Document:

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                                        AMENDED AND RESTATED DECEMBER 22,  1999
                                                      EFFECTIVE JANUARY 1, 2000

                 SUPPLEMENTAL RETIREMENT AND ACCOUNT VALUE PLAN
                   FOR SALARIED EMPLOYEES OF THE STANLEY WORKS

         BACKGROUND. A. The Stanley Works (together with its wholly-owned U.S.
subsidiaries, "Stanley") maintains certain retirement plans for its salaried
employees that are designed to meet the requirements of Section 401(a) of the
Internal Revenue Code (the "Code").

         B. The benefits and contributions that may be provided under such
retirement plans are limited on account of Sections 401 and 415 of the Code and
certain other provisions of the Code.

         C. Stanley maintains the Supplemental Retirement and Savings Plan for
Salaried Employees of The Stanley Works (the "Supplemental Plan") to provide
certain employees with benefits that may not be provided under these retirement
plans.

         D. Stanley now desires to restate the Supplemental Plan as the
Supplemental Retirement and Account Value Plan for Salaried Employees of The
Stanley Works (which shall continue to be known as the "Supplemental Plan").

                         TERMS OF THE SUPPLEMENTAL PLAN
                         ------------------------------

         1. EFFECTIVE DATE. This amendment and restatement shall be effective as
of January 1, 2000.

         2. DEFINITIONS. The following terms have the meanings set forth below.

         "ACCOUNT VALUE PLAN" means the Stanley Account Value Plan.

         "APPLICABLE LIMITATION" means each of:

         (a) the limitation under Sections 401(a)(30) and 402(g)(1) of the Code
on the amount of pre-tax elective contributions that may be made by an employee
under the Account Value Plan;

         (b) the limitation in Section 401(a)(17) of the Code on the amount of
compensation of an employee that may be taken into account under the Retirement
Plan or Account Value Plan;

         (c) the limitation under the Account Value Plan on the amount of an
employee's pre-tax elective contributions or Stanley matching contributions
imposed under the nondiscrimination rules of Section 401 of the Code;

         (d) the exclusion of earnings deferred at the election of an employee
pursuant to the Deferred Compensation Plan for Participants in Stanley's
Management Incentive Plans from the "Compensation" utilized under the Retirement
Plan or for "Cornerstone Account" allocations under

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the Account Value Plan; and

         (e) the limitations in Section 415 of the Code on the maximum
contributions that may be made under the Account Value Plan and the maximum
benefits that may be provided under the Retirement Plan.

         "COMMITTEE" means the Finance and Pension Committee of the Board of
Directors of The Stanley Works.

         "401(K) DOLLAR LIMITS" means the dollar limitation described in
paragraph (a) of the definition of Applicable Limitation.

         "HIGHLY COMPENSATED EMPLOYEE" means:

         (a) except as provided in (b), a salaried employee of Stanley who
during the applicable Plan Year is a highly compensated employee, as defined in
Section 414(q) of the Code (i.e., W-2 income, including elective contributions
to health and dental plans, to flexible spending plans, and to the Account Value
Plan, exceeding the indexed amount for the preceding Plan Year [e.g., earnings
during 1999 exceeding $80,000 results in Highly Compensated Employee status for
the 2000 Plan Year]).

         (b) An individual who is not a highly compensated employee, as defined
in Section 414(q) of the Code, for the Plan Year in which he or she first
becomes a salaried employee of Stanley or for the subsequent Plan Year but whose
basic annual rate of compensation from Stanley during the applicable Plan Year
is at least $100,000 shall be a Highly Compensated Employee for the applicable
Plan Year.

         "PLAN YEAR" means the plan year of a Qualified Plan.

         "QUALIFIED PLAN" means each of the Account Value Plan and the
Retirement Plan.

         "RETIREMENT PLAN" means The Stanley Works Retirement Plan.

         "SUPPLEMENTAL COMPANY CONTRIBUTION ACCOUNT" means the bookkeeping
record that reflects amounts credited under Section 4.2.

         "SUPPLEMENTAL EMPLOYEE CONTRIBUTION ACCOUNT" means the bookkeeping
record that reflects amounts credited under Section 4.1.

         "UNRESTRICTED QUALIFIED PLAN BENEFIT" means the benefit amount that
would be payable to an individual under the Retirement Plan but for an
Applicable Limitation.

