Raytheon Company is a technology leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 87 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs more than 73,000 people worldwide.

Diversifi ed technologies and talents.About Raytheon

About Raytheon

A powerful history of leading technology.

Innovation at every level. Raytheon businesses.Network Centric Systems (NCS)NCS defi nes the leading edge by developing mission solutions for networking, command and control, situational awareness and focused logistics. NCS provides mission systems integration for all branches of the U.S. military, the National Guard, the Department of Homeland Security, the Federal Aviation Administration and other U.S. national security agencies, as well as international customers.

Missile Systems (MS)MS designs, develops and produces precision missile systems, including air-to-air, strike, surface, Navy air defense, land combat, guided projectiles, exoatmospheric kill vehicles and directed energy weapons.

Space and Airborne Systems (SAS)Specializing in targeting, radars and sensor systems, the most critical space and airborne missions are made possible with SAS innovations.

Integrated Defense Systems (IDS)As Raytheon’s leader in joint battlespace integration, IDS employs the most advanced technology for its solutions for domestic and international customers.

Intelligence and Information Systems (IIS)IIS is the leading provider of intelligence and informational solutions that provide the right knowledge at the right time for customers to make timely, accurate decisions to achieve mission goals of national signifi cance.

Raytheon Technical Services Company LLC (RTSC)RTSC provides technical, scientifi c and professional services, as well as a full spectrum of training services and outsourcing for defense, federal and commercial customers worldwide.

Global CompaniesRaytheon U.K., Raytheon Canada, Raytheon Australia

Raytheon Six SigmaTM. United in thought and action for continued excellence.A powerful management philosophy and mechanism for change, Raytheon Six Sigma™ is a fundamental part of the Raytheon organization that is valued for increasing productivity, maximizing customer value, growing the business and building a new culture. Raytheon Six Sigma’s cultural transformation brings together and trains people from all areas of Raytheon to work on teams that focus on customer satisfaction. Over 70 percent of our employees are now Raytheon Six Sigma Specialists, while more than one percent of the company’s employees are now trained Six Sigma Experts.

Raytheon ethics. Upholding the highest standards. Our Ethics and Compliance program is committed to embracing the highest ethical standards and sharing ethics and compliance best practices with other companies and institutions in support of good corporate governance and integrity in the government contracting process. From leadership and management to every Raytheon employee, we are committed to upholding our company values of People, Integrity, Commitment and Excellence, supported by our Code of Conduct. Ethics offi cers are available for consultation throughout each company business, and our ethics education program serves as a resource for maintaining an open culture of communication and respect.

Raytheon Six Sigma is a trademark of Raytheon Company.

Two former college roommates, Laurence K. Marshall and Vannevar Bush, along with scientist Charles G. Smith, founded Raytheon Company in Cambridge, Mass., as the American Appliance Company in 1922. Throughout its history, Raytheon has been a leader in developing defense technologies and in converting those technologies for use in commercial markets. From its early days as a maker of radio tubes, its adaptation of World War II radar technology to invent microwave cooking and its development of the fi rst guided missile, Raytheon has successfully built upon its pioneering tradition to become a global technology leader. Today, with William H. Swanson, Chairman of the Board and Chief Executive Offi cer, Raytheon Company, we continue the tradition of innovation.

William H. Swanson Chairman and CEO, Raytheon Company

Mission-critical solutions. Brilliant ways to succeed.About Network Centric Systems (NCS)

Test your technical strengths like never before. Develop next-generation innovations with some of the world’s greatest scientifi c minds. Drive the information age – and your potential – to new heights. Join Raytheon Network Centric Systems (NCS) on the leading edge of rewards.

Netw

ork Centric Systems

Challenge the way you think – about technology and rewards.

Test your technical strengths like never before. Develop next-generation innovations with some of the world’s greatest scientifi c minds. Drive the information age – and your potential – to new heights. Join Raytheon Network Centric Systems (NCS) on the leading edge of rewards.

Raytheon Network Centric Systems (NCS), headquartered in McKinney, Texas, develops and produces mission solutions for networking, command and control, situational awareness and focused logistics. Programs include civilian applications, command and control systems, integrated communications systems and netted sensor systems. NCS serves all branches of the United States military, the National Guard, the Department of Homeland Security, the Federal Aviation Administration and other U.S. national security agencies, as well as international customers.

NCS is driving transformation in the Information Age by leading Raytheon’s Net Centric Operations. Th is eff ort unites the core strengths of the company to provide networked systems, net-enabled systems and net-centric integration to customers worldwide for emerging requirements. NCS stands focused on the needs of today’s warfi ghters by providing mission systems integration for the Homeland Security and Intelligence, Surveillance and Reconnaissance missions. NCS continues to develop its position in international and adjacent markets with key initiatives in air traffi c and highway management systems, border security and critical infrastructure protection, and civil communication solutions. In each of these vital eff orts, NCS serves to provide our customers with unprecedented accuracy, speed and reliability.

At NCS, our vision is to be the very best at providing networked decision solutions through world-class people and technology. With roughly 13,400 employees and 2008 revenues of $4.5 billion, we are achieving that vision together.

Colin Schottlaender

Vice President Raytheon CompanyPresident Network Centric Systems

“Inclusive recruitment is a strategic imperative of effective workforce planning. The more inclusive we are as a company, the better equipped we are to develop innovative solutions to grow and compete in domestic and international arenas.”

Peter Coroneos

Talent Acquisition Solutions & ServicesNCS Human Resources

NCS consists of many programs and business areas, including the following:

Combat Systems (CS)Combat Systems is Raytheon’s premier developer and producer of integrated ground combat surveillance and target engagement solutions. With a strong international and domestic customer base, Combat Systems provides decisive advantage to today’s warfi ghter and enables networked solutions for the future.

