Document:

SNAP-ON INCORPORATED 

OFFICERS’
CERTIFICATE PURSUANT TO SECTION 3.01 OF THE INDENTURE 

August 14, 2009 

        Pursuant
to Section 3.01 of the Indenture dated as of January 8, 2007 (the
“Indenture”), between Snap-on Incorporated (the
“Company”) and U.S. Bank National Association, as trustee, the
undersigned on behalf of the Company and in our respective capacities indicated below,
hereby certify that we have examined resolutions duly adopted at a meeting of the
Board of Directors of the Company on August 6, 2009. Acting pursuant thereto, the
undersigned hereby establish a series of Debt Securities (the “Notes”) by
means of this Officers’ Certificate, in accordance with the provisions of Section
3.01 of the Indenture: 

	 	1. 	The
title of the new series of Debt Securities shall be 6.125% Notes due 2021.           U.S.
Bank National Association shall be the trustee with respect to the Notes. 

	 	2. 	The
aggregate principal amount of the Notes that may be authenticated and           delivered
under the Indenture (except for Notes authenticated and delivered upon
          registration of transfer of, or in exchange for, or in lieu of, other Notes
          pursuant to Article 3, the second paragraph of Section 4.03, or Section 11.04,
          of the Indenture) is initially $250,000,000; provided, however,
          that the Company shall have the right to “reopen” this series of Debt
          Securities and to issue additional 6.125% Notes due 2021, which shall be part
of           the same series as the Notes initially issued. 

	 	3. 	Principal
on the Notes shall be payable on September 1, 2021. 

	 	4. 	The
Notes shall bear interest at a rate of 6.125% per annum, which interest           shall
accrue from August 14, 2009 and shall be payable semiannually on March 1           and
September 1 and on the maturity date, beginning on March 1, 2010, to the
          persons in whose names the Notes are registered at the close of business on the
          preceding February 15 and August 15, respectively; provided, however,
that interest payable on the maturity date will be paid to the           person to whom
principal shall be payable. 

	 	5. 	The
principal of and premium, if any, and interest on the Notes shall initially           be
payable at the offices of U.S. Bank National Association, as paying agent.
          Payments of interest on the Notes will be made by wire transfer of immediately
          available funds. Principal of and premium, if any, and interest on the Notes
          payable at Stated Maturity or other maturity date in respect of the Notes will
          be paid in immediately available funds upon surrender of the Notes at the
office           of the Company’s paying agent. 

	 	6. 	The
Notes will be redeemable prior to maturity as described in the form of Note
          attached hereto as Exhibit A. 

	 	7. 	The
Company shall have no obligation to redeem or purchase the Notes pursuant to
          any sinking fund or analogous provision. 

	 	8. 	The
denominations in which the Notes shall be issuable shall be U.S.$1,000 and
          integral multiples of U.S.$1,000 in excess thereof. 

	 	9. 	Section
13.02 of the Indenture shall apply to the Notes. 

	 	10. 	Payments
of principal of and premium, if any, and interest on the Notes shall be           payable
in United States dollars. 

	 	11. 	The
Notes shall be issued in the form of fully registered Global Securities in           the
form attached hereto as Exhibit A, which will be deposited with, or           on
behalf of, The Depository Trust Company, New York, New York (the           “Depository”)
and registered in the name of the           Depository’s nominee, Cede & Co.
Principal of and premium, if any, and           interest payments on the Notes will be
made to the Depository or its nominee. 

        Capitalized
terms used herein which are defined in the Indenture are used herein as so defined. 

[Signature Page
Follows] 

2 

        IN
WITNESS WHEREOF, the undersigned have executed this Officers’ Certificate as of the
date first set forth above. 

