Document:

exhibit10-6.htm

    Exhibit
      10.6

    

    

    

    

    

    TEXTRON

    

    

    

    
      	
               

              TEXTRON
                SPILLOVER PENSION PLAN

              ____________________

               

              As
                Amended and Restated

              Effective
                January 1, 2008

               

               

            

    

    

    

    Textron
      Spillover Pension Plan

    Amended
      and Restated January 1, 2008

    

    Table
      of Contents

    

    

    Introduction                  

     

    Article
      I – Definitions  

    1.01           Beneficiary

    1.02           Benefits
      Committee 

    1.03           Board 

    1.04           Change
      in Control 

    1.05           Compensation 

    1.06           Compensation
      Base 

    1.07           ERISA 

    1.08           Executive
      Plan 

    1.09           Grandfathered
      Formula 

    1.10           Grandfathered
      Participant

    1.11           IRC 

    1.12           Key
      Executive Plan 

    1.13           Participant 

    1.14           Pension
      Plan 

    1.15           Plan 

    1.16           Plan
      Administrator 

    1.17           Retirement
      Age 

    1.18           Separation
      From Service 

    1.20           Statutory
      Limit 

    1.21           Textron 

    1.22           Textron
      Company 

    1.23           Textron
      Retirement Program 

    1.24           Total
      Disability 

    

    Article
      II – Participation 

    2.01           Eligibility
      and
      Participation 

    2.02           Period
      of Participation 

    

    Article
      III – Spillover Pension Benefit
      Amounts 

    3.01           Retirement
      Benefits 

    3.02           Grandfathered
      Participants 

    3.03           Calculation
      of Benefits 

    3.04           Other
      Forms of Benefit 

    3.05           Benefit
      Upon Transfer of
      Liability 

     

    Page
      i

    

    Article
      IV – Vesting 

    4.01           Vesting
      Schedule 

    4.02           Change
      in Control 

    

    Article
      V – Distribution of
      Benefits 

    5.01           Automatic
      Distributions 

    5.02           Spousal
      Consent 

    5.03           Time
      and Form of
      Distribution 

    5.04           Lump-sum
      Distribution 

    5.05           Six-Month
      Delay for Specified
      Employees 

    5.06           Automatic
      Cash-Out 

    5.07           Disability
      Benefits 

    5.08           Payment
      of Death Benefits 

    5.09           Administrative
      Delay in
      Payment 

    5.10           Distribution
      Upon Change in
      Control 

    5.11           Change
      in Payment Election 

    

    Article
      VI – Unfunded Plan 

    6.01           No
      Plan Assets 

    6.02           Top-Hat
      Plan Status 

    

    Article
      VII – Plan
      Administration 

    7.01           Plan
      Administrator’s Powers 

    7.02           Tax
      Withholding 

    7.03           Use
      of Third Parties to Assist with Plan
      Administration

    7.04           Proof
      of Right to Receive
      Benefits 

    7.05           Claims
      Procedure 

    7.06           Enforcement
      Following a Change in
      Control 

    

    Article
      VIII – Amendment and
      Termination 

    8.01           Amendment 

    8.02           Termination 

    8.03           Distributions
      Upon Plan
      Termination 

    

    Article
      IX – Miscellaneous 

    9.01           Use
      of Masculine or Feminine
      Pronouns 

    9.02           Transferability
      of Plan
      Benefits 

    9.03           Section
      409A Compliance 

    9.04           Controlling
      State Law 

    9.05           No
      Right to Employment 

    9.06           Additional
      Conditions
      Imposed 

    

     

    Page
      ii

     

    Textron
      Spillover Pension Plan

     

    As
      Amended and Restated

    Effective
      January 1, 2008

     

    Introduction

     

    The
      Textron Spillover Pension Plan (the “Plan”) is an unfunded, nonqualified
      deferred compensation arrangement.  The Plan is a continuation
      of the defined benefit portions of the Supplemental Benefits Plan for
      Textron Key Executives (the “Key Executive Plan”) and the Textron Supplemental
      Benefits Plan for Executives (the “Executive Plan”).  The defined
      benefit portions of these plans were combined to form the Plan effective January
      1, 2007.  The defined contribution portions of the Key Executive
      Plan and the Executive Plan were continued as separate plans on and after
      January 1, 2007, and were combined to form the Textron Spillover Savings Plan
      effective January 1, 2008.  The Textron Spillover Pension Plan was
      amended and restated, effective January 1, 2008, to reflect the final
      regulations interpreting Section 409A of the
      Internal Revenue Code of 1986, as amended (the “IRC”) and
      to incorporate certain other changes.

     

    The
      Plan
      provides supplemental pension benefits for designated executives of Textron
      and its affiliates who participate in the Textron Retirement
      Program.  The Plan provides benefits that would have been payable
      under one of the tax-qualified defined benefit plans in the Textron Retirement
      Program if not for the limits imposed by the Internal Revenue
      Code.  For certain executives who participated in the Key Executive
      Plan or the Executive Plan on December 31, 2006, the Plan also provides benefits
      based on an expanded definition of compensation, and benefits corresponding
      to
      the grandfathered benefits under the Textron Retirement Program.

     

    Appendix
      A and Appendix B of the Plan set forth the defined benefit provisions of the
      Key
      Executive Plan and the Executive Plan as in effect on October 3, 2004, when
      IRC
      Section 409A was enacted as part of the American Jobs Creation Act of
      2004.  Supplemental pension benefits that were earned and vested
      (within the meaning of Section 409A) before January 1, 2005, and any subsequent
      increase that is permitted to be included in such amounts under Section
      409A, are calculated and paid solely as provided in Appendix A or Appendix
      B, whichever is applicable, and are not subject to any other provisions of
      the
      Textron Spillover Pension Plan.

     

    Supplemental
      pension benefits that were earned or vested after 2004 and before 2007 are
      subject to the provisions of IRC Section 409A.  These benefits are
      calculated under Appendix A or Appendix B, whichever is applicable, but are
      paid
      exclusively as provided in the Textron Spillover Pension Plan (not including
      any
      appendix to the Plan).  Although the provisions of the Textron
      Spillover Pension Plan generally are effective as of January 1, 2007, the
      provisions that govern the distribution of benefits earned or vested after
      2004
      under the Key Executive Plan or the Executive Plan are effective as of January
      1, 2005.

     

    Page
      1

     

    Article
      I – Definitions

    

    The
      following terms shall have the meanings set forth in this Article, unless a
      contrary or different meaning is expressly provided:

    

    
      	
              1.01  

            	
              “Beneficiary”
                means the person designated under the Plan (including any person
                who is
                automatically designated by the terms of the Plan) to receive any
                death
                benefit or pre-pension survivor annuity, or survivor annuity payable
                with
                respect to a Participant.  A Participant’s trust or estate may
                also be the Participant’s Beneficiary for a death benefit other than a
                life annuity.

            

    

    

    
      	
              1.02  

            	
              “Benefits
                Committee” means the Employee Benefits Committee of
                Textron.

            

    

    

    
      	
              1.03  

            	
              “Board”
                means the Board of Directors of
                Textron.

            

    

    

    
      	
              1.04  

            	
              “Change
                in Control” means, for any Participant who was not an employee of a
                Textron Company on December 31,
                2007:

            

    

    

    
      	
               

            	
              (a)

            	
              any
                “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of
                the Securities Exchange Act of 1934, as amended (the “Act”) and of IRC
                Section 409A) other than Textron, any trustee or other fiduciary
                holding
                Textron common stock under an employee benefit plan of Textron or
                a
                related company, or any corporation which is owned, directly or
                indirectly, by the stockholders of Textron in substantially similar
                proportions as their ownership of Textron common
                stock

            

    

    

    
      	
               

            	
              (1)

            	
              becomes
                (other than by acquisition from Textron or a related company) the
                “beneficial owner” (as defined in Rule 13d-3 under the Act) of stock of
                Textron that, together with other stock held by such person or group,
                possesses more than 50% of the combined voting power of Textron’s
                then-outstanding voting stock, or

            

    

    

    
      	
               

            	
              (2)

            	
              acquires
                (or has acquired during the 12-month period ending on the date of
                the most
                recent acquisition by such person) beneficial ownership of stock
                of
                Textron possessing more than 30% of the combined voting power of
                Textron's
                then-outstanding stock, or

            

    

    

    
      	
               

            	
              (3)

            	
              acquires
                (or has acquired during the 12-month period ending on the date of
                the most
                recent acquisition by such person) all or substantially all of the
                total
                gross fair market value of all of the assets of Textron immediately
                prior
                to such acquisition or acquisitions (where gross fair market value
                is
                determined without regard to any associated liabilities);
                or

            

    

     

     

    Page
      2

    
 

    
      	
               

            	
              (b)

            	
              a
                merger or consolidation of Textron with any other corporation occurs,
                other than a merger or consolidation that would result in the voting
                securities of Textron outstanding immediately before the merger or
                consolidation continuing to represent (either by remaining outstanding
                or
                by being converted into voting securities of the surviving entity)
                50% or
                more of the combined voting power of the voting securities of Textron
                or
                such surviving entity outstanding immediately after such merger or
                consolidation, or

            

    

    

    
      	
               

            	
              (c)

            	
              during
                any 12-month period, a majority of the members of the Board is replaced
                by
                directors whose appointment or election is not endorsed by a majority
                of
                the members of the Board of Directors before the date of their appointment
                or election.

            

    

    

    Each
      of
      the events described above will be treated as a “Change in Control” only to the
      extent that it is a change in ownership, change in effective control, or change
      in the ownership of a substantial portion of Textron’s assets within the meaning
      of IRC Section 409A.

    

    For
      any
      Participant who was an employee of a Textron Company on December 31, 2007,
      the
      definition set forth above in this Section 1.04
      shall be used to determine whether an event is a “Change in Control” to the
      extent that the event would alter the time or form of payment of the
      Participant’s benefit.  To the extent that the event would cause any
      change in the Participant’s rights under the Plan that does not affect the
      status of the Participant’s benefit under IRC Section 409A (including, but not
      limited to, accelerated vesting of the Participant’s benefit or restrictions on
      amendments to the Plan), the definition set forth in Section 6.03 of Appendix
      A
      shall be used to determine whether the event is a “Change in
      Control.”

    

    
      	
              1.05  

            	
              “Compensation”
                means a Participant’s annual compensation determined as
                follows:

            

    

    

    
      	
               

            	
              (a)

            	
              For
                years after 2006, Compensation means eligible annual compensation
                as
                defined under the corresponding benefit formula in the Participant’s
                Pension Plan, without regard to the Statutory Limits, subject to
                the
                modifications described in this Section 1.05(a).  For any executive who was
                first awarded performance share units before October 27, 1999,
                Compensation shall include payments made under performance share
                units
                (regardless of when the units are awarded); but Compensation shall
                not
                include amounts attributable to performance share units for any executive
                who was first awarded performance share units after October 26,
                1999.  Compensation shall include a Participant’s elective
                deferrals under the Deferred Income Plan for Textron Key Executives,
                the
                Textron Deferred 

            

    

     

    Page
      3

     

    
      	
               

            	
               

            	
              Income
                Plan for Executives, and the Deferred Income Plan for Textron Executives
                (and, if applicable, shall also include the automatic deferral of
                a
                Participant’s performance shares, performance share units, or annual
                incentive bonus exceeding 100% of the target bonus), but only to
                the
                extent that these amounts would have been included in Compensation
                if they
                had not been deferred.

            

    

    
 

    
      	
               

            	
              (b)

            	
              For
                any individual who participated in the Key Executive Plan before
                2007,
                Compensation for each year before 2007 shall be determined under
                Section
                1.03 of Appendix A.

            

    

    

    
      	
               

            	
              (c)

            	
              For
                any individual who participated in the Executive Plan (but not in
                the Key
                Executive Plan) before 2007, Compensation for each year before 2007
                shall
                be determined under Section 1.03 of Appendix
                B.

            

    

    

    
      	
               

            	
              (d)

            	
              If
                a year before 2007 is included in the Participant’s Compensation Base
                under the Plan, and the Participant did not participate in the Key
                Executive Plan or the Executive Plan before 2007, Compensation for
                that
                year shall be determined as provided in Section 1.05(a),
                above.

            

    

     

    
      	
              1.06  

            	
              “Compensation
                Base” means a Participant’s final average compensation, determined as
                provided in the Pension Plan, but substituting Compensation as defined
                in
                Section 1.05 of the Plan for the
                Participant’s annual compensation under the Pension
                Plan.

            

    

    

    
      	
              1.07  

            	
              “ERISA”
                means the Employee Retirement Income Security Act of 1974, as
                amended.

            

    

    

    
      	
              1.08  

            	
              “Executive
                Plan” means the Textron Supplemental Benefits Plan for Executives, as in
                effect before January 1, 2007.  The defined benefit provisions
                of the Executive Plan are included in this Plan as Appendix
                B.

            

    

    

    
      	
              1.09  

            	
              “Grandfathered
                Formula” means the benefit formula, early retirement eligibility
                provisions, and early retirement factors in effect under a Participant’s
                Pension Plan on December 31, 2006, as used to determine benefits
                earned
                after 2006.

            

    

    

    
      	
              1.10  

            	
              “Grandfathered
                Participant” means any employee who participated in either the Key
                Executive Plan or the Executive Plan as of December 31, 2006; who
                continued to participate in the Plan after 2006; and who did not
                satisfy
                the requirements (described in Section 3.02)
                to receive a grandfathered benefit under the Textron Retirement
                Program.

            

    

     

    Page
      4

    
 

    
      	
              1.11  

            	
              “IRC”
                means the Internal Revenue Code of 1986, as amended.  References
                to any section of the Internal Revenue Code shall include any final
                regulations interpreting that
                section.

            

    

    

    
      	
              1.12  

            	
              “Key
                Executive Plan” means the Supplemental Benefits Plan for Textron Key
                Executives, as in effect before January 1, 2007.  The defined
                benefit provisions of the Key Executive Plan are included in this
                Plan as
                Appendix A.

            

    

    

    
      	
              1.13  

            	
              “Participant”
                means an employee of Textron who is eligible to participate in the
                Plan
                pursuant to Section 2.01 and whose
                participation has not been terminated as provided in Section 2.02.

            

    

    

    
      	
              1.14  

            	
              “Pension
                Plan” means a tax-qualified defined benefit plan that is part of the
                Textron Retirement Program, including (but not limited to) the Bell
                Helicopter Textron Retirement Plan (part of the Bell Helicopter Textron
                Master Retirement Plan), the Textron Pension Plan for Cessna Employees
                (Addendum F to the Textron Master Retirement Plan), and the Textron
                Pension Plan (Addendum A to the Textron Master Retirement
                Plan).

            

    

    

    
      	
              1.15  

            	
              “Plan”
                means this Textron Spillover Pension Plan, as amended and restated
                from
                time to time.

            

    

    

    
      	
              1.16  

            	
              “Plan
                Administrator” means Textron or its designees, as described in Section 7.01.

            

    

    

    
      	
              1.17  

            	
              “Retirement
                Age” means the age specified by the Participant for the commencement of
                benefits under this Plan, which may be age 55, 62, or
                65.

            

    

    

    
      	
              1.18  

            	
              “Separation
                From Service” means a Participant’s termination of employment with all
                Textron Companies, other than by reason of death or Total Disability,
                that
                qualifies as a “separation from service” for purposes of IRC Section
                409A.

            

    

    

    
      	
              1.19  

            	
              “Statutory
                Limit” means any limit on benefits under tax-qualified defined benefit
                plans imposed by IRC Section 401(a)(17) or Section
                415.

            

    

    

    
      	
              1.20  

            	
              “Textron”
                means Textron Inc., a Delaware corporation, and any successor to
                Textron
                Inc.

            

    

    

    
      	
              1.21  

            	
              “Textron
                Company” means Textron or any company controlled by or under common
                control with Textron within the meaning of IRC Section 414(b) or
                (c).

            

    

     

    Page
      5

     

    
      	
              1.22  

            	
              “Textron
                Retirement Program” means a floor-offset retirement arrangement consisting
                of a floor benefit provided under a Pension Plan and an offset benefit
                provided under the Textron Inc. Retirement Account
                Plan.

            

    

    

    
      	
              1.23  

            	
              “Total
                Disability” means physical or mental incapacity of a Participant who is
                employed by a Textron Company on the disability date, if the incapacity
                (a) enables the Participant to receive disability benefits under the
                Federal Social Security Act, and (b) also qualifies as a “disability” for
                purposes of IRC Section
                409A(a)(2)(C).

            

    

    

    Article
      II – Participation

    

    
      	
              2.01  

            	
              Eligibility
                and Participation.  An employee who is a participant in a
                Pension Plan shall become a Participant in the Plan upon either:
                (a) (1)
                being designated by Textron’s Chief Executive Officer and Chief Human
                Resources Officer as an eligible executive and (2) having compensation,
                as
                defined in the Pension Plan, that exceeds the limit of IRC Section
                401(a)(17), or (b) participating in the Deferred Income Plan for
                Textron Executives.  