Command and Control Systems (C2S)Command and Control Systems is a leader in delivering transformational command and control capabilities through its position as a Mission Systems Integrator. C2S delivers best-in-class capabilities that enable network-centric solutions via agile and responsive command and control systems and functionality. C2S consists of fi ve product areas: Integrated Command Systems, Strategic Transportation Systems, Security Solutions, Air Traffi c Management and Future Combat Systems.

Integrated Communications Systems (ICS)Raytheon’s Integrated Communications Systems (ICS) is a leading provider of military communications solutions for defense transformation. Raytheon’s expertise and cutting-edge integrated network solutions span the radio and light spectrum, enabling knowledge dominance required to control the battlefi eld and win.

Operations and Precision Components (OPC)Operations and Precision Components is a diversifi ed group of product lines providing capabilities, technologies and products serving both external and internal customers. Raytheon Vision Systems (RVS) and Raytheon ELCAN Optical Technologies together provide imaging solutions using focal plane arrays and optical systems for a wide variety of applications. RVS is a vertically integrated world leader in sensor products for thermal imaging and remote sensing applications.

ELCAN is a premier supplier of optical solutions for defense, industrial and commercial applications. Raytheon Precision Manufacturing provides a full spectrum of designed and fabricated products supporting Raytheon Programs across the company. Together, these four product lines generate a strategic diff erentiation for the required system solution in the markets they serve.

International BusinessELCAN Málaga, Spain

Raytheon Canada Limited

Raytheon U.K.Raytheon Company’s U.K. subsidiary, Raytheon Systems Limited (RSL), is a high technology company aspiring to be the most admired U.K. provider of aerospace, defense and civil electronics solutions through world-class people and technologies.

Th e company has defi ned its core markets as Sensing, Eff ects, C3I, Mission Support and National Security. By working closely with its parent company in the U.S., RSL provides customers with comprehensive, tailored and low-risk solutions to their needs.

ThalesRaytheonSystems Created in June 2001, Th alesRaytheonSystems (TRS) is the fi rst transatlantic alliance between two global defense companies: Raytheon Company and Th ales Group. TRS specializes in command and control systems and battlefi eld radar.

Get involved with NCS’ current major initiatives: Military & Civilian Command & Control SystemsSurveillance and Targeting Systems (HTI; ITAS)Networked Sensors (M1A2 Fire Control System)High Bandwidth Multi-Level Security CommunicationsAir Traffi c Automation & Terminal SystemsHomeland Security Port & Border Surveillance

International Locations

BRAZILRio de Janeiro

CANADAToronto (Woodbridge and Midland), Ont.Waterloo, Ont.

FRANCEMassy

SPAINMálaga

UNITED KINGDOM Bristol Broughton Fylingdales Glenrothes Harlow Londonderry Uxbridge (HQ in the U.K.) Waddington

CALIFORNIABrea FullertonGoleta

COLORADOColorado Springs

FLORIDALargoOrlandoSt. Petersburg

INDIANAFort Wayne

MARYLANDAberdeenTowson

VIRGINIAAlexandriaArlingtonFalls ChurchSpringfi eld

MASSACHUSETTSMarlboroughTewksburyWaltham

NORTH CAROLINARaleigh

TEXASDallasMcKinney (NCS HQ)PlanoRichardson (ELCAN)

WASHINGTON, D.C.Washington District Offi ce

Network Centric Systems USA Locations

Raytheon is proud to offer a comprehensive, competitive benefi ts package featuring initiatives designed to protect you and your family’s health and well-being, as well as important fi nancial benefi ts to meet your needs.

Thrive – in work and life.Your Raytheon Benefi ts

Benefi ts

Raytheon is proud to offer a comprehensive, competitive benefi ts package featuring initiatives designed to protect you and your family’s health and well-being, as well as important fi nancial benefi ts to meet your needs.

MEDICAL COVERAGEChoose between a Preferred Provider Organization (PPO), Point-of-Service Plan (POS), Health Maintenance Organization (HMO), Consumer-Driven Health Plans or High-Deductible Health Plan (HDHP) with a Health Savings Account (HSA). An Out-of-Area plan is available in locations where extensive networks are not available. New online tools are available to provide medical plan selection assistance. You may also opt out of coverage and receive a $1,000 waiver.

VISION CARE COVERAGEAutomatically receive vision care coverage through the Vision Service Plan (VSP) when you elect any Raytheon medical coverage. VSP covers a range of vision care needs, including regular eye exams and eyewear. An optional Vision Plus Plan is available. If you need a higher level of vision coverage, you may instead elect the Vision Plus Plan. Th e amount you pay is based on the coverage level you choose.

DENTAL COVERAGEChoose from up to three dental options, including a High Option or company-paid Low Option, or the Dental Maintenance Organization (DMO), where available.

HEALTH CARE FLEXIBLE SPENDING ACCOUNT (FSA)Set aside pre-tax dollars to pay for eligible health care expenses such as deductibles, co-payments and services not covered or only partially covered by medical, dental and vision care plans.

DEPENDENT CARE FSAUse pre-tax dollars to pay for dependent care expenses such as childcare and some forms of adult and/or elder care.

DIRECT DEPOSITSave some time by having your paycheck directly deposited into your bank account.

LONG-TERM DISABILITY (LTD)Long-Term Disability coverage is optional. It provides income replacement when an illness or injury keeps you out of work for more than 10 consecutive weeks.

LIFERESOURCESLifeResources is Raytheon’s integrated employee assistance (EAP) and work/life resource and referral program provided to you at no cost. Off ered through United Behavioral Health, LifeResources provides employees and their household members free, confi dential resources and expertise to help deal with everything from the demands of everyday life to major life events. LifeResources counselors are available by phone or via the Internet, 24 hours a day, seven days a week.

FLEXIBLE WORK ARRANGEMENTSRaytheon off ers a number of fl exible work arrangements to meet both employee and business needs, including nontraditional work schedules such as the 9/80 program (every other Friday off ).