		SNAP-ON INCORPORATED
	

 	By:  /s/ Martin M. Ellen
		Name:   Martin M. Ellen
		Title:     Senior Vice President - Finance and Chief
		              Financial Officer
	

 	By:  /s/ Irwin M. Shur
		Name:   Irwin M. Shur
		Title:     Vice President, General Counsel and Secretary

[SIGNATURE PAGE TO OFFICERS’ CERTIFICATE
PURSUANT TO SECTION 3.01
OF THE INDENTURE] 

EXHIBIT A 

FORM OF NOTES 

[See attached] 

        Unless
this certificate is presented by an authorized representative of the Depository to the
Company or its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of the nominee of the Depository or in such
other name as is requested by an authorized representative of the Depository (and any
payment is made to the nominee of the Depository or to such other entity as is requested
by an authorized representative of the Depository), ANY TRANSFER, PLEDGE, OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered
owner hereof, the nominee of the Depository, has an interest herein. 

	REGISTERED	REGISTERED

SNAP-ON INCORPORATED 

6.125% NOTE DUE 2021 

CUSIP 833034 AH4 

	No. R-4	US$250,000,000

        SNAP-ON
INCORPORATED, a corporation duly organized and existing under the laws of the State of
Delaware (the “Company,” which term includes any successor Person under
the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede
& Co., or registered assignees, the principal sum of TWO HUNDRED FIFTY MILLION
DOLLARS ($250,000,000) on September 1, 2021 (the “Stated Maturity
Date”), and to pay interest thereon from August 14, 2009, or from the most recent
Interest Payment Date (as defined below) to which interest has been paid or duly provided
for, semi-annually on March 1 and September 1 of each year and at maturity
(each, an “Interest Payment Date”), commencing on March 1, 2010 (in
each case excluding the Interest Payment Date), at the rate of 6.125% per annum, until the
principal hereof becomes due and payable, and at such rate on any overdue principal and
(to the extent that the payment of such interest shall be legally enforceable) on any
overdue installment of interest. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to
the Person in whose name this 6.125% Note Due 2021 (this “Note,” and
all of the Notes collectively referred to herein as the “Notes”) (or one
or more Predecessor Debt Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be the February 15 or August 15
(whether or not a Business Day), as the case may be, next preceding such Interest Payment
Date; provided, however, that interest payable on the Interest Payment Date
occurring at maturity will be paid to the person to whom principal shall be payable. Any
such interest not punctually paid or duly provided for on any Interest Payment Date shall
forthwith cease to be payable to the registered Holder on such Regular Record Date by
virtue of his having been such Holder, and may either be paid to the Person in whose name
this Note (or one or more Predecessor Debt Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to Holders of Notes not less than 10 days
prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Notes may be
listed, and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture. If any Interest Payment Date, any Redemption Date (as defined
below) or the Stated Maturity Date or other maturity date in respect of the Notes falls on
a day that is not a Business Day, then the payment to be made on such date will be made on
the next Business Day without additional interest and with the same effect as if it were
made on the originally scheduled date. 

        Payments
of interest will be made by wire transfer of immediately available funds. Principal and
premium, if any, and interest payable at Stated Maturity or other maturity date in respect
of the Notes will be paid in immediately available funds upon surrender of the Notes at
the office of a paying agent in The City of New York, New York or at such other office or
agency as the Company may designate. 

        Unless
the certificate of authentication herein has been duly executed by the Trustee referred to
herein by manual signature, this Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose. 

        This
Note is one of a duly authorized issue of securities of the Company (the “Debt
Securities”), issued or to be issued in one or more series under an indenture,
dated as of January 8, 2007 (the “Indenture”), between the Company and
U.S. Bank National Association, as trustee (the “Trustee,” which term
includes any successor Trustee under the Indenture), to which Indenture and all indentures
supplemental thereto 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 Debt Securities and of the terms upon which the Debt Securities are,
and are to be, authenticated and delivered. This Note is one of the series of 6.125% Notes
due 2021 initially limited in aggregate principal amount to $250,000,000, except that the
Company may, without the consent of the Holders, “reopen” the series and issue
additional notes that have the same ranking, interest rate, Stated Maturity Date and other
terms as this Note. 

