Document:

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                                                                   EXHIBIT 10.15

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT, is entered into as of this 25th day of May,
1999 by and between Textron Inc. (the "Company"), a Delaware corporation having
its principal office at 40 Westminster Street, Providence, Rhode Island 02903
and John A. Janitz (the "Executive").

                              W I T N E S S E T H:
                              - - - - - - - - - -

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

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

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

1.       TERM OF EMPLOYMENT

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

2.       POSITION AND RESPONSIBILITIES

                  During the Employment Term, the Executive shall serve as the
President and Chief Operating Officer of the Company or in such higher capacity
as agreed by the Company and the Executive. The Executive shall report
exclusively to the Chief Executive Officer and the Board of Directors of the
Company (the "Board"). The Executive shall, to the extent appointed or elected,
serve on the Board as a director and as a member of any committee of the Board,
in each case, without additional compensation. The Executive shall, to the
extent appointed or elected, serve as a director or as a member of any committee
of the board (or the equivalent

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

3.       COMPENSATION AND BENEFITS

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

                  3.1 BASE SALARY. The Company shall pay the Executive an
initial base salary (the "Base Salary") at a rate of $600,000. Base Salary shall
be paid to the Executive in accordance with the Company's normal payroll
practices for executives. Base Salary shall be reviewed at least annually by the
O&C Committee (or as otherwise designated by the Board) to ascertain whether, in
the judgment of the reviewing committee, such Base Salary should be increased.
If so increased, Base Salary shall not be thereafter decreased and shall
thereafter, as increased, be the Base Salary hereunder.

                  3.2 ANNUAL BONUS. The Company shall provide the Executive with
the opportunity to earn an annual cash bonus under the Company's current annual
incentive compensation plan for executives or a replacement plan therefor at a
level commensurate with his position, provided that the minimum annual target
award payable upon the achievement of reasonably attainable objective
performance goals shall be at least seventy percent 70% of Base Salary.

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

                  3.4 EMPLOYEE BENEFITS. The Executive shall, to the extent
eligible, be entitled

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to participate at a level commensurate with his position in all employee benefit
welfare and retirement plans and programs, as well as equity plans, generally
provided by the Company to its senior executives in accordance with the terms
thereof as in effect from time to time.

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

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

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

4.       EXPENSES

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

5.       TERMINATION OF EMPLOYMENT

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

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

         (b)      Upon thirty (30) days written notice by the Company to the
                  Executive of a termination due to Disability, provided such
                  notice is delivered during the period of Disability. The term
                  "Disability" shall mean, for purposes of this Agreement, the
                  inability of the Executive, due to injury, illness, disease or
                  bodily or mental infirmity, to engage in the performance of
                  his material duties of employment with

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

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

         (d)      Immediately upon written notice by the Company to the
                  Executive of a termination for Cause, provided such notice is
                  given within ninety (90) days after the discovery by the Board
                  or the Chief Executive Officer of the Cause event and has been
                  approved by the O&C Committee at a meeting at which the
                  Executive and his counsel had the right to appear and address
                  such meeting after receiving at least five (5) business days
                  written notice of the meeting and reasonable detail of the
                  facts and circumstances claimed to provide a basis for such
                  termination. The term "Cause" shall mean, for purposes of this
                  Agreement: (i) an act or acts of willful misrepresentation,
                  fraud or willful dishonesty (other than good faith expense
                  account disputes) by the Executive which in any case is
                  intended to result in his or another person or entity's
                  substantial personal enrichment at the expense of the Company;
                  (ii) any willful misconduct by the Executive with regard to
                  the Company, its business, assets or employees that has, or
                  was intended to have, a material adverse impact (economic or
                  otherwise) on the Company; (iii) any material, willful and
                  knowing violation by the Executive of (x) the Company's
                  Business Conduct Guidelines, or (y) any of his fiduciary
                  duties to the Company which in either case has, or was
                  intended to have, a material adverse impact (economic or
                  otherwise) on the Company; (iv) the willful or reckless
                  behavior of the Executive with regard to a matter of a
                  material nature which has a material adverse impact (economic
                  or otherwise) on the Company; (v) the Executive's willful
                  failure to attempt to perform his duties under Section 2
                  hereof or his willful failure to attempt to follow the legal
                  written direction of the Board, which in either case is not
                  remedied within ten (10) days after receipt by the Executive
                  of a written notice from the Company specifying the details
                  thereof; (vi) the

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                  Executive's conviction of, or pleading NOLO CONTENDERE or
                  guilty to, a felony (other than (x) a traffic infraction or
                  (y) vicarious liability solely as a result of his position
                  provided the Executive did not have actual knowledge of the
                  actions or inactions creating the violation of the law or the
                  Executive relied in good faith on the advice of counsel with
                  regard to the legality of such action or inaction (or the
                  advice of other specifically qualified professionals as to the
                  appropriate or proper action or inaction to take with regard
                  to matters which are not matters of legal interpretation)); or
                  (vii) any other material breach by the Executive of this
                  Agreement that is not cured by the Executive within twenty
                  (20) days after receipt by the Executive of a written notice
                  from the Company of such breach specifying the details
                  thereof. No action or inaction should be deemed willful if not
                  demonstrably willful and if taken or not taken by the
                  Executive in good faith as not being adverse to the best
                  interests of the Company. Reference in this paragraph (d) to
                  the Company shall also include direct and indirect
                  subsidiaries of the Company, and materiality and material
                  adverse impact shall be measured based on the action or
                  inaction and the impact upon, and not the size of, the Company
                  taken as a whole, provided that after a Change in Control, the
                  size of the Company, taken as a whole, shall be a relevant
                  factor in determining materiality and material adverse impact.

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

         (f)      Upon twenty (20) days written notice by the Executive to the
                  Company of a termination for Good Reason (which notice sets
                  forth in reasonable detail the facts and circumstances claimed
                  to provide a basis for such termination) unless the Good
                  Reason event is cured within such twenty (20) day period. The
                  term "Good Reason" shall mean, for purposes of this Agreement,
                  without the Executive's express written consent, the
                  occurrence of any one or more of the following: (i) the
                  assignment to the Executive of duties materially inconsistent
                  with the Executive's then authorities, duties,
                  responsibilities, and status (including offices, titles, and
                  reporting requirements), or any reduction in the Executive's
                  then title, position, reporting lines or a material reduction
                  (other than temporarily while Disabled or otherwise
                  incapacitated) in his then status, authorities, duties, or
                  responsibilities or, if then a director of the Company,
                  failure to be nominated or reelected as a director of the
                  Company or removal as such; (ii) relocation of the Executive
                  from the principal office of the Company (excluding reasonable
                  travel on the Company's business to an extent substantially
                  consistent with the

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                  Executive's business obligations) or relocation of the
                  principal office of the Company to a location which is at
                  least fifty (50) miles from the Company's current
                  headquarters, provided, however, if the Executive at the time
                  of the relocation is not located at the principal office, such
                  relocation provision shall apply based on his then location
                  but shall not cover a relocation to the principal office prior
                  to a Change in Control; (iii) a reduction by the Company in
                  the Executive's Base Salary; (iv) a reduction in the
                  Executive's aggregate level of participation in any of the
                  Company's short and/or long-term incentive compensation plans,
                  or employee benefit or retirement plans, policies, practices,
                  or arrangements in which the Executive participated as of the
                  Effective Date, or, after a Change in Control, participated
                  immediately prior to the Change in Control; (v) the failure of
                  the Company to obtain and deliver to the Executive a
                  satisfactory written agreement from any successor to the
                  Company to assume and agree to perform this Agreement; or (vi)
                  any other material breach by the Company of this Agreement.

