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      Kaman Corporation Form 8-K dated February 27, 2006
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">UNITED
      STATES</font></div>
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      AND EXCHANGE COMMISSION</font></div>
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      DC 20549</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">FORM
      8-K</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CURRENT
      REPORT PURSUANT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TO
      SECTION 13 OR 15(d) OF THE</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
      EXCHANGE ACT OF 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      report (Date of earliest event reported): February 27, 2006 (February 21,
      2006)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>Kaman
      Corporation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      Name of Registrant as Specified in Its Charter)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Connecticut</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
      or
      Other Jurisdiction</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
      Incorporation)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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          <tr>
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            </td>
            <td valign="top" width="2%">&#160;</td>
            <td valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>06-0613548</strong></font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                File Number)</font></div>
            </td>
            <td valign="top" width="2%">&#160;</td>
            <td valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                Employer Identification No.)</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="39%">&#160;</td>
            <td valign="top" width="2%">&#160;</td>
            <td valign="top" width="39%">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1332
                Blue Hills Avenue, Bloomfield, Connecticut</strong></font></div>
            </td>
            <td valign="top" width="2%">&#160;</td>
            <td valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>06002</strong></font></div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                of Principal Executive Offices)</font></div>
            </td>
            <td valign="top" width="2%">&#160;</td>
            <td valign="top" width="39%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
                Code)</font></div>
            </td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(860)
      243-7100</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant's
      Telephone Number, Including Area Code)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
      Applicable</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
      Name or Former Address, if Changed Since Last Report)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)</font></div>
            </td>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                240.14a-12)</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b))</font></div>
            </td>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font></div>
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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
                CFR
                240.13e-4(c))</font></div>
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          </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">1</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
        1.01.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Entry
        into a Material Definitive Agreement.</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Employment
        Arrangement with Paul R. Kuhn</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        a
        meeting held on February 21, 2006, the Board of Directors (the &#8220;Board&#8221;) of Kaman
        Corporation (the &#8220;Company&#8221;), upon recommendation of the Personnel and
        Compensation Committee of the Board, took the actions (a) with respect to
        employment terms for Mr. Paul R. Kuhn, the Company&#8217;s Chairman, President and
        Chief Executive Officer, and (b) the Kaman Corporation Supplemental Employees&#8217;
Retirement Plan (&#8220;SERP&#8221;), which provides supplemental pension benefits to
        certain of the Company&#8217;s senior management personnel, including its executive
        officers.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company has agreed to a new employment agreement (the &#8220;New Employment
        Agreement&#8221;) with Mr. Kuhn who will attain age 65 in October 2006. Mr. Kuhn has
        been the Company&#8217;s President and Chief Executive Officer since August 2, 1999.
        The New Employment Agreement replaces and supersedes the Company&#8217;s Amended and
        Restated Employment Agreement with Mr. Kuhn, as amended most recently on
        February 17, 2004 (the &#8220;Prior Employment Agreement&#8221;), and the Company&#8217;s Second
        Amended and Restated Change in Control Agreement with Mr. Kuhn dated November
        11, 2003 (the &#8220;Change in Control Agreement&#8221;).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        terms
        of Mr. Kuhn&#8217;s employment set forth in the New Employment Agreement are as
        follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        term
        of Mr. Kuhn&#8217;s employment will extend until February 21, 2008 (the &#8220;Employment
        Term&#8221;). The Company may appoint a successor President and Chief Executive
        Officer to Mr. Kuhn during the Employment Term, in which case Mr. Kuhn&#8217;s duties
        and responsibilities shall thereafter consist of assisting the Company and
        his
        successor in the senior management transition and serving as the Company&#8217;s
        Chairman. Mr. Kuhn&#8217;s compensation and benefits under the New Employment
        Agreement will not be affected by the appointment of a successor President
        and
        Chief Executive Officer.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        New
        Agreement entitles Mr. Kuhn to an annual base salary of $900,000 a year,
        and
        eligibility to receive an annual bonus for 2006 and 2007 (and eligibility
        for a
        pro-rated annual bonus in 2008) to be determined by the Corporation&#8217;s Personnel
        and Compensation Committee, with a target bonus opportunity to be not less
        than
        80% of base salary. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        New
