Document:

tenoneone.htm

    
      EXHIBIT
10.1

    

     

    AMENDED
AND RESTATED

    EMPLOYMENT
AGREEMENT

     

    THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT is entered into as of this 26th day of
February, 2008, by and between Textron Inc. (the “Company”), a Delaware
corporation having its principal office at 40 Westminster Street, Providence,
Rhode Island 02903 and Kenneth C. Bohlen (the “Executive”).

     

    W I T N E
S S E T H:

     

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

     

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

     

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

     

    
      	
              1.  

            	
              Term
      of Employment

            

    

     

    The
Company hereby agrees to employ the Executive and the Executive hereby accepts
employment, in accordance with the terms and conditions set forth herein, for a
term (the “Employment Term”) commencing on July 18, 2000 (the “Effective Date”)
and terminating, unless otherwise terminated earlier in accordance with Section
5 hereof, on the third anniversary of the Effective Date, 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 then Additional Term, the Company or the Executive has notified the other in
writing that the Employment Term shall terminate at the end of the then current
term.

     

    
      	
              2.  

            	
              Position
      and Responsibilities

            

    

     

    During
the Employment Term, the Executive shall serve as the Executive Vice President
and Chief Innovation Officer of the Company or in such higher capacity as agreed
by the Company and the Executive.  The Executive shall report
exclusively to the Chief Executive Officer and the Board of Directors of the
Company (the “Board”). The Executive shall, to the extent appointed or elected,
serve on the Board as a director and as a member of any committee of the Board,
in each case, without additional compensation. The Executive shall, to the
extent appointed or elected, serve as a director or as a member of any committee
of the board (or the equivalent bodies in a non-corporate subsidiary or
affiliate) of any of the Company’s subsidiaries or affiliates and as an officer
or employee (in a capacity commensurate with his position with the Company) of
any such subsidiaries or affiliates, in all cases, without additional
compensation or benefits and any compensation paid to the Executive, or benefits
provided to the Executive, in such capacities shall be a credit with regard to
the amounts due hereunder from the Company. The Executive shall have duties,
authorities and responsibilities generally commensurate with the

     

    
      
        
        

      

      
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    duties, authorities and responsibilities of persons in similar capacities
in similarly sized companies, subject to the By-laws of the Company the
organizational structure of the Company. The Executive shall devote
substantially all of his business time, attention and energies to the
performance of his duties hereunder, provided the foregoing will not prevent the
Executive from participating in charitable, community or industry affairs, from
managing his and his family’s personal passive investments, and (with the
consent of the Chief Executive Officer or the Organization and Compensation
Committee (or its successor) of the Board (the “O&C Committee”), which
consent will not be unreasonably withheld, conditioned or delayed) serving on
the board of directors of other companies, provided that these activities do not
materially interfere with the performance of his duties hereunder or create a
potential business conflict or the appearance thereof.

     

    
      	
              3.  

            	
              Compensation
      and Benefits

            

    

     

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

     

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

     

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

     

    3.3 Long-Term
Incentives. The Company shall provide the Executive the opportunity to earn
long-term incentive awards under the current equity and cash based plans and
programs or replacements therefore; provided, however, that unless replaced with
Executive’s written consent, Executive shall be entitled to  stock
options and performance share units as previously granted.

     

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

     

    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.

     

    
      
        
        

      

      
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    3.6 Perquisites.  The
Executive may use the Company’s aircraft for personal travel, including travel
in which the Executive is accompanied by family or other persons traveling for
non-business reasons.  The Executive shall not be required to pay the
cost of personal travel on Company aircraft by the Executive and members of the
Executive’s immediate family (although the cost shall be imputed as income to
the Executive to the extent required by applicable tax laws).  The
Executive shall pay the cost (as reasonably determined by the Company) of any
other person who travels with the Executive for non-business
reasons.  To the extent legally permissible, the Company shall not
treat perquisites provided to the Executive 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 during the Employment Term in performing his duties under this Agreement
including, but not limited to, travel, entertainment, and professional dues and
subscriptions.  To the extent that any reimbursement under this
paragraph would be includable in the Executive’s gross income for federal income
tax purposes, the Executive shall submit the necessary documentation and shall
receive the reimbursement no later than March 15 of the year following the year
in which the expense is incurred.

     

    
      	
              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)  

            	
              Except
      as provided in the following sentence, 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.  If the Executive’s Disability results in a
      “separation from service” within the meaning of Section 409A of the
      Internal Revenue Code of 1986, as amended (the “Code”) (for example,
      because there is no reasonable expectation that the Executive will return
      to perform services for the Company, or because the permitted time period
      under Section 409A for a bona fide leave of absence expires), and if the
      Employment Term has not terminated pursuant to the preceding sentence on
      or before the date of the Executive’s separation from service, the
      Employment Term shall terminate automatically when the separation from
      service occurs, without any requirement for written notice
    by

            

    

     

    
      
        
        

      

      
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              the
      Company.  The term “Disability” shall mean, for purposes of this
      Agreement, the inability of the Executive, due to any medically
      determinable physical or mental impairment, to engage in the performance
      of his material duties of employment with the Company as contemplated by
      Section 2 herein for a period of more than one hundred eighty (180)
      consecutive days or for a period that is reasonably expected to exist for
      a period of more than one hundred eighty (180) consecutive days, provided
      that interim returns to work of less than ten (10) consecutive business
      days in duration shall not be deemed to interfere with a determination of
      consecutive absent days if the reason for absence before and after the
      interim return are the same.  The existence or non-existence of
      a Disability shall be determined by a physician agreed upon in good faith
      by the Executive (or his representatives) and the Company. It is expressly
      understood that the Disability of the Executive for a period of one
      hundred eighty (180) consecutive days or less shall not constitute a
      failure by him to perform his duties hereunder and shall not be deemed a
      breach or default; and, as long as the Executive’s employment has not been
      terminated pursuant to this paragraph, 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,

            

    

     

    
      
        
        

      

      
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              which
      in either case is not remedied within ten (10) days after receipt by the
      Executive of a written notice from the Company specifying the details
      thereof; (vi) the Executive’s conviction of, or pleading nolo contendere
      or guilty to, a felony (other than (x) a traffic infraction or (y)
      vicarious liability solely as a result of his position provided the
      Executive did not have actual knowledge of the actions or inactions
      creating the violation of the law or the Executive relied in good faith on
      the advice of counsel with regard to the legality of such action or
      inaction (or the advice of other specifically qualified professionals as
      to the appropriate or proper action or inaction to take with regard to
      matters which are not matters of legal interpretation)); or (vii) any
      other material breach by the Executive of this Agreement that is not cured
      by the Executive within twenty (20) days after receipt by the Executive of
      a written notice from the Company of such breach specifying the details
      thereof. No action or inaction should be deemed willful if not
      demonstrably willful and if taken or not taken by the Executive in good
      faith as not being adverse to the best interests of the Company. Reference
      in this paragraph (d) to the Company shall also include direct and
      indirect subsidiaries of the Company, and materiality and material adverse
      impact shall be measured based on the action or inaction and the impact
      upon, and not the size of, the Company taken as a whole, provided that
      after a Change in Control, the size of the Company, taken as a whole,
      shall be a relevant factor in determining materiality and material adverse
      impact.

            

    

     

    
      	
              (e)  

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

            

    

     

    
      	
              (f)  

            	
              Upon
      twenty (20) days written notice by the Executive to the Company of a
      termination for Good Reason (which notice sets forth in reasonable detail
      the facts and circumstances claimed to provide a basis for such
      termination) unless the Good Reason event is cured within such twenty (20)
      day period. The term “Good Reason” shall mean, for purposes of this
      Agreement, without the Executive’s express written consent, the occurrence
      of any one or more of the following: (i) the assignment to the Executive
      of duties materially inconsistent with the Executive’s then authorities,
      duties, responsibilities, and status (including offices, titles, and
      reporting requirements), or any reduction in the Executive’s then title,
      position, reporting lines or a material reduction (other than temporarily
      while Disabled or otherwise incapacitated) in his then status,
      authorities, duties, or responsibilities or, if then a director of the
      Company, failure to be nominated or reelected as a director of the Company
      or removal as such; (ii) relocation of the Executive from the principal
      office of the Company (excluding reasonable travel on the Company’s
      business to an extent substantially consistent with the Executive’s
      business obligations) or relocation of the principal office of the Company
      to a location which is at least fifty
(50)

            

    

     

    
      
        
        

      

      
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              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 the effective
      date specified in the Executive’s notice). 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.

