(e) On April 21, 2009, the Organization and Compensation Committee of the Board of Directors of Textron revised the selection and weighting of performance metrics under the previously-approved annual and long-term incentive compensation program for 2009. These changes are applicable to all performance-based awards granted in 2009, including awards to Textron's executive officers. The revisions are intended to further focus executives on Textron's cash efficiency goals, which are of primary importance given the current economic climate, by giving greater weight to achieving cash efficiency targets. They also reflect the Committee's decision to suspend enterprise return on invested capital as a performance measure to allow for increased focus on cash efficiency.

Long-term incentive payments to executive officers in respect of performance cash units and performance share units granted in 2009 under the Textron Inc. 2007 Long-Term Incentive Plan, as amended, will be based on the following:

· Achieving earnings per share targets: 50%
· Achieving cash efficiency targets: 50%

Incentive payments to executive officers for 2009 under the Textron Inc. Short-Term Incentive Plan, as amended, will be based on the following:

·  Achieving earnings per share target:                   45%
·  Achieving workforce diversity target:                   5%
·  Achieving cash efficiency target:                      50%

Performance targets previously set by the Committee for each of the above categories remain the same.

For clarification, as part of the Committee's recent decision (reported in our Current Report on Form 8-K filed on February 27, 2009) to grant long-term compensation awards in part in the form of performance cash units, the previously-announced one-time grants of cash-settled restricted stock units made to Scott C. Donnelly and Richard Yates, who serve as the Company's President and acting Chief Financial Officer, Senior Vice President and Corporate Controller, respectively, were made approximately 54% in performance cash units and 46% in restricted stock units, instead of being made solely in the form of restricted stock units, as originally reported. The treatment of these grants was consistent with all other 2009 annual long-term incentive grants. The change in the format of these grants to include both performance cash units and restricted stock units, effective as of February 27, 2009, does not change the total award values approved by the Committee in January, but increases the extent to which Messrs. Donnelly's and Yates' compensation is tied to performance-based arrangements.