Document:

Executive Employment Agreement between Robert H. Saunders, Jr. and Kaman Music
      Corporation

    
      

    

    Exhibit 10.5

    EXECUTIVE
      EMPLOYMENT AGREEMENT

     

     

    This
      EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) is effective
      as of
January
      1, 2007
      (the
“Effective Date”) between Kaman Music Corporation (the “Company”), a subsidiary
      of Kaman Corporation (a Connecticut corporation) (“Kaman”), and Robert H.
      Saunders, Jr. (the “Executive”).

     

    W
      I T N E
      S S E T H:

     

    WHEREAS,
      the Executive is currently employed as the President of the
      Company;

     

    WHEREAS,
      the Company has offered to continue employing the Executive on the terms set
      forth below; and

     

    WHEREAS,
      the Executive has agreed to continued employment with the Company on the terms
      as set forth below;

     

    NOW
      THEREFORE, in consideration of the foregoing, of the mutual promises contained
      herein and of other good and valuable consideration, the receipt and sufficiency
      of which are hereby acknowledged, the parties hereto hereby agree as
      follows:

     

    1. EMPLOYMENT
      TERM. 

     

    The
      Executive’s term of employment under this Agreement shall be for a term
      commencing on the Effective Date and, unless terminated earlier as provided
      in
      Section 7 hereof, ending on June 30, 2007 (such term of employment is herein
      referred to as the “Employment Term”).

     

    2. POSITION
      & DUTIES.

     

    (a) The
      Executive shall serve as the President of the Company under this Agreement
      during the Employment Term. As President of the Company, the Executive shall
      have such duties, authorities and responsibilities commensurate with the duties,
      authorities and responsibilities of persons in similar capacities in similarly
      sized companies and such other duties and responsibilities as the CEO of Kaman
      or the Company’s Board of Directors (the “Sub Board”) shall designate that are
      consistent with the Executive’s position as President of the
      Company.

     

    (b) During
      the Employment Term, the Executive shall use the Executive’s best reasonable
      efforts to perform faithfully and efficiently the duties and responsibilities
      assigned to the Executive hereunder (including applicable obligations under
      state law)
      and
      devote substantially all of the Executive’s business time (excluding periods of
      vacation and other approved leaves of absence) to the performance of the
      Executive’s duties with the Company, provided the foregoing shall not prevent
      the Executive from (i) participating in charitable, civic, educational,
      professional, community or industry affairs or, with prior written approval
      of
      the Sub Board, serving on the board of directors or advisory boards of other
      companies; and (ii) managing the Executive’s and the Executive’s family’s
      personal investments so long as such activities do not materially interfere
      with
      the performance of the Executive’s duties hereunder or create a potential
      business conflict or the appearance thereof. If at any time service on any
      board
      of directors or advisory board would, in the good faith judgment of the Sub
      Board, conflict with the Executive’s fiduciary duty to the Company or create any
      appearance thereof, the Executive shall promptly resign from such other board
      of
      directors or advisory board after written notice of the conflict is received
      from the Sub Board.

     

    
      
        
        

      

      
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    (c) The
      Executive further agrees to serve without additional compensation as an officer
      and director of any of the Company’s subsidiaries and agrees that any amounts
      received from any such corporation may be offset against the amounts due
      hereunder. 

     

    3. BASE
      SALARY. The Company agrees to pay the Executive a base salary (the “Base
      Salary”) during the Employment Period at an annual rate of $307,000 (subject to
      possible increase if Kaman’s Board of Directors (the “Parent Board”), in its
      sole discretion, so determines), payable in accordance with the regular payroll
      practices of the Company, but not less frequently than monthly. 

     

    4. BONUSES.
      The Executive shall be eligible to participate in the Company’s bonus and other
short-
      and long-term
      incentive compensation plans and programs for the Company’s senior executives at
      a level commensurate with the Executive’s position during the Employment Term.
      The Executive shall have the opportunity to earn an annual target bonus measured
      against performance criteria to be determined by the Parent Board (or a
      committee thereof) of at least 50% of Base Salary as an initial target bonus
      opportunity as
      described in
      the
      terms of the Company’s annual bonus plan as then in effect. Except as provided
      under Section 8 of the Agreement, the Executive shall receive payments with
      respect to the plans and programs described in this Section 4 in accordance
      with
      the terms of such plans and programs.

     

    5. EQUITY
      AWARDS. The Executive shall be eligible to receive additional grants of stock
      options, stock appreciation rights, restricted stock and other equity awards
      at
      the sole discretion of the Parent Board or its Personnel and Compensation
      Committee (the “Committee”). The Executive shall be subject to, and shall comply
      with, Kaman’s stock ownership guidelines (unless waived by the Compensation
      Committee) and Kaman’s reasonable
      policies
      regarding forfeitures of cash and equity incentive awards due to material
      financial restatements due to executive misconduct, as may be in effect from
      time to time,
      it
      being agreed that any such policies shall only be effective with respect to
      awards made on or after the Effective Date.
      If
      there is a Change in Control (as defined in the Kaman Corporation 2003 Stock
      Incentive Plan in effect on the date hereof), all then outstanding unvested
      equity awards granted to the Executive (for example, stock options, stock
      appreciation rights and restricted stock), whether under this Agreement or
      otherwise, will fully vest
      and
      become non-forfeitable and
      remain
      exercisable in accordance with the terms of the applicable Company
      plans.

     

    6. EMPLOYEE
      BENEFITS.

     

    (a) BENEFIT
      PLANS. The Executive shall be entitled to participate in all employee benefit
      plans of the Company including, but not limited to, pension, thrift, profit
      sharing, medical coverage, education, other retirement or welfare benefits
      and
      perquisites (as approved by the Committee) that the Company has adopted or
      may
      adopt, maintain or contribute to for the benefit of its senior executives at
      a
      level commensurate with the Executive’s position subject to satisfying the
      applicable eligibility requirements. 

     

    
      
        
        

      

      
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    (b) VACATION.
      The Executive shall be entitled to at least 3 weeks paid vacation per year.
      Vacation may be taken at such times as the Executive elects with due regard
      to
      the needs of the Company. Unused vacation at the end of a calendar year shall
      be
      forfeited according to the Company's vacation policy.

     

    (c) AUTOMOBILE.
      The Company shall provide the Executive with a leased automobile as approved
      by
      the Committee as per the Company’s perquisites policy from time to
      time.

     

    (d) BUSINESS
      AND ENTERTAINMENT EXPENSES. Upon presentation of appropriate documentation,
      the
      Executive shall be reimbursed in accordance with the Company’s expense
      reimbursement policy for all reasonable and necessary business and entertainment
      expenses incurred in connection with the performance of the Executive’s duties
      hereunder.

     

    (e) CERTAIN
      AMENDMENTS. Nothing herein shall be construed to prevent the Company from
      amending, altering, eliminating or reducing any plans, benefits or programs
      so
      long as the Executive continues to receive compensation and benefits consistent
      with Sections 3 through 6.

     

    (f) LIFETIME
      LIFE INSURANCE. During the Employment Term and thereafter (regardless of the
      reason for the termination of the Employment Term), the Company shall cause
      Kaman to continue to make regular periodic premium payments for life insurance
      coverage issued under the Senior Executive Life Insurance Program for the
      remainder of the Executive’s life.

     

    7. TERMINATION.
      The Executive’s employment and the Employment Term shall terminate on the first
      of the following to occur:

     

    (a) DISABILITY.
      Upon written notice by the Company to the Executive of termination due to
      Disability, while the Executive remains Disabled. For purposes of this
      Agreement, “Disability” shall be deemed the reason for the termination by the
      Company of the Executive’s employment, if, as a result of the Executive
      incapacity due to physical or mental illness, the Executive shall have been
      absent from fully performing the Executive’s duties with the Company for a
      period of 6 consecutive months, the Company shall have provided a notice of
      termination under this Section 7(a), and, within thirty days after such notice
      being given, the Executive shall not have returned to the fully performing
      the
      Executive’s duties hereunder.

     

    (b) DEATH.
      Automatically on the date of death of the Executive.

     

    
      
        
        

      

      
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    (c) CAUSE.
      Immediately upon written notice by the Company to the Executive of a termination
      for Cause. “Cause” shall mean (i) Executive’s conviction of (or a plea of guilty
      or nolo contendere to) a felony or any crime involving moral turpitude,
      dishonesty, fraud, theft or financial impropriety; or (ii) a determination
      by a
      majority of the Parent Board in good faith that Executive has (A) willfully
      and
      continuously failed to perform substantially the Executive’s duties (other than
      any such failure resulting from the Executive’s Disability or incapacity due to
      bodily injury or physical or mental illness), after a written demand for
      substantial performance is delivered to the Executive by the Parent Board that
      specifically identifies the manner in which the Parent Board believes that
      the
      Executive has not substantially performed the Executive’s duties, (B) engaged in
      illegal conduct, an act of dishonesty or gross misconduct, in each case which
      is
      in the course of the Executive’s employment and materially injurious to Kaman or
      the Company, or (C) willfully violated a material requirement of Kaman’s or the
      Company’s code of conduct or the Executive’s fiduciary duty to the Company. No
      act or failure to act on the part of the Executive shall be considered “willful”
unless it is done, or omitted to be done, by the Executive in bad faith and
      without reasonable belief that the Executive’s action or omission was in, or not
      opposed to, the best interests of the Company. Notwithstanding the foregoing,
      Cause shall not include any act or omission of which the Audit Committee of
      the
      Parent Board (or the full Parent Board) has had actual knowledge of all material
      facts related thereto for at least 90 days without asserting that the act or
      omission constitutes Cause.

    

    (d) WITHOUT
      CAUSE. Upon written notice by the Company to the Executive of an involuntary
      termination without Cause and other than due to death or
      Disability.

     

    (e) GOOD
      REASON. Upon written notice by the Executive to the Company of a termination
      for
      Good Reason, unless such events are corrected in all material respects by the
      Company within 30 days following written notification by the Executive to the
      Company, that the Executive intends to terminate the Executive’s employment
      hereunder for one of the reasons set forth below. “Good Reason” shall mean,
      without the Executive’s express written consent, the occurrence of any of the
      following events:

     

    (1) the
      Company removing the Executive from the position of President of the Company
      (other than for Cause);

     

    (2) a
      reduction of the Executive’s Base Salary,
      annual
      initial target bonus opportunity
      or
      modified bonus opportunity to the extent the modification to the initial target
      bonus opportunity is adverse to the Executive relative to the modification
      made
      to the initial target bonus opportunity of other senior officers of the
      Executive’s business unit;

     

    (3) a
      failure
      to pay the Executive’s compensation or benefits provided or referred to under
      this Agreement;

     

    (4) the
      Executive being required to relocate to a principal place of employment more
      than 50 miles from the Executive’s principal place of employment with the
      Company as of the Effective Date;

     

    (5) the
      assignment of duties to the Executive that are materially inconsistent with
      the
      Executive’s position as President of the Company; or

     

    (6) the
      Executive no longer being a direct report to the CEO of Kaman prior to a Change
      in Control (as defined in the Change in Control Agreement).

     

    
      
        
        

      

      
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    Notwithstanding
      the foregoing, (i) a suspension of the Executive’s title and authority while on
      administrative leave due to a reasonable belief that the Executive has engaged
      in misconduct, whether or not the suspected misconduct constitutes Cause for
      employment termination, shall not be considered “Good Reason”; provided that if
      such leave is unpaid and either the Executive returns to full-time employment
      under this Agreement or it is subsequently determined the Executive’s employment
      is to be terminated without Cause, then the compensation and benefits that
      would
      have been payable during such leave will be paid as soon as reasonably
      practicable with interest at the prime rate beginning as of the date such leave
      commenced plus 100 basis points; (ii) an event shall not be considered Good
      Reason if the Executive fails to deliver notice of termination for Good Reason
      within 90 days of the Executive’s actual knowledge of the event, and (iii)
      prospective changes to employee benefits (as defined in Section 6) for future
      employment made on an across-the-board basis to all similarly situated
      executives of the Company and its subsidiaries shall not be considered Good
      Reason.

     

    (f) WITHOUT
      GOOD REASON. Upon 60 days’ prior written notice by the Executive to the Company
      of the Executive’s termination of employment without Good Reason (which the
      Company may, in its sole discretion, make effective earlier than any notice
      date).

     

    (g) RETIREMENT.
      Upon remaining
      employed with the Company until at least March 31,
      2007
      (the
“Retirement Eligibility
      Date”). Nothing herein shall be construed as limiting the Executive’s right, if
      any, to terminate employment prior to the Retirement Eligibility Date and
      receive compensation and benefits, as applicable, provided under the respective
      terms of the Company’s benefit plans.

     

    8. CONSEQUENCES
      OF TERMINATION. Any termination payments made and benefits provided under this
      Agreement to the Executive shall be in lieu of any termination or severance
      payments or benefits for which the Executive may be eligible under any of the
      plans, policies or programs of the Company or its affiliates as may be in effect
      from time to time including but not limited to the Change in Control Agreement.
      Except to the extent otherwise provided in this Agreement, all benefits,
      including, without limitation, stock options, stock appreciation rights,
      restricted stock units and other awards under the Company’s long-term incentive
      programs, shall be subject to the terms and conditions of the plan or
      arrangement under which such benefits accrue, are granted or are awarded.
      Subject to Section 9, the following amounts and benefits shall be due to the
      Executive.

     

    (a) DISABILITY.
      Upon employment termination due to Disability, the Company shall pay or provide
      the Executive (i) any unpaid Base Salary through the date of termination and
      any
      accrued vacation in accordance with Company policy; (ii) any unpaid bonus or
      other short-term and long-term incentive compensation as described in Section
      4
      above earned with respect to any completed fiscal year; (iii) reimbursement
      for
      any unreimbursed expenses incurred through the date of termination; (iv) all
      other payments and benefits to which the Executive may be entitled under the
      terms of any applicable compensation arrangement or benefit, equity or
      perquisite plan or program or grant or this Agreement, including but not limited
      to any applicable pension, retirement and insurance benefits (collectively,
      “Accrued Amounts”). Executive will also be paid a pro-rata portion of the
      Executive’s annual bonus for the performance year in which the Executive’s
      termination occurs, payable at the time that annual bonuses are paid to other
      senior executives (determined by multiplying the amount the Executive would
      have
      received had employment continued through the end of the performance year by
      a
      fraction, the numerator of which is the number of days during the performance
      year of termination that the Executive is employed by the Company and the
      denominator of which is 365). 