        All
or a portion of the Notes may be redeemed by the Company at any time or from time to time.
The price payable for the Notes to be redeemed (the “Redemption Price”)
on the date of redemption (each, a “Redemption Date”) will be equal to
the greater of (i) 100% of the principal amount of the Notes being redeemed on the
Redemption Date and (ii) the sum of the present values of the remaining scheduled
payments of principal and interest on the Notes being redeemed on that Redemption Date
(not including any portion of any payments of interest accrued to the Redemption Date),
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 37.5
basis points, plus in either of case (i) or (ii) above, accrued and unpaid interest on the
Notes being redeemed to the Redemption Date. The principal amount of the Notes called for
redemption shall become due on the Redemption Date. Holders of Notes to be redeemed will
receive notice thereof, as provided in the Indenture, by first-class mail at least 30 and
not more than 60 days prior to the Redemption Date. If fewer than all of the Notes that
are not represented by a Global Debt Security are (or if less than all of the principal
amount of Notes represented by a Global Debt Security is) to be redeemed, the Trustee will
select, not more than 60 days prior to the Redemption Date, the particular Notes or
portions thereof for redemption from the outstanding Notes not previously called by such
method as the Trustee deems fair and appropriate. 

        Notwithstanding
the foregoing, installments of interest payable on the principal amount of Notes being
redeemed that are due and payable on an Interest Payment Date falling on a Redemption Date
shall be payable on the Interest Payment Date to the registered Holders as of the close of
business on the relevant Regular Record Date according to this Note and the Indenture. 

        For
purposes of determining the Redemption Price, the following definitions are applicable: 

	 	        “Treasury
Rate” means, with respect to any Redemption Date, the rate per annum equal to
the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a
price for the Comparable Treasury Issue (expressed as a percentage of its principal
amount) equal to the Comparable Treasury Price for such Redemption Date.  

	 	        “Comparable
Treasury Issue” means the U.S. Treasury security selected by the Reference
Treasury Dealer as having a maturity comparable to the remaining term of the Notes to be
redeemed that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of such Notes.  

2 

	 	        “Comparable
Treasury Price” means, with respect to any Redemption Date, (A) the average
of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the
highest and lowest such Reference Treasury Dealer Quotations, (B) if the Trustee
obtains fewer than three (3) such Reference Treasury Dealer Quotations, the average of
all such Quotations, or (C) if only one Reference Treasury Dealer Quotation is
received, such Quotation.  

	 	        “Reference
Treasury Dealer” means (A) each of Citigroup Global Markets Inc., J.P.
Morgan Securities Inc., Mizuho Securities USA Inc. and UBS Securities LLC (or their
respective affiliates which are Primary Treasury Dealers (as defined below)) and their
respective successors, provided, however, that if any of the foregoing
shall cease to be a primary U.S. Government securities dealer in the United States (a
“Primary Treasury Dealer”), the Company will substitute therefor another
Primary Treasury Dealer, and (B) any other Primary Treasury Dealer(s) selected by
the Company.  

	 	        “Reference
Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at
5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.  

        If
a Change of Control Repurchase Event (as defined below) occurs, unless the Company has
exercised the right to redeem all of the Notes as described above, the Company will make
an offer to each Holder to repurchase in cash all or any part (equal to $1,000 and any
integral multiple of $1,000 in excess thereof) of that Holder’s notes at a repurchase
price equal to 101% of the aggregate principal amount of Notes repurchased plus any
accrued and unpaid interest on the Notes repurchased to, but not including, the date of
repurchase. Within 30 days following any Change of Control Repurchase Event or, at the
Company’s option, prior to any Change of Control (as defined below), but after the
public announcement of the transaction that constitutes or may constitute the Change of
Control, the Company will mail by first-class mail a notice to each Holder, with a copy to
the Trustee, describing the transaction or transactions that constitute or may constitute
the Change of Control Repurchase Event and offering to repurchase the Notes on the payment
date specified in the notice, which date will be no earlier than 30 days and no later than
60 days from the date on which such notice is mailed or, if the notice is mailed prior to
the Change of Control, at least 30 days, but no more than 60 days, from the date on which
the Change of Control Repurchase Event occurs. The notice, if mailed prior to the date of
consummation of the Change of Control, shall state that the offer to repurchase the Notes
is conditioned on the Change of Control Repurchase Event occurring on or prior to the
payment date specified in the notice. 

