Document:

THIS SECURITY IS A GLOBAL
				SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
				REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY OR A NOMINEE OF THE
				DEPOSITORY TRUST COMPANY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES
				REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR
				ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND
				MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY TO A
				NOMINEE OF THE DEPOSITORY TRUST COMPANY OR BY A NOMINEE OF THE DEPOSITORY TRUST
				COMPANY TO THE DEPOSITORY TRUST COMPANY OR ANOTHER NOMINEE OF THE DEPOSITORY
				TRUST COMPANY.
			 

		  

	 
		                UNLESS THIS CERTIFICATE IS
		PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
		NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR
		REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
		REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED
		BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
		CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
		DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
		ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO.,
		HAS AN INTEREST HEREIN.
	 

	 
		THE STANLEY
		WORKS
	 

	 
		Convertible
		Note
	 

	 	 	      CUSIP: 854616 208
	 	ISIN: US854616AM18
	 	 
	No. 1	$0

	 
		                THE STANLEY WORKS., a corporation
		organized and existing under the laws of Connecticut (hereinafter called the
		“Company”, which term includes any successor corporation under
		the Indenture hereinafter referred to), for value received, hereby promises to
		pay to Cede & Co., or registered assigns, the principal sum as set forth in
		the Schedule of Increases or Decreases in Convertible Note attached hereto, on
		May 17, 2012 at the office or agency of the Company maintained for that purpose
		in accordance with the terms of the Indenture, in such coin or currency of the
		United States of America as at the time of payment shall 
	 

	 
		 
	 

	 

	 
	 

	 

	 
		be legal tender for
		the payment of public and private debts, and to pay interest, quarterly in
		arrears on February 17, May 17, August 17 and November 17 of each year,
		commencing August 17, 2007, on said principal sum at said office or agency, in
		like coin or currency, at the annual rate of 3-month LIBOR, reset quarterly,
		minus 3.500% (but in no event less than 0%), from and including March 20, 2007,
		or from the most recent date to which interest has been paid or provided for,
		to but excluding the Purchase Contract Settlement Date, and thereafter
		quarterly in arrears on February 17, May 17, August 17 and November 17 of each
		year, commencing August 17, 2010 at the Reset Rate, or if there has not been a
		Successful Remarketing prior to the Purchase Contract Settlement Date, at the
		Initial Interest Rate. This Security shall bear interest, to the extent
		permitted by law, on any overdue principal, premium, if any and interest at the
		Initial Interest Rate, unless a Successful Remarketing shall have occurred, in
		which case interest on such amounts shall accrue at the Reset Rate from and
		after the Remarketing Settlement Date, in each case, compounded quarterly. The
		Reset Rate, if any, shall be established pursuant to the terms of the
		Supplemental Indenture No.1 and the Remarketing Agreement. The amount of
		interest payable for any Interest Period will be computed on the basis of the
		actual number of days elapsed in the Interest Period divided by 360.
	 

	 
		                Reference is hereby made to the
		further provisions of this Convertible Note set forth on the reverse hereof,
		including, without limitation, provisions giving the Holder of this Convertible
		Note the right to convert this Convertible Note into cash and, if applicable,
		shares of Common Stock, on the terms and subject to the limitations referred to
		on the reverse hereof and as more fully specified in the Supplemental Indenture
		No.1. Such further provisions shall for all purposes have the same effect as if
		set forth at this place.
	 

	 
		                Unless the certificate of
		authentication hereon has been executed by the Trustee referred to on the
		reverse hereof by manual signature, this Convertible Note shall not be entitled
		to any benefit under the within-mentioned Indenture or be valid or obligatory
		for any purpose.
	 

	 
		2
	 

	 

	 
	 

	 

	 
		                IN WITNESS WHEREOF, the Company
		has caused this instrument to be duly executed.
	 

	 	 	THE STANLEY WORKS
	      
	 	 
	 	By: 
			 ________________________________________________
	 	        Name:    
			 
	 	        Title:      
			 

	 
		TRUSTEE’S
		CERTIFICATE OF AUTHENTICATION
	 

	 
		This is one of the
		Securities of the series designated therein referred to in the within-mentioned
		Indenture.
	 

	 
		Dated: 
		                      
	 

	 	 	THE BANK OF NEW YORK TRUST 

			      COMPANY, N.A.,

			      as Trustee
	    
	 	 
	 	By:  _________________________________________________
	 	         Authorized
			 Officer
	

	 
		 
	 

	 

	 
	 

	 

	 
		REVERSE OF
		CONVERTIBLE NOTE
	 

	 
		                This Convertible Note is one of a
		duly authorized issue of securities of the Company (herein called the
		“Securities”), issued and to be issued in one or more series
		of Securities under an Indenture (the “Base Indenture”), dated
		as of Novermber 1, 2002, between the Company and The Bank of New York Trust
		Company, N.A., as successor trustee (the “Trustee”) to
		JPMorgan Chase Bank, N.A., as supplemented by the Supplemental Indenture No.1,
		dated as of March 20, 2007, between the Company and the Trustee (the
		“Supplemental Indenture No.1” and, together with the Base
		Indenture so supplemented, the “Indenture”), to which
		Indenture reference is hereby made for a statement of the respective rights,
		limitations of rights, duties and immunities thereunder of the Company, the
		Trustee and the Holders of the Convertible Notes and of the terms upon which
		the Convertible Notes are, and are to be, authenticated and delivered. This
		Convertible Note is one of the series designated on the face hereof.
	 