     

    
      
        
        

      

      
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    (b) DEATH.
      In
      the event the Employment Term ends on account of the Executive’s death, the
      Executive’s estate (or to the extent a beneficiary has been designated in
      accordance with a program, the beneficiary under such program) shall be entitled
      to any Accrued Amounts, including but not limited to proceeds from any Company
      sponsored life insurance programs. Executive’s estate (or beneficiary) will also
      be paid a pro-rata portion of the Executive’s annual bonus for the performance
      year in which the Executive’s death occurs, payable at the time that annual
      bonuses are paid to other senior executives (determined by multiplying the
      amount the Executive would have received based upon target performance had
      employment continued through the end of the performance year by a fraction,
      the
      numerator of which is the number of days during the performance year of
      termination that the Executive is employed by the Company and the denominator
      of
      which is 365). 

     

    (c) TERMINATION
      FOR CAUSE OR WITHOUT GOOD REASON. If the Executive’s employment should be
      terminated (i) by the Company for Cause, or (ii) by the Executive without Good
      Reason, the Company shall pay to the Executive any Accrued Amounts.

     

    (d) TERMINATION
      WITHOUT CAUSE OR FOR GOOD REASON. If the Executive’s employment by the Company
      is terminated by the Company other than for Cause (other than a termination
      due
      to Disability or death) or by the Executive for Good Reason, then the Company
      shall pay or provide the Executive with:

     

    (1) Accrued
      Amounts;

     

    (2) a
      pro-rata portion of the Executive’s annual bonus for the performance year in
      which the Executive’s termination occurs, payable at the time that annual
      bonuses are paid to other senior executives (determined by multiplying the
      amount the Executive would have received based upon actual financial performance
      had employment continued through the end of the performance year by a fraction,
      the numerator of which is the number of days during the performance year of
      termination that the Executive is employed by the Company and the denominator
      of
      which is 365);

     

    (3) an
      amount
      equal to the product of (a) 50% times (b) the sum of (i) the Executive’s then
      Base Salary and (ii) the most recent annual bonus paid to the Executive (or
      awarded by the Parent Board or the Committee for the preceding calendar year
      if
      not then paid), times (c) a fraction, the numerator of which is the number
      of
      days from the Executive’s employment termination date until the end of the
      Employment Term, and the denominator of which is 180, payable in a single lump
      sum commencing on the earliest payroll date that does not result in adverse
      tax
      consequences to Executive under Section 409A of the Code;

     

    
      
        
        

      

      
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    (4) each
      cash-based long-term performance award for which the performance period has
      not
      yet been completed as of the date of such termination
      shall be
      deemed fully vested and fully earned and then shall be cancelled in exchange
      for
      a cash payment equal to 100% of the target value of such award multiplied by
      a
      fraction, the numerator which is the number of days the Executive remained
      employed with the Company during the award’s performance period and the
      denominator of which is the total number of days during the award’s performance
      period;

     

    (5) title
      to
      the Company automobile to the Executive on an “as is” basis, with the
      automobile’s fair market value being taxable to the Executive; and

     

    (6) subject
      to the Executive’s continued co-payment of premiums, if required under Company
      policy, continued participation for 24 months but in no event later than the
      Retirement Eligibility Date in all medical, dental and vision plans which cover
      the Executive (and eligible dependents) upon the same terms and conditions
      (except for the requirements of the Executive’s continued employment) in effect
      for active employees of the Company. In the event the Executive obtains other
      employment that offers substantially similar or improved benefits, as to any
      particular medical, dental or vision plan, such continuation of coverage by
      the
      Company for such similar or improved benefit under such plan under this
      subsection shall immediately cease. The continuation of health benefits under
      this subsection shall reduce and count against the Executive’s rights under the
      Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
      (“COBRA”).

     

    (e) RETIREMENT.
      If the Executive terminates employment on or following the Executive’s
      Retirement Eligibility Date, the Company shall pay to the
      Executive:

     

    (1) any
      Accrued Amounts;

     

    (2) a
      pro-rata portion of the Executive’s annual bonus for the performance year in
      which the Executive’s retirement occurs, payable at the time that annual bonuses
      are paid to other senior executives (determined by multiplying the amount the
      Executive would have received based upon actual financial performance had
      employment continued through the end of the performance year by a fraction,
      the
      numerator of which is the number of days during the performance year of
      termination that the Executive is employed by the Company and the denominator
      of
      which is 365);

     

    (3) each
      cash-based long-term performance award for which the performance period has
      not
      yet been completed as of the date of such termination shall be deemed fully
      vested and fully earned and then shall be cancelled in exchange for a cash
      payment within 10 business days after the date of the Executive's retirement
      with payment equal to 100% of the target value of such award multiplied by
      a
      fraction, the numerator which is the number of days the Executive remained
      employed with the Company during the award’s performance period and the
      denominator of which is the total number of days during the award’s performance
      period;

     

    (4) title
      to
      the Company automobile to the Executive on an “as is” basis, with the
      automobile’s fair market value being taxable to the Executive; and

     

    (5) the
      Executive shall be considered to have “retired” on the Executive’s date
      of
      termination of employment with the Company on or following the
      Executive’s Retirement
      Eligibility Date for purposes of any plans, programs, agreements or arrangements
      with the Company or its affiliates.

     

    
      
        
        

      

      
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    (f) ACCELERATION
      OF EQUITY AWARDS

     

    If
      the
      Executive's employment by the Company is terminated by the Company for
      Disability (as defined in Section 7(a)) or without Cause (as defined in Section
      7(c)), or by the Executive for Good Reason (as defined in Section 7(e)),
      Retirement (as defined in Section 7(g)) or due to death, all then outstanding
      unvested equity awards granted to the Executive (for example, stock options,
      stock appreciation rights and restricted stock), whether under this Agreement
      or
      otherwise, will fully vest and become non-forfeitable and remain exercisable
      in
      accordance with the terms of the applicable Company plans.

     

    (g) COORDINATION
      WITH CHANGE IN CONTROL AGREEMENT.

     

    Notwithstanding
      anything to the contrary set forth in this Agreement, if the Executive’s
      employment with the Company is terminated under circumstances that result in
      the
      payment of “Severance Payments” under the Executive’s Change in Control
      Agreement,
      the
      Severance Payments under the Executive’s Change in Control Agreement shall be in
      lieu of any severance benefits otherwise payable to the Executive under this
      Section 8.

     

    9. CONDITIONS.
      Any payments or benefits made or provided pursuant to Section 8 (other than
      Accrued Amounts) are subject to the Executive’s: 

     

    (a) compliance
      with the provisions of Section 11 hereof;

     

    (b) delivery
      to the Company of an executed Agreement and General Release (the “General
      Release”), which shall be substantially in the form attached hereto as Appendix
      A (with such changes therein or additions thereto as needed under then
      applicable law to give effect to its intent and purpose) within 21 days of
      presentation thereof by the Company to the Executive; and

     

    (c) delivery
      to the Company of a resignation from all offices, directorships and fiduciary
      positions with the Company, its affiliates and employee benefit
      plans.

     

    For
      purposes of any payments or benefits provided under Section 8 (other than
      Accrued Amounts) to an Executive’s beneficiary or estate, the beneficiary or
      estate shall comply with the provisions of Section 9(b) and Section
      11(e).

     

    Notwithstanding
      the due date of any post-employment payments, any amounts due following a
      termination under this Agreement (other than Accrued Amounts) shall not be
      due
      until after the expiration of any revocation period applicable to the General
      Release without the Executive having revoked such General Release, and any
      such
      amounts shall be paid to the Executive within ten (10) days of the expiration
      of
      such revocation period without the occurrence of a revocation by the Executive
      (or such later date as may be required under Section 409A of the Code in
      accordance with Section 20 hereof). Nevertheless (and regardless of whether
      the
      General Release has been executed by the Executive), upon any termination of
      Executive’s employment, Executive shall be entitled to receive any Accrued
      Amounts, payable within thirty (30) days after the date of termination of
      employment or in accordance with the applicable plan, program or policy. In
      the
      event that the Executive dies before all payments pursuant to this Section
      9
      have been paid, all remaining payments shall be made to the beneficiary
      specifically designated by the Executive in writing prior to the Executive’s
      death, or, if no such beneficiary was designated (or the Company is unable
      in
      good faith to determine the beneficiary designated), to the Executive’s personal
      representative or estate.

     

    
      
        
        

      

      
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    10. SECTION
      4999 EXCISE TAX. The Company shall provide the Executive with a “Gross-Up
      Payment”, as defined in the Change in Control Agreement between the Company and
      the Executive effective as of January 1, 2007, in the event that any payment
      made under this Agreement is subject to excise tax under Section 4999 of the
      Code and the Change in Control Agreement does not apply to such
      payment.

     

    11. POST-EMPLOYMENT
      OBLIGATIONS

     

    (a) CONFIDENTIALITY.
      The Executive agrees that the Executive shall not, directly or indirectly,
      use,
      make available, sell, disclose or otherwise communicate to any person, other
      than in the course of the Executive’s employment and for the benefit of Kaman
      and the Company, either during the period of the Executive’s employment or at
      any time thereafter, any nonpublic, proprietary or confidential information,
      knowledge or data relating to Kaman or the Company, any of their subsidiaries,
      affiliated companies or businesses, which shall have been obtained by the
      Executive during the Executive’s employment by the Company. The foregoing shall
      not apply to information that (i) was known to the public prior to its
      disclosure to the Executive; (ii) becomes known to the public subsequent to
      disclosure to the Executive through no wrongful act of the Executive or any
      representative of the Executive; or (iii) the Executive is required to disclose
      by applicable law, regulation or legal process (provided that the Executive
      provides Kaman and the Company with prior notice of the contemplated disclosure
      and reasonably cooperates with Kaman and the Company at their expense in seeking
      a protective order or other appropriate protection of such information).
      Notwithstanding clauses (i) and (ii) of the preceding sentence, the Executive’s
      obligation to maintain such disclosed information in confidence shall not
      terminate where only portions of the information are in the public
      domain.

     

    (b) NON-SOLICITATION.
      In
      the
      event that the Executive receives severance benefits under Section 8(d) of
      this
      Agreement,
      the
      Executive agrees that for
      the
      two (2) year period following the date of termination
      the
      Executive will not, directly or indirectly, individually or on behalf of any
      other person, firm, corporation or other entity, knowingly solicit, aid or
      induce any managerial level employee of Kaman or the Company or any of their
      subsidiaries or affiliates to leave such employment in order to accept
      employment with or render services to or with any other person, firm,
      corporation or other entity unaffiliated with Kaman or the Company or knowingly
      take any action to materially assist or aid any other person, firm, corporation
      or other entity in identifying or hiring any such employee (provided, that
      the
      foregoing shall not be violated by general advertising not targeted at Kaman
      or
      Company employees nor by serving as a reference for an employee with regard
      to
      an entity with which the Executive is not affiliated). For the avoidance of
      doubt, if a managerial level employee on his or her own initiative contacts
      the
      Executive for the primary purpose of securing alternative employment, any action
      taken by the Executive thereafter shall not be deemed a breach of this Section
      11(b).

     

    
      
        
        

      

      
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    (c) NON-COMPETITION.
      The Executive acknowledges that the Executive performs services of a unique
      nature for the Company that are irreplaceable, and that the Executive’s
      performance of such services to a competing business will result in irreparable
      harm to Kaman and the Company. Accordingly, in the event that the Executive
      receives severance benefits under Section 8(d) of this Agreement, the Executive
      agrees that for a period of two (2) years following the date of termination,
      but
      not later than the Executive's Retirement Eligibility Date, the Executive will
      not, directly or indirectly, become connected with, promote the interest of,
      or
      engage in any other business or activity competing with the business of Kaman
      or
      the Company within the geographical area in which the business of Kaman or
      the
      Company is conducted.

     

    (d) NON-DISPARAGEMENT.
      Each of the Executive and the Company (for purposes hereof, “the Company” shall
      mean only (i) the Company by press release or otherwise and (ii) the executive
      officers and directors thereof and not any other employees) agrees not to make
      any public statements that disparage the other party, or in the case of the
      Company, its respective affiliates (including parents and subsidiaries),
      officers, directors, products or services. Notwithstanding the foregoing,
      statements made in the course of sworn testimony in administrative, judicial
      or
      arbitral proceedings (including, without limitation, depositions in connection
      with such proceedings) or otherwise as required by law shall not be subject
      to
      this Section 11(d).

     

    (e) RETURN
      OF
      COMPANY PROPERTY AND RECORDS. The Executive agrees that upon termination of
      the
      Executive’s employment, for any cause whatsoever, the Executive will surrender
      to the Company in good condition (reasonable wear and tear excepted) all
      property and equipment belonging to the Company and all records kept by the
      Executive containing the names, addresses or any other information with regard
      to customers or customer contacts of the Company, or concerning any proprietary
      or confidential information of the Company or any operational, financial or
      other documents given to the Executive during the Executive’s employment with
      the Company.

     

    (f) COOPERATION.
      The Executive agrees that, following termination of the Executive’s employment
      for any reason, the Executive shall upon reasonable advance notice, and to
      the
      extent it does not interfere with previously scheduled travel plans and does
      not
      unreasonably interfere with other business activities or employment obligations,
      assist and cooperate with Kaman and the Company with regard to any matter or
      project in which the Executive was involved during the Executive’s employment,
      including any litigation. The Company shall compensate the Executive for any
      lost wages (or,
      if
      the Executive is not then employed, provide reasonable compensation as
      determined by the Compensation Committee) and
      expenses
      associated with such cooperation and assistance.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (g) ASSIGNMENT
      OF INVENTIONS. The Executive will promptly communicate and disclose in writing
      to the Company all inventions and developments including software, whether
      patentable or not, as well as patents and patent applications (hereinafter
      collectively called “Inventions”), made, conceived, developed, or purchased by
      the Executive, or under which the Executive acquires the right to grant licenses
      or to become licensed, alone or jointly with others, which have arisen or
      jointly with others, which have arisen or which arise out of the Executive’s
      employment with the Company, or relate to any matters directly pertaining to,
      the business of the Company or any of its subsidiaries. Included herein as
      if
      developed during the employment period is any specialized equipment and software
      developed for use in the business of the Company. All of the Executive’s right,
      title and interest in, to, and under all such Inventions, licenses, and right
      to
      grant licenses shall be the sole property of the Company. As to all such
      Inventions, the Executive will, upon request of the Company execute all
      documents which the Company deems necessary or proper to enable it to establish
      title to such Inventions or other rights, and to enable it to file and prosecute
      applications for letters patent of the United States and any foreign country;
      and do all things (including the giving of evidence in suits and other
      proceedings) which the Company deems necessary or proper to obtain, maintain,
      or
      assert patents for any and all such Inventions or to assert its rights in any
      Inventions not patented.

