Document:

Short-term Incentive Plan

    

      Exhibit
        10.1

       

      TEXTRON
        INC. SHORT-TERM INCENTIVE PLAN

       

      SECTION
        1. ESTABLISHMENT AND PURPOSE

       

      1.1 Establishment
        of the Plan. Textron
        Inc., a Delaware company (the “Company”),
        hereby establishes a short-term incentive compensation plan to be known as
        the
        Textron Inc. Short-Term Incentive Plan (the “Plan”).
        The
        Plan permits the awarding of cash bonuses to Employees (as defined below),
        based
        on the achievement of performance goals that are pre-established by the Board
        of
        Directors of the Company (the “Board”)
        or by
        the Committee (as defined below).

       

      Upon
        approval by the Board, subject to approval by the shareholders of the Company
        at
        the 2007 annual general meeting of shareholders, the Plan shall become effective
        as of January 1, 2007 and continue until December 31, 2016, unless terminated
        earlier as set forth in Section 10.

       

      1.2 Purpose. The
        purposes of the Plan are to (i) provide greater motivation for certain employees
        of the Company and its Subsidiaries (as defined below) to attain and maintain
        the highest standards of performance, (ii) attract and retain employees of
        outstanding competence, and (iii) direct the energies of employees towards
        the
        achievement of specific business goals established for the Company and its
        Subsidiaries.

       

      The
        purposes of the Plan shall be carried out by the payment to Participants
        (as
        defined below) of short-term incentive cash awards, subject to the terms
        and
        conditions of the Plan. All compensation payable under this Plan to Participants
        who are Executive Officers (as defined below) is intended to be deductible
        by
        the Company under Section 162(m) of the Code (as defined below).

       

      SECTION
        2. DEFINITIONS

       

      As
        used
        in the Plan, the following terms shall have the meanings set forth below
        (unless
        otherwise expressly provided).

       

      “Award
        Opportunity”
means
        the various levels of incentive awards which a Participant may earn under
        the
        Plan, as established by the Committee pursuant to Section 5.1.

       

      “Base
        Salary”
shall
        mean the regular annualized base salary (determined as of January 1 of each
        Plan
        Year with respect to Executive Officers) earned by a Participant during a
        Plan
        Year prior to any salary reduction contributions made to any deferred
        compensation plans sponsored or maintained by the Company or by any
        Subsidiary;
        provided, however,
        that
        Base Salary shall not include awards under this Plan, any bonuses, equity
        awards, the matching contribution under any plan of the Company or any of
        its
        Subsidiaries (as applicable) providing such, overtime, relocation allowances,
        severance payments or any other special awards as determined by the
        Committee.

       

      “Beneficial
        Owner”
shall
        have the meaning ascribed to such term in Rule 13d-3 of the General Rules
        and
        Regulations under the Exchange Act.

       

      “Board”
has
        the
        meaning set forth in Section 1.1.

       

      “Code”
means
        the Internal Revenue Code of 1986, as amended, and the regulations promulgated
        thereunder.

       

      “Committee”
means
        the Organization and Compensation Committee of the Board, provided that the
        Committee shall consist of three or more individuals, appointed by the Board
        to
        administer the Plan, pursuant to Section 3, who are “outside directors” to the
        extent required by and within the meaning of Section 162(m) of the Code,
        as
        amended from time to time.

      
         

      

      “Company”
has
        the
        meaning set forth in Section 1.1.

       

      “Effective
        Date”
means
        the date the Plan becomes effective, as set forth in Section 1.1
        herein.

       

      “Employee”
means
        an employee of the Company or a Subsidiary.

       

      “Exchange
        Act”
means
        the Securities Exchange Act of 1934, as amended from time to time.

       

      “Executive
        Officer”
means
        a
“covered employee” within the meaning of Section 162(m)(3) of the Code or any
        other executive designated by the Committee for purposes of exempting
        compensation payable under the Plan from the deduction limitations of Section
        162(m) of the Code.

       

      “Final
        Award”
means
        the actual award earned during a Plan Year by a Participant, as determined
        by
        the Committee at the end of such Plan Year.

       

      “Participant”
means
        an Employee who is participating in the Plan pursuant to Section 4.

       

      “Plan”
means
        this Textron Inc. Short-Term Incentive Plan.

       

      “Plan
        Year”
means
        the calendar year, commencing on January 1st
        and
        ending on December 31st.
        

       

      “Subsidiary”
means
        any company or corporation in which the Company beneficially owns, directly
        or
        indirectly, 50% or more of the securities entitled to vote in the election
        of
        the directors of the corporation.

       

      “Target
        Incentive Award”
means
        the award to be paid to a Participant when performance measures are achieved,
        as
        established by the Committee. For an individual, the Target Incentive Award
        is
        typically expressed as a percentage of the individual’s Base Salary (as defined
        above.)

       

      SECTION
        3. ADMINISTRATION 

       

      The
        Plan
        shall be administered by the Committee. Subject to the limitations set forth
        in
        the Plan, the Committee shall: (i) select from the Employees of the Company
        and its Subsidiaries, those who shall participate in the Plan, (ii) establish
        Award Opportunities in such forms and amounts as it shall determine, (iii)
        impose such limitations, restrictions, and conditions upon such Award
        Opportunities as it shall deem appropriate, (iv) interpret the Plan and adopt,
        amend, and rescind administrative guidelines and other rules and regulations
        relating to the Plan, (v) make any and all factual and legal determinations
        in
        connection with the administration and interpretation of the Plan, (vi) correct
        any defect or omission or reconcile any inconsistency in this Plan or in
        any
        Award Opportunity granted hereunder, and (vii) make all other necessary
        determinations and take all other actions necessary or advisable for the
        implementation and administration of the Plan. The Committee's determinations
        on
        matters within its authority shall be conclusive and binding upon all
        parties.

       

      Except
        with respect to the matters that under Section 162(m) of the Code and Treasury
        Regulation Section 1.162-27(e) are required to be determined or established
        by
        the Committee to qualify awards to Executive Officers under the Plan as
        qualified performance-based compensation, the Committee shall have the power
        to
        delegate to any officer or employee of the Company the authority to administer
        and interpret the procedural aspects of the Plan, subject to the Plan's terms,
        including adopting and enforcing rules to decide procedural and administrative
        issues. To the extent of any such delegation, references to the “Committee”
herein shall be deemed to refer to the relevant delegate.  

       

      Subject
        to applicable laws, rules and regulations: (i) no member of the Committee
        (or
        its delegates) shall be liable for any good faith action or determination
        made
        in connection with the operation, administration or interpretation of the
        Plan
        and (ii) the members of the Committee (and its delegates) shall be entitled
        to indemnification and reimbursement in the manner provided in the Company’s
        Certificate of Incorporation as it may be amended from time to time. In the
        performance of its responsibilities with respect to the Plan, the Committee
        shall be entitled to rely upon information and/or advice
        furnished by the Company’s officers or employees, the Company’s accountants, the
        Company’s counsel and any other party the Committee deems necessary, and no
        member of the Committee shall be liable for any action taken or not taken
        in
        reliance upon any such information and/or advice

       

      SECTION
        4. ELIGIBILITY AND PARTICIPATION

       

      4.1 Eligibility. Each
        Employee who is included in the Plan by the Committee, shall be eligible
        to
        participate in the Plan for such Plan Year and all subsequent Plan Years,
        subject to the limitations of Section 7 herein. 

       

      4.2 Participation. Participation
        in the Plan shall be determined annually by the Committee based upon the
        criteria set forth in the Plan. Participation in the Plan during the applicable
        Plan Year shall be limited to those Employees (“Participants”)
        who are
        selected by the Committee. Employees who are eligible to participate in the
        Plan
        shall be notified of the performance goals and related Award Opportunities
        for
        the relevant Plan Year.

       

      4.3 Right
        to Reduce or End Eligibility. The
        Committee may elect to reduce the Award Opportunity (as described in Section
        5.2
        herein) or end it altogether for any single Participant or group of Participants
        at any time.

       

      SECTION
        5. AWARD DETERMINATION

       

      5.1 Performance
        Goals. Prior
        to
        the beginning of each Plan Year, or as soon as practicable thereafter, the
        Committee shall approve or establish in writing the performance goals for
        that
        Plan Year. Performance goals may include financial and/or non-financial goals.
        

       

      Performance
        goals and their relative weight may vary by job. After the performance goals
        are
        established, the Committee will align the achievement of the performance
        goals
        with the Award Opportunities (as described in Section 5.2 herein), such that
        the
        level of achievement at the end of the Plan Year as compared to the
        pre-established performance goals set at the beginning of the Plan Year will
        determine the amount of the Final Award. The Committee also shall have the
        authority to exercise subjective discretion in the determination of Final
        Awards
        to reduce or increase a calculated award based on the Committee's qualitative
        assessment of performance.

       

      The
        performance period with respect to which awards may be payable under the
        Plan
        shall generally be the Plan Year; provided,
        however,
        that the
        Committee shall have the authority and discretion to designate different
        performance periods under the Plan, in which case references to Plan Year
        shall
        be deemed to refer to such other performance period.