ADOPTION ASSISTANCEDesigned to off set your out-of-pocket costs, including legal expenses, travel, agency fees and certain medical expenses, you can receive up to a maximum of $4,000 ($5,000 for a special needs child) in adoption assistance benefi ts for each fi nalized adoption.

SHORT-TERM DISABILITY (STD)All employees are automatically enrolled, at no cost, in the basic Short-Term Disability Plan. Th is allows you to receive benefi ts if you are absent from work for six consecutive days or more due to a non-work-related disability caused by an illness, injury or pregnancy. You can elect to supplement the company-provided coverage by purchasing optional STD coverage.

EMPLOYEE INVESTMENT SERVICES (EIS)Th e EIS program through Fidelity Investments off ers opportunities for general and retirement investing and college planning, with the convenience of direct deposit and online access.

Care, value and peace of mind.

OCCUPATIONAL LTDIf you are enrolled in the LTD plan and have an annual salary of $50,000 or more, you may elect Occupational LTD coverage which pays benefi ts if you are unable to work due to a work-related illness or injury and are adversely aff ected by state maximums on workers’ compensation benefi ts.

BASIC LIFE INSURANCERaytheon provides basic life insurance at one times your annual base pay.

OPTIONAL LIFE INSURANCEYou can buy additional life insurance in coverage amounts from one to up to six times your annual base.

DEPENDENT LIFE INSURANCEIn addition to life insurance coverage for you, Raytheon off ers a variety of life insurance options for your spouse/same-sex domestic partner and dependent children.

ACCIDENTAL DEATH & DISMEMBERMENT (AD&D) INSURANCEYou can purchase coverage of one to fi ve times your annual base pay. If you choose optional AD&D insurance for your family and/or same-sex domestic partner, your dependents’ coverage will be a percentage of the amount you choose for yourself.

BUSINESS TRAVEL ACCIDENT INSURANCEYour company-paid Business Travel Accident Insurance plan provides you with accidental death and dismemberment coverage for injuries caused by a covered accident while you travel on company business.

EDUCATIONAL ASSISTANCERaytheon currently reimburses tuition and selected fees for approved courses or degree programs.

AUTO AND HOME INSURANCETh e Group Auto and Home Insurance Program off ers access to insurance coverage from two national insurance carriers — Liberty Mutual and MetLife Auto & Home®. You can apply for insurance at group rates or discounts and have the option of paying your premiums through convenient payroll deductions.

LEGAL SERVICESSignature LegalCare off ers cost-eff ective and convenient legal representation for a variety of legal issues that may arise.

LONG-TERM CARE INSURANCE Long-Term Care (LTC) insurance, off ered through MetLife, can help protect employees and their families from the high costs of long-term care.

MATCHING GIFTSRaytheon matches your contribution of $25 or more to any qualifi ed college, university or school with programs covering grades K-12, degree-granting technical institutes or graduate and professional schools.

RAYTHEON DISCOUNT PROGRAMTake advantage of discounts on clothing, travel, entertainment, gift s and much more through Raytheon’s comprehensive employee discount program.

RAYTHEON SCHOLARS PROGRAMRaytheon provides cash awards to deserving students who are eligible children of Raytheon employees. Awards may be used for costs associated with undergraduate programs, including tuition, room and board and books.

DEATH IN THE FAMILYYou may be paid for up to three days of absence due to the death of an immediate family member.

HOLIDAYSRaytheon provides 12 holidays per year — including the week off between Christmas and New Year’s! Th ere’s plenty of time to celebrate the things and people you enjoy most.

SAVINGS BONDSUnited States Savings Bonds off er certain tax advantages when purchased for yourself or your children. Bonds can be purchased conveniently through payroll deductions.

TRANSPORTATION BENEFITOff ered to employees in many states, this program provides savings on commuting expenses through pre-tax payroll deductions.

PAID TIME OFF (PTO) Employees earn paid time off according to length of service during the calendar year, as shown in the chart below. Newly hired employees are advanced a prorated number of days based on their hire date.

Years of Service

PTO Days Advanced on

January 1

PTO Days Calculated Into Hours

Less than 1 12.5 100

1 - 4 15 120

5 - 9 20 160

10 - 14 22 176

15 or more 25 200

RAYTHEON SAVINGS AND INVESTMENT PLAN (RAYSIP)RAYSIP is a 401(k) savings plan that allows you to save up to 50 percent of your pay on a pre-tax or post-tax basis (subject to federal limits). Raytheon matches 100 percent up to the fi rst 4 percent of eligible compensation you save.

JURY DUTYRaytheon continues your regular pay for up to 10 days when you are required to be in court for jury duty.

LEAVES OF ABSENCERaytheon off ers several types of leaves of absence, including medical, military, personal, educational and family. Raytheon conforms to the Family Medical Leave Act.

MILITARY RESERVE DUTYIf orders are submitted, Raytheon will pay the diff erence between your regular pay and any reserve unit pay you may receive for up to two weeks each federal government fi scal year.

RETIREMENT INCOME SAVINGS PROGRAM (RISP)A feature of the Raytheon Savings and Investment Plan (RAYSIP), RISP provides a 3 to 9 percent company contribution for employees hired or rehired on or aft er January 1, 2007. Th e contribution goes into the employee’s RAYSIP account and can be invested in any RAYSIP investment option.

Eligible dependents include your spouse/same-sex domestic partner and dependent children (until age 19 or until age 25 if a full-time student).

This summary provides a brief description of the Raytheon benefi t plans. Although Raytheon intends to continue these plans, the company retains the right to change or discontinue any of the benefi t plans described in this summary. More detailed information about the plans is included in the summary plan descriptions (SPDs), plan documents and policies. In case of discrepancies between this brochure and the SPDs and the plan documents or policies, the SPDs and plan documents or policies will govern. The information in this summary is not intended to create an employment contract between Raytheon and an individual.

