Document:

EXHIBIT 10

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the "Agreement") is entered into as of
this 10th day of March 2000 by and between Textron Inc. (the
"Company"), a Delaware corporation having its principal office at 40
Westminster Street, Providence, Rhode Island 02903 and Terrence
O'Donnell residing at 5133 Yuma Street, N.W., Washington, DC 20016 (the
"Executive").

W I T N E S S E T H:

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

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

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

1.     Term of Employment

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

2.     Position and
Responsibilities

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

3.     Compensation and Benefits

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

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

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

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

3.4     Employee Benefits.
The Executive shall, to the extent eligible, be entitled to participate at a
level commensurate with his position in all employee benefit welfare and
retirement plans and programs, as well as equity plans, generally provided by
the Company to its senior executives in accordance with the terms thereof as in
effect from time to time. In particular, the Executive shall participate in (a)
the Textron Key Executive Benefits Program (which shall include (i) the Deferred
Income Plan, (ii) the Supplemental Benefits Plan, and (iii) the
Survivor Benefit Plan), (b) the Supplemental Retirement Plan, and
(c) the Executive Supplemental Retirement Plan.

3.5     Vacation. The
Executive shall be entitled to paid vacation in accordance with the standard
written policies of the Company with regard to vacations of executives, but in
no event less than four (4) weeks per calendar year.

3.6     Perquisites. The
Company shall provide to the Executive, at the Company's cost, all
perquisites to which other senior executives of the Company are generally
entitled to receive and such other perquisites which are suitable to the
character of the Executive's position with the Company and adequate for
the performance of his duties hereunder. To the extent legally permissible, the
Company shall not treat such amounts as income to the Executive.

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

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

4.     Expenses

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

5.     Termination of Employment

The Executive's employment with the Company (including but not
limited to any subsidiary or affiliate or the Company) and the Employment Term
shall terminate upon the occurrence of the first of the following events:

        (a)     Automatically on
        the date of the Executive's death.

        (b)     Upon thirty (30)
        days written notice by the Company to the Executive of a termination due
        to Disability, provided such notice is delivered during the period of
        Disability. The term "Disability" shall mean, for purposes of
        this Agreement, the inability of the Executive, due to injury, illness,
        disease or bodily or mental infirmity, to engage in the performance of
        his material duties of employment with the Company as contemplated by
        Section 2 herein for a period of more than one hundred eighty (180)
        consecutive days or for a period that is reasonably expected to exist
        for a period of more than one hundred eighty (180) consecutive days,
        provided that interim returns to work of less than ten (10) consecutive
        business days in duration shall not be deemed to interfere with a
        determination of consecutive absent days if the reason for absence
        before and after the interim return are the same. The existence or
        non-existence of a Disability shall be determined by a physician
        agreed upon in good faith by the Executive (or his representatives) and
        the Company. It is expressly understood that the Disability of the
        Executive for a period of one hundred eighty (180) consecutive days or
        less shall not constitute a failure by him to perform his duties
        hereunder and shall not be deemed a breach or default and the Executive
        shall receive full compensation for any such period of Disability or for
        any other temporary illness or incapacity during the term of this
        Agreement. In no event shall compensation cease by reason of a
        termination for Disability prior to that date on which the Executive
        shall commence his eligibility for payments pursuant to the
        Company's disability benefits program.

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

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

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

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

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

Section 6.  Consequences of a Termination of Employment

6.1     Termination Due to Death
or Retirement. If the Employment Term ends on account of the
Executive's termination due to death pursuant to Section 5(a) above or
retirement pursuant to Section 5(c) above, the Executive (or the
Executive's surviving spouse, or other beneficiary as so designated by
the Executive during his lifetime, or to the Executive's estate, as
appropriate) shall be entitled, in lieu of any other payments or benefits, to
(i) payment promptly of any unpaid Base Salary, unpaid annual incentive
compensation (for the preceding fiscal year) and any accrued vacation, (ii)
reimbursement for any unreimbursed business expenses incurred prior to the date
of termination, and (iii) any amounts, benefits or fringes due under any equity,
benefit or fringe plan, grant or program in accordance with the terms of said
plan, grant or program but without duplication (collectively, the "Accrued
Obligations").

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

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

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

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

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

  

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

Section 7.    No Mitigation/No
Offset/Release

        (a)     In the event of
        any termination of employment hereunder, the Executive shall be under no
        obligation to seek other employment and there shall be no offset against
        any amounts due the Executive under this Agreement on account of any
        remuneration attributable to any subsequent employment that the
        Executive may obtain. The amounts payable hereunder shall not be subject
        to setoff, counterclaim, recoupment, defense or other right which the
        Company may have against the Executive or others, except as specifically
        set forth in Section 9 hereof or upon obtaining by the Company of a
        final unappealable judgement against the Executive.

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

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

        (d)     The amounts and
        benefits provided under Sections 6 and 8 hereof are intended to be
        inclusive and not duplicative of the amounts and benefits due under the
        Company's employee benefit plans and programs to the extent they
        are duplicative.

8.     Change in Control

8.1     Employment Termination
in Connection with a Change in Control. In the event of a Qualifying
Termination (as defined below) during the period commencing one-hundred
eighty (180) days prior to the effective date of a Change in Control and
terminating on the second anniversary of the effective date of a Change in
Control (the "Change in Control Protection Period"), then in lieu of
the benefits provided to the Executive under Section 6.3 of this Agreement, the
Company shall pay the Executive the following amounts within (except as
otherwise provided) thirty (30) business days of the Qualifying Termination (or,
if later, the effective date of the Change in Control; in which case any amounts
or benefits previously paid pursuant to Section 6 shall be setoff against those
under this Section 8) and provide the following benefits:

  
        (a)     Any Accrued
        Obligations.