       

      5.2 Award
        Opportunities. Prior
        to
        the beginning of each Plan Year, or as soon as practicable thereafter, the
        Committee shall establish an Award Opportunity for each Participant. In the
        event a Participant changes job levels during a Plan Year, the Participant's
        Award Opportunity may be adjusted to reflect the amount of time at each job
        level during the Plan Year. In addition, if a Participant changes jobs during
        the year, the Participant’s goals may change as of the effective date of the job
        change to reflect the different performance goals. Each job’s performance goals
        will continue to be assessed on a full-year basis to determine payouts, with
        the
        proportion of time in each job applied to determine the final payout amount.
        

       

      5.3 Adjustment
        of Performance Goals. The
        Committee shall have the right to adjust the performance goals and the Award
        Opportunities (either up or down) during a Plan Year if it determines that
        the
        occurrence of external changes or other unanticipated business conditions
        have
        materially affected the fairness of the goals and have unduly influenced
        the
        Company's ability to meet them, including without limitation, events such
        as
        material acquisitions, changes in the capital structure of the Company, and
        extraordinary accounting changes. In addition, performance goals and Award
        Opportunities will be calculated
        without regard to any changes in accounting standards that may be required
        by
        the Financial Accounting Standards Board after such performance goals or
        Award
        Opportunities are established. Further, in the event of a Plan Year of less
        than
        twelve months, the Committee shall have the right to adjust the performance
        goals and the Award Opportunities accordingly, at its sole
        discretion.

       

      5.4 Final
        Award Determinations. At
        the
        end of each Plan Year, Final Awards shall be computed for each Participant
        as
        determined by the Committee. Each Final Award shall be based upon the (i)
        Participant’s Target Incentive Award percentage, multiplied by his Base Salary
        and (ii) percent satisfaction of performance goals (as set by the Committee).
        Final Award amounts may vary above or below the Target Incentive Award, based
        on
        the level of achievement of the pre-established performance goals.

       

      5.5 
        Limitations. 
        The
        amount payable to a Participant for any Plan Year shall not exceed U.S.
        $4,000,000.

       

      SECTION
        6. PAYMENT OF FINAL AWARDS

       

      6.1 Form
        and Timing of Payment. As
        soon
        as practicable after the end of each Plan Year, the Committee shall determine
        the extent to which the Company and each Participant has achieved the
        performance goals for such Plan Year, including the specific target objective(s)
        and the satisfaction of any other material terms of the awards, and the
        Committee shall approve the amount of each Participant's Final Award for
        the
        relevant period. Generally, Final Award payments shall be payable to the
        Participant, or to his estate in the case of death, in a single lump-sum
        cash
        payment, as soon as practicable after the end of each Plan Year, after the
        Committee, in its sole discretion, has certified in writing the extent to
        which
        the specified performance goals were achieved, but in no event later than
        March
        15th
        of such
        Plan Year. 

       

      6.2 Payment
        of Partial Awards. In
        the
        event a Participant no longer meets the eligibility criteria as set forth
        in the
        Plan during the course of a particular Plan Year, the Committee may, in its
        sole
        discretion, compute and pay a partial award for the portion of the Plan Year
        that an Employee was a Participant. Unless such payment is specifically approved
        by the Committee, no such payments will be made, and continued service through
        the end of the Plan Year shall be required to earn an award. Unless the
        Committee determines otherwise, a Participant who has earned a Final Award
        with
        respect to a completed Plan Year who subsequently terminates employment or
        otherwise ceases eligibility before the date that the Final Award is to be
        paid
        shall be paid such Final Award on the scheduled date.

       

      6.3 Unsecured
        Interest. No
        Participant or any other party claiming an interest in amounts earned under
        the
        Plan shall have any interest whatsoever in any specific asset of the Company
        or
        of any Subsidiary. To the extent that any party acquires a right to receive
        payments under the Plan, such right shall be equivalent to that of an unsecured
        general creditor of the Company. 

       

      SECTION
        7. TERMINATION OF ELIGIBILITY OR EMPLOYMENT

       

      7.1 Termination
        of Eligibility. In
        the
        event a Participant ceases to be eligible to participate in the Plan during
        a
        Plan Year but remains employed by the Company or a Subsidiary thorough the
        end
        of such Plan Year, the Final Award determined in accordance with
        Section 5.4 herein shall be reduced to reflect participation prior to such
        cessation of eligibility only. The reduced award shall be based upon the
        proportionate amount of Base Salary earned during the Plan Year prior to
        cessation of eligibility.

       

      The
        Final
        Award thus determined shall be payable as soon as practicable following
        certification of the relevant performance goals by the Committee for the
        Plan
        Year in which such termination occurs, or sooner (except with respect to
        Executive Officers), as determined by the Committee in its sole
        discretion.

      7.2 Termination
        of Employment. In
        the
        event a Participant's employment is terminated for any reason, all of the
        Participant's rights to a Final Award for the Plan Year then in progress
        shall
        be forfeited. However, the Committee, in its sole discretion, may pay a partial
        award for the portion of that Plan Year that the Participant was employed
        by the
        Company, computed as determined by the Committee.

       

      SECTION
        8. RIGHTS OF PARTICIPANTS

       

      8.1 Employment. Nothing
        in the Plan shall interfere with or limit in any way the right of the Company
        to
        terminate any Participant's employment at any time, nor confer upon any
        Participant any right to continue in the employ of the Company. 

       

      8.2 Nontransferability. No
        right
        or interest of any Participant in the Plan shall be assignable or transferable,
        or subject to any lien, directly, by operation of law, or otherwise, including,
        but not limited to, execution, levy, garnishment, attachment, pledge, and
        bankruptcy.

       

      SECTION
        9. EXECUTIVE OFFICERS 

       

      9.1 Applicability. The
        provisions of this Section 9 shall apply only to Executive Officers and are
        intended to apply additional terms, conditions and limitations required for
        amounts payable hereunder to Executive Officers to qualify as performance-based
        compensation exempt from Section 162(m) of the Code. In the event of any
        inconsistencies between this Section 9 and the other Plan provisions, the
        provisions of this Section 9 shall control with respect to Executive
        Officers.

       

      9.2 Performance
        Goals and Award Opportunities. With
        respect to Executive Officers, objective written performance goals and Award
        Opportunities for a Plan Year shall be established by the Committee (and
        the
        Committee only, with no delegation) (i) while the attainment of the performance
        goals for the Plan Year is substantially uncertain and (ii) no more than
        90 days
        after the commencement of the Plan Year (or a number of days equal to 25%
        of the
        Plan Year, if less). The performance goals applicable to the Executive Officers
        shall be limited to the performance goals listed below. The Committee may
        select
        one or more of the performance goals specified for each Plan Year which need
        not
        be the same for each Executive Officer in a given year. Performance goals
        will
        be comprised of specified levels of one or more of the following performance
        criteria as the Committee deems appropriate: operating cash flows from
        continuing operations, operating working capital, free cash flow, revenues,
        segment profit, corporate expenses, special charges, gain (loss) on sale
        of
        business, income from continuing operations, net income, EBITDA—earnings before
        interest, taxes, depreciation and amortization, EBIT—earnings before interest
        and taxes, EPS—earnings per share, as adjusted EPS, ROA—return on assets,
        ROS—return on sales, ROE—return on equity, ROIC—return on invested capital,
        WACC—weighted average cost of capital, total shareholder return, stock price
        appreciation, growth in managed assets, organic growth, cost performance,
        net
        cost reductions, Inventory turns, selling and administrative expense as a
        percentage of sales, days sales outstanding, ratio of income to fixed charges,
        segment profit margins, total profit margin, EVA—economic value added, intrinsic
        value and effective income tax rate. In each case, performance goals shall
        be
        determined in accordance with generally accepted accounting principles (subject
        to modifications approved by the Committee) and shall be consistently applied
        on
        a business unit, divisional, subsidiary or consolidated basis or any combination
        thereof. Performance goals may be described in terms of objectives that are
        related to the individual Participant or objectives that are Company-wide
        or
        related to a Subsidiary, division, department, region, function or business
        unit
        and may be measured on an absolute or cumulative basis or on the basis of
        percentage of improvement over time, and may be measured in terms of Company
        performance (or performance of the applicable Subsidiary, division, department,
        region, function or business unit) or measured relative to selected peer
        companies or a market index. In addition, for awards not intended to qualify
        as
“performance-based compensation” under Section 162(m) of the Code, the
        Committee may establish performance goals based on other criteria as it deems
        appropriate. Notwithstanding the above, for any award or portion of an award
        designated to be “performance-based
        compensation” under Section 162(m) of the Code, the Committee does not
        retain any right to increase any amount otherwise determined under the
        provisions of the Plan.

       

      9.3 Certification
        of Achievement of Performance Goals. At
        the
        end of the Plan Year and prior to payment, the Committee shall certify in
        writing the extent to which the performance goals and any other material
        terms
        were satisfied. Final Awards shall be computed for each Executive Officer
        based
        on (i) the Participant's Target Incentive Award percentage, multiplied by
        his
        Base Salary and (ii) percent satisfaction of performance goals (as certified
        by
        the Committee). Final Award amounts may vary above or below the Target Incentive
        Award based on the level of achievement of the pre-established performance
        goals.

       

      9.4 Non-adjustment
        of Performance Goals. Once
        established, performance goals shall not be changed during the Plan Year
        except
        as permitted consistent with the qualified performance-based compensation
        exception under Section 162(m) of the Code. 