“Raytheon’s health benefi ts and coverage of my domestic partner were most important to me when deciding to join this company.”

Tonie Moya

Test Engineer, Raytheon

Our compensation programs are designed to reward you for your job’s value, your work performance and other individual factors, as well as for the performance of your business and the company.

This section highlights Raytheon’s compensation programs and describes what is required to earn these valuable awards and recognition. These programs may vary by business.

Rewarding performance.An Overview of Raytheon’s Compensation Programs

Compensation

At Raytheon, there’s more to your compensation than your base salary. Our compensation system makes one or more variable pay programs available to most employees.

Specifi cally, most employees have the opportunity to share in the company’s success through either the Performance-Sharing Program (PSP) or the Results-Based Incentive (RBI) Program. Employees who are not eligible for RBI can also be considered for Achievement Awards, which recognize exceptional individual or team contributions. In addition, certain leaders are eligible for awards of restricted stock.

Attracting, retaining and motivating quality, dedicated employees provide the foundation for Raytheon’s success.

Linking Pay to Performance

Raytheon’s Performance Development ProcessRaytheon’s compensation system works together with the company’s Performance Development Process, strengthening the link between your contributions and meeting key business goals. Here’s how it works:

Setting GoalsEarly each year, the company’s leadership establishes key business goals that help focus business priorities and plans throughout the year. Included in these business goals are fi nancial metrics that drive the funding of the variable pay programs.

Performance Dialogue Raytheon’s Performance Development Process relies on frequent and open interaction between you and your leader. Engaging in performance dialogue helps reinforce desired work behaviors and identifi es performance areas that can be improved. A continuous performance dialogue also refl ects the ongoing nature of performance development and supports the three phases of Raytheon’s Performance Development Process — Setting Goals, Tracking Performance and Evaluating and Rewarding Performance.

Tracking Performance During the year, leaders have many opportunities to celebrate successes, observe behaviors, solicit and receive performance feedback from others and coach for improvement. Employees, too, track their own performance by documenting their accomplishments against objectives on their Performance Screen. In some organizations, performance is tracked and feedback is shared on a project basis.

Goals of Our Compensation System Raytheon’s compensation system off ers pay that is:• Competitive — by off ering base pay that is in line with market

averages, plus variable pay opportunities that give you the potential to earn more than employees in similar positions at other companies

• Refl ective of performance — both your performance, as measured through our Performance Development Process, and the performance of our company/businesses, as paid through our variable pay programs

Because many of our pay programs link performance to rewards, on average our top-performing employees earn more.

Evaluating and Rewarding Performance While individual performance is evaluated throughout the year, each manager/leader is required to have at least two formal discussions annually. Th e discussions focus on past performance and future career goals. Th e Performance and Development Summary documents the review and includes the leader’s assessment of the employee’s strengths and areas for improvement. It also off ers a place to plan training and development activities consistent with the employee’s needs and career plans. Th e performance rating is one of many tools that helps employees understand their overall contribution, and helps leaders implement Raytheon’s “pay-for-performance” philosophy fairly.

Th ere is an important link between performance and rewards at all levels of the organization. Raytheon’s compensation system off ers programs that reward achievement at the company, business, program, team and individual levels.

Our compensation programs include: • Base pay programs (including merit and

promotional increases) • Variable pay programs (including the Performance-Sharing

Program, Achievement Awards and the Results-Based Incentive Program)

• Restricted stock awards (all A07/E07 and above are eligible for awards)

Our success as a company and as employees is ultimately performance-based. Staying competitive means continually improving, taking advantage of available tools and new developments, seeking out opportunities for feedback and then acting on what we learn.

Th e Performance Development Process guides the alignment of goals throughout the organization and facilitates the achievement of meaningful objectives and the ongoing feedback needed to improve performance at every level.

Base Pay Starting Base Pay Each position has a salary grade, and each grade has a corresponding pay range adjusted annually to refl ect pay in the marketplace. When you are hired, you receive a starting base pay that is consistent with your position, skills, experience and education.

Merit Increases Each year, you are eligible to be considered for an increase to your base pay, known as a merit increase. Merit increases are designed to refl ect your job performance growth, as well as the marketplace. Merit increases normally occur in May and are directly linked to the Evaluating and Rewarding Performance phase of Raytheon’s Performance Development Process (see the section Linking Pay to Performance).

Promotional Increases Depending upon your performance and business needs, you may be promoted to another job with a higher grade and higher pay range. Employees who transfer to a higher-level position typically receive a promotion-related increase to their base pay to recognize the corresponding increase in job responsibilities.

Promotions may occur at any time. Th e amount of the increase depends upon a number of factors, including the pay range for the new position, the pay of others in the same position, your previous base pay and when you last received a pay increase.

Performance-Sharing Program (PSP) Th e Performance-Sharing Program pays an award to employees of a participating business when it meets or exceeds the “threshold” (or the minimum performance level) of predetermined metrics (see the section Linking Pay to Performance).

Any payout is made as a percentage of employees’ eligible earnings. Eligible earnings include base salary, overtime, Achievement Awards, lump-sum payments, shift and certain other premiums. Each year the company determines the percentage of eligible earnings it will reward employees through performance-sharing payout as long as the company and the business meet their goals. Th is is known as the “target award.”

Th e actual amount of the payout depends on how the business and the company as a whole perform in relation to the metrics, as shown below:

Combined Business/Company Performance Against Metric

Business Payout

Below threshold performance None

At or above threshold performance

Between 75% and 100% of the sum of target awards

At targeted performance 100%

Above target to maximum performance

Between 100% and 150% of the target award

At or above maximum performance

150% of the target award

When the company performs at target, employees in a business that also performs at targeted performance for the Performance-Sharing Program will receive an additional 3% of their eligible earnings — or 100 percent of their targeted payout. Th e example below shows the payout that employees of the same business would receive for varying levels of combined business and company performance against fi nancial metrics. (Th e chart assumes the employee’s eligible earnings are $50,000.)