            

    

     

    To the extent that any payment would be
made or any benefit would be provided under this Agreement as a result of the
Executive’s termination of employment under paragraph (b), (c), (d), (e), (f),
or (g) of this Section 5, the payment or benefit shall be provided only if the
Executive has also incurred a “separation from service” within the meaning of
Section 409A of the Code; and any timing requirements associated with the
payment or benefit (such as, for example, a requirement that a payment be
delayed for six months following the Executive’s termination) shall be applied
in relation to the date on which the “separation from service” occurs for
purposes of Section 409A.  The preceding sentence shall apply solely
to determine the timing of payments under the Agreement in compliance with
Section 409A.  The Agreement is not intended, and shall not be
construed, to require that the Executive incur a “separation from service”
within the meaning of Section 409A before the Executive or the Company shall
have grounds to terminate the Executive’s employment under paragraph (b), (c),
(d), (e), (f), or (g) of this Section 5.

    

    
      	
              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

     

    
      
        
        

      

      
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    plan, grant or program but without duplication (collectively, the “Accrued
Obligations”).  The Accrued Obligations described in clauses (i) and
(ii) of the preceding sentence shall be paid on the first regular payroll date
after the Executive’s termination (or, if earlier, within 45 days after the
Executive’s termination).

     

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

     

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

     

    
      	
              (a)  

            	
              Payment
      in a lump sum 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 on March 1 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)  

            	
              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) (the sum of (i) and (ii) being
      hereinafter referred to as “Final Annual Compensation”).  An
      amount equal to one and one half (11⁄2) times the Final Annual Compensation
      shall be paid in a lump sum on the first regular payroll date after the
      end of the six-month period following the Executive’s
      termination.  An amount equal to the remaining one half (1⁄2)
      times Final Annual Compensation shall be calculated as equal monthly
      installments payable over a period of two (2) years; provided, however,
      that the monthly installments for the first six months following the
      Executive’s termination shall be paid in a lump sum, without interest, on
      the first regular payroll date after the end of the six-month period, and
      the remaining monthly installments shall commence on the first regular
      payroll date after the end of the sixth month following the Executive’s
      termination and shall be paid for the remainder of the two (2) year
      period.

            

    

     

    
      	
              (c)  

            	
              Immediate
      full vesting of the Executive’s accounts under the Deferred Income
      Plan.

            

    

     

    
      
        
        

      

      
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              (d)  

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

            

    

     

    
      	
              (e)  

            	
              If
      the Executive dies after the Executive’s termination of employment and
      before the end of the six-month period following the Executive’s
      termination, any payment provided under this Section 6.3 that would have
      been made (in the case of a lump-sum payment) or that would have commenced
      (in the case of a periodic payment) on the first regular payroll date
      after the end of the six-month period shall instead be made or commence on
      the first regular payroll date following the Executive’s death, provided
      that the Executive’s beneficiary is otherwise entitled to receive the
      payment under this Section 6.3.  To the extent that any payment
      under this Section 6.3 is made “on the first regular payroll date”
      following a date or event, the regular payroll date shall be determined
      based on the Company’s payroll cycle applicable to the Executive at the
      time of his separation from service (within the meaning of Section 409A of
      the Code), without regard to any change in the payroll cycle that becomes
      effective after the Executive’s separation from
  service.

            

    

     

    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.

     

    6.5 Coordination
With Other Plans.  The rules set forth in this Section 6.5 shall apply
to all amounts provided under the Agreement.

     

    
      	
                    
                (a)
        

              

            	
              To
      the extent that the Executive’s Base Salary, annual incentive
      compensation, or other amounts payable under this Agreement are subject to
      a valid deferral election (or are deferred pursuant to a plan provision)
      that had become irrevocable at the time of the Executive’s termination of
      employment, the deferred amounts shall be paid in accordance with the
      terms of the deferred compensation arrangement.  Any amount
      payable under this Agreement that would be regarded as a substitute for an
      amount that was deferred as provided in the preceding sentence (for
      example, a payment made in lieu of deferred annual incentive compensation)
      also shall be paid in accordance with the terms of the deferred
      compensation arrangement.  This Section 6.5(a) is intended, and
      shall be applied, solely to prevent the Executive’s deferral election or
      an automatic deferral provision from being revocable to the extent that
      its revocation would violate Section 409A of the
  Code.

            

    

    

    
      	
              (b)  
      

            	
              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, and this
    

            

    

     

    
      
        
        

      

      
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              Agreement
      shall be applied in a manner consistent with that intent.  To
      the extent that a duplicative benefit is provided under this Agreement and
      under another employee benefit plan, policy, or program of the Company,
      the following rules shall apply:

            

    

    
 

    
      	
               
      

            	
              (i)

            	
              Any
      benefit provided under a retirement plan that is tax-qualified under
      Section 401(a) of the Code shall be paid exclusively as provided under the
      tax-qualified retirement plan, and the duplicative benefit provided under
      this Agreement shall be reduced by the value of the tax-qualified
      retirement benefit.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Any
      benefit provided under a disability pay plan, death benefit plan, bona
      fide vacation pay plan, or other plan or policy that is excluded from the
      definition of “nonqualified deferred compensation” under Treasury
      Regulations § 1.409A-1(a)(5) shall be paid exclusively as provided
      under the plan or policy, and the duplicative benefit provided under this
      Agreement shall be reduced by the value of the benefit provided under the
      plan or policy.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              To
      the extent that a provision of this Agreement makes specific reference to
      another plan or program of the Company and states that the terms of the
      other plan or program shall govern with respect to the calculation,
      payment, or timing of payment of a particular benefit, that benefit shall
      be paid as provided in the other plan or program, as stated in this
      Agreement.

            

    

    

    
      	
               
      

            	
              (iv)

            	
              In
      all other circumstances in which any payment or benefit under this
      Agreement duplicates a payment or benefit provided under another employee
      benefit plan, policy, or program of the Company, or to the extent that the
      payment or benefit under this Agreement is or could be subject to offset
      by the benefit under another employee benefit plan, policy, or program of
      the Company, the duplicative benefit shall be paid exclusively as provided
      in this Agreement, and the duplicative benefit provided under the other
      employee benefit plan, policy, or program shall be reduced by the value of
      the benefit provided under this
Agreement.

            

    

    

    
      	
               
      

            	
              (v)

            	
              The
      benefit coordination provisions in this Section 6.5(b) are intended, and
      shall be applied, to ensure that the payments made to the Executive are
      exempt from, or comply with, Section 409A of the Code, and that the
      coordination of benefits between this Agreement and the other employee
      benefit plans, policies, or programs in which the Executive participates
      will not result in any acceleration or re-deferral of deferred
      compensation that would violate Section 409A of the
  Code.

            

    

     

    
      
        
        

      

      
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    6.6 The
Executive’s right under this Section 6 to receive any payments in installments
shall be treated as a right to a series of separate payments for purposes of
Section 409A of the Code, as provided in Treas. Reg.
§ 1.409A-2(b)(2)(iii).

     

    
      	
              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, or defense.  The
      preceding sentence shall not limit the Company’s right to enforce the
      forfeiture provision in Section
9.6(b).

            

    

     

    
      	
              (b)  

            	
              Any
      amounts payable and benefits or additional rights provided pursuant to
      Section 6.3 or Section 8.2 beyond 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 to indemnification, contribution,
      exculpation, advances, or directors and officers liability insurance under
      the Company’s organizational documents, under any plan or agreement, or at
      law) with regard to the Company, its subsidiaries and related entities and
      their respective past or present officers, directors and employees, in the
      form attached to this Agreement as Exhibit C, that has become irrevocable
      before the date on which such payment or benefit is due to be paid or
      provided.  To the extent that options and other equity awards
      are eligible for accelerated vesting pursuant to the last sentence of
      Section 8.2(i), the equity award shall not vest pursuant to Section 8.2(i)
      until the Executive’s release has become irrevocable.  The
      Company and the Executive shall execute the release of claims and shall
      deliver executed copies to one another within forty-five days following
      the Executive’s separation from
service.

            

    

     

    
      	
              (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.

            

    

     

    
      	
              8.  

            	
              Change
      in Control

            

    

     

    8.1 Employment
Termination in Connection with a Change in Control.

     

    
      	
              (a)  

            	
              In
      the event of a Qualifying Termination 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 

            

    

     

    
      
        
        

      

      
        - 10
-

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              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 amounts and provide the benefits described in
      Section 8.2, below.  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.