        The
Company will comply with the requirements of Rule 14e-1 under the Exchange Act (as defined
below) and any other securities laws and regulations under the Exchange Act to the extent
those laws and regulations are applicable in connection with the repurchase of the Notes
as a result of a Change of Control Repurchase Event. To the extent that the provisions of
any securities laws or regulations conflict with these Change of Control Repurchase Event
provisions, the Company will comply with the applicable securities laws and regulations
and will not be deemed to have breached the Company’s obligations under these Change
of Control Repurchase Event provisions by virtue of such conflict. 

        On
the Change of Control Repurchase Event payment date, the Company will, to the extent
lawful: (1) accept for payment all Notes or portions of Notes properly tendered
pursuant to the Company’s offer; (2) deposit with the paying agent an amount
equal to the aggregate purchase price in respect of all Notes or portions of Notes
properly tendered; and (3) deliver or cause to be delivered to the Trustee the Notes
properly accepted, together with an Officers’ Certificate stating the aggregate
principal amount of Notes being repurchased by the Company. 

3 

        The
paying agent will promptly mail to each Holder of Notes properly tendered the purchase
price for the Notes, and the Trustee will promptly authenticate and mail (or cause to be
transferred by book-entry) to each Holder a new Note equal in principal amount to any
unpurchased portion of any Notes surrendered; provided that each new Note will be
in a principal amount of $1,000 or any integral multiple of $1,000 in excess thereof. 

        The
Company will not be required to make an offer to repurchase the Notes upon a Change of
Control Repurchase Event if a third party makes such an offer in the manner, at the times
and otherwise in compliance with the requirements for an offer made by the Company and
such third party repurchases all Notes properly tendered and not withdrawn under such
third party’s offer. 

        For
purposes of this Note, the following definitions are applicable: 

	 	        “Below
Investment Grade Rating Event” means the Notes are rated below Investment Grade
(as defined below) by both Rating Agencies (as defined below) on any date within the
60-day period after the earlier of (i) the occurrence of a Change of Control and (ii) the
first public notice (including, without limitation, any filing or report made in
accordance with the requirements of the Securities and Exchange Commission or any press
release or public announcement made by the Company, the “Public Notice”)
of the Company’s intention to effect a Change of Control (which 60-day period shall
be extended so long as the rating of the Notes is under publicly announced consideration
for possible downgrade by either of the Rating Agencies); providedthat a Below
Investment Grade Rating Event otherwise arising by virtue of a particular reduction in
rating shall not be deemed to have occurred in respect of a particular Change of Control
(and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the
definition of Change of Control Repurchase Event) if the Rating Agencies making the
reduction in rating to which this definition would otherwise apply do not announce or
publicly confirm or inform the Trustee in writing at the Company’s request that the
reduction was the result, in whole or in part, of any event or circumstance comprised of
or arising as a result of, or in respect of, the applicable Change of Control (whether or
not the applicable Change of Control shall have occurred at the time of the Below
Investment Grade Rating Event).  