Business Payout

Eligible Performance-Sharing Payout Percentage

Performance-Sharing Program Payment

Below threshold 0% $0

Minimum (75% of target)

(3% x 75%) = 2.25%

($50,000 x .0225) = $1,125

Target 3%($50,000 x .0300) = $1,500

Maximum (150% of target)

(3% x 150%) = 4.5%

($50,000 x .0450) = $2,250

As you can see, this program provides an excellent opportunity to add to your total compensation.

Employees represented by a collective bargaining agreement are not eligible to participate in the Performance-Sharing Program.

Our Pay ProgramsHere’s a look at the individual pay programs that make up our compensation system.

Achievement AwardsAchievement Awards provide immediate fi nancial recognition for individual or team accomplishments — there’s no waiting for program cycles or dependency on the performance of others. Leaders are free to recommend an Achievement Award whenever they feel a team member has made an exceptional contribution or a recognizable “above and beyond” eff ort.

While work that has earned an Achievement Award varies by position and business, some examples include:

• Developing a process or solution that saves time or money, or improves quality • Working with other areas of the company to develop or improve products, services or quality• Demonstrating an exceptional commitment to an aggressive work schedule or an unusually heavy temporary workload

You are encouraged to tell your leader of your team’s or co-workers’ accomplishments so they can be considered for an award.

Sample Achievement Awards Here are two examples of work that have earned an Achievement Award:

• When developing the plan for a new project, the business budgeted for two engineers to share much of the project’s workload. However, a shortage in available staff meant the second engineer was delayed in being hired. Without any request or intervention from his leader — and within the same time frame allotted for two engineers — Mel produced the design and code required for the project. He also documented the agreed upon design as well as other design trade-offs and associated issues, after top-level design discussions with the team. Despite staffi ng shortages, Mel’s work allowed the project to be completed on time and succeeded in furthering the company’s interests.

• Josh and Jane have supported a recent submarine project from the initial setup through the sell-off. Working together, they developed a unique confi guration of terminals and a periscope. To do this, they reworked an existing fi xture to fi t in the position. Josh and Jane also worked with others to make major facility changes that would support the new electrical requirements. Together, they created a successful project that earned Raytheon the full incentive fee, worth many thousands of dollars.

Who’s Eligible • Employees of participating businesses and/

or locations. Participants in the Results-Based Incentive Program are not eligible

When It’s Awarded • Anytime • This bonus program is designed to

immediately reward individual or team performance with cash payouts of between $100 and $7,000

• Awards are normally paid as part of your regular paycheck

BASE PAYWho’s Eligible • All employees

When It’s Paid • Weekly or biweekly, depending on your business • Annual merit increases normally happen in May, after the end

of the previous year’s Performance Development Process • Your base pay can also increase if you are promoted, i.e., transfer

to a job with greater responsibilities

PERFORMANCE-SHARING PROGRAMWho’s Eligible • Employees of participating businesses and/or locations. You

cannot be participating in another similar program, such as the Results-Based Incentive Program; and you must be actively at work or on an approved leave of absence on December 31

• Eligible earnings while on a Performance Improvement Program (PIP) will not be counted for Performance-Sharing purposes

When It’s Paid• Annually, as long as minimum performance levels are met • Payments generally occur in late February/early March of the

following year as part of your regular paycheck

Results-Based Incentive (RBI) ProgramSimilar to how base pay varies in the marketplace, variable pay also diff ers — particularly at senior and executive levels. Th e Raytheon Results-Based Incentive Program provides eligible participants with an opportunity to earn an annual cash award that is linked to business results, as measured by the fi nancial funding metrics, as well as individual results.

Th e percentage of pay any recipient may be eligible to earn (the incentive target) is determined each year and depends upon a number of variables, including:

• Th e pay grade of the position• Competitive variable pay levels • Th e recipient’s past performance and criticality to

the business• Aff ordability or the state of Raytheon’s business

Similar to the Performance-Sharing Program (PSP), RBI payouts are funded by totaling the target awards for all participants in a business, adjusted by the extent to which the company and the business meet or exceed their metrics. Generally, funding for any given metric is determined as follows, but may vary: z

Combined Business/ Company Performance Against Metric

Business Funding

Below threshold performance None

At or above threshold performance

Between 75% and 100% of the sum of target awards

At targeted performance 100% of the sum of target awards

Above target to maximum performance

Between 100% and 150% of the sum of target awards

At or above maximum performance

150% of the sum of target awards

In addition to the fi nancial metrics, Raytheon’s Chief Executive Offi cer may increase or decrease funding of the program based on an assessment of the business’s performance on criteria such as customer satisfaction, people, growth and productivity.

Th is chart shows how funding is determined for an individual RBI award for varying levels of combined business and company performance against fi nancial metrics. (Th e chart assumes the recipient’s RBI target is 15% and base pay as of June 30 is $100,000.)

Business FundingRBI Funding Percentage

Individual RBI Award Funding

Below Threshold 0% $0

Minimum (75% of target)

(15% x 75%) = 11.25%

($100,000 x .1125) = $11,250

Target 15% ($100,000 x .1500) = $15,000

Maximum (150% of target)

(15% x 150%) = 22.5%

($100,000 x .2250) = $22,500

Unlike the Performance-Sharing Program, the RBI Program also takes individual performance into consideration. While company and business performance drive funding for the RBI Program, any individual’s award is based on leadership’s overall assessment of that recipient’s performance against his/her objectives. Th is means that the business or organization can divide its total funding in such a way that recipients who are higher performing receive higher payments.

In the example above where funding is at target ($15,000), the individual could receive from $0 to $30,000, based on individual performance, contribution and other factors. Th e maximum award any recipient may receive equals 200 percent of the target award.