         3. PARTICIPATION IN THE SUPPLEMENTAL PLAN. 3.1. PARTICIPATION. Each
Highly Compensated Employee shall become a participant in the Supplemental Plan
on the date as of which an amount

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is first credited on his or her behalf under Section 4.

         3.2. REMAINING A PARTICIPANT. Subject to Section 7, a Highly
Compensated Employee shall remain a participant until all amounts to which he or
she is entitled have been distributed.

         4. CREDITING OF BENEFITS; ELECTIONS TO DEFER. 4.1. SUPPLEMENTAL
EMPLOYEE CONTRIBUTIONS. (a) EMPLOYEE CONTRIBUTIONS EXCEEDING 401(K) DOLLAR
LIMITS. If a Highly Compensated Employee's pre-tax elective contributions under
the Account Value Plan for a Plan Year are limited by the 401(k) Dollar Limits,
the Highly Compensated Employee may elect to defer a portion of compensation.
The amount deferred for a Plan Year under this Section 4.1(a), when added to the
pre-tax elective contributions for the Plan Year under the Account Value Plan,
shall not exceed 15% of compensation.

         (b) EMPLOYEE CONTRIBUTIONS EXCEEDING OTHER LIMITS. If a Highly
Compensated Employee may not make pre-tax elective contributions under the
Account Value Plan for a Plan Year as a result of an Applicable Limitation
(other than as described in Section 4.1(a)), the Highly Compensated Employee may
elect to defer a portion of compensation, up to the amount of such pre-tax
elective contributions that could not be made.

         (c) CREDITING OF EMPLOYEE CONTRIBUTIONS. Any amount deferred under this
Section 4.1 shall be credited to a Supplemental Employee Contribution Account.

         4.2. SUPPLEMENTAL COMPANY CONTRIBUTIONS. (a) MATCHING CONTRIBUTIONS FOR
EMPLOYEE CONTRIBUTIONS EXCEEDING DOLLAR LIMITS. If an amount is credited to a
Supplemental Employee Contribution Account under Section 4.1, there shall also
be an amount credited to a Supplemental Company Contribution Account. This
amount shall equal the contribution that would have been made by Stanley under
the Account Value Plan with respect to the amount credited under Section 4.1 if
such amount had been contributed to the Account Value Plan.

         (b) STANLEY CONTRIBUTIONS AFFECTED BY OTHER LIMITS. If a Stanley
contribution could not be made under the Account Value Plan as a result of an
Applicable Limitation (other than as described in Section 4.2(a)), an amount
equal to such Stanley contribution that could not be made shall be credited to a
Supplemental Company Contribution Account.

         4.3. SUPPLEMENTAL RETIREMENT PLAN BENEFITS. If a Highly Compensated
Employee's Unrestricted Qualified Plan Benefit exceeds the benefit payable under
the Retirement Plan, the excess amount, to the extent vested under Section 5.1,
shall be provided under this Supplemental Plan.

         4.4. CREDITING OF EARNINGS. A participant's Supplemental Employee
Contribution Account and Supplemental Company Contribution Account shall be
credited with the rate of return such accounts would have earned if they had
been invested under the Account Value Plan. In addition, these accounts shall be
credited with any additional amount that would have been payable under the
Retirement Plan to reflect IPA benefits. For purposes of crediting the rate of
return, an amount shall

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be considered to be credited under Section 4.1 or 4.2 on the date on which it
would have been allocated under the Account Value Plan but for an Applicable
Limitation.

         4.5. PROCEDURES FOR ELECTING EMPLOYEE CONTRIBUTIONS. An election to
defer compensation under Section 4.1 shall be made, and may be revoked, under
rules established by the Committee. Any election to defer compensation shall be
effective only as to compensation earned after the date of the election.

         5. VESTING SCHEDULE. A participant's vested interest in a benefit
provided under this Plan shall be determined in accordance with the vesting
provisions of the particular Qualified Plan with respect to which the benefit is
determined.

         6. DISTRIBUTIONS. 6.1. TIME FOR PAYING BENEFITS. Amounts credited to a
participant's Supplemental Employee Contribution Account or Supplemental Company
Contribution Account shall be distributed upon retirement, death, disability or
earlier separation from service with Stanley unless either the rules of Section
7.3 apply or the participant elects to have payments made on a later date
specified in an election made under Section 6.3. Amounts payable under Section
4.3 (relating to Supplemental Retirement Plan Benefits) shall be distributed
when benefit payments commence under the Retirement Plan.