	 
		                All terms used in this
		Convertible Note that are defined in the Indenture shall have the meaning
		assigned to them in the Indenture.
	 

	 
		                If an Event of Default (other
		than an Event of Default specified in Section 6.02 of the Supplemental
		Indenture No.1 or clauses (7) or (8) of Section 5.1 of the Base Indenture)
		occurs and is continuing, the principal of, premium, if any, and accrued and
		unpaid interest on all Convertible Notes may be declared to be due and payable
		by either the Trustee or the Holders of at least 25% in aggregate principal
		amount of the Convertible Notes then outstanding, and, upon said declaration
		the same shall be immediately due and payable. If an Event of Default specified
		in Section 6.02 of the Supplemental Indenture No. 1 occurs, for the first 120
		days after the occurrence of such an Event of Default, the sole remedy for such
		an Event of Default shall consist exclusively of a Holder’s right to
		receive an extension fee on the Convertible Notes in an amount equal to 0.25%
		of the principal amount of the Convertible Notes. On the 120th day after such
		Event of Default (if the Event of Default relating to the reporting obligations
		is not cured or waived prior to such 120th day), the principal of, premium, if
		any, and accrued and unpaid interest on all Convertible Notes may be declared
		to be due and payable by either the Trustee or the Holders of at least 25% in
		aggregate principal amount of the Convertible Notes then outstanding, and, upon
		said declaration the same shall be immediately due and payable. If an Event of
		Default specified in clauses (7) or (8) of Section 5.1 of the Base Indenture
		occurs and is continuing, then the principal of and premium, if any, and
		interest accrued and unpaid on all the Convertible Notes shall be immediately
		due and payable without any declaration or other action on the part of the
		Trustee or any Holder of Convertible Notes.
	 

	 
		                The Indenture contains provisions
		permitting the Company and the Trustee, with the consent of the Holders of not
		less than a majority in aggregate 
	 

	 
		2
	 

	 

	 
	 

	 

	 
		principal amount of
		the Convertible Notes at the time outstanding, to execute supplemental
		indentures adding any provisions to or changing in any manner or eliminating
		any of the provisions of the Indenture or of any supplemental indenture or
		modifying in any manner the rights of the Holders of the Convertible Notes,
		subject to exceptions set forth in Section 9.2 of the Base Indenture. Subject
		to the provisions of the Indenture, the Holders of not less than a majority in
		aggregate principal amount of the Convertible Notes at the time outstanding
		may, on behalf of the Holders of all of the Convertible Notes, waive certain
		past defaults or Events of Default.
	 

	 
		                No reference herein to the
		Indenture and no provision of this Convertible Note or of the Indenture shall
		impair, as among the Company and the Holder of the Convertible Notes, the
		obligation of the Company, which is absolute and unconditional, to pay the
		principal of, premium, if any, on and interest on this Convertible Note at the
		place, at the respective times, at the rate and in the coin or currency herein
		and in the Indenture prescribed.
	 

	 
		                Interest on the Convertible Notes
		shall be computed on the basis of the actual number of days elapsed in the
		Interest Period divided by 360.
	 

	 
		                The Convertible Notes are
		issuable in fully-registered form, without coupons, in minimum denominations of
		$1,000 principal amount and in integral multiples of $1,000 in excess thereof.
		At the office or agency of the Company referred to on the face hereof, and in
		the manner and subject to the limitations provided in the Indenture, without
		payment of any service charge but with payment of a sum sufficient to cover any
		tax, assessment or other governmental charge that may be imposed in connection
		with any registration or exchange of Convertible Notes, Convertible Notes may
		be exchanged for a like aggregate principal amount of Convertible Notes of any
		other authorized denominations.
	 

	 
		                The Convertible Notes are not
		subject to redemption.
	 

	 
		                Upon the occurrence of a
		Fundamental Change, Holders of Convertible Notes shall have the right to
		require the Company to repurchase all or a portion of their Convertible Notes
		pursuant to Section 3.01 of the Supplemental Indenture No.1.
	 

	 
		                Subject to and in compliance with
		the provisions of the Indenture, the Holder hereof shall have the right to
		exchange each $1,000 principal amount of this Convertible Note into cash and,
		if applicable, shares of Common Stock as provided in Article 7 of the
		Supplemental Indenture No.1.
	 

	 
		                In the event the Holder
		surrenders this Convertible Note for conversion in connection with a Cash
		Merger, the Company will increase the Applicable 
	 

	 
		3
	 

	 

	 
	 

	 

	 
		Conversion Rate by
		the Additional Cash Merger Shares as and when provided in the Supplemental
		Indenture No.1.
	 