     

    (h) EQUITABLE
      RELIEF AND OTHER REMEDIES. The parties acknowledge and agree that the other
      party’s remedies at law for a breach or threatened breach of any of the
      provisions of this Section would be inadequate and, in recognition of this
      fact,
      the parties agree that, in the event of such a breach or threatened breach,
      in
      addition to any remedies at law, the other party, without posting any bond,
      shall be entitled to obtain equitable relief in the form of specific
      performance, temporary restraining order, a temporary or permanent injunction
      or
      any other equitable remedy which may then be available.

     

    (i) REFORMATION.
      If it is determined by a court of competent jurisdiction in any state that
      any
      restriction in this Section 11 is excessive in duration or scope or is
      unreasonable or unenforceable under the laws of that state, it is the intention
      of the parties that such restriction may be modified or amended by the court
      to
      render it enforceable to the maximum extent permitted by the law of that
      state.

     

    (j) SURVIVAL
      OF PROVISIONS. The obligations contained in this Section 11 shall survive the
      termination or expiration of the Executive’s employment with the Company and
      shall be fully enforceable thereafter.

     

    12. NO
      ASSIGNMENT.

     

    (a) This
      Agreement is personal to each of the parties hereto. Except as provided in
      Section 12(b) below, no party may assign or delegate any rights or obligations
      hereunder without first obtaining the written consent of the other party
      hereto.

     

    (b) The
      Company may assign this Agreement to any successor to all or substantially
      all
      of the business and/or assets of the Company provided the Company shall require
      such successor to expressly assume and agree in writing to perform this
      Agreement in the same manner and to the same extent that the Company would
      be
      required to perform it if no such succession had taken place and shall deliver
      a
      copy of such assignment to the Executive.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    13. NOTICE.
      For the purpose of this Agreement, notices and all other communications provided
      for in this Agreement shall be in writing and shall be deemed to have been
      duly
      given (a) on the date of delivery if delivered by hand, (b) on the date of
      transmission, if delivered by confirmed facsimile, (c) on the first business
      day
      following the date of deposit if delivered by guaranteed overnight delivery
      service, or (d) on the fourth business day following the date delivered or
      mailed by United States registered or certified mail, return receipt requested,
      postage prepaid, addressed as follows:

     

    If
      to the
      Executive: at the address (or to the facsimile number) shown on the records
      of
      the Company

     

    If
      to the
      Company:

     

    c/o
      Kaman
      Corporation

    1332
      Blue
      Hills Avenue, P.O. Box 1

    Bloomfield,
      CT 06002

    Attention:
      Candace A. Clark, Esq.

     

    Facsimile
      No.: 860 243-7397

     

    or
      to
      such other address as either party may have furnished to the other in writing
      in
      accordance herewith, except that notices of change of address shall be effective
      only upon receipt.

     

    14. SECTION
      HEADINGS; INCONSISTENCY. The section headings used in this Agreement are
      included solely for convenience and shall not affect, or be used in connection
      with, the interpretation of this Agreement. Except
      as
      provided in the last sentence of Section 15 hereof, if
      there is
      any inconsistency between this Agreement and any other agreement (including
      but
      not limited to any option, stock, long-term incentive or other equity award
      agreement), plan, program, policy or practice (collectively, “Other Provision”)
      of the Company the terms of this Agreement shall control over such Other
      Provision.

     

    15. PRIOR
      AGREEMENTS. This Agreement supersedes and replaces any and all prior employment
      agreements (collectively, the “Prior Agreements”) between the Company and the
      Executive. By signing this Agreement, the Executive acknowledges that the Prior
      Agreements are terminated and cancelled, and releases and discharges the Company
      from any and all obligations and liabilities heretofore or now existing under
      or
      by virtue of such Prior Agreements, it being the intention of the parties hereto
      that this Agreement effective immediately shall supersede and be in lieu of
      the
      Prior Agreements. It is specifically acknowledged by the Company that this
      Agreement does not supersede the Change in Control Agreement or any existing
      employee benefits as described in Section 6 above or otherwise provided by
      the
      Company or its affiliates.

     

    16. SEVERABILITY.
      The provisions of this Agreement shall be deemed severable and the invalidity
      of
      unenforceability of any provision shall not affect the validity or
      enforceability of the other provisions hereof.

     

    17. COUNTERPARTS.
      This Agreement may be executed in counterparts, each of which shall be deemed
      to
      be an original but all of which together will constitute one and the same
      instruments. One or more counterparts of this Agreement may be delivered by
      facsimile, with the intention that delivery by such means shall have the same
      effect as delivery of an original counterpart thereof.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    18. ARBITRATION.
      Any dispute or controversy arising under or in connection with this Agreement,
      other than injunctive relief under Section 11(h) hereof or damages for breach
      of
      Section 11, shall be settled exclusively by arbitration, conducted before a
      single arbitrator in Hartford, Connecticut administered by the American
      Arbitration Association (“AAA”) in accordance with its Commercial Arbitration
      Rules then in effect. The single arbitrator shall be selected by the mutual
      agreement of the Company and the Executive, unless the parties are unable to
      agree to an arbitrator, in which case, the arbitrator will be selected under
      the
      procedures of the AAA. The arbitrator will have the authority to permit
      discovery and to follow the procedures that he/she determines to be appropriate.
      The arbitrator will have no power to award consequential (including lost
      profits), punitive or exemplary damages. The decision of the arbitrator will
      be
      final and binding upon the parties hereto. Judgment may be entered on the
      arbitrator’s award in any court having jurisdiction.

     

    19. MISCELLANEOUS.
      No provision of this Agreement may be modified, waived or discharged unless
      such
      waiver, modification or discharge is agreed to in writing and signed by the
      Executive and such officer or director as may be designated by the Parent Board.
      No waiver by either party hereto at any time of any breach by the other party
      hereto of, or compliance with, any condition or provision of this Agreement
      to
      be performed by such other party shall be deemed a waiver of similar or
      dissimilar provisions or conditions at the same or at any prior or subsequent
      time. This Agreement together with all exhibits hereto sets forth the entire
      agreement of the parties hereto in respect of the subject matter contained
      herein. No agreements or representations, oral or otherwise, express or implied,
      with respect to the subject matter hereof have been made by either party which
      are not expressly set forth in this Agreement. The validity, interpretation,
      construction and performance of this Agreement shall be governed by the laws
      of
      the State of Connecticut without regard to its conflicts of law
      principles.

     

    20. PAYMENT
      OF COMPENSATION. The parties shall revisit this Agreement when the IRS issues
      final regulations under Section 409A of the Code for the sole purpose of
      determining whether any amendments are required in order to comply with such
      regulations. The parties shall promptly agree in good faith on appropriate
      provisions to avoid any material risk of noncompliance without materially
      changing the economic value (to the Executive) or the cost (to the Company)
      of
      this Agreement including, if necessary, the deferral of any amount payable
      hereunder upon separation from service to the first date such amount may be
      paid
      without incurring tax under Section 409A of the Code, in which case such payment
      shall bear interest at the applicable federal rate under Section 1274 of the
      Code. Notwithstanding the foregoing, the Company shall in no event be obligated
      to indemnify the Executive for any taxes or interest that may be assessed by
      the
      IRS pursuant to Section 409A of the Code.

     

    21. MITIGATION
      OF DAMAGES. In no event shall the Executive be obliged to seek other employment
      or take any other action by way of mitigation of the amounts payable to the
      Executive under any of the provisions of this Agreement, nor shall the amount
      of
      any payment hereunder be reduced by any compensation earned by the Executive
      as
      a result of employment by another employer, except as set forth in this
      Agreement.

     

    22. REPRESENTATIONS.
      The Executive represents and warrants to the Company that the Executive has
      the
      legal right to enter into this Agreement and to perform all of the obligations
      on the Executive’s part to be performed hereunder in accordance with its terms
      and that the Executive is not a party to any agreement or understanding, written
      or oral, which could prevent the Executive from entering into this Agreement
      or
      performing all of the Executive’s obligations hereunder.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    23. WITHHOLDING.
      The Company may withhold from any and all amounts payable under this Agreement
      such federal, state and local taxes as may be required to be withheld pursuant
      to any applicable law or regulation.

     

    24. SURVIVAL.
      The respective obligations of, and benefits afforded to, the Company and
      Executive which by their express terms or clear intent survive termination
      of
      Executive’s employment with the Company, including, without limitation, the
      provisions of Sections 5 and 8 through 25, inclusive of this Agreement, will
      survive termination of Executive’s employment with the Company, and will remain
      in full force and effect according to their terms.

     

    25. AGREEMENT
      OF THE PARTIES. The language used in this Agreement will be deemed to be the
      language chosen by the parties hereto to express their mutual intent, and no
      rule of strict construction will be applied against any party hereto. Neither
      Executive nor the Company shall be entitled to any presumption in connection
      with any determination made hereunder in connection with any arbitration,
      judicial or administrative proceeding relating to or arising under this
      Agreement.

     

    
      
         

        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement.

     

    

      
        	
                 

                 

              	
                 

                 

              	
                 

                KAMAN
                  MUSIC CORPORATION

              
	 	 	 
	 	
                By:  

              	
                /s/ Robert
                  M. Garneau

              
	 	 	
                ROBERT
                  M. GARNEAU

              
	 	 	 
	 	
                Its:

              	
                VICE
                  PRESIDENT

              
	 	 	 
	 	
                Date:

              	
                2/20/07

              
	 	 	 
	 	 	 
	 	 	 
	 	 	
                ROBERT
                  H. SAUNDERS, JR.

              
	 	 	 
	 	 	 
	 	
                 

              	
                /s/
                  Robert H. Saunders, Jr.

              
	 	 	 
	 	 	 
	 	
                Date:

              	
                2/20/07

              
	 	 	 

      
  

     

    

     

    

     

    
      
         

        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    APPENDIX
      A

     

    FORM
      OF RELEASE

     

    AGREEMENT
      AND GENERAL RELEASE

     

    Kaman
      Music Corporation, its affiliates, parents, subsidiaries, divisions, successors
      and assigns in such capacity, and the current, future and former employees,
      officers, directors, trustees and agents thereof (collectively referred to
      throughout this Agreement as “Employer”), and Robert H. Saunders, Jr.
      (“Executive”), the Executive’s heirs, executors, administrators, successors and
      assigns (collectively referred to throughout this Agreement as “Employee”)
      agree:

     

    1. Last
      Day of Employment.
      Executive’s last day of employment with Employer is ______________. In addition,
      effective as of DATE, Executive resigns from the Executive’s position as
      President of Kaman Music Corporation and will not be eligible for any benefits
      or compensation after ________, including payments under the Executive’s Change
      in Control Agreement, other than as specifically provided in Sections 6 and
      8 of
      the Executive Employment Agreement between Employer and Executive effective
      as
      of January 1, 2007 (the “Employment Agreement”).
      Executive further acknowledges and agrees that, after DATE, the Executive will
      not represent the Executive as being a director, employee, officer, trustee,
      agent or representative of Employer for any purpose. In addition, effective
      as
      of DATE, Executive resigns from all offices, directorships, trusteeships,
      committee memberships and fiduciary capacities held with, or on behalf of,
      Employer or any benefit plans of Employer. These resignations will become
      irrevocable as set forth in Section 3 below.

     

    2. Consideration.
      The parties acknowledge that this Agreement and General Release is being
      executed in accordance with Section 9 of the Employment Agreement.

     

    3. Revocation.
      Executive may revoke this Agreement and General Release for a period of seven
      (7) calendar days following the day Executive executes this Agreement and
      General Release. Any revocation within this period must be submitted, in
      writing, to Employer and state, “I hereby revoke my acceptance of our Agreement
      and General Release.” The revocation must be personally delivered to Employer’s
      Chief Legal Officer, or his/her designee, or mailed to Kaman Music Corporation
      c/o Kaman Corporation, 1332 Blue Hills Avenue, P.O. Box 1, Bloomfield, CT 06002,
      Attention Candace Clark, and postmarked within seven (7) calendar days of
      execution of this Agreement and General Release. This Agreement and General
      Release shall not become effective or enforceable until the revocation period
      has expired. If the last day of the revocation period is a Saturday, Sunday,
      or
      legal holiday in Hartford, Connecticut, then the revocation period shall not
      expire until the next following day which is not a Saturday, Sunday, or legal
      holiday.

     

    4. General
      Release of Claim. Subject to the full satisfaction by the Employer of its
      obligations under the Employment Agreement, Employee knowingly and voluntarily
      releases and forever discharges Employer from any and all claims, causes of
      action, demands, fees and liabilities of any kind whatsoever, whether known
      and
      unknown, against Employer, Employee has, has ever had or may have as of the
      date
      of execution of this Agreement and General Release, including, but not limited
      to, any alleged violation of:

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    - Title
      VII
      of the Civil Rights Act of 1964, as amended;

     

    - The
      Civil
      Rights Act of 1991;

     

    - Sections
      1981 through 1988 of Title 42 of the United States Code, as
      amended;

     

    - The
      Employee Retirement Income Security Act of 1974, as amended;

     

    - The
      Immigration Reform and Control Act, as amended;

     

    - The
      Americans with Disabilities Act of 1990, as amended;

     

    - The
      Age
      Discrimination in Employment Act of 1967, as amended;

     

    - The
      Older
      Workers Benefit Protection Act of 1990;

     

    - The
      Worker Adjustment and Retraining Notification Act, as amended;

     

    - The
      Occupational Safety and Health Act, as amended;

     

    - The
      Family and Medical Leave Act of 1993;

     

    
      
        -
          Any
          wage
          payment and collection, equal pay and other similar laws, acts and statutes
          of
          the State of Connecticut;

      

    

     

    
      
        -
          Any
          other
          federal, state or local civil or human rights law or any other local, state
          or
          federal law, regulation or ordinance; 

      

    

     

    
      
        -
          Any
          public policy, contract, tort, or common law; or

      

    

     

    
      
        -
          Any
          allegation for costs, fees, or other expenses including attorneys fees
          incurred
          in these matters.