         6.2. FORM OF PAYMENT. Benefits attributable to an individual's
Supplemental Employee Contribution Account and Supplemental Company Contribution
Account shall be distributed in a lump sum. To the extent that the amount
credited to such accounts is deemed to be invested in shares of Stanley stock
pursuant to Section 4.4 at the time of distribution, the lump sum shall consist
of shares of Stanley stock. Any remaining portion of such lump sum shall be paid
in cash. The benefit determined under Section 4.3 (relating to Supplemental
Retirement Plan Benefits) shall be paid in a life annuity unless the participant
elects a lump sum payment under Section 6.3.

         6.3. ELECTIONS BY PARTICIPANTS. An election to receive a lump sum
payment of the benefit payable under Section 4.3 (relating to Supplemental
Retirement Plan Benefits) or to defer distributions of the Supplemental Employee
Contribution and Supplemental Company Contribution Accounts may be made by a
participant in writing prior to the beginning of the one year period that ends
on the date on which the participant dies, becomes disabled, or otherwise
separates from service. An election may be made after the beginning of such one
year period only with the approval of the Committee.

         6.4. ADJUSTMENTS TO DISTRIBUTIONS. Upon determining that a participant
is indebted to Stanley, the Committee shall be entitled to offset such
indebtedness, including any interest accruing thereon, against any payment that
would otherwise be made on behalf of the participant.

         6.5. DEATH BENEFICIARY. Upon a participant's death, any benefit payment
shall be made to the beneficiary determined under the Qualified Plan to which
the benefit relates unless the participant designated in writing a different
beneficiary to receive such benefit. The benefit shall be paid in the manner
provided in Section 6.2.

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         6.6. WITHHOLDING. To the extent required by law, Stanley shall withhold
taxes from any payment due under the Plan.

         7. INELIGIBILITY FOR COVERAGE. 7.1. BECOMING INELIGIBLE. Amounts shall
not be credited under Section 4.1 or 4.2 upon either (a) a participant ceasing
to be a Highly Compensated Employee or (b) the Committee, in its sole
discretion, determining that a Highly Compensated Employee may no longer
actively participate in the Plan.

         7.2. RESUMING PARTICIPATION. An individual described in Section 7.1(a)
shall resume active participation in the Supplemental Plan upon again becoming a
Highly Compensated Employee. An individual described in Section 7.1(b) may again
become an active participant at the discretion of the Committee. Once an
individual resumes participation in the Supplemental Plan, amounts shall again
be credited under Section 4.1 upon the filing of an election pursuant to Section
4.5, and amounts may also be credited under Section 4.2.

         7.3. DISTRIBUTIONS TO INELIGIBLE INDIVIDUALS. An amount credited under
Section 4 on behalf of an individual for a Plan Year in which such individual
was not a Highly Compensated Employee shall be distributed in a lump sum
payment, in the manner described in Section 6.2, upon the earliest of the
following: (a) death, (b) disability, (c) other separation from service with
Stanley, or (d) the first day of the calendar year in which the individual
attains age 60. No additional amount shall be credited to an account established
in the name of an individual described in this subsection unless such individual
becomes a Highly Compensated Employee. If the individual becomes a Highly
Compensated Employee, amounts credited to an account established in the name of
the individual while a Highly Compensated Employee shall be distributed in
accordance with Section 6, and other amounts shall be distributed in the manner
described above in this subsection.

         8. MISCELLANEOUS. 8.1. AMENDMENT OR TERMINATION. The Committee may at
any time amend or terminate the Supplemental Plan without the consent of any
participant or beneficiary.

         8.2. ADMINISTRATION OF THE SUPPLEMENTAL PLAN. The Supplemental Plan
shall be administered by the Committee. The Committee shall have the
discretionary authority to interpret the Supplemental Plan and to make all
determinations regarding eligibility for coverage and the benefits to be paid.
Any denial by the Committee of a claim for benefits under the Supplemental Plan
shall be stated in writing by the Committee and delivered or mailed to the
appropriate individual. Such notice shall set forth the specific reasons for the
denial. The Committee shall afford to any participant or beneficiary whose claim
for benefits has been denied a reasonable opportunity for a review of the denial
of the claim.