            

    

     

    
      	
              (b)  

            	
              If
      the Change in Control is a “Section 409A Change in Control,” as defined in
      Section 8.3, and if the Qualifying Termination occurs after the Section
      409A Change in Control, all applicable payments shall be made in a lump
      sum on the first regular payroll date after the end of the six-month
      period following the Qualifying Termination), except as otherwise provided
      in Section 8.2(a) through (k),
below.

            

    

     

    
      	
              (c)  

            	
              If
      the Change in Control is not a Section 409A Change in Control, or if the
      Qualifying Termination occurs before a Section 409A Change in Control, any
      payment or benefit that would have been provided under Section 6.3 or
      under a separate compensation plan in the absence of a Change in Control
      shall be paid exclusively as provided in Section 6.3 or in the separate
      compensation plan, without acceleration or other adjustment to reflect the
      Change in Control.  Any incremental additional payment or
      benefit that is provided under this Section 8 solely upon an Executive’s
      Qualifying Termination during the Change in Control Protection Period
      shall be paid in a lump sum within 30 business days after the effective
      date of the Change in Control (or, if later, on the first regular payroll
      date after the end of the six-month period following the Qualifying
      Termination).

            

    

     

    8.2 Payments
Upon a Qualifying Termination.  Subject to the provisions of Section
8.1(b) and (c) regarding the time and manner of payment, the payments and
benefits payable upon a Qualifying Termination are as follows:

     

    
      	
              (a)  

            	
              Any
      Accrued Obligations.

            

    

     

    
      	
              (b)  

            	
              A
      lump-sum cash payment (subject to the distribution rules set forth later
      in this paragraph) 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.  If the Qualifying
      Termination occurs after a Section 409A Change in Control, the entire
      amount shall be paid in a lump sum, without interest, on the first regular
      payroll date after the end of the sixth month following the Executive’s
      termination.  If the Change in Control is not a Section 409A
      Change in Control, or if the Qualifying Termination precedes a Section
      409A Change in Control, an amount equal to 2 times the Executive’s Base
      Salary (reduced by any payments attributable to Base Salary made under
      Section 6.3(b) before the Change in Control) shall be paid as provided in
      Section 6.3(b), and any incremental additional amount payable under this
      Section 8.2(b) solely as a result of the Change in Control shall be paid
      in a lump sum, without interest, on the later of (i) on the first regular
      payroll date after the end of the 

            

    

     

    
      
        
        

      

      
        - 11
-

        
          

        

      

      
        
        

      

    

     

    
      	
                

            	
              sixth
      month following the Executive’s termination, or (ii) within 30 business
      days after the effective date of the Change in
  Control.

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              (d)  

            	
              A
      lump-sum cash payment (subject to the distribution rules set forth later
      in this paragraph) 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.  If the
      Qualifying Termination occurs after a Section 409A Change in Control, the
      entire amount shall be paid in a lump sum, without interest, on the first
      regular payroll date after the end of the sixth month following the
      Executive’s termination.  If the Change in Control is not a
      Section 409A Change in Control, or if the Qualifying Termination precedes
      a Section 409A Change in Control, an amount equal to 2 times the bonus
      amount described in Section 6.3(b)(ii) (reduced by any installment
      payments attributable to the bonus amount made under Section 6.3(b) before
      the Change in Control) shall be paid as provided in Section 6.3(b), and
      any incremental additional amount payable under this Section 8.2(d) solely
      as a result of the Change in Control shall be paid in a lump sum, without
      interest, on the later of (i) on the first regular payroll date after the
      end of the sixth month following the Executive’s termination, or (ii)
      within 30 business days after the effective date of the Change in
      Control.

            

    

     

    
      	
              (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 applicable retiree health and
      retiree life insurance plans for the Executive and (in the case of retiree
      health coverage) the Executive’s eligible dependents.  If the
      Executive is eligible for retiree life insurance coverage only because of
      the additional age and service credit, the Executive shall pay the full
      cost of purchasing the coverage (under the Company’s group insurance
      policy, or under an individual policy if coverage under the Company’s
      policy is not available), and the Company shall reimburse the Executive
      for the cost (before tax) of the coverage.  The Company shall
      reimburse the cost of coverage for the first six months following the
      Executive’s termination in a lump sum, without interest, on the first
      regular payroll date after the end of the six-month period, and the
      Company shall reimburse the cost monthly
  thereafter.

            

    

     

    
      
        
        

      

      
        - 12
-

        
          

        

      

      
        
        

      

    

     

    
      	
              (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 cost (before tax)
      to the Executive than the Executive would have as an employee, in the
      Company’s Survivor Benefit Plan for Textron Key Executives, accidental
      death and dismemberment insurance coverage, and dependent life insurance
      coverage, 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. The
      Company shall also reimburse the Executive for the cost (before tax) of
      purchasing (under the Company’s group insurance policy, or under an
      individual policy if coverage under the Company’s policy is not
      available), for the continuation period described in the preceding
      sentence, the level of Company-paid term life insurance coverage and
      long-term disability insurance coverage that the Executive received on the
      date of termination.  The Company shall reimburse the cost of
      coverage for the first six months following the Executive’s termination in
      a lump sum, without interest, on the first regular payroll date after the
      end of the six-month period, and the Company shall reimburse the cost
      monthly thereafter for the remainder of the continuation
      period.

            

    

     

    
      	
              (g)  

            	
              A
      lump-sum cash payment (subject to the distribution rules set forth later
      in this paragraph) of the actuarial present value equivalent (as
      determined in accordance with the most favorable (to the Executive)
      overall actuarial assumptions and subsidies in any of the Company’s
      tax-qualified or nonqualified type defined benefit pension plans in which
      the Executive then participates) of the accrued benefits accrued by the
      Executive as of the date of termination under the terms of any
      nonqualified defined benefit type retirement plan, including but not
      limited to, the Amended and Restated Supplemental Executive Retirement
      Plan for Textron Inc. Key Executives and the Spillover Pension 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).  If the Qualifying Termination occurs after a
      Section 409A Change in Control, the present value of the amount that would
      have been payable under the nonqualified defined benefit type retirement
      plans if no Change in Control had occurred shall be paid in a lump sum,
      without interest, on the date when it would otherwise have been payable
      under the nonqualified plans if no Change in Control had
      occurred.   If the Change in Control is not a Section 409A
      Change in Control, or if the Qualifying Termination precedes a Section
      409A Change in Control, the amount that would have been payable under the
      nonqualified defined benefit type retirement plans if no Change in Control
      had occurred (reduced by any payments made under the plans before the
      Change in 

            

    

     

    
      
        
        

      

      
        - 13
-

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              Control)
      shall be paid as provided under the terms of the applicable nonqualified
      plans.  In either case, any incremental additional amount
      payable under this Section 8.2(g) solely as a result of the Change in
      Control shall be paid in a lump sum, without interest, on the later of (i)
      on the first regular payroll date after the end of the sixth month
      following the Executive’s termination, or (ii) within 30 business days
      after the effective date of the Change in
  Control.

            

    

     

    
      	
              (h)  

            	
              A
      lump-sum cash payment, on the later of (i) on the first regular payroll
      date after the end of the sixth month following the Executive’s Qualifying
      Termination, or (ii) within 30 business days after the effective date of
      the Change in Control, equal to three (3) times the amount of the maximum
      Company contribution or match to any defined contribution type plan in
      which the Executive participates.

            

    

     

    
      	
              (i)  

            	
              Full
      vesting and payment of any outstanding performance share units, assuming
      performance at target levels for the full performance
      cycle.  Subject to Section 8.1(c), the payment described in the
      preceding sentence shall be made in a lump sum, without interest, on the
      later of (i) on the first regular payroll date after the end of the sixth
      month following the Executive’s Qualifying Termination, or (ii) within 30
      business days after the effective date of the Change in
      Control.  For equity awards other than performance share units,
      immediate full vesting of any outstanding stock options and other equity
      awards (and lapse of any forfeiture
provisions).

            

    

     

    
      	
              (j)  

            	
              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.  The only taxable payments or in-kind benefits
      provided under this paragraph during the first six months following the
      Executive’s Qualifying Termination shall be (A) in-kind benefits that the
      Executive could otherwise deduct as business expenses under Sections 162
      or 167 of the Code (disregarding limitations based on adjusted gross
      income), and (B) reasonable outplacement expenses actually incurred
      by the Executive and directly related to the Qualifying
      Termination.  Any taxable outplacement expenses incurred during
      the first six months following the Executive’s termination that are
      otherwise payable under this paragraph, but whose payment during the
      initial six-month period would result in additional tax under Section 409A
      of the Code, shall be paid by the Executive during the initial six-month
      period; and the Company shall reimburse the Executive for the payments in
      a lump sum, without interest, on the first regular payroll date after the
      end of the sixth month following the Executive’s Qualifying
      Termination.