Who’s Eligible • Senior leaders and key contributors, and selected others who are actively at work or on an approved leave of

abstove are eligible). At the manager’s discretion, a pro-rated payment may be made to a former RBI-eligible employee (or his/her benefi ciary) who terminated during the year due to retirement, layoff or death

• Participants in the RBI Program are not eligible for payouts from either the Performance-Sharing or Achievement Award Programs. Eligible employees who are on a Performance Improvement Program (PIP) will not receive an RBI payout

When It’s Paid • Annually • Payments generally occur in late February/early March of the following year as part of your regular paycheck

Restricted Stock Program Each year, Raytheon awards a limited number of shares of restricted stock. A restricted stock award is an award of shares that provides the recipient with current ownership rights, but is not saleable or transferable until certain restrictions lapse. While recipients are restricted from selling or transferring these shares for a specifi ed period of time, recipients do receive dividends on their shares, just as they would on Raytheon common stock they own outright.

During the period when the stock is restricted, awards have value. Th e value of the award is equal to the market price of a share of Raytheon common stock multiplied by the number of shares awarded.

For example, if a participant receives a restricted stock award of 750 shares and the Fair Market Value (FMV) of Raytheon common stock is $39 that day, the award has a value of $29,250.

As the price of the stock increases, so does the value of the restricted stock award. Using the above example, if the future market price is $41, the award is worth $30,750. If the market price decreases, restricted stock awards still have value. Using the above example again, if the future market price is $25, the award is worth $18,750.

As shareholders of record, restricted stock recipients have all voting and other rights of Raytheon common stock owners. Th e only restriction is that restricted stock recipients may not sell or transfer their shares until the restricted period lapses. Th e general timetable for restrictions to lapse is as follows:

• 33 percent of the total award two years from the date of award• 33 percent of the total award three years from the date of award• Th e remaining shares four years from the date of award

As restrictions lapse, shares are sold to cover taxes owed at that time, including the supplemental federal rate (currently 25 percent), FICA/Medicare (currently 7.65 percent) and state/local taxes.

If the recipient remains employed by Raytheon until the restricted period ends, he/she gains full control of all the shares (less shares sold to pay taxes) regardless of employee or company performance. At that time, a recipient may sell, pledge or otherwise transfer ownership of his/her shares.

Who’s Eligible • Senior leaders and key contributors

When It’s Paid • Annually • Dividends on the total award are paid

quarterly • Recipients gain control of the stock

shares as the restrictions on their award lapse over four years

At Raytheon, we take great pride in offering a comprehensive and competitive compensation program. From important customer relationships to operational knowledge, we understand the value our employees bring to the company and the role they play in our long-term success. Raytheon’s compensation programs are designed to share that success with those who make it happen.

Compensation for employees who are represented by a bargaining unit will be in accordance with their collective bargaining agreement. Compensation for Service Contract Act and Davis Bacon Act employees will continue to be administered in accordance with those laws.

The programs described in this section are an important part of Raytheon’s commitment to our employees. However, Raytheon reserves its right to terminate, suspend, withdraw, amend or modify any of its compensation programs in whole or in part at any time, to the extent permitted by law.

The information in this section is only an overview and does not give full details or cover all aspects of each program. While every effort has been made to make this section as accurate as possible, each compensation program’s plan document will govern if any inconsistencies between this section and the plan document exist.

Any questions concerning any program shall be determined in accordance with the provisions of its plan document, not this section. This section does not serve as, and is not part of, the offi cial plan document for any program, plan or policy.

Learning More

Let Raytheon make the transition into your new job, location and life easier with our helpful relocation benefi ts.

Go the distance with Raytheon.Experienced Professional Relocation Benefi ts

Relocation

Let Raytheon make the transition into your new job, location and life easier with our helpful relocation benefi ts.

For Renters

Lease CancellationNeed to relocate before your lease expires? We’ll reimburse up to three months’ rent for lease cancellation penalties.

Home Search AssistanceLook around before settling down. We’ll cover specifi c expenses incurred from one round trip visit to your new location.

Temporary Living ExpenseFinding the perfect dwelling may take time. Enjoy lodging and meal expense reimbursement for up to 45 days on us.

Travel to New LocationWe hope to see you soon – and we’ll reimburse the cost of economy/coach class accommodations via air/rail or mileage and hotel/meal cost if you’re traveling in your personal vehicle.

Moving CostsLetting someone else do the heavy lift ing? If you’re using a third-party carrier, we’ll lend a hand with the following:

• Pack and move up to 20,000 pounds of household goods• Shipment of two automobiles• Storage of household goods for up to 60 days

More of a do-it-yourself mover? You can still count on us for the following:

• Own vehicle – reimbursement of mileage and tolls• Rental truck – reimbursement of rental charges and cost of

gasoline and tolls

For Recent College Graduates

Enjoy a lump sum payment of $2,000 to help with your relocation expenses.

Travel Take a seat and enjoy reimbursement of the cost of economy/coach class accommodations via air/rail or mileage and hotel/meal cost if you’re traveling in your own vehicle.

Destination ServicesWe’ll help you identify your housing needs and coordinate referrals to local qualifi ed real estate brokers or rental agents.

Moving CostsGet a move on with a third-party carrier or move it yourself. Pack and move up to 5,000 pounds of household goods.

For Homeowners

Home Sale Assistance for Primary Residence

Marketing Assistance ProgramWe’ll work with you to establish a sales strategy and listing for your home.

Duplicate Housing ExpensesTwo homes don’t have to mean double trouble. We’ll cover expenses up to 60 days as long as your old home is vacant and for sale.

Home Purchase Assistance for Primary ResidenceNo need to be deluged by new home purchasing costs. Let us take care of some of the responsibility.

Mortgage Interest DifferentialA new location could mean diff erent economic conditions. If you’re required to pay a 2-5 percent higher interest rate on your new home because of this, we’ll cover the diff erence for up to three years.