	 
		                No recourse for the payment of
		the principal of (including the Repurchase Price upon repurchase pursuant to
		Article 3 of the Supplemental Indenture No.1) or any premium, if any, or
		interest on this Convertible Note, or for any claim based hereon or otherwise
		in respect hereof, and no recourse under or upon any obligation, covenant or
		agreement of the Company in the Indenture (including the Supplemental Indenture
		No.1) or any supplemental indenture or in this Convertible Note, or because of
		the creation of any indebtedness represented thereby, shall be had against any
		incorporator, shareholder, partner, member, manager, employee, agent, officer,
		director or subsidiary, as such, past, present or future, of the Company, the
		Company or any of the Company’s Subsidiaries or of any successor thereto,
		either directly or through the Company, the Company or any of the
		Company’s Subsidiaries or of any successor thereto, whether by virtue of
		any constitution, statute or rule of law, or by the enforcement of any
		assessment or penalty or otherwise; it being expressly understood that all such
		liability is hereby expressly waived and released as a condition of, and as
		consideration for, the execution of the Supplemental Indenture No.1 and the
		issue of this Convertible Note.
	 

	 
		                Pursuant to Section 8.04 of the
		Supplemental Indenture No.1, if there has not been a Successful Remarketing
		prior to the end of the second Remarketing Date, Holders of Convertible Notes
		will have the right (the “Put Right”) to require the Company
		to purchase such Convertible Notes on the Purchase Contract Settlement Date, in
		the case of Separate Convertible Notes upon a notice to the Trustee on or prior
		to the second Business Day prior to the Purchase Contract Settlement Date, at a
		price per Convertible Note to be purchased equal to the principal amount of the
		Convertible Note (the “Put Price”).
	 

	 
		                The Company agrees, and by
		acceptance of a Corporate Unit or a Separate Convertible Note, each holder of a
		Convertible Note and each holder of a Separate Convertible Note will be deemed
		to have agreed (1) for United States federal, state and local income and
		franchise tax purposes to treat the acquisition of a Corporate Unit as the
		acquisition of a Convertible Note and the Purchase Contract constituting the
		Corporate Unit and (2) to treat the Convertible Note or Separate Convertible
		Note, as the case may be, as indebtedness for United States federal, state and
		local income and franchise tax purposes.
	 

	 
		                THIS SECURITY SHALL BE GOVERNED
		BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
		GIVING EFFECT TO THE CONFLICTS OF LAW PROVISIONS THEREOF TO THE EXTENT A
		DIFFERENT LAW WOULD GOVERN AS A RESULT.
	 

	 
		4
	 

	 

	 
	 

	 

	 
		ABBREVIATIONS
	 

	 
		                The following abbreviations, when
		used in the inscription of the face of this Convertible Note, shall be
		construed as though they were written out in full according to applicable laws
		or regulations.
	 

	 	TEN—COM	 	as tenants in common	 	UNIF GIFT MIN ACT —___ Custodian
			 ___
	 	 	 	 	 
	TEN—ENT	 	as
			 tenant by the entireties	 	(Cust) (Minor)
	 	 	 
	JT—TEN	 	as joint tenants with right of
			 survivorship and not under Uniform Gifts to Minors Act
	 	 	 	 	 
	 	 	as
			 tenants in common	 	__________________________________________________
	 	 	 	 	(State)

	 
		                Additional abbreviations may also
		be used though not in the above list.
	 

	 
		5
	 

	 

	 
	 

	 

	 
		CONVERSION
		NOTICE
	 

	 
		TO:         THE STANLEY
		WORKS

		                The
		Bank of New York Trust Company, N.A., as Trustee
	 

	 
		                The undersigned registered owner
		of this Convertible Note hereby irrevocably exercises the option to convert
		this Convertible Note, or the portion thereof (which is $1,000 or a multiple
		thereof) below designated, into cash and, if applicable, shares of Common
		Stock, in accordance with the terms of the Supplemental Indenture No.1 referred
		to in this Convertible Note, and directs that the shares of Common Stock, if
		any, issuable and deliverable upon such conversion, together with any check in
		payment for cash, if any, payable upon conversion or for fractional shares and
		any Convertible Notes representing any unconverted principal amount hereof, be
		issued and delivered to the registered holder hereof unless a different name
		has been indicated below. Capitalized terms used herein but not defined shall
		have the meanings ascribed to such terms in the Indenture (including the
		Supplemental Indenture No.1). If shares or any portion of this Convertible Note
		not converted are to be issued in the name of a person other than the
		undersigned, the undersigned will provide the appropriate information below and
		pay all transfer taxes payable with respect thereto. Any amount required to be
		paid by the undersigned on account of interest accompanies this Convertible
		Note.
	 

	 
		Dated:
		______________________
	 

	 	 	______________________________
		 
	 	______________________________
		Signature(s)
		 
	 	Signature(s) must be guaranteed by an “eligible guarantor
			 institution” meeting the requirements of the Note Registrar, which
			 requirements include membership or participation in the Security Transfer Agent
			 Medallion Program (“STAMP”) or such other “signature
			 guarantee program” as may be determined by the Note Registrar in
			 addition to, or in substitution for, STAMP, all in accordance with the
			 Securities Exchange Act of 1934, as amended.
		 
	 	______________________________
		Signature Guarantee

	 
		6
	 

	 

	 
	 

	 

	 
		                Fill in the registration of
		shares of Common Stock, if any, if to be issued, and Convertible Notes if to be
		delivered, and the person to whom cash and payment for fractional shares is to
		be made, if to be made, other than to and in the name of the registered
		holder:
	 

	 
		Please print name and
		address
	 

	 
		______________________________

		(Name)
	 

	 
		______________________________
 (Street Address)
	 

	 
		______________________________
 (City, State and Zip Code)
	 

	 
		Principal amount to
		be converted
(if less than all):
	 

	 
		$_____________________________
	 

	 
		Social Security or
		Other Taxpayer
Identification Number:
	 

	 
		______________________________
	 

	 
		NOTICE: The signature
		on this Conversion Notice must correspond with the name as written upon the
		face of the Convertible Note in every particular without alteration or
		enlargement or any change whatever.
	 