        Employment Agreement provides for Mr. Kuhn&#8217;s participation in the Company&#8217;s
        employee benefit programs generally applicable to the Company&#8217;s senior
        executives. The Company will also continue to provide Mr. Kuhn with up to
        four
        weeks vacation, premium payments on a $1.2 million&#160;life
        insurance&#160;policy issued to Mr. Kuhn&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
        a
        company car as currently provided to him.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
        Kuhn
        shall be entitled to severance benefits from the Company only if (1) his
        employment is terminated without &#8220;cause&#8221; (as defined) or he resigns with &#8220;good
        reason&#8221; (as defined) during the Employment Term, and (2) he signs a release
        agreement reasonably acceptable to the Company. &#8220;Good reason&#8221; has been adjusted
        to reflect his duties and the compensation structure under the New Employment
        Agreement. Mr. Kuhn&#8217;s reduced role after the Company elects a successor
        President and Chief Executive Officer and the reduction to his benefit rights
        under the SERP as described below shall not provide Mr. Kuhn good reason
        to
        terminate employment or otherwise result in a constructive employment
        termination that triggers severance benefits. The termination of Mr. Kuhn&#8217;s
        employment with the Board&#8217;s consent after the appointment of a successor as
        President and Chief Executive Officer shall be treated as employment termination
        without cause. Expiration of the Employment Term on February 21, 2008 shall
        not
        trigger any payment of severance benefits.</font></div>
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          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
        Kuhn&#8217;s outstanding equity awards shall become fully vested upon (i) Mr. Kuhn&#8217;s
&#8220;retirement&#8221; (as defined), (ii) the termination of his employment without cause,
        for &#8220;disability&#8221; (as defined), or due to death, (iii) his resignation for good
        reason or (iv) a &#8220;change in control&#8221; (as defined).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(f)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        lump
        sum severance payment that may have otherwise been payable to Mr. Kuhn as
        part
        of his severance protection under the Prior Employment Agreement or Prior
        Change
        in Control Agreement (collectively, the &#8220;Prior Agreements&#8221;) is reduced under the
        New Employment Agreement. The Prior Change in Control Agreement provided
        a lump
        sum severance payment equal to three times Mr. Kuhn&#8217;s then current base salary
        and the most recent annual bonus paid to him (&#8220;Annual Compensation&#8221;). The lump
        sum severance payment under the Prior Employment Agreement equaled two times
        Mr.
        Kuhn&#8217;s Annual Compensation. The New Employment Agreement provides that the
        multiplier for the lump sum severance payment shall only reflect the period
        between Mr. Kuhn&#8217;s employment termination date and February 21,
        2008.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(g)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
        severance benefits payable to Mr. Kuhn upon a termination of employment without
        cause or resignation for good reason are: (i) a pro-rata portion of his annual
        bonus for the performance year in which his termination occurs, (ii) pro-rata
        payment of each outstanding long-term performance award ("LTIP") based on
        100%
        of the target value, (iii) title to the Company automobile on an &#8220;as is&#8221; basis,
        with the automobile&#8217;s fair market value being taxable to Mr. Kuhn; (iv)
        continued payment of the premiums on his $1.2 million life insurance&#160;policy
        during the remainder of his life; </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(v)
        continued participation at the Company&#8217;s expense for 18 months in all medical,
        dental and vision plans which cover Mr. Kuhn and his eligible dependents,
        subject to offset due to future employment; (vi) pro-rata&#160;vesting of LTIP
        awards;&#160;and (vii) all accrued and vested benefits under the Company&#8217;s
        compensation and benefit plans, programs and arrangements (collectively,
        &#8220;Accrued Benefits&#8221;).</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(h)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        tax
        gross-up for excise taxes under Section 4999 of the Internal Revenue Code
        (and
        income taxes on the gross-up) that become payable by Mr. Kuhn will be paid
        only
        if payments (including vesting of outstanding equity compensation awards)
        contingent on a change in ownership or control of the Company exceed the
        maximum
        amount (as determined under applicable tax rules) that Mr. Kuhn could receive
        without having any such payments become subject to such tax by at least
        $100,000.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
        Mr.
        Kuhn is discharged with cause or if he resigns without good reason, he will
        receive his unpaid base salary and earned bonus through the date of termination
        and the Accrued Benefits.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">3</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(j)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
        Mr.
        Kuhn&#8217;s employment is terminated due to his death or disability, Mr. Kuhn or his
        estate, as applicable, will receive Mr. Kuhn&#8217;s unpaid base salary and earned
        bonus through the date of termination, the Accrued Benefits and a pro-rata
        portion of Mr. Kuhn&#8217;s annual bonus for the performance year in which his death
        or disability occurred.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(k)
        If
        Mr. Kuhn retires, he will receive (i) a pro-rata portion of his annual bonus
        for
        the year of retirement, (ii) pro-rata vesting of LTIP awards, (iii) continued
        payment of the premiums&#160;on his $1.2 million life insurance policy during
        the remainder of his life, (iv) title to the company automobile on an "as
        is"
        basis, with the automobile's fair market value being taxable to Mr. Kuhn,
        and
        (v) the Accrued Benefits.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(l)
        Mr.
