Document:

Form of Performance Award Notice

 THE BOEING COMPANY PERFORMANCE AWARD NOTICE 
  
 To: Boeing Executive 
  
 BEMS ID: [XXXXXXX] 
  
 Performance Awards are units that will be paid in either cash or Boeing stock, subject to the Compensation Committee’s (the “Committee”) discretion, if earned at the end of a three-year performance period. Your Performance
Awards are awarded pursuant to The Boeing Company’s 2003 Incentive Stock Plan (the “Plan”), including any amendments approved by shareholders at the May 1, 2006 shareholder’s meeting, and the award is subject to the terms
and conditions of the Plan. If there is any inconsistency between the terms of this notice and the terms of the Plan, the Plan’s terms shall control. A copy of the Plan Summary has been included with this notice. 
  
 Overview of Your 2006 Performance Award Grant 
  
 Grant Date: February 27, 2006 
  
 Number of Units Granted: [X,XXX] 
  
 Performance Period: January 1, 2006 – December 31, 2008

  

	1.	 	Target Value of Performance Awards. The Performance Award target value (or “initial value”) will be based on a multiple of 12/31 salary, with the multiples determined by
executive grade. The target value will be expressed as a number of units (rounded to the nearest unit). Each unit will have an initial value equal to $100. 

  

	2.	 	Performance Measure. For the 2006-2008 Performance Period, the performance measure will be three-year cumulative Economic Profit. The Compensation Committee retains discretion in
calculating actual performance to exclude the impact of extraordinary and/or non-recurring items deemed not reflective of the Company’s core operating performance. Such non-recurring items may include, but are not limited to, exogenous events,
acquisitions, divestitures, changes in accounting principles, or “extraordinary items” determined under generally accepted accounting principles (GAAP). 

  

	3.	 	Final Award Determination. Final awards will be determined following the end of the Performance Period. The amount payable may be anywhere from $0 to $200 per unit, depending on the
Company’s performance against plan for the period ending on December 31, 2008. In order for any payments to be made, a threshold level of performance must be achieved. As a result, the final award will range from 0% to a maximum of 200% of
the Performance Award target value, as outlined below. There will be straight-line interpolation to determine payouts between threshold and target, and target and maximum. 

  

							
	 Level of
 Performance
	  	Final Performance
Award Unit Value	  	EP Achievement 
(% of Plan)	  	Payout Factor 
(% of Target Award)
	 Maximum
	  	$200	  	125%	  	200%
				
	 Target
	  	$100	  	Plan	  	100%
				
	 Threshold
	  	$25	  	75%	  	25%
	 Below Threshold
	  	$0	  	<75%	  	0%

  

	4.	 	 Rights to Continued Employment. Subject to the terms and conditions outlined under section 5, Performance Awards are awarded on the condition that you remain
employed by the Company from the date of grant through the entire performance period. You will not have any right to any 

	 	 
award unless and until all terms, conditions, and provisions of the Performance Award program that affect you have been complied with as specified herein. Your
Performance Awards, however, shall not impose upon the Company any obligation to retain you in its employ for any given period or upon any specific terms of employment. 

  

	5.	 	Termination due to Retirement, Layoff, Disability, or Death. In the event your employment is terminated by reason of retirement, layoff, disability, or death, you shall continue to be
eligible to participate in the performance period; provided you were on the active executive payroll on the grant date. Your Performance Award payout will be prorated based on the number of full calendar quarters spent on the active executive
payroll during the three-year performance period (you must be on the active payroll on the last day of the calendar quarter to receive full credit for that quarter). Payment for such awards will be made at the same time as payment would have been
made had you not had a termination of employment. 

  

	6.	 	Other Terminations. In the event your employment is terminated for reasons other than those described in section 5, all Performance Awards granted hereunder shall immediately be
forfeited by you and canceled. This includes termination for cause and resignation. 

  

	7.	 	Leave of Absence. Unless otherwise required by law, in the event you have an authorized leave of absence at any time during the performance period which absence extends beyond three
full calendar months (including any absence that began before the grant date), your Performance Award payout will be prorated based on the number of full and partial months spent on the active payroll. 

  

	8.	 	Form and Timing of Payment of Performance Awards. Any payment of the Performance Awards shall be made in either cash or shares of Boeing stock, at the Compensation Committee’s
discretion. The Performance Award payment shall be made within a reasonable time following the end of the performance period. For certain eligible participants, amounts to be paid in connection with Performance Awards may be deferred in accordance
with the Company’s deferred compensation plan then in place. 

  

	  	 	The Company will deduct from your Performance Award distribution any withholding or other taxes required by law and may deduct any amounts due from you to the Company or to any Company
subsidiary. In the event of a stock distribution, shares will be in a number equal to the whole number of shares that could be purchased with the total Performance Award cash payout, based on the average of the high and low per share trading prices
for the common stock of the Company as reported for the “New York Stock Exchange – Composite Transactions” on the date of distribution, after reduction to pay the applicable withholding amounts. Fractional share values will be applied
to Federal tax withholding. 

  

	9.	 	Beneficiaries. A participant may designate one or more beneficiaries to receive Performance Award distributions upon the death of the participant. If no beneficiary has been
designated, all such amounts shall be paid to the personal representative of the participant. The form of beneficiary designation shall be determined by the Committee. 