            

    

    

    
      	
              2.02  

            	
              Period
                of Participation.  Once an employee becomes a Participant
                under Section 2.01 above, the employee shall remain a Participant
                (even if
                his or her compensation, as defined in the Pension Plan, subsequently
                falls below the IRC Section 401(a)(17) limit) until the employee’s benefit
                under the Plan is fully distributed, or until the employee’s participation
                in the Plan is terminated by the Board (or by the Chief Executive
                Officer
                and the Chief Human Resources Officer) effective as of the following
                January 1.

            

    

    

    Article
      III – Spillover Pension Benefit Amounts

    

    
      	
              3.01  

            	
              Retirement
                Benefits.  The benefit payable under the Plan to a
                Participant who is not a Grandfathered Participant shall be (a) the
                benefit that would have been payable under the Pension Plan if the
                Statutory Limits were ignored and Compensation Base were determined
                as
                provided under Section 1.06, minus
                (b) the benefit that actually would be payable under the Pension Plan
                at the same time and in the same
                form.

            

    

    

    
      	
              3.02  

            	
              Grandfathered
                Participants.  Under the Textron Retirement Program, a new
                Pension Plan formula became effective on January 1, 2007.  Any
                Participant who, as of January 1, 2007, was vested, and whose age
                and
                years of service combined were at least 55, was grandfathered in
                his or
                her prior Pension Plan formula, early retirement eligibility provisions,
                and early retirement factors.  For service after 2006, a
                Participant who was grandfathered under the Textron Retirement Program
                will receive the greater of the benefit determined under the new
                Pension
                Plan formula and the benefit determined as if the Grandfathered Formula
                had remained

            

    

    
    

     

    Page
      6

    

    
      	
                

            	
              in
                effect after 2006.  Textron wishes to provide a comparable
                benefit under this Plan for certain Participants who participated
                in the
                Key Executive Plan or the Executive Plan on December 31, 2006, but
                who did
                not satisfy the requirements to be grandfathered under the Textron
                Retirement Program.  Accordingly, the benefit payable under the
                Plan to any Participant who is a Grandfathered Participant as defined
                in
                Section 1.10 shall be (a) the greater of (i)
                the benefit determined under the Pension Plan formula applicable
                to the
                Participant and (ii) the benefit that would have accrued under the
                Pension Plan if the Grandfathered Formula had remained in effect
                after
                2006, determined in each case without regard to the Statutory Limits
                and
                using Compensation Base as defined in Section 1.06, minus (b) the benefit that actually
                would
                be payable under the Pension Plan (without using the Grandfathered
                Formula) at the same time and in the same
                form.  

            

    

    
    

    

    
      	
              3.03  

            	
              Calculation
                of Benefits.  In determining benefits for any purpose under
                the Plan or under the Pension Plan, the following rules shall
                apply:

            

    

    

    
      	
               

            	
              (a)

            	
              All
                benefits shall be determined without taking into account any offset
                for
                the value of the Participant’s account under the Textron Inc. Retirement
                Account Plan.

            

    

    

    
      	
               

            	
              (b)

            	
              If
                a benefit under the Plan commences before or after the Participant’s
                normal retirement age under the Pension Plan, the benefit under the
                Plan
                and under the Pension Plan shall be actuarially adjusted for early
                or late
                commencement as provided in the Pension
                Plan.

            

    

    

    
      	
               

            	
              (c)

            	
              When
                a benefit under the Plan is reduced by the corresponding benefit
                under the
                Pension Plan, the reduction shall be determined as if the Pension
                Plan
                benefit were commencing at the same time and were payable in the
                same form
                as the benefit under the Plan, regardless of whether the Participant
                has
                elected a different time or form of payment for the Pension Plan
                benefit.

            

    

    

    
      	
               

            	
              (d)

            	
              If
                it is necessary to determine the present value of a Participant’s benefit
                under the Plan for any reason, the present value shall be based on
                the
                Plan benefit commencing at the Participant’s age 65 (or the Participant’s
                death, in the case of a death benefit), and shall be determined using
                the
                1994 Group Annuity Reserving Table (unisex) based on a blend of 50%
                of the
                male mortality rates and 50% of the female mortality rates (if mortality
                is applicable in the calculation) and an interest rate of
                7%.

            

    

    

    
      	
               

            	
              (e)

            	
              A
                Participant’s benefit determined under Section 3.01 or Section 3.02 shall
                be increased as provided in Section
                5.04(c) if the Participant’s lump-sum ratio
                determined under that section exceeds 100%.  If the
                

            

    

     

    Page
      7

     

    
      	
               

            	
               

            	
              participant's
                benefit is paid in a form other than a lump sum, the actuarial assumptions
                specified in subparagraph (d), above, shall be used to convert the
                enhanced value of the Participant’s benefit to an annuity at age 65; the
                assumptions specified subparagraph (b) and (c), above, and in Section
3.04, below, shall be used to convert the
                additional age-65 annuity to the actual form of payment.  If the
                Participant dies before the Participant’s Separation From Service, the
                lump-sum ratio shall be determined at the time of the Participant’s death;
                if the lump-sum ratio is greater than 100%, the enhanced value of
                the
                Participant’s benefit shall be used to calculate any pre-pension survivor
                annuity or death benefit payable to the Participant’s
                Beneficiary

            

    

    
 

    
      	
               

            	
              (f)

            	
              Benefits
                earned before 2007 under the defined benefit portions of the Key
                Executive
                Plan or the Executive Plan shall be calculated solely as provided
                in
                Appendix A or Appendix B, whichever is
                applicable.

            

    

    

    
      	
              3.04  

            	
              Other
                Forms of Benefit.  Termination benefits, pre-retirement or
                post-retirement death benefits (include any death benefit and any
                surviving spouse benefit provided by a Textron Company at its sole
                cost
                through a Pension Plan), pre-pension survivor annuity benefits,
                post-pension survivor annuity benefits, disability benefits, and
                other
                optional forms of payment or ancillary benefits shall be based on
                the
                Participant’s benefit under the Plan, determined as provided in Section 3.01 or 3.02 and
                Section 3.03, and shall include any actuarial
                reduction, charge, survivor percentage, or other adjustment applicable
                to
                the corresponding form of payment under the Pension
                Plan.

            

    

    

    
      	
              3.05  

            	
              Benefit
                Upon Transfer of Liability.  In the event Textron transfers
                liability for a Participant’s benefit under a Pension Plan to another
                qualified plan, the Plan benefits under this Article III shall be
                determined as of the date of such transfer, unless otherwise determined
                by
                Textron in its sole discretion.

            

    

    

    Article
      IV – Vesting

    

    
      	
              4.01  

            	
              Vesting
                Schedule.  Participants shall vest in the Plan in the same
                manner as is provided for under the Pension
                Plan.

            

    

    

    
      	
              4.02  

            	
              Change
                in Control.  In the event of a Change in Control, all
                benefits accrued as of the date of the Change in Control shall become
                fully vested.  

            

    

    

    Article
      V – Distribution of Benefits

    

    
      	
              5.01  

            	
              Automatic
                Distributions.  Unless a Participant elected a different
                time and form of payment before 2008 under Section 5.11(d), below, the Participant’s benefit shall
                commence as of the later of age 55 or the first day of the seventh
                month
                

            

    

     

    Page
      8

     

     

    
      	
               

            	
              following
                Separation From Service, and shall be paid in the form of a single
                life
                annuity if the Participant is single when the distribution commences,
                or
                in the form of a joint and 50% surviving spouse annuity if the Participant
                is married when the distribution commences.  A Participant may
                change the automatic time or form of distribution to another time
                or form
                of distribution that is available under this Article V, subject to
                the
                spousal consent requirement in Section 5.02,
                below, and the rules governing changes in distribution elections
                in
                Section 5.11, below.  A Participant
                shall be deemed to have elected the automatic time and form of
                distribution unless the Participant changes his payment election
                as
                provided in Article V.

            

    

     

    
      	
              5.02  

            	
              Spousal
                Consent.  If a Participant is married when he or she makes a
                distribution election (including a change in a prior distribution
                election), the Participant must have the written consent of his or
                her
                spouse in order to elect any form of payment other than a joint and
                50%
                surviving spouse annuity.  If a Participant elects to receive a
                distribution in the form of an annuity, and the Participant marries
                or
                re-marries after the date of the distribution election, the Participant
                shall automatically receive an actuarially equivalent joint and 50%
                surviving spouse annuity unless his or her current spouse consents
                in
                writing to a different form of distribution.  Except as provided
                in the two preceding sentences, if a Participant has designated a
                person
                other than his or her spouse as a Beneficiary, the Participant may
                change
                the Beneficiary designation without the consent of his or her
                spouse.  A change in the Beneficiary designation alone (without
                a corresponding change in the time or form of distribution) shall
                not be
                subject to the requirements of Section 5.11.

            

    

    

    
      	
              5.03  

            	
              Time
                and Form of Distribution.  Subject to Section 5.01, a Participant may elect a time
                and form of
                distribution specified below for the portion of the Participant’s benefit
                under the Plan that is earned or vested after 2004 (including any
                portion
                of the Participant’s benefit that was earned or vested after 2004 under
                Appendix A or Appendix B).  Any portion of the Participant’s
                benefit that was earned and vested before 2005 shall be calculated
                and
                paid solely as provided in Appendix A or Appendix B, whichever is
                applicable, and shall not be subject to this Article
                V.

            

    

    

    
      	
               

            	
              (a)

            	
              A
                lump-sum distribution of the portion of the benefit determined under
                Section 5.04, payable on the first day of the
                seventh month following the Participant’s Separation From Service, with
                the remainder of the benefit (if any) payable as an annuity under
                subsection (c), below.

            

    

    

    
      	
               

            	
              (b)

            	
              A
                lump-sum distribution of the portion of the benefit determined under
                Section 5.04, payable on the later of (1) the
                first day of the seventh month following the Participant’s Separation From
                Service
                or (2) attainment of Retirement Age, with the remainder of the
                benefit (if any) payable as an annuity under subsection (c),
                below.

            

    

     

    Page
      9

     

    
      	
               

            	
              (c)

            	
              A
                joint and 50% survivor annuity, a joint and 75% survivor annuity,
                a joint
                and 100% survivor annuity, a single life annuity, or any other
                actuarially-equivalent single life annuity or joint and survivor
                annuity
                that the Participant is eligible to elect under the Participant’s Pension
                Plan, commencing on the later of (1) the first day of the seventh
                month
                following the Participant’s Separation From Service or (2) attainment of
                Retirement Age.

            

    

    

    A
      Participant’s benefit under the Plan will be paid pursuant to the most recent
      valid election in effect at the time of his Separation From Service (including
      an election the Participant is deemed to have made under the terms of the Plan),
      except as provided in Section 5.06 (automatic
      cash-out of small benefits), Section 5.07 (payments
      following Total Disability), Section 5.08 (payments
      following death), Section 5.09 (administrative
      adjustments), Section 5.10 (payments following a
      Change in Control), and Section 5.11(c)
      (distributions before 2008).

    

    
      	
              5.04  

            	
              Lump-sum
                Distribution.  A Participant may elect to receive a lump-sum
                distribution with respect to a portion of his benefit determined
                as
                follows:

            

    

    

    
      	
               

            	
              (a)

            	
              If
                the Participant is not a Grandfathered Participant, the Plan Administrator
                shall determine the ratio, as of the Participant’s Separation From
                Service, of (i) the value of the Participant’s account under the
                Retirement Account Plan to (ii) the present value of
                the benefit the Participant earned under the Pension Plan after 2006
                (without taking into account any offset for the value of the Participant’s
                account under the Retirement Account
                Plan).

            

    

    

    
      	
               

            	
              (b)

            	
              If
                the Participant is a Grandfathered Participant, the Plan Administrator
                shall determine the ratio in subsection (a), above, as if the Participant
                had satisfied the requirements to be grandfathered under the Textron
                Retirement Program, and had earned a benefit under the Pension Plan
                after
                2006 equal to the greater of the Participant’s actual post-2006 Pension
                Plan benefit and the benefit determined as if the Grandfathered Formula
                had remained in effect after 2006.   This paragraph shall
                apply solely for purposes of determining a Grandfathered Participant’s
                lump-sum ratio, and not for purposes of determining the amount of
                the
                Grandfathered Participant’s benefit under the Plan (except to the extent
                that the lump-sum ratio results in an enhancement of the Participant’s
                benefit under subsection (c)).

            

    

    

    
      	
               

            	
              (c)

            	
              The
                Plan Administrator shall apply the lump-sum ratio determined under
                subsection (a) or (b), whichever is applicable, to the present value
                (determined as of the date of the distribution) of the portion of
                the
                

            

    

     

    Page
      10

     

     

    
      	
               

            	
               

            	
              Participant’s
                benefit under the Plan that accrued after 2006.  The percentage
                of the present value determined by the lump-sum ratio shall be payable
                in
                a lump sum, and (except as provided in the following sentence) the
                remaining portion of Participant’s benefit payable under this Article V
                shall be paid as an annuity.  If the ratio determined under
                subsection (a) or (b) is greater than 100%, the present value of
                the
                Participant’s benefit under the Plan that accrued after 2006 shall be
                increased by a corresponding amount, and the Participant’s entire benefit
                under the Plan that was earned or vested after 2004 (including the
                enhancement) shall be payable in a lump sum; but no portion of the
                Participant’s benefit under the Plan that accrued before 2007 shall be
                enhanced by the lump-sum ratio.

            

    

    
 

    
      	
              5.05  

            	
              Six-Month
                Delay.  A Participant’s benefit shall not commence or be
                paid under this Article V earlier than six months after the date
                of the
                Participant’s Separation From Service.  A benefit paid as a
                result of the Participant’s Separation From Service shall be calculated as
                if it commenced or was paid on the first day of the month following
                the
                Separation From Service.  Any payments that otherwise would have
                been made during the initial six-month period shall be paid in a
                lump sum,
                without interest, on the first day of the seventh month after the
                Participant’s Separation From
                Service.

            

    

    

    
      	
              5.06  

            	
              Automatic
                Cash-Out.  If the present value of the benefit earned or
                vested after 2004 is $150,000 or less at the time of the Participant’s
                Separation From Service or death, then the Participant’s entire benefit
                earned or vested after 2004 shall be distributed in a single lump-sum
                payment (1) on the first day of the seventh month after the Participant’s
                Separation From Service or (2) on the first day of the month that
                is at
                least 30 days after the Participant’s death (subject, however, to the
                following sentence).  If a Participant’s Separation From Service
                or death occurs before 2008, and the Participant’s benefit has not
                commenced as provided in Section 5.11(c), the
                lump-sum payment described in the preceding sentence shall be made
                on the
                first business day of January in 2008.  A distribution under
                this Section 5.06 shall be made without
                regard to any payment election the Participant has made (or is deemed
                to
                have made) under Section 5.01 or Section 5.11(d).

            

    

    

    
      	
              5.07  

            	
              Disability
                Benefits.  If a Participant’s employment with all Textron
                Companies terminates as a result of the Participant’s Total Disability,
                the Participant’s benefit under the Plan shall commence or be paid, in the
                form the Participant elected (or is deemed to have elected), on the
                first
                day of the month following the later of the Participant’s Total Disability
                or attainment of age 65.

            

    

     

    Page
      11

     

    
      	
              5.08  

            	
              Payment
                of Death Benefits.

            

    

    

    
      	
               

            	
              (a)

            	
              If
                a Participant dies before his benefit under the Plan has commenced,
                and
                the Participant would be eligible for a pre-pension survivor annuity
                under
                the Pension Plan if he died before his benefit commencement date,
                the
                Participant’s Beneficiary shall receive an annuity for the life of the
                Beneficiary, commencing on the first day of the month following the
                later
                of the Participant’s Separation From Service or the date on which the
                Participant would have reached age 55.  The Participant’s
                Beneficiary must be a person who would have been eligible to receive
                the
                corresponding pre-pension survivor annuity under the Pension
                Plan.

            

    

    

    
      	
               

            	
              (b)

            	
              If
                a Participant dies before his benefit under the Plan has commenced,
                and
                the Participant would be eligible for a 60-month period certain death
                benefit under the Pension Plan if he died before his benefit commencement
                date, the Participant’s Beneficiary shall receive an amount equal to the
                present value of the corresponding monthly payments under the Plan,
                paid
                in a lump sum on the first day of the month that begins at least
                30 days
                after the Participant’s death.

            

    

    

    
      	
               

            	
              (c)

            	
              If
                a Participant dies less than 60 months after his benefit under the
                Plan
                has commenced, and the Participant would be eligible for a 60-month
                period
                certain death benefit under the Pension Plan if he died after his
                benefit
                commencement date, the Participant’s Beneficiary shall receive an amount
                equal to the present value of the corresponding monthly payments
                under the
                Plan for a number of months equal to 60 minus the number of monthly
                payments made to the Participant before his death, paid in a lump
                sum on
                the first day of the month that begins at least 30 days after the
                Participant’s death.

            

    

    

    
      	
               

            	
              (d)

            	
              The
                amount of any pre-pension survivor annuity or death benefit shall
                be
                determined as provided in Section 3.04.

