On January 24, 2014, Textron Inc. entered into a Term Credit Agreement (the Loan Agreement) with JPMorgan Chase Bank, N.A., as administrative agent, Citibank, N.A. and Bank of America, N.A., as syndication agents and The Bank of Tokyo-Mitsubishi UFJ Ltd., as documentation agent, and other lenders. The Loan Agreement provides that the lenders have committed to loan to Textron an aggregate principal amount of $500 million which Textron may draw on or prior to July 24, 2014. Textron will have two options with respect to interest on borrowings under the Loan Agreement.

The first option is for interest to be payable at a rate per annum equal to the Base Rate which is the great of (a) the Prime Rate, (b) the Federal Funds Rate plus of 1% and (c) the sum of 1% plus the one-month LIBOR rate for USD deposits, plus a margin which can range from 12.5 basis points to 100 basis points.