        (b)     A
        lump-sum cash payment equal to three (3) times the highest rate
        of the Executive's Base Salary rate in effect at any time up to
        and including the date of the Executive's termination.

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

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

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

        (f)     To the extent
        eligible prior or after the Change in Control, continued participation,
        (coordinated with (e) above to the extent duplicative), at no additional
        after tax cost to the Executive than the Executive would have as an
        employee, in all welfare plans, until three (3) years after the date of
        termination, provided, however, that in the event the Executive obtains
        other employment that offers substantially similar or improved benefits,
        as to any particular welfare plan, such continuation of coverage by the
        Company for such similar or improved benefit under such plan shall
        immediately cease. To the extent such coverage cannot be provided under
        the Company's welfare benefit plans without jeopardizing the tax
        status of such plans, for underwriting reasons or because of the tax
        impact on the Executive, the Company shall pay the Executive an amount
        such that the Executive can purchase such benefits separately at no
        greater after tax cost to him than he would have had if the benefits
        were provided to him as an employee.

        (g)     A
        lump-sum cash payment of the actuarial present value equivalent
        (as determined in accordance with the most favorable (to the Executive)
        overall actuarial assumptions and subsidies in any of the
        Company's tax-qualified or nonqualified type defined
        benefit pension plans in which the Executive then participates) of the
        accrued benefits accrued by the Executive as of the date of termination
        under the terms of any nonqualified defined benefit type retirement
        plan, including but not limited to, the Amended and Restated
        Supplemental Executive Retirement Plan for Textron Inc. Key Executives
        and the Supplemental Benefits Plan and assuming the benefit was fully
        vested without regard to any minimum age or service requirements. For
        this purpose, such benefits shall be calculated under the assumption
        that the Executive's employment continued following the date of
        termination for three (3) full years (i.e., three (3) additional years
        of age (including, but not limited to, for purposes of determining the
        actuarial present value), compensation and service credits shall be
        added).

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

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

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

        (k)     Outplacement
        services at a level commensurate with the Executive's position,
        including use of an executive office and secretary, for a period of one
        (1) year commencing on the date of termination but in no event extending
        beyond the date on which the Executive commences other full time
        employment.

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

  

For purposes of this Section 8, a Qualifying Termination shall mean any
termination of the Executive's employment (i) by the Company without
Cause, or (ii) by the Executive for Good Reason.

8.2     Definition of
"Change in Control." A Change in Control of the Company shall be
deemed to have occurred as of the first day any one or more of the following
conditions shall have been satisfied:

  
        (a)     Any
        "person" or "group" (within the meaning of Section
        13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended
        (the "Exchange Act")) other than the Company, any trustee or
        other fiduciary holding Company common stock under an employee benefit
        plan of the Company or a related company, or any corporation which is
        owned, directly or indirectly, by the stockholders of the Company in
        substantially the same proportions as their ownership of the
        Company's common stock, is or becomes the beneficial owner (as
        defined in Rule 13d-3 under the Exchange Act) of more than
        thirty percent (30%) of the then outstanding voting stock;

        (b)     During any
        period of two (2) consecutive years, individuals who at the beginning of
        such period constitute the Board and any new director whose election by
        the Board or nomination for election by the Company's
        stockholders was approved by a vote of at least two-thirds of
        the directors then still in office who either were directors at the
        beginning of the two year period or whose election or nomination for
        election was previously so approved, cease for any reason to constitute
        at least a majority of the Board;

        (c)     The consummation
        of a merger or consolidation of the Company with any other corporation,
        other than a merger or consolidation which would result in the voting
        securities of the Company outstanding immediately prior thereto
        continuing to represent (either by remaining outstanding or being
        converted into voting securities of the surviving entity) more than
        fifty percent (50%) of the combined voting securities of the Company or
        such surviving entity outstanding immediately after such merger or
        consolidation; or

        (d)     The approval of
        the stockholders of the Company of a plan of complete liquidation of the
        Company or an agreement for the sale or disposition by the Company of
        all or substantially all of its assets.

  

8.3     Excise Tax Equalization
Payment. In the event that the Executive becomes entitled to payments and/or
benefits which would constitute "parachute payments" within the
meaning of Section 280G(b)(2) of the Code, the provisions of Exhibit A will
apply.

9.     Noncompetition,
Confidentiality and Nondisparagement

9.1     Agreement Not to Compete.

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

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

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

  

9.2     Definitions.

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

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

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

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

  

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

9.4     Confidential Information.

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

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

  

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

9.6     Remedies.

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

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

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

  

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

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

  
    
    9.9 Nondisparagement.

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

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

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

  

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

10.     Liability Insurance

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

11.     Assignment

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

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

12.     Legal Remedies

12.1     Payment of Legal Fees.
The Company shall pay the Executive's reasonable legal fees and costs
associated with entering into this Agreement. To the fullest extent permitted by
law, the Company shall promptly pay upon submission of statements all legal and
other professional fees, costs of litigation, prejudgment interest, and other
expenses incurred in connection with any dispute arising hereunder; provided,
however, the Company shall be reimbursed by the Executive for (i) the fees and
expenses advanced in the event the Executive's claim is in a material
manner in bad faith or frivolous and the arbitrator or court, as applicable,
determines that the reimbursement of such fees and expenses is appropriate, or
(ii) to the extent that the arbitrator or court, as appropriate, determines that
such legal and other professional fees are clearly and demonstrably
unreasonable.