            

    

    

    
      	
              5.09  

            	
              Administrative
                Adjustments in Payment Date.  A payment is treated as being
                made on the date when it is due under the Plan if the payment is
                made on
                the due date specified by the Plan, or on a later date that is either
                (a) in the same calendar year (for a payment whose specified due date
                is on or before September 30), or (b) by the 15th day of the third
                calendar month following the date specified by the Plan (for a payment
                whose specified due date is on or after October 1).  A payment
                also is treated as being made on the date when it is due under the
                Plan if
                the payment is made not more than 30 days before the due date specified
                by
                the Plan, provided that the payment is not made earlier than six
                months
                after the Participant’s Separation From Service.  A Participant may
                not, directly or 

            

    

     

    Page
      12

     

    
      	
                

            	
               indirectly,
                designate the taxable year of a payment made in reliance on the
                administrative rules in this Section 5.09.

            

    

     

    
      	
              5.10  
                

            	
              Distribution
                Upon Change in Control.  Subject to the following sentence,
                if a Change in Control also qualifies as a “change in control” under IRC
                Section 409A, the present value of all benefits earned or vested
                after
                2004 shall be paid in a lump sum in cash on the first business day
                of the
                month following the Change in Control.  If a Participant’s
                Separation From Service occurred before the Change in Control, the
                lump
                sum payment under this Section 5.10 shall not
                be made earlier than six months after the Participant’s Separation From
                Service. 

            

    

    

    
      	
              5.11  

            	
              Change
                in Payment Election.  Any election of a time or form of
                payment under Article V, or any change in a prior election, is subject
                to
                the approval of the Plan Administrator.  If a Participant
                changes the time or form of payment previously elected, the new election
                must apply to the Participant’s entire benefit under the Plan that is
                earned or vested after 2004, and must comply with the following
                rules:

            

    

    

    
      	
               

            	
              (a)

            	
              Election
                Between Life Annuities.  At any time before the
                first annuity payment is made, a Participant may change his election
                from
                one life annuity to another actuarially-equivalent life annuity (within
                the meaning of IRC Section 409A) commencing at the same
                time.

            

    

    

    
      	
               

            	
              (b)

            	
              Modification
                of Election.If a Participant wishes to change the form of
                payment for his benefit or to elect a different Retirement Age, and
                the
                new election does not satisfy the requirements of subsection (a)
                (concerning elections between life annuities) or the transition rules
                in
                subsection (d) (concerning elections before December 31, 2007), the
                Participant’s new payment election must satisfy the requirements of this
                subsection (b).  A Participant may change his election under
                this subsection (b) only if the new
                election:

            

    

    

    
      	
               

            	
              (1)

            	
              is
                made at least twelve months before the date when payment of the benefit
                would otherwise commence;

            

    

    

    
      	
               

            	
              (2)

            	
              defers
                the date on which payment will commence by at least five years from
                the
                commencement date applicable to his previous
                election;

            

    

    

    
      	
               

            	
              (3)

            	
              does
                not cause payments triggered by attainment of Retirement Age to commence
                at an age other than other than 55, 62, 65, 67, or 70;
                and

            

    

     

     

    Page
      13

     

    
      	
               

            	
              (4)

            	
              does
                not cause payments triggered by Separation From Service to commence
                more
                than 5 years and seven months after Separation From
                Service.

            

    

    

    If
      a
      Participant’s current payment election requires payments to commence at the
      later of Retirement Age or six months after Separation From Service, the
      Participant may choose to apply the new payment election to only one of the
      two
      alternative payment events.

    

    
      	
               

            	
              (c)

            	
              Distributions
                Before 2008.  If a Participant’s Pension Plan benefit
                commences before 2008, the Participant’s benefit under the Plan that was
                earned or vested after 2004 shall be paid at the same time and in
                the same
                form as the Participant’s Pension Plan benefit, as provided under the Key
                Executive Plan and the Executive Plan as in effect on October 3,
                2004.

            

    

    

    
      	
               

            	
              (d)

            	
              One-Time
                Election During 2007.  If a Participant’s Pension
                Plan benefit does not commence before 2008, the Participant may make
                a
                special election during 2007 to receive the benefit that is earned
                or
                vested after 2004 under one of the distribution options in Section
5.03.  The Participant may not make a
                new election under this paragraph if the election would accelerate
                payment
                of the Participant’s benefit into the year of the new
                election.  If the Participant’s Pension Plan benefit commences
                after the date of the new election, but before 2008, the new election
                shall be ineffective and the Participant’s benefit shall be paid as
                provided in subsection (c), above.  An election under this
                paragraph shall be made in the manner prescribed by the Plan
                Administrator, and the Plan Administrator may impose conditions in
                addition to those described in this subsection (d) (such as a requirement
                that a Participant who participates in more than one nonqualified
                defined
                benefit plan elect the same annuity form of payment under all plans);
                but
                the election shall not be required to comply with the requirements
                of
                subsection (b), above (concerning changes in payment
                elections).  The Plan Administrator may also allow an employee
                who is not yet a Participant, but who might become a Participant
                in the
                future, to elect a distribution option under this subsection (d)
                for any
                benefit the employee might later earn under this Plan.  An
                employee shall not have a right to receive any benefit under the
                Plan
                until he becomes a Participant, even if the employee has previously
                filed
                an election designating the time and form of payment for any benefit
                he
                might earn if he becomes eligible to participate in the
                Plan.

            

    

    

    Article
      VI – Unfunded Plan

    

    
      	
              6.01  

            	
              No
                Plan Assets.  Benefits provided under this Plan are unfunded
                obligations of Textron.  Nothing contained in this Plan shall
                require Textron to segregate any 

            

    

     

    Page
      14

     

    
      	
                

            	
              monies
                from its general funds, to create any trust, to make any special
                deposits,
                or to purchase any policies of insurance with respect to such
                obligations.  If Textron elects to purchase individual policies
                of insurance on one or more of the Participants to help finance its
                obligations under this Plan, such individual policies and the proceeds
                of
                the policies shall at all times remain the sole property of Textron
                and
                neither the Participants whose lives are insured not their Beneficiaries
                shall have any ownership rights in such policies of
                insurance.

            

    

     

     

    
      	
              6.02  

            	
              Top-Hat
                Plan Status.  The Plan is maintained primarily for the
                purpose of providing deferred compensation for a select group of
                management or highly compensated employees within the meaning of
                Sections
                201(2), 301(a)(3), and 401(a)(1) of the Employee Retirement Income
                Security Act of 1974, as amended
                (“ERISA”).

            

    

    

    Article
      VII – Plan Administration

    

    
      	
              7.01  

            	
              Plan
                Administrator’s Powers.  Textron shall have all such powers
                as may be necessary to carry out the provisions hereof. Textron may
                from
                time to time establish rules for the administration of this Plan
                and the
                transaction of its business. Subject to Section 7.05, any actions
                by
                Textron shall be final, conclusive and binding on each Participant
                and all
                persons claiming by, through or under any Participant.  Textron
                (and any person or persons to whom it delegates any of its authority
                as
                plan administrator) shall have discretionary authority to determine
                eligibility for Plan benefits, to construe the terms of the Plan,
                and to
                determine all questions arising in the administration of the
                Plan.

            

    

    

    
      	
              7.02  

            	
              Tax
                Withholding.  Textron may withhold from benefits paid under
                this Plan any taxes or other amounts required by law to be
                withheld.  Textron may deduct from the undistributed portion of
                a Participant’s benefit any employment tax that Textron reasonably
                determines to be due with respect to the benefit under the Federal
                Insurance Contributions Act (FICA), and an amount sufficient to pay
                the
                income tax withholding related to such FICA tax.  Alternatively,
                Textron may require the Participant or Beneficiary to remit to Textron
                or
                its designee an amount sufficient to satisfy any applicable federal,
                state, and local income and employment tax with respect to the
                Participant’s benefit.  The Participant or Beneficiary shall
                remain responsible at all times for paying any federal, state, or
                local
                income or employment tax with respect to any benefit under this
                Plan.  In no event shall Textron or any employee or agent of
                Textron be liable for any interest or penalty that a Participant
                or
                Beneficiary incurs by failing to make timely payments of
                tax.

            

    

    

    
      	
              7.03  

            	
              Use
                of Third Parties to Assist with Plan
                Administration.  Textron may employ or engage such agents,
                accountants, actuaries, counsel, other experts and other persons
                as it
                deems necessary or desirable in connection with the interpretation
                and
                administration of this Plan. Textron and its committees, officers,
                directors

            

    

     

    Page
      15

     

    
      	
               

            	
              and
                employees shall not be liable for any action taken, suffered or omitted
                by
                them in good faith in reliance upon the advice or opinion of any
                such
                agent, accountant, actuary, counsel or other expert. All action so
                taken,
                suffered or omitted shall be conclusive upon each of them and upon
                all
                other persons interested in this
                Plan.

            

    

    
    

    

    
      	
              7.04  

            	
              Proof
                of Right to Receive Benefits.  Textron may require proof of
                death or Total Disability of any Participant, former Participant
                or
                Beneficiary and evidence of the right of any person to receive any
                Plan
                benefit.

            

    

    

    
      	
              7.05  

            	
              Claims
                Procedure.A Participant or Beneficiary who believes that he is being
                denied a benefit to which he is entitled under the Plan (referred
                to in this
                Section
                7.05 as
                a
                “Claimant”) may file a written request with the Benefits Committee setting
                forth the claim.  The Benefits
                Committee
                shall consider and resolve the claim as set forth below. 

            

    

    

    
      	
               

            	
              (a)

            	
              Time
                for Response.  Upon receipt of a claim, the Benefits
                Committee shall advise the Claimant that a response will be forthcoming
                within 90 days.  The Benefits Committee may, however, extend the
                response
                period for up to
                an additional 90 days for reasonable cause,
                and shall notify the
                Claimant of the reason for the extension and the expected response
                date.  The Benefits Committee shall respond to the claim
                within the specified period.

            

    

    

    
      	
               

            	 (b)	
              Denial.  If
                the claim is denied in whole or part, the Benefits Committee shall
                provide
                the Claimant with a written decision, using language calculated to
                be
                understood by the Claimant, setting forth (1) the specific reason
                or
                reasons for such denial; (2) the specific reference to relevant provisions
                of this Plan on which such denial is based; (3) a description of
                any
                additional material or information necessary for the Claimant to
                perfect
                his claim and an explanation why such material or such information
                is
                necessary; (4) appropriate information as to the steps to be taken
                if the
                Claimant wishes to submit the claim for review; (5) the time limits
                for
                requesting a review of the claim; and (6) the Claimant’s right to bring an
                action for benefits under Section 502(a) of
                ERISA.

            

    

     

    
      	
               

            	
              (c)

            	
              Request
                for Review.  Within 60 days after the Claimant’s
                receipt of the written decision denying the claim in whole
                or in
                part, the Claimant may request in writing that the Benefits Committee
                review the determination.  The Claimant or his duly authorized
                representative may, but need not, review the relevant documents and
                submit
                issues and comment in writing for consideration by the Benefits
                Committee.  If the Claimant does not request a review of the
                initial determination within such 60-day period, the Claimant shall
                be
                barred from challenging the
                determination.

            

    

    
    

    

    Page
      16

     

    
      	
               

            	
              (d)

            	
              Review
                of Initial Determination.  Within 60 days after the Benefits
                Committee receives a request for review, it will review the initial
                determination.  If special circumstances require that the 60-day
                time period be extended, the Benefits Committee will so notify the
                Claimant and will render the decision as soon as possible, but no
                later
                than 120 days after receipt of the request for
                review.

            

    

    

    
      	
               

            	
              (e)

            	
              Decision
                on Review.  All decisions on review shall be final and
                binding with respect to all concerned parties.  The decision on
                review shall set forth, in a manner calculated to be understood by
                the
                Claimant, (1) the specific reasons for the decision, shall including
                references to the relevant Plan provisions upon which the decision
                is
                based; (2) the Claimant’s right to receive, upon request and free of
                charge, reasonable access to and copies of all documents, records,
                and
                other information, relevant to his benefits; and (3) the Claimant’s right
                to bring a civil action under Section 502(a) of
                ERISA.

            

    

    

    
      	
              7.06  

            	
              Enforcement
                Following a Change in Control.  If, after a Change in
                Control, any claim is made or any litigation is brought by a Participant
                or Beneficiary to enforce or interpret any provision contained in
                this
                Plan, Textron and the “person” or “group” described in Section 1.04 shall be liable, jointly and severally,
                to
                reimburse the Participant or Beneficiary for the Participant’s or
                Beneficiary’s reasonable attorney’s fees and costs incurred during the
                Participant’s or Beneficiary’s lifetime in pursuing any such claim or
                litigation, and to pay prejudgment interest at the Prime Rate as
                quoted in
                the Money Rates section of The Wall Street Journal on any money
                award or judgment obtained by the Participant or Beneficiary, payable
                at
                the same time as the underlying award or judgment.  Any
                reimbursement pursuant to the preceding sentence shall be paid to
                the
                Participant no earlier than six months after the Participant’s Separation
                From Service, and shall be paid to the Participant or Beneficiary
                no later
                than the end of the calendar year following the year in which the
                expense
                was incurred.  The reimbursement shall not be subject to
                liquidation or exchange for another benefit, and the amount of
                reimbursable expense incurred in one year shall not affect the amount
                of
                reimbursement available in another
                year.

            

    

    

    
      	
               

            	
              Article
                VIII – Amendment and
                Termination

            

    

    

    

    
      	
              8.01  

            	
              Amendment.  Subject
                to subsections (a) and (b), below, the Board or its designee shall
                have
                the right to amend, modify, or suspend this Plan at any time by written
                resolution or other formal action reflected in writing.  Subject
                to subsections (a) and (b), below, the Management Committee of Textron
                or
                its designee also shall have the right to amend, modify, or suspend
                any
                provisions of this Plan, by written resolution or other formal action
                reflected in writing, with respect to any Participant who is not
                a member
                of the Management Committee and who has
                not

            

    

     

    Page
      17

     

    

    
      	
               

            	
              been
                designated by Textron’s Chief Executive Officer and Chief Human Resources
                Officer as a key executive.

            

    

     

    
      	
               

            	
              (a)

            	
              No
                amendment, modification, or suspension shall reduce a Participant’s
                accrued benefit as determined under Section 3.01 or Section 3.02 immediately
                before the effective date of
                the amendment, modification, or
                suspension.

            

    

    

    
      	
               

            	
              (b)

            	
              Following
                a Change in Control, no amendment, modification, or suspension shall
                be
                made that directly or indirectly reduces any right or benefit provided
                upon a Change in Control.

            

    

    

    An
      amendment to the Pension Plan that affects the benefits provided under this
      Plan
      shall not be deemed to be an amendment to this Plan, and shall not be subject
      to
      the restrictions in subsections (a) and (b), provided that the amendment to
      the
      Pension Plan applies to a broad cross-section of participants in the Pension
      Plan, and not only or primarily to Participants in this Plan.

    

    
      	
              8.02  

            	
              Termination.  The
                Board or its designee shall have the right to terminate this Plan
                at any
                time before a Change in Control by written resolution.  No
                termination of the Plan shall reduce a Participant’s accrued benefit as
                determined under Section 3.01 or Section 3.02 and
                Section 3.03 immediately before the effective date
                of
                the termination.

            

    

    

    
      	
              8.03  

            	
              Distributions
                Upon Plan Termination.  Upon the termination of the Plan by
                the Board with respect to all Participants, and termination of all
                arrangements sponsored by any Textron Company that would be aggregated
                with the Plan under IRC Section 409A, Textron shall have the right,
                in its
                sole discretion, and notwithstanding any elections made by the
                Participant, to pay the Participant’s or Beneficiary’s vested benefit in a
                lump sum, to the extent permitted under IRC Section 409A.  All
                payments that may be made pursuant to this Section 8.03 shall be made no earlier than the
                thirteenth month and no later than the twenty-fourth month after
                the
                termination of the Plan.  Textron may not accelerate payments
                pursuant to this Section 8.03 if the
                termination of the Plan is proximate to a downturn in Textron’s financial
                health.  If Textron exercises its discretion to accelerate
                payments under this Section 8.03, it shall
                not adopt any new arrangement that would have been aggregated with
                the
                Plan under IRC Section 409A within three years following the date
                of the
                Plan’s termination.

            

    

    

    
      	
               

            	
              Article
                IX – Miscellaneous

            

    

     

    
      
        	
                9.01  

              	
                Use
                  of Masculine or Feminine Pronouns.  Unless a contrary or
                  different meaning is expressly provided, each use in this Plan
                  of the
                  masculine or feminine gender 

              

      

       

      Page
        18

       

    

    
      	
               

            	
              shall
                include the other and each use of the singular number shall include
                the
                plural.

            

    

     

    
      	
              9.02  

            	
              Transferability
                of Plan Benefits.

            

    

    

    
      	
               

            	
              (a)

            	
              Textron
                shall recognize the right of an alternate payee named in a domestic
                relations order to receive all or a portion of a Participant’s benefit
                under the Plan, provided that (1) the domestic relations order would
                be a
                “qualified domestic relations order” within the meaning of IRC Section
                414(p) of the Code if IRC Section 414(p) were applicable to the Plan
                (except that the order may require payment to be made to the alternate
                payee before the Participant’s earliest retirement age), (2) the domestic
                relations order does not purport to give the alternate payee any
                right to
                assets of any Textron Company, and (3) the domestic relations order
                does
                not purport to allow the alternate payee to defer payments beyond
                the date
                when the benefits assigned to the alternate payee would have been
                paid to
                the Participant.