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

SECTION 6.  CONSEQUENCES OF A TERMINATION OF EMPLOYMENT

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

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

         6.3 INVOLUNTARY TERMINATION BY THE COMPANY WITHOUT CAUSE OR TERMINATION
BY THE EXECUTIVE FOR GOOD REASON. If the Executive is involuntarily terminated
by the Company without Cause in accordance with Section 5(e) above or the
Executive terminates his

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employment for Good Reason in accordance with Section 5(f) above, the Executive
shall be entitled, in lieu of any other payments or benefits, subject to Section
7(b) hereof, to any Accrued Obligations and the following:

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

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

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

         6.4 TERMINATION BY THE COMPANY FOR CAUSE OR TERMINATION BY THE
EXECUTIVE WITHOUT GOOD REASON. If the Executive is terminated by the Company for
Cause or the Executive terminates his employment without Good Reason, the
Executive shall be entitled to receive all Accrued Obligations.

SECTION 7.  NO MITIGATION/NO OFFSET/RELEASE

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

         (b)      Any amounts payable and benefits or additional rights provided
                  pursuant to

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

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

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

8.       CHANGE IN CONTROL

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

         (a)      Any Accrued Obligations.

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

         (c)      A lump-sum cash payment equal to the Prorated Portion of the
                  greater of: (i) the Executive's target annual incentive
                  compensation award established for the fiscal

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                  year during which the Executive's award termination occurs, or
                  (ii) the Executive's earned annual incentive award for the
                  fiscal year prior to the fiscal year in which the earlier of
                  the Change in Control or the Qualifying Termination occurs
                  (whether or not deferred).

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

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

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

         (g)      A lump-sum cash payment of the actuarial present value
                  equivalent (as determined in accordance with the most
                  favorable (to the Executive) overall actuarial assumptions and
                  subsidies in any of the Company's tax-qualified or
                  nonqualified type defined benefit pension plans in which the
                  Executive then participates) of the accrued benefits accrued
                  by the Executive as of the date of termination under the terms
                  of any nonqualified defined benefit type retirement plan,
                  including but not limited to, the Amended and Restated
                  Supplemental

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                  Executive Retirement Plan for Textron Inc. Key Executives and
                  the Supplemental Benefits Plan and assuming the benefit was
                  fully vested without regard to any minimum age or service
                  requirements. For this purpose, such benefits shall be
                  calculated under the assumption that the Executive's
                  employment continued following the date of termination for
                  three (3) full years (i.e., three (3) additional years of age
                  (including, but not limited to, for purposes of determining
                  the actuarial present value), compensation and service credits
                  shall be added).

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

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

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

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

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

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

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

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

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

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

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

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

9.       NONCOMPETITION, CONFIDENTIALITY AND NONDISPARAGEMENT

                  9.1      AGREEMENT NOT TO COMPETE.

         (a)      The Executive agrees that for a period of two (2) years after
                  the termination of

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

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

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

                  9.2      DEFINITIONS.

         (a)      "Competition" shall mean engaging in, as an employee,
                  director, partner, principal, shareholder, consultant,
                  advisor, independent contractor or similar capacity, with (a)
                  the Listed Companies or (b) in any business, activity or
                  conduct which directly competes with the business of the
                  Company, provided that, with regard to the period after
                  termination of the Executive's employment, Section 9.1(b)(ii)
                  shall only apply to business lines in which the Company is
                  engaged both at the time of termination of employment and at
                  the time of the determination and which during the last fiscal
                  year ending prior to the date of such termination represented
                  at least five percent (5%) of the Company's revenues (the
                  "Prohibited Lines"). Notwithstanding anything else in this
                  Section 9, Competition shall not include: (A) (i) holding five
                  percent (5%) or less of an interest in the equity or debt of
                  any publicly traded company, (ii) engaging in any activity
                  with the prior written approval of the Chief Executive Officer
                  or the O&C Committee, (iii) the practice of law in a law firm
                  that represents entities in Competition with the Company,
                  provided that the Executive does not personally represent such
                  entities, or (iv) the employment by, or provision of services
                  to, an investment banking firm or consulting firm that
                  provides services to entities that are in Competition with the
                  Company provided that the Executive does not personally
                  represent or provide services to such entities that are Listed
                  Companies or otherwise with regard to businesses in
                  Competition with the Prohibited Lines,

                                       12
<PAGE>   13

                  or (B) with regard to Section 9.1(b)(ii), (i) being employed
                  by, or consulting for, a non-Competitive division or business
                  unit of an entity which is in Competition with the Company
                  (and participating in such entity's employee equity plans),
                  (ii) being employed by, or consulting for, an entity which had
                  annual revenues in the last fiscal year prior to the Executive
                  being employed by, or consulting for, the entity generated
                  through business lines in Competition with the Prohibited
                  Lines of the Company that do not exceed five percent (5%) of
                  such entity's total annual revenues, provided that revenues
                  within the Executive's area of responsibility or authority are
                  not more than ten percent (10%) composed of the revenues from
                  the businesses in Competition with the Prohibited Lines, or
                  (iii) any activities conducted after a Change in Control of
                  the Company.

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

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

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

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

                  9.4      CONFIDENTIAL INFORMATION.

         (a)      The Executive specifically acknowledges that any trade secrets
                  or confidential business and technical information of the
                  Company or its vendors, suppliers or customers, whether
                  reduced to writing, maintained on any form of electronic
                  media, or maintained in mind or memory and whether compiled by
                  the Executive or the Company (collectively, "Confidential
                  Information"), derives independent economic value from not
                  being readily known to or ascertainable by proper means by
                  others; that reasonable efforts have been made by the Company
                  to

                                       13
<PAGE>   14

                  maintain the secrecy of such information; that such
                  information is the sole property of the Company or its
                  vendors, suppliers, or customers and that any retention, use
                  or disclosure of such information by the Executive during the
                  Employment Term (except in the course of performing duties and
                  obligations of employment with the Company) or any time after
                  termination thereof, shall constitute misappropriation of the
                  trade secrets of the Company or its vendors, suppliers, or
                  customers, provided that Confidential Information shall not
                  include: (i) information that is at the time of disclosure
                  public knowledge or generally known within the industry, (ii)
                  information deemed in good faith by the Executive, while
                  employed by the Company, desirable to disclose in the course
                  of performing the Executive's duties, (iii) information the
                  disclosure of which the Executive in good faith deems
                  necessary in defense of the Executive's rights provided such
                  disclosure by the Executive is limited to only disclose as
                  necessary for such purpose, or (iv) information disclosed by
                  the Executive to comply with a court, or other lawful
                  compulsory, order compelling him to do so, provided the
                  Executive gives the Company prompt notice of the receipt of
                  such order and the disclosure by the Executive is limited to
                  only disclosure necessary for such purpose.