	 
		7
	 

	 

	 
	 

	 

	 
		REPURCHASE
		NOTICE
	 

	 
		TO:         THE STANLEY
		WORKS

		                The
		Bank of New York Trust Company, N.A., as Trustee
	 

	 
		                The undersigned registered owner
		of this Convertible Note hereby irrevocably acknowledges receipt of a notice
		from The Stanley Works (the “Company”) regarding the right of
		Holders to elect to require the Company to repurchase the Convertible Notes and
		requests and instructs the Company to repay the entire principal amount of this
		Convertible Note, or the portion thereof (which is $1,000 or an integral
		multiple thereof) below designated, in cash, in accordance with the terms of
		the Indenture (including the Supplemental Indenture No.1) at the price of 100%
		of such entire principal amount or portion thereof, together with accrued and
		unpaid interest to, but excluding, the Fundamental Change Repurchase Date, as
		the case may be, to the registered holder hereof. Capitalized terms used herein
		but not defined shall have the meanings ascribed to such terms in the
		Indenture. The Convertible Notes shall be repurchased by the Company as of the
		Fundamental Change Repurchase Date, as the case may be, pursuant to the terms
		and conditions specified in the Indenture.
	 

	 
		                NOTICE: The signatures of the
		Holder(s) hereof must correspond with the name as written upon the face of the
		Convertible Note in every particular without alteration or enlargement or any
		change whatever. Convertible Note Certificate Number (if applicable):
		____________________________
	 

	 
		                Principal amount to be
		repurchased (if less than all, must be $1,000 or whole multiples thereof):
		______________________
	 

	 
		Social Security or
		Other Taxpayer Identification Number: ________________
	 

	 
		Dated:
		________________
	 

	 	 	______________________________
		 
	 	______________________________
		Signature(s)
		 
	 	Signature(s) must be guaranteed by an “eligible guarantor
			 institution” meeting the requirements of the Note Registrar, which
			 requirements include membership or participation in the Security Transfer Agent
			 Medallion Program (“STAMP”) or such other “signature
			 guarantee program” as may be determined by the Note Registrar in
			 addition to, or in substitution for, STAMP, 

	 
		8
	 

	 

	 
	 

	 

	 	 	all in accordance with the Securities Exchange Act of 1934, as
			 amended.
		 
	 	______________________________
		Signature Guarantee

	 
		9
	 

	 

	 
	 

	 

	 
		ASSIGNMENT
	 

	 	                FOR VALUE RECEIVED, the
			 undersigned assigns and transfers this Security to:
	 
	 
	 
	 
	 
	(Insert
			 assignee’s social security or tax identification number)
	 
	 
	 
	 
	 
	(Insert address
			 and zip code of assignee)
	 
	and irrevocably
			 appoints
	 
	 
	 
	 

	 
		agent to transfer
		this Security on the books of the Company. The agent may substitute another to
		act for him or her.
	 

	 
		Date:      
		                         
	 

	 	 	Signature:
		 
		 	 
		 	 
	 	Signature Guarantee:	 

	 
		(Sign exactly as your
		name appears on the other side of this Security)
	 

	 
		10
	 

	 

	 
	 

	 

	 
		ASSIGNMENT
	 

	 
		                For value received
		________________________________________ hereby sell(s) assign(s) and
		transfer(s) unto ___________________________________ (Please insert social
		security or other Taxpayer Identification Number of assignee) ___________
		shares of Common Stock, and hereby irrevocably constitutes and appoints
		______________________________________ attorney to transfer said shares of
		Common Stock on the books of the Company, with full power of substitution in
		the premises.
	 

	 
		Date: 
		                        
	 

	 	 	Signature:
		 
		 	 
		 	 
	 	Signature Guarantee:	 

	 
		(Sign exactly as your
		name appears on the other side of this Security)
	 

	 
		11
	 

	 

	 
	 

	 

	 
		SIGNATURE
		GUARANTEE
	 

	 
		Signatures must be
		guaranteed by an “eligible guarantor institution” meeting the
		requirements of the Securities Registrar, which requirements include membership
		or participation in the Security Transfer Agent Medallion Program
		(“STAMP”) or such other “signature guarantee program” as
		may be determined by the Note Registrar in addition to, or in substitution for,
		STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
		ASSIGNMENT
	 

	 
		12
	 

	 

	 
	 

	 

	 
		SCHEDULE OF INCREASES
		OR DECREASES IN CONVERTIBLE NOTE
	 

	 
		The initial principal
		amount of this Convertible Note is $0. The following increases or decreases in
		a part of this Convertible Note have been made:
	 

	 	Date	 	Amount of
 decrease in 

			 principal 
 amount of this
 Convertible Note	 	Amount of
 increase in

			 principal
 amount of this
 Convertible Note	 	Principal
 amount of
			 this
 Convertible Note
 following such
 decrease
 or
			 increase	 	Signature of 
 authorized
			 
 officer of 
 Trustee	 
					 		 		 	 
		 	 	 						 
	 									