       

      9.5 Discretionary
        Adjustments. The
        Committee retains the discretion to eliminate or decrease the amount of the
        Final Award otherwise payable to a Participant. For any Final Award or portion
        of a Final Award designated to be “performance-based compensation” under Section
        162(m) of the Code, the Committee shall not retain any right to increase
        any
        amount otherwise determined under the provisions of the Plan.

       

      SECTION
        10. AMENDMENT AND MODIFICATION

       

      The
        Committee, in its sole discretion, without notice, at any time and from time
        to
        time, may modify or amend, in whole or in part, any or all of the provisions
        of
        the Plan, or suspend or terminate it entirely; provided,
        however,
        that no
        such modification, amendment, suspension, or termination may, without the
        consent of a Participant (or his or her beneficiary in the case of the death
        of
        the Participant), reduce the right of a Participant (or his or her beneficiary,
        as the case may be) to a payment or distribution hereunder which he or she
        has
        already earned and is otherwise entitled, except where such modification,
        amendment, suspension or termination is necessary to comply with applicable
        law,
        including without limitation, any modifications or amendments made pursuant
        to
        Section 409A of the Code and any regulations, rulings and other regulatory
        guidance issued thereunder. Notwithstanding the foregoing, the Committee
        shall
        not amend Plan provisions to the extent that such amendment would cause an
        outstanding award to fail to meet performance-based compensation exception
        of
        Section 162(m) of the Code.

       

      SECTION
        11. MISCELLANEOUS

       

      11.1 Jurisdiction,
        Venue and Governing Law. Except
        as to matters of federal law, the Plan, and all agreements hereunder, shall
        be
        governed by and construed in accordance with the laws of Rhode Island. Any
        dispute, controversy or claim arising out of or relating to the Plan or any
        award under the Plan shall be brought only in a court of competent jurisdiction
        in the State of Rhode Island, and no other court, agency or tribunal shall
        have
        jurisdiction to resolve any such dispute, controversy or claim.

       

      11.2 Withholding
        Taxes. The
        Company and its Subsidiaries shall have the right to deduct from all payments
        under the Plan any federal, state, local and/or foreign income, employment
        or
        other applicable payroll taxes required by law to be withheld with respect
        to
        such payments. 

       

      11.3 Gender
        and Number. Except
        where otherwise indicated by the context, any masculine term used herein
        also
        shall include the feminine, the plural shall include the singular, and the
        singular shall include the plural. 

       

      11.4 Severability. In
        the
        event any provision of the Plan shall be held illegal or invalid for any
        reason,
        the illegality or invalidity shall not affect the remaining parts of the
        Plan,
        and the Plan shall be construed and enforced as if the illegal or invalid
        provision had not been included.

       

      11.5  
        Costs of the Plan.  All
        costs
        of implementing and administering the Plan shall be borne by the
        Company.

       

      11.6 Successors. All
        obligations of the Company and its Subsidiaries under the Plan shall be binding
        upon and inure to the benefit of any successor to the Company, whether the
        existence of such successor is the result of a direct or indirect purchase,
        merger, amalgamation, consolidation, or otherwise, of all or substantially
        all
        of the business and/or assets of the Company.2007 Long-Term Incentive Plan

    Exhibit
      10.2

     

    TEXTRON
      INC. 

    2007
      LONG-TERM INCENTIVE PLAN

     

    1.
      Purposes of the Plan

     

    The
      purposes of the Plan are to (a) promote the long-term success of the
      Company and its Subsidiaries and to increase stockholder value by providing
      Eligible Individuals with incentives to contribute to the long-term growth
      and
      profitability of the Company and (b) assist the Company in attracting,
      retaining and motivating highly qualified individuals who are in a position
      to
      make significant contributions to the Company and its Subsidiaries.

     

    Upon
      the
      Effective Date, no further Awards will be granted under the Prior
      Plan.

     

    2.
      Definitions and Rules of Construction

     

    (a) 
      Definitions. 
      For
      purposes of the Plan, the following capitalized words shall have the meanings
      set forth below:

     

    “Affiliate”
means
      any Parent or Subsidiary and any person that directly or indirectly through
      one
      or more intermediaries, controls, is controlled by, or is under common control
      with, the Company.

     

    “Award”
means
      an Option, Restricted Stock, Restricted Stock Unit, Stock Appreciation Right,
      Performance Stock, Performance Share Unit or Other Award granted by the
      Committee pursuant to the terms of the Plan.

     

    “Award
      Document”
means
      an agreement, certificate or other type or form of document or documentation
      approved by the Committee that sets forth the terms and conditions of an Award.
      An Award Document may be in written, electronic or other media, may be limited
      to a notation on the books and records of the Company and, unless the Committee
      requires otherwise, need not be signed by a representative of the Company or
      a
      Participant.

     

    “Beneficial
      Owner”
and
      “Beneficially
      Owned”
have
      the meaning set forth in Rule 13d-3 under the Exchange Act.

     

    “Board”
means
      the Board of Directors of the Company, as constituted from time to
      time.

     

    “Change
      of Control”
      means:

     

    (i) Any
      “person” or “group” (within the meaning of Sections 13 (d) and 14
      (d)(2) of the Exchange Act other than the Company, any “person” who on the
      Effective Date was a director or officer of the Company, any trustee or other
      fiduciary holding Common Stock under an employee benefit plan of the Company,
      or
      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 Common Stock, is or becomes the “beneficial owner” (as defined in
      Rule 13d-3 under the Act) of more than thirty percent (30%) of the then
      outstanding voting stock of the Company, or

     

    (ii) during
      any period of two consecutive years, individuals who at the beginning of such
      period constitute the Board and any new director whose election by the Board
      or
      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 was previously so approved) cease for any reason to constitute a
      majority of the Board, or

    
    (iii) the
      shareholders of the Company approve 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 by being converted
      into voting securities of the surviving entity) more than fifty percent (50%)
      of
      the combined voting power of the voting securities of the Company or such
      surviving entity outstanding immediately after such merger or consolidation,
      or

     

    (iv) the
      shareholders of the Company approve 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 the Company’s assets.

     

    Notwithstanding
      the foregoing, with respect to an Award that is subject to Section 409A of
      the Code and the payment or settlement of the Award will accelerate upon a
      Change of Control, no event set forth herein will constitute a Change of Control
      for purposes of the Plan or any Award Document unless such event also
      constitutes a “change in ownership,” “change in effective control,” or “change
      in the ownership of a substantial portion of the Company’s assets” as defined
      under Section 409A of the Code.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended, and the applicable rulings and
      regulations promulgated thereunder.

     

    “Committee”
means
      the Organization and Compensation Committee of the Board, any successor
      committee thereto or any other committee appointed from time to time by the
      Board to administer the Plan, which committee shall meet the requirements of
      Section 162(m) of the Code, Section 16(b) of the Exchange
      Act and the applicable rules of the NYSE; provided,
      however,
      that,
      if any Committee member is found not to have met the qualification requirements
      of Section 162(m) of the Code and Section 16(b) of the
      Exchange Act, any actions taken or Awards granted by the Committee shall not
      be
      invalidated by such failure to so qualify.

     

    “Common
      Stock”
means
      the common stock of the Company, par value $0.01 per share, or such other class
      of share or other securities as may be applicable under Section 13 of the
      Plan.

     

    “Company”
means
      Textron Inc., a Delaware corporation, or any successor to all or substantially
      all of the Company’s business that adopts the Plan.

     

    “Early
      Retirement”
means
      the attainment of age 60, or age 55 with 10 years of service, or 20 years of
      service.

     

    “Effective
      Date”
means
      the date on which the Plan is adopted by the Board.

     

    “Eligible
      Individuals”
means
      the individuals described in Section 4(a) of the Plan who are eligible
      for Awards under the Plan.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and the rules and
      regulations promulgated thereunder.

     

    “Fair
      Market Value”
means,
      with respect to a share of Common Stock, the closing selling price of a share
      of
      Common Stock on the relevant date of determination as reported on the composite
      tape for securities listed on the NYSE, or such national securities exchange
      as
      may be designated by the Committee. If there were no sales on the relevant
      date,
      the fair market value shall equal the closing share price on the most recent
      day
      during which a sale occurred.

     

    “Incentive
      Stock Option”
means
      an Option that is intended to comply with the requirements of Section 422
      of the Code or any successor provision thereto.

     

    “Non-Employee
      Director”
means
      any member of the Board who is not an officer or employee of the Company or
      any
      Subsidiary.

     

    “Nonqualified
      Stock Option”
means
      an Option that is not intended to comply with the requirements of
      Section 422 of the Code or any successor provision thereto.

     

    “NYSE”
means
      the New York Stock Exchange.

     

    “Option”
means
      an Incentive Stock Option or Nonqualified Stock Option granted pursuant to
      Section 7 of the Plan.

     

    “Other
      Award”
means
      any form of Award other than an Option, Restricted Stock, Restricted Stock
      Unit,
      Performance Stock, Performance Share Unit, or Stock Appreciation Right granted
      pursuant to Section 11 of the Plan.

     

    “Parent”
means
      a
      corporation which owns or beneficially owns a majority of the outstanding voting
      stock or voting power of the Company. Notwithstanding the above, with respect
      to
      an Incentive Stock Option, Parent shall have the same meaning as “parent
      corporation” set forth in Section 424(e) of the Code.

     

    “Participant”
means
      an Eligible Individual who has been granted an Award under the
      Plan.