         8.3. GOVERNING TEXT. The Supplemental Plan, including any amendments,
shall constitute the entire agreement between Stanley and any employee,
participant or beneficiary regarding the subject matter of the Supplemental
Plan. The Supplemental Plan, including any amendments, shall be binding on
Stanley, employees, participants, beneficiaries, and their respective heirs,
administrators, trustees, successors and assigns.

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         8.4. ENFORCEABILITY OF PLAN PROVISIONS. If any provision of the
Supplemental Plan shall, to any extent, be invalid or unenforceable, the
remainder of the Supplemental Plan shall not be affected, and each other
provision of the Supplemental Plan shall be valid and enforced to the fullest
extent permitted by law.

         8.5. RIGHTS OF PARTICIPANT. Any person entitled to receive benefits
under the Supplemental Plan shall have the rights of an unsecured general
creditor of Stanley.

         8.6. CLAIMS OF CREDITORS. The right of any participant or beneficiary
to a benefit under the Supplemental Plan shall not be subject to attachment or
other legal process for the debts of such participant or beneficiary. Except as
provided in Section 6.4, a benefit of a participant or beneficiary shall not be
subject to anticipation, alienation, sale, transfer, assignment or encumbrance.

         8.7. SPECIAL DISTRIBUTIONS. Whenever, in the opinion of the Committee,
a person entitled to receive a benefit under the Plan is unable to manage his or
her financial affairs, the Committee may direct that payment be made to a legal
representative or relative of such person for his or her benefit. Alternatively,
the Committee may direct that any payment be applied for the benefit of such
person in such manner as the Committee considers advisable. Any payment made in
accordance with this Section shall be a complete discharge of any liability for
the making of such payment under the provisions of the Supplemental Plan.

         8.8. TERMS OF EMPLOYMENT. Participation in the Supplemental Plan shall
not give an individual any right to remain in the service of Stanley, and an
individual shall remain subject to discharge to the same extent as if the
Supplemental Plan had not been adopted.<PAGE>

                                                               December 1, 1999

John Turner
10 Jordan Lane
Farmington, CT 06085

         RE:      AGREEMENT AND GENERAL RELEASE
         --------------------------------------

Dear John:

         The Stanley Works and its subsidiaries and their respective employees,
officers, directors and agents (collectively, "Stanley"), and you, agree that:

         1. Your last day of employment with Stanley was September 30, 1999
("last day worked").

         2. Stanley agrees to pay and/or provide you with the following,
provided Stanley receives the letter from you in the form attached hereto as
Exhibits A and B.

                  a. Stanley will pay you the monthly amount of Eighteen
Thousand Seven Hundred Fifty dollars ($18,750.00), (hereafter "base salary"),
less lawful deductions, paid from October 1, 1999, through April 30, 2000, on
the regular payday beginning in October 1999, and ending in April 2000. In the
event you have not secured employment or become self-employed by May 1, 2000, or
earn less than the base salary in any of the six months subsequent to May 1,
2000, Stanley shall continue to pay you if you so request as severance the
difference between your base salary and your monthly earned income for each
month from May 1, 2000, through October 31, 2000. For any months after May 1,
2000, in which you are employed by another, your monthly income shall be defined
as your gross income. If you are self-employed, your monthly income shall be
defined as your earnings as determined on a cash-flow basis minus your expenses
(but not including expenses for tax withholding, tax payments, or health
insurance). To qualify for any such period(s) of extended severance, you must,
by the tenth calendar day of any month in which you seek to extend your
severance, notify the Manager, Employee Relations, or his designee, in writing
at 76 Batterson Park Road, Farmington, CT 06032, indicating the amount of your
income for the immediately preceding month. If you are employed by another, you
shall attach a copy of your pay stub to any claim for severance. If you are self
employed, you shall make available to Stanley within three working days of
receipt of your statement, a copy of a profit and loss statement for the month
supporting the claimed severance payment. Stanley shall keep all information
contained in such Profit and Loss statement confidential following the
provisions of Section 12 of this Agreement. Stanley shall make any severance
payments due covering the period of May 1, 2000, through October 31, 2000, on
the regular payday applicable to salaried employees. These payments include all
entitlements you may have under any Stanley policy, including those covering
payment of vacation and or severance pay.