	 									

	 
		13THE STANLEY WORKS
	 
	Convertible Note
	 

	 	No.1	$330,000,000
	 	 

	 	                THE
			 STANLEY WORKS., a corporation organized and existing under the laws of
			 Connecticut (hereinafter called the “Company”, which term
			 includes any successor corporation under the Indenture hereinafter referred
			 to), for value received, hereby promises to pay to The Bank of New York Trust
			 Company, N.A., as Purchase Contract Agent and attorney-in-fact for holders of
			 Corporate Units (as defined in the Indenture herein after referred to), the
			 principal sum as set forth in the Schedule of Increases or Decreases in
			 Convertible Note attached hereto, on May 17, 2012 at the office or agency of
			 the Company maintained for that purpose in accordance with the terms of the
			 Indenture, in such coin or currency of the United States of America as at the
			 time of payment shall be legal tender for the payment of public and private
			 debts, and to pay interest, quarterly in arrears on February 17, May 17, August
			 17 and November 17 of each year, commencing August 17, 2007, on said principal
			 sum at said office or agency, in like coin or currency, at the annual rate of
			 3-month LIBOR, reset quarterly, minus 3.500% (but in no event less than 0%),
			 from and including March 20, 2007, or from the most recent date to which
			 interest has been paid or provided for, to but excluding the Purchase Contract
			 Settlement Date, and thereafter quarterly in arrears on February 17, May 17,
			 August 17 and November 17 of each year, commencing August 17, 2010 at the Reset
			 Rate, or if there has not been a Successful Remarketing prior to the Purchase
			 Contract Settlement Date, at the Initial Interest Rate. This Security shall
			 bear interest, to the extent permitted by law, on any overdue principal,
			 premium, if any and interest at the Initial Interest Rate, unless a Successful
			 Remarketing shall have occurred, in which case interest on such amounts shall
			 accrue at the Reset Rate from and after the Remarketing Settlement Date, in
			 each case, compounded quarterly. The Reset Rate, if any, shall be established
			 pursuant to the terms of the Supplemental Indenture No.1 and the Remarketing
			 Agreement. The amount of interest payable for any Interest Period will be
			 computed on the basis of the actual number of days elapsed in the Interest
			 Period divided by 360.
	 
	                Reference
			 is hereby made to the further provisions of this Convertible Note set forth on
			 the reverse hereof, including, without limitation, provisions giving the Holder
			 of this Convertible Note the right to convert this Convertible Note into cash
			 and, if applicable, shares of Common Stock, on the terms and subject to the
			 limitations referred to on the reverse hereof and as more fully specified in
			 the Supplemental Indenture No.1. Such further provisions shall for all purposes
			 have the same effect as if set forth at this place.
	 
	                Unless
			 the certificate of authentication hereon has been executed by the Trustee
			 referred to on the reverse hereof by manual signature, this Convertible
			 

	 
		 
	 

	 

	 
	 

	 

	 	Note shall not
			 be entitled to any benefit under the within-mentioned Indenture or be valid or
			 obligatory for any purpose.

	 
		2
	 

	 

	 
	 

	 

	 	                IN
			 WITNESS WHEREOF, the Company has caused this instrument to be duly
			 executed
	 

	 	 	THE STANLEY WORKS
	      
	 	 
	 	By: ________________________________________________
	 	       Name:    
			 
	 	       Title:      
			 
	 	 

	 	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	 
	This is one of
			 the Securities of the series designated therein referred to in the
			 within-mentioned Indenture.
	 

	 	Dated:	_____________________________
	 	 

	 	 	THE BANK OF NEW YORK TRUST 

			      COMPANY, N.A.,

			      as Trustee
	    
	 	 
	 	By:  _________________________________________________
	 	         Authorized
			 Officer
	

	 
		 
	 

	 

	 
	 

	 

	 	REVERSE OF CONVERTIBLE NOTE
	 
	
			 
				                This
				Convertible Note is one of a duly authorized issue of securities of the Company
				(herein called the “Securities”), issued and to be issued in
				one or more series of Securities under an Indenture (the “Base
				Indenture”), dated as of Novermber 1, 2002, between the Company and
				The Bank of New York Trust Company, N.A., as successor trustee (the
				“Trustee”) to JPMorgan Chase Bank, N.A., as supplemented by
				the Supplemental Indenture No.1, dated as of March 20, 2007, between the
				Company and the Trustee (the “Supplemental Indenture No.1”
				and, together with the Base Indenture so supplemented, the
				“Indenture”), to which Indenture reference is hereby made for
				a statement of the respective rights, limitations of rights, duties and
				immunities thereunder of the Company, the Trustee and the Holders of the
				Convertible Notes and of the terms upon which the Convertible Notes are, and
				are to be, authenticated and delivered. This Convertible Note is one of the
				series designated on the face hereof.
			 

		  
	 
	                All
			 terms used in this Convertible Note that are defined in the Indenture shall
			 have the meaning assigned to them in the Indenture.
	 