     

    “Performance
      Period”
means
      the period established by the Committee and set forth in the applicable Award
      Document over which Performance Targets are measured.

     

    “Performance
      Stock”
means
      a
      Target Number of Shares granted pursuant to Section 10(b) of the
      Plan.

     

    “Performance
      Target”
means
      the performance measures established by the Committee, from among the
      performance criteria provided in Section 6(g), and set forth in the
      applicable Award Document.

     

    “Performance
      Share Unit”
means
      a
      right to receive a Target Number of Shares or cash in the future granted
      pursuant to Section 10(c) of the Plan.

     

    “Permitted
      Transferees”
means
      (i) a Participant’s family member, (ii) one or more trusts established
      in whole or in part for the benefit of one or more of such family members,
      (iii) one or more entities which are beneficially owned in whole or in part
      by one or more such family members, or (iv) a charitable or not-for-profit
      organization.

     

    “Plan”
means
      this Textron Inc. 2007 Long-Term Incentive Plan, as amended or restated from
      time to time.

     

    “Plan
      Limit”
means
      the maximum aggregate number of Shares that may be issued for all purposes
      under
      the Plan as set forth in Section 5(a) of
      the
      Plan.

     

    “Prior
      Plan”
means
      the 1999 Long-Term Incentive Plan, as amended and restated from time to
      time.

     

    “Restricted
      Stock”
means
      one or more Shares granted pursuant to Section 8(b) of
      the
      Plan.

     

    “Restricted
      Stock Unit” means
      a
      right to receive one or more Shares (or cash, if applicable) in the future
      granted pursuant to Section 8(c) of
      the
      Plan.

     

    “Shares”
means
      shares of Common Stock, as may be adjusted pursuant to
      Section 13(b).

     

    “Stock
      Appreciation Right”
means
      a
      right to receive all or some portion of the appreciation on Shares granted
      pursuant to Section 9
      of the
      Plan.

     

    “Subsidiary”
means
      (i) a corporation or other entity with respect to which the Company,
      directly or indirectly, has the power, whether through the ownership of voting
      securities, by contract or otherwise, to elect at least a majority of the
      members of such corporation’s board of directors or analogous governing body, or
      (ii) any other corporation or other entity in which the Company, directly
or
      indirectly, has at least a 20% equity or similar interest and which the
      Committee designates as a Subsidiary for purposes of the Plan. For purposes
      of
      determining eligibility for the grant of Incentive Stock Options under the
      Plan,
      the term “Subsidiary” shall be defined in the manner required by
      Section 424(f) of the Code.

     

    “Substitute
      Award”
means
      any Award granted upon assumption of, or in substitution or exchange for,
      outstanding employee equity awards previously granted by a company or other
      entity acquired by the Company or with which the Company combines pursuant
      to
      the terms of an equity compensation plan that was approved by the stockholders
      of such company or other entity.

     

    “Target
      Number”
means,
      if applicable, the target number of Shares or cash value established by the
      Committee and set forth in the applicable Award Document.

     

    (b) Rules of
      Construction. The
      masculine pronoun shall be deemed to include the feminine pronoun, and the
      singular form of a word shall be deemed to include the plural form, unless
      the
      context requires otherwise. Unless the text indicates otherwise, references
      to
      sections are to sections of the Plan.

     

    3.
      Administration

     

    (a) Committee. The
      Plan
      shall be administered by the Committee, which shall have full power and
      authority, subject to the express provisions hereof, to:

     

    (i) select
      the Participants from the Eligible Individuals;

     

    (ii) grant
      Awards in accordance with the Plan;

     

    (iii) determine
      the number of Shares subject to each Award or the cash amount payable in
      connection with an Award;

     

    (iv) determine
      the terms and conditions of each Award, including, without limitation, those
      related to term, permissible methods of exercise, vesting, cancellation,
      payment, settlement, exercisability, Performance Periods, Performance Targets,
      and the effect, if any, of a Participant’s termination of employment with the
      Company or any of its Subsidiaries or, subject to Section 6(d),
      a
      Change of Control of the Company;

     

    (v) subject
      to Sections
      6(g), 16 and 17(e) of
      the
      Plan, amend the terms and conditions of an Award after the granting
      thereof;

     

    (vi) specify
      and approve the provisions of the Award Documents delivered to Participants
      in
      connection with their Awards;

     

    (vii) construe
      and interpret any Award Document delivered under the Plan;

     

    (viii)
      make factual determinations in connection with the administration or
      interpretation of the Plan;

     

    (ix) adopt,
      prescribe, amend, waive and rescind administrative regulations, rules and
      procedures relating to the Plan;

     

    (x) employ
      such legal counsel, independent auditors and consultants as it deems desirable
      for the administration of the Plan and to rely upon any advice, opinion or
      computation received therefrom;

     

    (xi) vary
      the
      terms of Awards to Participants in non-US jurisdictions to take account of
      local
      tax and securities law and other regulatory requirements or to procure favorable
      tax treatment for Participants;

     

    (xii) correct
      any defects, supply any omission or reconcile any inconsistency in any Award
      Document or the Plan; and

     

    (xiii) make
      all
      other determinations and take any other action desirable or necessary to
      interpret, construe or implement properly the provisions of the Plan or any
      Award Document.

     

    (b) Plan
      Construction and Interpretation. The
      Committee shall have full power and authority, subject to the express provisions
      hereof, to construe and interpret the Plan.

     

    (c) Determinations
      of Committee Final and Binding. All
      determinations by the Committee in carrying out and administering the Plan
      and
      in construing and interpreting the Plan shall be made in the Committee’s sole
      discretion and shall be final, binding and conclusive for all purposes and
      upon
      all persons interested herein.

     

    (d) Delegation
      of Authority. To
      the
      extent not prohibited by applicable laws, rules and regulations, the
      Committee may, from time to time, delegate some or all of its authority under
      the Plan to a subcommittee or subcommittees thereof or other persons or groups
      of persons as it deems necessary, appropriate or advisable under such conditions
      or limitations as it may set at the time of such delegation or thereafter;
      provided,
      however,
      that
      the Committee may not delegate its authority (i) to make Awards to
      employees (A) who are subject on the date of the Award to the reporting
      rules under Section 16(a) of the Exchange Act, (B) whose
      compensation for such fiscal year may be subject to the limit on deductible
      compensation pursuant to Section 162(m) of the Code or (C) who
      are officers of the Company who are delegated authority by the Committee
      hereunder, or (ii) pursuant to Section 16 of the Plan. For purposes of
      the Plan, reference to the Committee shall be deemed to refer to any
      subcommittee, subcommittees, or other persons or groups of persons to whom
      the
      Committee delegates authority pursuant to this Section 3(d). In addition,
      notwithstanding the foregoing, an independent Committee of the Board is required
      to approve any grants under this plan to non-employee directors.

     

    (e) Liability
      of Committee. Subject
      to applicable laws, rules and regulations: (i) no member of the Board
      or Committee (or its delegates) shall be liable for any good faith action or
      determination made in connection with the operation, administration or
      interpretation of the Plan and (ii) the members of the Board or the
      Committee (and its delegates) shall be entitled to indemnification and
      reimbursement in the manner provided in the Company’s Certificate of
      Incorporation as it may be amended from time to time. In the performance of
      its
      responsibilities with respect to the Plan, the Committee shall be entitled
      to
      rely upon information and/or advice furnished by the Company’s officers or
      employees, the Company’s accountants, the Company’s counsel and any other party
      the Committee deems necessary, and no member of the Committee shall be liable
      for any action taken or not taken in reliance upon any such information and/or
      advice.

     

    (f) Action
      by the Board. Anything
      in the Plan to the contrary notwithstanding, subject to applicable laws,
      rules and regulations, any authority or responsibility that, under the
      terms of the Plan, may be exercised by the Committee may alternatively be
      exercised by the Board. 

     

    4.
      Eligibility

     

    (a) 
Eligible
      Individuals. Awards
      may be granted to employees and Non-Employee Directors of the Company or any
      of
      its Subsidiaries or joint ventures, partnerships or business organizations
      in
      which the Company or its Subsidiaries have an equity interest; provided,
      however,
      that
      only employees of the Company or a Parent or Subsidiary may be granted Incentive
      Stock Options. The Committee shall have the authority to select the persons
      to
      whom Awards may be granted and to determine the type, number and terms of Awards
      to be granted to each such Participant. Under the Plan, references to
“employment” or “employed” include service of Participants who are Non-Employee
      Directors, except for purposes of determining eligibility to be granted
      Incentive Stock Options.

     

    (b) Grants
      to Participants. The
      Committee shall have no obligation to grant any Eligible Individual an Award
      or
      to designate an Eligible Individual as a Participant solely by reason of such
      Eligible Individual having
      received a prior Award or having been previously designated as a Participant.
      The Committee may grant more than one Award to a Participant and may designate
      an Eligible Individual as a Participant for overlapping periods of
      time.

     

    5.
      Shares Subject to the Plan

     

    (a) Plan
      Limit. Subject
      to adjustment in accordance with Section 13 of the Plan, the maximum
      aggregate number of Shares that may be issued for all purposes under the Plan
      shall be 6,000,000 plus any Shares that become available for issuance upon
      cancellation, forfeiture, or expiration of awards granted under the Prior Plan
      without having been exercised or settled. Shares to be issued under the Plan
      may
      be authorized and unissued shares, issued shares that have been reacquired
      by
      the Company (in the open-market or in private transactions) and that are being
      held in treasury, or a combination thereof. All of the Shares subject to the
      Plan Limit may be issued pursuant to Incentive Stock Options.