  

	10.	 	Transferability. These Performance Awards are not transferable by you, whether voluntarily or involuntarily, by operation of law or otherwise, except as provided in the Plan. If any
assignment, pledge, transfer, or other disposition, voluntary or involuntary, of these Performance Awards shall be made, or if any attachment, execution, garnishment, or lien shall be issued against or placed upon the Performance Awards, then your
right to the Performance Awards shall immediately cease and terminate and you shall promptly forfeit to the Company all Performance Awards awarded under this notice. 

	11.	 	Successors. All obligations of the Company under the Performance Award program shall be binding on any successor to the Company, whether the existence of such successor is the result
of a direct or indirect purchase, merger, or consolidation, or otherwise, of all or substantially all the business and/or assets of the Company. 

  

	12.	 	Amendment, Modification and Termination. The Board of Directors (or its delegate) has the authority to amend, modify, or terminate the Performance Award program. No termination,
amendment, or modification may adversely affect in any material way any Performance Award previously granted without the written consent of the participant involved.Form of Non-Qualified Stock Option Grant Notice

 THE BOEING COMPANY 
  

NON-QUALIFIED STOCK OPTION GRANT NOTICE OF TERMS 
  
 To: [NAME] 
  
 BEMSID: [BEMS_ID] 
  
 As part of the Executive Compensation Program you
have been granted the option to purchase shares of the Company’s common stock as follows: 
  
 Number of Options: [OPTIONS_GRANTED] shares 
  
 Exercise
Price: $74.445 
  
 The exercise price represents the fair market value of Boeing
stock on the date of grant. For purposes of this grant, fair market value is defined as the average of the high and low per share trading prices of the Company’s common stock on the New York Stock Exchange during regular session trading for a
single trading day. 
  
 The grant of the option is made pursuant to The Boeing Company 2003
Incentive Stock Plan for Employees (the “Plan”). A copy of the Plan Summary is attached and incorporated into this notice by reference. The terms and conditions of the stock option are as set forth in the Plan and in this notice. Exercise
of all or part of this stock option constitutes acceptance of all the terms and conditions of the option grant. 
  
 For purposes of this notice the term “Company” means The Boeing Company and/or subsidiary of The Boeing Company. The term “retirement” means retirement under
the conditions that satisfy the terms of the Company retirement plan or the applicable subsidiary plan. 
  
 Type of Option: These options are granted as Non-Qualified Stock Options and are subject to Section 83 of the U.S. Internal Revenue Code. Non-qualified stock options are considered ordinary income when
exercised and are taxed accordingly. The amount of ordinary income is the difference between the exercise price (or grant price) and the price on the date the options are exercised. 
  
 Date of Grant: The date of the stock option grant is February 27, 2006. 
  
 Vesting and Exercisability: 
  
 To establish a vested right to any portion of the option, you must remain employed by the Company for at least one year from the date of grant. If you
remain employed by the Company for one year after the date of the grant, and the stock option has not otherwise expired, the stock option shall become vested and exercisable according to the following schedule: 
  

			
	Date on which Stock Option vests 
and becomes exercisable	 	Portion of Grant that vests 
and becomes exercisable
	 1 year after the date of grant
	 	34%
	 2 years after the date of grant
	 	33%
	 3 years after the date of grant
	 	33%

  
 Termination: 
  
 If your employment terminates for any reason prior to the one-year anniversary of the date of
grant, the stock option and all rights to exercise the option will terminate completely upon your termination of employment. 

 After the one-year anniversary of the date of grant, if your employment with the Company terminates for any reason prior to the
date the option becomes 100% vested and exercisable in accordance with the schedule under “Vesting and Exercisability”, the non-vested portion of the stock option will not vest and the non-vested portion of the option and all rights to the
non-vested portion will terminate completely upon your termination of employment. (See “When the Vested Option Expires” below for important rules on when vested options expire.) 
  
 When the Vested Option Expires: 
  
 As long as you remain employed by the Company, the stock option will expire after 10 years from the date of grant (or February, 27, 2016). 
  
 If your employment with the Company terminates due to death, disability, retirement or layoff,
the vested portion of the option will expire at the earlier of 5 years from your termination or February 27, 2016. 
  
 If your employment with the Company terminates due to voluntary resignation, the vested portion of the option will expire at the earlier of 90 days from your
termination or February 27, 2016. 
  
 If your employment with the Company terminates
for reasons other than death, disability, retirement, layoff or voluntary resignation (such as for cause), your vested options will expire upon your termination. 
  
 It is your responsibility to be aware of an option’s expiration date so that you may consider whether or not to exercise your option
before it expires. 
  
 Exercise: During your lifetime only you, your guardian
or your legal representative may exercise the stock option. The Plan permits exercise of the stock option by the personal representative of your estate or the beneficiary thereof following your death. 
  
 Transfer: The stock option is not transferable except by will or applicable laws
of descent and distribution. 
  
 Additional Information: 
  
 Additional information about Boeing stock options, including your current stock option status report,
will be provided to you annually. Further questions regarding stock options may be addressed to the Stock Option Administration Office by email at stockoptions@boeing.com or answered by visiting the internal Boeing website
http://stockoptions.web.boeing.com.

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