	 	        “Change
of Control” means the occurrence of any of the following: (1) the direct or
indirect sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation or as a pledge for security purposes only), in one or a series of
related transactions, of all or substantially all of the properties and assets of the
Company and its Subsidiaries, taken as a whole, to any person, other than the Company or
one of its Subsidiaries; (2) the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that any person becomes
the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act),
directly or indirectly, of more than 50% of the Company’s then outstanding Voting
Stock (as defined below) or other Voting Stock into which the Company’s Voting Stock
is reclassified, consolidated, exchanged or changed, measured by voting power rather than
number of shares; (3) the first day upon which a majority of the members of the
Company’s Board of Directors are not Continuing Directors (as defined below); or (4) the
approval by the holders of the Company’s common stock of any plan or proposal for
the liquidation or dissolution of the Company. Notwithstanding the foregoing, a
transaction will not be deemed to involve a Change of Control if (1) the Company
becomes a direct or indirect wholly-owned subsidiary of a holding company and (2)(a) the
direct or indirect holders of the Voting Stock of such holding company immediately
following that transaction are substantially the same as the holders of the Company’s
Voting Stock immediately prior to that transaction or (b) immediately following that
transaction no person (other than a holding company satisfying the requirements of this
sentence) is the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange
Act), directly or indirectly, of more than 50% of the Voting Stock of such holding
company. The term “person,” as used in this definition, has the meaning given
thereto in Section 13(d)(3) of the Exchange Act.  

4 

	 	        “Change
of Control Repurchase Event” means the occurrence of both a Change of Control
and a Below Investment Grade Rating Event.  

	 	        “Continuing
Directors” means, as of any date of determination, each member of the Company’s
Board of Directors who (1) was a member of such Board of Directors on the date the
Notes were issued or (2) was nominated for election, elected or appointed to such
Board of Directors with the approval of a majority of the Continuing Directors who were
members of such Board of Directors at the time of such nomination, election or
appointment (either by a specific vote or by approval of the Company’s proxy
statement in which such member was named as a nominee for election as a director, without
objection to such nomination).  

	 	        “Exchange
Act” means the U.S. Securities Exchange Act of 1934, as amended.  

	 	        “Investment
Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under
any successor rating categories of Moody’s); a rating of BBB- or better by S&P
(or its equivalent under any successor rating categories of S&P); and the equivalent
investment grade credit rating from any replacement Rating Agency or Rating Agencies
selected by the Company.  

	 	        “Moody’s” means
Moody’s Investors Service, Inc., and its successors.  

	 	        “Rating
Agency” means (1) each of Moody’s and S&P; and (2) if either
of Moody’s or S&P ceases to rate the Notes or fails to make a rating of the
Notes publicly available for reasons outside of the Company’s control, a “nationally
recognized statistical rating organization” within the meaning of Rule
15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as certified by a
resolution of the Board of Directors of the Company) as a replacement agency for Moody’s
or S&P, or both, as the case may be.  

	 	        “S&P” means
Standard & Poor’s Ratings Services, a division of McGraw-Hill, Inc., and its
successors.  

	 	        “Voting
Stock” means, with respect to any specified “person” (as that term is
used in Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of such
person that is at the time entitled to vote generally in the election of the Board of
Directors of such person.  

        The
Company shall have no obligation to redeem or purchase the Notes pursuant to any sinking
fund or analogous provision. 

        If
an Event of Default with respect to the Notes shall have occurred and be continuing, the
principal of all the Notes may be declared, or shall become, due and payable in the manner
and with the effect provided in the Indenture. 

        With
the consent of the Holders of greater than 50% in aggregate principal amount of the
Outstanding Notes, the Company, when authorized by a Board Resolution, and the Trustee may
enter into an indenture or indentures supplemental to the Indenture for the purpose of
adding any provisions to or changing in any manner or eliminating any of the provisions of
the Indenture or of any indentures supplemental thereto or of modifying in any manner the
rights of the Holders of the Notes; provided, however, that no such
supplemental indenture shall (a) without the consent of each Holder of each
Outstanding Note affected thereby, extend the fixed maturity of the Notes, or reduce the
rate or extend the time of payment of interest thereon, or reduce the principal amount
thereof or any premium thereon, or make the principal thereof or interest or premium
thereon payable in any coin or currency other than that provided herein, or
(b) without the consent of the Holders of all of the Outstanding Notes affected,
reduce the percentage of Notes, the Holders of which are required to consent (i) to
any such supplemental indenture, (ii) to rescind and annul a declaration that the
Notes are due and payable as a result of the occurrence of an Event of Default,
(iii) to waive any past default under the Indenture and its consequences and
(iv) to waive compliance with certain other provisions contained in the Indenture. 