     

    (b) Rules Applicable
      to Determining Shares Available for Issuance. The
      number of Shares remaining available for issuance will be reduced by the number
      of Shares subject to outstanding Awards that are both denominated and intended
      to be settled in Shares and, for all other awards, by the number of Shares
      actually delivered upon settlement or payment of the Award. For purposes of
      determining the number of Shares that remain available for issuance under the
      Plan, (i) the number of Shares that are tendered by a Participant or
      withheld by the Company to pay the exercise price of an Award or to satisfy
      the
      Participant’s tax withholding obligations in connection with the exercise or
      settlement of an Award and (ii) all of the Shares covered by a
      stock-settled Stock Appreciation Right to the extent exercised, will not be
      added back to the Plan Limit. In addition, for purposes of determining the
      number of Shares that remain available for issuance under the Plan, the number
      of Shares corresponding to Awards that are both denominated and intended to
      be
      settled in Shares under the Plan that are forfeited or cancelled or otherwise
      expire for any reason without having been exercised or settled or that is
      settled through issuance of consideration other than Shares (including, without
      limitation, cash) shall be added back to the Plan Limit and again be available
      for the grant of Awards; provided,
      however,
      that
      this provision shall not be applicable with respect to (i) the cancellation
      of a Stock Appreciation Right granted in tandem with an Option upon the exercise
      of the Option or (ii) the cancellation of an Option granted in tandem with
      a Stock Appreciation Right upon the exercise of the Stock Appreciation
      Right.

     

    (c) Special
      Limits. Anything
      to the contrary in Section 5(a) above notwithstanding, but subject to
      adjustment under Sections 5(b) and 13 of the Plan, the following special limits
      shall apply to Shares available for Awards under the Plan:

     

    (i) the
      maximum number of Shares that may be issued pursuant to awards of Restricted
      Stock, Restricted Stock Units, Performance Stock, Performance Share Units and
      Other Awards that are payable in Shares granted under the Plan shall equal
      1,500,000 Shares in the aggregate;

     

    (ii) the
      maximum number of Shares that may be made subject to Options and Stock
      Appreciation Rights granted to any Eligible Individual in any calendar year
      shall equal 200,000 Shares, and if any Option or Stock Appreciation Right
      is forfeited, cancelled or otherwise expires for any reason without having
      been
      exercised, the Shares subject to such Option or Stock Appreciation Right shall
      be included in the determination of the aggregate number of Shares issued to
      such employee under the Plan.

     

    (iii) the
      maximum amount of Awards (other than those Awards set forth in
      Section 5(c)(ii)) that may be (1) awarded to any Eligible Individual
      in any calendar year (with respect to Awards settled in Shares) is 200,000
      Shares measured as of the date of grant, or (2) paid to any Eligible
      Individual in any calendar year (with respect to Awards settled in cash) is
      $15
      million; and

     

    (iv) A
      maximum
      of five percent (5%) of the aggregate number of Shares available for issuance
      under the Plan may be issued as Restricted Stock, Restricted Stock Units,
      Performance Stock, or Performance Share Units, having no minimum vesting period
      as specified in Sections 8(a) and 10(a).

     

    (d) Any
      Shares underlying Substitute Awards shall not be counted against the number
      of
      Shares remaining for issuance and shall not be subject to
      Section 5(c).

     

    6.
      Awards in General

     

    (a) Types
      of Awards. Awards
      under the Plan may consist of Options, Restricted Stock, Restricted Stock Units,
      Stock Appreciation Rights, Performance Stock, Performance Share Units and Other
      Awards. Any Award described in Sections 7 through 11 of the Plan may be granted
      singly or in combination or tandem with any other Award, as the Committee may
      determine. Awards under the Plan may be made in combination with, in replacement
      of, or as alternatives to awards or rights under any other compensation or
      benefit plan of the Company, including the plan of any acquired
      entity.

     

    (b) Terms
      Set Forth in Award Document. The
      terms and conditions of each Award shall be set forth in an Award Document
      in a
      form approved by the Committee for such Award, which Award Document shall
      contain terms and conditions not inconsistent with the Plan. Notwithstanding
      the
      foregoing, and subject to applicable laws, the Committee may accelerate
      (i) the vesting or payment of any Award, (ii) the lapse of
      restrictions on any Award or (iii) the date on which any Award first
      becomes exercisable. The Committee shall exercise this discretion only in the
      event of death, disability, Change of Control, retirement, or termination
      without cause. The terms of Awards may vary among Participants, and the Plan
      does not impose upon the Committee any requirement to make Awards subject to
      uniform terms. Accordingly, the terms of individual Award Documents may
      vary.

     

    (c) Termination
      of Employment. The
      Committee shall specify at or after the time of grant of an Award the provisions
      governing the disposition of an Award in the event of a Participant’s
      termination of employment with the Company or any of its Subsidiaries. Subject
      to applicable laws, rules and regulations, in connection with a
      Participant’s termination of employment, the Committee shall have the discretion
      to accelerate the vesting, exercisability or settlement of, eliminate the
      restrictions and conditions applicable to, alter the form of payment, or extend
      the post-termination exercise period of an outstanding Award. Such provisions
      may be specified in the applicable Award Document or determined at a subsequent
      time.

     

    (d) Change
      of Control. (i) The
      Committee shall have full authority to determine the effect, if any, of a Change
      of Control of the Company or any Subsidiary on
      the
      vesting, exercisability, settlement, payment or lapse of restrictions applicable
      to an Award, which effect may be specified in the applicable Award Document
      or
      determined at a subsequent time. Subject to applicable laws, rules and
      regulations, the Board or the Committee shall, at any time prior to, coincident
      with or after the effective time of a Change of Control, take such actions
      as it
      may consider appropriate, including, without limitation: (A) providing for
      the acceleration of any vesting conditions relating to the exercise or
      settlement of an Award or that an Award shall terminate or expire unless
      exercised or settled in full on or before a date fixed by the Committee;
      (B) making such adjustments to the Awards then outstanding as the Committee
      deems appropriate to reflect such Change of Control; (C) causing the Awards
      then outstanding to be assumed, or new rights substituted therefor, by the
      surviving corporation in such Change of Control; or (D) permit or require
      Participants to surrender outstanding Options and Stock Appreciation Rights
      in
      exchange for a cash payment equal to the difference, if any, between the highest
      price paid for a Share in the Change of Control transaction and the Exercise
      Price of the Award. In addition, except as otherwise specified in an Award
      Document (or a Participant’s written employment agreement with the Company or
      any Subsidiary):

     

    (1) any
      and
      all Options and Stock Appreciation Rights outstanding as of the effective date
      of the Change of Control shall become immediately exercisable;

     

    (2) any
      restrictions imposed on Restricted Stock and Restricted Stock Units outstanding
      as of the effective date of the Change of Control shall lapse;

     

    (3) the
      Performance Targets with respect to all Performance Share Units, Performance
      Stock and other performance-based Awards granted pursuant to Sections
      6(g) or 10 outstanding as of the effective date of the Change of Control
      shall be deemed to have been attained at the specified target level of
      performance; and

     

    (4) the
      vesting of all Awards denominated in Shares outstanding as of the effective
      date
      of the Change of Control shall be accelerated.

     

    (ii) Subject
      to applicable laws, rules and regulations, the Committee may provide, in an
      Award Document or subsequent to the grant of an Award for the accelerated
      vesting, exercisability and/or the deemed attainment of a Performance Target
      with respect to an Award upon specified events similar to a Change of
      Control.

     

    (iii) Notwithstanding
      any other provision of the Plan or any Award Document, the provisions of this
      Section 6(d) may not be terminated, amended, or modified upon or after
      a Change of Control in a manner that would adversely affect a Participant’s
      rights with respect to an outstanding Award without the prior written consent
      of
      the Participant. Subject to Section 16, the Board, upon recommendation of
      the Committee, may terminate, amend or modify this Section 6(d) at any
      time and from time to time prior to a Change of Control.

     

    (e) Dividends
      and Dividend Equivalents. The
      Committee may provide Participants with the right to receive dividends or
      payments equivalent to dividends or interest with respect to an outstanding
      Award, which payments can either be paid currently or deemed to have been
      reinvested in Shares, and can be made in Shares, cash or a combination thereof,
      as the Committee shall determine; provided,
      however,
      that
      the terms of any reinvestment of dividends must comply with all applicable
      laws,
      rules and regulations, including, without limitation, Section 409A of
      the Code. Notwithstanding the foregoing, no dividends or dividend equivalents
      shall be paid with respect to Options or Stock Appreciation Rights.

     

    (f) Rights
      of a Stockholder. A
      Participant shall have no rights as a stockholder with respect to Shares covered
      by an Award (including voting rights) until the date the Participant or his
      nominee becomes the holder of record of such Shares. No adjustment shall be
      made
      for dividends or other rights for which the record date is prior to such date,
      except as provided in Section 13.