        Kuhn has agreed not to compete with the Company and not to solicit its employees
        during the 2-year period following termination of employment for any
        reason.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(m)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
        termination of employment for any reason, Mr. Kuhn will assist and cooperate
        with the Company regarding any matter or project in which he was involved
        during
        the Executive&#8217;s employment. The Company shall compensate Mr. Kuhn for any lost
        wages or expenses associated with such cooperation and assistance.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(n)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
        Kuhn
        acknowledges and agrees that the Prior Agreements are terminated and cancelled,
        and releases and discharges the Company from any and all obligations and
        liabilities now existing under or by virtue of the Prior
        Agreements.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(o)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        parties&#160;have agreed in good faith to amend the New Employment Agreement as
        may be required to comply with final regulations issued by the Treasury
        Department under Section 409A of the Internal Revenue Code without materially
        impacting the economic cost to the Company or economic value to Mr.
        Kuhn.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        copy of
        the New Employment Agreement&#160;dated as of February 24, 2006 and signed by
        Mr. Kuhn is filed as Exhibit&#160;10.1 hereto and incorporated herein by
        reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Sixth
        Amendment to SERP</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        its
        meeting on February 21, 2006, the Board also approved the Sixth Amendment
        to the
        SERP. The material changes to the SERP as reflected under the Sixth Amendment
        and effective on January 1, 2006 are as follows:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Only
        salary and annual bonus payable before the date of the Participant&#8217;s employment
        termination with respect to periods of active employment shall be eligible
        compensation under the SERP for all periods after December 31,
        2005.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Severance
        and equity compensation under any plan, program, arrangement or agreement
        of the
        Company or its affiliates that becomes taxable after December 31, 2005 shall
        be
        disregarded when determining a participant&#8217;s benefits under the
        SERP.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">4</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Sixth
        Amendment clarifies and modifies the terms of the Second Amendment to the
        SERP
        dated September 2, 1999, which provides for three years of credited service
        for
        each completed year of employment beginning on or after January 1, 2004.
        Mr.
        Kuhn shall continue to accrue credited service under the Second Amendment
        for
        2006 and 2007 provided that he remains employed as of the end of such year.
        Mr.
        Kuhn shall not earn any credited service based on employment after 2007.
        Mr.
        Kuhn shall receive credited service as if he remained employed with the Company
        through December 31, 2007 if his employment terminates before then in a manner
        that entitles him to severance benefits under the New Employment
        Agreement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        maximum lump sum payment (or its actuarial equivalent if payment is made
        in a
        form other than a single lump sum payment)&#160;to Mr. Kuhn shall be (1) $8.912
        million if Mr. Kuhn does not remain employed by the Company on December 31,
        2006; (2) $10.5 million if Mr. Kuhn does not remain employed by the Company
        on
        December 31, 2007; and (3) $12 million if Mr. Kuhn remains employed on or
        after
        December 31, 2007. The maximum benefit that Mr. Kuhn may receive from the
        SERP
        shall be increased to $12,000,000 if his employment terminates prior to December
        31, 2007 in a manner that entitles him to severance benefits under the New
        Employment Agreement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
        executed&#160;copy of the Sixth Amendment is filed as Exhibit&#160;10.2 hereto
        and incorporated herein by reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Stock
        Ownership Guidelines for Non-employee Directors and Management; Change to
        Director Compensation Structure</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
        its
        meeting on February 21, 2006, the Board of Directors also approved stock
        ownership guidelines both for non-employee Directors and for corporate
        management, effective immediately. The Board believes that the Directors
        and
        senior management should have a significant equity position in the company
        and
        that these guidelines will serve to further the Board's interest in encouraging
        a longer-term focus in managing the company. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        stock
        ownership guidelines that were adopted by the Board of Directors for
        non-employee Directors were recommended to the Board by the Corporate Governance
        Committee pursuant to a meeting held on February 21, 2006. The guidelines
        require each non-employee Director to have an ownership multiple of 3 times
        the
        annual cash retainer, which for the period 2006 and 2007 is $45,000. In
        addition, it was determined that the restricted stock awards of 2,000 shares
        of
        Common Stock that will be granted to the non-employee Directors as part of
        the
        director compensation package approved to take effect January 1, 2006 (and
        reported by Form 8-K dated November 10, 2005, <a href="http://www.sec.gov/Archives/edgar/data/54381/000005438105000090/form8-k.htm">ref.