	
			 
				                If
				an Event of Default (other than an Event of Default specified in Section 6.02
				of the Supplemental Indenture No.1 or clauses (7) or (8) of Section 5.1 of the
				Base Indenture) occurs and is continuing, the principal of, premium, if any,
				and accrued and unpaid interest on all Convertible Notes may be declared to be
				due and payable by either the Trustee or the Holders of at least 25% in
				aggregate principal amount of the Convertible Notes then outstanding, and, upon
				said declaration the same shall be immediately due and payable. If an Event of
				Default specified in Section 6.02 of the Supplemental Indenture No. 1 occurs,
				for the first 120 days after the occurrence of such an Event of Default, the
				sole remedy for such an Event of Default shall consist exclusively of a
				Holder’s right to receive an extension fee on the Convertible Notes in an
				amount equal to 0.25% of the principal amount of the Convertible Notes. On the
				120th day after such Event of Default (if the Event of Default relating to the
				reporting obligations is not cured or waived prior to such 120th day), the
				principal of, premium, if any, and accrued and unpaid interest on all
				Convertible Notes may be declared to be due and payable by either the Trustee
				or the Holders of at least 25% in aggregate principal amount of the Convertible
				Notes then outstanding, and, upon said declaration the same shall be
				immediately due and payable. If an Event of Default specified in clauses (7) or
				(8) of Section 5.1 of the Base Indenture occurs and is continuing, then the
				principal of and premium, if any, and interest accrued and unpaid on all the
				Convertible Notes shall be immediately due and payable without any declaration
				or other action on the part of the Trustee or any Holder of Convertible
				Notes.
			 

		  
	 
	
			 
				                The
				Indenture contains provisions permitting the Company and the Trustee, with the
				consent of the Holders of not less than a majority in aggregate 
			 

		  

	 
		 
	 

	 

	 
	 

	 

	 	principal
			 amount of the Convertible Notes at the time outstanding, to execute
			 supplemental indentures adding any provisions to or changing in any manner or
			 eliminating any of the provisions of the Indenture or of any supplemental
			 indenture or modifying in any manner the rights of the Holders of the
			 Convertible Notes, subject to exceptions set forth in Section 9.2 of the Base
			 Indenture. Subject to the provisions of the Indenture, the Holders of not less
			 than a majority in aggregate principal amount of the Convertible Notes at the
			 time outstanding may, on behalf of the Holders of all of the Convertible Notes,
			 waive certain past defaults or Events of Default.
	 
	
			 
				              No
				reference herein to the Indenture and no provision of this Convertible Note or
				of the Indenture shall impair, as among the Company and the Holder of the
				Convertible Notes, the obligation of the Company, which is absolute and
				unconditional, to pay the principal of, premium, if any, on and interest on
				this Convertible Note at the place, at the respective times, at the rate and in
				the coin or currency herein and in the Indenture prescribed.
			 

		  
	 
	                Interest
			 on the Convertible Notes shall be computed on the basis of the actual number of
			 days elapsed in the Interest Period divided by 360.
	 
	
			 
				                The
				Convertible Notes are issuable in fully-registered form, without coupons, in
				minimum denominations of $1,000 principal amount and in integral multiples of
				$1,000 in excess thereof. At the office or agency of the Company referred to on
				the face hereof, and in the manner and subject to the limitations provided in
				the Indenture, without payment of any service charge but with payment of a sum
				sufficient to cover any tax, assessment or other governmental charge that may
				be imposed in connection with any registration or exchange of Convertible
				Notes, Convertible Notes may be exchanged for a like aggregate principal amount
				of Convertible Notes of any other authorized denominations.
			 

		  
	 
	                The
			 Convertible Notes are not subject to redemption.
	 
	
			 
				                Upon
				the occurrence of a Fundamental Change, Holders of Convertible Notes shall have
				the right to require the Company to repurchase all or a portion of their
				Convertible Notes pursuant to Section 3.01 of the Supplemental Indenture
				No.1.
			 

		  
	 
	
			 
				                Subject
				to and in compliance with the provisions of the Indenture, the Holder hereof
				shall have the right to exchange each $1,000 principal amount of this
				Convertible Note into cash and, if applicable, shares of Common Stock as
				provided in Article 7 of the Supplemental Indenture No.1.
			 

		  
	 
	                In
			 the event the Holder surrenders this Convertible Note for conversion in
			 connection with a Cash Merger, the Company will increase the
			 Applicable

	 
		3
	 

	 

	 
	 

	 

	 	Conversion Rate
			 by the Additional Cash Merger Shares as and when provided in the Supplemental
			 Indenture No.1.
	 
	
			 
				                No
				recourse for the payment of the principal of (including the Repurchase Price
				upon repurchase pursuant to Article 3 of the Supplemental Indenture No.1) or
				any premium, if any, or interest on this Convertible Note, or for any claim
				based hereon or otherwise in respect hereof, and no recourse under or upon any
				obligation, covenant or agreement of the Company in the Indenture (including
				the Supplemental Indenture No.1) or any supplemental indenture or in this
				Convertible Note, or because of the creation of any indebtedness represented
				thereby, shall be had against any incorporator, shareholder, partner, member,
				manager, employee, agent, officer, director or subsidiary, as such, past,
				present or future, of the Company, the Company or any of the Company’s
				Subsidiaries or of any successor thereto, either directly or through the
				Company, the Company or any of the Company’s Subsidiaries or of any
				successor thereto, whether by virtue of any constitution, statute or rule of
				law, or by the enforcement of any assessment or penalty or otherwise; it being
				expressly understood that all such liability is hereby expressly waived and
				released as a condition of, and as consideration for, the execution of the
				Supplemental Indenture No.1 and the issue of this Convertible Note.
			 