Cartus

The world’s premier provider of global mobility management and workforce development solutions administers Raytheon’s Relocation Benefi ts. As a global employer of choice, Raytheon has partnered with Cartus to offer you a wide range of benefi ts designed to meet your needs and ensure you make a smooth transition during your program.

Cartus will guide you through the entire relocation process. Our team is available to assist you with:

• Expert guidance throughout the process addressing your concerns and specifi c needs• A network of real estate professionals and suppliers trained specifi cally to meet the needs of relocating employees

and their families• “Best In Class” Customer Service

Summary of Raytheon Relocation Benefi ts

If you are considering a position with Raytheon Company that requires relocation, whether you’re moving across town or across country, Raytheon wants you to have the best possible experience. Here is important information to assist you in making the right choice.

For Professional Homeowners, your benefi ts will provide assistance in:

Marketing and selling your home. Benefi t highlights include:

• Reimbursement of real estate commission

• Attorney fees

• Transfer tax and recording fees

Other benefi ts include:

• Temporary housing

• House hunting trip

• Household goods move

• Miscellaneous expense allowance

• Lump sum option in lieu of temporary living lodging and house hunting trip reimbursement

• Assisting with the selection and purchase of a new home

• Mortgage assistance through our sister company, Cartus Home Loans, which provides a broad array of mortgage products specifi cally designed for the relocating employee

• Duplicate housing payments

• Spouse assistance

• Final trip

For Professional Renters, your benefi ts will provide you with assistance in:

Finding a new home through our network rental locators. Service will include an information package, area tour and apartment tours.

Other benefi ts include:

• Lease termination

• Temporary housing

• House hunting trip

• Household goods move

• Miscellaneous expense allowance

• Spouse assistance

• Final trip

• Lump sum option in lieu of temporary living lodging and house hunting trip reimbursement

For Recent College Graduates, your benefi ts will provide you with assistance in:

• Lump sum

• Household goods move

• Final trip

Important Information

Th is is only a summary of Raytheon’s relocation benefi ts. It is not an off er of employment. All benefi ts are determined aft er the acceptance of an off er of employment.

All provisions of the benefi ts are administered in accordance with Raytheon Policy and Procedures #0000000027-RP and 31-6020-110.

Log on to https://pretransfer.cartus.com for useful information on selling, buying and neighborhood data.

Contact your Client Services Consultant at 800.343.8095 for additional details.

Raytheon has an unwavering commitment to building an inclusive culture – one that recognizes uniqueness, empowers each employee, values all contributions and contributors and leverages our diverse workforce.

Innovative thinking. Creative solutions. Diverse talent.Diversity and Inclusion

Diversity

At Raytheon, we recognize and encourage initiatives that promote the spirit of inclusion and diversity in the workplace. We are proud to have a variety of Employee Resource Groups through which employees can network with one another, communicate and share ideas about diversity and develop personally and professionally.

“Raytheon’s inclusive policies allow me to bring my whole self to work. Raytheon is recognized for its inclusiveness by national organizations, including the Human Rights Campaign Foundation which scores Raytheon at 100 percent on its Corporate Equality Index.“

Gib Murray

North Texas Process Assurance ManagerNetwork Centric Systems, Raytheon Company

Employee Resource Groups

Raytheon Black Employees Network (RAYBEN)Raytheon Black Employees Network assists African-American employees in reaching their full performance and career potential by promoting and understanding Raytheon’s core values, business objectives and career opportunities. Th is group improves Raytheon’s ability to identify and pursue partnerships with respect to the African-American and wider business communities.

Raytheon Asian Pacifi c Association (RAPA)Raytheon Asian Pacifi c Association’s charter is to establish Raytheon as an employer of choice for Asian Pacifi c employees by fully reaping the benefi ts of their strengths from its diverse workforce. RAPA encourages personal growth and cultivates upward mobility of Asians within Raytheon and the community through outreach and service.

Raytheon American Indian Network (RAIN)Raytheon American Indian Network’s mission is to provide an employee forum dedicated to improving and enhancing the professionalism of its membership and promoting awareness of the American Indian culture within Raytheon.

Hispanic Employees Network Th e Hispanic Employees Network (through specifi c groups such as the Hispanic Organization for Leadership and Advancement) strives to serve as a liaison for the Hispanic community across Raytheon and to deliver valuable resources to further our employees’ personal and professional development while supporting Raytheon’s Vision and Goals.

Gay, Lesbian, Bisexual, Transgender and Allies (GLBTA)Th is Employee Resource Group seeks to foster an environment where gay, lesbian, bisexual and transgender Raytheon employees maximize their productivity and are fully integrated as respected members of the Raytheon team.

“Supporting an inclusive culture is about actions and choices that support an organization where everyone feels engaged.

Our goal is to foster diversity competency, success, innovation, communication and respect.”

Susana Escalante

Inclusion Leader, Network Centric Systems

Raytheon Women’s Network (RWN)Raytheon Women’s Network provides networking and mentoring opportunities, positive role models, and support and guidance, while supporting Raytheon’s goals of diversity, company and community outreach, and employee recruitment and retention. Th e goal of this group is to work with Raytheon leadership to facilitate a comfortable and rewarding workplace for women. Raytheon was recently named one of the top ten “Best Companies for Women to Work” by IEEE Women in Engineering magazine.

Raytheon Persons with Disabilities Association (RPDA)Th is highly regarded organization provides both a forum and a voice for disability issues in the workplace, and is a model for inclusion in the company and community. Th is commitment has resulted in Raytheon’s selection to the “Top 50 Employers for Providing a Progressive Environment for People with Disabilities” by Careers & the disABLED magazine in both 2004 and 2005.

