Document:

EXHIBIT
      10(xi)(h)

    

    Date

    

    Dear
      Thiery:

    

    It
      is my
      pleasure to congratulate you for being selected to participate in the Long
      Term
      Performance Award Program (the “Program”) under The 1997 Stanley Works Long-Term
      Incentive Plan. This Program is intended to provide substantial, equity-based
      rewards for specified full-time members of our senior executive team, provided
      specific Corporate goals are achieved during the Program’s three year
      measurement period (January 1, 2006 through January 3, 2009). 

    

    In
      conjunction with our short-term variable compensation program (MICP) and our
      stock option program, the Program is an important addition to your total
      compensation package, and provides a strong additional incentive to continue
      increasing shareholder value.

    

    Bonus
      Opportunity 

    

    Each
      participant will have an opportunity to earn a number of Performance Shares
      (PS)
      based upon achievement of corporate financial goals, and may earn additional
      performance shares if the corporate financial goals are exceeded. Each PS unit
      represents one share of Stanley Common Stock and, accordingly, the potential
      value of a participant’s performance award under the Program may change as our
      stock price changes.

    

    Each
      participant is allocated a threshold, target and maximum number of PS units
      based upon assigned percentages of his or her annual base salary, at the rate
      in
      effect as of January 1, 2006. 

    

    Your
      performance award covers the following number of PS units:

    

    
      	 	 	
              Threshold

            	 	
              Target

            	 	
              Max

            	 
	
              #
                PS

            	 	 	
              12,226

            	 	 	
              24,453

            	 	 	
              37,050

            	 

    

    

    Vesting
      and Settlement

    

    Your
      Performance Award will become vested in accordance with the provisions of the
      Restricted Stock Award Certificate enclosed herewith. The number of Shares
      you
      shall receive, if any, in settlement of your Performance Award, shall be equal
      to (i) the number of Shares specified above to be issued based upon the
      Performance Goals achieved plus (ii) in the event performance falls between
      the
      Threshold and Target or Target and Maximum Goals as specified in the Award
      Document, a pro rata number of Shares calculated as follows (rounded to the
      closest whole number):

     

    S
      =
      (A-L/N-L)x(SN-SL)

    

      

       

    

    where:

    S
      =the
      additional number of Shares to be issued

    A
      =the
      actual EPS or ROCE achieved

    L
      =the
      EPS or ROCE Goal reached

    N
      =the
      next highest EPS or ROCE Goal

    SN
      =the
      number of Shares designated for issuance at the next highest EPS or ROCE Goal;
      and

    SL
      = the
      number of Shares designated for issuance at the EPS or ROCE Goal
      reached.

     

    For
      purposes of these calculations, 50% of
      Shares
      are allocated to EPS Performance Goals and 50% of
      Shares
      are allocated to ROCE Performance Goals.

    

    Financial
      Measurements

    

    The
      Corporate financial goals for this Program will consist of two equally weighted
      metrics, one based on EPS and one based on ROCE, as set forth in the attached
      document entitled LTIP Corporate Goals (2006-2008). 

    

    Although
      this summary includes the key aspects of the Program, it is not intended to
      represent a full accounting of the rules and regulations applicable to the
      Program and is subject to the terms described in the enclosed Restricted Stock
      Award Certificate and the Stanley Works 1997 Long-Term Incentive Plan, which
      together with this document govern the Program.

    

    If
      you
      have any questions, please call me, Jim Loree or Mark Mathieu. Once again,
      thank
      you for your continued support and congratulations on being selected to
      participate in this important Program.

    

    Best
      regards,EXHIBIT
		10(xii) (b)

	  

	 
		
		  		The
				  Stanley Works 2001 Long-Term Incentive Plan
	 	 

 

		 
 

	 Stock
		Option Grant Certificate

	  

	  Thierry
		Paternot (the "Grantee"), pursuant
		to the terms of the employment agreement, dated as of October 18, 2005, by and
		between the Grantee and Stanley Doors France SAS (the "Employment Agreement"),
		is hereby granted, effective as of the grant date set forth below (the "Grant
		Date"), 200,000 Options, each of which entitles the Grantee to purchase one
		share.

	  

	 Grant
		Date: February 8, 2006 

	  

	 Expiration
		Date: 10th
		Anniversary of Grant Date. 

	  

	 Purchase
		Price per share: $48.32

	  

	 Subject
		to the terms and conditions hereof and the Plan, 100,000 Options shall be
		exercisable on the 1st
		anniversary of the Grant Date, 50,000 Options shall be exercisable on the
		2nd
		anniversary of the Grant Date and 50,000 Options shall be exercisable on the
		3rd
		anniversary of the Grant Date. 