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

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

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

13.     Miscellaneous

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

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

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

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

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

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

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

14.     Governing Law

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

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

	 	
      s\Terrence O'Donnell

	 	
      TERRENCE O'DONNELL

	 	 
	 	 
	 	
      TEXTRON INC.

	 	 
	 	
      By: s\John D. Butler

	 	
           JOHN D. BUTLER 

	 	
           Executive Vice President & Chief
      Human

           Resources Officer

Exhibit A

Parachute Gross Up

(a)     In the event that the
Executive shall become entitled to payments and/or benefits provided by this
Agreement or any other amounts in the "nature of compensation"
(whether pursuant to the terms of this Agreement or any other plan, arrangement
or agreement with the Company, any person whose actions result in a change of
ownership or effective control covered by Section 280G(b)(2) of the Code or any
person affiliated with the Company or such person) as a result of such change in
ownership or effective control (collectively the "Company Payments"),
and such Company Payments will be subject to the tax (the "Excise
Tax") imposed by Section 4999 of the Code (and any similar tax that may
hereafter be imposed by any taxing authority) the Company shall pay to the
Executive at the time specified in subsection (d) below an additional amount
(the "Gross-up Payment") such that the net amount retained by
the Executive, after deduction of any Excise Tax on the Company Payments and any
U.S. federal, state, and for local income or payroll tax upon the
Gross-up Payment provided for by this paragraph (a), but before
deduction for any U.S. federal, state, and local income or payroll tax on the
Company Payments, shall be equal to the Company Payments.

(b)     For purposes of
determining whether any of the Company Payments and Gross-up Payments
(collectively the "Total Payments") will be subject to the Excise Tax
and the amount of such Excise Tax, (x) the Total Payments shall be treated as
"parachute payments" within the meaning of Section 280G(b)(2) of the
Code, and all "parachute payments" in excess of the "base
amount" (as defined under Code Section 280G(b)(3) of the Code) shall be
treated as subject to the Excise Tax, unless and except to the extent that, in
the opinion of the Company's independent certified public accountants
appointed prior to any change in ownership (as defined under Code Section
280G(b)(2)) or tax counsel selected by such accountants (the
"Accountants") such Total Payments (in whole or in part) either do not
constitute "parachute payments," represent reasonable compensation for
services actually rendered within the meaning of Section 280G(b)(4) of the Code
in excess of the "base amount" or are otherwise not subject to the
Excise Tax, and (y) the value of any non-cash benefits or any
deferred payment or benefit shall be determined by the Accountants in accordance
with the principles of Section 280G of the Code.

(c)     For purposes of
determining the amount of the Gross-up Payment, the Executive shall be
deemed to pay U.S. federal income taxes at the highest marginal rate of U.S.
federal income taxation in the calendar year in which the Gross-up
Payment is to be made and state and local income taxes at the highest marginal
rate of taxation in the state and locality of the Executive's residence
for the calendar year in which the Company Payment is to be made, net of the
maximum reduction in U.S. federal income taxes which could be obtained from
deduction of such state and local taxes if paid in such year. In the event that
the Excise Tax is subsequently determined by the Accountants to be less than the
amount taken into account hereunder at the time the Gross-up Payment is
made, the Executive shall repay to the Company, at the time that the amount of
such reduction in Excise Tax is finally determined, the portion of the prior
Gross-up Payment attributable to such reduction (plus the portion of the
Gross-up Payment attributable to the Excise Tax and U.S. federal, state
and local income tax imposed on the portion of the Gross-up Payment
being repaid by the Executive if such repayment results in a reduction in Excise
Tax or a U.S. federal, state and local income tax deduction), plus interest on
the amount of such repayment at the rate provided in Section 1274(b)(2)(B) of
the Code. Notwithstanding the foregoing, in the event any portion of the
Gross-up Payment to be refunded to the Company has been paid to any U.S.
federal, state and local tax authority, repayment thereof (and related amounts)
shall not be required until actual refund or credit of such portion has been
made to the Executive, and interest payable to the Company shall not exceed the
interest received or credited to the Executive by such tax authority for the
period it held such portion. The Executive and the Company shall mutually agree
upon the course of action to be pursued (and the method of allocating the
expense thereof) if the Executive's claim for refund or credit is
denied.

In the event that the Excise Tax is later determined by the Accountant or the
Internal Revenue Service to exceed the amount taken into account hereunder at
the time the Gross-up Payment is made (including by reason of any
payment the existence or amount of which cannot be determined at the time of the
Gross-up Payment), the Company shall make an additional Gross-up
Payment in respect of such excess (plus any interest or penalties payable with
respect to such excess) at the time that the amount of such excess is finally
determined.

(d)     The Gross-up
Payment or portion thereof provided for in subsection (c) above shall be paid
not later than the thirtieth (30th) day following an event occurring which
subjects the Executive to the Excise Tax; provided, however, that if the amount
of such Gross-up Payment or portion thereof cannot be finally determined
on or before such day, the Company shall pay to the Executive on such day an
estimate, as determined in good faith by the Accountant, of the minimum amount
of such payments and shall pay the remainder of such payments (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code), subject to
further payments pursuant to subsection (c) hereof, as soon as the amount
thereof can reasonably be determined, but in no event later than the ninetieth
day after the occurrence of the event subjecting the Executive to the Excise
Tax. In the event that the amount of the estimated payments exceeds the amount
subsequently determined to have been due, such excess shall constitute a loan by
the Company to the Executive, payable on the fifth day after demand by the
Company (together with interest at the rate provided in Section 1274(b)(2)(B) of
the Code).