            

    

     

    
      	
              (k)  

            	
              If
      the Executive dies after the Executive’s termination of employment and
      before the end of the six-month period following the Executive’s
      termination, any payment provided under Section 8.1 or this Section 8.2
      that would have

            

    

     

    
      
        
        

      

      
        - 14
-

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              been
      made (in the case of a lump-sum payment) or that would have commenced (in
      the case of a periodic payment) on the first regular payroll date after
      the end of the six-month period shall instead be made or commence on the
      first regular payroll date following the Executive’s death, provided that
      the Executive’s beneficiary is otherwise entitled to receive the payment
      under Section 8.1 or this Section 8.2.  To the extent that any
      payment under Section 8.1 or this Section 8.2 is made “on the first
      regular payroll date” following a date or event, the regular payroll date
      shall be determined based on the Company’s payroll cycle applicable to the
      Executive at the time of his separation from service (within the meaning
      of Section 409A of the Code), without regard to any change in the payroll
      cycle that becomes effective after the Executive’s separation from
      service.

            

    

     

    8.3 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.

            

    

     

    
      
        
        

      

      
        - 15
-

        
          

        

      

      
        
        

      

    

    A “Section 409A Change in Control”
shall be deemed to have occurred as of the first day any one or more of the
conditions in paragraphs (a) through (d), above, has been satisfied, if the
event also constitutes a “change in ownership,” “change in effective control,”
or “change in the ownership of a substantial portion of the Company’s assets” as
defined in regulations or other guidance under Section 409A of the
Code.

     

    8.4 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.

     

    8.5 The
Executive’s right under this Section 8 to receive any payments in installments
shall be treated as a right to a series of separate payments for purposes of
Section 409A of the Code, as provided in Treas. Reg.
§ 1.409A-2(b)(2)(iii).

     

    
      	
              9.  

            	
              Noncompetition,
      Confidentiality and
Nondisparagement

            

    

     

    9.1 Agreement
Not to Compete.

     

    
      	
              (a)  

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

            

    

     

    
      	
              (b)  

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

            

    

     

    
      	
              (c)  

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

            

    

     

    9.2 Definitions.

     

    
      	
              (a)  

            	
              “Competition”
      shall mean engaging in, as an employee, director, partner, principal,
      shareholder, consultant, advisor, independent contractor or similar
      capacity, with (a) the Listed Companies or (b) in any business, activity
      or conduct which directly competes with the business of the Company,
      provided that, with regard to the period after termination of the
      Executive’s employment, Section 9.1(b)(ii) shall only apply to business
      lines in which the Company is

            

    

     

    
      
        
        

      

      
        - 16
-

        
          

        

      

      
        
        

      

    

     

    
      	
               

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

            

    

     

    
      	
              (b)  

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

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              (d)  

            	
              For
      purposes of this Section 9, “Company” shall mean the Company and its
      subsidiaries and affiliates.

            

    

     

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

     

    
      
        
        

      

      
        - 17
-

        
          

        

      

      
        
        

      

    

    Company for the purpose of affiliating with any entity with which the
Executive is associated (“Solicitation”).

     

    9.4 Confidential
Information.

     

    
      	
              (a)  

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

            

    

     

    
      	
              (b)  

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

            

    

     

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

     

    
      
        
        

      

      
        - 18
-

        
          

        

      

      
        
        

      

    

    9.6 Remedies.

     

    
      	
              (a)  

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

            

    

     

    
      	
              (b)  

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

            

    

     

    
      	
              (c)  

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

            

    

     

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

     

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

     

    9.9 Nondisparagement.

     

    
      	
              (a)  

            	
              During
      the Employment Term and thereafter, the Executive shall not with willful
      intent to damage economically or as to reputation or vindictively
      disparage the Company, its subsidiaries or their respective past or
      present officers, directors or employees (the “Protected Group”), provided
      that the foregoing shall not apply to (i) actions or statements taken or
      made by the

            

    

     

    
      
        
        

      

      
        - 19
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              Executive
      while employed by the Company in good faith as fulfilling the Executive’s
      duties with the Company or otherwise at the request of the Company, (ii)
      truthful statements made in compliance with legal process or governmental
      inquiry, (iii) as the Executive in good faith deems necessary to rebut any
      untrue or misleading public statements made about him or any other member
      of the Protected Group, (iv) statements made in good faith by the
      Executive to rebut untrue or misleading statements made about him or any
      other member of the Protected Group by any member of the Protected Group,
      and (v) normal commercial puffery in a competitive business situation. No
      member of the Protected Group shall be a third party beneficiary of this
      Section 9.9(a).

            

    

     

    
      	
              (b)  

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

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              10.

            	
              Liability
      Insurance

            

    

     

    The
Company shall cover the Executive under directors and officers liability
insurance for bona fide (within the meaning of Treas. Reg. § 1.409A-1(b)(10))
claims based on the Executive’s actions or failure to act in his capacity as a
director, officer, employee, or fiduciary of the Company in the same amount and
to the same extent, if any, as the Company covers its other officers and
directors.  The Company shall maintain the coverage both during and,
while potential liability exists, after the Employment Term.

     

    
      	
              11.

            	
              Assignment

            

    

     

    11.1 Assignment
by the Company.  This Agreement may and shall be assigned or
transferred to, and shall be binding upon and shall inure to the benefit of, any
successor of the Company, and any such successor shall be deemed substituted for
all purposes of the “Company” under the terms of this Agreement. As used in this
Agreement, the term “successor” shall mean any person, firm, corporation or
business entity which at any time, whether by merger, purchase, or otherwise,
acquires all or substantially all of the assets of the Company.

     

    
      
        
        

      

      
        - 20
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    Notwithstanding such assignment, the Company shall remain, with such
successor, jointly and severally liable for all its obligations hereunder.
Except as herein provided, this Agreement may not otherwise be assigned by the
Company.

     

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

     

    
      	
              12.

            	
              Legal
      Remedies

            

    

     

    12.1 Payment
of Legal Fees.  The Company shall pay the Executive’s reasonable legal
fees and costs associated with entering into this Agreement. To the fullest
extent permitted by law, the Company shall promptly pay upon submission of
statements all legal and other professional fees, costs of litigation,
prejudgment interest, and other expenses incurred during the Executive’s
lifetime or in the five-year period following the Executive’s death in
connection with any dispute arising hereunder and/or in connection with any
release of claims executed or to be executed in connection herewith; 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.  Prejudgment interest shall be paid at the rate awarded
by the arbitrator or court on any money award or judgment obtained by the
Executive or by any person claiming by or through the Executive, payable at the
same time as the underlying award or judgment is paid.  The only
taxable payments or  reimbursements provided under this paragraph
during the first six months following the Executive’s Qualifying Termination
shall be reimbursements that the Executive could otherwise deduct as business
expenses under Sections 162 or 167 of the Code (disregarding limitations based
on adjusted gross income).  After the end of the sixth month following
the Executive’s Qualifying Termination, taxable reimbursements shall be provided
under this paragraph subject to the following requirements: (A) all
reimbursements shall be provided pursuant to a written policy that provides an
objectively determinable nondiscretionary description of the reimbursements
provided; (B) all reimbursements shall be paid no later than the end of the
calendar year following the year in which the expense was incurred; (C) no
reimbursement shall be subject to liquidation or exchange for another benefit;
and (D) the amount of reimbursable expense incurred in one year shall not affect
the amount of reimbursement available in another year.  Any taxable
expenses incurred during the first six months following the Executive’s
termination that are otherwise payable or reimbursable under this paragraph, but
whose payment during the initial six-month period would result in additional tax
under Section 409A of the Code, shall be paid or reimbursed in a lump sum,
without interest, on the first regular payroll date after the end of the sixth
month following the Executive’s Qualifying Termination.

     

    
      
        
        

      

      
        - 21
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    12.2 Arbitration.  All
disputes and controversies arising under or in connection with this Agreement,
other than the seeking of injunctive or other equitable relief pursuant to
Section 9 hereof, shall be settled by arbitration conducted before a panel of
three (3) arbitrators sitting in New York City, New York, or such other location
agreed by the parties hereto, in accordance with the rules for expedited
resolution of commercial disputes of the American Arbitration Association then
in effect. The determination of the majority of the arbitrators shall be final
and binding on the parties. Judgment may be entered on the award of the
arbitrator in any court having proper jurisdiction. All expenses of such
arbitration, including the fees and expenses of the counsel of the Executive,
shall be borne by the Company and the Executive shall be entitled to
reimbursement of his expenses as provided in Section 12.1 hereof.