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

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

                  9.6      REMEDIES.

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

                                       14
<PAGE>   15

                  information.

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

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

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

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

                  9.9 NONDISPARAGEMENT.

         (a)      During the Employment Term and thereafter, the Executive shall
                  not with willful intent to damage economically or as to
                  reputation or vindictively disparage the Company, its
                  subsidiaries or their respective past or present officers,
                  directors or employees (the "Protected Group"), provided that
                  the foregoing shall not apply to (i) actions or statements
                  taken or made by the Executive while employed by the Company
                  in good faith as fulfilling the Executive's duties with the
                  Company or otherwise at the request of the Company, (ii)
                  truthful statements made in compliance with legal process or
                  governmental inquiry, (iii) as the Executive in good faith
                  deems necessary to rebut any untrue or misleading public
                  statements made about him or any other member of the Protected
                  Group, (iv) statements made in good faith by the Executive to
                  rebut untrue or misleading statements

                                       15
<PAGE>   16

                  made about him or any other member of the Protected Group by
                  any member of the Protected Group, and (v) normal commercial
                  puffery in a competitive business situation. No member of the
                  Protected Group shall be a third party beneficiary of this
                  Section 9.9(a).

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

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

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

100      LIABILITY INSURANCE

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

110      ASSIGNMENT

                                       16
<PAGE>   17

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

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

120      LEGAL REMEDIES

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

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

                                       17
<PAGE>   18

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

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

130      MISCELLANEOUS

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

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

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

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

                                       18
<PAGE>   19

constitute one and the same Agreement.

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

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

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

140      GOVERNING LAW

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

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

                                              ----------------------------------

                                              TEXTRON INC.

                                              By:-------------------------------
                                                 Name:
                                                 Title:

                                       19
<PAGE>   20

                                    EXHIBIT A
                                    ---------
                               PARACHUTE GROSS UP
                               ------------------

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

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

          (c) For purposes of determining the amount of the Gross-up Payment,
the Executive shall be deemed to pay U.S. federal income taxes at the highest
marginal rate of U.S. federal income taxation in the calendar year in which the
Gross-up Payment is to be made and state and local income taxes at the highest
marginal rate of taxation in the state and locality of the Executive's residence
for the calendar year in which the Company Payment is to be made, net of the
maximum reduction in U.S. federal income taxes which could be obtained from
deduction of such state and local taxes if paid in such year. In the event that
the Excise Tax is subsequently determined by the Accountants to be less than the
amount taken into account hereunder at the time the Gross-up Payment is made,
the Executive shall repay to the Company, at the time that the amount of such
reduction in Excise Tax is finally determined, the portion of the prior Gross-up
Payment attributable to such reduction (plus the portion of the Gross-up

<PAGE>   21

Payment attributable to the Excise Tax and U.S. federal, state and local income
tax imposed on the portion of the Gross-up Payment being repaid by the Executive
if such repayment results in a reduction in Excise Tax or a U.S. federal, state
and local income tax deduction), plus interest on the amount of such repayment
at the rate provided in Section 1274(b)(2)(B) of the Code. Notwithstanding the
foregoing, in the event any portion of the Gross-up Payment to be refunded to
the Company has been paid to any U.S. federal, state and local tax authority,
repayment thereof (and related amounts) shall not be required until actual
refund or credit of such portion has been made to the Executive, and interest
payable to the Company shall not exceed the interest received or credited to the
Executive by such tax authority for the period it held such portion. The
Executive and the Company shall mutually agree upon the course of action to be
pursued (and the method of allocating the expense thereof) if the Executive's
claim for refund or credit is denied.

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

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

                                       2
<PAGE>   22

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

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

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

                                       3
<PAGE>   23
                                                                    Attachment A
                                 John A. Janitz
                             Restricted Stock Awards
                                  June 1, 1999

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

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

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

<PAGE>   24

                                                                    Attachment A

Page 2

                               "CHANGE IN CONTROL"
                               -------------------
A "Change in Control" of the Company shall be deemed to have occurred as of the
first day any one or more of the following conditions shall have been satisfied:

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

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

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

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

<PAGE>   25

                                    EXHIBIT B

                                 John A. Janitz
                             Restricted Stock Awards
                                  June 1, 1999

The Board of Directors approved an award of 120,000 shares of restricted stock
to John A. Janitz (the "Executive") under the 1999 Long-Term Incentive Plan.
These awards replace the 48,000 share equivalents retention awards previously
awarded. The terms of the awards are as follows:

*    The Executive will be granted restricted shares of Textron common stock
     provided he is still employed by Textron in accordance with the following
     schedule and EPS from continuing operations increases at an average annual
     growth rate of 8% or more over the vesting period using 1998 EPS of $2.68
     as the base amount.

           RESTRICTED SHARES           VESTING DATES
           -----------------           ----------------
             30,000                    October 25, 2000   (58th birthday)
             30,000                    October 25, 2004   (62nd birthday)
             15,000                    October 25, 2005   (63rd birthday)
             15,000                    October 25, 2006   (64th birthday)
             30,000                    October 25, 2007   (65th birthday)

*    Textron shall retain the certificates representing the shares of restricted
     stock in its possession until such time as all restrictions applicable to
     such shares have lapsed.

*    Except as otherwise provided herein, the Executive shall not be entitled to
     receive the restricted shares if the EPS performance objective for the
     respective shares is not achieved or if his employment with Textron ends
     for any reason prior to the respective vesting date, provided that if the
     Executive's employment ends prior to such date because of his death,
     "Disability" (Attachment A), his involuntary termination by Textron without
     "Cause" (Attachment A) or by the Executive for "Good Reason" (Attachment
     A), the shares shall immediately become fully vested. In the event of such
     termination, the shares shall be issued within 30 days following
     termination of employment.

*    Notwithstanding the above, all unvested shares shall immediately vest upon
     a "Change in Control" (Attachment A).

*    Effective June 1, 1999 dividends shall be credited to the Executive and
     such dividends are to be accounted for as if reinvested in actual Textron
     common stock. Such dividends will vest immediately but payment will be
     deferred until the earlier of the restricted shares vest date or
     termination of employment.

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

*    With respect to withholding required upon the lapse of restrictions on the
     restricted stock, the Executive may elect, subject to the approval of the
     Board, to satisfy the withholding requirement, in whole or in part, by
     having Textron withhold shares having a fair market value on the date the
     tax is to be determined equal to the minimum statutory total tax which
     could be imposed on the transaction. Such election shall be irrevocable,
     made in writing, signed by the Executive, and shall be subject to any
     restrictions or limitations that the Board in its sole discretion, deems
     appropriate.

------------------------                       --------------
     John D. Butler                                 Date

<PAGE>   26

                                                                   November 1998
                                    EXHIBIT C

                                 John A. Janitz
                           Special Pension Arrangement

The provisions of the Executive Supplemental Retirement Plan provide for the
following vesting schedule:

                  AGE AT RETIREMENT                  % OF BENEFIT
                  -----------------                  ------------
                         65                          100
                         64                          90
                         63                          80
                         62                          70
                         61                          60
                         60                          50
                    Less than 60                     0

The O & C Committee has the authority to use its discretion to provide an
enhanced benefit.