            

    

    

    
      	
               

            	
              (b)

            	
              Except
                as provided in subsection (a) concerning domestic relations orders,
                no
                amount payable at any time under this Plan shall be subject in any
                manner
                to alienation, sale, transfer, assignment, pledge or encumbrance
                of any
                kind to the extent that the assignment or other action would cause
                the
                amount to be included in the Participant’s gross income or treated as a
                distribution for federal income tax purposes.  A Participant
                may, with the written approval of the Benefits Committee, make an
                assignment of a benefit for estate planning or similar purposes if
                the
                assignment does not cause the amount to be included in the Participant’s
                gross income or treated as a distribution for federal income tax
                purposes.  Any attempt to alienate, sell, transfer, assign,
                pledge or otherwise encumber any such benefit, whether presently
                or
                subsequently payable, shall be void unless so approved.  Except
                as required by law, no benefit payable under this Plan shall in any
                manner
                be subject to garnishment, attachment, execution or other legal process,
                or be liable for or subject to the debts or liability of any Participant
                or Beneficiary.

            

    

    

    
      	
              9.03  

            	
              Section
                409A Compliance.  The Plan is intended to comply with IRC
                Section 409A and should be interpreted accordingly.  Any
                distribution election that would not comply with IRC Section 409A
                is not
                effective.  To the extent that a provision of this Plan does not
                comply with IRC Section 409A, such provision shall be void and without
                effect.  Textron does not warrant that the Plan will comply with
                IRC Section 409A with respect to any Participant or with respect
                to any
                payment, however.  In no event shall any Textron Company; any
                director, officer, or employee of a Textron Company; or any member
                of the
                Benefits Committee be liable for any additional tax, interest, or
                penalty
                incurred by a Participant or 

            

    

     

    Page
      19

     

    
      	
               

            	
              Beneficiary
                as a result of the Plan’s failure to satisfy the requirements of IRC
                Section 409A, or as a result of the Plan’s failure to satisfy any other
                requirements of applicable tax
                laws.

            

    

     

    
      	
              9.04  

            	
              Controlling
                State Law.  This Plan shall be construed in accordance with
                the laws of the State of Delaware.

            

    

    

    
      	
              9.05  

            	
              No
                Right to Employment.  Nothing contained in this Plan shall
                be construed as a contract of employment between any Participant
                and any
                Textron Company, or to suggest or create a right in any Participant
                of
                continued employment at any Textron
                Company.

            

    

    

    
      	
              9.06  

            	
              Additional
                Conditions Imposed.  Textron, the Chief Executive Officer
                and the Chief Human Resources Officer, and the Benefits Committee
                may
                impose such other lawful terms and conditions on participation in
                this
                Plan as deemed desirable.  The Chief Executive Officer, the
                Chief Human Resources Officer, and members of the Benefits Committee
                may
                participate in this Plan.

            

    

    
 

    Page
      20

    

    TEXTRON

    

    
      	
               

              TEXTRON
                SPILLOVER PENSION PLAN

              ____________________________

              APPENDIX
                A

               

              (as
                amended and restated

              effective
                January 1, 2008)

              ____________________________

              Defined
                Benefit Provisions

               of
                the

               Supplemental
                Benefits Plan for

              Textron
                Key Executives

               

              (As
                in effect before January 1, 2007)

               

            

    

    

    

    

    

    
       

       

      
        
        

              

                  Textron
            Spillover Pension
            Plan      
      

                  Appendix
            A — Key Executive
            Plan      
      

                  
      
      

                  Table
            of
            Contents      
      

                  
      
    

      

    

    

    Introduction 

    

    Article
      I—Definitions 

     

    Article
      II—Participation 

    

    Article
      III—Supplemental Pension
      Benefits 

    

    Article
      IV—Unfunded
      Plan 

     

    Article
      V—Plan
      Administration 

    

    Article
      VI—Miscellaneous 

    

    

    Page
      i

     Textron
      Spillover Pension Plan

    Appendix
      A — Key Executive Plan

    

    
      	
               

            	
              Introduction

            

    

     

    
      	
              A.

            	
              Key
                Executive Plan

            

    

    
      	
               

            	
              (As
                In Effect Before 2007)

            

    

     

    Before
      2007, the Supplemental Benefits Plan for Textron Key Executives (the “Key
      Executive Plan”) was a separate unfunded, nonqualified deferred compensation
      arrangement for designated key executives of Textron and its
      affiliates.  The Key Executive Plan supplemented key executives’
benefits under Textron’s tax-qualified defined benefit plans and tax-qualified
      defined contribution plans by providing benefits that exceeded the statutory
      limits under the Internal Revenue Code (“IRC”).  The Key Executive
      Plan also provided supplemental pension benefits based on certain elements
      of
      key executives’ compensation that were not included in pensionable compensation
      under the tax-qualified defined benefit plans.

     

    
      	
              B.

            	
              Textron
                Spillover Pension Plan

            

    

    
      	
               

            	
              (Effective
                January 1, 2007)

            

    

     

    Effective
      January 1, 2007, the defined benefit portion of the Key Executive Plan was
      separated from the defined contribution portion of the Key Executive
      Plan.  The defined benefit portion of the Key Executive Plan continued
      as part of the Textron Spillover Pension Plan, and the defined contribution
      portion of the Key Executive Plan continued as a separate plan, the Supplemental
      Savings Plan for Textron Key Executives.

    

    
      	
              C.

            	
              Key
                Executive Protected
                Benefits

            

    

    
      	
               

            	
              (Earned
                and Vested Before 2005)

            

    

     

    The
      portion of Appendix A that follows this Introduction sets forth the defined
      benefit provisions of the Key Executive Plan as in effect on October 3, 2004,
      when IRC Section 409A was enacted as part of the American Jobs Creation Act
      of
      2004.  Key executives’ supplemental pension benefits that were earned
      and vested (within the meaning of Section 409A) before January 1, 2005, and
      any
      subsequent increase that is permitted to be included in such amounts under
      Section 409A (“Key Executive Protected Benefits”), are calculated and paid
      solely as provided in Appendix A, and are not subject to any other provisions
      of
      the Textron Spillover Pension Plan.

     

    The
      Key
      Executive Protected Benefits are not intended to be subject to IRC Section
      409A.  No amendment to this Appendix A that would constitute a
“material modification” for purposes of Section 409A shall be effective unless
      the amending instrument states that it is intended to materially modify Appendix
      A and to cause the Key Executive Protected Benefits to become subject to Section
      409A.  Although the Key Executive Protected Benefits are not intended
      to be subject to Section 409A, no Textron Company (nor any director, officer,
      or
      other representative of a Textron Company) shall be liable for 

     

    Appendix
      A

    Page
      1

     

    any
      adverse tax consequence suffered by a Participant or beneficiary if a Key
      Executive Protected Benefit becomes subject to Section 409A.

    

    
      	
              D.

            	
              Benefits
                Subject To Section 409A

              (Earned or Vested From
                2005 Through
                2007)

            

    

     

    Supplemental
      pension benefits earned by key executives after 2004, and supplemental pension
      benefits that became vested after 2004, are subject to the provisions of IRC
      Section 409A.  To the extent that these benefits were earned under the
      Key Executive Plan before January 1, 2007, the benefits shall be calculated
      under the provisions of the Key Executive Plan set forth in this Appendix A,
      using the benefit formulas in the Pension Plans as in effect before 2007,
      modified as provided in Appendix A.  However, any benefits earned or
      vested under the Key Executive Plan after 2004 shall be paid exclusively as
      provided in the Textron Spillover Pension Plan (not including any appendix
      to
      the Textron Spillover Pension Plan), and shall not be subject to any provision
      of Appendix A that relates to the payment or distribution of
      benefits.  Although the provisions of the Textron Spillover Pension
      Plan generally are effective as of January 1, 2007, the provisions that govern
      the distribution of benefits earned or vested after 2004 under the Key Executive
      Plan are effective as of January 1, 2005.

     

    Key
      Executive Plan

    

    The
      text
      that follows sets forth the defined benefit provisions of the Key Executive
      Plan
      as in effect on October 3, 2004.  The defined terms in Appendix A
      relate only to the provisions set forth in Appendix A: they do not apply to
      any
      other provisions of the Textron Spillover Pension Plan, and terms defined
      elsewhere in the Textron Spillover Pension Plan do not apply to Appendix
      A.  No additional benefits shall accrue under Appendix A after
      2006.

    

    Article
      I—Definitions

     

    In
      this
      Appendix, the following terms shall have the meanings set forth in this Article,
      unless a contrary or different meaning is expressly provided:

     

    
      	
              1.01

            	
              “Benefits
                Committee” means the Employee Benefits Committee of
                Textron.

            

    

    

    
      	
              1.02

            	
              “Board”
                means the Board of Directors of
                Textron.

            

    

    

    
      	
              1.03

            	
              “Compensation”
                means a Key Executive’s annual compensation determined as
                follows:

            

    

     

    
      	
               

            	
              (a)

            	
              For
                years before 2006, except as provided in subsections (b) and (c),
                Compensation means base salary, accrued annual incentive compensation,
                performance units, and performance share units, whether or not deferred
                under the Deferred Income Plan for Textron Key Executives or the
                Textron
                Deferred Income Plan for Executives.  For 2006, Compensation
                shall be determined as provided in the preceding sentence, modified
                (except as provided in subsection (c)) to include the greater of
                the
                Participant’s an-

            

    

     

    Appendix
      A

    Page
      2

    
      	
               

            	
               

            	
              nual
                incentive compensation accrued in 2006 or the Participant’s annual
                incentive compensation paid in
                2006.

            

    

     

    
      	
               

            	
              (b)

            	
              For
                any Key Executive who is first awarded performance share units after
                October 26, 1999, performance share units shall not be included in
                Compensation.

            

    

     

    
      	
               

            	
              (c)

            	
              For
                Key Executives who are members of the Textron Pension Plan for Cessna
                Employees (Addendum F to the Textron Master Retirement Plan), Compensation
                means “Final Average Monthly Salary” as defined in that plan. “Final
                Average Monthly Salary” shall include incentive compensation paid by
                Textron and shall exclude long-term incentive compensation and shall
                be
                calculated without regard to Statutory Limits or
                deferrals.

            

    

    

    
      	
               

            	
              (d)

            	
              Compensation
                does not include any award under the Textron Quality Management Plan
                or
                the Supplemental Bonus Plan for Textron Financial Corporation
                Executives.

            

    

    

    
      	
              1.04

            	
              “Deferral
                Plans” means the Textron Deferred Income Plan for Textron Key Executives
                and the Textron Deferred Income Plan for Executives, as amended and
                restated from time to time.

            

    

     

    
      	
              1.05

            	
              “ERISA”
                means the Employee Retirement Income Security Act of 1974, as
                amended.

            

    

     

    
      	
              1.06

            	
              “Key
                Executive” means an employee of a Textron Company who has been and
                continues to be designated as a Key Executive under the Plan by Textron’s
                Chief Executive Officer and Chief Human Resources
                Officer.

            

    

     

    
      	
              1.07

            	
              “Participant”
                means a Key Executive who is participating in this Plan pursuant
                to
                Article II and, unless the context clearly indicates to the contrary,
                a
                former Participant who is entitled to benefits under this
                Plan.

            

    

     

    
      	
              1.08

            	
              “Pension
                Plan” means the Bell Helicopter Textron Retirement Plan, the Textron
                Pension Plan for Cessna Employees, the Textron Master Retirement
                Plan, or
                an Included Plan that is a defined benefit
                plan.

            

    

     

    
      	
              1.09

            	
              “Plan”
                means this Supplemental Benefits Plan for Textron Key Executives,
                as
                amended and restated from time to
                time.

            

    

     

    
      	
              1.10

            	
              “Statutory
                Limit” means any limit on benefits under, or annual additions to,
                qualified plans imposed by Section 401(a)(17) or 415 of the Internal
                Revenue Codes of 1954 or 1986, as amended from time to
                time.

            

    

     

    
      	
              1.11

            	
              “Textron”
                means Textron Inc., a Delaware corporation, and any successor of
Textron
                Inc.

            

    

     

     

    
      Appendix
        A

      Page
        3

       

    

    
      	
              1.12

            	
              “Textron
                Company” means Textron or any company controlled by or under common
                control with Textron.

            

    

     

    
      Article
        II—Participation

    

     

    
      	
              2.01

            	
              A
                Key Executive shall participate in this Plan if her benefits under
                a
                Pension Plan are limited by one or more Statutory Limits. In addition,
                a
                Key Executive shall participate in this Plan if her receipt of any
                compensation is deferred under the Deferral
                Plans.

            

    

     

    
      Article
        III—Supplemental Pension Benefits

    

     

    
      	
              3.01

            	
              Textron
                shall pay on account of each Participant who begins to receive payments
                under one or more of the Pension Plans the amount, if any, by which
                (1)
                the normal, early or vested retirement pension that would have been
                payable on the Participant’s account under the Pension Plans, using
                Compensation as defined in this Plan, exceeds (2) the normal, early
                or
                vested retirement pension calculated under the Pension Plans on the
                Participant’s account.

            

    

     

    
      	
              3.02

            	
              Textron
                shall pay to the beneficiary designated by the Participant under
                each
                Pension Plan the amount, if any, by which (1) the death benefit that
                would
                have been payable under that Pension Plan on the Participant’s account
                using Compensation as defined in this Plan exceeds (2) the death
                benefit
                which is actually payable under that Pension Plan on the Participant’s
                account. For the purposes of this Section, the term “death benefit” shall
                include any period certain death benefit and any surviving spouse
                benefit
                provided by a Textron Company at its sole cost through a Pension
                Plan.

            

    

     

    
      	
              3.03

            	
              In
                the event Textron transfers the liability of a Pension Plan on account
                of
                a Participant to another qualified plan, the supplemental pension
                or death
                benefits under Sections 3.01 and 3.02, respectively, shall be determined
                as of such transfer, unless otherwise decided by Textron in its sole
                discretion.

            

    

     

    
      Article
        IV—Unfunded Plan

    

     

    
      	
              4.01

            	
              Benefits
                to be provided under this Plan are unfunded obligations of Textron.
                Nothing contained in this Plan shall require Textron to segregate
                any
                monies from its general funds, to create any trust, to make any special
                deposits, or to purchase any policies of insurance with respect to
                such
                obligations. If Textron elects to purchase individual policies of
                insurance on one or more of the Participants to help finance its
                obligations under this Plan, such individual policies and the proceeds
                therefrom shall at all times remain the sole property of Textron
                and
                neither the Participants whose lives are insured nor their beneficiaries
                shall have any ownership rights in such policies of
                insurance.

            

    

     

    
      	
              4.02

            	
              This
                Plan is intended in part to provide benefits for a select group of
                management employees who are highly compensated, within the meaning
                of
                Sections 201(2), 

            

    

     

    
      Appendix
        A

      Page
        4

    

    
      	
               

            	
              301(a)(3),
                and 401(a)(1) of  ERISA, and in part to be an excess benefit
                plan, pursuant to Section 3(36) of
                ERISA.

            

    

     

     

    
      	
              4.03

            	
              No
                Participant shall be required or permitted to make contributions
                to this
                Plan.

            

    

     

    
      Article
        V—Plan Administration

    

     

    
      	
              5.01

            	
              Textron
                shall be the plan administrator of this Plan and shall be solely
                responsible for its general administration and interpretation. Textron
                shall have all such powers as may be necessary to carry out the provisions
                hereof. Textron may from time to time establish rules for the
                administration of this Plan and the transaction of its business.
                Subject
                to Section 5.05, any action by Textron shall be final, conclusive,
                and
                binding on each Participant and all persons claiming by, through
                or under
                any Participant. Textron (and any person or persons to whom it delegates
                any of its authority as plan administrator) shall have discretionary
                authority to determine eligibility for Plan benefits, to construe
                the
                terms of the Plan, and to determine all questions arising in the
                administration of the Plan, and shall make all such determinations
                and
                interpretations in a nondiscriminatory
                manner.

            

    

     

    
      	
              5.02    (a)

            	
              Except
                as provided in subsections (b) and (c), below, the payment of any
                benefit
                under Article III shall be made at the same time, in the same manner,
                to
                the same persons and in the same proportions, as is made the payment
                or
                distribution under the related Pension Plan, or otherwise as determined
                by
                the Benefits Committee in its sole discretion. Textron may withhold
                from
                benefits and accounts under this Plan, any taxes or other amounts
                required
                by law to be withheld. Notwithstanding any provision to the contrary,
                no
                benefit shall be paid to any Participant while employed by
                Textron.

            

    

     

    
      	
               

            	
              (b)

            	
              Each
                benefit then computed under Article III shall become due and payable
                to
                the respective Participants and beneficiaries immediately upon a
                Change in
                Control as defined in Section 6.03. For purposes of Section 5.02,
                the
                present value of a benefit computed under Article III shall be based
                on
                the appropriate actuarial assumptions and factors set forth in the
                related
                Pension Plan and, if no interest rate assumption has been set forth
                for
                any purpose, an interest rate of six percent per
                year.