        no.0000054381-05-000088</a>) will have restrictions immediately lapse and
        Directors who do not meet the ownership guidelines must hold shares received
        pursuant to such grants (with such shares being netted for the income tax
        effect
        thereof) for a period of 3 years or until the guidelines are met, whichever
        is
        earlier. In determining whether the guidelines have been achieved at any
        particular point, the price of the Common Stock will be the higher of (i)
        the
        then current market value determined by the closing price of the Common Stock
        on
        the date of the determination; or (ii) the closing price on February 21,
        2006,
        which was $21.13.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">5</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        stock
        ownership guidelines that were adopted by the Board of Directors for management
        were recommended to the Board by the Personnel and Compensation Committee
        pursuant to a meeting held on February 21, 2006. The guidelines require the
        following Common Stock ownership multiples: CEO, 3 times base salary;
        participants in the long-term incentive award program under the company's
        2003
        Stock Incentive Plan or its predecessor plan (currently 8 individuals), 2
        times
        their base salary; and all other elected officers of the company, 1 times
        their
        base salary. A total of sixteen individuals are currently subject to the
        guidelines. These individuals are required to take and retain one-third of
        any
        earned long-term incentive award in the form of stock and to retain any shares
        realized from the exercise of stock options or the vesting of restricted
        stock
        under the 2003 Stock Incentive Plan or its predecessor plan until such time
        as
        the required ownership guidelines are met. Stock options, including vested
        options, as well as restricted stock which remains subject to restrictions,
        are
        not included in determining whether an individual has achieved the ownership
        levels required by the guidelines. In determining whether the guidelines
        have
        been achieved at any particular point, the price of the Common Stock will
        be the
        higher of (i) the then current market value determined by the closing price
        of
        the Common Stock on the date of the determination; or (ii) the closing price
        on
        February 21, 2006, which was $21.13.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Tax
        Accounting and Tax/Estate Planning Services </em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, at the February 21, 2006 Board of Directors' meeting, the Board
        approved a recommendation of the Personnel and Compensation Committee (which
        was
        adopted at its meeting on the same date) to authorize the company's
        reimbursement of the following officers for tax accounting and tax/estate
        planning services: Paul R. Kuhn, the company's Chairman, CEO and President;
        Robert M. Garneau, the company's Executive Vice President and Chief Financial
        Officer; Candace A. Clark, the company's Senior Vice President and Chief
        Legal
        Officer; Ronald M. Galla, the company's Senior Vice President and Chief
        Information Officer; Russell H. Jones, the company's Senior Vice President
        and
        Chief Investment Officer; T. Jack Cahill, President of the company's Industrial
        Distribution segment; and Robert H. Saunders, Jr., President of the company's
        Music segment. Services eligible for reimbursement include tax return
        preparation, development of tax strategies and tax related aspects of estate
        and
        investment planning, preparation of wills or trust, and development of personal
        financial objectives and investment strategies. The total amount that can
        be
        reimbursed to the entire group for the calendar year is Seventy Thousand
        Dollars
        ($70,000) and generally not more than $10,000 may be provided to any particular
        individual in a calendar year. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Recapitalization
        Bonus Award for Candace A. Clark</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        February 21, 2006, the Board of Directors awarded a special bonus equal to
        $50,000 to Candace A. Clark in recognition of her extraordinary services
        over a
        three-year period in connection with the successful recapitalization of the
        company. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">6</font></div>
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        2.02
        Results of Operations and Financial Condition</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        February 27, 2006, the company issued a press release describing the company's
        financial results for the quarter and twelve month period ended December
        31,
        2005. A copy of this press release is furnished as Exhibit 99.1 hereto and
        is
        incorporated herein by reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
        9.01. Financial Statement and Exhibits.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following exhibits are furnished as part of this Form 8-K</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>No</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Description</u></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div align="center">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td valign="top" width="6%">&#160;<font size="2">10.1</font></td>
              <td width="94%">
                <div><font size="2">Executive Employment Agreement with Mr. Kuhn
                  dated as of
                  February 24, 2006.</font></div>
                <div>&#160;</div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="6%">&#160;<font size="2">10.2</font></td>
              <td width="94%">
                <div><font size="2">Sixth Amendment to Kaman Corporation Supplemental
                  Employees&#8217; Retirement Plan.</font></div>
                <div>&#160;</div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td valign="top" width="6%">&#160;<font size="2">99.1</font></td>
              <td width="94%"><font size="2">Press Release of the Company regarding
                financial performance for the quarter and twelve month period ended
