective performance goals shall be at least 55% of Base Salary.

            3.3     Long-Term Incentives. The Company
shall provide the Executive the opportunity to earn long-term incentive
awards under the current equity and cash based plans and programs or
replacements therefor.

            3.4     Employee Benefits. The Executive shall,
to the extent eligible, be entitled to participate at a level commensurate with
his position in all employee benefit welfare and retirement plans and programs,
as well as equity plans, generally provided by the Company to its senior
executives in accordance with the terms thereof as in effect from time to time.
Such plans and programs currently include, without limitation, the Amended and
Restated Supplemental Retirement Plan for Textron Inc. Key Executives (the
"SERP"), the 1994 Long-Term Incentive Plan, the Key Executive Program
(including the Deferred Income Plan, the Supplemental Benefits Plan (the "SBP")
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 Company shall provide
to the Executive, at the Company's cost, all perquisites to which other
senior executives of the Company are generally entitled to receive and such
other perquisites which are suitable to the character of the Executive's
position with the Company and adequate for the performance of his duties
hereunder. To the extent legally permissible, the Company shall not treat such
amounts as income to the Executive.

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

            
3.8     Special
Provisions. The Company shall provide to the Executive the special
provisions set forth on Amended and Restated Exhibit B hereto, which 
Amended and Restated Exhibit B is incorporated herein.

4.     Expenses

            Upon submission of appropriate documentation, in accordance with its policies
in effect from time to time, the Company shall pay, or reimburse, the Executive
for all ordinary and necessary expenses, in a reasonable amount, which the
Executive incurs in performing his duties under this Agreement including, but
not limited to, travel, entertainment, professional dues and subscriptions, and
all dues, fees, and expenses associated with membership in various professional,
business, and civic associations and societies in which the Executive
participates in accordance with the Company's policies in effect from time
to time.

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)     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. The term "Disability" shall mean, for
				purposes of this Agreement, the inability of the Executive, due
				to injury, illness, disease or bodily or mental infirmity, 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 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. In no event shall
				compensation cease by reason of a termination for Disability
				prior to that date on which the Executive shall commence his
				eligibility for payments pursuant to the Company's
				disability benefits program.

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

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

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

		(f)     Upon twenty (20) days
				written notice by the Executive to the Company of a termination
				for Good Reason (which notice sets forth in reasonable detail
				the facts and circumstances claimed to provide a basis for such
				termination) unless the Good Reason event is cured within such
				twenty (20) day period. The term "Good Reason" shall mean, for
				purposes of this Agreement, without the Executive's express
				written consent, the occurrence of any one or more of the
				following: (i) the assignment to the Executive of duties
				materially inconsistent with the Executive's then
				authorities, duties, responsibilities, and status (including
				offices, titles, and reporting requirements), or any reduction
				in the Executive's then title, position (including
				membership on the Management Committee or its equivalent) or
				reporting lines or a material reduction (other than temporarily
				while Disabled or otherwise incapacitated) in his then status,
				authorities, duties or responsibilities (or, should the Company
				be reorganized such that it becomes a subsidiary or controlled
				party of any other entity, the Executive's not holding
				authorities, duties, responsibilities, status, offices, titles
				or reporting lines in such parent or controlling party at least
				commensurate with those held by him at the Company immediately
				prior to such reorganization) or, if then a director of the
				Company, failure to be nominated or reelected as a director of
				the Company or removal as such; (ii) relocation of the Executive
				from the principal office of the Company (excluding reasonable
				travel on the Company's business to an extent substantially
				consistent with the Executive's business obligations) or
				relocation of the principal office of the Company to a location
				which is at least fifty (50) miles from the Company's
				current headquarters, provided, however, if the Executive at the
				time of the relocation is not located at the principal office,
				such relocation provision shall apply based on his then location
				but shall not cover a relocation to the principal office prior
				to a Change in Control; (iii) a reduction by the Company in the
				Executive's Base Salary; (iv) a reduction in the
				Executive's aggregate level of participation in any of the
				Company's short and/or long-term incentive compensation
				plans, or employee benefit or retirement plans, policies,
				practices, or arrangements in which the Executive participated
				as of the Effective Date, or, after a Change in Control,
				participated immediately prior to the Change in Control; (v) the
				failure of the Company to obtain and deliver to the Executive a
				satisfactory written agreement from any successor to the Company
				to assume and agree to perform this Agreement; or (vi) any other
				material breach by the Company of this Agreement. The Executive
				waives as a Good Reason event the change in the determination of
				his SERP benefits made by the last sentence of Section 3.4 and
				the last sentence of Section 4(a) of Amended and Restated
		Exhibit B attached hereto.