     

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

     

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

     

    
      	
              13.

            	
              Miscellaneous

            

    

     

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

     

    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.

     

    
      
        
        

      

      
        - 22
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    13.3 Severability.  In
the event that any provision or portion of this Agreement shall be determined to
be invalid or unenforceable for any reason, the remaining provisions of this
Agreement shall be unaffected thereby and shall remain in full force and
effect.

     

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

     

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

     

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

     

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

     

    13.8 Section
409A.

     

    
      	
              (a)  

            	
              Although
      the payments and benefits provided under the Agreement are intended to be
      exempt from, or to comply with, Section 409A of the Code, the Company
      shall not be liable for any additional tax, interest, or penalty the
      Executive incurs as a result of the failure of any payment or benefit to
      satisfy the requirements of Section 409A, except as provided in subsection
      (c), below.  The Company will promptly make any change in the
      Agreement that the Executive reasonably requests to ensure that the
      Agreement will comply with Section 409A, provided that the requested
      change does not alter any substantive provision of the Agreement in a
      manner that the Company, in its sole discretion, reasonably regards as
      being contrary to the Company’s
interest.

            

    

     

    
      	
              (b)  

            	
              The
      Company will consider in good faith any change in the Agreement that the
      Executive reasonably requests to ensure that the Agreement will comply
      with Section 409A.  If the Company is not willing to accept the
      proposed change as written, the Company will promptly communicate to the
      Executive the reasons for the Company’s refusal and any revisions that
      would make the proposed change acceptable to the
  Company.

            

    

     

    
      	
              (c)  

            	
              The
      Company shall indemnify the Executive, as provided in this subsection (c),
      if a violation of Section 409A occurs as a result of (1) the Company’s
      clerical error,

            

    

     

    
      
        
        

      

      
        - 23
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              (2)
      the Company’s failure to administer this Agreement or any benefit plan or
      program in accordance with its written terms, or (3) a provision of any
      benefit plan or program of the Company (other than this Agreement) that
      fails to comply with Section 409A (each event described in clauses (1)
      through (3) is referred to as an “Indemnified Section 409A Violation”),
      and the Executive incurs additional tax under Section 409A as a result of
      the Indemnified Section 409A Violation.  The Company shall
      reimburse the Executive for (i) the 20% additional income tax
      described in Section 409A(a)(1)(B)(i)(II) of the Code (to the extent that
      the Executive incurs the 20% additional income tax as a result of the
      Indemnified Section 409A Violation), and (ii) any interest or penalty that
      is assessed with respect to the Executive’s failure to make a timely
      payment of the 20% additional income tax described in clause (i), provided
      that the Executive pays the 20% additional income tax promptly upon being
      notified that the tax is due (the amounts described in clause (i) and
      clause (ii) are referred to collectively as the “Section 409A
      Tax”).  The Company shall make a payment (the “Gross-Up
      Payment”) to the Executive such that the net amount the Executive retains,
      after paying any federal, state, or local income tax or FICA tax on the
      Gross-Up Payment, shall be equal to the Section 409A Tax.  The
      Company and the Executive shall calculate, adjust (if necessary), and pay
      or repay the Gross-Up Payment in accordance with the procedures specified
      in subsections (c) through (g) of Exhibit A (but substituting “Section
      409A Tax” for “Excise Tax” wherever the latter term appears in Exhibit
      A).

            

    

     

    
      	
              14.

            	
              Governing
      Law

            

    

     

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

     

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

     

    

    

    /s/ Kenneth C.
Bohlen________________

    Kenneth
C. Bohlen

    

    

    

    TEXTRON
INC.

    

    

    

    By:    /s/ Lewis B.
Campbell__________

    Name:  Lewis
B. Campbell

    Title:  Chairman,
President, and CEO

    

    
      
        
           

        

         

      

      
        - 24
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    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.  Notwithstanding the foregoing, if the then present
aggregate value of the Company Payments (calculated in accordance with the
principles of Section 280G of the Code and the regulations promulgated
thereunder) does not exceed 110% of the “Safe Harbor Amount” (which shall be
2.99 times the Executive’s “base amount” within the meaning of Section
280G(b)(3) of the Code), then the Company shall not pay the Executive a Gross-up
Payment, and the Company Payments (whether due pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with the Company) shall be
reduced so that the then present aggregate value of the Company Payments equals
the Safe Harbor Amount.  The reduction of the Company Payments, if
applicable, shall be effected in the following order (unless the Executive
elects another method of reduction by written notice to the Company prior to the
Change in Control): (i) any cash severance benefits based on a multiple of Base
Salary or annual incentive compensation; (ii) any other cash amounts payable to
the Executive; (iii) any benefits valued as parachute payments; (iv)
acceleration of vesting of any stock option for which the exercise price exceeds
the then fair market value of the underlying stock; and (v) acceleration of
vesting of any equity award not covered by subsection (iv).

     

    (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.

     

    
      
        
        

      

      
        - 25
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    (c) For
purposes of determining the amount of the Gross-up Payment, the Executive shall
be deemed to pay U.S. federal income taxes at the highest marginal rate of U.S.
federal income taxation in the calendar year in which the Gross-up Payment is to
be made and state and local income taxes at the highest marginal rate of
taxation in the state and locality of the Executive’s residence for the calendar
year in which the Company Payment is to be made, net of the maximum reduction in
U.S. federal income taxes which could be obtained from deduction of such state
and local taxes if paid in such year. In the event that the Excise Tax is
subsequently determined by the Accountants to be less than the amount taken into
account hereunder at the time the Gross-up Payment is made, the Executive shall
repay to the Company, at the time that the amount of such reduction in Excise
Tax is finally determined, the portion of the prior Gross-up Payment
attributable to such reduction (plus the portion of the Gross-up Payment
attributable to the Excise Tax and U.S. federal, state and local income tax
imposed on the portion of the Gross-up Payment being repaid by the Executive if
such repayment results in a reduction in Excise Tax or a U.S. federal, state and
local income tax deduction), plus interest on the amount of such repayment at
the rate provided in Section 1274(b)(2)(B) of the Code. Notwithstanding the
foregoing, in the event any portion of the Gross-up Payment to be refunded to
the Company has been paid to any U.S. federal, state and local tax authority,
repayment thereof (and related amounts) shall not be required until actual
refund or credit of such portion has been made to the Executive, and interest
payable to the Company shall not exceed the interest received or credited to the
Executive by such tax authority for the period it held such portion. The
Executive and the Company shall mutually agree upon the course of action to be
pursued (and the method of allocating the expense thereof) if the Executive’s
claim for refund or credit is denied.

     

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

     

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

     

    (e) In the
event of any controversy with the Internal Revenue Service (or other taxing
authority) with regard to the Excise Tax, the Executive shall permit the Company
to 

     

    
      
        
        

      

      
        - 26
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    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.

     

    
      
        
           

        

         

      

      
        - 27
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    EXHIBIT
B

     

    Kenneth
C. Bohlen

    Special
Pension Arrangement:

     

    
      	
              ·  

            	
              2.5
      years of credited service for each year employed for the first five years
      of employment provided he is employed for a minimum of five
      years.

            

    

     

    
      	
              ·  

            	
              2.0
      years of credited service for each year of service thereafter through age
      65.

            

    

     

    
      	
              ·  

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

            

    

     

    
      	
              ·  

            	
              Two
      years of credited service for each year employed for the first five years
      of employment provided he is employed for a minimum of five
      years.

            

    

     

    
      	
              ·  

            	
              50%
      of capped long-term incentive compensation will be treated as pensionable
      compensation.

            

    

     

    
      	
              ·  

            	
              The
      special pension provisions described above shall apply for purposes of
      determining (i) the amount of the Executive’s accrued benefit under the
      Spillover Pension Plan, and (ii) the extent to which the Executive’s
      accrued benefit is vested.  The time and form of payment of the
      Executive’s benefit under the Spillover Pension Plan, the amount of any
      reduction for early retirement, and eligibility for death benefits shall
      be based on the Executive’s actual age and service at the time of his
      retirement.