      

    

     

    Notwithstanding
      anything herein to the contrary, the sole matters to which the Agreement and
      General Release do not apply are: (i) Employee’s express rights under any
      pension (including but not limited to any rights under the Kaman Corporation
      Supplemental Retirement Plan) or claims for accrued vested benefits under any
      other employee benefit plan, policy or arrangement maintained by Employer or
      under COBRA and other Accrued Amounts (as such term is defined in the Employment
      Agreement); (ii) Employee’s rights under the provisions of the Employment
      Agreement which are intended to survive termination of employment; or (iii)
      Employee’s rights as a stockholder.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    5. No
      Claims
      Permitted. Employee waives Executive’s right to file any charge or complaint
      against Employer arising out of Executive’s employment with or separation from
      Employer before any federal, state or local court or any state or local
      administrative agency, except where such waivers are prohibited by
      law.

     

    6. Affirmations.
      Employee affirms Executive has not filed, has not caused to be filed, and is
      not
      presently a party to, any claim, complaint, or action against Employer in any
      forum. Employee further affirms that the Executive has been paid and/or has
      received all compensation, wages, bonuses, commissions, and/or benefits to
      which
      Executive may be entitled and no other compensation, wages, bonuses, commissions
      and/or benefits are due to Executive, except as provided in Sections 6 and
      8 of
      the Employment Agreement. Employee also affirms Executive has no known workplace
      injuries.

     

    7. Cooperation;
      Return of Property. In
      accordance with Section 11(f) of the Employment Agreement, Employee
      agrees to reasonably cooperate with Employer and its counsel in connection
      with
      any investigation, administrative proceeding or litigation relating to any
      matter that occurred during Executive’s employment in which Executive was
      involved or of which Executive has knowledge and Employer will reimburse the
      Employee for any reasonable out-of-pocket travel, delivery or similar expenses
      incurred and lost wages (or will provide reasonable compensation if Executive
      is
      not then employed)
      in
      providing such service to Employer. Employee represents that Executive has
      complied with Section 11(e) of the Employee Agreement regarding the return
      of
      property.

     

    8. Governing
      Law and Interpretation. This Agreement and General Release shall be governed
      and
      conformed in accordance with the laws of the State of Connecticut without regard
      to its conflict of laws provisions. In the event Employee or Employer breaches
      any provision of this Agreement and General Release, Employee and Employer
      affirm either may institute an action to specifically enforce any term or terms
      of this Agreement and General Release. Should any provision of this Agreement
      and General Release be declared illegal or unenforceable by any court of
      competent jurisdiction and should the provision be incapable of being modified
      to be enforceable, such provision shall immediately become null and void,
      leaving the remainder of this Agreement and General Release in full force and
      effect. Nothing herein, however, shall operate to void or nullify any general
      release language contained in the Agreement and General Release. 

     

    9. No
      Admission of Wrongdoing. Employee agrees neither this Agreement and General
      Release nor the furnishing of the consideration for this Release shall be deemed
      or construed at any time for any purpose as an admission by Employer of any
      liability or unlawful conduct of any kind.

     

    10. Amendment.
      This Agreement and General Release may not be modified, altered or changed
      except upon express written consent of both parties wherein specific reference
      is made to this Agreement and General Release.

     

    11. Entire
      Agreement. This Agreement and General Release sets forth the entire agreement
      between the parties hereto and fully supersedes any prior agreements or
      understandings between the parties; provided, however, that notwithstanding
      anything in this Agreement and General Release, the provisions in the Employment
      Agreement which are intended to survive termination of the Employment Agreement,
      including but not limited to those contained in Section 11 thereof, shall
      survive and continue in full force and effect. Employee acknowledges Executive
      has not relied on any representations, promises, or agreements of any kind
      made
      to Executive in connection with Executive’s decision to accept this Agreement
      and General Release.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    EMPLOYEE
      HAS BEEN ADVISED THAT EXECUTIVE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO
      REVIEW THIS AGREEMENT AND GENERAL RELEASE AND HAS BEEN ADVISED IN WRITING TO
      CONSULT WITH AN ATTORNEY PRIOR TO EXECUTION OF THIS AGREEMENT AND GENERAL
      RELEASE. 

     

    EMPLOYEE
      AGREES ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT AND
      GENERAL RELEASE DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL TWENTY-ONE
      (21) CALENDAR DAY CONSIDERATION PERIOD. 

     

    HAVING
      ELECTED TO EXECUTE THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE PROMISES
      SET FORTH HEREIN, AND TO RECEIVE THE SUMS AND BENEFITS SET FORTH IN THE
      EMPLOYMENT AGREEMENT, EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE
      CONSIDERATION, ENTERS INTO THIS AGREEMENT AND GENERAL RELEASE INTENDING TO
      WAIVE, SETTLE AND RELEASE ALL CLAIMS EXECUTIVE HAS OR MIGHT HAVE AGAINST
      EMPLOYER.

     

    IN
      WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this
      Agreement and General Release as of the date set forth below:

     

    
      
        	
                 

                 

              	
                 

                 

              	
                 

                KAMAN
                  MUSIC CORPORATION

              
	 	 	 
	 	
                By:  

              	 
	 	
                 

                Name:

              	
                 

                [NAME]

              
	 	
                Title:

              	 
	 	
                Date:

              	 
	 	 	 
	 	 	 
	 	 	 
	 	 	
                ROBERT
                  H. SAUNDERS, JR.

              
	 	 	 
	 	 	 
	 	 	 
	 	
                Date:

              	 
	 	 	 

      

      

      
        
          
          

        

        
          19Kaman Corporation Amended and Restated Change in Control Agreement between
      Robert M. Garneau and Kaman Corporation

    
      
        

      

    

    Exhibit 10.6

     

    KAMAN
      CORPORATION

    AMENDED
      AND RESTATED

    CHANGE
      IN CONTROL AGREEMENT

     

     

    THIS
      AGREEMENT, is made effective as of January 1, 2007 (the
      “Effective Date”), by and between Kaman Corporation, a Connecticut corporation
      (the “Company”), and Robert M. Garneau (the “Executive”).

    

    WHEREAS,
      the Company and the Executive are parties to the Kaman Corporation Change in
      Control Agreement dated as of September 21, 1999, as amended by an Addendum
      to
      Change in Control Agreement dated as of September 11, 2001, and a Second
      Addendum to Change in Control Agreement dated as of November 11, 2003 (the
      "Prior Agreement"); and 

     

    WHEREAS,
      the Company and the Executive have agreed to replace and supersede the Prior
      Agreement as set forth below.

    

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants herein
      contained, the Company and the Executive hereby agree as follows: 

    

    1.  Defined
      Terms.
      Definitions of capitalized terms used in this Agreement are provided in the
      last
      Section of this Agreement. 

     

    2.  Term.
      This
      Agreement shall terminate on the fifth anniversary of the Effective Date. The
      term of this Agreement shall be automatically extended thereafter for successive
      one (1) year periods unless, at least ninety (90) days prior to the end of
      the
      fourth anniversary of the Effective Date or the then current succeeding one-year
      extended term of this Agreement, the Company or Executive has notified the
      other
      that the term hereunder shall expire at the end of the then-current term.
      Notwithstanding any such notice, the term of this Agreement shall not expire
      before the second anniversary of a Change in Control that occurs within the
      term
      of this Agreement. The initial term of this Agreement, as it may be extended
      under this Section 2, is herein referred to as the "Term."

     

    3.  Company’s
      Covenants Summarized.
      In
      order to induce the Executive to remain in the employ of the Company and in
      consideration of the Executive’s continued employment, the Company agrees, under
      the conditions described herein, to pay the Executive the Severance Payments
      and
      the other payments and benefits described in this Agreement. Except as provided
      in Sections 5.1 and 8.1 of this Agreement, no Severance Payments (as defined
      in
      Section 5) shall be payable under this Agreement unless there shall have been
      a
      termination of the Executive’s employment with the Company following a Change in
      Control. This Agreement shall not be construed as creating an express or implied
      contract of employment and, except as otherwise agreed in writing between the
      Executive and the Company, the Executive shall not have any right to be retained
      in the employ of the Company.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    4.  Compensation
      Other Than Severance Payments.

     

    4.1  
      If
      the
      Executive’s employment shall be terminated for any reason following a Change in
      Control, the Company shall pay the Executive’s full salary to the Executive
      through the Date of Termination at the rate in effect immediately prior to
      the
      Date of Termination or, if Section 18(n)(II) is applicable as an event or
      circumstance constituting Good Reason, the rate in effect immediately prior
      to
      such event or circumstance, together with all compensation and benefits payable
      to the Executive through the Date of Termination under the terms of the
      Company’s compensation and benefit plans, programs or arrangements as in effect
      immediately prior to the Date of Termination (or, if more favorable to the
      Executive, as in effect immediately prior to the first occurrence of an event
      or
      circumstance constituting Good Reason). In addition, if the Executive’s
      employment is terminated for any reason following a Change in Control other
      than
      (a) by the Company for Cause and (b) by the Executive without Good Reason,
      then
      the Company shall pay a pro-rata portion of the Executive’s annual bonus for the
      performance year in which such termination occurs to the Executive at the time
      that annual bonuses are paid to other senior executives. This pro-rata bonus
      shall be determined by multiplying the amount the Executive would have received
      based upon actual financial performance through such termination, as reasonably
      determined by the Company, by a fraction, the numerator of which is the number
      of days during such performance year that the Executive is employed by the
      Company and the denominator of which is 365.

     

    4.2  
      If
      the
      Executive’s employment shall be terminated for any reason following a Change in
      Control, the Company shall pay to the Executive the Executive’s normal
      post-termination compensation and benefits as such payments become due. Such
      post-termination compensation and benefits shall be determined under, and paid
      in accordance with, the Company’s retirement, insurance and other compensation
      or benefit plans, programs and arrangements as in effect immediately prior
      to
      the Date of Termination or, if more favorable to the Executive, as in effect
      immediately prior to the occurrence of the first event or circumstance
      constituting Good Reason.

    

    5.  Severance
      Payments.

     

    5.1  
      If
      the
      Executive’s employment is terminated during the twenty-four (24) month period
      immediately following a Change in Control, other than (A) by the Company for
      Cause, (B) by reason of death or Disability, or (C) by the Executive without
      Good Reason, then the Company shall pay the Executive the amounts, and provide
      the Executive the benefits described in this Section 5 (collectively, the
“Severance Payments”) in addition to any payments and benefits to which the
      Executive is entitled under Section 4 of this Agreement. The Executive shall
      also be entitled to Severance Payments under this Agreement if the Executive’s
      employment is terminated without Cause by the Company or by the Executive for
      Good Reason at any time beginning on the first day of the 90 day period
      immediately prior to the execution of a definitive purchase and sale agreement
      that results in such Change in Control and the closing of such Change in
      Control.

    

    
      	(a)  	
              In
                lieu of any further salary payments to the Executive for periods
                subsequent to the Date of Termination and in lieu of any severance
                benefit
                payable to the Executive under the Executive’s Employment Agreement with
                the Company or otherwise, the Company shall pay to the Executive
                a lump
                sum severance payment, in cash, equal to the sum of (i) two (2) times
                the
                Executive’s base salary as in effect immediately prior to the Date of
                Termination or, if Section 18(n)(II) is applicable as an event or
                circumstance constituting Good Reason, the rate in effect immediately
                prior to such event or circumstance, and (ii) two (2) times the last
                annual bonus paid or awarded (to the extent not yet paid) to the
                Executive
                in the previous three years (if any) immediately preceding the Date
                of
                Termination, pursuant to any annual bonus or incentive plan maintained
                by
                the Company. 

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	(b)  	
              For
                the twenty-four (24) month period immediately following the Date
                of
                Termination, the Company shall arrange to provide the Executive and
                his
                dependents medical, dental, and accidental death and disability benefits
                substantially similar to those provided to the Executive and his
                dependents immediately prior to the Date of Termination or, if more
                favorable to the Executive, those provided to the Executive and his
                dependents immediately prior to the first occurrence of an event
                or
                circumstance constituting Good Reason, at no greater cost to the
                Executive
                than the cost to the Executive immediately prior to such date or
                occurrence. Benefits otherwise receivable by the Executive pursuant
                to
                this Section 5.1(b) shall be reduced to the extent benefits of the
                same
                type are received by or made available by a subsequent employer to
                the
                Executive during the twenty-four (24) month period following the
                Date of
                Termination (and any such benefits received by or made available
                to the
                Executive shall be reported to the Company by the Executive); provided,
                however, that the Company shall reimburse the Executive for the excess,
                if
                any, of the cost of such benefits to the Executive over such cost
                immediately prior to the Date of Termination or, if more favorable
                to the
                Executive, the first occurrence of an event or circumstance constituting
                Good Reason.

            

    

    

    
      	(c)  	
              Notwithstanding
                any provision to the contrary in any plan or agreement maintained
                by or
                through the Company pursuant to which the Executive has been granted
                restricted stock, stock options, stock appreciation rights or long-term
                performance awards, effective on the Date of Termination, (i) all
                service
                and performance based restrictions with respect to any restricted
                stock
                shall lapse, (ii) all stock appreciation rights and stock options
                shall be
                deemed fully vested and then canceled in exchange for a cash payment
                equal
                to the excess of the fair market value of the shares of Company stock
                subject to the stock appreciation right or stock option on the date
                of the
                Change in Control, over the exercise price(s) of such stock appreciation
                rights or stock options, and (iii) all long-term performance awards
                shall
                be deemed fully vested and fully earned and then shall be canceled
                in
                exchange for a cash payment equal to 100% of the target value of
                each such
                award. 