		  
	 
	
			 
				         
				       Pursuant to Section 8.04 of the
				Supplemental Indenture No.1, if there has not been a Successful Remarketing
				prior to the end of the second Remarketing Date, Holders of Convertible Notes
				will have the right (the “Put Right”) to require the Company
				to purchase such Convertible Notes on the Purchase Contract Settlement Date, in
				the case of Separate Convertible Notes upon a notice to the Trustee on or prior
				to the second Business Day prior to the Purchase Contract Settlement Date, at a
				price per Convertible Note to be purchased equal to the principal amount of the
				Convertible Note (the “Put Price”).
			 

		  
	 
	
			 
				        
				        The Company agrees, and by
				acceptance of a Corporate Unit or a Separate Convertible Note, each holder of a
				Convertible Note and each holder of a Separate Convertible Note will be deemed
				to have agreed (1) for United States federal, state and local income and
				franchise tax purposes to treat the acquisition of a Corporate Unit as the
				acquisition of a Convertible Note and the Purchase Contract constituting the
				Corporate Unit and (2) to treat the Convertible Note or Separate Convertible
				Note, as the case may be, as indebtedness for United States federal, state and
				local income and franchise tax purposes.
			 

		  
	 
	
			 
				          
				      THIS SECURITY SHALL BE GOVERNED BY, AND
				CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING
				EFFECT TO THE CONFLICTS OF LAW PROVISIONS THEREOF TO THE EXTENT A DIFFERENT LAW
				WOULD GOVERN AS A RESULT.
			 

		  

	 
		4
	 

	 

	 
	 

	 

	 	ABBREVIATIONS
	 
	
			 
				          
				      The following abbreviations, when used in
				the inscription of the face of this Convertible Note, shall be construed as
				though they were written out in full according to applicable laws or
				regulations.
			 

		  
	 

	 	TEN—COM	 	as tenants in common	 	UNIF GIFT MIN ACT —___ Custodian
			 ___
	 	 	 	 	 
	TEN—ENT	 	as
			 tenant by the entireties	 	(Cust) (Minor)
	 	 	 
	JT—TEN	 	as joint tenants with right of
			 survivorship and not under Uniform Gifts to Minors Act
	 	 	 	 	 
	 	 	as
			 tenants in common	 	__________________________________________________
	 	 	 	 	(State)
	 	 	 	 	 
	      
			           Additional abbreviations may also
			 be used though not in the above list.

	 
		5
	 

	 

	 
	 

	 

	 	CONVERSION NOTICE
	 
	TO:          THE
			 STANLEY WORKS
	            
			     The Bank of New York Trust Company, N.A., as
			 Trustee
	 
	
			 
				           
				     The undersigned registered owner of this
				Convertible Note hereby irrevocably exercises the option to convert this
				Convertible Note, or the portion thereof (which is $1,000 or a multiple
				thereof) below designated, into cash and, if applicable, shares of Common
				Stock, in accordance with the terms of the Supplemental Indenture No.1 referred
				to in this Convertible Note, and directs that the shares of Common Stock, if
				any, issuable and deliverable upon such conversion, together with any check in
				payment for cash, if any, payable upon conversion or for fractional shares and
				any Convertible Notes representing any unconverted principal amount hereof, be
				issued and delivered to the registered holder hereof unless a different name
				has been indicated below. Capitalized terms used herein but not defined shall
				have the meanings ascribed to such terms in the Indenture (including the
				Supplemental Indenture No.1). If shares or any portion of this Convertible Note
				not converted are to be issued in the name of a person other than the
				undersigned, the undersigned will provide the appropriate information below and
				pay all transfer taxes payable with respect thereto. Any amount required to be
				paid by the undersigned on account of interest accompanies this Convertible
				Note.
			 

		  
	 
	Dated:
			 __________________________
	 

	 	 	________________________________________________________
	 	 
	 	________________________________________________________
	 	Signature(s)
	 	 
	 	Signature(s)
			 must be guaranteed by an “eligible guarantor institution”
			 meeting the requirements of the Note Registrar, which requirements include
			 membership or participation in the Security Transfer Agent Medallion Program
			 (“STAMP”) or such other “signature guarantee
			 program” as may be determined by the Note Registrar in addition to, or
			 in substitution for, STAMP, all in accordance with the Securities Exchange Act
			 of 1934, as amended.
	 	 
	 	________________________________________________________
	 	Signature
			 Guarantee

	 
		6
	 

	 

	 
	 

	 

	 	
			 
				          
				      Fill in the registration of shares of
				Common Stock, if any, if to be issued, and Convertible Notes if to be
				delivered, and the person to whom cash and payment for fractional shares is to
				be made, if to be made, other than to and in the name of the registered
				holder:
			 

		  
	 
	Please print
			 name and address
	 
	______________________________________________________
	(Name)
	 
	______________________________________________________
	(Street
			 Address)
	 
	______________________________________________________
	(City, State
			 and Zip Code)
	 
	
			 
				Principal
				amount to be converted
 (if less than all):
			 

		  
	 
	$_____________________________________________________
	 
	
			 
				Social Security
				or Other Taxpayer
 Identification Number:
			 

		  
	 
	______________________________________________________
	 
	
			 
				NOTICE: The
				signature on this Conversion Notice must correspond with the name as written
				upon the face of the Convertible Note in every particular without alteration or
				enlargement or any change whatever.
			 