                December 31, 2005, dated February 27,
                2006.</font></td>
            </tr>

        </table>
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        <div id="FTR">&#160;</div>
        <div>&#160;</div>
        <div>&#160;</div>
        <div>
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          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">7</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
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          </div>
        </div>
      </div><br><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the requirements of the Securities Exchange Act of 1934, the registrant
        has
        duly caused this report to be signed on its behalf by the undersigned hereunto
        duly authorized. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div><br>
        <div>
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              <tr>
                <td align="justify" valign="top" width="37%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="justify" valign="top" width="3%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="justify" valign="top" width="49%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
              </tr>
              <tr>
                <td align="justify" valign="top" width="37%" style="border-bottom: #ffffff solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;
                    February 27, 2006</font></div>
                </td>
                <td align="justify" valign="top" width="3%" style="border-bottom: #ffffff solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></div>
                </td>
                <td align="justify" valign="top" width="49%" style="border-bottom: black thin solid;">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
                    M. Garneau</font></div>
                </td>
              </tr>
              <tr>
                <td align="justify" colspan="2" valign="top" width="41%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="justify" valign="top" width="49%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
                    M. Garneau</font></div>
                </td>
              </tr>
              <tr>
                <td align="justify" colspan="2" valign="top" width="41%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="justify" valign="top" width="49%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
                    Vice President and</font></div>
                </td>
              </tr>
              <tr>
                <td align="justify" colspan="2" valign="top" width="41%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="justify" valign="top" width="49%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                    Financial Officer </font></div>
                </td>
              </tr>

          </table>
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Kaman Corporation Form 8-K dated February 27, 2006
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      DC 20549
FORM
      8-K
CURRENT
      REPORT PURSUANT
TO
      SECTION 13 OR 15(d) OF THE
SECURITIES
      EXCHANGE ACT OF 1934
Date
      of
      report (Date of earliest event reported): February 27, 2006 (February 21,
      2006)
Kaman
      Corporation
(Exact
      Name of Registrant as Specified in Its Charter)
Connecticut
(State
      or
      Other Jurisdiction
of
      Incorporation)
0-1093
06-0613548
(Commission
                File Number)
(IRS
                Employer Identification No.)
1332
                Blue Hills Avenue, Bloomfield, Connecticut
06002
(Address
                of Principal Executive Offices)
(Zip
                Code)
(860)
      243-7100
(
Registrant's
      Telephone Number, Including Area Code)
Not
      Applicable
(Former
      Name or Former Address, if Changed Since Last Report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):
o
Written
                communications pursuant to Rule 425 under the Securities Act (17
                CFR
                230.425)
o
Soliciting
                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                240.14a-12)
o
Pre-commencement
                communications pursuant to Rule 14d-2(b) under the Exchange Act (17
                CFR
                240.14d-2(b))
o
Pre-commencement
                communications pursuant to Rule 13e-4(c) under the Exchange Act (17
                CFR
                240.13e-4(c))
1
Item
        1.01.
Entry
        into a Material Definitive Agreement.
Employment
        Arrangement with Paul R. Kuhn
At
        a
        meeting held on February 21, 2006, the Board of Directors (the "Board") of Kaman
        Corporation (the "Company"), upon recommendation of the Personnel and
        Compensation Committee of the Board, took the actions (a) with respect to
        employment terms for Mr. Paul R. Kuhn, the Company's Chairman, President and
        Chief Executive Officer, and (b) the Kaman Corporation Supplemental Employees'
Retirement Plan ("SERP"), which provides supplemental pension benefits to
        certain of the Company's senior management personnel, including its executive
        officers.
The
        Company has agreed to a new employment agreement (the "New Employment
        Agreement") with Mr. Kuhn who will attain age 65 in October 2006. Mr. Kuhn has
        been the Company's President and Chief Executive Officer since August 2, 1999.
        The New Employment Agreement replaces and supersedes the Company's Amended and
        Restated Employment Agreement with Mr. Kuhn, as amended most recently on
        February 17, 2004 (the "Prior Employment Agreement"), and the Company's Second
        Amended and Restated Change in Control Agreement with Mr. Kuhn dated November
        11, 2003 (the "Change in Control Agreement").
The
        terms
        of Mr. Kuhn's employment set forth in the New Employment Agreement are as
        follows:
(a)
The
        term
        of Mr. Kuhn's employment will extend until February 21, 2008 (the "Employment
        Term"). The Company may appoint a successor President and Chief Executive
        Officer to Mr. Kuhn during the Employment Term, in which case Mr. Kuhn's duties
        and responsibilities shall thereafter consist of assisting the Company and
        his
        successor in the senior management transition and serving as the Company's
        Chairman. Mr. Kuhn's compensation and benefits under the New Employment
        Agreement will not be affected by the appointment of a successor President
        and
        Chief Executive Officer.