		(g)     Upon written notice by the
				Executive to the Company of the Executive's voluntary
				termination of employment without Good Reason (which the Company
				may, in its sole discretion, make effective earlier than any
				notice date). 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. 

	

Section 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, subject to Section 7(e), 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"). 

        6.2     Termination Due To Disability. If the
Employment Term ends as a result of Disability pursuant to Section 5(b) above,
the Executive shall be entitled, in lieu of any other payments or benefits (but
subject to the last sentence of such Section 5(b)), to any Accrued Obligations.

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

	
		(a)     Payment of the Prorated
				Portion (as determined in the next sentence) of the earned
				annual incentive compensation award for the fiscal year in which
				the Executive's termination occurs, payable promptly after
				the end of such fiscal year. "Prorated Portion" shall be
				determined by multiplying such amount by a fraction, the
				numerator of which is the number of days during the fiscal year
				of termination that the Executive is employed by the Company,
				and the denominator of which is, 365.

		(b)     Continued payment off
				payroll for two years (in approximately equal monthly
				installments) of an amount equal to two times the sum of (i) the
				Executive's Base Salary and (ii) the higher of (x) the
				Executive's target incentive compensation established for
				the fiscal year in which the Executive's termination occurs
				or (y) a multiple thereof equal to the product of such target
				amount and the multiple of target earned by the Executive for
				the prior fiscal year (whether or not deferred) (the sum of (i)
				and (ii) being hereinafter referred to as the "Final Annual
				Compensation").

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

		(d)     Payment, within thirty (30)
				business days following such termination, of a lump sum amount
				equal to the present discounted value of any "Credit Date
				Payments" (as described in Section 9 of Amended and
				Restated Exhibit B) then remaining unpaid, with the amount
				of each such unpaid Credit Date Payment being discounted back to
				the date of payment under this Section 6.3(d) at a
				discount rate of 5.65% per annum.

	

        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.

Section 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, defense or other right which the Company may have
				against the Executive or others, except as specifically set
				forth in Section 9 hereof or upon obtaining by the Company of a
				final unappealable judgment against the Executive.

		(b)     Any amounts payable and
				benefits or additional rights provided pursuant to Section 6.3
				or Section 8.1 beyond any Accrued Obligations and beyond the sum
				of any amounts due (without execution of a release) under the
				Company severance program then in effect, or, if greater, three
				(3) months Base Salary as severance, shall only be payable if
				the Executive delivers to the Company a release of all claims of
				the Executive (other than those specifically payable or
				providable hereunder on or upon the applicable type of
				termination and any rights of indemnification under the
				Company's organizational documents) with regard to the
				Company, its subsidiaries and related entities and their
				respective past or present officers, directors and employees in
				such form as reasonably requested by the Company.

		(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.

		(d)     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 to
				the extent they are duplicative.

		(e)     The intent of the parties is
				that all payments hereunder shall be in accordance with Section
				409A of the Internal Revenue Code ("Section 409A") and this
				Agreement shall be interpreted accordingly. The parties shall
				modify this Agreement as necessary to assure such compliance. To
				the extent that the Executive is a "Specified Employee," within
				the meaning of Section 409A, any payments paid as a result of
				separation from service (within the meaning of Section 409A),
				other than upon death, shall not be paid until the earlier of
				six (6) months after such separation from service and
				Executive's death (the "Delay Period") and all payments that
				otherwise become due during such Delay Period shall be promptly
				paid in a lump sum after it has expired. Furthermore in such
				situation, to the extent required by Section 409A, the Executive
				shall pay the premiums of all benefits to be provided during the
				Delay Period and shall promptly after the end of the Delay
				Period be reimbursed by the Company therefor.