            

    

    

    
      	(d)  	
              In
                addition to the retirement benefits to which the Executive is entitled
                under any tax-qualified, supplemental or excess benefit pension plan
                maintained by the Company and any other plan or agreement entered
                into
                between the Executive and the Company which is designed to provide
                the
                Executive supplemental retirement benefits (the “Pension Plans”) or any
                successor plan thereto, effective upon the Date of Termination, the
                Executive shall be credited with  an
                additional two years of “Credited Service” and “Continuous Service” (as
                defined in the Kaman Corporation Amended and Restated Employees’ Pension
                Plan) when calculating the Executive’s benefit under Kaman Corporation
                Supplemental Employees Retirement Plan (“SERP”). For avoidance of doubt,
                the Severance Payments payable under this Agreement shall be disregarded
                when determining the Executive's Final Average Salary (as defined
                under
                the Kaman Corporation Amended and Restated Employees' Pension Plan)
                for
                purposes of calculating the benefits payable under the SERP or this
                Section 5.1(d).

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	(e)  	
              If
                the Executive would have become entitled to benefits under the Company’s
                post-retirement health care plans, as in effect immediately prior
                to the
                Date of Termination or, if more favorable to the Executive, as in
                effect
                immediately prior to the first occurrence of an event or circumstance
                constituting Good Reason, had the Executive’s employment terminated at any
                time during the period of twenty-four (24) months after the Date
                of
                Termination, the Company shall provide such post-retirement health
                care
                benefits to the Executive and the Executive’s dependents commencing on the
                later of (i) the date on which such coverage would have first become
                available and (ii) the date on which benefits described in Section
                5.1 (b)
                terminate.

            

    

    

    
      	(f)  	
              The
                Company (i) shall prepay all remaining premiums under any insurance
                policy
                maintained by the Company insuring the life of the Executive that
                is in
                effect and (ii) shall transfer to the Executive any and all rights
                and
                incidents of ownership in such arrangements at no cost to the
                Executive.

            

    

    

    
      	(g)  	
              The
                Company shall provide the Executive with reimbursement for up to
                Thirty
                Thousand Dollars ($30,000) in the aggregate for outplacement services,
                relocation costs, or both provided however that reimbursement shall
                only
                be provided until the earlier of the first anniversary of the Date
                of
                Termination or the Executive’s first day of employment with a new
                employer.

            

    

    

    
      	(h)  	
              The
                Company shall provide the Executive with his Company automobile.
                The book
                value then attributed to it by the leasing company will be considered
                “fringe benefit” income and that amount will be subject to tax during the
                calendar year in which the Date of Termination occurs.
                

            

    

     

    5.2  Section
      4999 Excise Tax.

     

    
      	(a)  	
              If
                any
                payments,
                rights
                or
                benefits (whether
                pursuant to the terms of this Agreement or
                any other plan, arrangement or agreement of
                Executive with
                the Company
                or
                with any person
                affiliated with the Company and
                whether or not the Executive’s employment has then terminated (the
                “Payments”)) received or to be received by Executive will be subject to
                the tax (the “Excise Tax”) imposed by Section 4999 of the Code (or any
                similar tax that may hereafter be imposed), then, except as set forth
                in
                Section 5.2(b) below,
                the Company shall pay to Executive
                an amount in addition to the Payments (the “Gross-Up Payment”) as
                calculated below. The Gross-Up Payment shall be in an amount such
                that,
                after deduction of any Excise Tax on the Payments
                and any federal, state and local income and employment tax and Excise
                Tax
                on the Gross-Up Payment, but before deduction for any federal, state
                or
                local income and employment tax on the Payments,
                the net amount retained by the Executive
                shall be equal to the Payments.

            

    

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	(b)  	
              Notwithstanding
                anything in this Agreement to the contrary, if the amount of Payments
                that
                will be subject
                to
                the Excise Tax does not exceed the amount of Payments that Executive
                could
                receive without having any Payments become subject to the Excise
                Tax by at
                least $100,000, then
                Executive’s taxable cash-based benefits under this Agreement will first be
                reduced in the order selected by Executive, and then, if necessary,
                Executive’s equity-based compensation (based on the value of such
                equity-based compensation as a “parachute payment” as defined in Treasury
                Regulations promulgated under Section 280G of the Code and IRS revenue
                rulings, revenue procedures and other official guidance) shall be
                reduced
                in the order selected by Executive, and then any other Payments shall
                be
                reduced as reasonably determined by the Company, to the extent necessary
                to avoid imposition of the Excise Tax. If Executive does not select
                the
                amount to be reduced within the time prescribed by the Company, the
                reductions specified herein shall be made by the Company in its sole
                discretion from such compensation as it shall determine. Any amount
                so
                reduced shall be irrevocably forfeited and Executive shall have no
                further
                rights to receive it. 

            

    

     

    
      	(c)  	
              The
                process for calculating the Excise Tax, determining the amount of
                any
                Gross-Up Payment and other procedures relating to this Section 5.2
                are set
                forth in Appendix A attached hereto. For purposes of making the
                determinations and calculations required herein, the Consultant may
                rely
                on reasonable, good faith interpretations concerning the application
                of
                Section 280G and 4999 of the Code, provided that the Consultant shall
                make
                such determinations and calculations on the basis of “substantial
                authority” (within
                the meaning of Section 6662
                of the Code) and shall provide opinions to that effect to both the
                Company
                and Executive.

            

    

     

    5.3  The
      Company also shall reimburse the Executive for legal fees and expenses incurred
      by the Executive in disputing in good faith any issue hereunder relating to
      the
      termination of the Executive’s employment or in seeking in good faith to obtain
      or enforce any benefit or right provided by this Agreement. Such payments shall
      be made within ten (10) business days after delivery of the Executive’s written
      request for payment accompanied with such evidence of fees and expenses incurred
      as the Company reasonably may require.

    

    5.4  The
      payments provided in subsections (a) and (c) of Section 5.1 shall be made on
      the
      last day of the Executive’s employment. The payments provided in Section 5.2 of
      this Agreement, if any, as determined under Appendix A, shall be paid on the
      Executive’s behalf to the applicable taxing authorities within five (5) days of
      the receipt of the Consultant’s determination of the Gross-Up Payment. If
      payments are not made in the time frame required by this subsection, interest
      on
      the unpaid amounts will accrue at 120% of the rate provided in Section
      1274(b)(2)(B) of the Code until the date such payments are actually made. At
      the
      time that payments are made under this Agreement, the Company shall provide
      the
      Executive with a written statement setting forth the manner in which such
      payments were calculated and the basis for such calculations including, without
      limitation, any opinions or other advice the Company has received from the
      Consultant or other advisors (and any such opinions or advice which are in
      writing shall be attached to the statement).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    5.5  Coordination
      with Employment Agreement.

     

    Severance
      Payments made under this Section 5 shall be in lieu of any severance benefit
      payable to the Executive under the Executive’s Employment Agreement with the
      Company or otherwise.

     

    6.  Termination
      Procedures and Compensation During Dispute.

     

    6.1  Notice
      of Termination.
      After a
      Change in Control, any purported termination of the Executive’s employment
      (other than by reason of death) shall be communicated by written Notice of
      Termination from one party hereto to the other party hereto in accordance with
      Section 9 of this Agreement. For purposes of this Agreement, a “Notice of
      Termination” shall mean a notice which shall indicate the specific termination
      provision in this Agreement relied upon and shall set forth in reasonable detail
      the facts and circumstances claimed to provide a basis for termination of the
      Executive’s employment under the provision so indicated. Further, a Notice of
      Termination for Cause is required to include a copy of a resolution duly adopted
      by the affirmative vote of not less than three-quarters (3/4) of the entire
      membership of the Board at a meeting of the Board which was called and held
      for
      the purpose of considering such termination (after reasonable notice to the
      Executive and an opportunity for the Executive, together with the Executive’s
      counsel, to be heard before the Board) finding that, in the good faith opinion
      of the Board, the Executive was guilty of conduct set forth in clause (i) or
      (ii) of the definition of Cause herein, and specifying the particulars thereof
      in detail.

    

    6.2  Date
      of Termination.
“Date
      of Termination,” with respect to any purported termination of the Executive’s
      employment after a Change in Control, shall mean (i) if the Executive’s
      employment is terminated for Disability, thirty (30) days after Notice of
      Termination is given (provided that the Executive shall not have returned to
      the
      full-time performance of the Executive’s duties during such thirty (30) day
      period), and (ii) if the Executive’s employment is terminated for any other
      reason, the date specified in the Notice of Termination (which, in the case
      of a
      termination by the Company, shall not be less than thirty (30) days (except
      in
      the case of a termination for Cause) and, in the case of a termination by the
      Executive, shall not be less than fifteen (15) days nor more than sixty (60)
      days, respectively, from the date such Notice of Termination is
      given).

    

    6.3  Dispute
      Concerning Termination.
      If
      within fifteen (15) days after any Notice of Termination is given, or, if later,
      prior to the Date of Termination (as determined without regard to this Section
      6.3), the party receiving such Notice of Termination notifies the other party
      that a dispute exists concerning the termination, the Date of Termination shall
      be extended until the date on which the dispute is finally resolved, either
      by
      mutual written agreement of the parties or by a final judgment, order or decree
      of an arbitrator or a court of competent jurisdiction (which is not appealable
      or with respect to which the time for appeal therefrom has expired and no appeal
      has been perfected); provided, however, that the Date of Termination shall
      be
      extended by a notice of dispute given by the Executive only if such notice
      is
      given in good faith and the Executive pursues the resolution of such dispute
      with reasonable diligence.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    6.4  Compensation
      During Dispute.
      If a
      purported termination occurs following a Change in Control and the Date of
      Termination is extended in accordance with Section 6.3 of this Agreement, the
      Company shall continue to pay the Executive the full compensation in effect
      when
      the notice giving rise to the dispute was given (including, but not limited
      to,
      salary) and continue the Executive as a participant in all compensation, benefit
      and insurance plans in which the Executive was participating when the notice
      giving rise to the dispute was given, until the Date of Termination, as
      determined in accordance with Section 6.3 of this Agreement. Amounts paid under
      this Section 6.4 are in addition to all other amounts due under this Agreement
      (other than those due under Section 4.1 of this Agreement) and shall not be
      offset against or reduce any other amounts due under this Agreement.
      Notwithstanding anything to the contrary in Section 6.3 and 6.4, if the Company,
      after delivery of a Notice of Termination, promptly (and in any event within
      30
      days) determines that grounds existed prior to the delivery of the Notice of
      Termination to terminate the Executive’s employment for Cause after complying
      with the procedural requirements of this Agreement, the Company shall have
      the
      right to recover any payments that have been made to the Executive or on the
      Executive’s behalf under this Agreement including but not limited to offset
      against or reduction of any amounts due under this Agreement or
      otherwise.

    

    7.  No
      Mitigation.
      The
      Company agrees that under this Agreement, if the Executive’s employment with the
      Company terminates, the Executive is not required to seek other employment
      or to
      attempt in any way to reduce any amounts payable to the Executive by the Company
      pursuant to Section 5 of this Agreement or Section 6.4 of this Agreement.
      Further, the amount of any payment or benefit provided for in this Agreement
      (other than as specifically provided in Section 5.1(b) of this Agreement) shall
      not be reduced by any compensation earned by the Executive as the result of
      employment by another employer, by retirement benefits, by offset against any
      amount claimed to be owed by the Executive to the Company, or otherwise.

     

    8.  Successors;
      Binding Agreement.

     

    8.1  In
      addition to any obligations imposed by law upon any successor to the Company,
      the Company will require any successor (whether direct or indirect, by purchase,
      merger, consolidation or otherwise) to all or substantially all of the business
      and/or assets of the Company to expressly assume and agree to perform this
      Agreement in accordance with its terms. Failure of the Company to obtain such
      agreement prior to the effectiveness of any such succession shall be a breach
      of
      this Agreement and shall entitle the Executive to compensation from the Company
      in the same amount and on the same terms as the Executive would be entitled
      to
      hereunder if the Executive were to terminate the Executive’s employment for Good
      Reason after a Change in Control, except that, for purposes of implementing
      the
      foregoing, the date on which any such succession becomes effective shall be
      deemed the Date of Termination.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    8.2  This
      Agreement shall inure to the benefit of and be enforceable by the Executive’s
      personal or legal representatives, executors, administrators, successors, heirs,
      distributees, devisees and legatees. If the Executive shall die while any amount
      would still be payable to the Executive hereunder (other than amounts which,
      by
      their terms, terminate upon the death of the Executive) if the Executive had
      continued to live, all such amounts, unless otherwise provided herein, shall
      be
      paid in accordance with the terms of this Agreement to the executors, personal
      representatives or administrators of the Executive’s estate.

    

    9.  Notice.
      For the
      purpose of this Agreement, notices and all other communications provided for
      in
      this Agreement shall be in writing and shall be deemed to have been duly given
      (a) on the date of delivery if delivered by hand, (b) on the date of
      transmission, if delivered by confirmed facsimile, (c) on the first business
      day
      following the date of deposit if delivered by guaranteed overnight delivery
      service, or (d) on the fourth business day following the date delivered or
      mailed by United States registered or certified mail, return receipt requested,
      postage prepaid, addressed as follows:

     

    If
      to the
      Executive: at the address (or to the facsimile number) shown on the records
      of
      the Company

     

    If
      to the
      Company:

     

    Kaman
      Corporation 

    1332
      Blue
      Hills Avenue, P.O. Box 1

    Bloomfield,
      CT 06002

    Attention:
      Candace A. Clark, Esq.

    

    Facsimile
      No.: 860 243-7397

    

    or
      to
      such other address as either party may have furnished to the other in writing
      in
      accordance herewith, except that notices of change of address shall be effective
      only upon receipt.

    

    10.  Obligations
      after the Date of Termination.

     

    
      	(a)  	
              Confidentiality.
                The Executive agrees that the Executive shall not, directly or indirectly,
                use, make available, sell, disclose or otherwise communicate to any
                person, other than in the course of the Executive’s employment and for the
                benefit of the Company, at any time following the Date of Termination,
                any
                nonpublic, proprietary or confidential information, knowledge or
                data
                relating to the Company, any of its subsidiaries, affiliated companies
                or
                businesses, which shall have been obtained by the Executive during
                the
                Executive’s employment by the Company. The foregoing shall not apply to
                information that (i) was known to the public prior to its disclosure
                to
                the Executive; (ii) becomes known to the public subsequent to disclosure
                to the Executive through no wrongful act of the Executive or any
                representative of the Executive; or (iii) the Executive is required
                to
                disclose by applicable law, regulation or legal process (provided
                that the
                Executive provides the Company with prior notice of the contemplated
                disclosure and reasonably cooperates with the Company at its expense
                in
                seeking a protective order or other appropriate protection of such
                information). Notwithstanding clauses (i) and (ii) of the preceding
                sentence, the Executive’s obligation to maintain such disclosed
                information in confidence shall not terminate where only portions
                of the
                information are in the public
                domain.

