Employment Agreement Between Raytheon Company and Thomas M. Culligan (July 25, 2001)

Summary

This agreement outlines the compensation and benefits package for Thomas M. Culligan as Senior Vice President of Raytheon Company. It specifies his base salary, incentive targets, stock options, long-term equity awards, and restricted shares. Additional benefits include financial planning allowances, enhanced life insurance, pension benefits, excess liability coverage, executive physical and automobile allowances, and inclusion in an executive medical registry. The agreement also provides for a change-in-control payment equal to three times his base salary and incentive target. Culligan is required to sign and return the legal document to accept these terms.

EX-10.22 5 dex1022.txt EMPLOYMENT AGREEMENT BETWEEN RAYTHEON AND THOMAS M. CULLIGAN EXHIBIT 10.22 July 25, 2001 Mr. Thomas M. Culligan Dear Tom, I am pleased to confirm your total compensation package as an elected Senior Vice President of the Company. The total compensation package that comes with your new role is as follows: Your Total Executive Compensation Package is as Follows: .. Cash Compensation . Base Salary -$375,000 . Results Based Incentive Target 75% of base salary or $281,250 .. Raytheon Equity . Stock options - 50,000 vested in one-thirds annually for three years . Long Term Achievement Plan - 19,500 vested in thirds after 15% growth incrementally in stock price . Restricted Shares - 10,000 - with restrictions lapsing in thirds over three years .. Financial Planning Benefit . First year allowance of $15,000 . Ongoing allowance of $12,000 .. Enhanced Life Insurance . Senior Executive Life Insurance provided for by the Company equal to four times your base annual salary . Basic Life Insurance provided for by the Company equal to one times your base annual salary . Availability of Optional Life Insurance up to five times your annual base salary .. Enhanced Pension Benefit . 35% offina1 average earnings after 10 years of service . 50% of final average earnings after 15 years of service . Final average earnings = highest five years of earnings out of last ten . All pension benefits offset by social security and any pension benefit received from a prior employer .. Excess Liability Coverage . Of $5,000,000 .. Executive Physical Allowance . $2,000 annual allowance .. Inclusion in the Executive Registry for Physician Referral While Traveling .. Executive Automobile Lease . $18,000 annual lease value including fuel, maintenance and insurance. .. Change-In-Control . A Change-In-Control (C-I-C) Agreement equivalent to three times your base salary and targeted Results Based Incentive Plan at the date of a C-I-C . Legal document for signature and return enclosed Should you have any questions about your executive total compensation package, please do not hesitate to call me for clarification. Sincerely, /s/ Keith J. Peden Keith J. Peden Attachments