(e)     In the event of any
controversy with the Internal Revenue Service (or other taxing authority) with
regard to the Excise Tax, the Executive shall permit the Company to control
issues related to the Excise Tax (at its expense), provided that such issues do
not potentially materially adversely affect the Executive, but the Executive
shall control any other issues. In the event the issues are interrelated, the
Executive and the Company shall in good faith cooperate so as not to jeopardize
resolution of either issue, but if the parties cannot agree the Executive shall
make the final determination with regard to the issues. In the event of any
conference with any taxing authority as to the Excise Tax or associated income
taxes, the Executive shall permit the representative of the Company to accompany
the Executive, and the Executive and the Executive's representative
shall cooperate with the Company and its representative.

(f)     The Company shall be
responsible for all charges of the Accountant.

(g)     The Company and the
Executive shall promptly deliver to each other copies of any written
communications, and summaries of any verbal communications, with any taxing
authority regarding the Excise Tax covered by this Exhibit A.

EXHIBIT B TO EMPLOYMENT AGREEMENT

OF TERRENCE O'DONNELL

DATED AS OF MARCH 10, 2000 (the "Employment
Agreement")

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

1)     Hiring Bonus:          

The Executive shall receive a special hiring bonus in the amount of $200,000,
payable not later than April 1, 2000, subject to withholding and other
deductions in accordance with the Company's usual compensation policies.

2)     Performance Share
Units:          

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

  
    a)     Cycle
    2000    4,000 PSU's

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

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

  

3)     Stock Options:

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

4)     Special Pension
Calculations

a)     All long term incentive
compensation earned by the Executive (whether or not deferred) pursuant to any
long term incentive plan (including without limitation the Performance Share
Units) shall be included in measuring the Executive's compensation for
purposes of any of the Company's pension plans.

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

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

5)     Deferred Income Plan

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

6)     Perquisites

The Executive shall be entitled to:

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

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

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

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

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

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

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

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

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

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

8)     Special Relationship
with W&C

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

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

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

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

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

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

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

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

9)     Approvals

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

EXHIBIT 10.2

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT, is entered into as of this
18th day of July 2000 by and between Textron Inc. (the "Company"), a Delaware corporation
having its principal office at 40 Westminster Street, Providence, Rhode Island
02903 and Kenneth C. Bohlen (the "Executive").

W I T N E S S E T H:

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

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

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

1.     Term of Employment

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

2.     Position and
Responsibilities

 During the Employment Term, the Executive shall serve as the Executive Vice
President and Chief Innovation Officer of the Company or in such higher capacity
as agreed by the Company and the Executive. The Executive shall report
exclusively to the Chief Executive Officer and the Board of Directors of the
Company (the "Board"). The Executive shall, to the extent appointed or
elected, serve on the Board as a director and as a member of any committee of
the Board, in each case, without additional compensation. The Executive shall,
to the extent appointed or elected, serve as a director or as a member of any
committee of the board (or the equivalent bodies in a non-corporate
subsidiary or affiliate) of any of the Company's subsidiaries or
affiliates and as an officer or employee (in a capacity commensurate with his
position with the Company) of any such subsidiaries or affiliates, in all cases,
without additional compensation or benefits and any compensation paid to the
Executive, or benefits provided to the Executive, in such capacities shall be a
credit with regard to the amounts due hereunder from the Company. The Executive
shall have duties, authorities and responsibilities generally commensurate with
the duties, authorities and responsibilities of persons in similar capacities in
similarly sized companies, subject to the By-laws of the Company the
organizational structure of the Company. The Executive shall devote
substantially all of his business time, attention and energies to the
performance of his duties hereunder, provided the foregoing will not prevent the
Executive from participating in charitable, community or industry affairs, from
managing his and his family's personal passive investments, and (with
the consent of the Chief Executive Officer or the Organization and Compensation
Committee (or its successor) of the Board (the "O&C Committee"),
which consent will not be unreasonably withheld, conditioned or delayed) serving
on the board of directors of other companies, provided that these activities do
not materially interfere with the performance of his duties hereunder or create
a potential business conflict or the appearance thereof.

3.     Compensation and Benefits

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

  

3.1     Base Salary. The
Company shall pay the Executive an initial base salary (the "Base
Salary") at a rate of $380,000. Base Salary shall be paid to the Executive
in accordance with the Company's normal payroll practices for
executives. Base Salary shall be reviewed at least annually by the O&C
Committee (or as otherwise designated by the Board) to ascertain whether, in the
judgment of the reviewing committee, such Base Salary should be increased. If so
increased, Base Salary shall not be thereafter decreased and shall thereafter,
as increased, be the Base Salary hereunder.

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

3.3     Long-Term
Incentives. The Company shall provide the Executive the opportunity to earn
long-term incentive awards under the current equity and cash based plans
and programs or replacements therefore; provided, however, that unless replaced
with Executive's written consent, Executive shall be entitled to (a)
receive restricted stock equivalents of the company as set forth in the
"Restricted Stock Equivalent Awards, November 15, 1999" attached as
Exhibit B, and (b) to stock options and performance share units as previously
granted.

3.4     Employee Benefits.
The Executive shall, to the extent eligible, be entitled to participate at a
level commensurate with his position in all employee benefit welfare and
retirement plans and programs, as well as equity plans, generally provided by
the Company to its senior executives in accordance with the terms thereof as in
effect from time to time; provided, however, that unless replaced with
Executive's written consent, Executive shall be entitled to the
"Special Pension Arrangement" attached as Exhibit C.

3.5     Vacation. The
Executive shall be entitled to paid vacation in accordance with the standard
written policies of the Company with regard to vacations of executives, but in
no event less than four (4) weeks per calendar year.