            

    

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	(b)  	
              Non-Solicitation.
                In the event that the Executive receives Severance Payments under
                Section
                5 of this Agreement, the Executive agrees that for the two (2) year
                period
                following the Date of Termination, the Executive will not, directly
                or
                indirectly, individually or on behalf of any other person, firm,
                corporation or other entity, knowingly solicit, aid or induce any
                managerial level employee of the Company or any of its subsidiaries
                or
                affiliates to leave such employment in order to accept employment
                with or
                render services to or with any other person, firm, corporation or
                other
                entity unaffiliated with the Company or knowingly take any action
                to
                materially assist or aid any other person, firm, corporation or other
                entity in identifying or hiring any such employee (provided, that
                the
                foregoing shall not be violated by general advertising not targeted
                at
                Company employees nor by serving as a reference for an employee with
                regard to an entity with which the Executive is not affiliated).For
                the
                avoidance of doubt, if a managerial level employee on his or her
                own
                initiative contacts the Executive for the primary purpose of securing
                alternative employment, any action taken by the Executive thereafter
                shall
                not be deemed a breach of this Section
                10(b).

            

    

     

    
      	(c)  	
              Non-Competition.
                The
                Executive acknowledges that the Executive performs services of a
                unique
                nature for the Company that are irreplaceable, and that the Executive’s
                performance of such services to a competing business will result
                in
                irreparable harm to the Company. Accordingly, in the event that the
                Executive receives Severance Payments described in Section 5 of this
                Agreement, the Executive agrees that for a period of two (2) years
                following the Date of Termination, the Executive will not, directly
                or
                indirectly, become connected with, promote the interest of, or engage
                in
                any other business or activity competing with the business of the
                Company
                within the geographical area in which the business of the Company
                is
                conducted.

            

    

     

    
      	(d)  	
              Non-Disparagement.
                Each
                of the Executive and the Company (for purposes hereof, “the Company” shall
                mean only (i) the Company by press release or otherwise and (ii)
                the
                executive officers and directors thereof and not any other employees)
                agrees not to make any public statements that disparage the other
                party,
                or in the case of the Company, its respective affiliates, officers,
                directors, products or services. Notwithstanding the foregoing, statements
                made in the course of sworn testimony in administrative, judicial
                or
                arbitral proceedings (including, without limitation, depositions
                in
                connection with such proceedings) or otherwise as required by law
                shall
                not be subject to this Section
                10(d).

            

    

     

    
      	(e)  	
              Return
                of Company Property and Records.
                The Executive agrees that upon termination of the Executive’s employment,
                for any cause whatsoever, the Executive will surrender to the Company
                in
                good condition (reasonable wear and tear excepted) all property and
                equipment belonging to the Company and all records kept by the Executive
                containing the names, addresses or any other information with regard
                to
                customers or customer contacts of the Company, or concerning any
                proprietary or confidential information of the Company or any operational,
                financial or other documents given to the Executive during the Executive’s
                employment with the Company.

            

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	(f)  	
              Cooperation.
                The Executive agrees that, following termination of the Executive’s
                employment for any reason, the Executive shall upon reasonable advance
                notice, and to the extent it does not interfere with previously scheduled
                travel plans and does not unreasonably interfere with other business
                activities or employment obligations, assist and cooperate with the
                Company with regard to any matter or project in which the Executive
                was
                involved during the Executive’s employment, including any litigation. The
                Company shall compensate the Executive for any lost wages (or, if
                the
                Executive is not then employed, provide reasonable compensation as
                determined by the Compensation Committee) and expenses associated
                with
                such cooperation and assistance.

            

    

     

    
      	(g)  	
              Assignment
                of Inventions.
                The Executive will promptly communicate and disclose in writing to
                the
                Company all inventions and developments including software, whether
                patentable or not, as well as patents and patent applications (hereinafter
                collectively called “Inventions”), made, conceived, developed, or
                purchased by the Executive, or under which the Executive acquires
                the
                right to grant licenses or to become licensed, alone or jointly with
                others, which have arisen or jointly with others, which have arisen
                or
                which arise out of the Executive’s employment with the Company, or relate
                to any matters directly pertaining to the business of the Company
                or any
                of its subsidiaries. Included herein as if developed during the employment
                period is any specialized equipment and software developed for use
                in the
                business of the Company. All of the Executive’s right, title and interest
                in, to, and under all such Inventions, licenses, and right to grant
                licenses shall be the sole property of the Company. As to all such
                Inventions, the Executive will, upon request of the Company execute
                all
                documents which the Company deems necessary or proper to enable it
                to
                establish title to such Inventions or other rights, and to enable
                it to
                file and prosecute applications for letters patent of the United
                States
                and any foreign country; and do all things (including the giving
                of
                evidence in suits and other proceedings) which the Company deems
                necessary
                or proper to obtain, maintain, or assert patents for any and all
                such
                Inventions or to assert its rights in any Inventions not
                patented.

            

    

     

    
      	(h)  	
              Equitable
                Relief and Other Remedies.
                The parties acknowledge and agree that the other party’s remedies at law
                for a breach or threatened breach of any of the provisions of this
                Section
                would be inadequate and, in recognition of this fact, the parties
                agree
                that, in the event of such a breach or threatened breach, in addition
                to
                any remedies at law, the other party, without posting any bond, shall
                be
                entitled to obtain equitable relief in the form of specific performance,
                temporary restraining order, a temporary or permanent injunction
                or any
                other equitable remedy which may then be
                available.

            

    

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	(i)  	
              Reformation.
                If it is determined by a court of competent jurisdiction in any state
                that
                any restriction in this Section 10 is excessive in duration or scope
                or is
                unreasonable or unenforceable under the laws of that state, it is
                the
                intention of the parties that such restriction may be modified or
                amended
                by the court to render it enforceable to the maximum extent permitted
                by
                the law of that state.

            

    

     

    
      	(j)  	
              Survival
                of Provisions.
                The obligations contained in this Section 10 shall survive the termination
                or expiration of the Executive’s employment with the Company and shall be
                fully enforceable thereafter.

            

    

     

    11.  Conditions.
      Any
      payments or benefits made or provided pursuant to this Agreement are subject
      to
      the Executive’s:

     

    
      	(a)  	
              compliance
                with the provisions of Section 10
                hereof;

            

    

     

    
      	(b)  	
              delivery
                to the Company of an executed Agreement and General Release (the
“General
                Release”), which shall be substantially in the form attached hereto as
                Appendix B (with such changes therein or additions thereto as needed
                under
                then applicable law to give effect to its intent and purpose) within
                21
                days of presentation thereof by the Company to the Executive:
                and

            

    

     

    
      	(c)  	
              delivery
                to the Company of a resignation from all offices, directorships and
                fiduciary positions with the Company, its affiliates and employee
                benefit
                plans.

            

    

     

    12.  Miscellaneous.
      No
      provision of this Agreement may be modified, waived or discharged unless such
      waiver, modification or discharge is agreed to in writing and signed by the
      Executive and the President of the Company or his designee. No waiver by either
      party hereto at any time of any breach by the other party hereto of, or of
      any
      lack of compliance with, any condition or provision of this Agreement to be
      performed by such other party shall be deemed a waiver of similar or dissimilar
      provisions or conditions at the same or at any prior or subsequent time. The
      validity, interpretation, construction and performance of this Agreement shall
      be governed by the laws of Connecticut without regard to its conflicts of law
      principles. Any payments provided for hereunder shall be paid net of any
      applicable withholding required under federal, state or local law and any
      additional withholding to which the Executive has agreed. The obligations of
      the
      Company and the Executive under this Agreement which by their nature may require
      either partial or total performance after its expiration shall survive any
      such
      expiration.

     

    13.  Validity;
      Counterparts.
      The
      invalidity or unenforceability of any provision of this Agreement shall not
      affect the validity or enforceability of any other provision of this Agreement,
      which shall remain in full force and effect. This Agreement may be executed
      in
      several counterparts, each of which shall be deemed to be an original but all
      of
      which together will constitute one and the same instrument.

     

    14.  Prior
      Agreements.
      This
      Agreement supersedes and replaces the Prior Agreement. This Agreement supersedes
      any other agreements or representations, oral or otherwise, express or implied,
      with respect to the subject matter hereof which have been made by either party.
      By signing this Agreement, the Executive releases and discharges the Company
      from any and all obligations and liabilities heretofore or now existing under
      or
      by virtue of the Prior Agreement.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    15.  Coordination
      with Employment Agreement.
      In the
      event that the Executive receives compensation or benefits under the Executive’s
      Employment Agreement and thereafter becomes entitled to similar compensation
      or
      benefits under this Agreement, the compensation and benefits paid or provided
      under the Employment Agreement shall be an offset against the similar
      compensation and benefits payable or to be provided under this
      Agreement.

     

    16.  Settlement
      of Disputes.
      All
      claims by the Executive for benefits under this Agreement shall be directed
      to
      and determined by the Board and shall be in writing. Any denial by the Board
      of
      a claim for benefits under this Agreement shall be delivered to the Executive
      in
      writing and shall set forth the specific reasons for the denial and the specific
      provisions of this Agreement relied upon. The Board shall afford a reasonable
      opportunity to the Executive for a review of the decision denying a claim and
      shall further allow the Executive to appeal to the Board a decision of the
      Board
      within sixty (60) days after notification by the Board that the Executive’s
      claim has been denied.

     

    17.  Arbitration.
      Any
      further dispute or controversy arising under or in connection with this
      Agreement shall be settled exclusively by arbitration in Hartford, Connecticut,
      in accordance with the rules of the American Arbitration Association then in
      effect; provided, however, that the evidentiary standards set forth in this
      Agreement shall apply. Judgment may be entered on the arbitrator’s award in any
      court having jurisdiction. Notwithstanding any provision of this Agreement
      to
      the contrary, the Executive shall be entitled to seek specific performance
      of
      the Executive’s right to be paid until the Date of Termination during the
      pendency of any dispute or controversy arising under or in connection with
      this
      Agreement.

     

    18.  Definitions.
      For
      purposes of this Agreement, the following terms shall have the meanings
      indicated below:

     

    
      	(a)  	
              “Affiliate”
                shall have the meaning set forth in Rule 12b-2 promulgated under
                Section
                12 of the Exchange Act.

            

    

    

    
      	(b)  	
              “Beneficial
                Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange
                Act.

            

    

    

    
      	(c)  	
              “Board”
                shall mean the Board of Directors of the
                Company.

            

    

    

    
      	(d)  	
              “Cause”
                for termination by the Company of the Executive’s employment shall mean
                (i) the willful and continued failure by the Executive to substantially
                perform the Executive’s duties with the Company (other than any such
                failure resulting from the Executive’s incapacity due to physical or
                mental illness or any such actual or anticipated failure after the
                issuance of a Notice of Termination for Good Reason by the Executive
                pursuant to Section 6.1 of this Agreement) after a written demand
                for
                substantial performance is delivered to the Executive by the Board,
                which
                demand specifically identifies the manner in which the Board believes
                that
                the Executive has not substantially performed the Executive’s duties, or
                (ii) the willful engaging by the Executive in conduct which is
                demonstrably and materially injurious to the Company or its subsidiaries,
                monetarily or otherwise. For purposes of clauses (i) and (ii) of
                this
                definition, (x) no act, or failure to act, on the Executive’s part shall
                be deemed “willful” unless done, or omitted to be done, by the Executive
                not in good faith and without reasonable belief that the Executive’s act,
                or failure to act, was in the best interest of the Company and (y)
                in the
                event of a dispute concerning the application of this provision,
                no claim
                by the Company that Cause exists shall be given effect unless the
                Company
                establishes to the Board by clear and convincing evidence that Cause
                exists. Notwithstanding the foregoing, Cause shall not include any
                act or
                omission of which the Audit Committee of the Board (or the full Board)
                has
                had actual knowledge of all material facts related thereto for at
                least 90
                days without asserting that the act or omission constitutes
                Cause.

            

    

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	(e)  	
              “Change
                in Control” for purposes of this Agreement shall mean any of the following
                events, provided that such an event is not also a Management
                Buyout:

            

    

    

    
      	(I)  	
              any
                Person is or becomes the Beneficial Owner directly or indirectly,
                of
                securities of the Company representing thirty-five (35%) or more
                of the
                combined voting power of the Company’s then outstanding
                voting securities generally entitled to vote in the election of directors
                of the Company;
                provided, however, that no Change in Control will be deemed to have
                occurred as a result of a change in ownership percentage resulting
                solely
                from an acquisition of securities by the Company or a transaction
                described in clause (A) of paragraph (III)
                below;

            

    

     

    
      	(II)  	
              during
                any period of two consecutive years, individuals who, as of the beginning
                of such period, constitute the Board (the “Incumbent Board”) cease to
                constitute at least a majority of the Board; provided, that any person
                becoming a director of the Company subsequent to the beginning of
                such
                period whose election, or nomination for election by the Company’s
                shareholders, was approved by a vote of at least a majority of the
                directors then comprising the Incumbent Board shall be considered
                as
                though such individual were a member of the Incumbent Board, but
                excluding, for this purpose, any such individual whose initial assumption
                of office occurs as a result of either an actual or threatened election
                contest, including but not limited to a consent solicitation, relating
                to
                the election of directors of the Company and whose appointment or
                election
                was not approved by at least a majority of the directors of the Company
                in
                office immediately before any such
                contest;

            

    

     

    
      	(III)  	
              there
                is consummated a Merger of the Company with any other business entity,
                other than (A) a Merger which would result in the securities of the
                Company generally entitled to vote in the election of directors of
                the
                Company outstanding immediately prior to such Merger continuing to
                represent (either by remaining outstanding or by being converted
                into such
                securities of the surviving entity or any parent thereof), in combination
                with the ownership of any trustee or other fiduciary holding such
                securities under an employee benefit plan of the Company or any
                Subsidiary, at least 50% of the combined voting power of the voting
                securities of the Company or such surviving entity or any parent
                thereof
                outstanding immediately after such Merger, generally entitled to
                vote in
                the election of directors of the Company or such surviving entity
                or any
                parent thereof and, in the case of such surviving entity or any parent
                thereof, of a class registered under Section 12 of the Exchange Act,
                or
                (B) a Merger effected to implement a recapitalization of the Company
                (or
                similar transaction) in which no Person is or becomes the Beneficial
                Owner, directly or indirectly, of securities of the Company representing
                35% or more of the combined voting power of the Company’s then outstanding
                voting securities generally entitled to vote in the election of directors
                of the Company; or

            

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	(IV)  	
              the
                stockholders of the Company approve a plan of complete liquidation
                or
                dissolution of the Company or there is consummated the sale or disposition
                by the Company of all or substantially all of the Company’s assets, other
                than a sale or disposition by the Company of all or substantially
                all of
                the Company’s assets to an entity where the outstanding securities
                generally entitled to vote in the election of directors of the Company
                immediately prior to the transaction continue to represent (either
                by
                remaining outstanding or by being converted into such securities
                of the
                surviving entity or any parent thereof) 50% or more of the combined
                voting
                power of the outstanding voting securities of such entity generally
                entitled to vote in such entity’s election of directors immediately after
                such sale and of a class registered under Section 12 of the Exchange
                Act.
                