		  

	 
		7
	 

	 

	 
	 

	 

	 	REPURCHASE NOTICE
	 
	TO:          THE
			 STANLEY WORKS
	          
			       The Bank of New York Trust Company, N.A.,
			 as Trustee
	 
	
			 
				          
				      The undersigned registered owner of this
				Convertible Note hereby irrevocably acknowledges receipt of a notice from The
				Stanley Works (the “Company”) regarding the right of Holders
				to elect to require the Company to repurchase the Convertible Notes and
				requests and instructs the Company to repay the entire principal amount of this
				Convertible Note, or the portion thereof (which is $1,000 or an integral
				multiple thereof) below designated, in cash, in accordance with the terms of
				the Indenture (including the Supplemental Indenture No.1) at the price of 100%
				of such entire principal amount or portion thereof, together with accrued and
				unpaid interest to, but excluding, the Fundamental Change Repurchase Date, as
				the case may be, to the registered holder hereof. Capitalized terms used herein
				but not defined shall have the meanings ascribed to such terms in the
				Indenture. The Convertible Notes shall be repurchased by the Company as of the
				Fundamental Change Repurchase Date, as the case may be, pursuant to the terms
				and conditions specified in the Indenture.
			 

		  
	 
	
			 
				         
				       NOTICE: The signatures of the
				Holder(s) hereof must correspond with the name as written upon the face of the
				Convertible Note in every particular without alteration or enlargement or any
				change whatever. Convertible Note Certificate Number (if applicable):
				____________________________
			 

		  
	 
	          
			       Principal amount to be repurchased (if less
			 than all, must be $1,000 or whole multiples thereof):
			 ______________________
	 
	Social Security
			 or Other Taxpayer Identification Number: ________________
	 

	 	Dated: _____________________________	 
	 	 
	 	________________________________________________________
	 	 
	 	________________________________________________________
	 	Signature(s)
	 	 
	 	Signature(s)
			 must be guaranteed by an “eligible guarantor institution”
			 meeting the requirements of the Note Registrar, which requirements include
			 membership or participation in the Security Transfer Agent Medallion Program
			 (“STAMP”) or such other “signature guarantee
			 program” as may be determined by the Note Registrar in addition to, or
			 in substitution for, STAMP, 

	 
		8
	 

	 

	 
	 

	 

	 	 	all in
			 accordance with the Securities Exchange Act of 1934, as amended.
	 	 
	 	________________________________________________________
	 	Signature
			 Guarantee

	 
		9
	 

	 

	 
	 

	 

	 	ASSIGNMENT
	 
	          
			       FOR VALUE RECEIVED, the
			 undersigned assigns and transfers this Security to:
	 
	 
	 
	 
	 
	(Insert
			 assignee’s social security or tax identification number)
	 
	 
	 
	 
	 
	(Insert address
			 and zip code of assignee)
	 
	and irrevocably
			 appoints
	 
	 
	 
	 

	 	 
	agent to
			 transfer this Security on the books of the Company. The agent may substitute
			 another to act for him or her.
	 

	 	Date: __________________________________	 
	 	 
	 	Signature:
		 
		 	 
		 	 
	 	Signature Guarantee:	 

	 	 
	(Sign exactly
			 as your name appears on the other side of this Security)

	 
		10
	 

	 

	 
	 

	 

	 	ASSIGNMENT
	 
	
			 
				          
				      For value received
				________________________________________ hereby sell(s) assign(s) and
				transfer(s) unto ___________________________________ (Please insert social
				security or other Taxpayer Identification Number of assignee) ___________
				shares of Common Stock, and hereby irrevocably constitutes and appoints
				______________________________________ attorney to transfer said shares of
				Common Stock on the books of the Company, with full power of substitution in
				the premises.
			 

		  
	 
	Date: __________________________________
	 

	 	 	Signature:
		 
		 	 
		 	 
	 	Signature Guarantee:	 

	 	 
	(Sign exactly
			 as your name appears on the other side of this Security)

	 
		11
	 

	 

	 
	 

	 

	 	SIGNATURE GUARANTEE
	 
	
			 
				Signatures must
				be guaranteed by an “eligible guarantor institution” meeting the
				requirements of the Securities Registrar, which requirements include membership
				or participation in the Security Transfer Agent Medallion Program
				(“STAMP”) or such other “signature guarantee program” as
				may be determined by the Note Registrar in addition to, or in substitution for,
				STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
				ASSIGNMENT
			 

		  

	 
		12
	 

	 

	 
	 

	 

	 	SCHEDULE OF INCREASES OR DECREASES IN CONVERTIBLE NOTE
	 
	The initial
			 principal amount of this Convertible Note is $330,000,000. The following
			 increases or decreases in a part of this Convertible Note have been
			 made:
	 

	 	Date	 	Amount of
 decrease in 

			 principal 
 amount of this
 Convertible Note	 	Amount of
 increase in

			 principal
 amount of this
 Convertible Note	 	Principal
 amount of
			 this
 Convertible Note
 following such
 decrease
 or
			 increase	 	Signature of 
 authorized
			 
 officer of 
 Trustee

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