3.6     Perquisites. The
Company shall provide to the Executive, at the Company's cost, all
perquisites to which other senior executives of the Company are generally
entitled to receive and such other perquisites which are suitable to the
character of the Executive's position with the Company and adequate for
the performance of his duties hereunder. To the extent legally permissible, the
Company shall not treat such amounts as income to the Executive.

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

4.     Expenses

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

5.     Termination of Employment

The Executive's employment with the Company (including but not
limited to any subsidiary or affiliate or the Company) and the Employment Term
shall terminate upon the occurrence of the first of the following events:

        (a)     Automatically
        on the date of the Executive's death.

        (b)     Upon
        thirty (30) days written notice by the Company to the Executive of a
        termination due to Disability, provided such notice is delivered during
        the period of Disability. The term "Disability" shall mean,
        for purposes of this Agreement, the inability of the Executive, due to
        injury, illness, disease or bodily or mental infirmity, to engage in the
        performance of his material duties of employment with the Company as
        contemplated by Section 2 herein for a period of more than one hundred
        eighty (180) consecutive days or for a period that is reasonably
        expected to exist for a period of more than one hundred eighty (180)
        consecutive days, provided that interim returns to work of less than ten
        (10) consecutive business days in duration shall not be deemed to
        interfere with a determination of consecutive absent days if the reason
        for absence before and after the interim return are the same. The
        existence or non-existence of a Disability shall be determined
        by a physician agreed upon in good faith by the Executive (or his
        representatives) and the Company. It is expressly understood that the
        Disability of the Executive for a period of one hundred eighty (180)
        consecutive days or less shall not constitute a failure by him to
        perform his duties hereunder and shall not be deemed a breach or default
        and the Executive shall receive full compensation for any such period of
        Disability or for any other temporary illness or incapacity during the
        term of this Agreement.

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

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

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

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

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

Section 6.  Consequences of a Termination of Employment

6.1     Termination Due to Death
or Retirement. If the Employment Term ends on account of the
Executive's termination due to death pursuant to Section 5(a) above or
retirement pursuant to Section 5(c) above, the Executive (or the
Executive's surviving spouse, or other beneficiary as so designated by
the Executive during his lifetime, or to the Executive's estate, as
appropriate) shall be entitled, in lieu of any other payments or benefits, to
(i) payment promptly of any unpaid Base Salary, unpaid annual incentive
compensation (for the preceding fiscal year) and any accrued vacation, (ii)
reimbursement for any unreimbursed business expenses incurred prior to the date
of termination, and (iii) any amounts, benefits or fringes due under any equity,
benefit or fringe plan, grant or program in accordance with the terms of said
plan, grant or program but without duplication (collectively, the "Accrued
Obligations").

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

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

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

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

        (c)     For the
        Executive's accounts that have not or will not fully vest under
        the Deferred Income Plan, a cash payment outside of the Plan equal to
        the value of the amount that would have vested under the Plan.

        (d)     Payment
        of the premium for COBRA continuation health coverage for the Executive
        and the Executive's dependents until the earliest of (i)
        eighteen (18) months after such termination, (ii) until no longer
        eligible for COBRA continuation benefit coverage or (iii) the Executive
        commences other substantially full-time employment.

  

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

Section 7.  No Mitigation/No Offset/Release

  
        (a)     In the
        event of any termination of employment hereunder, the Executive shall be
        under no obligation to seek other employment and there shall be no
        offset against any amounts due the Executive under this Agreement on
        account of any remuneration attributable to any subsequent employment
        that the Executive may obtain. The amounts payable hereunder shall not
        be subject to setoff, counterclaim, recoupment, defense or other right
        which the Company may have against the Executive or others, except as
        specifically set forth in Section 9 hereof or upon obtaining by the
        Company of a final unappealable judgement against the Executive.

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

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

        (d)     The
        amounts and benefits provided under Sections 6 and 8 hereof are intended
        to be inclusive and not duplicative of the amounts and benefits due
        under the Company's employee benefit plans and programs to the
        extent they are duplicative.

  

8.     Change in Control

8.1     Employment Termination
in Connection with a Change in Control. In the event of a Qualifying
Termination (as defined below) during the period commencing one-hundred
eighty (180) days prior to the effective date of a Change in Control and
terminating on the second anniversary of the effective date of a Change in
Control (the "Change in Control Protection Period"), then in lieu of
the benefits provided to the Executive under Section 6.3 of this Agreement, the
Company shall pay the Executive the following amounts within (except as
otherwise provided) thirty (30) business days of the Qualifying Termination (or,
if later, the effective date of the Change in Control; in which case any amounts
or benefits previously paid, pursuant to Section 6 shall be setoff against those
under this Section 8) and provide the following benefits:

  
        (a)     Any
        Accrued Obligations.

        (b)     A
        lump-sum cash payment equal to three (3) times the highest rate
        of the Executive's Base Salary rate in effect at any time up to
        and including the date of the Executive's termination.

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

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

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

        (f)     To the
        extent eligible prior or after the Change in Control (or, if earlier,
        the Qualifying Termination), continued participation, (coordinated with
        (e) above to the extent duplicative), at no additional after tax cost to
        the Executive than the Executive would have as an employee, in all
        welfare plans, until three (3) years after the date of termination,
        provided, however, that in the event the Executive obtains other
        employment that offers substantially similar or improved benefits, as to
        any particular welfare plan, such continuation of coverage by the
        Company for such similar or improved benefit under such plan shall
        immediately cease. To the extent such coverage cannot be provided under
        the Company's welfare benefit plans without jeopardizing the tax
        status of such plans, for underwriting reasons or because of the tax
        impact on the Executive, the Company shall pay the Executive an amount
        such that the Executive can purchase such benefits separately at no
        greater after tax cost to him than he would have had if the benefits
        were provided to him as an employee.