     

    (g) Performance-Based
      Awards. (i) The
      Committee may determine whether any Award (or portion of an Award) under the
      Plan is intended to be “performance-based compensation” as that term is used in
      Section 162(m) of the Code. Any such Awards (or portions of Awards)
      designated to be “performance-based compensation” shall be conditioned on the
      achievement of one or more Performance Targets to the extent required by
      Section 162(m) of the Code and will be subject to all other conditions
      and requirements of Section 162(m). The Performance Targets will be
      comprised of specified levels of one or more of the following performance
      criteria as the Committee deems appropriate: operating cash flows from
      continuing operations, operating working capital, free cash flow, revenues,
      segment profit, corporate expenses, special charges, gain (loss) on sale of
      business, income from continuing operations,net income, EBITDA—earnings before
      interest, taxes, depreciation and amortization, EBIT—earnings before interest
      and taxes, EPS—earnings per share, as adjusted EPS, ROA - return on assets,
      ROS—return on sales, ROE—return on equity, ROIC—return on invested capital,
      WACC—weighted average cost of capital, total shareholder return, stock price
      appreciation, growth in managed assets, organic growth, cost performance, net
      cost reductions, inventory turns, selling and administrative expense as a
      percentage of sales, days sales outstanding, ratio of income to fixed charges,
      segment profit margins, total profit margin, EVA—economic value added, intrinsic
      value and effective income tax rate, in each case determined in accordance
      with
      generally accepted accounting principles (subject to modifications approved
      by
      the Committee) consistently
      applied on a business unit, divisional, subsidiary or consolidated basis or
      any
      combination thereof. The Performance Targets may be described in terms of
objectives
      that are related to the individual Participant or objectives that are
      Company-wide or related to a Subsidiary, division, department, region, function
      or business unit and may be measured on an absolute or cumulative basis or
      on
      the basis of percentage of improvement over time, and may be measured in terms
      of Company performance (or performance of the applicable Subsidiary, division,
      department, region, function or business unit) or measured relative to selected
      peer companies or a market index. In addition, for Awards or portions of Awards
      not intended to qualify as “performance-based compensation” under
      Section 162(m) of the Code, the Committee may establish Performance
      Targets based on other criteria as it deems appropriate.

     

    (ii) The
      Participants will be designated, and the applicable Performance Targets will
      be
      established, by the Committee within ninety (90) days following the commencement
      of the applicable Performance Period (or such earlier or later date permitted
      or
      required by Section 162(m) of the Code). Each Participant will be
      assigned a Target Number payable if Performance Targets are achieved. Any
      payment of an Award granted with Performance Targets shall be conditioned on
      the
      written certification of the Committee in each case that the Performance Targets
      and any other material conditions were satisfied. The Committee may determine,
      at the time of Award grant and to the extent permitted by Code
      Section 162(m) and the regulations and interpretive rulings
      thereunder, that if performance exceeds the specified Performance Targets,
      the
      Award may be settled with payment greater than the Target Number, but in no
      event may such payment exceed the limits set forth in Section 5(c).
      Similarly, the Committee may establish a payment that is below the Target Number
      but above a threshold level of payment if performance is below established
      Performance Targets. The Committee retains the right to reduce any Award
      notwithstanding the attainment of the Performance Targets. Notwithstanding
      the
      above, for any Award or portion of an Award designated to be “performance-based
      compensation” under Section 162(m) of the Code, the Committee does not
      retain any right to increase any amount otherwise determined under the
      provisions of the Plan.

     

    (h) Deferrals. In
      accordance with the procedures authorized by, and subject to the approval of,
      the Committee, Participants may be given the opportunity to defer the payment
      or
      settlement of an Award to one or more dates selected by the Participant;
provided,
      however,
      that
      the terms of any deferrals must comply with all applicable laws, rules and
      regulations, including, without limitation, Section 409A of the Code. No
      deferral opportunity shall exist with respect to an Award unless explicitly
      permitted by the Committee on or after the time of grant.

     

    (i) Repricing
      of Options and Stock Appreciation Rights. Notwithstanding
      anything in the Plan to the contrary, except as may be specifically authorized
      by the Company’s shareholders, an Option or Stock Appreciation Right shall not
      be granted in substitution for a previously granted Option or Stock Appreciation
      Right being canceled or surrendered as a condition of receiving a new Award,
      if
      the new Award would have a lower exercise price than the Award it replaces,
      nor
      shall the exercise price of an Option or Stock Appreciation Right be reduced
      once the Option or Stock Appreciation Right is granted. The foregoing shall
      not
      (i) prevent adjustments pursuant to Section 13 or (ii) apply to
      grants of Substitute Awards.

     

    7.
      Terms and Conditions of Options

     

    (a) General. The
      Committee, in its discretion, may grant Options to Eligible Individuals and
      shall determine whether such Options shall be Incentive Stock Options or
      Nonqualified Stock Options. Each Option shall be evidenced by an Award Document
      that shall expressly identify the Option as an Incentive Stock Option or
      Nonqualified Stock Option, and be in such form and contain such provisions
      as
      the Committee shall from time to time deem appropriate.

     

    (b) Exercise
      Price. The
      exercise price of an Option shall be fixed by the Committee at the time of
      grant
      or shall be determined by a method specified by the Committee at the time of
      grant. In no event shall the exercise price of an Option be less than one
      hundred percent (100%) of the Fair Market Value of a Share on the date of grant;
      provided,
      however
      that the
      exercise price of a Substitute Award granted as an Option shall be determined
      in
      accordance with Section 409A of the Code and, with respect to Incentive
      Stock Options, Section 424 of the Code and may be less than one hundred
      percent (100%) of the Fair Market Value.

     

    (c) Term. An
      Option shall be effective for such term as shall be determined by the Committee
      and as set forth in the Award Document relating to such Option, and the
      Committee may extend the term of an Option after the time of grant; provided,
      however,
      that
      the term of an Option may in no event extend beyond the tenth (10th)
      anniversary of the date of grant of such Option.

     

    (d) Exercise;
      Payment of Exercise Price. Options
      shall be exercised by delivery of a notice of exercise in a form approved by
      the
      Company. Subject to the provisions of the applicable Award Document, the
      exercise price of an Option may be paid (i) in cash or cash equivalents,
      (ii) by actual delivery or attestation to ownership of freely transferable
      Shares already owned by the person exercising the Option, (iii) by a
      combination of cash and Shares equal in value to the exercise price,
      (iv) through net share settlement or similar procedure involving the
      withholding of Shares subject to the Option with a value equal to the exercise
      price or (v) by such other means as the Committee may authorize. In
      accordance with the rules and procedures authorized by the Committee for
      this purpose, the Option may also be exercised through a “cashless exercise”
procedure authorized by the Committee from time to time that permits
      Participants to exercise Options by delivering irrevocable instructions to
      a
      broker to deliver promptly to the Company the amount of sale or loan proceeds
      necessary to pay the exercise price and the amount of any required tax or other
      withholding obligations or such other procedures determined by the Company
      from
      time to time.

     

    (e) Incentive
      Stock Options. The
      exercise price per Share of an Incentive Stock Option shall be fixed by the
      Committee at the time of grant or shall be determined by a method specified
      by
      the Committee at the time of grant, but in no event shall the exercise price
      of
      an Incentive Stock Option be less than one hundred percent (100%) of the Fair
      Market Value of a Share on the date of grant. No Incentive Stock Option may
      be
      issued pursuant to the Plan to any individual who, at the time the Incentive
      Stock Option is granted, owns stock possessing more than ten percent (10%)
      of
      the total combined voting power of all classes of stock of the Company or any
      of
      its Subsidiaries, unless (i) the exercise price determined as of the date
      of grant is at least one hundred ten percent (110%) of the Fair Market Value
      on
      the date of grant of the Shares subject to such Incentive Stock Option and
      (ii) the Incentive Stock Option is not exercisable more than five
      (5) years from the date of grant thereof. No Participant shall be granted
      any Incentive Stock Option which would result in such Participant receiving
      a
      grant of Incentive Stock Options that would have an aggregate Fair Market Value
      in excess of one hundred thousand dollars ($100,000), determined as of the
      time
      of grant, that would be exercisable for the first time by such Participant
      during any calendar year. No Incentive Stock Option may be granted under the
      Plan after the tenth (10th) anniversary of the Effective Date. The terms of
      any
      Incentive Stock Option granted under the Plan shall comply in all respects
      with
      the provisions of Section 422 of the Code, or any successor provision
      thereto, as amended from time to time.

     

    8.
      Terms and Conditions of Restricted Stock and Restricted Stock
      Units

     

    (a)   
      Minimum
      Vesting Provisions. Restricted
      Stock or Restricted Stock Units settled in shares that are granted without
      any
      other performance-based qualification criteria other than the passage of time
      shall have a minimum period of restriction of three (3) years.
      Performance-based grants shall feature a minimum period of restriction of one
      (1) year.
 

    (b) Restricted
      Stock. The
      Committee, in its discretion, may grant Restricted Stock to Eligible
      Individuals. An Award of Restricted Stock shall consist of one or more Shares
      granted to an Eligible Individual, and shall be subject to the terms, conditions
      and restrictions set forth in the Plan and established by the Committee in
      connection with the Award and specified in the applicable Award Document.
      Restricted Stock may, among other things, be subject to restrictions on
      transferability, vesting requirements or other specified circumstances under
      which it may be canceled.