            

    

     

    Within
      five (5) days after a Change in Control has occurred, the Company shall deliver
      to the Executive a written statement memorializing the date that the Change
      in
      Control occurred.

    

    
      	(f)  	
              “Code”
                shall mean the Internal Revenue Code of 1986, as amended from time
                to
                time, and any successor Code, and related rules, regulations and
                interpretations.

            

    

    

    
      	(g)  	
              “Company”
                shall mean Kaman Corporation and, except in determining under Section
                18(e) hereof whether or not any Change in Control of the Company
                has
                occurred, shall include any successor to its business and/or assets.
                

            

    

     

    
      	(h)  	
              “Consultant”
                shall have the meaning set forth in Appendix A of this
                Agreement.

            

    

    

    
      	(i)  	
              “Date
                of Termination” shall have the meaning set forth in Section 6.2 of this
                Agreement.

            

    

    

    
      	(j)  	
              “Disability”
                shall be deemed the reason for the termination by the Company of
                the
                Executive’s employment, if, as a result of the Executive’s incapacity due
                to physical or mental illness, the Executive shall have been absent
                from
                the full-time performance of the Executive’s duties with the Company for a
                period of six (6) consecutive months, the Company shall have given
                the
                Executive a Notice of Termination for Disability, and, within thirty
                (30)
                days after such Notice of Termination is given, the Executive shall
                not
                have returned to the full-time performance of the Executive’s
                duties.

            

    

    

    
      	(k)  	
              “Exchange
                Act” shall mean the Securities Exchange Act of 1934, as amended from time
                to time.

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      	(l)  	
              “Excise
                Tax” shall mean any excise tax imposed under Section 4999 of the
                Code.

            

    

    

    
      	(m)  	
              “Executive”
                shall mean the individual named in the preamble to this
                Agreement

            

    

    

    
      	(n)  	
              “Good
                Reason” for termination by the Executive of the Executive’s
                employment
                shall mean the occurrence (without the Executive’s express written
                consent) after any Change in Control (if more than one Change in
                Control
                has occurred, any reference to a Change in Control in this subsection
                (n)
                shall refer to the most recent Change in Control), of any one of
                the
                following acts by the Company, or failures by the Company to act,
                unless,
                in the case of any act or failure to act described in paragraph (I),
                (V),
                (VI), or (VII) below, such act or failure to act is corrected prior
                to the
                Date of Termination specified in the Notice of Termination given
                in
                respect thereof:

            

    

    

    
      	(I)  	
              the
                assignment to the Executive of any duties inconsistent with the
                Executive’s status as Executive Vice President and Chief Financial Officer
                of the Company or a substantial diminution in the nature or status
                of the
                Executive’s responsibilities from those in effect immediately prior to the
                Change in Control;

            

    

     

    
      	(II)  	
              a
                reduction by the Company in the Executive’s annual Base Salary as in
                effect on the date of this Agreement or as the same may be increased
                from
                time to time;

            

    

     

    
      	(III)  	
              the
                relocation of the Executive’s principal place of employment to a location
                more than 50 miles from the Executive’s principal place of employment
                immediately prior to the Change in Control or the Company’s requiring the
                Executive to be based anywhere other than such principal place of
                employment (or permitted relocation thereof) except for required
                travel on
                the Company’s business to an extent substantially consistent with the
                Executive’s business travel obligations immediately prior to the Change in
                Control;

            

    

     

    
      	(IV)  	
              the
                failure by the Company to pay to the Executive any portion of the
                Executive’s current compensation, or to pay to the Executive any portion
                of an installment of deferred compensation under any deferred compensation
                program of the Company, within thirty (30) days of the date such
                compensation is due;

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	(V)  	
              the
                failure by the Company to continue in effect any compensation plan
                in
                which the Executive participates immediately prior to the Change
                in
                Control which is material to the Executive’s total compensation
                (including, but not limited to, the Kaman Corporation Compensation
                Administration Plan, Kaman Corporation Cash Bonus Plan, and Kaman
                Corporation 2003 Stock Incentive Plan), unless an equitable arrangement
                (embodied in an ongoing substitute or alternative plan) has been
                made with
                respect to such plan, or the failure by the Company to continue the
                Executive’s participation therein (or in such substitute or alternative
                plan) on a basis not materially less favorable, both in terms of
                the
                amount or timing of payment of benefits provided and the level of
                the
                Executive’s participation relative to other participants, as existed
                immediately prior to the Change in
                Control;

            

    

     

    
      	(VI)  	
              the
                failure by the Company to continue to provide the Executive with
                benefits
                substantially similar to those enjoyed by the Executive under any
                of the
                Company’s life insurance, health and accident, or disability plans in
                which the Executive was participating immediately prior to the Change
                in
                Control, the taking of any other action by the Company which would
                directly or indirectly materially reduce any of such benefits or
                deprive
                the Executive of any material fringe benefit enjoyed by the Executive
                at
                the time of the Change in Control, or the failure by the Company
                to
                provide the Executive with the number of paid vacation days to which
                the
                Executive is entitled on the basis of years of service with the Company
                in
                accordance with the Company’s normal vacation policy in effect at the time
                of the Change in Control, provided, however, that this paragraph
                shall not
                be construed to require the Company to provide the Executive with
                a
                defined benefit pension plan if no such plan is provided to similarly
                situated executive officers of the Company or its Affiliates;
                or

            

    

     

    
      	(VII)  	
              any
                purported termination of the Executive’s employment which is not effected
                pursuant to a Notice of Termination satisfying the requirements of
                Section
                6.1 of this Agreement; for purposes of this Agreement, no such purported
                termination shall be effective.

            

    

     

    The
      Executive’s right to terminate the Executive’s employment for Good Reason shall
      not be affected by the Executive’s incapacity due to physical or mental illness.
      The Executive’s continued employment shall not constitute consent to, or a
      waiver of rights with respect to, any act or failure to act constituting Good
      Reason hereunder. 

     

    Notwithstanding
      anything to the contrary above, the Executive shall not have “Good Reason” to
      terminate employment due solely to one or more of the following events: (1)
      there is a diminution of the business of the Company or any of its subsidiaries,
      including, without limitation, a sale or other transfer of property or other
      assets of the Company or its subsidiaries, or a reduction in the Executive’s
      business unit’s head count or budget, or (2) a suspension of the Executive’s
      position, job functions, authorities, duties and responsibilities while on
      paid
      administrative leave due to a reasonable belief by the Board that the Executive
      has engaged in conduct that would give adequate grounds to terminate the
      Executive’s employment for Cause.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	(o)  	
              “Gross-Up
                Payment” shall have the meaning set forth in Section 5.2 of this
                Agreement.

            

    

     

    
      	(p)  	
              “Management
                Buyout” means any event or transaction which would otherwise constitute a
                Change in Control (a “Transaction”) if, in connection with the
                Transaction, the Executive, members of the Executive's immediate
                family,
                and/or the “Executive's Affiliates” (as defined below) participate,
                directly or beneficially, as an equity investor in, or have the option
                or
                right to acquire, whether or not vested, equity interests of, the
                acquiring entity or any of its Affiliates (the “Acquiror”) having a
                percentage interest therein greater than 1%. For purposes of the
                preceding
                sentence, a party shall not be deemed to have participated as an
                equity
                investor in the Acquiror by virtue of (i) obtaining beneficial ownership
                of any equity interest in the Acquiror as a result of the grant to
                the
                party of an incentive compensation award under one or more incentive
                plans
                of the Acquiror (including, but not limited to, the conversion in
                connection with the Transaction of incentive compensation awards
                of the
                Company into incentive compensation awards of the Acquiror), on terms
                and
                conditions substantially equivalent to those applicable to other
                employees
                of the Company at a comparable level as such party immediately prior
                to
                the Transaction, after taking into account normal differences attributable
                to job responsibilities, title and the like, or (ii) obtaining beneficial
                ownership of any equity interest in the Acquiror on terms and conditions
                substantially equivalent to those obtained in the Transaction by
                all other
                shareholders of the Company or (iii) the party’s interests in any
                tax-qualified defined benefit or defined contribution pension or
                retirement plan in which such party or any family member is a participant
                or beneficiary. The “Executive’s Affiliates” at any time consist of any
                entity in which the Executive and/or members of the Executive’s immediate
                family then own, directly or beneficially, or have the option or
                right to
                acquire, whether or not vested, greater than 10% of such entity’s equity
                interests, and all then current directors and executive officers
                of the
                Company who are members of any group, that also includes the Executive,
                a
                member of the Executive’s immediate family and/or any such entity, in
                which the members have agreed to act together for the purpose of
                participating in the Transaction. The Executive’s immediate family
                consists of the Executive’s spouse, parents, children and
                grandchildren.

            

    

    

    
      	(q)  	
              “Merger”
                means a merger, share exchange, consolidation or similar business
                combination under applicable law. 

            

    

    

    
      	(r)  	
              “Notice
                of Termination” shall have the meaning set forth in Section 6.1 of this
                Agreement.

            

    

    

    
      	(s)  	
              “Payments”
                shall have the meaning set forth in Section 5.1 of this
                Agreement.

            

    

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	(t)  	
              “Person”
                shall have the meaning given in Section 3(a)(9) of the Exchange Act,
                as
                modified and used in Sections 13(d) and 14(d) thereof, except that
                such
                term shall not include (i) the Company or any of its direct or indirect
                Subsidiaries, (ii) a trustee or other fiduciary holding securities
                under
                an employee benefit plan of the Company, (iii) an underwriter temporarily
                holding securities pursuant to an offering of such securities, or
                (iv) a
                corporation owned, directly or indirectly, by the stockholders of
                the
                Company in substantially the same proportions and with substantially
                the
                same voting rights as their ownership and voting rights with respect
                to
                the Company. 

            

    

    

    
      	(u)  	
              “Subsidiary”
                shall mean any corporation within the meaning of Section 424(f) of
                the
                Code.

            

    

    

    
      	(v)  	
              “Term”
                shall mean the period of time described in Section 2 of this
                Agreement.

            

    

    

    19.   Payment
      of Compensation.
      The
      parties shall revisit this Agreement when the IRS issues final regulations
      under
      Section 409A of the Code for the sole purpose of determining whether any
      amendments are required in order to comply with such regulations. The parties
      shall promptly agree in good faith on appropriate provisions to avoid any
      material risk of noncompliance without materially changing the economic value
      (to the Executive) or the cost (to the Company) of this Agreement including,
      if
      necessary, the deferral of any amount payable hereunder upon separation from
      service to the first date such amount may be paid without incurring tax under
      Section 409A of the Code, in which case such payment shall bear interest at
      the
      applicable federal rate under Section 1274 of the Code. Notwithstanding the
      foregoing, the Company shall in no event be obligated to indemnify the Executive
      for any taxes or interest that may be assessed by the IRS pursuant to Section
      409A of the Code.

     

    
      
         

        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties have executed this agreement.

     

    

      
        	
                 

                 

              	
                  

                Kaman
                  Corporation

              	 	 
	 	 	 	 	 
	 	 	 /s/ Paul
                R. Kuhn	 	2/20/07
	 	
                By:  

              	
                Paul
                  R. Kuhn

              	 	
                Date

              
	 	
                Its:

              	
                President
                  And Chief Executive Officer

              	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	
                EXECUTIVE

              	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	
                 

              	
                /s/
                  Robert M. Garneau

              	 	
                February
                  20, 2007

              
	 	 	
                Robert
                  M. Garneau

              	 	 Date
	 	 	 	 	 

      

    

    
 

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    APPENDIX
      A

    

    TAX
      GROSS-UP PAYMENT RULES AND PROCEDURES

     

    1. Subject
      to Paragraph 3 below, all determinations required to be made under Section
      5.2
      of this Agreement, including whether a Gross-Up Payment is required and the
      amount of such Gross-Up Payment, shall be made by an accounting firm (the
“Consultant”) selected in accordance with Paragraph 2 below. The Consultant
      shall provide detailed supporting calculations both to the Company and Executive
      within 15 business days of the event that results in the potential for an excise
      tax liability for the Executive, which could include but is not limited to
      a
      Change in Control and the subsequent vesting of any cash payments or awards,
      or
      the Executive’s termination of employment, or such earlier time as is required
      by the Company. The initial Gross-Up Payment, if any, as determined pursuant
      to
      this Paragraph 1, shall be paid on the Executive’s behalf to the applicable
      taxing authorities within five (5) days of the receipt of the Consultant’s
      determination. If the Consultant determines that the Executive is not subject
      to
      Excise Tax, it shall furnish the Executive with a written report indicating
      that
      he has substantial authority not to report any Excise Tax on his federal income
      tax return. Any determination by the Consultant shall be binding upon the
      Company and Executive. As a result of the uncertainty in the application of
      Section 4999 of the Code at the time of the initial determination by the
      Consultant hereunder, it is possible that Gross-Up Payments which will not
      have
      been made by the Company should have been made (“Underpayment”), consistent with
      the calculations required to be made hereunder. In the event that the Company
      exhausts its remedies pursuant to Paragraph 3 below and Executive thereafter
      is
      required to make a payment or additional payment of any Excise Tax, the
      Consultant shall determine the amount of the Underpayment that has occurred
      and
      any such Underpayment, increased by all applicable interest and penalties
      associated with the Underpayment, shall be promptly paid by the Company to
      or
      for the benefit of Executive. For purposes of determining the amount of the
      Gross-Up Payment, Executive shall be deemed to pay federal income tax at the
      highest marginal rate of federal income taxation in the calendar year in which
      the Gross-Up Payment is to be made and state and local income taxes on earned
      income at the highest marginal rate of taxation in the state and locality of
      Executive’s residence on the Date of Termination, (or the date of the Change in
      Control if the Executive is subject to Excise Tax prior to the issuance of
      a
      Notice of Termination) net of the maximum reduction in federal income taxes
      which could be obtained from deduction of such state and local
      taxes.