            

    

     

    
      	
               

            	
              (c)

            	
              Effective
                for payments commencing on or after January 1, 2008, the Benefits
                Committee has exercised its discretion pursuant to subsection (a)
                to
                determine that no distribution under the Plan shall commence or be
                paid
                earlier than six months after the date of the Participant’s separation
                from service.  Any payments that otherwise would have been made
                during the six-month period shall be paid in a lump sum, without
                interest,
                on the first day of the first month that begins after the six-month
                period.

            

    

     

    
      	
              5.03

            	
              Textron
                may employ or engage such agents, accountants, actuaries, counsel,
                other
                experts and other persons as it deems necessary or desirable in connection
                with 

            

    

     

     

    
      Appendix
        A

      Page
        5

    

     

    
      	
               

            	
              the
                interpretation and administration of this Plan. Textron shall be
                entitled
                to rely upon all certifications made by an accountant selected by
                Textron.
                Textron and its committees, officers, directors and employees shall
                not be
                liable for any action taken, suffered or omitted by them in good
                faith in
                reliance upon the advice or opinion of any such agent, accountant,
                actuary, counsel or other expert. All action so taken, suffered or
                omitted
                shall be conclusive upon each of them and upon all other persons
                interested in this Plan.

            

    

     

    
      	
              5.04

            	
              Textron
                may require proof of death or total disability of any Participant,
                former
                Participant or beneficiary and evidence of the right of any person
                to
                receive any Plan benefit.

            

    

     

    
      	
              5.05

            	
              Claims
                under this Plan shall be filed in writing with Textron, and shall
                be
                reviewed and resolved pursuant to the claims procedure in Section
                7.05 of
                the Textron Spillover Pension Plan.

            

    

     

    
      	
               

            	
              Article
                VI—Miscellaneous

            

    

     

    
      	
              6.01

            	
              Unless
                a contrary or different meaning is expressly provided, each use in
                this
                Plan of the masculine or feminine gender shall include the other
                and each
                use of the singular number shall include the
                plural.

            

    

     

     

    
      	
              6.02

            	
              (a)

            	
                  Textron
                shall recognize the right of an alternate payee named in a domestic
                relations order to receive all or a portion of a Participant’s benefit
                under the Plan, provided that (1) the domestic relations order would
                be a
                “qualified domestic relations order” within the meaning of IRC Section
                414(p) if IRC Section 414(p) were applicable to the Plan (except
                that the
                order may require payment to be made to the alternate payee before
                the
                Participant’s earliest retirement age), (2) the domestic relations order
                does not purport to give the alternate payee any right to assets
                of any
                Textron Company, and (3) the domestic relations order does not purport
                to
                allow the alternate payee to defer payments beyond the date when
                the
                benefits assigned to the alternate payee would have been paid to
                the
                Participant.

            

    

    

    
      	 	 (b) 	    Except
              as provided in subsection (a) concerning domestic relations orders,
              no
              amount payable at any time under this Plan shall be subject in any
              manner
              to alienation, sale, transfer, assignment, pledge or encumbrance of
              any
              kind to the extent that the assignment or other action would cause
              the
              amount to be included in the Participant’s gross income or treated as a
              distribution for federal income tax purposes.  A Participant
              may, with the written approval of the Benefits Committee, make an
              assignment of a benefit for estate planning or similar purposes if
              the
              assignment does not cause the amount to be included in the Participant’s
              gross income or treated as a distribution for federal income tax
              purposes.  Any attempt to alienate, sell, transfer, assign,
              pledge or otherwise encumber any such benefit, whether presently or
              subsequently payable, shall be void unless so approved.  Except
              as required by law, no benefit payable under this Plan shall in any
              manner
              be subject to garnishment, attachment, execution or other legal process,
              or be liable for or subject to the debts or liability of any Participant
              or beneficiary.

    

     

              

    
      
        Appendix
          A

        Page
          6

      

    

     

    
      	
              6.03

            	
              Notwithstanding
                any Plan provision to the contrary, the Board or its designee shall
                have
                the right to amend, modify, suspend or terminate this Plan at any
                time by
                written ratification of such action; provided, however, that no amendment,
                modification, suspension or
                termination:

            

    

     

    
      	
               

            	
              (1)

            	
              shall
                reduce an amount payable under Article III of this Plan immediately
                before
                the effective date of the amendment, modification, suspension or
                termination; or

            

    

     

    
      	
               

            	
              (2)

            	
              shall
                be made to Section 5.02 or 6.03 following a Change in
                Control.

            

    

     

     

    
      	
               

            	
              If
                after a Change in Control any claim is made or any litigation is
                brought
                by a Participant or beneficiary to enforce or interpret any provision
                contained in this Plan, Textron and the “person” or “group” described in
                the next following sentence shall be liable, jointly and severally,
                to
                indemnify the Participant or beneficiary and to pay prejudgment interest
                on any recovery as provided in Section 7.06 of the Textron Spillover
                Pension Plan.

            

    

     

    
      	
               

            	
              For
                purposes of this Plan, a “Change in Control” shall occur if (i) any
                “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of
                the Securities Exchange Act of 1934, as amended (the “Act”)) other than
                Textron, any trustee or other fiduciary holding Textron common stock
                under
                an employee benefit plan of Textron or a related company, or any
                corporation which is owned, directly or indirectly, by the stockholders
                of
                Textron in substantially the same proportions as their ownership
                of
                Textron common stock, is or becomes (other than by acquisition from
                Textron or a related company) the “beneficial owner” (as defined in Rule
                13d-3 under the Act) of more than 30% of the then outstanding voting
                stock
                of Textron, or (ii) during any period of two consecutive years,
                individuals who at the beginning of such period constitute the Board
                (and
                any new director whose election by the Board or whose nomination
                for
                election by Textron’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 such period or whose election or nomination for
                election was previously so approved) cease for any reason to constitute
                a
                majority thereof, or (iii) stockholders of Textron approve a merger
                or
                consolidation of Textron with any other corporation, other than a
                merger
                or consolidation which would result in the voting securities of Textron
                outstanding immediately prior thereto continuing to represent (either
                by
                remaining outstanding or by being converted into voting securities
                of the
                surviving entity) more than 50% of the combined voting power of the
                voting
                securities of Textron or such surviving entity outstanding immediately
                after such merger or consolidation, or (iv) the stockholders of Textron
                approve a plan of complete liquidation of Textron or an agreement
                for the
                sale or disposition by Textron of all or substantially all of Textron’s
                assets.

            

    

     

    
      	
              6.04

            	
              This
                Plan shall be construed in accordance with the laws of the State
                of
                Delaware.

            

    

     

    
      
        Appendix
          A

        Page
          7

      

    

     

     

    
      	
              6.05

            	
              Nothing
                contained in this Plan shall be construed as a contract of employment
                between any Participant and any Textron Company, or to suggest or
                create a
                right in any Participant to be continued in employment as a Key Executive
                or other employee of any Textron
                Company.

            

    

     

    
      	
              6.06

            	
              Textron,
                the Chief Executive Officer and the Chief Human Resources Officer,
                and the
                Benefits Committee may impose such other lawful terms and conditions
                on
                participation in this Plan as deemed desirable. The Chief Executive
                Officer, the Chief Human Resources Officer and members of the Benefits
                Committee may participate in this
                Plan.

            

    

     

    

    
      
        Appendix
          A

        Page
          8exhibit10-7.htm

    

    Exhibit
      10.7

    

    

    

    

    

    TEXTRON

    

    

    

    
      	
               

              SUPPLEMENTAL
                RETIREMENT PLAN

              FOR
                TEXTRON KEY EXECUTIVES

              ____________________

               

              As
                Amended and Restated

              Effective
                January 1, 2008

               

               

            

    

    

    

\

    Supplemental
      Retirement Plan

    for
      Textron Key Executives

     

    As
      Amended and Restated

    Effective
      January 1, 2008

    

    Table
      of Contents

    

    

    Introduction 

    

    Article
      I—Definitions 

    1.01           Average
      Compensation 

    1.02           Beneficiary

    1.03           Benefits
      Committee 

    1.04           Board 

    1.05           Change
      in Control 

    1.05           Compensation 

    1.07           IRC 

    1.08           Key
      Executive 

    1.09           Normal
      Form of Benefit 

    1.10           Participant 

    1.11           Pension
      Plan 

    1.12           Plan 

    1.13           Separation
      From Service 

    1.14           Surviving
      Spouse 

    1.15           Textron 

    1.16           Textron
      Company 

    1.17           Total
      Disability 

    2.01           Target
      Benefit 

    2.02           Reductions
      in Target Benefit 

    2.03           Early
      Retirement Factors 

    2.04           Payment
      of Benefits 

    2.05           Pre-Pension
      Surviving Spouse
      Annuity 

    2.06           Administrative
      Adjustments in Payment
      Date

    2.07           Distribution
      Upon Change in
      Control 

    

    Article
      III—Unfunded Plan [INSERT PAGE NUMBER]

    3.01           No
      Plan Assets [INSERT PAGE NUMBER]

    3.02           Top-Hat
      Plan Status [INSERT PAGE NUMBER]

    3.02           No
      Contributions [INSERT PAGE NUMBER]

    

    Article
      IV—Plan
      Administration 

    4.01           Plan
      Administrator’s Powers 

    Table
      of Contents

    Page
      i

     

    4.02           Tax
      Withholding 

    4.03           Use
      of Third Parties to Assist with Plan
      Administration

    4.04           Proof
      of Right to Receive
      Benefits 

    4.05           Claims
      Procedure 

    4.06           Enforcement
      Following a Change in
      Control 

    

    Article
      V—Amendment and
      Termination 

    5.01           Amendment

    5.02           Termination 

    5.03           Distributions
      Upon Plan
      Termination 

    

    Article
      VI—Miscellaneous 

    6.01           Use
      of Masculine or Feminine
      Pronouns 

    6.02           Transferability
      of Plan
      Benefits 

    6.03           Section
      409A Compliance 

    6.04           Controlling
      State Law 

    6.05           No
      Right to Employment 

    6.06           Additional
      Conditions
      Imposed 

    

    

    Table
      of
      Contents

    Page
      ii

    

    

    

    Supplemental
      Retirement Plan

    for
      Textron Key Executives

     

    As
      Amended and Restated

    Effective
      January 1, 2008

     

    

     

    

    Introduction

    

    The
      Supplemental Retirement Plan for Textron Key Executives (the “Plan”) is an
      unfunded, nonqualified deferred compensation arrangement.  The Plan
      provides supplemental retirement benefits for designated Key Executives of
      Textron and its affiliates.

     

    Appendix
      A of the Plan sets forth the provisions of the Plan as in effect on October
      3,
      2004, when IRC Section 409A was enacted as part of the American Jobs Creation
      Act of 2004.  Supplemental retirement benefits that were earned and
      vested (within the meaning of IRC Section 409A) before January 1, 2005, and
      any
      subsequent increase that is permitted to be included in these amounts under
      IRC
      Section 409A, are calculated and paid solely as provided in Appendix A, and
      are
      not subject to any other provisions of the Supplemental Retirement Plan for
      Textron Key Executives.

     

    Supplemental
      retirement benefits
      that were
      earned
      or vested after 2004 and before January 1, 2008, are subject to the provisions
      of IRC Section 409A.  These supplemental
      retirement benefits are paid exclusively as provided in the Supplemental
      Retirement Plan for Textron Key Executives (not including any appendix to
      the Plan).  Although the provisions of the Supplemental
      Retirement Plan for Textron Key Executives generally are effective as of
      January 1, 2008, the provisions that govern the distribution of benefits earned
      or vested after 2004 under the Plan are effective as of January 1, 2005, and
      the
      amended definition of “Compensation” is effective as of January 1,
      2007.

     

     

    Page
      1

     

    

    

    Article
      I—Definitions

     

    Whenever
      used in this document, the following terms shall have the meanings set forth
      in
      this Article unless a contrary or different meaning is expressly
      provided:

     

    
      	
              1.01  

            	
              “Average
                Compensation” means the average of a Participant’s Compensation during the
                five consecutive years in which the Compensation is highest, determined
                using the same averaging methodology that is used to determine
                “Compensation Base” in Addendum A of the Textron Master Retirement
                Plan.

            

    

     

    
      	
              1.02  

            	
              “Beneficiary”
                means the person who is entitled under this Plan to receive a payment
                that
                would have been made to a Participant or Surviving Spouse during
                his or
                her lifetime, if the Participant or Surviving Spouse dies before
                the
                payment is made.

            

    

     

    
      	
              1.03  

            	
              “Benefits
                Committee” means the Employee Benefits Committee of
                Textron.

            

    

     

    
      	
              1.04  

            	
              “Board”
                means the Board of Directors of
                Textron.

            

    

     

    
      	
              1.05  

            	
              “Change
                in Control” means, for any Participant who was not an employee of a
                Textron Company on December 31,
                2007:

            

    

    

    
      	
               

            	
              (a)

            	
              any
                “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of
                the Securities Exchange Act of 1934, as amended (the “Act”) and of IRC
                Section 409A) other than Textron, any trustee or other fiduciary
                holding
                Textron common stock under an employee benefit plan of Textron or
                a
                related company, or any corporation which is owned, directly or
                indirectly, by the stockholders of Textron in substantially similar
                proportions as their ownership of Textron common
                stock

            

    

    

    
      	
               

            	
              (1)

            	
              becomes
                (other than by acquisition from Textron or a related company) the
                “beneficial owner” (as defined in Rule 13d-3 under the Act) of stock of
                Textron that, together with other stock held by such person or group,
                possesses more than 50% of the combined voting power of Textron’s
                then-outstanding voting stock, or

            

    

    

    
      	
               

            	
              (2)

            	
              acquires
                (or has acquired during the 12-month period ending on the date of
                the most
                recent acquisition by such person) beneficial ownership of stock
                of
                Textron possessing more than 30% of the combined voting power of
                Textron's
                then-outstanding stock, or

            

    

     

     

     Page
      2

    
 

    
      	
               

            	
              (3)

            	
              acquires
                (or has acquired during the 12-month period ending on the date of
                the most
                recent acquisition by such person) all or substantially all of the
                total
                gross fair market value of all of the assets of Textron immediately
                prior
                to such acquisition or acquisitions (where gross fair market value
                is
                determined without regard to any associated liabilities);
                or

            

    

    

    
      	
               

            	
              (b)

            	
              a
                merger or consolidation of Textron with any other corporation occurs,
                other than a merger or consolidation that would result in the voting
                securities of Textron outstanding immediately before the merger or
                consolidation continuing to represent (either by remaining outstanding
                or
                by being converted into voting securities of the surviving entity)
                50% or
                more of the combined voting power of the voting securities of Textron
                or
                such surviving entity outstanding immediately after such merger or
                consolidation, or

            

    

    

    
      	
               

            	
              (c)

            	
              during
                any 12-month period, a majority of the members of the Board is replaced
                by
                directors whose appointment or election is not endorsed by a majority
                of
                the members of the Board of Directors before the date of their appointment
                or election.

            

    

    

    Each
      of
      the events described above will be treated as a “Change in Control” only to the
      extent that it is a change in ownership, change in effective control, or change
      in the ownership of a substantial portion of Textron’s assets within the meaning
      of IRC Section 409A.

    

    For
      any
      Participant who was an employee of a Textron Company on December 31, 2007,
      the
      definition set forth above in this Section 1.05
      shall be used to determine whether an event is a “Change in Control” to the
      extent that the event would alter the time or form of payment of the
      Participant’s benefit.  To the extent that the event would cause any
      change in the Participant’s rights under the Plan that does not affect the
      status of the Participant’s benefit under IRC Section 409A (including, but not
      limited to, the enhancement or accelerated vesting of the Participant’s benefit,
      or restrictions on amendments to the Plan), the definition set forth in Section
      5.04 of Appendix A shall be used to determine whether the event is a “Change in
      Control.”

    

    
      	
              1.06  

            	
              “Compensation”
                means a Participant’s annual compensation determined as
                follows:

            

    

     

    
      	
               

            	
              (a)

            	
              For
                years after 2006, Compensation means eligible annual compensation
                as
                defined under the current benefit formula in the tax-qualified Pension
                Plan that covers the Participant, without regard to the statutory
                limits
                in IRC Section 401(a)(17) and IRC Section 415, subject to the
                modifications described in this Section 1.06(a).  For any executive who was
                first 

            

    

     

    Page
      3

     

     

    
      	
               

            	
               

            	
              awarded
                performance share units before October 27, 1999, Compensation shall
                include payments made under performance share units (regardless of
                when
                the units are awarded); but Compensation shall not include amounts
                attributable to performance share units for any executive who was
                first
                awarded performance share units after October 26,
                1999.  Compensation shall include a Participant’s elective
                deferrals under the Deferred Income Plan for Textron Key Executives,
                the
                Textron Deferred Income Plan for Executives, and the Deferred Income
                Plan
                for Textron Executives (and, if applicable, shall also include the
                automatic deferral of a Participant’s performance share units or annual
                incentive bonus exceeding 100% of the target bonus), but only to
                the
                extent that these amounts would have been included in Compensation
                if they
                had not been deferred.