	  

	 The Stanley Works

	  

	 As a
		member of Stanley’s team, your skills and contributions

	 are
		vital to our Company's and its Shareholders continued
		success.

	 This
		award of stock options provides you with the opportunity to earn significant
		financial rewards for 

	 your
		efforts and contributions to making Stanley the most successful company it can
		be.

	 On
		behalf of the Board of Directors, Congratulations.

	 
			 	 	 
	 
 	 
 	 
 
	 	 	    
	 	
				John F. Lundgren

				Chairman and CEO

				The Stanley Works
 

 

	 
 

		
		

		 

	 
		 
 

	 The
		Stanley Works hereby grants to the Grantee named on the front of this
		Certificate the options (the “Options”) to purchase, on or before the
		Expiration Date at the Purchase Price per Share, the Shares, which shall be
		shares of the Common Stock of The Stanley Works, par value $2.50 per share (the
		“Common Stock”) all as set forth on the front of this certificate.
		The Options are granted subject to the following terms and conditions and the
		terms and conditions of The Stanley Works 2001 Long Term Incentive Plan, as
		amended from time to time (the “Plan”).

	 

	 1.
		Exercisability; Restrictions on Sale of Shares. The
		Options may, from time to time from the Exercisable Dates to the Expiration
		Date, be exercised as set forth on the front of this certificate. Stock may be
		purchased hereunder only to the extent that Options have become exercisable.
		See paragraph 6 regarding termination of employment. Shares may not, except as
		described herein, be sold prior to the fourth anniversary of the Grant Date.
		The above-mentioned four-year holding period may be broken in the event of
		death, forced retirement, severance or disability of the Grantee. If the
		Grantee is forced to retire (within the meaning of section L.122-14-13 of the
		Code de travail) or terminated and provided the Options have been exercised at
		least three months before the termination of employment, the shares may be sold
		without satisfaction of the four-year holding period. In the event of death or
		disability (within the meaning of section L.341-1 et seq. of the Code de la
		Sécurité Sociale), the shares may be sold
		immediately.

	 

	 2.
		Process of Exercise. The
		Options may be exercised, in whole or in part, by written notification to
		Stanley’s Treasurer at Stanley’s executive offices in New Britain,
		Connecticut, or by any other procedure established by Stanley from time to
		time. Such notification shall (i) specify the number of shares with respect to
		which the Options are being exercised, and (ii) be accompanied by payment for
		such shares. Such notification shall be effective upon its receipt by the
		Treasurer or any other party designated by the Treasurer on or before the
		Expiration Date. Options may not be exercised with respect to a fractional
		share or with respect to the lesser of 100 shares or the balance of the
		Options. In the event the Expiration Date falls on a day which is not a regular
		business day at Stanley’s executive offices in New Britain, Connecticut,
		then such written notification must be received at such office on or before the
		last regular business day prior to the Expiration Date. Payment is to be made
		by check payable to the order of The Stanley Works or by one of the alternative
		methods of payment described in the Plan and acceptable to Stanley’s
		Compensation and Organization Committee (the “Committee”). No shares
		shall be issued on exercise of Options until full payment for such shares has
		been made and all checks delivered in payment therefore have been collected.
		The Grantee shall not have any rights of a shareholder upon exercise of an
		Option, including but not limited to, the right to vote or to receive
		dividends, until a stock certificate has been issued to the Grantee in respect
		of such Option.

	 

	 3.
		Tax Withholding; etc. Stanley
		shall not be required to issue any certificate or certificates for shares
		purchased upon the exercise of the Options prior to (i) the admission of such
		shares to listing on any stock exchange on which the stock may then be listed,
		(ii) the completion of any registration or other qualification of such shares
		under any state or federal law or rulings or regulations of any governmental
		regulatory body, (iii) the obtaining of any consent or approval or other
		clearance from any governmental agency which Stanley shall, in its sole
		discretion, determine to be necessary or advisable, and (iv) the payment to
		Stanley, upon its demand, of any amount requested by Stanley for withholding
		federal, state or local income or earnings taxes or any other applicable tax or
		assessment (plus interest or penalties thereon, if any, caused by a delay in
		making such payment) incurred by reason of the exercise of the Options or the
		transfer of such shares. The Options shall be exercised and shares issued only
		upon compliance with the Securities Act of 1933, as amended (the
		“Act”), and any other applicable securities laws, and the Grantee
		shall comply with any requirements imposed by the Committee under such laws. If
		the Grantee qualifies as an “affiliate” (as that term is defined in
		Rule 144 (“Rule 144”) promulgated under the Act), upon demand by
		Stanley, the Grantee (or any person acting on his or her behalf) shall deliver
		to the Treasurer at the time of any exercise of the Options a written
		representation that upon exercising the Options he or she will acquire shares
		pursuant to the Plan for his or her own account, that he or she is not taking
		the shares with a view to distribution and that he or she will dispose of the
		shares only in compliance with Rule 144.