            

    

     

    
      
        
        

         

      

      
        - 28
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    EXHIBIT
C

    

    Form of
Release

    

    

    NOTICE:
YOU MAY CONSIDER THIS GENERAL RELEASE OF CLAIMS FOR UP TO TWENTY-ONE (21) DAYS
FROM YOUR NOTICE OF TERMINATION.  IF YOU DECIDE TO SIGN IT, YOU MAY
REVOKE THIS GENERAL RELEASE OF CLAIMS WITHIN SEVEN (7) DAYS AFTER SIGNING
IT.  IF YOU REVOKE THE RELEASE WITHIN THIS PERIOD, YOUR REVOCATION
MUST BE IMMEDIATELY SUBMITTED IN WRITING AS DESCRIBED  IN THE
RELEASE.  YOU MIGHT WISH TO CONSULT WITH AN ATTORNEY BEFORE SIGNING
THIS DOCUMENT.

    

    TEXTRON,
INC.

    

    GENERAL
RELEASE OF CLAIMS

    

    My
Employment Agreement with Textron Inc. (“Textron”) states that I will
receive certain payments and benefits in the event of the termination of my
employment only if I execute a general release of claims and I do not revoke the
general release during the applicable revocation period.  In
consideration of the payments and benefits that I will receive under my
Employment Agreement, on behalf of myself and on behalf of any person acting by,
through, or under me (collectively, the “Executive Releasors”), I
hereby release, waive, and forever discharge Textron, Inc.; its current and
former subsidiaries and related entities; its and their respective past or
present officers and directors; its and their employees, fiduciaries, agents,
and insurers (but only in their capacity as employees, fiduciaries, agents, or
insurers of Textron and its current and former subsidiaries and related
entities); and the successors and assigns of each of them (collectively, the
“Textron Releasees”)
from any and all liability, charges, causes of action, demands, damages, or
claims for relief of any kind whatsoever, whether known or unknown at this time,
arising out of, or connected with, my employment with Textron and/or the
termination of my employment from the beginning of the world through the
effective date of this Release.  The claims waived by me under this
General Release of Claims (the “Release”) include, but are not
limited to, all matters in law, in equity, in contract, in tort, or pursuant to
statute, including any claim for discrimination in employment on the basis of
age, race, sex, national origin, disability, religion, or any other type of
discrimination under the Age Discrimination in Employment Act (“ADEA”), Title VII of the Civil
Rights Act of 1964, the Americans with Disabilities Act, or other federal, state
or local law or ordinance, to the fullest extent permitted under
law.

    

    This
Release does not apply to any claims or rights that may arise after the date I
signed this Release.  I understand that Textron is not admitting to
any violation of my rights or any duty or obligation owed to me.

    

    Exclusions

    

    Excluded
from this Release are my claims that, by law, cannot be waived, including but
not limited to (1) the right to file a charge with or participate in an
investigation conducted by

     

    
      
        
        

      

      
        - 29
-

        
          

        

      

      
        
        

      

    

    certain government agencies including, but not limited to, the United
States Equal Employment Opportunity Commission, (2) any rights or claims to
benefits accrued under benefit plans maintained by Textron under the Employee
Retirement Income Security Act, and (3) any claims that cannot be waived under
the Fair Labor Standards Act or the Family and Medical Leave
Act.  Also excluded from this Release are my claims for payments,
benefits, indemnity, contribution, exculpation, advances, and insurance that are
expressly excluded from the requirement that I execute a Release by specific
reference in my Employment Agreement with Textron.  Further, nothing
set forth herein shall serve to release or waive Textron’s obligations pursuant
to and in accordance with the terms of Sections 6, 7(a), 8, 9.9(b), 9.9(c), 10,
11.1, 12, 13.6, and 13.8 of my Employment Agreement with Textron, each of which
shall survive the execution of this Release, or serve to release or waive my
right to enforce the terms of this Release.

    

    Acknowledgements

    

    I
acknowledge and agree to the following:

    

    
      	
              1.  

            	
              The
      benefits I am receiving under the Employment Agreement constitute
      consideration over and above any benefits that I might be entitled to
      receive without executing this
Release;

            

    

     

    
      	
              2.  

            	
              Textron
      advised me in writing to consult with an attorney prior to signing this
      Release;

            

    

     

    
      	
              3.  

            	
              I
      was given a period of at least twenty-one (21) days within which to
      consider this Release; and

            

    

     

    
      	
              4.  

            	
              Textron
      has advised me of my statutory right to revoke my agreement to this
      Release at any time within seven (7) days after my signing this
      Release.

            

    

     

    Representations
and Warranties

    

    I warrant
and represent that my decision to sign this Release was entirely voluntary on my
part.  My decision was not made in reliance on any inducement,
promise, or representation, whether express or implied, other than the
inducements, representations, and promises expressly set forth herein and in the
Employment Agreement, and my decision did not result from any threats or other
coercive activities to induce my agreement to this Release.

    

    In
addition, I warrant and represent that neither I nor any other Executive
Releasor will sue Textron or any other Textron Releasee in any forum for any
claim covered by this Release, except that I may bring a claim under ADEA to
challenge this Release.

    

    I further warrant and represent that I
fully understand and appreciate the consequences of my signing this
Release.

    

    Textron further warrants and represents
that it has obtained or will obtain any approvals that are necessary for Textron
to enter into and abide by the terms of this Release.

    

    
      
        
        

      

      
        - 30
-

        
          

        

      

      
        
        

      

    

    Revocation

    

    If I decide to exercise my right to
revoke this Release within seven (7) days after my agreement to this Release, I
warrant and represent that I will notify Textron in writing, in accordance with
the notice provisions of my Employment Agreement, of my intent to revoke this
Release, and that I will simultaneously return in full any consideration
received from Textron that was subject to the condition that I execute a general
release of claims.

    

    Entire
Agreement

    

    This
Release, except to the extent specifically provided otherwise herein, supersedes
any prior agreements or understandings, oral or written, between the parties
hereto with respect to the subject matter hereof and constitutes the entire
agreement of the parties with respect to the subject matter hereof.

    

    Modification

    

    This
Release 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.

    

    Successors
and Assigns

    

    This
Release shall inure to the benefit of and be binding upon each of the parties
and their respective successors and assigns; provided, however, that neither
this Release nor any of the rights, interests, or obligations hereunder shall be
assigned by either of the parties hereto without the prior written consent of
the other party, and no assignment of any right, interest or obligation shall
release any such assigning party therefrom unless the other party shall have
consented to such release in writing specifically referring to the right,
interest or obligation from which such assigning party is to be
released.  Any purported assignment in violation of this paragraph
shall be void and of no force or effect.  This paragraph shall not
prevent any successor to a Textron Releasee from receiving the benefit of (and
being bound by) the Release automatically, without the need for prior written
consent by the Executive Releasors.

    

    Governing
Law

    

    The
provisions of this Release 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.

    

    Counterparts

    

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

    

    

    
      
        
        

      

      
        - 31
-

        
          

        

      

      
        
        

      

    

     

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

    

    

    ____________________________

    [EXECUTIVE]

    

    

    

    

    TEXTRON
INC.

    

    

    

    

    By:  ___________________________

    Name:

    Title:

    
 

     

    
      
         

        
          - 32
-tenonetwo.htm

    
      
        EXHIBIT
10.2

         

      

      

       

      Notice
of Grant of Restricted Stock Units

      and

      Restricted
Stock Unit Agreement

      

      
        
          
            

          

      

      
        	
                <<Name>>

                <<Address>>

                <<City>>,
      <<State>> <<ZIP>>

                <<Country>>

              	
                RS
      No.:           <<Grant
      #>>

                Plan:               2007

                ID:                   <<Emp
      ID>>

                Location:        <<Business
      Unit>>

                 

              

      

      
        
          
            

          

      

      Effective
Febuary 29, 2008, pursuant to the 2007 Long-Term Incentive Plan (the “Plan”) you
have been granted <<Unit Total> Restricted Stock Units which constitute
the right to receive <<Unit Total>> shares (the “Shares”) of Common
Stock of Textron Inc.  This grant is governed by the Restricted Stock
Unit Terms and Conditions (2/2008) and the Plan, both of which are available on
the Textron Enterprise Intranet and is subject to the Restricted Stock Unit
Non-Competition Agreement (5/2007 version) attached hereto.