        (g)     A
        lump-sum cash payment of the actuarial present value equivalent
        (as determined in accordance with the most favorable (to the Executive)
        overall actuarial assumptions and subsidies in any of the
        Company's tax-qualified or nonqualified type defined
        benefit pension plans in which the Executive then participates) of the
        accrued benefits accrued by the Executive as of the date of termination
        under the terms of any nonqualified defined benefit type retirement
        plan, including but not limited to, the Amended and Restated
        Supplemental Executive Retirement Plan for Textron Inc. Key Executives
        and the Supplemental Benefits Plan and assuming the benefit was fully
        vested without regard to any minimum age or service requirements. For
        this purpose, such benefits shall be calculated under the assumption
        that the Executive's employment continued following the date of
        termination for three (3) full years (i.e., three (3) additional years
        of age (including, but not limited to, for purposes of determining the
        actuarial present value), compensation and service credits shall be
        added).

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

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

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

        (k)     Outplacement
        services at a level commensurate with the Executive's position,
        including use of an executive office and secretary, for a period of one
        (1) year commencing on the date of termination but in no event extending
        beyond the date on which the Executive commences other full time
        employment.

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

  

For purposes of this Section 8, a Qualifying Termination shall mean any
termination of the Executive's employment (i) by the Company without
Cause, or (ii) by the Executive for Good Reason.

8.2     Definition of
"Change in Control." A Change in Control of the Company shall be
deemed to have occurred as of the first day any one or more of the following
conditions shall have been satisfied:

  
        (a)     Any
        "person" or "group" (within the meaning of Section
        13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended
        (the "Exchange Act")) other than the Company, any trustee or
        other fiduciary holding Company common stock under an employee benefit
        plan of the Company or a related company, or any corporation which is
        owned, directly or indirectly, by the stockholders of the Company in
        substantially the same proportions as their ownership of the
        Company's common stock, is or becomes the beneficial owner (as
        defined in Rule 13d-3 under the Exchange Act) of more than
        thirty percent (30%) of the then outstanding voting stock;

        (b)     During
        any period of two (2) consecutive years, individuals who at the
        beginning of such period constitute the Board and any new director whose
        election by the Board or nomination for election by the
        Company's stockholders was approved by a vote of at least
        two-thirds of the directors then still in office who either were
        directors at the beginning of the two year period or whose election or
        nomination for election was previously so approved, cease for any reason
        to constitute at least a majority of the Board;

        (c)     The
        consummation of a merger or consolidation of the Company with any other
        corporation, other than a merger or consolidation which would result in
        the voting securities of the Company outstanding immediately prior
        thereto continuing to represent (either by remaining outstanding or
        being converted into voting securities of the surviving entity) more
        than fifty percent (50%) of the combined voting securities of the
        Company or such surviving entity outstanding immediately after such
        merger or consolidation; or

        (d)     The
        approval of the stockholders of the Company of a plan of complete
        liquidation of the Company or an agreement for the sale or disposition
        by the Company of all or substantially all of its assets.

  

8.3     Excise Tax Equalization
Payment. In the event that the Executive becomes entitled to payments and/or
benefits which would constitute "parachute payments" within the
meaning of Section 280G(b)(2) of the Code, the provisions of Exhibit A will
apply.

9.     Noncompetition,
Confidentiality and Nondisparagement

9.1     Agreement Not to
Compete.

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

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

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

  

9.2     Definitions.

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

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

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

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

  

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

9.4     Confidential
Information.

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

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

  

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

9.6     Remedies.

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

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

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

  

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

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

        
        
        9.9     Nondisparagement.

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

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

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

  

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

10.     Liability Insurance

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

11.     Assignment

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

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

12.     Legal Remedies

12.1     Payment of Legal Fees.
The Company shall pay the Executive's reasonable legal fees and costs
associated with entering into this Agreement. To the fullest extent permitted by
law, the Company shall promptly pay upon submission of statements all legal and
other professional fees, costs of litigation, prejudgment interest, and other
expenses incurred in connection with any dispute arising hereunder; provided,
however, the Company shall be reimbursed by the Executive for (i) the fees and
expenses advanced in the event the Executive's claim is in a material
manner in bad faith or frivolous and the arbitrator or court, as applicable,
determines that the reimbursement of such fees and expenses is appropriate, or
(ii) to the extent that the arbitrator or court, as appropriate, determines that
such legal and other professional fees are clearly and demonstrably
unreasonable.

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

12.3     Notice. Any
notices, requests, demands, or other communications provided for by this
Agreement shall be sufficient if in writing and if delivered personally, sent by
telecopier, sent by an overnight service or sent by registered or certified
mail. Notice to the Executive not delivered personally (or by telecopy where the
Executive is known to be) shall be sent to the last address on the books of the
Company, and notice to the Company not delivered personally (or by telecopy to
the known personal telecopy of the person it is being sent to) shall be sent to
it at its principal office. All notices to the Company shall be delivered to the
Chief Executive Officer with a copy to the [senior legal officer]. Delivery
shall be deemed to occur on the earlier of actual receipt or tender and
rejection by the intended recipient.

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

13.     Miscellaneous

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

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

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

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

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

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

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

14.     Governing Law

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

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

 

		s\Kenneth C. Bohlen
	 	 Kenneth C. Bohlen
	 	 
	 	
      TEXTRON INC.