	

8.     Change in Control

        8.1     Employment Termination in Connection with a
Change in Control. In the event of a Qualifying Termination (as defined
below) 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, but subject to Section 7(e), the Company
shall pay the Executive the following amounts within (except as otherwise
provided) thirty (30) business days of the Qualifying Termination (or, if later,
the effective date of the Change in Control; in which case any amounts or
benefits previously paid pursuant to Section 6 shall be setoff against those
under this Section 8) and provide the following benefits:

	
		(a)     Any Accrued Obligations.

		(b)     A lump-sum cash payment
				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.

		(c)     A lump-sum cash payment
				equal to the Prorated Portion of the greater of: (i) the
				Executive's target annual incentive compensation award
				established for the fiscal year during which the Executive's
				award termination occurs, or (ii) the Executive's earned
				annual incentive award for the fiscal year prior to the fiscal
				year in which the Change in Control occurs (whether or not
				deferred).

		(d)     A lump-sum cash payment
				equal to three (3) times the greater of: (i) the Executive's
				highest annual incentive compensation earned over the three (3)
				fiscal years ending prior to the Change in Control (whether or
				not deferred); or (ii) the Executive's target incentive
				compensation established for the fiscal year in which the
				Executive's date of termination occurs.

		(e)     To the extent the Executive
				is eligible, was eligible prior or after the Change in Control
				or if the Executive would be eligible with credit for an
				additional three (3) years of age and service credit, coverage
				under all applicable retiree health and other retiree welfare
				plans for the Executive and the Executive's eligible
				dependents (including an adjustment to the extent necessary to
				put the Executive on the same after tax basis as if the
				Executive had been eligible for such coverage).

		(f)     To the extent eligible prior
				or after the Change in Control, continued participation,
				(coordinated with (e) above to the extent duplicative), at no
				additional after tax cost to the Executive than the Executive
				would have as an employee, in all welfare plans, 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. To the extent such coverage cannot be
				provided under the Company's welfare benefit plans without
				jeopardizing the tax status of such plans, for underwriting
				reasons or because of the tax impact on the Executive, the
				Company shall pay the Executive an amount such that the
				Executive can purchase such benefits separately at no greater
				after tax cost to him than he would have had if the benefits
				were provided to him as an employee.

		(g)     A lump-sum cash payment
				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
				SBP, and assuming the benefit was fully vested without regard to
				any minimum age or service requirements. For this purpose, such
				benefits shall be calculated under the assumption that the
				Executive's employment continued following the date of
				termination for three (3) full years (i.e., three (3) additional
				years of age (including, but not limited to, for purposes of
				determining the actuarial present value but not the commencement
				date for calculation of benefits (all of which shall be deemed
				to commence on the date of termination)), compensation (the
				Executive's "Then Compensation Level") and service credits
				shall be added). "Then Compensation Level" shall mean an annual
				rate of compensation equal to the sum of (i) Final Annual
				Compensation and (ii) the performance units and performance
				share units earned with respect to the measurement periods
				ending at or about the end of the fiscal year immediately
				preceding the year of termination (to the extent recognized in
				the definition of "Compensation" under the applicable plan; in
				the case of the SERP as provided in Section 3.4 above such that
				no amounts deemed earned in respect of performance share units
				in 2008 (i.e. any grant after the 2005 grant) or later years
				shall be included in Compensation for purposes of the SERP);
				provided, however, that with respect to the year of termination,
				in lieu of utilization of the amount in clause (ii) above, the
				Executive will be deemed to have received in the year of
				termination the full amount of performance units and performance
				share units earned with regard to the measuring periods ending
				on or about the end of the fiscal year immediately preceding the
				year of termination (whether or not such amount is actually paid
				to the Executive prior to the date of termination); provided,
				further, that, other than as set forth in the immediately
				preceding proviso, the amounts described in clause (ii) above
				shall be included in "Compensation" under the plans referred to
				in this Section 8.1(g) in lieu of any amounts actually paid
				to the Executive in respect of performance units and performance
				share units in the year of termination and thereafter.