	 

	 4.
		Transferability. Except
		as otherwise provided in the Plan, Options are not transferable by the Grantee
		otherwise than by will or by the laws of descent and distribution. More
		particularly (but without limiting the generality of the foregoing), Options
		may not be assigned, transferred (except as provided above), pledged or
		hypothecated in any way, shall not be assignable by operation of law and shall
		not be subject to execution, attachment or similar process. 

	 

	 5.
		No Right to Employment. The
		Options do not confer upon the Grantee any right with respect to continuation
		of employment with Stanley or any of its subsidiaries, and will not interfere
		in any way with the right of Stanley or any of its subsidiaries to terminate
		the Grantee’s employment.

	 

	 6.
		Termination of Employment.
		Notwithstanding any other provisions:

	 

	 Upon the
		termination of the Grantee’s employment with Stanley or any of its
		subsidiaries for any reason, Options not then exercisable shall be immediately
		forfeited; provided, however, that if the Grantee's employment is terminated by
		Stanley or any of its subsidiaries other than for Cause, death or the Grantee's
		disability (within the meaning of section L.341-1 et seq. of the Code de la
		Sécurité Sociale), then the next two tranches of the Options that
		would otherwise have become exercisable on the next anniversaries of the Grant
		Date shall become immediately exercisable so long as the Grantee shall have
		waived, in a manner satisfactory to Stanley, his rights to any severance,
		termination pay, notice pay or any similar payment due to him from Stanley or
		any of its subsidiaries in connection with his termination of employment. The
		Grantee will not be considered to have incurred a termination of employment if
		his employment is transferred between Stanley subsidiaries so long as he
		remains continuously employed. Any Options that have become exercisable as of
		the Grantee's termination of employment shall remain exercisable until the
		Expiration Date; provided, however that (1) if the Grantee's employment is
		terminated for Cause (as defined below), then Options shall terminate sixty
		(60) days following the date of such termination and (2) notwithstanding clause
		(1) above, Options shall in no case terminate prior to the sixtieth
		(60th) day
		following the fourth anniversary of the Grant Date. For purposes of these
		Options, "Cause" means the Grantee's willful failure, neglect or refusal to
		substantially perform his duties under the Employment Agreement, a material
		breach by the Grantee of his Employment Agreement or the Grantee's conviction
		of a felony.

	 

	 7.
		Adjustments. In the
		event of a merger, consolidation, reorganization, recapitalization, stock
		dividend, stock split or other changes in corporate structure or capitalization
		affecting the Common Stock, the number of shares remaining to be exercised
		under the Options and the Purchase Price shall be appropriately adjusted by the
		Committee in accordance with the terms and provisions of the Plan. If, as a
		result of any adjustment under this paragraph, the Grantee becomes entitled to
		a fractional share, he or she shall have the right to purchase only the
		adjusted number of full shares and no payment or other adjustment will be made
		with respect to the fractional share so disregarded.

	 

	 8.
		Miscellaneous. All
		decisions or interpretations of the Committee with respect to any question
		arising under the Plan or under the Options shall be binding, conclusive and
		final. The waiver by Stanley of any provision of the Options shall not operate
		as or be construed to be a subsequent waiver of the same provision or a waiver
		of any other provision of the Options. Options shall be irrevocable during the
		Option period and its validity and construction shall be governed by the laws
		of the State of Connecticut. The terms and conditions set forth in these
		Options are subject in all respects to the terms and conditions of the Plan,
		which shall be controlling. Grantee agrees to execute such other agreements,
		documents, or assignments as may be necessary or desirable to effect the
		purposes of these Options. If this certificate shall be interpreted into any
		language other than English, the English language version shall be controlling
		in the event of any conflict. For purposes of this certificate, exercisable or
		exercisability shall have the same meaning as vested.

	 

	 9.
		Binding Effect. The
		grant of these Options shall be binding and effective only if this Certificate
		is executed by or on behalf of Stanley.

	 

	 10.
		French Purchase Option. It is the
		intent of Stanley that these Options qualify as purchase options under French
		law. Accordingly, these Options shall be interpreted to comply with such
		requirements. In that regard, Stanley hereby confirms that upon exercise of
		these Options, all shares delivered in respect of such exercises shall be
		treasury shares.

	 

	 11.
		Change in Control. Unless
		otherwise determined by the Committee in writing, these Options shall not
		become exercisable upon the occurrence of a Change in Control.

	 

	 12.
		Capitalized Terms. All
		capitalized terms used in this Certificate which are not defined herein shall
		have the meaning given them in the Plan unless the context clearly requires
		otherwise.

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