(b)
The
        New
        Agreement entitles Mr. Kuhn to an annual base salary of $900,000 a year,
        and
        eligibility to receive an annual bonus for 2006 and 2007 (and eligibility
        for a
        pro-rated annual bonus in 2008) to be determined by the Corporation's Personnel
        and Compensation Committee, with a target bonus opportunity to be not less
        than
        80% of base salary.
(c)
The
        New
        Employment Agreement provides for Mr. Kuhn's participation in the Company's
        employee benefit programs generally applicable to the Company's senior
        executives. The Company will also continue to provide Mr. Kuhn with up to
        four
        weeks vacation, premium payments on a $1.2 million life
        insurance policy issued to Mr. Kuhn
and
        a
        company car as currently provided to him.
(d)
Mr.
        Kuhn
        shall be entitled to severance benefits from the Company only if (1) his
        employment is terminated without "cause" (as defined) or he resigns with "good
        reason" (as defined) during the Employment Term, and (2) he signs a release
        agreement reasonably acceptable to the Company. "Good reason" has been adjusted
        to reflect his duties and the compensation structure under the New Employment
        Agreement. Mr. Kuhn's reduced role after the Company elects a successor
        President and Chief Executive Officer and the reduction to his benefit rights
        under the SERP as described below shall not provide Mr. Kuhn good reason
        to
        terminate employment or otherwise result in a constructive employment
        termination that triggers severance benefits. The termination of Mr. Kuhn's
        employment with the Board's consent after the appointment of a successor as
        President and Chief Executive Officer shall be treated as employment termination
        without cause. Expiration of the Employment Term on February 21, 2008 shall
        not
        trigger any payment of severance benefits.
2
(e)
Mr.
        Kuhn's outstanding equity awards shall become fully vested upon (i) Mr. Kuhn's
"retirement" (as defined), (ii) the termination of his employment without cause,
        for "disability" (as defined), or due to death, (iii) his resignation for good
        reason or (iv) a "change in control" (as defined).
(f)
The
        lump
        sum severance payment that may have otherwise been payable to Mr. Kuhn as
        part
        of his severance protection under the Prior Employment Agreement or Prior
        Change
        in Control Agreement (collectively, the "Prior Agreements") is reduced under the
        New Employment Agreement. The Prior Change in Control Agreement provided
        a lump
        sum severance payment equal to three times Mr. Kuhn's then current base salary
        and the most recent annual bonus paid to him ("Annual Compensation"). The lump
        sum severance payment under the Prior Employment Agreement equaled two times
        Mr.
        Kuhn's Annual Compensation. The New Employment Agreement provides that the
        multiplier for the lump sum severance payment shall only reflect the period
        between Mr. Kuhn's employment termination date and February 21,
        2008.
(g)
Other
        severance benefits payable to Mr. Kuhn upon a termination of employment without
        cause or resignation for good reason are: (i) a pro-rata portion of his annual
        bonus for the performance year in which his termination occurs, (ii) pro-rata
        payment of each outstanding long-term performance award ("LTIP") based on
        100%
        of the target value, (iii) title to the Company automobile on an "as is" basis,
        with the automobile's fair market value being taxable to Mr. Kuhn; (iv)
        continued payment of the premiums on his $1.2 million life insurance policy
        during the remainder of his life;
(v)
        continued participation at the Company's expense for 18 months in all medical,
        dental and vision plans which cover Mr. Kuhn and his eligible dependents,
        subject to offset due to future employment; (vi) pro-rata vesting of LTIP
        awards; and (vii) all accrued and vested benefits under the Company's
        compensation and benefit plans, programs and arrangements (collectively,
        "Accrued Benefits").
(h)
A
        tax
        gross-up for excise taxes under Section 4999 of the Internal Revenue Code
        (and
        income taxes on the gross-up) that become payable by Mr. Kuhn will be paid
        only
        if payments (including vesting of outstanding equity compensation awards)
        contingent on a change in ownership or control of the Company exceed the
        maximum
        amount (as determined under applicable tax rules) that Mr. Kuhn could receive
        without having any such payments become subject to such tax by at least
        $100,000.
(i)
If
        Mr.
        Kuhn is discharged with cause or if he resigns without good reason, he will
        receive his unpaid base salary and earned bonus through the date of termination
        and the Accrued Benefits.
3
(j)
If
        Mr.
        Kuhn's employment is terminated due to his death or disability, Mr. Kuhn or his
        estate, as applicable, will receive Mr. Kuhn's unpaid base salary and earned
        bonus through the date of termination, the Accrued Benefits and a pro-rata
        portion of Mr. Kuhn's annual bonus for the performance year in which his death
        or disability occurred.