     

    (c) Restricted
      Stock Units. The
      Committee, in its discretion, may grant Restricted Stock Units to Eligible
      Individuals. A Restricted Stock Unit shall entitle a Participant to receive,
      subject to the terms, conditions and restrictions set forth in the Plan and
      the
      applicable Award Document, one or more Shares. Restricted Stock Units may,
      among
      other things, be subject to restrictions on transferability, vesting
      requirements or other specified circumstances under which they may be canceled.
      If and when the cancellation provisions lapse, the Restricted Stock Units shall
      become Shares owned by the applicable Participant or, at the sole discretion
      of
      the Committee, cash, or a combination of cash and Shares, with a value equal
      to
      the Fair Market Value of the Shares at the time of payment.

     

    9.
      Stock Appreciation Rights

     

    (a) General. The
      Committee, in its discretion, may grant Stock Appreciation Rights to Eligible
      Individuals. A Stock Appreciation Right shall entitle a Participant to receive,
      upon satisfaction of the conditions to payment specified in the applicable
      Award
      Document, an amount equal to the excess, if any, of the Fair Market Value on
      the
      exercise date of the number of Shares for which the Stock Appreciation Right
      is
      exercised over the grant price for such Stock Appreciation Right specified
      in
      the applicable Award Document. The grant price per share of Shares covered
      by a
      Stock Appreciation Right shall be fixed by the Committee at the time of grant
      or, alternatively, shall be determined by a method specified by the Committee
      at
      the time of grant, but in no event shall the grant price of a Stock Appreciation
      Right be less than one hundred percent (100%) of the Fair Market Value of a
      Share on the date of grant; provided,
      however,
      that
      the grant price of a Substitute Award granted as a Stock Appreciation Rights
      shall be in accordance with Section 409A of the Code and may be less than
      one hundred percent (100%) of the Fair Market Value. Payments to a Participant
      upon exercise of a Stock Appreciation Right may be made in cash or Shares,
      or a
      combination of cash and Shares having an aggregate Fair Market Value as of
      the
      date of exercise equal to the excess, if any, of the Fair Market Value on the
      exercise date of the number of Shares for which the Stock Appreciation Right
      is
      exercised over the grant price for such Stock Appreciation Right. The term
      of a
      Stock Appreciation Right settled in Shares shall not exceed ten
      (10) years.

     

    (b)   
      Stock
      Appreciation Rights in Tandem with Options. A
      Stock
      Appreciation Right granted in tandem with an Option may be granted either at
      the
      same time as such Option or subsequent thereto. If granted in tandem with an
      Option, a Stock Appreciation Right shall cover the same number of Shares as
      covered by the Option (or such lesser number of shares as the Committee may
      determine) and shall be exercisable only at such time or times and to the extent
      the related Option shall be exercisable, and shall have the same term as the
      related Option. The grant price of a Stock Appreciation Right granted in tandem
      with an Option shall equal the per-share exercise price of the Option to which
      it relates. Upon exercise of a Stock Appreciation Right granted in tandem with
      an Option, the related Option shall be canceled automatically to the extent
      of
      the number of Shares covered by such exercise; conversely, if the related Option
      is exercised as to some or all of the shares covered by the tandem grant, the
      tandem Stock Appreciation Right shall be canceled automatically to the extent
      of
      the number of Shares covered by the Option exercise.

     

    10.
      Terms and Conditions of Performance Stock and Performance Share
      Units

     

    (a)   
      Minimum
      Vesting Provisions. Performance
      Stock or Performance Share Units shall feature a minimum period of restriction
      of one (1) year.

     

    (b) Performance
      Stock. The
      Committee may grant Performance Stock to Eligible Individuals. An Award of
      Performance Stock shall consist of a Target Number of Shares granted to an
      Eligible Individual based on the achievement of Performance Targets over the
      applicable Performance Period, and shall be subject to the terms, conditions
      and
      restrictions set forth in the Plan and established by the Committee in
      connection with the Award and specified in the applicable Award
      Document.

     

    (c) Performance
      Share Units. The
      Committee, in its discretion, may grant Performance Share Units to Eligible
      Individuals. A Performance Share Unit shall entitle a Participant to receive,
      subject to the terms, conditions and restrictions set forth in the Plan and
      established by the Committee in connection with the Award and specified in
      the
      applicable Award Document, a Target Number of Shares or cash based upon the
      achievement of Performance Targets over the applicable Performance Period.
      At
      the sole discretion of the Committee, Performance Share Units shall be settled
      through the delivery of Shares or cash, or a combination of Shares and
      cash.

     

    11.
      Other Awards

     

    The
      Committee shall have the authority to specify the terms and provisions of other
      forms of equity- or cash-based Awards not described above that the Committee
      determines to be consistent with the purpose of the Plan and the interests
      of
      the Company, which Awards may provide for cash payments or settlement in Shares.
      To the extent that any such Awards which constitute “full value” awards are to
      be settled in shares and are performance-based, the minimum period of
      restriction shall be one (1) year. Awards which constitute “full value”
awards and are to be settled in shares that have no performance-based criteria
      other than the passage of time shall have a minimum period of restriction of
      three (3) years.

     

    12.
      Certain Restrictions

     

    (a) Transfers. No
      Award
      shall be transferable other than pursuant to a beneficiary designation under
      Section 12(c), by last will and testament or by the laws of descent and
      distribution or, except in the case of an Incentive Stock Option, pursuant
      to a
      domestic relations order, as the case may be; provided,
      however,
      that
      the Committee may, subject to applicable laws, rules and regulations and
      such terms and conditions as it shall specify, permit the transfer of an Award,
      other than an Incentive Stock Option, for no consideration to a Permitted
      Transferee. Any Award transferred to a Permitted Transferee shall be further
      transferable only by last will and testament or the laws of descent and
      distribution or, for no consideration, to another Permitted Transferee of the
      Participant.

     

    (b) Award
      Exercisable Only by Participant. During
      the lifetime of a Participant, an Award shall be exercisable only by the
      Participant or by a Permitted Transferee to whom such Award has been transferred
      in accordance with Section 12(a) above. The grant of an Award shall
      impose no obligation on a Participant to exercise or settle the
      Award.

     

    (c) Beneficiary
      Designation. The
      beneficiary or beneficiaries of the Participant to whom any benefit under the
      Plan is to be paid in case of his death before he receives any or all of such
      benefit shall be determined under the Company’s Group Life Insurance Plan. A
      Participant may, from time to time, name any beneficiary or beneficiaries to
      receive any benefit in case of his death before he receives any or all of such
      benefit. Each such designation shall revoke all prior designations by the same
      Participant, including the beneficiary designated under the Company’s Group Life
      Insurance Plan, and will be effective only when filed by the Participant in
      writing (in such form or manner as may be prescribed by the Committee) with
      the
      Company during the Participant’s lifetime. In the absence of a valid designation
      under the Company’s Group Life Insurance Plan or otherwise, if no validly
      designated beneficiary survives the Participant or if each surviving validly
      designated beneficiary is legally impaired or prohibited from receiving the
      benefits under an Award, the Participant’s beneficiary shall be the
      Participant’s estate.

     

    13.
      Recapitalization or Reorganization

     

    (a) Authority
      of the Company and Stockholders. The
      existence of the Plan, the Award Documents and the Awards granted hereunder
      shall not affect or restrict in any way the right or power of the Company or
      the
      stockholders of the Company to make or authorize any adjustment,
      recapitalization, reorganization or other change in the Company’s capital
      structure or business, any merger or consolidation of the Company, any issue
      of
      stock or of options, warrants or rights to purchase stock or of bonds,
      debentures, preferred or prior preference stocks whose rights are superior
      to or
      affect the Shares or the rights thereof or which are convertible into or
      exchangeable for Shares, or the dissolution or liquidation of the Company,
      or
      any sale or transfer of all or any part of its assets or business, or any other
      corporate act or proceeding, whether of a similar character or
      otherwise.

     

    (b) Change
      in Capitalization. Notwithstanding
      any provision of the Plan or any Award Document, the number and kind of Shares
      authorized for issuance under Section 5 of the Plan, including the maximum
      number of Shares available under the special limits provided for in
      Section 5(c), shall be equitably adjusted in the sole discretion of the
      Committee in the event of a stock split, reverse stock split, stock dividend,
      recapitalization, reorganization, partial or complete liquidation,
      reclassification, merger, consolidation, separation, extraordinary cash
      dividend, split-up, spin-off, combination, exchange of Shares, warrants or
      rights offering to purchase Shares at a price substantially below Fair Market
      Value, or any other corporate event or distribution of stock or property of
      the
      Company affecting the Shares in order to preserve, but not increase, the
      benefits or potential benefits intended to be made available under the Plan.
      In
      addition, upon the occurrence of any of the foregoing events, the number and
      kind of Shares subject to any outstanding Award and the exercise price per
      Share
      (or the grant price per Share, as the case may be), if any, under any
      outstanding Award shall be equitably adjusted (including by payment of cash
      to a
      Participant) in the sole discretion of the Committee in order to preserve the
      benefits or potential benefits intended to be made available to Participants.
      Such adjustments shall be made by the Committee. Unless otherwise determined
      by
      the Committee, such adjusted Awards shall be subject to the same restrictions
      and vesting or settlement schedule to which the underlying Award is
      subject.