       

      The
Shares will become vested and issuable to you on the dates shown below, subject
to earlier expiration or termination of your Restricted Stock Units as provided
in the Restricted Stock Unit Terms and Conditions (2/2008):

      

      
        	
                Shares

              	
                Vest
      Date

              
	
                 <<Units
      1>>

              	
                March
      1, 2011

              
	
                <<Units
      2>>

              	
                March
      1, 2012

              
	
                <<Units
      3>>

              	
                March
      1, 2013

              
	
                <<Unit
      Total>>

              	 
      

      

      
        

      

       

      By your
signature and the Company’s signature below, you and the Company agree that this
grant is governed by the attached Restricted Stock Unit Terms and Conditions
(2/2008)  and the Plan, both of which are available on the Textron
Enterprise Intranet.  In addition, you agree that this grant is
subject to the Restricted Stock Unit Non-Competition Agreement (5/2007 version)
attached hereto, the terms of which are fully incorporated herein.

       

      

       

      
Please
retain a copy of this signed agreement and return the original to

      
        your
Human Resources Department within 30 days of receipt of this
document.

      

      
         

        
           

          
            

          

        

        
           

        

      

      TEXTRON
INC.

      TEXTRON
2007 LONG-TERM INCENTIVE PLAN

      RESTRICTED
STOCK UNIT (WITH DIVIDEND EQUIVALENTS)

      TERMS
AND CONDITIONS

       (2/2008)

      ______________________________

      

      
        	
                ·  

              	
                Pursuant
      to the 2007 Long-Term Incentive Plan (the “Plan”), Textron has awarded to
      executive the number of Restricted Stock Units set forth on the applicable
      Notice of Grant signed by Textron and Grantee on the terms and conditions
      herein set forth. Each Restricted Stock Unit constitutes the right to
      receive one share (a “Share”) of Common Stock.  As the
      applicable “Period of Restriction” lapses, Textron will issue to the
      executive that number of Shares less the number of Shares needed to
      satisfy required statutory withholding. Shares may be issued in the form
      of a certificate or a notification to the executive that the Shares are
      held in a book-entry account on the executive’s
  behalf.

              

      

      

      
        	
                ·  

              	
                If
      the executive’s employment with Textron shall terminate for “Cause,” all
      Shares which may be issued pursuant to the Restricted Stock Units awarded
      to the executive that are still subject to the applicable “Period of
      Restriction" shall be forfeited.

              

      

      

      
        	
                ·  

              	
                Except
      as otherwise provided herein, the executive shall not be entitled to
      receive Shares if the executive’s employment with Textron ends for any
      reason prior to the end of the Period of Restriction applicable to such
      Shares, provided that if the executive’s employment ends prior to such
      date and at least six months after the date of grant because of
      “Disability,” death or after the executive has become eligible for “Early
      or Normal Retirement,” the executive or the executive’s estate will
      receive a certificate for a “Pro-Rata Portion” of such
    Shares.

              

      

      

      
        	
                ·  

              	
                Notwithstanding
      the above, the applicable Period of Restriction for the Shares which may
      be issued pursuant to this Award shall end immediately upon a “Change in
      Control” of Textron, as defined in the Plan. In such instance, Textron
      shall issue the Shares to the executive (or to the executive’s estate in
      the event of the executive’s death prior to payment) as soon as
      administratively practical after the Change in Control. Note: Sale of a
      business unit usually does not constitute a Change in Control as defined
      in the Plan. If executive’s employment with Textron is involuntarily
      terminated due to the sale of a business that does not constitute a Change
      in Control as defined in the Plan, executive’s then un-issued Shares will
      be forfeited.

              

      

      

      
        	
                ·  

              	
                The
      number of Shares which may be issued pursuant to the Restricted Stock
      Units awarded to the executive hereunder shall be equitably adjusted in
      the event of a stock split, stock dividend, recapitalization,
      reorganization, merger, consolidation, split-up, spin-off, or any other
      corporate event affecting the Common Stock, as provided in the Plan, in
      order to preserve the benefits or potential benefits intended to be made
      available to the Grantee.

              

      

      

      
        	
                ·  

              	
                Nothing
      in this document shall confer upon the executive the right to continue in
      the employment of Textron or affect any right that Textron may have to
      terminate the employment of the
executive.

              

      

      

      
        	
                ·  

              	
                The
      Restricted Stock Units shall not be assignable or transferable by the
      executive.  The Shares, once issued to the executive, shall be
      freely transferable.

              

      

      

      
        	
                ·  

              	
                The
      executive shall not have voting rights during the period of
      restriction.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                ·  

              	
                The
      executive’s award of Restricted Stock Units with dividend equivalents
      shall entitle the executive to receive an amount equal to any cash
      dividend declared with respect to the number of Shares represented by
      those Restricted Stock Units, but only to the extent that the Restricted
      Stock Units have neither been converted to Shares nor been forfeited
      before the record date for such dividend.  Dividend equivalents
      are paid at the same rate and same time that dividend on shares of common
      stock are paid to Textron shareholders.  The dividend equivalent
      shall be reduced by the amount of any applicable tax withholding, and the
      net amount shall be paid in cash to the
  executive.

              

      

       

      

      
        	
                ·  

              	
                The
      Restricted Stock Units shall be subject to the terms and conditions of the
      Plan in all respects.

              

      

      

      DEFINITIONS

      “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 Textron; (ii) any willful
misconduct by the executive with regard to Textron, its business, assets or
employees that has, or was intended to have, a material adverse impact (economic
or otherwise) on Textron; (iii) any material, willful and knowing violation by
the executive of (x) Textron's Business Conduct Guidelines, or (y) any of his or
her fiduciary duties to Textron which in either case has, or was intended to
have, a material adverse impact (economic or otherwise) on Textron; (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
Textron; (v) the executive's willful failure to attempt to perform his or her
duties or his or her 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 Textron specifying
the details thereof; or (vi) the executive's conviction of, or pleading nolo
contendere or guilty to, a felony (other than (x) a traffic infraction or (y)
vicarious liability solely as a result of his position provided the executive
did not have actual knowledge of the actions or in actions creating the
violation of the law or the executive relied in good faith on the advice of
counsel with regard to the legality of such action or inaction (or the advice of
other specifically qualified professionals as to the appropriate or proper
action or inaction to take with regard to matters which are not matters of legal
interpretation); No action or inaction should be deemed willful if not
demonstrably willful and if taken or not taken by the executive in good faith as
not being adverse to the best interests of Textron. Reference in this paragraph
to Textron shall also include direct and indirect subsidiaries of Textron, and
materiality and material adverse impact shall be measured based on the action or
inaction and the impact upon, and not the size of, Textron taken as a whole,
provided that after a Change in Control, the size of Textron, taken as a whole,
shall be a relevant factor in determining materiality and material adverse
impact.

      

      “Period of
Restriction”

      

      For the
purposes of this grant, the Period of Restriction means, for any Share which may
be issued pursuant to a Restricted Stock Unit, the period prior to the date on
which such Share becomes issuable.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Early or Normal
Retirement”

      

      “Early
retirement” with Textron is defined as attainment of age 60 or the completion of
20 years of vesting service or the attainment of age 55 with the completion of
10 years of vesting service. “Normal retirement” with Textron is age
65.

      

      “Disability”

      

      “Disability",
shall mean, for purposes of this award, the inability of the executive to engage
in any substantial gainful activity due to injury, illness, disease, bodily or
mental infirmity which can be expected to result in death or is expected to be
permanent.  An individual shall not be considered disabled unless
executive furnishes proof of the existence thereof.  Textron may
required the existence or non-existence of a disability to be determined by a
physician whose selection is mutually agreed upon by the executive (or his or
her representatives) and Textron.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Pro-Rata
Portion”

      

      “Pro-Rata
Portion” shall mean the number of complete or partial months of executive’s
active service to Textron during the Period of Restriction divided by the number
of months in the Period of Restriction.  An employee must be employed
by Textron for a minimum of six month after the grant date before pro-rata
Shares may be issued.

      

      Example: On March 1, 2006, an
executive was granted 2,500 Restricted Stock Units constituting the right to
receive 2,500 Shares to be issued in accordance with the following vesting
schedule:

      

      
        	Shares	
                 

              	
                Vest Dates

              
	834	
                 

              	
                March
      1, 2009

              
	
                833

              	
                 

              	
                March
      1, 2010

              
	
                833

              	
                 

              	
                March
      1, 2011

              

      

      

      The
executive terminates employment with Textron on April 5, 2009 after having
attained age 55 with the completion of 10 years of vesting service.