		(h)     Three (3) times the amount
				of the maximum Company contribution or match to any defined
				contribution type plan in which the Executive participates.

		(i)     A lump-sum cash payment
				of the product of (i) the Interest Factor (as determined in the
				next sentence) multiplied by (ii) the Executive's entire
				account balance under the Deferred Income Plan (or any
				replacement therefor), plus an additional amount equal to three
				(3) times the match which the Company made for the Executive to
				such plan for the fiscal year ending immediately prior to the
				Change in Control. The "Interest Factor" shall be equal to one
				(1) plus three (3) times the rate of earnings of the
				Executive's account under such plan for the fiscal year
				ending immediately prior to his termination.

		(j)     Immediate full vesting of
				any outstanding stock options, performance share units and other
				equity awards (and lapse of any forfeiture provisions) to the
				extent permitted under the plan or grant, or if full vesting is
				not permitted with regard to stock options, a cash payment equal
				to the difference between the fair market value of the shares
				covered by the unvested options and the exercise price of such
				unvested options on such unvested options on the date of
				termination (or, if later, the date of the Change in Control).

		(k)     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.

		(l)     Continuation of
				participation for three (3) additional years in the
				Company's programs with regard to tax preparation assistance
				and financial planning assistance, club dues and automobile (but
				based on the automobile then being used and no new one), in
				accordance with the Company's programs in effect at the time
				of the Change in Control.

		(m)     Payment of a lump sum amount
				equal to the present discounted value of any "Credit Date
				Payments" (as defined in Section 9 of Amended and
				Restated Exhibit B) then remaining unpaid, with the amount
				of each such unpaid Credit Date Payment being discounted back to
				the date of payment under this Section 8.1(m) at a
				discount rate of 5.65% per annum.

	

        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.

        8.2     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.

	

        8.3     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.

9.     Noncompetition, Confidentiality and
Nondisparagement

        9.1     Agreement Not to Compete.

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

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

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

	

        9.2     Definitions.

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

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

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

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

	

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

        9.4     Confidential Information.

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

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

	

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

        9.6     Remedies.

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

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

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

	

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

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

				
				        9.9 Nondisparagement.

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

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

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

					

        9.10     Pooling of Interests. If the
Company is involved in any proposed business combination that is contemplated to
be accounted for as a pooling of interests, the Executive agrees to cooperate
with the reasonable requests of the Company with regard to the exercise of stock
options, the sale of Company stock or other matters that could affect the
ability of the combination to be accounted for as a pooling of interests. 

10.     Liability Insurance

        The Company shall cover the Executive under directors and officers liability
insurance both during and, while potential liability exists, after the
Employment Term in the same amount and to the same extent, if any, as the
Company covers its then current officers and directors.

11.     Assignment

        11.10     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

        12.11     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 in connection with any dispute arising hereunder; 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.

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

        12.3     Notice. Any notices, requests, demands,
or other communications provided for by this Agreement shall be sufficient if in
writing and if delivered personally, sent by telecopier, sent by an overnight
service or sent by registered or certified mail. Notice to the Executive not
delivered personally (or by telecopy where the Executive is known to be) shall
be sent to the last address on the books of the Company, and notice to the
Company not delivered personally (or by telecopy to the known personal telecopy
of the person it is being sent to) shall be sent to it at its principal office.
All notices to the Company shall be delivered to the Chief Executive Officer
with a copy (not itself constituting notice) to the Executive Vice President,
Human Relations. A copy (not itself constituting notice) of any notice to the
Executive shall be delivered to Jerry L. Shulman, Williams & Connolly LLP, 725
12th Street, N.W., Washington, D.C. 20005. Delivery shall be deemed
to occur on the earlier of actual receipt or tender and rejection by the
intended recipient.