Other Networks

Middle Eastern Employee Network Association (MEENA)MEENA’s mission is to educate Raytheon employees about the wealth and diversity in culture and customs prevalent in the Middle East. Sharing the positives of the Middle Eastern customs with the Raytheon community will lead to a new appreciation of the many peoples that comprise the Middle East together with their values. Given the global customer base that Raytheon enjoys, MEENA also strives for eliminating any cultural barriers with potential customers, a step that could help attain future business.

Young Engineers & Scientists or Young Employee Success Network (YESnet)YESnet’s mission is to address the needs of new employees by providing outreach programs, communication with upper management, program contacts, seminars for professional and personal development, social events and other peer networking opportunities.

Raytheon Multicultural Multilingual Employee Connection (RAMMEC) Are you curious about other cultures? Do you need something translated? Th e award-winning Raytheon Multicultural Multilingual Employee Connection (RAMMEC) Community of Practice (CoP) is your answer.

Diversity and Inclusion

VisionAn inclusive culture that inspires creativity, stimulates individual growth and delivers business performance excellence.

Strategies

WorkforceRecruit, attract, develop, recognize, reward and retain world-class talent.

Off er continuous learning resources and experiences that support the dimensions of diversity and inclusive behaviors.

WorkplaceProvide an inclusive culture that engages all employees to reach their full potential and make their maximum contributions.

Marketplace Strengthen partnerships and brand recognition through trust and respect with customers, suppliers, communities and other stakeholders.

“Today, diversity and inclusion are more than just a competitive advantage. They are a competitive imperative. That makes the issue of inclusion one that ultimately falls on leadership. And I couldn’t be more proud to be part of an organization that embraces differences as a core value.”

Hayward Bell

Chief Diversity Offi cer, Raytheon Company

Spreading innovation and goodwill throughout the community.Community Involvement

Many Raytheon employees express their spirit of generosity by making contributions to charities through payroll deductions. Our partnership with VolunteerMatch, a national Web-based nonprofi t organization, is an excellent resource for matching employees with unique and rewarding volunteer opportunities. Com

munity Involvem

ent

The following are just a few of the ways we’re making a difference by giving of ourselves:

Whether it’s reaching out to fellow employees, supporting our communities or creating pathways to educate future generations, at Raytheon we are committed to creating positive change through charitable giving and volunteering.

MathMovesULaunched by Raytheon in 2005, MathMovesU is an education initiative designed to inspire middle school students to study math and spark future interest in possible careers in engineering, research, programming and science. Raytheon’s primary partner in the MathMovesU initiative is MATHCOUNTS®, a national math enrichment, coaching and competition program that promotes middle school mathematics achievement through grassroots involvement in every U.S. state and territory.

MathMovesU Scholarships and GrantsRaytheon is proud to off er the MathMovesU Scholarship Program. Th is program is intended to encourage enthusiastic participation in math among both students and teachers. Scholarships and matching grants are off ered to middle school students, their teachers and their schools. Raytheon’s $1 million MathMovesU Grant and Scholarship Program funds classroom help for teachers, provides grants to teachers and schools to support math education, and off ers scholarships to students who write about how they’re “making math cool.”

Raytheon Disaster Relief FundTh rough this fund, Raytheon and its employees join together to alleviate suff ering caused by devastating events. Grants are made for general disaster relief and for employees who have faced catastrophic events.

The Fund in Support of Our TroopsTh is fund makes grants to help meet the needs of American troops in all military branches and their families.

DonorsChooseBy supporting DonorsChoose, we can help provide students in need with resources that our public schools oft en lack.

Matching Gifts for Education ProgramEmployees can make donations to eligible public and private, elementary and secondary schools, community colleges and universities – with a matching gift from Raytheon. Raytheon also matches employee gift s to the United Negro College Fund, the American Indian College Fund and the Hispanic Association of Colleges and Universities.

Scholarships for Children of Raytheon EmployeesTh is initiative supports a wide range of educational options for children of employees, including vocational and technical training and associate and bachelor’s degrees.

FIRST Robotics ScholarshipTh is Raytheon-established scholarship assists FIRST Robotics team members and competitors who plan to continue their education in college as math, science or technology majors.

Be at your best – physically and mentally. Get pumped with Raytheon Fitness Centers. From stimulating education and wellness programs to state-of-the-art cardio and weight equipment, take advantage of an extensive array of services and machines available to you.

Powering forward with healthy minds, bodies and spirits.Raytheon Fitness Centers

Fitness

Elliptical TrainersDumbbells (5 lb. - 120 lb.)Sand Volleyball Court

TreadmillsStationary BicyclesDry & Wet Saunas

StairclimbersGroup ExerciseBasketball Court

WhirlpoolsOutdoor TrackTennis Courts

Wellness StationsBlood Drives, Flu Shots

Massage Th erapy, Relaxation Room

Wellness Coaching and Seminars (Stress Management, Organizational Eff ectiveness)

Wellness Fairs (Cholesterol, Triglyceride, Glucose, Blood Pressure, Body Compensation), Screenings and Consultations

Health Clinics

Fitness CentersTowson, Md. (unstaff ed, 24 hours)

Marlborough, Mass. (2 full-time staff , open during staff ed hours)

Bardmoor, Fla. (1 full-time staff , 24 hours)

Ft. Wayne, Ind. (1 full-time staff , 24 hours)

McKinney, Texas (3 full-time staff , open during staff ed hours)

Dallas, Texas – Lemmon Avenue (1 full-time staff , 24 hours)

WorkLife ServicesEmployee Clubs (Toastmasters, Bass Fishing, Motorcycle)

Recreational Sports and Activities

Site Special Events (Easter Egg Hunt, Holiday Party, Employee Appreciation Lunches)

Employee Rewards & Recognition

By providing a coordinated delivery of programs that promote total employee health and well-being, we have created opportunities to support and enhance the quality of life and work of employees...one individual at a time.

Health Promotions, Wellness Education and Support Services

Amenities*

*Not offered at all Raytheon Fitness Center locations