      

      Because
the executive’s age and years of service qualify as ‘early retirement’ and
executive was employed by Textron for six months after the grant
date,  the executive is eligible for the issuance of a pro-rata
portion of the shares. The number of shares earned would be calculated as
follows:

      

      
        	
                Vest
      Date

              	
                Shares
      Issuable

              	 
      	
                Number of Complete or
      Partial Months Employed by Textron During the Period of Restriction
      (1)

              	 
      	
                Number of Months in the Period of
      Restriction

              	 
      	
                Pro-Rata
      Shares

              
	
                3/1/09

              	
                834

              	
                X

              	
                38

              	
                ÷

              	
                36
      (2)

              	 
      	
                =
          834 shares distributed

                        March
      1, 2006

                 

              
	
                3/1/10

              	
                833

              	
                X

              	
                38

              	
                ÷

              	
                48
      (3)

              	 
      	
                =
          659.4583

              
	
                3/1/11

              	
                833

              	
                X

              	
                38

              	
                ÷

              	
                60
      (4)

              	 
      	
                =
         
      527.5666

              
	 
      	 
      	 
      	 
      	 
      	
                Pro-Rata
      Shares Earned:

              	 
      	
                     1,187.0249*

              

      

      

      (1) March
1,2006 – April 5, 2009 (37 completed plus 1 partial month)

      (2) March
1,2006 – March 1, 2009

      (3) March
1,2006 – March 1, 2010

      (4) March
1,2006 – March 1, 2011

      

      *Fractional
Shares will be paid in cash. For instance, if the share price is $60 on the date
that the Shares are issued, then Textron would pay the executive $1.49 (.0249 X
$60 = $1.49)

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      TEXTRON
INC.

       RESTRICTED
STOCK UNIT NON-COMPETITION AGREEMENT

      (5/2007)

      

      You have
been granted Restricted Stock Units (“RSUs”) pursuant to the Textron 2007
Long-Term Incentive Plan (the “Plan”).  Textron grants Restricted
Stock Units to attract, retain and reward employees, to increase stock ownership
and identification with Textron’s interests, and to provide incentive for
remaining with and enhancing the value of Textron over the
long-term.  In consideration for granting Restricted Stock Units to
you, please acknowledge that you have read and agree to this Restricted Stock
Unit Non-Competition Agreement by signing the attached Notice of Grant of
Restricted Stock Unit and Restricted Stock Unit Agreement.

      

      Agreement regarding Your Restricted Stock
Units

      

      
        	
                1.

              	
                Forfeiture
      of RSU Shares and required repayment if you engage in certain competitive
      activities

              

      

      If at any
time during the Period of Restriction (as defined in the Notice of Grant of
Restricted Stock Unit and Restricted Stock Unit Agreement) while you are a
Company employee, or within two years after the termination of your employment,
you do any of the following activities:

      

      
        	
                (a)  

              	
                engage
      in any business which competes with the Company’s business (as defined in
      Paragraph 2) within the Restricted Territory (as defined in Paragraph 3);
      or

              

      

       

      
        	
                (b)  

              	
                solicit
      customers, business or orders or sell any products and services
      (i) in competition with the Company’s business within the Restricted
      Territory or (ii) for any business, wherever located, that competes with
      the Company’s business within the Restricted Territory;
  or

              

      

       

      
        	
                (c)  

              	
                divert,
      entice or otherwise take away customers, business or orders of the Company
      within
      the Restricted Territory, or attempt to do so;
  or

              

      

       

      
        	
                (d)  

              	
                promote or assist, financially or otherwise, any firm, corporation
      or other entity engaged
      in any business which competes with the Company’s business within
      the Restricted
      Territory;

              

      

      

      then your
right to receive all  shares (“RSU Shares”) issuable pursuant to your
Restricted Stock Units shall be forfeited effective the date you enter into such
activity, and you will be required to repay Textron an amount equal to the fair
market value of any RSU Shares issued to you on the date beginning 180 days
prior to the earlier of (a) your termination of employment or (b) the date you
engage in such activity, or at any time after such date.  The
Organization and Compensation Committee of the Board of Directors (or its duly
appointed agent) may require, in its discretion, that you return any RSU Shares
that you hold rather than paying the cash equivalent of the gain realized on
that investment. You will be in violation of Paragraph 1 if you engage in any or
all of the activities discussed in this Paragraph directly as an individual or
indirectly as an employee, representative, consultant or in any other capacity
on behalf of any firm, corporation or other entity.

      

      2.      Company’s
business – Defined for the purpose of this Agreement:

       

      
        	
                (a)  

              	
                the
      Company shall include Textron and all subsidiary, affiliated or related
      companies or operations of Textron,
and

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                (b)  

              	
                the
      Company’s business shall include the products manufactured, marketed and
      sold and/or the services provided by any operation of the Company for
      which you have worked or to which you were assigned or had responsibility
      (either direct or supervisory), at the time of the termination of your
      employment and any time during the two-year period prior to such
      termination.

              

      

       

      
        	
                3.

              	
                Restricted
      Territory – Defined For the purpose of Paragraph 1, the Restricted
      Territory shall be defined as and limited
to:

              

      

       

      
        	
                (a)  

              	
                the
      geographic area(s) within a one hundred (100) mile radius of any and all
      Company location(s) in or for which you have worked or to which you were
      assigned or had responsibility (either direct or supervisory), at the time
      of the termination of your employment and at any time during the two-year
      period prior to such termination;
and

              

      

       

      
        	
                (b)  

              	
                all
      of the specific customer accounts, whether within or outside of the
      geographic area described in (a) above, with which you have had any
      contact or for which you have had any responsibility (either direct or
      supervisory), at the time of termination of your employment and at any
      time during the two-year period prior to such
  termination.

              

      

      

      
        	
                4.

              	
                Forfeiture of RSU
      Shares and required repayment if you engage in certain solicitation
      activities

              

      

      
      

      If you
directly or indirectly solicit or induce or attempt to solicit or induce any
employee(s), sales representative(s), agent(s) or consultant(s) of the Company
to terminate their employment, representation or other association with the
Company, then your right to receive all RSU Shares shall be forfeited effective
the date you enter into such activity and you will be required to repay Textron
an amount equal to the fair market value of any RSU Shares issued to you on the
date beginning 180 days prior to the earlier of (a) your termination of
employment or (b) the date you engage in such activity, or at any time after
such date.  The Organization and Compensation Committee of the Board
of Directors (or its duly appointed agent) may require, in its discretion, that
you return any RSU Shares that you hold rather than paying the cash equivalent
of the gain realized on that investment.

      

      
        	
                5.

              	
                Forfeiture of RSU
      Shares and required repayment if you disclose confidential
      information

              

      

      You
specifically acknowledge that any trade secrets or confidential business and
technical information of the Company or its suppliers or customers, whether
reduced to writing, maintained on any form of electronic media, or maintained in
your mind or memory and whether compiled by you or the Company, derives
independent economic value from not being readily known to or ascertainable by
proper means by others who can obtain economic value from its disclosure or use;
that reasonable efforts have been made by the Company to maintain the secrecy of
such information; that such information is the sole property of the Company or
its suppliers or customers and that any retention, use or disclosure of such
information by you during your employment (except in the course of performing
your duties and obligations of employment with the Company) or after termination
thereof, shall constitute a misappropriation of the trade secrets of the Company
or its suppliers or customers.  If you directly or indirectly
misappropriate any such trade secrets, then your right to receive all RSU Shares
shall be forfeited effective the date you enter into such activity and you will
be required to repay Textron an amount equal to the fair market value of any RSU
Shares issued to you on the date beginning 180 days prior to the earlier of (a)
your termination of employment or (b) the date you engage in such activity, or
at any time after such date.  The Organization and Compensation
Committee of the Board 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      of
Directors (or its duly appointed agent) may require, in its discretion, that you
return any RSU Shares that you hold rather than paying the cash equivalent of
the gain realized on that investment.

       

      
        6.     Organization and
Compensation Committee Discretion

      

      You may
be released from your obligations under Paragraph 1, 4 and 5 above only if the
Organization and Compensation Committee of the Board of Directors (or its duly
appointed agent) determines in its sole discretion that such action is in the
best interests of Textron.

      

      7.     Severability

      The
parties agree that each provision contained in this Agreement shall be treated
as a separate and independent clause, and the unenforceability of any one clause
shall in no way impair the enforceability of any of the other clauses
herein.  Moreover, if one or more of the provisions contained in this
Agreement shall for any reason be held to be excessively broad as to scope,
activity or subject, then such provisions shall be construed by the appropriate
judicial body by limiting and reducing it or them, so as to be enforceable to
the extent compatible with the applicable law.

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