	 	 
	 	
      By: s\John D. Butler

	 	
            John D. Butler

	 	
            Executive Vice President Administration

	 	
            and
      Chief Human Resources Officer

 

Exhibit A

Parachute Gross Up

(a)     In the event that
the Executive shall become entitled to payments and/or benefits provided by this
Agreement or any other amounts in the "nature of compensation"
(whether pursuant to the terms of this Agreement or any other plan, arrangement
or agreement with the Company, any person whose actions result in a change of
ownership or effective control covered by Section 280G(b)(2) of the Code or any
person affiliated with the Company or such person) as a result of such change in
ownership or effective control (collectively the "Company Payments"),
and such Company Payments will be subject to the tax (the "Excise
Tax") imposed by Section 4999 of the Code (and any similar tax that may
hereafter be imposed by any taxing authority) the Company shall pay to the
Executive at the time specified in subsection (d) below an additional amount
(the "Gross-up Payment") such that the net amount retained by
the Executive, after deduction of any Excise Tax on the Company Payments and any
U.S. federal, state, and for local income or payroll tax upon the
Gross-up Payment provided for by this paragraph (a), but before
deduction for any U.S. federal, state, and local income or payroll tax on the
Company Payments, shall be equal to the Company Payments.

(b)     For purposes of
determining whether any of the Company Payments and Gross-up Payments
(collectively the "Total Payments") will be subject to the Excise Tax
and the amount of such Excise Tax, (x) the Total Payments shall be treated as
"parachute payments" within the meaning of Section 280G(b)(2) of the
Code, and all "parachute payments" in excess of the "base
amount" (as defined under Code Section 280G(b)(3) of the Code) shall be
treated as subject to the Excise Tax, unless and except to the extent that, in
the opinion of the Company's independent certified public accountants
appointed prior to any change in ownership (as defined under Code Section
280G(b)(2)) or tax counsel selected by such accountants (the
"Accountants") such Total Payments (in whole or in part) either do not
constitute "parachute payments," represent reasonable compensation for
services actually rendered within the meaning of Section 280G(b)(4) of the Code
in excess of the "base amount" or are otherwise not subject to the
Excise Tax, and (y) the value of any non-cash benefits or any
deferred payment or benefit shall be determined by the Accountants in accordance
with the principles of Section 280G of the Code.

(c)     For purposes of
determining the amount of the Gross-up Payment, the Executive shall be
deemed to pay U.S. federal income taxes at the highest marginal rate of U.S.
federal income taxation in the calendar year in which the Gross-up
Payment is to be made and state and local income taxes at the highest marginal
rate of taxation in the state and locality of the Executive's residence
for the calendar year in which the Company Payment is to be made, net of the
maximum reduction in U.S. federal income taxes which could be obtained from
deduction of such state and local taxes if paid in such year. In the event that
the Excise Tax is subsequently determined by the Accountants to be less than the
amount taken into account hereunder at the time the Gross-up Payment is
made, the Executive shall repay to the Company, at the time that the amount of
such reduction in Excise Tax is finally determined, the portion of the prior
Gross-up Payment attributable to such reduction (plus the portion of the
Gross-up Payment attributable to the Excise Tax and U.S. federal, state
and local income tax imposed on the portion of the Gross-up Payment
being repaid by the Executive if such repayment results in a reduction in Excise
Tax or a U.S. federal, state and local income tax deduction), plus interest on
the amount of such repayment at the rate provided in Section 1274(b)(2)(B) of
the Code. Notwithstanding the foregoing, in the event any portion of the
Gross-up Payment to be refunded to the Company has been paid to any U.S.
federal, state and local tax authority, repayment thereof (and related amounts)
shall not be required until actual refund or credit of such portion has been
made to the Executive, and interest payable to the Company shall not exceed the
interest received or credited to the Executive by such tax authority for the
period it held such portion. The Executive and the Company shall mutually agree
upon the course of action to be pursued (and the method of allocating the
expense thereof) if the Executive's claim for refund or credit is
denied.

In the event that the Excise Tax is later determined by the Accountant or the
Internal Revenue Service to exceed the amount taken into account hereunder at
the time the Gross-up Payment is made (including by reason of any
payment the existence or amount of which cannot be determined at the time of the
Gross-up Payment), the Company shall make an additional Gross-up
Payment in respect of such excess (plus any interest or penalties payable with
respect to such excess) at the time that the amount of such excess is finally
determined.

(d)     The
Gross-up Payment or portion thereof provided for in subsection (c) above
shall be paid not later than the thirtieth (30th) day following an event
occurring which subjects the Executive to the Excise Tax; provided, however,
that if the amount of such Gross-up Payment or portion thereof cannot be
finally determined on or before such day, the Company shall pay to the Executive
on such day an estimate, as determined in good faith by the Accountant, of the
minimum amount of such payments and shall pay the remainder of such payments
(together with interest at the rate provided in Section 1274(b)(2)(B) of the
Code), subject to further payments pursuant to subsection (c) hereof, as soon as
the amount thereof can reasonably be determined, but in no event later than the
ninetieth day after the occurrence of the event subjecting the Executive to the
Excise Tax. In the event that the amount of the estimated payments exceeds the
amount subsequently determined to have been due, such excess shall constitute a
loan by the Company to the Executive, payable on the fifth day after demand by
the Company (together with interest at the rate provided in Section
1274(b)(2)(B) of the Code).

(e)     In the event of
any controversy with the Internal Revenue Service (or other taxing authority)
with regard to the Excise Tax, the Executive shall permit the Company to control
issues related to the Excise Tax (at its expense), provided that such issues do
not potentially materially adversely affect the Executive, but the Executive
shall control any other issues. In the event the issues are interrelated, the
Executive and the Company shall in good faith cooperate so as not to jeopardize
resolution of either issue, but if the parties cannot agree the Executive shall
make the final determination with regard to the issues. In the event of any
conference with any taxing authority as to the Excise Tax or associated income
taxes, the Executive shall permit the representative of the Company to accompany
the Executive, and the Executive and the Executive's representative
shall cooperate with the Company and its representative.

