LONG-TERM PERFORMANCE AWARD
AGREEMENT
(Under the Kaman
Corporation
2003 Stock Incentive
Plan)
THIS AGREEMENT, made and entered into as of the
________ day of_____________, 20___, by and between KAMAN
CORPORATION, a Connecticut corporation, with its principal office
in Bloomfield, Connecticut (the "Corporation"), and
________________________ ("Participant");
W I T N E S S E T H :
WHEREAS, it has been determined that the
Participant is an Eligible Person under the Corporation’s
2003 Stock Incentive Plan (the “Plan”) and
[WHEREAS, the
Participant has been designated as a Covered Employee under the
Plan; and]
WHEREAS, the
Committee wishes to grant to the Participant a Long-Term
Performance Award, as hereinafter described (the “Long-Term
Performance Award”); [and]
[WHEREAS, the
Committee intends the Long-Term Performance Award to be a Qualified
Performance-Based Award meeting the criteria of the Section 162(m)
Exemption including Qualified Performance Criteria, as those terms
are defined in the Plan;]
NOW, THEREFORE, in consideration of the
premises, and of the mutual covenants and agreements contained in
this Agreement, the parties confirm and agree as
follows:
1.
Long-Term Incentive
Award .
(a) Subject to the terms and conditions of this
Agreement, the Participant is awarded a Long-Term Performance Award
which shall entitle the Participant to a payment based upon the
performance criteria, Performance Period, payment computation
formula and other factors set forth in Exhibit A to this
Agreement which is incorporated by reference. The Long-Term
Performance Award is subject to forfeiture as more particularly
described in Section 2 of this Agreement.
(b)
In order for the Participant to be
eligible to receive the payment which the Participant may otherwise
earn pursuant to the Long-Term Performance Award, the Participant
must execute and deliver a copy of this Agreement to the President
of the Corporation at its offices in Bloomfield, Connecticut within
sixty (60) days of the date on which the Participant has received
this Agreement. The Participant must execute both the signature
page of this Agreement and a copy of Exhibit A to this Agreement.
In the event that this Agreement is executed by the Corporation and
the Participant prior to the completion of Exhibit A , the
Corporation shall complete Exhibit A within a reasonable time. The
Participant shall not be entitled to any payment under this
Agreement except in accordance with the performance criteria and
other factors with respect to such payment as shall have been set
forth on a copy of Exhibit A that shall have been executed
by both the Corporation and the Participant and attached to this
Agreement.
(c)
Notwithstanding the acceptance of
Exhibit A by the Corporation and the Participant, as evidenced by
their execution and attachment hereto of a copy thereof, the
performance factors applicable to the Long-Term Performance Award
may be adjusted as the Committee deems necessary or appropriate in
the manner permitted by and subject to the Plan.
2.
Termination and
Forfeiture .
(a)
If a Participant terminates his or
her employment or his or her consultancy during the Performance
Period related to the Long-Term Performance Award because of death
or Disability, the Committee may in its discretion provide for an
earlier payment and settlement of the Long-Term Performance Award,
which payment may be in such amount and under such terms and
conditions as the Committee deems appropriate.
(b)
If a Participant terminates his or
her employment or his or her consultancy during a Performance
Period because of Retirement, then such Participant shall continue
to be entitled to a prorata portion of any payment with respect to
the Long-Term Performance Award subject to such Performance Period
in accordance with the payment terms set forth in subsection (e) of
Section 9 of the Plan, determined by multiplying such payment,
calculated as if the Participant's employment or consultancy had
not been terminated, by a fraction the numerator of which is the
number of days from the beginning of the Performance Period to the
date of such termination and the denominator of which is the total
number of days during the Performance Period.
(c)
If a Participant terminates
employment or his or her consultancy during a Performance Period
for any reason other than death, Disability or Retirement, then
such a Participant shall not be entitled to any payment with
respect to the Long-Term Performance Award subject to such
Performance Period, unless the Committee shall otherwise determine
in its discretion.
3.
Payment . The earned portion of the Long-Term
Performance Award shall be paid in cash within two hundred seventy
(270) days following the close of the applicable Performance
Period, provided that the Committee may elect to pay up to
one-third (1/3) of such amount in whole shares of Stock or, at the
discretion of the Committee, such earned portion may be paid in
whole shares of Stock to the extent requested by the Participant.
Any such shares of Stock shall be valued at their Fair Market Value
at the close of business on the most recent trading day preceding
the date of such payment.
4.
No Employment Rights
. No provision of this Agreement
shall:
(a)
confer or be deemed to confer upon
the Participant any right to continue in the employ of the
Corporation or any Subsidiary or shall in any way affect the right
of the Corporation or any Subsidiary to dismiss or otherwise
terminate the Participant’s employment at any time for any
reason with or without case, or
(b)
be construed to impose upon the
Corporation or any Subsidiary any liability for any forfeiture of
the Long-Term Performance Award which may result under this
Agreement if the Participant’s employment is so terminated,
or
(c)
affect the Corporation’s right
to terminate or modify any contractual relationship with the
Participant if the Participant is not an employee of the
Corporation or a Subsidiary;
5.
No Liability for Business Acts or
Omissions . The
Participant recognizes and agrees that the Board or the officers,
agents or employees of the Corporation in their conduct of the
business and affairs of the Corporation, may cause the Corporation
to act, or to omit to act, in a manner that may, directly or
indirectly, affect the amount of or the ability of the Participant
to earn the Long-Term Performance Award under this Agreement. No
provision of this Agreement shall be interpreted or construed to
impose any liability upon the Corporation, the Board or any
officer, agent or employee of the Corporation for any effect on
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