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                  b. You will continue to participate in The Stanley Works
qualified and supplemental Retirement Plans, and the Stanley Account Value Plan
in which you are currently participating, through your last day worked, in
accordance with the terms of the plans, subject to any amendments that are made
to the plans including termination of the plans, or replacement of the plans
with another plan.

                  c. You will continue to receive your current level of
voluntary and dependent life insurance, and accidental death and dismemberment
coverage through the end of the month in which the payments outlined in section
2(a) are made, provided you continue to make the required contributions. You
will then be eligible to convert your voluntary and dependent life insurance
coverage on the same terms commonly provided terminating employees.

                  d. You will remain a participant in the Executive Life
Insurance Plan through March 31, 2000. The Executive Life Insurance Plan
underwriter requires full payment for the coverage year in advance. With regard
to, and limited only to, the period of April 1, 2000, through March 31, 2001, if
you wish to continue your coverage under this Plan during this period and have
Stanley subsidize the cost of your doing so, you must pay that portion (5/12th)
of the premium that is attributable to the time frame outside your possible
severance eligibility as identified in this Agreement (November 1, 2000 - March
31, 2001). As the relevant annual premium for you to continue under this Plan is
expected to be $8,000, you must submit payment to Stanley's Vice President,
Human Resources, in the amount of $3,334.00 no later than March 1, 2000. If you
fail to make this payment by March 1, 2000, Stanley will not contribute further
towards your continued coverage under this policy beyond March 31, 2000.

                  e. You will continue to receive medical and dental coverage
through the end of the month in which the payments outlined in section 2(a) are
made, provided you continue to make the required contributions. You will then
have the same COBRA rights commonly provided terminating employees.

                  f. Your short term and long term disability coverage will
cease on your last day worked.

                  g. You will be a participant in the Management Incentive
Compensation Plan ("MICP") through your last day worked, and will receive a
payment of $125,000 under the 1999 MICP, payable in February, 2000.

                  h. You will be a participant in the Stock Option Plan ("SOP")
through your last day worked, and will have until May 28, 2000, to exercise your
NQSO shares, under the terms of the Plan.

                  i. You will be immediately vested in the 4,000 restricted
stock units granted under the Long-Term Incentive Plan.

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                  j. You will be a participant in the Long Term Performance
Award Plan at the senior level through your last day worked, and will receive a
payment of $116,000 under such plan, payable in February, 2000.

                  k. You may purchase your company provided automobile by your
last day worked at the price of Forty-Seven Thousand Five Hundred Dollars
($47,500.00), or you may instead return such automobile to Stanley within ten
(10) days after full execution of this Agreement.

                  l. Stanley will provide you with outplacement assistance
through Lee Hecht Harrison for a period of up to twelve months from your last
day worked. In lieu of outplacement services, Stanley shall, at your discretion,
pay you the amount of ten thousand dollars ($10,000.00), less lawful deductions,
provided you notify Stanley of your decision no later than December 1, 1999.
Stanley shall issue such payment to you within 30 days of the date you notify
Stanley of your decision.

                  m. Stanley shall provide Mr. Turner with the same level of
assistance in completing his 1999 federal income tax return as he would have
received as an active employee.

                  n. Stanley will not contest your receipt of unemployment
compensation benefits.

         3. You understand and agree that you would not receive all of the money
and benefits specified in sections 2(a) through (n) above except for your
execution of this Agreement and your fulfillment of the promises contained
herein.

         4. You understand that you may revoke this Agreement for a period of
seven business days following the day you execute it and that this Agreement
will not become effective or enforceable until such revocation period has
expired. Any revocation within this period must be submitted, in writing, to the
Corporate Manager, Employee Relations, The Stanley Works, 76 Batterson Park
Road, Farmington, CT 06032, and state, "I hereby revoke my acceptance of our
Agreement." Such revocation must be personally delivered, or mailed by certified
mail, within seven business days of execution of this Agreement to the Corporate
Manager, Employee Relations.