There is full vesting upon a change in control of Textron Inc. The O & C
Committee approved a modification to the definition of change in control to
include the sale of a segment.

                               Special Arrangement

The following special pension arrangement was approved by the O & C Committee to
amend the Executive Supplemental Retirement Plan vesting schedule:

         If John A. Janitz (the "Executive") is involuntarily terminated other
         than for "cause" (as defined in Attachment A) before age 60, the
         Executive will receive a pension benefit equal to 25% of the full
         benefit (12 1/2% of eligible compensation) under the Executive
         Supplemental Retirement Plan.

In such instance, the benefit will be calculated as follows:

*        1996 Compensation will be excluded from the average pay calculation

*        1997 will be the first year included in the average pay calculation

*        Average pay will be the greater of:

               (1) Eligible compensation for each full and partial calendar year
                   divided by the number of full and partial years, or

               (2) Eligible compensation for each full calendar year divided by
                   the number of full calendar years.

               --------------------------         ------------
                     John D. Butler                   Date<PAGE>   1
                                                                   EXHIBIT 10.15

                    CHANGE OF CONTROL AND SEVERANCE AGREEMENT

AGREEMENT by and between NASHUA CORPORATION, a Delaware corporation (the
"Company") and DONNA J. DIGIOVINE (the "Executive"), dated as of the 25th day of
February, 2000.

RECITALS:

WHEREAS, the Board of Directors of the Company (the "Board"), has determined
that it is in the best interests of the Company and its shareholders to assure
that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control (as
defined below) of the Company or other reasons of uncertainty;

WHEREAS, the Board believes it is imperative to diminish the inevitable
distraction of the Executive by virtue of the personal uncertainties and risks
created by a pending or threatened Change of Control and business concerns and
to encourage the Executive's full attention and dedication to the Company; and

WHEREAS, in order to accomplish these objectives, the Board believes it is in
the best interests of the Company to enter into this Agreement.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.   CERTAIN DEFINITIONS.

     (a)  The "Effective Date" shall be the first date during the "Change of
          Control Period" (as defined in Section 1(b)) on which a Change of
          Control occurs. Anything in this Agreement to the contrary
          notwithstanding, if the Executive's employment with the Company is
          terminated or the Executive ceases to be an officer of the Company
          prior to the date on which a Change of Control occurs, and it is
          reasonably demonstrated that such termination of employment (1) was at
          the request of a third party who has taken steps reasonably calculated
          to effect the Change of Control or (2) otherwise arose in connection
          with or anticipation of the Change of Control, then for all purposes
          of this Agreement the "Effective Date" shall mean the date immediately
          prior to the date of such termination of employment.

     (b)  The "Change of Control Period" is the period commencing on the date
          hereof and ending on the third anniversary of such date; provided,
          however, that commencing on the date one year after the date hereof,
          and on each annual anniversary of such date (such date and each annual
          anniversary thereof is hereinafter referred to as the "Renewal Date"),
          the Change of Control Period shall be automatically extended so as to
          terminate three years from such Renewal Date, unless at least 60 days
          prior to the Renewal Date the Company shall give notice to the
          Executive that the Change of Control Period shall not be so extended.

<PAGE>   2

                                      -2-

2. CHANGE OF CONTROL. For the purpose of this Agreement, a "Change of Control"
shall mean:

     (a)  The acquisition, other than from the Company,  by any individual,
          entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of
          the Securities Exchange Act of l934, as amended (the "Exchange Act"))
          of beneficial ownership (within the meaning of Rule 13d-3 promulgated
          under the Exchange Act) (a "Person") of 30% or more of either (i) the
          then outstanding shares of common stock of the Company (the
          "Outstanding Company Common Stock") or (ii) the combined voting power
          of the then outstanding voting securities of the Company entitled to
          vote generally in the election of directors (the "Company Voting
          Securities"), PROVIDED, HOWEVER,that any acquisition by (x) the
          Company or any of its subsidiaries, or any employee benefit plan (or
          related trust) sponsored or maintained by the Company or any of its
          subsidiaries or (y) any corporation with respect to which, following
          such acquisition, more than 60% of, respectively, the then outstanding
          shares of common stock of such corporation and the combined voting
          power of the then outstanding voting securities of such corporation
          entitled to vote generally in the election of directors is then
          beneficially owned, directly or indirectly, by all or substantially
          all of the individuals and entities who were the beneficial owners,
          respectively, of the Outstanding Company Common Stock and Company
          Voting Securities immediately prior to such acquisition in
          substantially the same proportion as their ownership, immediately
          prior to such acquisition, of the Outstanding Company Common Stock and
          Company Voting Securities, as the case may be, shall not constitute a
          Change of Control; or

     (b)  Individuals who, as of the date hereof, constitute  the Board (the
          "Incumbent Board") cease for any reason to constitute at least a
          majority of the Board, provided that any individual becoming a
          director subsequent to the date hereof whose election or nomination
          for election by the Company's shareholders, was approved by a vote of
          at least a majority of the directors then comprising the Incumbent
          Board shall be considered as though such individual were a member of
          the Incumbent Board, but excluding, for this purpose, any such
          individual whose initial assumption of office is in connection with an
          actual or threatened election contest relating to the election of the
          Directors of the Company (as such terms are used in Rule 14a-11 of
          Regulation 14A promulgated under the Exchange Act); or

     (c)  Approval by the shareholders of the Company of a reorganization,
          merger or consolidation (a "Business Combination"), in each case, with
          respect to which all or substantially all of the individuals and
          entities who were the respective beneficial owners of the Outstanding
          Company Common Stock and Company Voting Securities immediately prior
          to such Business Combination do not, following such Business
          Combination, beneficially own, directly or indirectly, more than 60%
          of, respectively, the then outstanding shares of common stock and the
          combined voting power of the then outstanding voting securities
          entitled to vote generally in the election of directors, as the case
          may be, of the corporation resulting from Business Combination in
          substantially the same proportion as their ownership immediately prior
          to such Business Combination of the Outstanding Company Common Stock
          and Company Voting Securities, as the case may be; or

     (d)  (i) a complete liquidation or dissolution of the Company or of (ii)
          sale or other disposition of all or substantially all of the assets of
          the Company other than to a corporation with respect to which,
          following such sale or disposition, more than 60%

<PAGE>   3

                                      -3-

          of, respectively, the then outstanding shares of common stock and the
          combined voting power of the then outstanding voting securities
          entitled to vote generally in the election of directors is then owned
          beneficially, directly or indirectly, by all or substantially all of
          the individuals and entities who were the beneficial owners,
          respectively, of the Outstanding Company Common Stock and Company
          Voting Securities immediately prior to such sale or disposition in
          substantially the same proportion as their ownership of the
          Outstanding Company Common Stock and Company Voting Securities, as the
          case may be, immediately prior to such sale or disposition.

3.   EMPLOYMENT PERIOD. The Company hereby agrees to continue the Executive in
     its employ, and the Executive hereby agrees to remain in the employ of the
     Company, for the period commencing on the Effective Date and ending on the
     third anniversary of such date (the "Employment Period").

4.   TERMS OF EMPLOYMENT.

     (a)  POSITION AND DUTIES.