     

    14.
      Term of the Plan

     

    Unless
      earlier terminated pursuant to Section 16, the Plan shall terminate on the
      tenth (10th)
      anniversary of the Effective Date, except with respect to Awards then
      outstanding. No Awards may be granted under the Plan after the tenth
      (10th)
      anniversary of the Effective Date.

     

    15.
      Effective Date

     

    The
      Plan
      shall become effective on the Effective Date, subject to approval by the
      stockholders of the Company.

     

    16.
      Amendment and Termination

     

    Subject
      to applicable laws, rules and regulations, the Board may at any time
      terminate or, from time to time, amend, modify or suspend the Plan; provided,
      however,
      that no
      termination, amendment, modification or suspension (i) will be effective
      without the approval of the stockholders of the Company if such approval is
      required under applicable laws, rules and regulations, including the
      rules of NYSE and (ii) shall materially and adversely alter or impair
      the rights of a Participant in any Award previously made under the Plan without
      the consent of the holder thereof. Notwithstanding the foregoing, the Board
      shall have broad authority to amend the Plan or any Award under the Plan without
      the consent of a Participant to the extent it deems necessary or desirable
      (a) to comply with, take into account changes in, or interpretations of,
      applicable tax laws, securities laws, employment laws, accounting rules and
      other applicable laws, rules and regulations, (b) to take into account
      unusual or nonrecurring events or market conditions (including, without
      limitation, the events described in Section 13(b)), or (c) to take
      into account significant acquisitions or dispositions of assets or other
      property by the Company.

     

    17.
      Miscellaneous

     

    (a) Tax
      Withholding. The
      Company or a Subsidiary, as appropriate, may require any individual entitled
      to
      receive a payment of an Award to remit to the Company, prior to payment, an
      amount sufficient to satisfy any applicable tax withholding requirements. In
      the
      case of an Award payable in Shares, the Company or a Subsidiary, as appropriate,
      may permit or require a Participant to satisfy, in whole or in part, such
      obligation to remit taxes by the Company withholding Shares that would otherwise
      be received by such individual or repurchasing shares that were issued to the
      Participant to satisfy the (i) minimum statutory withholding rates within
      the United States, or (ii) in accordance with local tax jurisdictions
      outside the United States, as applicable, for any applicable tax withholding
      purposes, in accordance with all applicable laws and pursuant to such
      rules as the Committee may establish from time to time. The Company or a
      Subsidiary, as appropriate, shall also have the right to deduct from all cash
      payments made to a Participant (whether or not such payment is made in
      connection with an Award) any applicable taxes required to be withheld with
      respect to such payments.

     

    (b) No
      Right to Awards or Employment. No
      person shall have any claim or right to receive Awards under the Plan. Neither
      the Plan, the grant of Awards under the Plan nor any action taken or omitted
      to
      be taken under the Plan shall be deemed to create or confer on any Eligible
      Individual any right to be retained in the employ of the Company or any
      Subsidiary or other affiliate thereof, or to interfere with or to limit in
      any
      way the right of the Company or any Subsidiary or other affiliate thereof to
      terminate the employment of such Eligible Individual at any time. No Award
      shall
      constitute salary or contractual compensation for the year of grant, any later
      year or any other period of time. Payments received by a Participant under
      any
      Award made pursuant to the Plan shall not be included in, nor have any effect
      on, the determination of employment-related rights or benefits under any other
      employee benefit plan or similar arrangement provided by the Company and the
      Subsidiaries, unless otherwise specifically provided for under the terms of
      such
      plan or arrangement or by the Committee.

     

    (c) Securities
      Law Restrictions. An
      Award
      may not be exercised or settled, and no Shares may be issued in connection
      with
      an Award, unless the issuance of such shares (i) has been registered under
      the Securities Act of 1933, as amended, (ii) has qualified under applicable
      state “blue sky” laws (or the Company has determined that an exemption from
      registration and from qualification under such state “blue sky” laws is
      available) and (iii) complies with all applicable foreign securities laws.
      All certificates for Shares delivered under the Plan shall be subject to such
      stock-transfer orders and other restrictions as the Committee may deem advisable
      under the rules, regulations, and other requirements of the Securities and
      Exchange Commission, any exchange upon which the Shares are then listed, and
      any
      applicable securities law, and the Committee may cause a legend or legends
      to be
      put on any such certificates to make appropriate reference to such
      restrictions.

     

    (d) Section 162(m) of
      the Code. The
      Plan
      is intended to comply in all respects with Section 162(m) of the Code;
provided,
      however,
      that in
      the event the Committee determines that compliance with
      Section 162(m) of the Code is not desired with respect to a particular
      Award (or portion of an Award), compliance with Section 162(m) of the
      Code will not be required. In addition, if any provision of this Plan would
      cause Awards or portions of Awards that are intended to constitute “qualified
      performance-based compensation” under Section 162(m) of the Code, to
      fail to so qualify, that provision shall be severed from, and shall be deemed
      not to be a part of, the Plan, but the other provisions hereof shall remain
      in
      full force and effect.

     

    (e) Section 409A
      of the Code. Notwithstanding
      any contrary provision in the Plan or an Award Document, if any provision of
      the
      Plan or an Award Document contravenes any regulations or guidance promulgated
      under Section 409A of the Code or would cause an Award to be subject to
      additional taxes, accelerated taxation, interest and/or penalties under
      Section 409A of the Code, such provision of the Plan or Award Document may
      be modified by the Committee without the consent of the Participant in any
      manner
      the Committee deems reasonable or necessary. In making such modifications the
      Committee shall attempt, but shall not be obligated, to maintain, to the maximum
      extent practicable, the original intent of the applicable provision without
      contravening the provisions of Section 409A of the Code. Moreover, any
      discretionary authority that the Committee may have pursuant to the Plan shall
      not be applicable to an Award that is subject to Section 409A of the Code
      to the extent such discretionary authority would contravene Section 409A of
      the Code or the guidance promulgated thereunder.

     

    (f)  
      Awards
      to Individuals Subject to Laws of a Jurisdiction Outside of the United
      States. To
      the
      extent that Awards under the Plan are awarded to Eligible Individuals who are
      domiciled or reside outside of the United States or to persons who are domiciled
      or reside in the United States but who are subject to the tax laws of a
      jurisdiction outside of the United States, the Committee may adjust the terms
      of
      the Awards granted hereunder to such person (i) to comply with the laws,
      rules and regulations of such jurisdiction and (ii) to permit the
      grant of the Award not to be a taxable event to the Participant. The authority
      granted under the previous sentence shall include the discretion for the
      Committee to adopt, on behalf of the Company, one or more sub-plans applicable
      to separate classes of Eligible Individuals who are subject to the laws of
      jurisdictions outside of the United States.

     

    (g) Satisfaction
      of Obligations. Subject
      to applicable law, the Company may apply any cash, Shares, securities or other
      consideration received upon exercise or settlement of an Award to any
      obligations a Participant owes to the Company and the Subsidiaries in connection
      with the Plan or otherwise, including, without limitation, any tax obligations
      or obligations under a currency facility established in connection with the
      Plan.

     

    (h) No
      Limitation on Corporate Actions. Nothing
      contained in the Plan shall be construed to prevent the Company or any
      Subsidiary from taking any corporate action, whether or not such action would
      have an adverse effect on any Awards made under the Plan. No Participant,
      beneficiary or other person shall have any claim against the Company or any
      Subsidiary as a result of any such action.

     

    (i) Unfunded
      Plan. The
      Plan
      is intended to constitute an unfunded plan for incentive compensation. Prior
      to
      the issuance of Shares, cash or other form of payment in connection with an
      Award, nothing contained herein shall give any Participant any rights that
      are
      greater than those of a general unsecured creditor of the Company. The Committee
      may, but is not obligated, to authorize the creation of trusts or other
      arrangements to meet the obligations created under the Plan to deliver Shares
      with respect to awards hereunder.

     

    (j) Successors. All
      obligations of the Company under the Plan with respect to Awards granted
      hereunder 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, consolidation, or otherwise, of all or substantially all of the business
      and/or assets of the Company.

     

    (k) Application
      of Funds. The
      proceeds received by the Company from the sale of Shares pursuant to Awards
      will
      be used for general corporate purposes.

     

    (l) Award
      Document. In
      the
      event of any conflict or inconsistency between the Plan and any Award Document,
      the Plan shall govern and the Award Document shall be interpreted to minimize
      or
      eliminate any such conflict or inconsistency.

     

    (m) Headings. The
      headings of Sections herein are included solely for convenience of reference
      and
      shall not affect the meaning of any of the provisions of the Plan.

     

    (n) Severability. If
      any
      provision of this Plan is held unenforceable, the remainder of the Plan shall
      continue in full force and effect without regard to such unenforceable provision
      and shall be applied as though the unenforceable provision were not contained
      in
      the Plan.

     

    (o)  
      Expenses.  The
      costs
      and expenses of administering the Plan shall be borne by the
      Company.

     

    (p) Jurisdiction,
      Venue and Governing Law. Except
      as to matters of federal law, the Plan and all actions taken thereunder shall
      be
      governed by and construed in accordance with the laws of the State of Rhode
      Island. Any dispute, controversy or claim arising out of or relating to the
      Plan
      or any award under the Plan shall be brought only in a court of competent
      jurisdiction in the State of Rhode Island, and no other court, agency or
      tribunal shall have jurisdiction to resolve any such dispute, controversy or
      claim.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]