            

    

    
 

    
      	
               

            	
              (b)

            	
              For
                any individual who participated in the Plan before 2007, Compensation
                for
                each year before 2007 shall be determined under Section 1.04 of Appendix
                A.

            

    

    

    
      	
               

            	
              (c)

            	
              If
                a year before 2007 is included in the Participant’s Compensation Base
                under the Plan, and the Participant did not participate in the Plan
                before
                2007, Compensation for that year shall be determined as provided
                in
                Section 1.06(a),
                above.

            

    

    

    
      	
              1.07  

            	
              “IRC”
                means the Internal Revenue Code of 1986, as amended.  References
                to any section of the Internal Revenue Code shall include any final
                regulations interpreting that
                section.

            

    

    

    
      	
              1.08  

            	
              “Key
                Executive” means an employee of a Textron Company who has been and
                continues to be designated as a Key Executive by Textron’s Chief Executive
                Officer and Chief Human Resources
                Officer.

            

    

     

    
      	
              1.09  

            	
              “Normal
                Form of Benefit” means (a) a single life annuity for the life of the
                Participant, in the case of a Key Executive who became a Participant
                on or
                after July 23, 1998, and (b) a joint and 50% survivor annuity, in
                the case
                of a Key Executive who became a Participant before July 23,
                1998.

            

    

     

    
      	
              1.10  

            	
              “Participant”
                means a Key Executive selected by Textron’s Chief Executive Officer (or,
                in the case of the Chief Executive Officer, selected by the Organization
                and Compensation Committee of the Board) for participation in this
                Plan.

            

    

     

    
      	
              1.11  

            	
              “Pension
                Plan” means a tax-qualified or nonqualified defined benefit plan
                maintained by a Textron Company (including any predecessor plans,
                but
                excluding this Plan) in which the Key Executive has
                participated.  “Pension Plan” includes, but is not limited to,
                the Bell Helicopter Textron Retirement Plan (part of the Bell Helicopter
                Textron Master Retirement Plan), the Textron Pension Plan
                

            

    

     

    Page
      4

     

     

    
      	
               

            	
              (Addendum
                A to the Textron Master Retirement Plan), and the Textron Spillover
                Pension Plan.

            

    

     

     

    
      	
              1.12  

            	
              “Plan”
                means this Supplemental Retirement Plan for Textron Key Executives,
                as
                amended and restated from time to
                time.

            

    

     

    
      	
              1.13  

            	
              “Separation
                From Service” means a Participant’s termination of employment with all
                Textron Companies, other than by reason of death or Total Disability,
                that
                qualifies as a “separation from service” for purposes of IRC Section
                409A.

            

    

     

    
      	
              1.14  

            	
              “Surviving
                Spouse” means the person to whom a Participant is married (in a marriage
                recognized under federal law) on the day of the Participant’s death while
                active or on the dates of the Participant’s retirement and
                death.

            

    

     

    
      	
              1.15  

            	
              “Textron”
                means Textron Inc., a Delaware corporation, and any successor of
                Textron
                Inc.

            

    

     

    
      	
              1.16  

            	
              “Textron
                Company” means Textron or any company controlled by or under common
                control with Textron within the meaning of IRC Section 414(b) or
                (c).

            

    

     

    
      	
              1.17  

            	
              “Total
                Disability” means physical or mental incapacity of a Participant who is
                employed by a Textron Company on the disability date, if the incapacity
                (a) enables the Participant to receive disability benefits under the
                Federal Social Security Act, and (b) also qualifies as a “disability” for
                purposes of IRC Section
                409A(a)(2)(C).

            

    

    

    Article
      II—Benefit

     

    
      	
              2.01  

            	
              Target
                Benefit.  Subject to Sections 2.02 and 2.03, the maximum
                benefit provided to a Participant who qualifies for benefits under
                this
                Plan is an annuity commencing upon Separation From Service or Total
                Disability equal to 50% of Average Compensation (the “Target Benefit”)
                less the offsets and adjusted by the Early Retirement Factors as
                set out
                below.

            

    

     

    
      	
              2.02  

            	
              Reductions
                in Target Benefit.

            

    

     

    
      	
               

            	
              (a)

            	
              Prior
                Employers’ Plans.  The Target Benefit shall be reduced by
                the monthly amount of any tax-qualified or nonqualified defined benefit
                payable to the Participant as a single life annuity at age 65 from
                a plan
                or arrangement sponsored by a prior employer other than a Textron
                Company.  The monthly benefit payable under prior employer plan
                shall be converted, if necessary, to a single life annuity commencing
                at
                age 65, using the actuarial assumptions or factors specified in the
                prior
                employer plan (or, if no conversion basis is available from the prior
                employer, using comparable actuarial assumptions or factors from
                Addendum
                A of the 

            

    

     

    Page
      5

     

    
      	
               

            	
               

            	
              Textron
                Master Retirement Plan).  It shall be the obligation of each
                Participant to disclose to Textron, before the Participant’s Separation
                From Service, any amounts that might be used under this section to
                reduce
                the benefits provided by this Plan.  Such disclosure shall
                include information on annuity payments and lump-sum cash payments
                from
                other plans.

            

    

     

    
      	
               

            	
              (b)

            	
              Early
                Retirement Factors.  The net Target Benefit after reduction
                for benefits provided under any prior employer plans shall then be
                multiplied by the Early Retirement Factor as set out in Section 2.03
                below.

            

    

     

    
      	
               

            	
              (c)

            	
              Pension
                Plans.  The product of the net Target Benefit times the
                Early Retirement Factor shall then be reduced by any and all amounts
                payable to the Participant upon Separation From Service or Total
                Disability under any qualified or nonqualified Pension
                Plan.  For purposes of the preceding sentence, the calculation
                shall be performed assuming that all benefits under this Plan and
                under
                any qualified or nonqualified Pension Plan commence on the first
                day of
                the month following the Participant’s Separation From Service or Total
                Disability, even if the commencement of the benefit is delayed by
                the
                Participant’s election or by the terms of the plan.  The
                reduction shall be based on a benefit under each Pension Plan that
                is
                payable in the same form as the Participant’s Normal Form of benefit under
                this Plan; and the benefit under each Pension Plan shall be converted
                to
                that form and, if applicable, reduced for early commencement based
                on the
                actuarial assumptions and factors used in the Pension Plan.  In
                the case of any Pension Plan that is part of the Textron Retirement
                Program, which is a tax-qualified floor-offset arrangement, the reduction
                in the net Target Benefit under this Plan shall be determined without
                taking into account any offset in the Pension Plan benefit for the
                value
                of the Participant’s account under the Textron Inc. Retirement Account
                Plan.

            

    

     

    
      	
              2.03  

            	
              Early
                Retirement Factors.  The Participant’s benefits under this
                Plan shall be based on the Participant’s age at Separation From Service,
                Total Disability, or death, in accordance with the following
                schedule:

            

    

     

    Early
      Retirement

    Age
      at
      Retirement                     Factors

     

    65                                           100%

     

    64                                           90%

     

    63                                           80%

     

    62                                           70%

     

    61                                           60%

     

     

     

    Page
      6

     

     

    60                                           50%

     

    Less
      Than
      60                          0%

     

    The
      Organization and Compensation Committee of the Board shall, in its sole
      discretion, have the authority to provide a Participant with an enhanced benefit
      pursuant to a separate written agreement.

     

    
      	
              2.04  

            	
              Payment
                of Benefits.

            

    

     

    
      	
               

            	
              (a)

            	
              Benefit
                Commencement Date.  Any benefit to which a Participant is
                entitled under the Plan shall be paid in the Normal Form of Benefit,
                or in
                an actuarially equivalent life annuity elected by the Participant
                pursuant
                to subsection (c), below.  The Participant’s benefit shall be
                calculated as if it commenced on the first day of the month following
                the
                Participant’s Separation From Service or Total Disability, and a benefit
                payable upon Total Disability shall actually commence on this
                date.  In the case of a benefit payable upon Separation From
                Service, however, the benefit shall commence on the first day of
                the
                seventh month following the Participant’s Separation From Service, and any
                monthly payments that would have been due during the intervening
                six
                months shall be paid in a lump sum, without interest, on the first
                day of
                the seventh month after the Participant’s Separation From
                Service.  The Participant may designate a Beneficiary to receive
                the payments for the months before the Participant’s death in the event of
                the Participant’s death before the payment
                date.

            

    

     

    
      	
               

            	
              (b)

            	
              Form
                of Payment.  Any form of benefit payable other than the
                Normal Form of Benefit shall be the actuarial equivalent of the Normal
                Form of Benefit, calculated using the actuarial assumptions and factors
                in
                the Textron Master Retirement Plan.  For any individual who
                becomes a Participant after July 23, 1998, benefit payments under
                the Plan
                will be reduced if the Participant elects a 50%, 75%, or 100% joint
                and
                survivor benefit or joint and surviving spouse benefit.  The
                joint and survivor factors are the same factors provided by Addendum
                A of
                the Textron Master Retirement Plan.

            

    

     

    
      	
               

            	
              (c)

            	
              Payment
                Election.  A Participant who wishes to elect a form of
                payment other than the Normal Form of Benefit must complete and return
                a
                written distribution election form acceptable to the Benefits Committee
                before the Participant’s Separation From Service or Total
                Disability.  Subject to the spousal consent requirement in
                subsection (d), below, the Participant may elect any actuarially
                equivalent life annuity (within the meaning of IRC Section 409A)
                that is
                available under Addendum A of the Textron Master Retirement Plan
                at the
                Participant’s benefit commencement date under this
                

            

    

     

     

    Page
      7

     

    
      	
               

            	
               

            	
              Plan,
                regardless of whether the Participant participates in Addendum A
                or elects
                the same form of payment under Addendum
                A.

            

    

     

    
      	
               

            	
              (d)

            	
              Spousal
                Consent.  For any individual who becomes a Participant after
                July 23, 1998, if the Participant is married when he or she makes
                a
                distribution election (including a change in a prior distribution
                election), the Participant must have the written consent of his or
                her
                spouse in order to elect any form of payment other than a joint and
                50%
                surviving spouse annuity.  If the Participant marries or
                re-marries after the date of the distribution election, the Participant
                shall automatically receive an actuarially equivalent joint and 50%
                surviving spouse annuity unless his or her current spouse consents
                in
                writing to a different form of
                distribution.

            

    

     

    
      	
               

            	
              (e)

            	
              Spillover
                Pension Plan.

            

    

     

    
      	
               

            	
              (i)

            	
              If
                a Participant in this Plan is entitled to receive a retirement benefit
                or
                pre-pension surviving spouse annuity under the Textron Spillover
                Pension
                Plan or any other nonqualified Pension Plan that would be subtracted
                from
                the Participant’s benefit under Section 2.02(c) of this Plan, the amount of the
                benefit
                shall be calculated under the Textron Spillover Pension Plan (or
                other
                nonqualified Pension Plan), but the benefit shall be paid exclusively
                at
                the time and in the form provided under this Plan, as if the other
                plan’s
                benefit were part of the Participant’s benefit under this
                Plan.  The preceding sentence shall apply even if the
                Participant is not otherwise eligible to receive any retirement benefit
                or
                pre-pension surviving spouse annuity under this Plan (for example,
                because
                he retired before his benefit under this Plan vested or because his
                benefit under this Plan is fully offset by his Pension Plan
                benefits).

            

    

     

    
      	
               

            	
              (ii)

            	
              If
                a Participant Separation From Service, Total Disability, or death
                occurs
                before the earliest date on which he would be entitled to a benefit
                under
                this Plan, his retirement benefit under the Textron Spillover Pension
                Plan
                or other nonqualified Pension Plan shall commence on the Participant’s
                earliest retirement date under this Plan, as if he had retired on
                that
                date.  The retirement benefit under the Textron Spillover
                Pension Plan or other nonqualified Pension Plan shall be actuarially
                adjusted, using the actuarial assumptions and factors in the other
                plan,
                to reflect the actual commencement date under this
                Plan.

            

    

     

    
      	
               

            	
              (iii)

            	
              
                If
                  a Participant is entitled to a death benefit or other benefit under
                  the
                  Textron Spillover Pension Plan or other nonqualified Pension Plan
                  that is
                  not provided under this Plan and that would not in any circumstance
                  be
                  subtracted from the Participant’s benefit
                  under

              

            

    

     

    Page
      8

     

     

    
      	
               

            	
               

            	
              Section
                2.02(c) of this Plan, the benefit shall
                be
                paid as provided in the Textron Spillover Pension Plan or other
                nonqualified Pension Plan.

            

    

     

    
      	
              2.05  

            	
              Pre-Pension
                Surviving Spouse Annuity.  If a Participant dies after age
                60 and prior to benefit commencement under this Plan, the Participant’s
                Surviving Spouse will receive an annuity equal to the amount the
                spouse
                would have received if the Participant had requested a joint and
                50%
                surviving spouse annuity and had retired the day before he
                died.  

            

    

     

    
      	
              2.06  

            	
              Administrative
                Adjustments in Payment Date.  A payment is treated as being
                made on the date when it is due under the Plan if the payment is
                made on
                the due date specified by the Plan, or on a later date that is either
                (a) in the same calendar year (for a payment whose specified due date
                is on or before September 30), or (b) by the 15th day of the third
                calendar month following the date specified by the Plan (for a payment
                whose specified due date is on or after October 1).  A payment
                also is treated as being made on the date when it is due under the
                Plan if
                the payment is made not more than 30 days before the due date specified
                by
                the Plan, provided that the payment is not made earlier than six
                months
                after the Participant’s Separation From Service.  A Participant
                may not, directly or indirectly, designate the taxable year of a
                payment
                made in reliance on the administrative rules in this Section 2.05.

            

    

     

    
      	
              2.07  

            	
              Distribution
                Upon Change in Control.

            

    

    

    
      	
               

            	
              (a)

            	
              Benefit
                Enhancement.  If the Participant’s Separation From Service,
                Total Disability, or death occurs after a Change in Control, the
                Participant shall, in lieu of the benefit payable under the preceding
                sections of this Article II, receive a benefit equal to the actuarial
                present value at Separation From Service, Total Disability, or death
                of
                the benefit the Participant would have received had the Participant
                terminated employment at age 65, based upon the Participant’s Average
                Compensation as of the date of Separation From Service, Total Disability,
                or death.  The present value shall be determined using the 1994
                Group Annuity Reserving Table (unisex) based on a blend of 50% of
                the male
                mortality rates and 50% of the female mortality rates and an interest
                rate
                of 7%.  Any pre-pension surviving spouse annuity or pre-pension
                survivor annuity payable upon the Participant’s death after a Change in
                Control shall be based on the Participant’s enhanced benefit calculated
                under this subsection.

            

    

    

    
      	
               

            	
              (b)

            	
              Distribution.  If
                the Participant’s Separation From Service, Total Disability, or death
                occurs within 24 months after the Change in Control, and if the Change
                in
                Control also qualifies as a “change in control” under IRC Section 409A,
                the enhanced benefit shall be paid in a lump sum.  If the
                Participant’s Separation From Service, Total Disability, or death
                

            

    

    

    Page
      9

     

     

    
      	
               

            	
               

            	
              occurs
                more than 24 months after the Change in Control, or if the Change
                in
                Control does not qualify as a “change in control” under IRC Section 409A,
                the enhanced benefit shall be paid in the Normal Form or as an actuarially
                equivalent life annuity elected by the Participant.  In either
                case, the enhanced benefit shall commence (or, in the case of a lump
                sum,
                shall be paid) on the applicable benefit commencement date specified
                in
                Section 2.04 or Section 2.05.

            

    

     

    Article
      III—Unfunded Plan

     

    
      	
              3.01  

            	
              No
                Plan Assets.  Benefits to be provided under this Plan are
                unfunded obligations of Textron.  Nothing contained in this Plan
                shall require Textron to segregate any monies from its general funds,
                to
                create any trust, to make any special deposits, or to purchase any
                policies of insurance with respect to such obligations.  If
                Textron elects to purchase individual policies of insurance on one
                or more
                of the Participants to help finance its obligations under this Plan,
                such
                individual policies and the proceeds therefrom shall at all times
                remain
                the sole property of Textron and neither the Participants whose lives
                are
                insured nor their Surviving Spouses or Beneficiaries shall have any
                ownership rights in such policies of
                insurance.

            

    

     

    
      	
              3.02  

            	
              Top-Hat
                Plan Status.  The Plan is maintained primarily for the
                purpose of providing deferred compensation for a select group of
                management or highly compensated employees within the meaning of
                Sections
                201(2), 301(a)(3), and 401(a)(1) of the Employee Retirement Income
                Security Act of 1974, as amended
                (“ERISA”).

            

    

     

    
      	
              3.03  

            	
              No
                Contributions.  No Participant shall be required or
                permitted to make contributions to this
                Plan.