          (i)     During the Employment Period, (A) the Executive's position
                  (including status, offices, titles and reporting
                  requirements), authority, duties and responsibilities shall be
                  at least commensurate in all material respects with the most
                  significant of those held, exercised and assigned at any time
                  during the 90-day period immediately preceding the Effective
                  Date and (B) the Executive's services shall be performed at
                  the location where the Executive was employed immediately
                  preceding the Effective Date or any office or location less
                  than 35 miles from such location.

          (ii)    During the Employment Period, and excluding any periods of
                  vacation and sick leave to which the Executive is entitled,
                  the Executive agrees to devote reasonable attention and time
                  during normal business hours to the business and affairs of
                  the Company and, to the extent necessary to discharge the
                  responsibilities assigned to the Executive hereunder, to use
                  the Executive's reasonable best efforts to perform faithfully
                  and efficiently such responsibilities. During the Employment
                  Period it shall not be a violation of this Agreement for the
                  Executive to (A) serve on corporate, civic or charitable
                  boards or committees, (B) deliver lectures, fulfill speaking
                  engagements or teach at educational institutions and (C)
                  manage personal investments, so long as such activities do not
                  significantly interfere with the performance of the
                  Executive's responsibilities as an employee of the Company in
                  accordance with this Agreement. It is expressly understood and
                  agreed that to the extent that any such activities have been
                  conducted by the Executive prior to the Effective Date, the
                  continued conduct of such activities (or the conduct of
                  activities similar in nature and scope thereto) subsequent to
                  the Effective Date shall not thereafter be deemed to interfere
                  with the performance of the Executive's responsibilities to
                  the Company.

<PAGE>   4

                                      -4-

     (b)  COMPENSATION.

          (i)     BASE SALARY. During the Employment Period, the Executive shall
                  receive an annual base salary ("Annual Base Salary"), which
                  shall be paid at a monthly rate, at least equal to twelve
                  times the highest monthly base salary paid or payable to the
                  Executive by the Company and its affiliated companies in
                  respect of the twelve-month period immediately preceding the
                  month in which the Effective Date occurs. During the
                  Employment Period, the Annual Base Salary shall be reviewed at
                  least annually and shall be increased at any time and from
                  time to time as shall be substantially consistent with
                  increases in base salary awarded in the ordinary course of
                  business to other peer executives of the Company and its
                  affiliated companies. Any increase in Annual Base Salary shall
                  not serve to limit or reduce any other obligation to the
                  Executive under this Agreement. Annual Base Salary shall not
                  be reduced after any such increase and the term Annual Base
                  Salary as utilized in this Agreement shall refer to Annual
                  Base Salary as so increased. As used in this Agreement, the
                  term "affiliated companies" includes any company controlled
                  by, controlling or under common control with the Company.

          (ii)    ANNUAL BONUS. In addition to Annual Base Salary, the Executive
                  shall be awarded, for each fiscal year beginning or ending
                  during the Employment Period, an annual bonus (the "Annual
                  Bonus") in cash at least equal to the average bonus paid or
                  payable, including by reason of deferral, to the Executive by
                  the Company and its affiliated companies in respect of the
                  three fiscal years immediately preceding the fiscal year in
                  which the Effective Date occurs (annualized for any fiscal
                  year during the Employment Period consisting of less than
                  twelve full months or with respect to which the Executive has
                  been employed by the Company for less than twelve full months)
                  (the "Recent Annual Bonus"). Each such Annual Bonus shall be
                  paid no later than the end of the third month of the fiscal
                  year next following the fiscal year for which the Annual Bonus
                  is awarded, unless the Executive shall elect to defer the
                  receipt of such Annual Bonus.

          (iii)   INCENTIVE, SAVINGS AND RETIREMENT PLANS. In addition to Annual
                  Base Salary and Annual Bonus payable as hereinabove provided,
                  the Executive shall be entitled to participate during the
                  Employment Period in all incentive, savings and retirement
                  plans, practices, policies and programs applicable generally
                  to other peer executives of the Company and its affiliated
                  companies, but in no event shall such plans, practices,
                  policies and programs provide the Executive with incentive,
                  savings and retirement benefit opportunities, in each case,
                  less favorable, in the aggregate, than (x) the most favorable
                  of those provided by the Company and its affiliated companies
                  for the Executive under such plans, practices, policies and
                  programs as in effect at any time during the 90-day period
                  immediately preceding the Effective Date or (y) if more
                  favorable to the Executive, those provided at any time after
                  the Effective Date to other peer executives of the Company and
                  its affiliated companies.

<PAGE>   5

                                      -5-

          (iv)    WELFARE BENEFIT PLANS. During the Employment Period, the
                  Executive and/or the Executive's family, as the case may be,
                  shall be eligible for participation in and shall receive all
                  benefits under welfare benefit plans, practices, policies and
                  programs provided by the Company and its affiliated companies
                  (including, without limitation, medical, prescription, dental,
                  disability, salary continuance, employee life, group life,
                  accidental death and travel accident insurance plans and
                  programs) to the extent generally applicable to other peer
                  executives of the Company and its affiliated companies, but in
                  no event shall such plans, practices, policies and programs
                  provide the Executive with benefits which are less favorable,
                  in the aggregate, than (x) the most favorable of such plans,
                  practices, policies and programs in effect for the Executive
                  at any time during the 90-day period immediately preceding the
                  Effective Date or (y) if more favorable to the Executive,
                  those provided at any time after the Effective Date generally
                  to other peer executives of the Company and its affiliated
                  companies.

          (v)     EXPENSES. During the Employment Period, the Executive shall be
                  entitled to receive prompt reimbursement for all reasonable
                  expenses incurred by the Executive in accordance with the most
                  favorable policies, practices and procedures of the Company
                  and its affiliated companies in effect for the Executive at
                  any time during the 90-day period immediately preceding the
                  Effective Date or, if more favorable to the Executive, as in
                  effect generally at any time thereafter with respect to other
                  peer executives of the Company and its affiliated companies.

          (vi)    FRINGE BENEFITS. During the Employment Period, the Executive
                  shall be entitled to fringe benefits in accordance with the
                  most favorable plans, practices, programs and policies of the
                  Company and its affiliated companies in effect for the
                  Executive at any time during the 90-day period immediately
                  preceding the Effective Date or, if more favorable to the
                  Executive, as in effect generally at any time thereafter with
                  respect to other peer executives of the Company and its
                  affiliated companies.

          (vii)   OFFICE AND SUPPORT STAFF. During the Employment Period, the
                  Executive shall be entitled to an office or offices of a size
                  and with furnishings and other appointments, and to exclusive
                  personal secretarial and other assistance, at least equal to
                  the most favorable of the foregoing provided to the Executive
                  by the Company and its affiliated companies at any time during
                  the 90-day period immediately preceding the Effective Date or,
                  if more favorable to the Executive, as provided generally at
                  any time thereafter with respect to other peer executives of
                  the Company and its affiliated companies.

          (viii)  VACATION. During the Employment Period, the Executive shall be
                  entitled to paid vacation in accordance with the most
                  favorable plans, policies, programs and practices of the
                  Company and its affiliated companies as in effect at any time
                  during the 90-day period immediately preceding the Effective
                  Date or, if more favorable to the Executive, as in effect
                  generally at any time thereafter with respect to other peer
                  incentives of the Company and its affiliated companies.