     

    2. The
      Consultant shall be a nationally recognized public accounting firm, benefits
      consultant or law firm proposed by the Company and agreed upon by the Executive.
      If Executive and the Company cannot agree on the firm to serve as the Consultant
      within ten (10) days after the date on which the Company proposed to Executive
      an entity to serve as the Consultant, then Executive and the Company shall
      each
      select one and those two firms shall jointly select the entity to serve as
      the
      Consultant within ten (10) days after being requested by the Company and
      Executive to make such selection. The Company shall pay the Consultant’s
      fee.

     

    
      
        
        

      

      
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    3. Executive
      shall notify the Company in writing of any claim by the Internal Revenue Service
      that, if successful, would require the payment by the Company of the Gross-Up
      Payment. Such notification shall be given as soon as practicable, but no later
      than fifteen (15) business days after Executive knows of such claim and
      Executive shall apprise the Company of the nature of such claim and the date
      on
      which such claim is requested to be paid. Executive shall not pay such claim
      prior to the expiration of the period ending on the date that any payment of
      taxes with respect to such claim is due or the thirty day period following
      the
      date on which Executive gives such notice to the Company, whichever period
      is
      shorter. If the Company notifies Executive in writing prior to the expiration
      of
      such period that it desires to contest such claim, Executive shall (i) give
      the
      Company any information reasonably requested by the Company relating to such
      claim, (ii) take such action in connection with contesting such claim as the
      Company shall reasonably request in writing from time to time, including,
      without limitation, accepting legal representation with respect to such claim
      by
      an attorney reasonably selected by the Company, (iii) cooperate with the Company
      in good faith in order effectively to contest such claim, and (iv) permit the
      Company to participate in any proceedings relating to such claim; provided,
      however, that the Company shall bear and pay directly all costs and expenses
      (including attorneys fees and any additional interest and penalties) incurred
      in
      connection with such contest and shall indemnify and hold Executive harmless,
      on
      an after-tax basis, for any Excise Tax or income tax, including interest and
      penalties with respect thereto, imposed as a result of such representation
      and
      payment of costs and expenses. Without limitation of the foregoing provisions
      of
      this Paragraph 3, the Company shall control all proceedings taken in connection
      with such contest and, at its sole option, may pursue or forego any and all
      administrative appeals, proceedings, hearings and conferences with the taxing
      authority in respect to such claim and may, at its sole option, either direct
      Executive to pay the tax claimed and sue for a refund or contest the claim
      in
      any permissible manner, and Executive agrees to prosecute such contest to a
      determination before any administrative tribunal, in a court of initial
      jurisdiction and in one or more appellate courts, as the Company shall
      determine; provided, however, that if the Company directs Executive to pay
      such
      claim and sue for a refund, the Company shall advance the amount of such payment
      to Executive, on an interest-free basis and shall indemnify and hold Executive
      harmless, on an after-tax basis, from any Excise Tax and income tax, including
      interest or penalties with respect thereto, imposed with respect to such advance
      or with respect to any imputed income with respect to such advance; and further
      provided that any extension of the statute of limitations relating to payment
      of
      taxes for the taxable year of Executive with respect to which such contested
      amount is claimed to be due is limited solely to such contested amount.
      Furthermore, the Company’s control of the contest shall be limited to issues
      with respect to which a Gross-Up Payment would be payable hereunder and
      Executive shall be entitled to settle or contest, as the case may be, any other
      issue raised by the Internal Revenue Service or any other
      authority.

     

    4. If,
      after
      the receipt by Executive of an amount advanced by the Company pursuant to
      Paragraph 3 above, Executive becomes entitled to receive any refund with respect
      to such claim, Executive shall (subject to the Company’s complying with the
      requirements of Paragraph 3), promptly pay to the Company the amount of such
      refund (together with any interest paid or credited thereon after taxes
      applicable thereto).

     

    
      
        
        

      

      
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    APPENDIX
      B

     

    FORM
      OF RELEASE

     

    AGREEMENT
      AND GENERAL RELEASE

     

    Kaman
      Corporation, its affiliates, subsidiaries, divisions, successors and assigns
      in
      such capacity, and the current, future and former employees, officers,
      directors, trustees and agents thereof (collectively referred to throughout
      this
      Agreement as “Employer”), and Robert M. Garneau (“Executive”), the Executive’s
      heirs, executors, administrators, successors and assigns (collectively referred
      to throughout this Agreement as “Employee”) agree:

     

    1. Last
      Day
      of Employment. Executive’s last day of employment with Employer is
      ______________. In addition, effective as of DATE, Executive resigns from the
      Executive’s positions as Executive Vice President and Chief Financial Officer of
      Employer and will not be eligible for any benefits or compensation after
      ________, including payments under the Executive’s Employment Agreement, other
      than as specifically provided under the Change in Control Agreement between
      Employer and Executive effective as of January 1, 2007 (the “Change in Control
      Agreement”).
      Executive further acknowledges and agrees that, after DATE, the Executive will
      not represent the Executive as being a director, employee, officer, trustee,
      agent or representative of Employer for any purpose. In addition, effective
      as
      of DATE, Executive resigns from all offices, directorships, trusteeships,
      committee memberships and fiduciary capacities held with, or on behalf of,
      Employer or any benefit plans of Employer. These resignations will become
      irrevocable as set forth in Section 3 below.

     

    2. Consideration.
      The parties acknowledge that this Agreement and General Release is being
      executed in accordance with Section 11 of the Change in Control
      Agreement.

     

    3. Revocation.
      Executive may revoke this Agreement and General Release for a period of seven
      (7) calendar days following the day Executive executes this Agreement and
      General Release. Any revocation within this period must be submitted, in
      writing, to Employer and state, “I hereby revoke my acceptance of our Agreement
      and General Release.” The revocation must be personally delivered to Employer’s
      _______________Chief Legal Officer, or his/her designee, or mailed to Kaman
      Corporation, 1332 Blue Hills Avenue, P.O. Box 1, Bloomfield, CT 06002, Attention
      Candace Clark, and postmarked within seven (7) calendar days of execution of
      this Agreement and General Release. This Agreement and General Release shall
      not
      become effective or enforceable until the revocation period has expired. If
      the
      last day of the revocation period is a Saturday, Sunday, or legal holiday in
      Hartford, Connecticut, then the revocation period shall not expire until the
      next following day which is not a Saturday, Sunday, or legal
      holiday.

     

    4. General
      Release of Claim. Subject to the full satisfaction by the Employer of its
      obligations under the Change in Control Agreement, Employee knowingly and
      voluntarily releases and forever discharges Employer from any and all claims,
      causes of action, demands, fees and liabilities of any kind whatsoever, whether
      known and unknown, against Employer, Employee has, has ever had or may have
      as
      of the date of execution of this Agreement and General Release, including,
      but
      not limited to, any alleged violation of:

     

    
      
        
        

      

      
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    - Title
      VII
      of the Civil Rights Act of 1964, as amended;

     

    - The
      Civil
      Rights Act of 1991;

     

    - Sections
      1981 through 1988 of Title 42 of the United States Code, as
      amended;

     

    - The
      Employee Retirement Income Security Act of 1974, as amended;

     

    - The
      Immigration Reform and Control Act, as amended;

     

    - The
      Americans with Disabilities Act of 1990, as amended;

     

    - The
      Age
      Discrimination in Employment Act of 1967, as amended;

     

    - The
      Older
      Workers Benefit Protection Act of 1990;

     

    - The
      Worker Adjustment and Retraining Notification Act, as amended;

     

    - The
      Occupational Safety and Health Act, as amended;

     

    - The
      Family and Medical Leave Act of 1993;

     

    
      
        -
          Any
          wage
          payment and collection, equal pay and other similar laws, acts and statutes
          of
          the State of Connecticut;

      

    

     

    
      
        -
          Any
          other
          federal, state or local civil or human rights law or any other local, state
          or
          federal law, regulation or ordinance; 

      

    

     

    
      
        -
          Any
          public policy, contract, tort, or common law; or

      

    

     

    
      
        -
          Any
          allegation for costs, fees, or other expenses including attorneys fees
          incurred
          in these matters.

      

    

     

    Notwithstanding
      anything herein to the contrary, the sole matters to which the Agreement and
      General Release do not apply are: (i) Employee’s express rights under any
      pension (including but not limited to any rights under the Kaman Corporation
      Supplemental Retirement Plan) or claims for accrued vested benefits under any
      other employee benefit plan, policy or arrangement maintained by Employer or
      under COBRA; (ii) Employee’s rights under the provisions of the Change in
      Control Agreement which are intended to survive termination of employment;
      or
      (iii) Employee’s rights as a stockholder.

     

    5. No
      Claims
      Permitted. Employee waives Executive’s right to file any charge or complaint
      against Employer arising out of Executive’s employment with or separation from
      Employer before any federal, state or local court or any state or local
      administrative agency, except where such waivers are prohibited by
      law.

     

    6. Affirmations.
      Employee affirms Executive has not filed, has not caused to be filed, and is
      not
      presently a party to, any claim, complaint, or action against Employer in any
      forum. Employee further affirms that the Executive has been paid and/or has
      received all compensation, wages, bonuses, commissions, and/or benefits to
      which
      Executive may be entitled and no other compensation, wages, bonuses, commissions
      and/or benefits are due to Executive, except as provided under the Change in
      Control Agreement. Employee also affirms Executive has no known workplace
      injuries.

     

    
      
        
        

      

      
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    7. Cooperation;
      Return of Property. In accordance with Section 10(f) of the Change in Control
      Agreement Employee agrees to reasonably cooperate with Employer and its counsel
      in connection with any investigation, administrative proceeding or litigation
      relating to any matter that occurred during Executive’s employment in which
      Executive was involved or of which Executive has knowledge and Employer will
      reimburse the Employee for any reasonable out-of-pocket travel, delivery or
      similar expenses incurred and lost wages (or will provide reasonable
      compensation if Executive is not then employed) in providing such service to
      Employer. The Employee represents the Executive has complied with Section 10(e)
      of the Change in Control Agreement regarding the return of Employer property
      and
      records.

     

    8. Governing
      Law and Interpretation. This Agreement and General Release shall be governed
      and
      conformed in accordance with the laws of the State of Connecticut without regard
      to its conflict of laws provisions. In the event Employee or Employer breaches
      any provision of this Agreement and General Release, Employee and Employer
      affirm either may institute an action to specifically enforce any term or terms
      of this Agreement and General Release. Should any provision of this Agreement
      and General Release be declared illegal or unenforceable by any court of
      competent jurisdiction and should the provision be incapable of being modified
      to be enforceable, such provision shall immediately become null and void,
      leaving the remainder of this Agreement and General Release in full force and
      effect. Nothing herein, however, shall operate to void or nullify any general
      release language contained in the Agreement and General Release. 

     

    9. No
      Admission of Wrongdoing. Employee agrees neither this Agreement and General
      Release nor the furnishing of the consideration for this Release shall be deemed
      or construed at any time for any purpose as an admission by Employer of any
      liability or unlawful conduct of any kind.

     

    10. Amendment.
      This Agreement and General Release may not be modified, altered or changed
      except upon express written consent of both parties wherein specific reference
      is made to this Agreement and General Release.

     

    11. Entire
      Agreement. This Agreement and General Release sets forth the entire agreement
      between the parties hereto and fully supersedes any prior agreements or
      understandings between the parties; provided, however, that notwithstanding
      anything in this Agreement and General Release, the provisions in the Change
      in
      Control Agreement which are intended to survive termination of the Change in
      Control Agreement, including but not limited to those contained in Section
      10
      thereof, shall survive and continue in full force and effect. Employee
      acknowledges Executive has not relied on any representations, promises, or
      agreements of any kind made to Executive in connection with Executive’s decision
      to accept this Agreement and General Release.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    EMPLOYEE
      HAS BEEN ADVISED THAT EXECUTIVE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO
      REVIEW THIS AGREEMENT AND GENERAL RELEASE AND HAS BEEN ADVISED IN WRITING TO
      CONSULT WITH AN ATTORNEY PRIOR TO EXECUTION OF THIS AGREEMENT AND GENERAL
      RELEASE. 

     

    EMPLOYEE
      AGREES ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT AND
      GENERAL RELEASE DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL TWENTY-ONE
      (21) CALENDAR DAY CONSIDERATION PERIOD. 

     

    HAVING
      ELECTED TO EXECUTE THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE PROMISES
      SET FORTH HEREIN, AND TO RECEIVE THE SUMS AND BENEFITS SET FORTH IN THE CHANGE
      IN CONTROL AGREEMENT, EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE
      CONSIDERATION, ENTERS INTO THIS AGREEMENT AND GENERAL RELEASE INTENDING TO
      WAIVE, SETTLE AND RELEASE ALL CLAIMS EXECUTIVE HAS OR MIGHT HAVE AGAINST
      EMPLOYER.

     

    IN
      WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this
      Agreement and General Release as of the date set forth below:

     

    

      
        	
                 

                 

              	
                 

                 

              	
                 

                KAMAN
                  CORPORATION

              
	 	 	 
	 	
                By:  

              	 
	 	
                 

                Name:

              	
                 

                [NAME]

              
	 	
                Title:

              	 
	 	
                Date:

              	 
	 	 	 
	 	 	 
	 	 	 
	 	 	
                Robert
                  M. Garneau

              
	 	
                
                  Date:

                

              	 
	 	 	 

      

    

    

    
      
        
        

      

      
        25

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