            

    

     

    Article
      IV—Plan Administration

     

    
      	
              4.01  

            	
              Plan
                Administrator’s Powers.  Textron shall have all such powers
                as may be necessary to carry out the provisions hereof.  Textron
                may from time to time establish rules for the administration of this
                Plan
                and the transaction of its business. Subject to Section 4.05, any actions by Textron shall be final,
                conclusive and binding on each Participant and all persons claiming
                by,
                through or under any Participant.  Textron (and any person or
                persons to whom it delegates any of its authority as plan administrator)
                shall have discretionary authority to determine eligibility for Plan
                benefits, to construe the terms of the Plan, and to determine all
                questions arising in the administration of the Plan.  The
                Organization and Compensation Committee of the Board shall render
                all
                decisions under this Plan (including participation, Plan benefits,
                and
                benefit distributions) affecting Textron’s Chief Executive
                Officer.

            

    

     

    Page
      10

     

    
      	
              4.02  

            	
              Tax
                Withholding.  Textron may withhold from benefits paid under
                this Plan any taxes or other amounts required by law to be
                withheld.  Textron may deduct from the undistributed portion of
                a Participant’s benefit any employment tax that Textron reasonably
                determines to be due with respect to the benefit under the Federal
                Insurance Contributions Act (FICA), and an amount sufficient to pay
                the
                income tax withholding related to such FICA tax.  Alternatively,
                Textron may require the Participant or Beneficiary to remit to Textron
                or
                its designee an amount sufficient to satisfy any applicable federal,
                state, and local income and employment tax with respect to the
                Participant’s benefit.  The Participant or Beneficiary shall
                remain responsible at all times for paying any federal, state, or
                local
                income or employment tax with respect to any benefit under this
                Plan.  In no event shall Textron or any employee or agent of
                Textron be liable for any interest or penalty that a Participant
                or
                Beneficiary incurs by failing to make timely payments of
                tax.

            

    

    

    
      	
              4.03  

            	
              Use
                of Third Parties to Assist with Plan
                Administration.  Textron may employ or engage such agents,
                accountants, actuaries, counsel, other experts and other persons
                as it
                deems necessary or desirable in connection with the interpretation
                and
                administration of this Plan.  Textron and its committees,
                officers, directors and employees shall not be liable for any action
                taken, suffered or omitted by them in good faith in reliance upon
                the
                advice or opinion of any such agent, accountant, actuary, counsel
                or other
                expert.  All action so taken, suffered or omitted shall be
                conclusive upon each of them and upon all other persons interested
                in this
                Plan.

            

    

    

    
      	
              4.04  

            	
              Proof
                of Right to Receive Benefits.  Textron may require proof of
                death or Total Disability of any Participant, former Participant,
                Surviving Spouse, or Beneficiary and evidence of the right of any
                person
                to receive any Plan benefit.

            

    

    

    
      	
              4.05  

            	
              Claims
                Procedure. A
                Participant, Surviving Spouse, or Beneficiary who believes that he
                is being denied a benefit to which he is entitled under the Plan
                (referred
                to in this Section 4.05 as a “Claimant”) may
                file a written request with the Benefits Committee setting forth
                the
                claim.  The Benefits Committee (or the Organization
                and Compensation Committee of the Board, in the case of a claim involving
                Textron’s Chief Executive Officer) shall consider and resolve the
                claim as set forth
                below.  

            

    

    

    
      	
              (a)  
                

            	
              Time
                for
                Response.  Upon
                receipt of a claim, the Committee shall advise the Claimant that
                a
                response will be forthcoming within 90 days.  The Committee may,
                however, extend the response period for up to an additional 90 days
                for
                reasonable cause, and shall notify the Claimant of the reason for
                the
                extension and the expected response date.  The Committee shall
                respond to the claim within the specified
                period.  

            

    

     

    Page
      11

     

    
      	
              (b) 
                

            	
              Denial.  If
                the claim is denied in whole or part, the Committee shall provide
                the
                Claimant with a written decision, using language calculated to be
                understood by the Claimant, setting forth (1) the specific reason
                or
                reasons for such denial; (2) the specific reference to relevant provisions
                of this Plan on which such denial is based; (3) a description of
                any
                additional material or information necessary for the Claimant to
                perfect
                his claim and an explanation why such material or such information
                is
                necessary; (4) appropriate information as to the steps to be taken
                if the
                Claimant wishes to submit the claim for review; (5) the time limits
                for
                requesting a review of the claim; and (6) the Claimant’s right to bring an
                action for benefits under Section 502(a) of
                ERISA.

            

    

     

    
      	
               

            	
              (c)  
                

            	
              Request
                for Review.  Within 60 days after the Claimant’s receipt of
                the written decision denying the claim in whole or in part, the Claimant
                may request in writing that the Committee review the
                determination.  The Claimant or his duly authorized
                representative may, but need not, review the relevant documents and
                submit
                issues and comment in writing for consideration by the
                Committee.  If the Claimant does not request a review of the
                initial determination within such 60-day period, the Claimant shall
                be
                barred from challenging the
                determination.

            

    

    

    
      	
               

            	
              (d) 
                

            	
              Review
                of Initial Determination.  Within 60 days after
                the Committee receives a request for review, it will review the initial
                determination.  If special circumstances require that the 60-day
                time period be extended, the Committee will so notify the Claimant
                and
                will render the decision as soon as possible, but no later than 120
                days
                after receipt of the request for
                review.

            

    

    

    
      	
               

            	
              (e) 
                

            	
              Decision
                on
                Review.
All
                decisions
                on review shall be final and binding with respect to all concerned
                parties.  The decision on review shall set forth, in a manner
                calculated to be understood by the Claimant, (1) the specific reasons
                for
                the decision, shall including references to the relevant Plan provisions
                upon which the decision is based; (2) the Claimant’s right to receive,
                upon request and free of charge, reasonable access to and copies
                of all
                documents, records, and other information, relevant to his benefits;
                and
                (3) the Claimant’s right to bring a civil action under Section 502(a) of
                ERISA.

            

    

     

    
      	
              4.06  

            	
              Enforcement
                Following a Change in Control.  If, after a Change in
                Control, any claim is made or any litigation is brought by a Participant,
                Surviving Spouse, or Beneficiary to enforce or interpret any provision
                contained in this Plan, Textron and the “person” or “group” described in
                Section 1.05 shall be liable, jointly and
                severally, to reimburse the Participant, Surviving Spouse, or Beneficiary
                for the Participant’s, Surviving Spouse’s, or Beneficiary’s reasonable
                attorney’s fees and costs incurred during the Participant’s, Surviving
                Spouse’s, or Beneficiary’s 

            

    

     

    Page
      12

     

    
      	
                

            	
              lifetime
                in pursuing any such claim or litigation, and to pay prejudgment
                interest
                at the Prime Rate as quoted in the Money Rates section of The Wall
                Street Journal on any money award or judgment obtained by the
                Participant, Surviving Spouse, or Beneficiary, payable at the same
                time as
                the underlying award or judgment.  Any reimbursement pursuant to
                the preceding sentence shall be paid to the Participant no earlier
                than
                six months after the Participant’s Separation From Service, and shall be
                paid to the Participant, Surviving Spouse, or Beneficiary no later
                than
                the end of the calendar year following the year in which the expense
                was
                incurred.  The reimbursement shall not be subject to liquidation
                or exchange for another benefit, and the amount of reimbursable expense
                incurred in one year shall not affect the amount of reimbursement
                available in another year.

            

    
      	
               

            	
              Article
                V—Amendment and
                Termination

            

    

     

    
      	
              5.01  

            	
              Amendment.  Subject
                to subsections (a) and (b), below, the Board or its designee shall
                have
                the right to amend, modify, or suspend this Plan at any time by written
                resolution or other formal action reflected in
                writing.

            

    

    

    
      	
               

            	
              (a)

            	
              No
                amendment, modification, or suspension shall reduce a Participant’s
                accrued benefit as determined under Article II immediately before
                the
                effective date of the amendment, modification, or
                suspension.

            

    

    

    
      	
               

            	
              (b)

            	
              Following
                a Change in Control, no amendment, modification, or suspension shall
                be
                made that directly or indirectly reduces any right or benefit provided
                upon a Change in Control.

            

    

    

    An
      amendment to a Pension Plan that affects the benefits provided under this Plan
      shall not be deemed to be an amendment to this Plan, and shall not be subject
      to
      the restrictions in subsections (a) and (b), provided that the amendment to
      the
      Pension Plan applies to a broad cross-section of participants in the Pension
      Plan, and not only or primarily to Participants in this Plan.

    

    
      	
              5.02  

            	
              Termination.  The
                Board or its designee shall have the right to terminate this Plan
                at any
                time before a Change in Control by written resolution.  No
                termination of the Plan shall reduce a Participant’s accrued benefit as
                determined under Article II immediately before the effective date
                of the
                termination.

            

    

    

    
      	
              5.03  

            	
              Distributions
                Upon Plan Termination.  Upon the termination of the Plan by
                the Board with respect to all Participants, and termination of all
                arrangements sponsored by any Textron Company that would be aggregated
                with the Plan under IRC Section 409A, Textron shall have the right,
                in its
                sole discretion, and notwithstanding any elections made by the
                Participant, to pay the Participant’s vested benefit in a lump sum, to the
                extent permitted under IRC Section 409A.  All payments that may
                be made pursuant to this Section 5.03 shall
                be made no 

            

    

     

    Page
      13

     

    
      	
               

            	
              earlier
                than the thirteenth month and no later than the twenty-fourth month
                after
                the termination of the Plan.  Textron may not accelerate
                payments pursuant to this Section 5.03 if the
                termination of the Plan is proximate to a downturn in Textron’s financial
                health.  If Textron exercises its discretion to accelerate
                payments under this Section 5.03, it shall
                not adopt any new arrangement that would have been aggregated with
                the
                Plan under IRC Section 409A within three years following the date
                of the
                Plan’s termination.

            

    

     

    Article
      VI—Miscellaneous

     

    
      	
              6.01  

            	
              Use
                of Masculine or Feminine Pronouns.  Unless a contrary or
                different meaning is expressly provided, each use in this Plan of
                the
                masculine or feminine gender shall include the other and each use
                of the
                singular number shall include the
                plural.

            

    

     

    
      	
              6.02  

            	
              Transferability
                of Plan Benefits.

            

    

    

    
      	
               

            	
              (a)

            	
              Textron
                shall recognize the right of an alternate payee named in a domestic
                relations order to receive all or a portion of a Participant’s benefit
                under the Plan, provided that (1) the domestic relations order would
                be a
                “qualified domestic relations order” within the meaning of IRC Section
                414(p) of the Code if IRC Section 414(p) were applicable to the Plan
                (except that the order may require payment to be made to the alternate
                payee before the Participant’s earliest retirement age), (2) the domestic
                relations order does not purport to give the alternate payee any
                right to
                assets of any Textron Company, and (3) the domestic relations order
                does
                not purport to allow the alternate payee to defer payments beyond
                the date
                when the benefits assigned to the alternate payee would have been
                paid to
                the Participant.

            

    

    

    
      	
               

            	
              (b)

            	
              Except
                as provided in subsection (a) concerning domestic relations orders,
                no
                amount payable at any time under this Plan shall be subject in any
                manner
                to alienation, sale, transfer, assignment, pledge or encumbrance
                of any
                kind to the extent that the assignment or other action would cause
                the
                amount to be included in the Participant’s gross income or treated as a
                distribution for federal income tax purposes.  A Participant
                may, with the written approval of the Benefits Committee, make an
                assignment of a benefit for estate planning or similar purposes if
                the
                assignment does not cause the amount to be included in the Participant’s
                gross income or treated as a distribution for federal income tax
                purposes.  Any attempt to alienate, sell, transfer, assign,
                pledge or otherwise encumber any such benefit, whether presently
                or
                subsequently payable, shall be void unless so approved.  Except
                as required by law, no benefit payable under this Plan shall in any
                manner
                be subject to garnishment, attachment, execution or
                

            

    

     

    Page
      14

     

    
      	
               

            	
               

            	
              other
                legal process, or be liable for or subject to the debts or liability
                of
                any Participant, Surviving Spouse, or
                Beneficiary.

            

    

     

    
      	6.03
                	
              Section
                409A Compliance.  The Plan is intended to comply with IRC
                Section 409A and should be interpreted accordingly.  Any
                distribution election that would not comply with IRC Section 409A
                is not
                effective.  To the extent that a provision of this Plan does not
                comply with IRC Section 409A, such provision shall be void and without
                effect.  Textron does not warrant that the Plan will comply with
                IRC Section 409A with respect to any Participant or with respect
                to any
                payment, however.  In no event shall any Textron Company; any
                director, officer, or employee of a Textron Company; or any member
                of the
                Benefits Committee be liable for any additional tax, interest, or
                penalty
                incurred by a Participant or Beneficiary as a result of the Plan’s failure
                to satisfy the requirements of IRC Section 409A, or as a result of
                the
                Plan’s failure to satisfy any other requirements of applicable tax
                laws.

            

    

    

    
      	
              6.04  

            	
              Controlling
                State Law.  This Plan shall be construed in accordance with
                    the laws of the State of Delaware.

            

    

    

    
      	
              6.05  

            	
              No
                Right to Employment.  Nothing contained in this Plan shall
                be construed as a contract of employment between any Participant
                and any
                Textron Company, or to suggest or create a right in any Participant
                of
                continued employment at any Textron
                Company.

            

    

    

    
      	
              6.06 

            	
              Additional
                Conditions Imposed.  Textron (through the Organization and
                Compensation Committee of the Board), the Chief Executive Officer
                and the
                Chief Human Resources Officer, and the Benefits Committee may impose
                such
                other lawful terms and conditions on participation in this Plan as
                deemed
                desirable.  The Chief Executive Officer, the Chief Human
                Resources Officer, and members of the Benefits Committee may participate
                in this Plan.

            

    

    

    
 

    Page
      15

    

    
 

     

    

    TEXTRON

    

    

    

    
      	
               

              SUPPLEMENTAL
                RETIREMENT PLAN

              FOR
                TEXTRON KEY EXECUTIVES

              ____________________________

              APPENDIX
                A

              ____________________________

              Provisions
                of the

              Supplemental
                Retirement Plan

              for
                Textron Key Executives

              (As
                in effect before January 1, 2008)

               

            

    

    

    

    

    

    

    
      
         

         

        
                

                    
      
      

                    Supplemental
              Retirement
              Plan  
               for
            Textron Key
            Executives            

                    Appendix
              A — Prior Plan
              Provisions      
      

                    
      
      

                              Table
              of Contents
              
      

                    
      
    

        

      

    

    

    

    Introduction 

    

    Article
      I—Definitions 

    1.01           Beneficiary 

    1.02           Benefits
      Committee 

    1.03           Board 

    1.04           Compensation 

    1.05           Key
      Executive 

    1.06           Normal
      Form of Benefit 

    1.07           Participant 

    1.08           Pension
      Plan 

    1.09           Plan 

    1.10           Surviving
      Spouse 

    1.11           Textron 

    1.12           Textron
      Company 

    

    Article
      II—Benefit 

    

    Article
      III—Unfunded Plan 

    

    Article
      IV—Plan
      Administration 

    

    Article
      V—Miscellaneous 

    

    
Page
      i

     

     

    Supplemental
      Retirement Plan

    for
      Textron Key Executives

    Appendix
      A — Prior Plan Provisions

    

     

    Introduction

    

    The
      Supplemental Retirement Plan for Textron Key Executives (the “Plan”) is an
      unfunded, nonqualified deferred compensation arrangement.  The Plan
      provides supplemental retirement benefits for designated Key Executives of
      Textron and its affiliates.  The Plan was amended and restated,
      effective as of January 1, 2008, to comply with Section 409A of the Internal
      Revenue Code of 1986, as amended (“IRC”).

     

    
      	
              A.

            	
              Key
                Executive Protected
                Benefits

            

    

    
      	
               

            	
              (Earned
                and Vested Before 2005)

            

    

     

    The
      portion of Appendix A that follows this Introduction sets forth the provisions
      of the Plan as in effect on October 3, 2004, when IRC Section 409A was enacted
      as part of the American Jobs Creation Act of 2004.  Key Executives’
supplemental
      retirement benefits
      that were
      earned and vested
      (within the meaning of IRC
Section
      409A)
      before January 1, 2005, and any subsequent increase that is permitted to be
      included in these
amounts
      under IRC
Section
      409A, (“Key Executive Protected Benefits”), are calculated and paid
      solely as provided in Appendix A, and are not subject to any other provisions
      of
      the Supplemental
      Retirement Plan for Textron Key Executives. 

     

    The
      Key
      Executive Protected Benefits are not intended to be subject to IRC Section
      409A.  No amendment to this Appendix A that would constitute a
“material modification” for purposes of IRC Section 409A shall be effective
      unless the amending instrument states that it is intended to materially modify
      Appendix A and to cause the Key Executive Protected Benefits to become subject
      to IRC Section 409A.  Although the Key Executive Protected Benefits
      are not intended to be subject to IRC Section 409A, no Textron Company (nor
      any
      director, officer, or other representative of a Textron Company) shall be liable
      for any adverse tax consequence suffered by a Participant, Surviving Spouse,
      or
      Beneficiary if a Key Executive Protected Benefit becomes subject to IRC Section
      409A.