<PAGE>   6

                                      -6-

5.   TERMINATION OF EMPLOYMENT.

     (a)  DEATH OR DISABILITY. The Executive's employment shall terminate
          automatically upon the Executive's death during the Employment Period.
          If the Company determines in good faith that the Disability of the
          Executive has occurred during the Employment Period (pursuant to the
          definition of Disability set forth below), it may give to the
          Executive written notice in accordance with Section 15(b) of this
          Agreement of its intention to terminate the Executive's employment. In
          such event, the Executive's employment with the Company shall
          terminate effective on the 30th day after receipt of such notice by
          the Executive (the "Disability Effective Date"), provided that, within
          the 30 days after such receipt, the Executive shall not have returned
          to full-time performance of the Executive's duties. For purposes of
          this Agreement, "Disability" means the absence of the Executive from
          the Executive's duties with the Company on a full-time basis for 180
          consecutive business days as a result of incapacity due to mental or
          physical illness which is determined to be total and permanent by a
          physician selected by the Company or its insurers and acceptable to
          the Executive or Executive's legal representative (such agreement as
          to acceptability not to be withheld unreasonably).

     (b)  CAUSE. The Company may terminate the Executive's employment during the
          Employment Period for Cause. For purposes of this Agreement, "Cause"
          means (i) an action taken by the Executive involving willful and
          wanton malfeasance involving specifically a wholly wrongful and
          unlawful act, or (ii) the Executive being convicted of a felony.

     (c)  GOOD REASON. The Executive's employment may be terminated during the
          Employment Period by the Executive for Good Reason. For purposes of
          this Agreement, "Good Reason" means:

          (i)     the assignment to the Executive of any duties  inconsistent in
                  any respect with the Executive's position (including status,
                  offices, titles and reporting requirements), authority, duties
                  or responsibilities as contemplated by Section 4(a) of this
                  Agreement, or any other action by the Company which results in
                  a diminution in such position, authority, duties or
                  responsibilities, excluding for this purpose an isolated,
                  insubstantial and inadvertent action not taken in bad faith
                  and which is remedied by the Company promptly after receipt of
                  notice thereof given by the Executive;

          (ii)    any failure by the Company to comply with any of the
                  provisions of Section 4(b) of this Agreement, other than an
                  isolated, insubstantial and inadvertent failure not occurring
                  in bad faith and which is remedied by the Company promptly
                  after receipt of notice thereof given by the Executive;

          (iii)   the Company's requiring the Executive to be based at any
                  office or location other than that described in Section
                  4(a)(i)(B) hereof;

          (iv)    any purported termination by the Company of the Executive's
                  employment otherwise than as expressly permitted by this
                  Agreement; or

<PAGE>   7

                                      -7-

          (v)     any failure by the Company to comply with and satisfy Section
                  14(c) of this Agreement.

          For purposes of this Agreement, any good faith determination of Good
          Reason made by the Executive shall be conclusive.

     (d)  NOTICE OF TERMINATION. Any termination by the Company for Cause or by
          the Executive for Good Reason shall be communicated by Notice of
          Termination to the other party hereto given in accordance with Section
          15(b) of this Agreement. For purposes of this Agreement, a "Notice of
          Termination" means a written notice which (i) indicates the specific
          termination provision in this Agreement relied upon, (ii) to the
          extent applicable sets forth in reasonable detail the facts and
          circumstances claimed to provide a basis for termination of the
          Executive's employment under the provision so indicated and (iii) if
          the Date of Termination (as defined below) is other than the date of
          receipt of such notice, specifies the termination date (which date
          shall be not more than fifteen days after the giving of such notice).
          In the case of a termination of the Executive's employment for Cause,
          a Notice of Termination shall include a copy of a resolution duly
          adopted by the affirmative vote of not less than two-thirds of the
          entire membership of the Board at a meeting of the Board called and
          held for the purpose (after reasonable notice to the Executive and
          reasonable opportunity for the Executive, together with the
          Executive's counsel, to be heard before the Board prior to such vote),
          finding that in the good faith opinion of the Board the Executive was
          guilty of conduct constituting Cause. No purported termination of the
          Executive's employment for Cause shall be effective without a Notice
          of Termination. The failure by the Executive to set forth in the
          Notice of Termination any fact or circumstance which contributes to a
          showing of Good Reason shall not waive any right of the Executive
          hereunder or preclude the Executive from asserting such fact or
          circumstance in enforcing the Executive's rights hereunder.

     (e)  DATE OF TERMINATION. "Date of Termination" means the date of receipt
          of the Notice of Termination or any later date specified therein, as
          the case may be; provided, however, that (i) if the Executive's
          employment is terminated by the Company other than for Cause or
          Disability, the Date of Termination shall be the date on which the
          Company notifies the Executive of such termination and (ii) if the
          Executive's employment is terminated by reason of death or Disability,
          the Date of Termination shall be the date of death of the Executive or
          the Disability Effective Date, as the case may be.

6. OBLIGATIONS OF THE COMPANY UPON TERMINATION.

     (a)  DEATH. If the Executive's employment is terminated by reason of the
          Executive's death during the Employment Period, this Agreement shall
          terminate without further obligations to the Executive's legal
          representatives under this Agreement, other than the following
          obligations: (i) payment of the Executive's Annual Base Salary through
          the Date of Termination to the extent not theretofore paid, (ii)
          payment of the product of (x) the greater of (A) the Annual Bonus paid
          or payable, including by reason of deferral, (and annualized for any
          fiscal year consisting of less than twelve full months or for which
          the Executive has been employed for less than twelve full months) for
          the most recently completed fiscal year during the Employment Period,
          if any, and (B) the Recent Annual Bonus (such greater amount hereafter
          referred to as the "Highest Annual Bonus") and (y) a fraction, the
          numerator of which is the number of days in the current fiscal year
          through the Date of Termination, and the denominator of which is 365
          and

<PAGE>   8

                                      -8-

          (iii) payment of any compensation previously deferred by the Executive
          (together with any accrued interest thereon) and not yet paid by the
          Company and any accrued vacation pay not yet paid by the Company (the
          amounts described in paragraphs (i), (ii) and (iii) are hereafter
          referred to as "Accrued Obligations"). All Accrued Obligations shall
          be paid to the Executive's estate or beneficiary, as applicable, in a
          lump sum in cash within 30 days of the Date of Termination. In
          addition, the Executive's estate or designated beneficiaries shall be
          entitled to receive the Executive's Annual Base Salary for the balance
          of the Employment Period; PROVIDED, HOWEVER, that such payments of
          Annual Base Salary shall be reduced by any survivor benefits paid to
          the Executive's estate or designated beneficiary under the Retirement
          Plan. Anything in this Agreement to the contrary notwithstanding, the
          Executive's estate and family shall be entitled to receive benefits at
          least equal to the most favorable benefits provided generally by the
          Company and any of its affiliated companies to the estates and
          surviving families of peer executives of the Company and such
          affiliated companies under such plans, programs, practices and
          policies relating to death benefits, if any, as in effect generally
          with respect to other peer executives and their estates and families
          at any time during the 90-day period immediately preceding the
          Effective Date or, if more favorable to the Executive and/or the
          Executive's family, as in effect on the date of the Executive's death
          generally with respect to other peer executives of the Company and its
          affiliated companies and their families.