         5. Except with respect to a claim for any compensation or benefits
under the plans and programs in which you participate by virtue of your
employment and except with regard to this Agreement, you hereby release and
discharge Stanley of and from any and all debts, obligations, claims, demands,
judgments or causes of action of any kind whatsoever, known or unknown, in tort,
contract, by statute or on any other basis, for equitable relief, compensatory,
punitive or other damages, expenses (including attorneys' fees), reimbursements
of costs of any kind, including but not limited to, any and all claims, demands,
rights and/or causes of action, including those which might arise out of
allegations

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relating to a claimed breach of an alleged oral or written employment
contract, or relating to purported employment discrimination or civil rights
violations, such as, but not limited to, those arising under Title VII of the
Civil Rights Act of 1964 (42 U.S.C. ss.ss.2000e et seq.), the Civil Rights Acts
of 1866 and 1871 (42 U.S.C. ss.ss.1981 and 1983), Executive Order 11246, as
amended, the Age Discrimination in Employment Act (29 U.S.C. ss.621 et seq.),
the Employee Retirement Income Security Act of 1974, the Equal Pay Act of 1963
(29 U.S.C. ss.206(d)(1)), the Civil Rights Act of 1991, the Americans with
Disabilities Act, all statutory provisions of the Connecticut General Statutes
over which the Connecticut Commission on Human Rights and Opportunities is
authorized to exercise jurisdiction, or any other applicable federal, state, or
local employment discrimination statute or ordinance, which you, your executors,
administrators, successors, and assigns might have or assert against Stanley (a)
by reason of any event which occurred on or before the time of execution of this
Agreement, in connection your employment by Stanley, or the termination of such
employment, and all circumstances related thereto, or (b) by reason of any
matter, cause or thing whatsoever which may have occurred prior to the time of
execution of this Agreement. Nothing in this Agreement prevents you from
enforcing the terms and conditions of this Agreement.

         6. You waive your right to file any charge or complaint, except as such
waiver is prohibited by law, and agree that you will not accept any relief or
recovery from any charge or complaint against Stanley before any federal, state,
or local administrative agency. You further waive all rights to file any action
before any federal, state, or local court against Stanley. You confirm that no
charge, complaint, or action exists in any forum or form. Except as prohibited
by law, in the event that any such claim is filed, it shall be dismissed with
prejudice upon presentation hereof and you shall reimburse Stanley for the
costs, including attorney's fees, of defending any such action.

         7. You agree not only to release Stanley from any and all claims as
stated above which you could make on your own behalf, but also those which may
be made by any other person or organization on your behalf. You specifically
waive any right to become, and promise not to become, a member of any class in a
case in which a claim against Stanley is made involving any events up to and
including the date of this Agreement, except where such waiver is prohibited by
law. You further agree not to in any way voluntarily assist or cooperate with
any individual or entity in commencing or prosecuting any action or proceeding
against Stanley including, but not limited to, any charges, complaints, or
administrative agency claims, except as required by law.

         7a. Stanley knowingly and voluntarily releases and forever discharges
you of and from any and all actions or causes of action, suits, claims, charges,
complaints, contracts (whether oral or written, express or implied from any
source), and promises, whatsoever, in law or equity, which, against you, Stanley
may now have or hereafter can, shall or may have, including all unknown,
undisclosed and unanticipated losses, wrongs, injuries, debts, claims, or
damages to Stanley, for upon, or by reason of any matter, cause or thing
whatsoever including, but not limited to, any and all matters arising from your
good faith performance of your duties as an employee of Stanley. Stanley does
not, however, herein release or discharge you of and from actions or causes of
action, suits, claims, charges, complaints, or

                                       4

<PAGE>

contracts based on acts of intentional misconduct or any other such acts
performed outside of your good faith performance of your duties as an
employee of Stanley, including but not limited to illegal acts, provided further
that nothing contained herein is intended to prevent Stanley from enforcing the
terms and conditions of this Agreement.

         8. With respect to any secret or confidential information obtained by
you during your employment at Stanley, you will not disclose or use for any
purpose any such secret or confidential information. For purposes hereof, secret
or confidential information includes any process, technique, formula, recipe,
drawing, apparatus, method for or result of cost calculation, result of any
investigation or experiment made by or on behalf of Stanley, and any sales,
production or other competitive information, acquired by you during the course
of your employment by Stanley and all other information that Stanley itself does
not disclose to the public.

            You further agree that any work, design, discovery, invention or
improvement conceived, made, developed or received by you during the period of
your employment with Stanley, which relates to the actual or anticipated (as of
the date hereof) business, operations or research of Stanley, including but not
limited to any process, art, machine, manufacture, materials or composition of
matter, which could be manufacturing or used by Stanley, whether patentable or
not, is the sole property of Stanley. The terms invention and improvement as
used herein, in addition to their customary meaning, shall mean creative
concepts and ideas relating to advertising, marketing, promotional and sales
activities.