(k)
        If
        Mr. Kuhn retires, he will receive (i) a pro-rata portion of his annual bonus
        for
        the year of retirement, (ii) pro-rata vesting of LTIP awards, (iii) continued
        payment of the premiums on his $1.2 million life insurance policy during
        the remainder of his life, (iv) title to the company automobile on an "as
        is"
        basis, with the automobile's fair market value being taxable to Mr. Kuhn,
        and
        (v) the Accrued Benefits.
(l)
        Mr.
        Kuhn has agreed not to compete with the Company and not to solicit its employees
        during the 2-year period following termination of employment for any
        reason.
(m)
Following
        termination of employment for any reason, Mr. Kuhn will assist and cooperate
        with the Company regarding any matter or project in which he was involved
        during
        the Executive's employment. The Company shall compensate Mr. Kuhn for any lost
        wages or expenses associated with such cooperation and assistance.
(n)
Mr.
        Kuhn
        acknowledges and agrees that the Prior Agreements are terminated and cancelled,
        and releases and discharges the Company from any and all obligations and
        liabilities now existing under or by virtue of the Prior
        Agreements.
(o)
The
        parties have agreed in good faith to amend the New Employment Agreement as
        may be required to comply with final regulations issued by the Treasury
        Department under Section 409A of the Internal Revenue Code without materially
        impacting the economic cost to the Company or economic value to Mr.
        Kuhn.
A
        copy of
        the New Employment Agreement dated as of February 24, 2006 and signed by
        Mr. Kuhn is filed as Exhibit 10.1 hereto and incorporated herein by
        reference.
Sixth
        Amendment to SERP
At
        its
        meeting on February 21, 2006, the Board also approved the Sixth Amendment
        to the
        SERP. The material changes to the SERP as reflected under the Sixth Amendment
        and effective on January 1, 2006 are as follows:
(a)
Only
        salary and annual bonus payable before the date of the Participant's employment
        termination with respect to periods of active employment shall be eligible
        compensation under the SERP for all periods after December 31,
        2005.
(b)
Severance
        and equity compensation under any plan, program, arrangement or agreement
        of the
        Company or its affiliates that becomes taxable after December 31, 2005 shall
        be
        disregarded when determining a participant's benefits under the
        SERP.
4
(c)
The
        Sixth
        Amendment clarifies and modifies the terms of the Second Amendment to the
        SERP
        dated September 2, 1999, which provides for three years of credited service
        for
        each completed year of employment beginning on or after January 1, 2004.
        Mr.
        Kuhn shall continue to accrue credited service under the Second Amendment
        for
        2006 and 2007 provided that he remains employed as of the end of such year.
        Mr.
        Kuhn shall not earn any credited service based on employment after 2007.
        Mr.
        Kuhn shall receive credited service as if he remained employed with the Company
        through December 31, 2007 if his employment terminates before then in a manner
        that entitles him to severance benefits under the New Employment
        Agreement.
(d)
The
        maximum lump sum payment (or its actuarial equivalent if payment is made
        in a
        form other than a single lump sum payment) to Mr. Kuhn shall be (1) $8.912
        million if Mr. Kuhn does not remain employed by the Company on December 31,
        2006; (2) $10.5 million if Mr. Kuhn does not remain employed by the Company
        on
        December 31, 2007; and (3) $12 million if Mr. Kuhn remains employed on or
        after
        December 31, 2007. The maximum benefit that Mr. Kuhn may receive from the
        SERP
        shall be increased to $12,000,000 if his employment terminates prior to December
        31, 2007 in a manner that entitles him to severance benefits under the New
        Employment Agreement.
An
        executed copy of the Sixth Amendment is filed as Exhibit 10.2 hereto
        and incorporated herein by reference.
Stock
        Ownership Guidelines for Non-employee Directors and Management; Change to
        Director Compensation Structure
At
        its
        meeting on February 21, 2006, the Board of Directors also approved stock
        ownership guidelines both for non-employee Directors and for corporate
        management, effective immediately. The Board believes that the Directors
        and
        senior management should have a significant equity position in the company
        and
        that these guidelines will serve to further the Board's interest in encouraging
        a longer-term focus in managing the company.