     (b)  DISABILITY. If the Executive's employment is terminated by reason of
          the Executive's Disability during the Employment Period, this
          Agreement shall terminate without further obligations to the
          Executive, other than for Accrued Obligations. All Accrued Obligations
          shall be paid to the Executive in a lump sum in cash within 30 days of
          the Date of Termination. In addition, the Executive shall be entitled
          to receive the Executive's Annual Base Salary for the balance of the
          Employment Period; PROVIDED, HOWEVER, that such payments of Annual
          Base Salary shall be reduced by any benefits paid to the Executive
          under the Retirement Plan by reason of Disability. Anything in this
          Agreement to the contrary notwithstanding, the Executive shall be
          entitled after the Disability Effective Date to receive disability and
          other benefits at least equal to the most favorable of those generally
          provided by the Company and its affiliated companies to disabled
          executives and/or their families in accordance with such plans,
          programs, practices and policies relating to disability, if any, as in
          effect generally with respect to other peer executives and their
          families at any time during the 90-day period immediately preceding
          the Effective Date or, if more favorable to the Executive and/or the
          Executive's family, as in effect at any time thereafter generally with
          respect to other peer executives of the Company and its affiliated
          companies and their families.

     (c)  CAUSE; OTHER THAN FOR GOOD REASON. If the Executive's employment shall
          be terminated for Cause during the Employment Period, this Agreement
          shall terminate without further obligations to the Executive other
          than the obligation to pay to the Executive Annual Base Salary through
          the Date of Termination plus the amount of any compensation previously
          deferred by the Executive, in each case to the extent theretofore
          unpaid. If the Executive terminates employment during the Employment
          Period other than for Good Reason, this Agreement shall terminate
          without further obligations to the Executive, other than for Accrued
          Obligations. In such case, all Accrued Obligations shall be paid to
          the Executive in a lump sum in cash within 30 days of the Date of
          Termination.

<PAGE>   9

                                      -9-

     (d)  GOOD REASON; OTHER THAN FOR CAUSE OR DISABILITY. If, during the
          Employment Period, the Company shall terminate the Executive's
          employment other than for Cause or Disability, or the Executive shall
          terminate employment during the Employment Period for Good Reason, the
          Company shall pay to the Executive in a lump sum in cash within 60
          days after the Date of Termination, and subject to receiving an
          executed irrevocable Release as described in Section 11, the aggregate
          of the following amounts:

          A.      all Accrued Obligations; and

          B.      the  product of (x) three and (y) the sum of (i) Annual Base
                  Salary and (ii) the Highest Annual Bonus; and

          C.      a lump-sum retirement benefit equal to the difference between
                  (a) the actuarial equivalent of the benefit under the Nashua
                  Corporation Retirement Plan for Salaried Employees (the
                  "Retirement Plan") and any supplemental and/or excess
                  retirement plan providing benefits for the Executive (the
                  "SERP") which the Executive would receive if the Executive's
                  employment continued at the compensation level provided for in
                  Sections 4(b)(i) and 4(b)(ii) of this Agreement for the
                  remainder of the Employment Period, assuming for this purpose
                  that all accrued benefits are fully vested, and (b) the
                  actuarial equivalent of the Executive's actual benefit (paid
                  or payable), if any, under the Retirement Plan and the SERP;
                  for purposes of determining the amount payable pursuant to
                  this Section 6(d)(i)C the accrual formulas and actuarial
                  assumptions utilized shall be no less favorable than those in
                  effect with respect to the Retirement Plan and the SERP during
                  the 90-day period immediately prior to the Effective Date.

          In addition, for the remainder of the Employment Period (if the
          termination took place during the Employment Period under this Section
          6), the Company shall continue benefits to the Executive and/or the
          Executive's family at least equal to those which would have been
          provided to them in accordance with the plans, programs, practices and
          policies described in Section 4(b)(iv) of this Agreement if the
          Executive's employment had not been terminated in accordance with the
          most favorable plans, practices, programs or policies of the Company
          and its affiliated companies applicable generally to other peer
          executives and their families during the 90-day period immediately
          preceding the Effective Date or, if more favorable to the Executive,
          as in effect generally at any time thereafter with respect to other
          peer executives of the Company and its affiliated companies and their
          families. For purposes of determining eligibility of the Executive for
          retiree benefits pursuant to such plans, practices, programs and
          policies, the Executive shall be considered to have remained employed
          until the end of the Employment Period and to have retired on the last
          day of such period.

          Notwithstanding the foregoing, if a Change of Control shall have
          occurred before the Date of Termination, the aggregate amount of
          "parachute payments", as defined in Section 280G of the Internal
          Revenue Code of 1986, as amended from time to time (the "Code")
          payable to the Executive pursuant to all arrangements with the Company
          shall not exceed one dollar less than three times the Executive's
          "base amount", as defined in Section 280G of the Code (the "cut back
          amount"); provided, however, that if Executive would be better off by
          at least $25,000 on an after-tax basis by receiving the full amount of
          the parachute payments as opposed to the cut back amount

<PAGE>   10

                                      -10-

          (notwithstanding a 20% excise tax) the Executive shall receive the
          full amount of the parachute payments.

7.   SEVERANCE BENEFITS. Notwithstanding anything contained in this Agreement to
     the contrary, if, before or after the Employment Period, the Executive's
     employment is terminated by the Company for reason other than misconduct,
     the Company shall pay to the Executive one year's salary continuation and
     continue medical and dental benefits during such continuation period.

8.   NON-EXCLUSIVITY OF RIGHTS. Nothing in this Agreement shall prevent or
     limit the Executive's continuing or future participation in any benefit,
     bonus, incentive or other plans, programs, policies or practices, provided
     by the Company or any of its affiliated companies and for which the
     Executive may qualify, nor shall anything herein limit or otherwise affect
     such rights as the Executive may have under any other agreements with the
     Company or any of its affiliated companies. Amounts which are vested
     benefits or which the Executive is otherwise entitled to receive under any
     plan, policy, practice or program of the Company or any of its affiliated
     companies at or subsequent to the Date of Termination shall be payable in
     accordance with such plan, policy, practice or program except as explicitly
     modified by this Agreement.

9.   FULL SETTLEMENT. The Company's obligation to make the payments provided for
     in this Agreement and otherwise to perform its obligations hereunder shall
     not be affected by any set-off, counterclaim, recoupment, defense or other
     claim, right or action which the Company may have against the Executive or
     others. In no event shall the Executive be obligated to seek other
     employment or take any other action by way of mitigation of the amounts
     payable to the Executive under any of the provisions of this Agreement. The
     Company agrees to pay, to the full extent permitted by law, all legal fees
     and expenses which the Executive may reasonably incur as a result of any
     contest (regardless of the outcome thereof) by the Company, the Executive
     or others of the validity or enforceability of, or liability under, any
     provision of this Agreement or any guarantee of performance thereof, plus
     in each case interest at the applicable Federal rate provided for in
     Section 7872(f)(2) of the Internal Revenue Code of l986, as amended (the
     "Code").