            You further state that you have assigned or hereby do assign to
Stanley or its designee all right, title and interest in any or to any idea,
work, design, discovery, invention or improvement made or created during your
employment at Stanley and to any application for letters patent or for trademark
registration made thereon, and to any common law or statutory copyright therein,
and that you will cooperate with Stanley in order to enable it to secure any
patent, trademark, copyright, or other property right therefor in the United
States or any foreign country, and any division, renewal, continuation or
continuation-in-part thereof, or for any reissue of any patent issued thereon.

            You also agree that Stanley has all rights to, possession of, and
all title in and to, all electronic files, papers, documents and drawings,
including copies thereof, which you may have originated or which came into your
possession during your employment with Stanley and which related to the business
of Stanley, regardless of whether such electronic files, papers, documents and
drawings are kept at your office, at your home or somewhere else, without
retaining any copies thereof, except for any personnel, benefit or compensation
information of a personal nature and any general business reference materials or
documents which do not contain any confidential or proprietary information.

            You also agree that during the period you receive any payments
outlined in section 2(a) above you will not work in any capacity, including as a
consultant or independent contractor, for the following businesses: Danaher
Corp. except its Veeder Root entity, Cooper, Ingersoll-Rand, or Snap-On. This
prohibition shall not apply to divisions or entities

                                       5

<PAGE>

that do not deal in products or services offered by Stanley. In addition, you
agree that you will not solicit any Stanley employee for any employment purpose
during such period.

         8a. Stanley agrees to indemnify and hold you harmless from all acts
arising from your employment by Stanley on the same basis Stanley would have
prior to your last day worked.

         9. You agree that you will not make any disparaging remarks or
demeaning comment, of any kind or nature, regarding Stanley or any of its
officers, directors, agents or employees. No officer or director of Stanley will
make any disparaging remarks or demeaning comment about you, and will favorably
comment upon and recommend you to all persons and entities who make any inquiry
about you or your performance or your abilities.

         10. You agree not to disclose any information regarding the substance
of this Agreement. Notwithstanding this agreement of non-disclosure, you may
disclose the substance of this Agreement to members of your immediate family,
your financial advisor, and to any attorney with whom you choose to consult
concerning the execution or enforcement of this Agreement; provided that you
agree that any such person to whom disclosure is made will not disclose any
information regarding such disclosure to any third party.

             An initial violation of this section will subject you to damages in
an amount which Stanley actually proves.

         11. All disputes and controversies of every kind and nature between the
parties to this Agreement arising out of or in connection with this Agreement as
to the existence, construction, validity, interpretation or meaning,
performance, non-performance, enforcement, operation, breach, continuance, or
termination of this Agreement shall be submitted to and determined by
arbitration pursuant to the procedure set forth in this Agreement.

             Either party may demand such arbitration by notice ("notice
procedure": if to Stanley, sent to the attention of the Corporate Manager,
Employee Relations, by fax (860-409-1287) and confirmed by UPS overnight express
or a comparable service sent to Corporate Manager, Employee Relations, 76
Batterson Park Road, Farmington, CT 06032; and if to you, sent to you at your
address set forth at the beginning of this Agreement by UPS overnight express or
a comparable service) in writing sent within 90 days after the time the
demanding party becomes aware, or should have become aware, that a controversy
exists. Within 30 days after such demand has been sent, the demanding party will
request in writing (with a copy to the other party sent in accordance with the
"notice procedure") the Arbitration Committee of the American Arbitration
Association to name an arbitrator to hear the dispute in the New Britain, CT
area.

             An award rendered by the arbitrator appointed under this section
shall be final and binding on all parties to the proceeding, and judgment on
such award may be entered by

                                       6
<PAGE>

either party in the highest court, state or federal, having jurisdiction.
Nothing contained in this Agreement shall be deemed to give the arbitrator any
authority, power, or right to alter, change, amend, modify, add to, or subtract
from any of the provisions of this Agreement.

                  Each party will pay its own arbitration costs and expenses
(including legal fees).