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

13.     Miscellaneous

        13.12     Entire Agreement. This Agreement and
each Exhibit hereto, except to the extent specifically provided otherwise herein
or therein, supersedes any prior agreements or understandings, oral or written,
between the parties hereto with respect to the subject matter hereof and
constitutes the entire agreement of the parties with respect to the subject
matter hereof. In the event of any discrepancy or conflict between this
Agreement and either Exhibit, the provisions of the Exhibit shall prevail. To
the extent any severance plan or program of the Company that would apply to the
Executive is more generous to the Executive than the provisions hereof, the
Executive shall be entitled to any additional payments or benefits that are not
duplicative, but shall otherwise not be eligible for such plan or program.

        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.

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.

[signatures begin on next page]

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

	
		
			
				
					
						   /s/Terrence O'Donnell                               
						
 TERRENCE O'DONNELL

					

				

			

		

	

 

	
		
			
				
					
						 TEXTRON INC.

					

				

			

		

	

 

	
		
			
				
					
						 By:  /s/John D. Butler                                                           
						

						      Name:  John D.
								Butler
      Title:  EVP, Admin and CHRO

					

				

			

		

	

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.

            (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, such excess shall constitute a loan by the Company to the
Executive, payable on the fifth day after demand by the Company (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.

AMENDED AND RESTATED

EXHIBIT B TO 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

OF TERRENCE O'DONNELL

DATED AS OF MAY 2, 2006 (the "Employment Agreement")

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

1) Hiring Bonus:          

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

	
	2) Performance Share Units:          

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

	a) Cycle
		2000          4,000
		PSU's

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

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

	
	3) Stock Options:

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

	
	4) Special Pension Calculations

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

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

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

	5) Deferred Income Plan

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

	
	6) Perquisites

The Executive shall be entitled to:

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

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

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

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

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

	
	7) Travel between Providence, Rhode Island and Washington, DC

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

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

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

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

	
	8) Special Relationship with W&C

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

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

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

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

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

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

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

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

	
	9)      Credit Date Payments

Beginning as of January 1, 2006, and continuing on each anniversary thereof
through and including January 1, 2009 (each a "Credit Date"), Textron
will credit the Executive's Moody's Account within Textron's
Deferred Income Plan for Textron Key Executives (the "Deferred Income Plan")
with the sum of $157,465.00 per year over and above any other deferred income
credited to any account of the Executive within the Deferred Income Plan (each
such additional payment, a "Credit Date Payment"), provided, however,
that no such additional Credit Date Payment shall be credited as of any Credit
Date (a) unless the Executive is, as of such Credit Date, an employee of
Textron, or (b) as otherwise provided in Sections 6.3(d) or 8.1(i) of the
Agreement. Notwithstanding anything to the contrary set forth in the Employment
Agreement or this First Amendment, Credit Date Payments shall not be included in
measuring the Executive's compensation for purposes of any of the
Company's pension plans.

	
	10) Approvals

To the extent that any commitment or covenant of the Company contained in
either the Employment Agreement or this Amended and Restated Exhibit B,
including without limitation the provisions of Sections 4 and 5 of this Amended
and Restated Exhibit B, shall constitute an exception to normal compensation or
benefit policies of the Company for its key executives, the Organization and
Compensation Committee of the Board of Directors of the Company shall promptly
and expressly approve such exceptions.Exhibit 10.4

SECOND AMENDMENT entered into as of the 4th day of May, 2006 to the
employment agreement entered into as of July 23, 1998 (as amended by First
Amendment dated as of May 6, 2005 the "Employment Agreement") by and between
Textron, Inc., a Delaware corporation, with its principal office at 40
Westminster Street, Providence, Rhode Island 02903 (the "Company") and Lewis B.
Campbell (the "Executive").