5 

        The
Company and the Trustee may also enter into an indenture or indentures supplemental to the
Indenture without the consent of the Holders for limited purposes specified in the
Indenture. 

        The
Holders of a majority in aggregate principal amount of the Outstanding Notes may on behalf
of the Holders of all the Notes waive any past default or Event of Default under the
Indenture and its consequences except a default in the payment of principal of or premium,
if any, or interest on the Notes. 

        Holders
of Notes may not enforce their rights pursuant to the Indenture or the Notes except as
provided in the Indenture. No reference herein to the Indenture and no provision of this
Note or of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of (and premium, if any) and interest on
this Note at the times, place and rate, and in the coin or currency, herein prescribed. 

        The
Notes are issuable in registered form without coupons in denominations of U.S.$1,000 and
any integral multiple of U.S.$1,000 in excess thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Notes are exchangeable for a like
aggregate principal amount of Notes that are of other authorized denominations. 

        Notes
to be exchanged shall be surrendered at any office or agency maintained by the Company for
such purpose, and the Company shall execute and the Trustee shall authenticate and deliver
in exchange therefor the Notes which the Holder making the exchange shall be entitled to
receive. Upon due presentment for registration of transfer of any Note at any such office
or agency, the Company shall execute and register and the Trustee shall authenticate and
deliver in the name of the transferee or transferees a new Note for an equal aggregate
principal amount. Registration or registration of transfer of any Note by the Debt
Security Registrar (initially, U.S. Bank National Association) in the registry books
maintained by such Debt Security Registrar in The City of New York, New York, and delivery
of such Note, duly authenticated, shall be deemed to complete the registration or
registration of transfer of such Note. 

        No
service charge shall be made for any exchange or registration of transfer, but the Company
may require payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection therewith. Prior to due presentment of a Note for
registration of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the person in whose name a Note is registered as the owner for all
purposes whether or not such Note be overdue and neither the Company, the Trustee nor any
such agent shall be affected by notice to the contrary. 

        Certain
of the Company’s obligations under the Indenture with respect to the Notes may be
terminated if the Company irrevocably deposits with the Trustee money or eligible
instruments sufficient to pay and discharge the entire indebtedness on all of the Notes,
as described in the Indenture. 

        This
Note is in the form of a Global Security as provided in the Indenture. If at any time the
Depository notifies the Company that it is unwilling or unable to continue as Depository
for this Note or if at any time the Depository for the Notes shall no longer be eligible
or in good standing under the Exchange Act, or other applicable statute or regulation, the
Company shall appoint a successor Depository with respect to this Note. If a successor
Depository for this Note is not appointed by the Company within 90 days after the Company
receives notice or becomes aware of such ineligibility, the Company will issue Notes in
definitive form in exchange for the Global Security representing Notes in an aggregate
principal amount equal to the principal amount of this Note in exchange for this Note. 

6 

        No
recourse under or upon any obligation, covenant or agreement of the Indenture, any
supplemental indenture, or of any Note, or for any claim based thereon or hereon, or
otherwise in respect thereof or hereof, as the case may be, shall be had against any
incorporator, organizer, member, owner, manager, employee, stockholder, officer or
director, as such, past, present or future, of the Company or any Subsidiary or of any
predecessor or successor Person, either directly or through the Company, whether by virtue
of any constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise, all such liabilities being, by the acceptance hereof and as part of
the consideration for the issue hereof, expressly waived and released. 

        The
Notes are subject to defeasance, at the option of the Company, as provided in the
Indenture. 

        All
terms used in this Note which are not defined herein, but which are defined in the
Indenture shall have the meanings assigned to them in the Indenture. 