The
        stock
        ownership guidelines that were adopted by the Board of Directors for
        non-employee Directors were recommended to the Board by the Corporate Governance
        Committee pursuant to a meeting held on February 21, 2006. The guidelines
        require each non-employee Director to have an ownership multiple of 3 times
        the
        annual cash retainer, which for the period 2006 and 2007 is $45,000. In
        addition, it was determined that the restricted stock awards of 2,000 shares
        of
        Common Stock that will be granted to the non-employee Directors as part of
        the
        director compensation package approved to take effect January 1, 2006 (and
        reported by Form 8-K dated November 10, 2005,
ref.
        no.0000054381-05-000088
) will have restrictions immediately lapse and
        Directors who do not meet the ownership guidelines must hold shares received
        pursuant to such grants (with such shares being netted for the income tax
        effect
        thereof) for a period of 3 years or until the guidelines are met, whichever
        is
        earlier. In determining whether the guidelines have been achieved at any
        particular point, the price of the Common Stock will be the higher of (i)
        the
        then current market value determined by the closing price of the Common Stock
        on
        the date of the determination; or (ii) the closing price on February 21,
        2006,
        which was $21.13.
5
The
        stock
        ownership guidelines that were adopted by the Board of Directors for management
        were recommended to the Board by the Personnel and Compensation Committee
        pursuant to a meeting held on February 21, 2006. The guidelines require the
        following Common Stock ownership multiples: CEO, 3 times base salary;
        participants in the long-term incentive award program under the company's
        2003
        Stock Incentive Plan or its predecessor plan (currently 8 individuals), 2
        times
        their base salary; and all other elected officers of the company, 1 times
        their
        base salary. A total of sixteen individuals are currently subject to the
        guidelines. These individuals are required to take and retain one-third of
        any
        earned long-term incentive award in the form of stock and to retain any shares
        realized from the exercise of stock options or the vesting of restricted
        stock
        under the 2003 Stock Incentive Plan or its predecessor plan until such time
        as
        the required ownership guidelines are met. Stock options, including vested
        options, as well as restricted stock which remains subject to restrictions,
        are
        not included in determining whether an individual has achieved the ownership
        levels required by the guidelines. In determining whether the guidelines
        have
        been achieved at any particular point, the price of the Common Stock will
        be the
        higher of (i) the then current market value determined by the closing price
        of
        the Common Stock on the date of the determination; or (ii) the closing price
        on
        February 21, 2006, which was $21.13.
Tax
        Accounting and Tax/Estate Planning Services
In
        addition, at the February 21, 2006 Board of Directors' meeting, the Board
        approved a recommendation of the Personnel and Compensation Committee (which
        was
        adopted at its meeting on the same date) to authorize the company's
        reimbursement of the following officers for tax accounting and tax/estate
        planning services: Paul R. Kuhn, the company's Chairman, CEO and President;
        Robert M. Garneau, the company's Executive Vice President and Chief Financial
        Officer; Candace A. Clark, the company's Senior Vice President and Chief
        Legal
        Officer; Ronald M. Galla, the company's Senior Vice President and Chief
        Information Officer; Russell H. Jones, the company's Senior Vice President
        and
        Chief Investment Officer; T. Jack Cahill, President of the company's Industrial
        Distribution segment; and Robert H. Saunders, Jr., President of the company's
        Music segment. Services eligible for reimbursement include tax return
        preparation, development of tax strategies and tax related aspects of estate
        and
        investment planning, preparation of wills or trust, and development of personal
        financial objectives and investment strategies. The total amount that can
        be
        reimbursed to the entire group for the calendar year is Seventy Thousand
        Dollars
        ($70,000) and generally not more than $10,000 may be provided to any particular
        individual in a calendar year.
Recapitalization
        Bonus Award for Candace A. Clark
On
        February 21, 2006, the Board of Directors awarded a special bonus equal to
        $50,000 to Candace A. Clark in recognition of her extraordinary services
        over a
        three-year period in connection with the successful recapitalization of the
        company.
6
Item
        2.02
        Results of Operations and Financial Condition
On
        February 27, 2006, the company issued a press release describing the company's
        financial results for the quarter and twelve month period ended December
        31,
        2005. A copy of this press release is furnished as Exhibit 99.1 hereto and
        is
        incorporated herein by reference.
Item
        9.01. Financial Statement and Exhibits.
The
        following exhibits are furnished as part of this Form 8-K
No
.
Description
10.1
Executive Employment Agreement with Mr. Kuhn
                  dated as of
                  February 24, 2006.
10.2
Sixth Amendment to Kaman Corporation Supplemental
                  Employees' Retirement Plan.
99.1
Press Release of the Company regarding
                financial performance for the quarter and twelve month period ended
                December 31, 2005, dated February 27,
                2006.
7
SIGNATURES
Pursuant
        to the requirements of the Securities Exchange Act of 1934, the registrant
        has
        duly caused this report to be signed on its behalf by the undersigned hereunto
        duly authorized.
Date: 
                    February 27, 2006
By:
/s/
Robert
                    M. Garneau
Robert
                    M. Garneau
Executive
                    Vice President and
Chief
                    Financial Officer
8