    

    
      	
              B.

            	
              Benefits
                Subject To Section 409A

            

    

    
      	
               

            	
              (Earned
                or Vested From 2005 Through
                2007)

            

    

     

    Supplemental
      retirement benefits that were earned by Key Executives after 2004, and
      Supplemental retirement benefits that became vested after 2004, are subject
      to
      the provisions of IRC Section 409A.  To the extent that these benefits
      were earned under the Plan before January 1, 2008, the benefits shall be
      calculated under the prior Plan provisions set forth in this Appendix
      A.  However, any benefits earned or vested under the Plan after 2004
      shall be paid exclusively as provided in the Supplemental Retirement

     

    Apppendix
      A

    Page
      2

     

     

     

    Plan
      for
      Textron Key Executives (not including this Appendix A), and shall not be subject
      to any provision of Appendix A that relates to the payment or distribution
      of
      benefits.  Although the provisions of the Supplemental Retirement Plan
      for Textron Key Executives generally are effective as of January 1, 2008, the
      provisions that govern the distribution of benefits earned or vested after
      2004
      under the prior Plan provisions are effective as of January 1,
      2005.

    

    Article
      I—Definitions

     

    Whenever
      used in this document, the following terms shall have the meanings set forth
      in
      this Article unless a contrary or different meaning is expressly
      provided:

     

    
      	
              1.01

            	
              “Beneficiary”
                means the person or persons entitled under this Plan to receive Plan
                benefits after a Participant’s
                death.

            

    

     

    
      	
              1.02

            	
              “Benefits
                Committee” means the Employee Benefits Committee of
                Textron.

            

    

     

    
      	
              1.03

            	
              “Board”
                means the Board of Directors of
                Textron.

            

    

     

    
      	
              1.04

            	
              “Compensation”
                means base salary, accrued annual incentive compensation, performance
                units, and performance share units, whether or not deferred under
                the
                Deferred Income Plan for Textron Key Executives or Textron Deferred
                Income
                Plan for Executives.  However, for any Key Executive who is
                first awarded performance share units after October 26, 1999, performance
                share units shall not be included in Compensation.  Compensation
                does not include awards under the Supplemental Bonus Plan for Textron
                Financial Corporation Executives or the Textron Quality Management
                Plan.  “Average Compensation” means the average of a
                Participant’s Compensation during the five consecutive years in which the
                Compensation is highest.

            

    

     

    
      	
              1.05

            	
              “Key
                Executive” means an employee of a Textron Company who has been and
                continues to be designated as a Key Executive by Textron’s Chief Executive
                Officer and Chief Human Resources
                Officer.

            

    

     

    
      	
              1.06

            	
              “Normal
                Form of Benefit” means a life annuity unless the Participant was
                designated a Participant in this Plan prior to July 23, 1998, in
                which
                case the Normal Form of Benefit shall be a Joint and 50% Survivor
                annuity.

            

    

     

    
      	
              1.07

            	
              “Participant”
                means a Key Executive selected by Textron’s Chief Executive Officer for
                participation in this Plan.

            

    

     

    
      	
              1.08

            	
              “Pension
                Plan” means the Bell Helicopter Textron Retirement Plan, the Textron
                Master Retirement Plan, or an included
                plan.

            

    

     

    
      	
              1.09

            	
              “Plan”
                means this Restated Supplemental Retirement Plan for Textron Key
                Executives, as amended and restated from time to
                time.

            

    

     

    
      Apppendix
        A

      Page
        3

    

     

     

    
      	
              1.10

            	
              “Surviving
                Spouse” means a Participant’s spouse who is married to the Participant on
                the day of the Participant’s death while active or on the dates of the
                Participant’s retirement and death.

            

    

     

    
      	
              1.11

            	
              “Textron”
                means Textron Inc., a Delaware corporation, and any successor of
                Textron
                Inc.

            

    

     

    
      	
              1.12

            	
              “Textron
                Company” means Textron or any company controlled by or under common
                control with Textron.

            

    

     

    Article
      II—Benefit

     

    
      	
              2.01

            	
              Subject
                to Sections 2.02 and 2.03, the maximum benefit provided to Participants
                who qualify for benefits under this Plan is an annuity commencing
                upon
                retirement equal to 50% of Average Compensation (the “Target Benefit”)
                less the offsets and adjusted by the Early Retirement Factors as
                set out
                below.

            

    

     

    
      	
              2.02

            	
              The
                Target Benefit shall be reduced by any nonqualified or qualified
                pension
                plan benefits payable at age 65 from a prior employer other than
                a Textron
                employer.  The reduction for any prior employer plans shall be
                the actuarial equivalent of a life annuity.  The net Target
                Benefit after reduction for any prior employer plans shall then be
                multiplied by the Early Retirement Factor as set out in Section 2.03
                below.  The product of the net Target Benefit times the Early
                Retirement Factor shall then be reduced by any and all amounts payable
                to
                the Participant at the time of retirement under any qualified or
                nonqualified Pension Plan.  The reduction for all Pension Plans
                shall be a Normal Form of Benefit based on the tables in the Pension
                Plan.  It shall be the obligation of each Participant to
                disclose to Textron any amounts that might be used under this section
                to
                reduce the benefits provided by this Plan.  Such disclosure
                shall include information on annuity payments and lump-sum cash payments
                from other plans.

            

    

     

    
      	
              2.03

            	
              The
                Participant’s benefits under this Plan shall be based on the Participant’s
                age at retirement (including death or disability) in accordance with
                the
                following schedule:

            

    

     

                  
      Early Retirement

    Age
      at
      Retirement                         Factors

     

    65                                           100%

     

    64                                           90

     

    63                                           80

     

    62                                           70

     

    61                                           60

     

    60                                           50

     

     

    
      
        Apppendix
          A

        Page
          4

      

    

     

     

    Less
      Than
      60                          0

     

    The
      Organization and Compensation Committee of the Board shall, in its sole
      discretion, have the authority to provide a Participant with an enhanced
      benefit.

     

    
      	
              2.04

            	
              The
                Normal Form of Benefit shall be a life annuity unless the Participant
                was
                designated a Participant in this Plan prior to July 23, 1998, in
                which
                case the Normal Form of Benefit shall be a Joint and 50% Survivor
                annuity.  The payment of any benefit under Section 2.01 shall be
                paid in the Normal Form of Benefit or otherwise as determined by
                Textron’s
                Chief Executive Officer in his sole discretion after considering
                any form
                of payment requested by the Participant, Surviving Spouse, or other
                Beneficiary entitled to receive the benefits.  Any form of
                benefit payable other than the Normal Form shall be the actuarial
                equivalent of the Normal Form using the factors in the Textron Master
                Retirement Plan.  For any individual who becomes a Participant
                after July 23, 1998, their benefit payments will be reduced if they
                elect
                a 50% or a 100% Joint and Survivor Benefit.  The Joint and
                Survivor factors are the same factors provided by the Textron Master
                Retirement Plan.

            

    

     

    
      	
              2.05

            	
              If
                a Participant dies after age 60 and prior to benefit commencement
                under
                this Plan, the Participant’s Surviving Spouse will receive an annuity
                equal to the amount the Spouse would have received assuming the
                Participant had requested a Joint and 50% Survivor annuity and retired
                the
                day before he died.

            

    

     

    Article
      III—Unfunded Plan

     

    
      	
              3.01

            	
              Benefits
                to be provided under this Plan are unfunded obligations of
                Textron.  Nothing contained in this Plan shall require Textron
                to segregate any monies from its general funds, to create any trust,
                to
                make any special deposits, or to purchase any policies of insurance
                with
                respect to such obligations.  If Textron elects to purchase
                individual policies of insurance on one or more of the Participants
                to
                help finance its obligations under this Plan, such individual policies
                and
                the proceeds therefrom shall at all times remain the sole property
                of
                Textron and neither the Participants whose lives are insured nor
                their
                Beneficiaries shall have any ownership rights in such policies of
                insurance.

            

    

     

    
      	
              3.02

            	
              The
                Plan is maintained primarily for the purpose of providing deferred
                compensation for a select group of management or highly compensated
                employees within the meaning of Sections 201(2), 301(a)(3), and 401(a)(1)
                of the Employee Retirement Income Security Act of 1974, as amended
                (“ERISA”).

            

    

     

    
      	
              3.03

            	
              No
                Participant shall be required or permitted to make contributions
                to this
                Plan.

            

    

     

    
      
        Apppendix
          A

        Page
          4

      

    

     

    Article
      IV—Plan Administration

     

    
      	
              4.01

            	(a) 
              Textron shall be the plan administrator of this Plan and shall
              be
              solely responsible for its general administration and
              interpretation.  Textron shall have all such powers as may be
              necessary to carry out the respective provisions
              hereof.  Textron may from time to time establish rules of the
              administration of this Plan and the transaction of its
              business.  Subject to Section 4.03, any action by Textron shall
              be final, conclusive, and binding on each Participant and all persons
              claiming by, through, or under any
              Participant.

    

     

    
      	
               

            	
              (b)       Notwithstanding
                any provision in this Plan to the contrary, the Organization and
                Compensation Committee of the Board shall render all decisions under
                this
                Plan (including participation, Plan benefits, and benefit distributions)
                affecting Textron’s Chief Executive
                Officer.

            

    

     

    
      	
               

            	
              
                (c)       Textron
                  (and any person or persons to whom it delegates any of its authority
                  as
                  plan administrator) shall have discretionary authority to determine
                  eligibility for Plan benefits, to construe the terms of the Plan,
                  and to
                  determine all questions arising in the administration of the Plan,
                  and
                  shall make all such determinations and interpretations in a
                  nondiscriminatory
                  manner.

              

            

    

     

    
      	
               

            	
              
                (d)       Notwithstanding
                  any provision to the contrary, no benefit shall be paid to any
                  Participant
                  while employed by
                  Textron.

              

            

    

     

    
      	
              4.02

            	
              Textron
                may employ or engage such agents, accountants, actuaries, counsel,
                other
                experts, and other persons as it deems necessary or desirable in
                connection with the interpretation and administration of this
                Plan.  Textron shall be entitled to rely upon all certifications
                made by an accountant selected by Textron.  Textron and its
                committees, officers, directors, and employees shall not be liable
                for any
                action taken, suffered, or omitted by them in good faith in reliance
                upon
                the advice or opinion of any such agent, accountant, actuary, counsel,
                or
                other expert.  All action so taken, suffered, or omitted shall
                be conclusive upon each of them and upon all other persons interested
                in
                this Plan.

            

    

     

    
      	
              4.03

            	
              Textron
                may require proof of death or total disability of any Participant,
                former
                Participant or beneficiary and evidence of the right of any person
                to
                receive any Plan benefit.

            

    

     

    
      	
              4.04

            	
              Claims
                under this Plan shall be filed in writing with Textron, and shall
                be
                reviewed and resolved pursuant to the claims procedure in Section
                4.05 of
                the Supplemental Retirement Plan for Textron Key
                Executives.

            

    

     

    
      	
              4.05

            	
              Textron
                shall withhold from benefits paid under this Plan any taxes or other
                amounts required to be withheld by
                law.

            

    

     

    
      
        Apppendix
          A

        Page
          6

      

    

     

    Article
      V—Miscellaneous

     

    
      	
              5.01

            	
              Unless
                a contrary or different meaning is expressly provided, each use in
                this
                Plan of the masculine or feminine gender shall include the other
                and each
                use of the singular number shall include the
                plural.

            

    

     

    
      	
              5.02

            	
              (a)

            	
                  Textron
                shall recognize the right of an alternate payee named in a domestic
                relations order to receive all or a portion of a Participant’s benefit
                under the Plan, provided that (1) the domestic relations order would
                be a
                “qualified domestic relations order” within the meaning of IRC Section
                414(p) of the Code if IRC Section 414(p) were applicable to the Plan
                (except that the order may require payment to be made to the alternate
                payee before the Participant’s earliest retirement age), (2) the domestic
                relations order does not purport to give the alternate payee any
                right to
                assets of any Textron Company, and (3) the domestic relations order
                does
                not purport to allow the alternate payee to defer payments beyond
                the date
                when the benefits assigned to the alternate payee would have been
                paid to
                the Participant.

            

    

     

    
      	
              (b) 
                

            	
                  Except
                as provided in subsection (a) concerning domestic relations orders,
                no
                amount payable at any time under this Plan shall be subject in any
                manner
                to alienation, sale, transfer, assignment, pledge or encumbrance
                of any
                kind to the extent that the assignment or other action would cause
                the
                amount to be included in the Participant’s gross income or treated as a
                distribution for federal income tax purposes.  A Participant
                may, with the written approval of the Benefits Committee, make an
                assignment of a benefit for estate planning or similar purposes if
                the
                assignment does not cause the amount to be included in the Participant’s
                gross income or treated as a distribution for federal income tax
                purposes.  Any attempt to alienate, sell, transfer, assign,
                pledge or otherwise encumber any such benefit, whether presently
                or
                subsequently payable, shall be void unless so approved.  Except
                as required by law, no benefit payable under this Plan shall in any
                manner
                be subject to garnishment, attachment, execution or other legal process,
                or be liable for or subject to the debts or liability of any Participant,
                Surviving Spouse, or Beneficiary.

            

    

     

    
      	
              5.03

            	
              Notwithstanding
                any Plan provision to the contrary, the Board or its designee shall
                have
                the right to amend, modify, suspend, or terminate this Plan at any
                time by
                written notification of such action; provided, however, that no amendment,
                modification, suspension, or
                termination:

            

    

     

    
      	
               

            	
              (a)

            	
              Shall
                reduce an amount payable under Article II before the effective date
                of the
                amendment, modification, suspension or termination;
                or

            

    

     

    
      	
               

            	
              (b)

            	
              Shall
                be made to Section 5.04 following a Change in
                Control.

            

    

     

    
      
        Apppendix
          A

        Page
          7

      

    

     

     

    
      	
              5.04

            	
              If
                after a Change in Control any claim is made or any litigation is
                brought
                by a Participant or beneficiary to enforce or interpret any provision
                contained in this Plan, Textron and the “person” or “group” described in
                the next following sentence shall be liable, jointly and severally,
                to
                indemnify the Participant or beneficiary for the Participant’s or
                beneficiary’s reasonable attorney’s fees and disbursements incurred in any
                such claim or litigation and for prejudgment interest at the Bankers
                Trust
                Company prime interest rate on any money award or judgment obtained
                by the
                Participant or beneficiary.  In the event that the Participant
                retires or his employment otherwise terminates at any time after
                a “Change
                in Control” as defined below, the Participant shall, in lieu of the
                benefit payable under Article II, receive a benefit equal to the
                actuarial
                present value at termination of the benefit the Participant would
                have
                received had the Participant terminated employment at age 65, based
                upon
                the Participant’s Average Compensation as of the date of her
                termination.  If the Participant terminates within 24 months
                after the Change in Control, such benefit shall be paid in a lump
                sum.  If the Participant terminates more than 24 months after
                the Change in Control, then the Participant shall be paid in an
                annuity.  The Benefits Committee shall select the discount rate
                and mortality table to be used in determining the actuarial present
                values.    

            

      	 	
               

              For
                purposes of this Plan, a “Change in Control” shall occur if (i) any
                “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of
                the Securities Exchange Act of 1934, as amended (the “Act”)) other than
                Textron, any trustee or other fiduciary holding Textron common stock
                under
                an employee benefit plan of Textron or a related company, or any
                corporation which is owned, directly or indirectly, by the stockholders
                of
                Textron in substantially the same proportions as their ownership
                of
                Textron common stock, is or becomes (other than by acquisition from
                Textron or a related company) the “beneficial owner” (as defined in Rule
                13d-3 under the Act) of more than 30% of the then outstanding voting
                stock
                of Textron, or (ii) during any period of two consecutive years,
                individuals who at the beginning of such period constitute the Board
                (and
                any new director whose election by the Board or whose nomination
                for
                election by Textron’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 such period or whose election or nomination for
                election was previously so approved) cease for any reason to constitute
                a
                majority thereof, or (iii) stockholders of Textron approve a merger or
                consolidation of Textron with any other corporation, other than a
                merger
                or consolidation which would result in the voting securities of Textron
                outstanding immediately prior thereto continuing to represent (either
                by
                remaining outstanding or by being converted into voting securities
                of the
                surviving entity) more than 50% of the combined voting power of the
                voting
                securities of Textron or such surviving entity outstanding immediately
                after such merger or consolidation, or (iv) the stockholders of Textron
                approve a plan of complete liquidation of Textron or an agreement
                for the
                sale or disposition by Textron of all or substantially all of Textron’s
                assets.

            

    

     

     

     

     

    
      
        Apppendix
          A

        Page
          8

      

    

     

    
      	
              5.05

            	
              This
                Plan shall be construed in accordance with the laws of the State
                of
                Delaware.

            

    

     

    
      	
              5.06

            	
              Nothing
                contained in this Plan shall be construed as a contract of employment
                between any Participant and any Textron Company, or to suggest or
                create a
                right in any Participant to be continued in any capacity with, or
                as an
                employee of, any Textron Company.

            

    

     

    
      
        Apppendix
          A

        Page
          9

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