         12. You will not apply in the future for any employment with Stanley.

         13. This Agreement is made in the State of Connecticut and shall be
interpreted under the laws of such state. If any portion of this Agreement is
declared illegal or unenforceable and cannot be modified to be enforceable,
including the general release language, such portion shall immediately become
void, leaving the remainder of this Agreement in full force and effect. However,
if in any proceeding it is asserted by you or anyone else on your behalf and
with your approval that any portion of the general release language of
paragraphs 5, 6, or 7 is unenforceable and any portion of such language is, in
fact, ruled to be unenforceable in such proceeding for any reason, you will
return the consideration paid hereunder to Stanley.

         14. You and Stanley agree that neither this Agreement nor the
furnishing of the consideration for this Release will be deemed or construed at
anytime for any purpose as an admission by you or by Stanley of any liability or
unlawful conduct of any kind.

                                       7

<PAGE>

         15. This Agreement may not be modified, altered or changed except by
you and Stanley in a writing that specifically references this Agreement. This
Agreement sets forth the entire agreement between you and Stanley, and fully
supersedes any prior agreements or understandings between us.

         THE PARTIES HAVE READ AND FULLY CONSIDERED THIS AGREEMENT AND ARE
MUTUALLY DESIROUS OF ENTERING TO THIS AGREEMENT. THE TERMS OF THIS AGREEMENT ARE
THE PRODUCT OF MUTUAL NEGOTIATION AND COMPROMISE BETWEEN STANLEY AND YOU; YOU
UNDERSTAND THAT THIS AGREEMENT SETTLES, BARS, AND WAIVES ANY AND ALL CLAIMS THAT
YOU HAVE OR COULD POSSIBLY HAVE AGAINST STANLEY. YOU HAVE BEEN AFFORDED AT LEAST
21 DAYS TO CONSIDER THIS AGREEMENT AND HAVE BEEN ADVISED TO CONSULT WITH AN
ATTORNEY. HAVING SUBSEQUENTLY ELECTED TO EXECUTE THIS AGREEMENT, TO FULFILL THE
PROMISES SET FORTH HEREIN, AND TO RECEIVE THEREBY THE SUMS AND BENEFITS SET
FORTH IN PARAGRAPHS 2(A) THROUGH 2(N) ABOVE, YOU FREELY AND KNOWINGLY, AND AFTER
DUE CONSIDERATION, ENTER INTO THIS AGREEMENT INTENDING TO WAIVE, SETTLE AND
RELEASE ALL CLAIMS YOU HAVE OR MIGHT HAVE AGAINST STANLEY.

         You and Stanley now voluntarily and knowingly execute this Agreement.

                                   John Turner
                                   -----------------------------
                                   John Turner

Signed and sworn before me this 21st day of December, 1999.

Robert M. Meyer
------------------------------------------
(Notary Public/Commissioner of the Superior Court)

                                    THE STANLEY WORKS:

                                    By:  Mark Mathieu
                                         --------------------------------------
                                         Mark Mathieu
                                         Vice President, Human Resources

Signed and sworn before me this 30th day of December, 1999.

James J. Tallaksen
------------------------------------------
(Notary Public/Commissioner of the Superior Court)

                                       8

<PAGE>

                                    EXHIBIT A

                                                                 --------------
                                                                 Date

Mark Mathieu
Vice President, Human Resources
1000 Stanley Drive
New Britain, CT  06053

RE:      Agreement

Dear Mark:

         On ______________ 1999, I executed an Agreement and General Release
(the "Agreement") between The Stanley Works and me. Stanley advised me, in
writing, to consult with an attorney of my choosing prior to executing the
Agreement.

         More than 7 days have elapsed since I executed the Agreement. I have
never revoked my acceptance or execution of the Agreement and hereby reaffirm my
acceptance of the Agreement. Therefore, in accordance with the terms of the
Agreement, I hereby request payment of the benefits described in paragraphs 2(a)
through 2(n) of the Agreement.

                                            Very truly yours,

                                            John Turner

<PAGE>

                                    EXHIBIT B

                                                                --------------
                                                                Date

Mark Mathieu
Vice President, Human Resources
1000 Stanley Drive
New Britain, CT  06053

RE:      Agreement

Dear Mark:

         I hereby resign my office of President, Consumer Sales, effective
September 30, 1999.

         Further, effective September 30, 1999, I resign all offices and
directorships that I hold with The Stanley Works, and any and all of its
subsidiaries and divisions.

                                            Very truly yours,

                                            John Turner

                                       10

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