W I T N E S S E T H :

WHEREAS, the Company and the Executive have previously entered into the
Employment Agreement; and

WHEREAS, the Company and Executive desire to amend the Employment
Agreement to clarify certain provisions.

	NOW, THEREFORE, the parties hereto agree as follows:

	1.     Section 6.3(b) is amended by adding at the
end thereof: 

	"(the sum of (i) and (ii) being hereinafter referred to as 'Final Annual
Compensation')."

	2.     Section 6.3(e) is amended to read as follows:

	"Two and one-half (2 1/2) additional years of service (including age
		as if such service was completed) and compensation credit (at the
		Executive's "Then Compensation Level") for benefit purposes under
		any defined benefit type retirement plan, including but not limited to
		the SERP and the SBP if then in effect, and, if the Executive is not
		eligible to receive benefits under any such plan on the date of
		termination, two and one-half (2 1/2) additional years of age for
		determining eligibility to receive such benefits, provided that benefits
		under any such plan will not commence until the Executive actually
		attains the required distribution age under the plan or the
		Executive's spouse qualifies for death benefits under such plan and
		further provided that, with regard to any plan qualified under Section
		401(a) of the Internal Revenue Code of 1986, as amended (the "Code"),
		the additional amounts may be provided on a nonqualified plan basis.
		"Then Compensation Level" shall mean an annual rate of compensation
		equal to the sum of (i) Final Annual Compensation and (ii) the
		performance units and performance share units earned with respect to the
		measurement periods ending at or about the end of the fiscal year
		immediately preceding the year of termination (to the extent recognized
		in the definition of 'Compensation' under the applicable plan;
		in the case of the SERP as provided in Section 3.4 above such that no
		amounts deemed earned in respect of performance share units in 2007
		(i.e. any grant after the 2004 grant) or later years shall be included
		in Compensation for purposes of the SERP); provided, however, that with
		respect to the year of termination, in lieu of utilization of the amount
		in clause (ii) above, the Executive will be deemed to have received in
		the year of termination the full amount of performance units and
		performance share units earned with respect to the measuring periods
		ending on or about the end of the fiscal year immediately preceding the
		year of termination (whether or not such amount is actually paid to the
		Executive prior to the date of termination); provided, further, that,
		other than as set forth in the immediately preceding proviso, the
		amounts described in clause (ii) above shall be included in
		"Compensation" under the plans referred to in this Section 6.3(e) in
		lieu of any amounts actually paid to the Executive in respect of
		performance units and performance share units in the year of termination
		and thereafter."

	3.     Section 8.1(g) is amended to read as follows:

	     "(g) A lump-sum cash payment 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
		SBP, and assuming the benefit was fully vested (and commenced
		immediately upon such termination) without regard to any minimum age or
		service requirements. For this purpose, such benefits shall be
		calculated under the assumption that the Executive's employment
		continued following the date of termination for three (3) full years
		(i.e., three (3) additional years of age (including, but not limited to,
		for purposes of determining the early retirement factor and the
		actuarial present value, but not the commencement date of benefits for
		calculation purposes (all of which shall be deemed to commence on the
		date of termination)), compensation (at the Executive's Then
		Compensation Level) and service credits shall be added)."

	4.     Section 8.1(j) is amended to insert the words
"(at the maximum level)" after the word "units" on the first line thereof.

	5.     Section 8.1 of the Employment Agreement is
amended by adding the following new subsection at the end of such section:

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

	

	6.     The Employment Agreement, as amended herein,
shall remain in full force and effect.

	    IN WITNESS WHEREOF, the Company has caused this Amendment to be executed
by its duly and authorized officer and the Executive has hereunto set his hand
as of the date first above written.

                                                                                             TEXTRON
INC.

                                                                                             By:     /s/Terrence
O'Donnell                   

                                                                                                       Name: 
							Terrence O'Donnell
                                                                                                       Title:  EVP, General Counsel

 

	
		                                                                         EXECUTIVE

 

	

                   
                                                                          
/s/Lewis
					B. Campbell                       

                                                                                             Lewis
B. Campbell

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