10.  OTHER AGREEMENTS. The parties agree that this Agreement supersedes and
     replaces any and all other agreements, policies, understandings or letters
     (including but not limited to employment agreements, severance agreements
     and job abolishment policies) between the parties related to the subject
     matter hereof.

11.  RELEASE. Prior to receipt of the payment described in Sections 6(d) or 7,
     the Executive shall execute and deliver a Release to the Company as
     follows:

          The Executive hereby fully, forever, irrevocably and unconditionally
          releases, remises and discharges the Company, its officers, directors,
          stockholders, corporate affiliates, agents and employees from any and
          all claims, charges, complaints, demands, actions, causes of action,
          suits, rights, debts, sums of money, costs, accounts, reckonings,
          covenants, contracts, agreements, promises, doings, omissions,
          damages, executions, obligations, liabilities and expenses (including
          attorneys' fees and costs), of every kind and nature which he ever had
          or now has against the Company, its officers, directors, stockholders,
          corporate affiliates, agents and employees, including, but not limited
          to, all claims arising out of his employment, all employment
          discrimination claims under Title VII of the Civil Rights Act of 1964,
          42 U.S.C. '2000e ET SEQ., the Age Discrimination in Employment Act, 29
          U.S.C., '621 ET SEQ., the Americans With Disabilities Act, 42 U.S.C.,
          '12101 ET SEQ., the New Hampshire Law Against Discrimination, N.H.
          Rev. Stat. Ann. '354-A:1 ET SEQ. and similar state

<PAGE>   11

                                      -11-

          antidiscrimination laws, damages arising out of all employment
          discrimination claims, wrongful discharge claims or other common law
          claims and damages, provided, however, that nothing herein shall
          release the Company from Executive's Stock Option Agreements or
          Restricted Stock Agreements. The Release shall also contain, at a
          minimum, the following language:

                  The Executive acknowledges that he has been given twenty-one
                  (21) days to consider the terms of this Release and that the
                  Company advised him to consult with an attorney of his own
                  choosing prior to signing this Release. The Executive may
                  revoke this Release for a period of seven (7) days after the
                  execution of the Release and the Release shall not be
                  effective or enforceable until the expiration of this seven
                  (7) day revocation period.

     At the same time, the Company shall execute and deliver a Release to the
     Executive as follows:

          The Company hereby fully, forever, irrevocably and unconditionally
          releases, remises and discharges the Executive from any and all claims
          which it ever had or now has against the Executive, other than for
          intentional harmful acts.

12.  CONFIDENTIAL INFORMATION. The Executive shall hold in a fiduciary capacity
     for the benefit of the Company all secret or confidential information,
     knowledge or data relating to the Company or any of its affiliated
     companies, and their respective businesses, which shall have been obtained
     by the Executive during the Executive's employment by the Company or any of
     its affiliated companies and which shall not be or become public knowledge
     (other than by acts by the Executive or representatives of the Executive in
     violation of this Agreement). After termination of the Executive's
     employment with the Company, the Executive shall not, without the prior
     written consent of the Company, communicate or divulge any such
     information, knowledge or data to anyone other than the Company and those
     designated by it. In no event shall an asserted violation of the provisions
     of this Section 12 constitute a basis for deferring or withholding any
     amounts otherwise payable to the Executive under this Agreement.

13.  ARBITRATION. Any controversy or claim arising out of this Agreement shall
     be settled by binding arbitration in accordance with the commercial rules,
     policies and procedures of the American Arbitration Association. Judgment
     upon any award rendered by the arbitrator may be entered in any court of
     law having jurisdiction thereof. Arbitration shall take place in Nashua,
     New Hampshire at a mutually convenient location.

14.  SUCCESSORS.

     (a)  This Agreement is personal to the Executive and without the prior
          written consent of the Company shall not be assignable by the
          Executive otherwise than by will or the laws of descent and
          distribution. This Agreement shall inure to the benefit of and be
          enforceable by the Executive's legal representatives.

     (b)  This Agreement shall inure to the benefit of and be binding upon the
          Company and its successors and assigns.

<PAGE>   12

                                      -12-

     (c)  The Company will require any successor (whether direct or indirect, by
          purchase, merger, consolidation or otherwise) to all or substantially
          all of the business and/or assets of the Company to assume expressly
          and agree to perform this Agreement in the same manner and to the same
          extent that the Company would be required to perform it if no such
          succession had taken place. As used in this Agreement, "Company" shall
          mean the Company as hereinbefore defined and any successor to its
          business and/or assets as aforesaid which assumes and agrees to
          perform this Agreement by operation of law, or otherwise.

15.  MISCELLANEOUS.

     (a)  This Agreement shall be governed by and construed in accordance with
          the laws of the State of Delaware, without reference to principles of
          conflict of laws. The captions of this Agreement are not part of the
          provisions hereof and shall have no force or effect. This Agreement
          may not be amended or modified otherwise than by a written agreement
          executed by the parties hereto or their respective successors and
          legal representatives.

     (b)  All notices and other communications hereunder shall be in writing and
          shall be given by hand delivery to the other party or by registered or
          certified mail, return receipt requested, postage prepaid, addressed
          as follows:

                  IF TO THE EXECUTIVE:

                      Donna J. DiGiovine
                      6 Lakeside Terrace
                      Westford, MA  01886

                  IF TO THE COMPANY:

                      Nashua Corporation
                      44 Franklin Street
                      Nashua, New Hampshire 03064
                      Attention:  President

          or to such other address as either party shall have furnished to the
          other in writing in accordance herewith. Notice and communications
          shall be effective when actually received by the addressee.

     (c)  The invalidity or unenforceability of any provision of this Agreement
          shall not affect the validity or enforceability of any other provision
          of this Agreement.

     (d)  The Company may withhold from any amounts payable under this Agreement
          such Federal, state or local taxes as shall be required to be withheld
          pursuant to any applicable law or regulation.

     (e)  The Executive's failure to insist upon strict compliance with any
          provision hereof or the failure to assert any right the Executive may
          have hereunder, including, without limitation, the right to terminate
          employment for Good Reason pursuant to Section 5(c)(i)-(v), shall not
          be deemed to be a waiver of such provision or right or any other
          provision or right thereof.

<PAGE>   13

                                      -13-

     (f)  This Agreement contains the entire understanding of the Company and
          the Executive with respect to the subject matter hereof. The Executive
          and the Company acknowledge that the employment of the Executive by
          the Company is "at will" and, prior to the Effective Date, both the
          Executive's employment and this Agreement may be terminated by either
          the Company or the Executive at any time. In the event that this
          Agreement is terminated by the Company prior to the Effective Date and
          the Executive remains employed by the Company, the Executive would be
          entitled to the same severance benefits as set forth in Section 7 of
          this Agreement.

IN WITNESS WHEREOF, the Executive has hereunto set the Executive's hand and,
pursuant to the authorization from its Board of Directors, the Company has
caused these presents to be executed in its name on its behalf, all as of the
day and year first above written.

    NASHUA CORPORATION                               EXECUTIVE

By /s/ Gerald G. Garbacz                              /s/ Donna J. Digiovine
   -------------------------------------              ------------------------
   President and Chief Executive Officer              Name: Donna J. DiGiovine

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