Exhibit 10.1 LONG-TERM PERFORMANCE PROGRAM 2006 - 2008 PERFORMANCE PERIOD

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This performance period approved by the Personnel and Compensation Committee at the November 8, 2005 meeting measures Kaman performance for the period January 1, 2006 through December 31, 2008.

The participants approved by the Personnel and Compensation Committee at the November 8, 2005 meeting for participation for this performance period and their target awards are:

           

These participants are designated as Covered Employees under Section 2 (j) of the Kaman Corporation 2003 Stock Incentive Plan.

The specific performance measures and their weighting are:

 

Average return on capital will be the simple average of total return on capital achieved in each of the three (3) years of the performance period.

Growth in earnings per share will be calculated by taking the simple average of Kaman’s earnings per share for each of the three (3) years of the performance period and computing the compound growth rate of that average over the base period EPS. The base period EPS is the simple average of Kaman’s EPS for the years 2004 and 2005.

 

Total return to shareholders will be calculated on a dividends reinvested basis and will measure the change in value of an investment in Kaman shares for the period January 1, 2006 through December 31, 2008.

Kaman performance will be measured on a relative basis against the performance of the Russell 2000 index companies for the period January 1, 2006 through December 31, 2008 using the same performance measures:

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Average return on total capital

•

Growth in earnings per share

•

Total return to shareholders

In measuring the performance of the Russell 2000 companies, average return on total capital and total return to shareholders will be measured in the same way as Kaman’s performance is measured.

In measuring growth in earnings per share for the Russell 2000 index companies, the calculation will be the same except that the base year will be the earnings per share for 2005.

 In determining the actual award earned, each performance measure will be measured separately and the total of the three calculations will equal the total award earned

The actual award earned for each performance measure will be based on a comparison of Kaman’s performance as compared to that of the Russell 2000 index companies as follows:

All payments are meant to qualify as Qualified Performance-Based Awards under Section 15 (c) of the Kaman Corporation 2003 Stock Incentive Plan.

An example of how an actual award would be determined is shown on the attached page.

 

LONG-TERM PERFORMANCE PROGRAM
EXAMPLE OF PLAN CALCULATIONS
				PERFORMANCE MEASURES*
				EPS		Total Return
				Growth	ROTC	To S/H
Kaman Performance:
Year
2004				$ 0.10
2005				$ 0.20
2006				$ 0.30	16%
2007				$ 0.20	15%
2008				$ 0.40	17%
2004 - 2005 average				$ 0.15
2006 - 2008 average				$ 0.30	16%
Compound growth rate in EPS				26%
Total return to shareholders (assumed)						25%
Russell 2000 Index Company Performance (assumed):
	25th percentile			12%	5%	15%
	50th percentile			22%	12%	30%
	75th percentile			36%	22%	40%
*Performance measures are hypothetical and not intended as projections of future performance.
COMPUTATION OF ACTUAL AWARD EARNED
							Percent of
					% of Factor	Factor	Target Award
					Value Earned	Weighting	Earned
Growth in Earnings Per Share					129%	40%	52%
Average Return on Total Capital					140%	40%	56%
Total Return to Shareholders					75%	20%	15%
	Total % of Target Award Earned						123%