(f)     The Company shall
be responsible for all charges of the Accountant.

(g)     The Company and
the Executive shall promptly deliver to each other copies of any written
communications, and summaries of any verbal communications, with any taxing
authority regarding the Excise Tax covered by this Exhibit A.

Exhibit B

 Kenneth C. Bohlen

Restricted Stock Equivalent Awards

November 15, 1999

 The Organization and Compensation Committee approved an award
of restricted stock equivalents to Kenneth C. Bohlen (the
"Executive"). The terms of the award are as follows:

	
    The Executive will receive the cash equivalent of shares of
  Textron common stock provided he remains employed by Textron Inc. in
  accordance with the following schedule:

	 	
      Equivalents Shares
	
      Vesting Date
	 
	 	
      2,000
	
      December 31, 2000
	 
	 	
      3,000
	
      December 31, 2002
	 
	 	
      5,000
	 	 

	
    Each cash payment will equal the number of vested shares
  times the average of the composite closing prices (as reported on the New York
  Stock Exchange consolidated tape) of Textron's common stock for the
  first ten trading days following the respective vesting date. Such award shall
  be paid to the Executive in a lump sum within 30 days following the vesting
  date or in annual installments as may be determined by the Textron CEO.

	
    Except as otherwise provided herein, the Executive shall
  not be entitled to receive such award if his employment with Textron Inc. ends
  for any reason prior to the respective vesting date, provided that if the
  Executive's employment ends prior to such date because of his
  involuntary termination by Textron without "cause" (Attachment A),
  "disability" (Attachment A) or death, the Executive or the
  Executive's estate will receive a "pro-rata portion"
  (Attachment A) of the award. Such payment shall equal the number of
  pro-rata shares vested times the average of the composite closing
  prices (as reported on the New York Stock Exchange consolidated tape) of
  Textron's common stock for the first ten trading days following the
  date of termination. A lump sum payment will be made within 30 days following
  termination.

	
    Notwithstanding the above, if the Executive's
  employment terminates at any time after a "change in control" of
  Textron, Textron shall, in lieu of the above award, award to the Executive (or
  to the Executive's estate in the event of his death prior to payment)
  upon such termination of employment, a cash amount equal to the number of
  unvested shares times the highest closing price per share of Textron's
  common stock (as reported on the New York Stock Exchange consolidated tape)
  during the 30 day period ending on the date of such change in control. Payment
  shall be made in a lump sum within 30 days following such termination.

	
    The number of restricted stock equivalents awarded to the
  Executive hereunder shall be proportionately adjusted for any increase or
  decrease in the number of issued shares of Textron's common stock
  resulting from a stock split, stock divided or any other increase or decrease
  in such shares effective without receipt of consideration by Textron.

   

	 	
      s\John D. Butler
	
      11/10/99

	 	
      John D. Butler
	
      Date

Attachment A

 Kenneth C. Bohlen

Restricted Stock Equivalent Awards

November 15,1999

 

"Cause"

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

"Disability"

  
  "Disability" shall mean, for purposes of this
  award, the inability of the Executive, due to injury, illness, disease or
  bodily or mental infirmity, to engage in the performance of his material
  duties of employment with the Company for a period of more than one hundred
  eighty (180) consecutive days or for a period that is reasonably expected to
  exist for a period of more than one hundred eighty (180) consecutive days,
  provided that interim returns to work of less than ten (10) consecutive
  business days in duration shall not be deemed to interfere with a
  determination of consecutive absent days if the reason for absence before and
  after the interim return are the same. The existence or non-existence
  of a Disability shall be determined by a physician agreed upon a good faith by
  the Executive (or his representatives) and Textron.

"Pro-rata Portion"

  
  "Pro-rata portion" shall mean the number
  of complete or partial months employed by Textron Inc. beginning November 15,
  1999 through the date of termination divided by 14 and 38 for the awards
  vesting on December 31, 2000 and 2002, respectively.

  For example, a termination of employment on February 13, 2001 due to
  disability would result in a number of shares earned determined as follows:

  
   

	 	
      2,000 shares vesting 12/31/00 - paid in full
	
      = 2,000.0 shares

	 	
      3,000 shares vesting 12/31/02
	 	 
	 	        
      3,000 shares x 16 (months) ÷ 38 (months)	
      = 1,263.2 shares

          3,263.2 shares

 Notes:

	
    16 equals the number of full or partial months from
  November 15, 1999 through February 13, 2001.

	
    38 equals the number of full or partial months beginning
  November 15, 1999 through December 31, 2002, the vesting date.

Exhibit C

Kenneth C. Bohlen

Special Pension Arrangement:

	2.5 years of credited service for each year employed for the first five
      years of employment provided he is employed for a minimum of five years.
	
    2.0 years of credited service for each year of service thereafter
      through age 65.

	
    Minimum Pension Guarantee: If this special pension arrangement results
      in a lesser pension benefit than would result from the following
      arrangement, the credited service schedule described above will be
      adjusted upon retirement to provide a pension benefit equal to the
      following arrangement. A review of the two pension calculations will be
      made at the completion of 5 years of actual service and every year
      thereafter. Any adjustments to the credited service arrangement that may
      be necessary will be done at the time of retirement.

  	Two years of credited service for each year employed for the first
          five years of employment provided he is employed for a minimum of five
          years.
	
      50% of capped long-term incentive compensation will be
          treated as pensionable compensation.

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