[Remainder of Page
Intentionally Left Blank] 

7 

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

	Dated:  August 14, 2009	SNAP-ON INCORPORATED
	

 	By:  /s/ Martin M. Ellen
		Name:   Martin M. Ellen
		Title:     Senior Vice President - Finance and 
		              Chief Financial Officer
		

Attest:
	
 	By:  /s/ Irwin M. Shur
		Name:   Irwin M. Shur
		Title:     Vice President, General Counsel and Secretary

[SIGNATURE PAGE TO NOTE] 

CERTIFICATE OF
AUTHENTICATION 

        This
is one of the Debt Securities of the series designated herein issued under the
within-mentioned Indenture. 

U.S.          BANK NATIONAL
ASSOCIATION, a national banking association, as Trustee  

	By:  	/s/ Yvonne Siira
      
Authorized Officer

[SIGNATURE PAGE TO NOTE] 

ABBREVIATIONS 

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

	 	
TEN
COM — as tenants in common 
TEN ENT — as tenants by the entireties  
JT TEN — as
joint tenants with right of survivorship and not as tenants in common  

	 	
UNIF
GIFT MIN ACT — Uniform Gifts to Minors Act 
CUST — Custodian  

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

        FOR
VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 

PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE 

PLEASE PRINT OR TYPEWRITE NAME AND
ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE 

the within Security and all rights
thereunder, hereby irrevocably constituting and appointing _________________________
attorney to transfer said Security on the books of the Company, with full power of
substitution in the premises. 

	Dated:__________________	____________________________
		         Signature

NOTICE: THE SIGNATURE TO THIS
ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE WITHIN INSTRUMENT
IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.Exhibit 4.1

 

AMENDED AND RESTATED COMMUNICATION SYSTEMS, INC.

 

1990 EMPLOYEE STOCK PURCHASE PLAN

 

As Amended through December 30, 2008

 

          1.         Establishment of Plan.  Communications Systems, Inc. (hereinafter referred to as the “Company”) proposes to grant to certain employees of the Company the opportunity to purchase common stock of the Company.  Such common stock shall be purchased pursuant to the plan herein set forth which shall be known as the “COMMUNICATIONS SYSTEMS, INC. 1990 EMPLOYEE STOCK PURCHASE PLAN” (hereinafter referred to as the “Plan”).  The Company intends that the Plan shall qualify as an “Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1954, as amended, and shall be construed in a manner consistent with the requirements of said Section 423 and the regulations thereunder.  

 

          2.         Purpose.  The Plan is intended to encourage stock ownership by all employees of the Company, and as an incentive to them to remain in employment, improve operations, increase profits, and contribute more significantly to the Company’s success.

 

          3.         Administration.  The Plan shall be administered by a stock purchase committee (hereinafter referred to as the “Committee”) consisting of not less than three directors or employees of the Company, as designated by the Board of Directors of the Company (hereinafter referred to as the “Board of Directors”).  The Board of Directors shall fill all vacancies in the Committee and may remove any member of the Committee at any time, with or without cause.  The Committee shall select its own chairman and hold its meetings at such times and places as it may determine.  All determinations of the Committee shall be made by a majority of its members.  Any decision which is made in writing and signed by a majority of the
members of the Committee shall be effective as fully as though made by a majority vote at a meeting duly called and held.  The determinations of the Committee shall be made in accordance with its judgment as to the best interests of the Company, its employees and its shareholders and in accordance with the purposes of the Plan; provided, however, that the provisions of the Plan shall be construed in a manner consistent with the requirements of Section 423 of the Internal Revenue Code, as amended.  Such determinations shall be binding upon the Company and the participants in the Plan unless otherwise determined by the Board of Directors.  The Company shall pay all expenses of administering the Plan.  No member of the Board of Directors or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any option granted under it.

 

          4.         Duration and Phases of the Plan.  (a)  The Plan will commence on July 1, 1990 and will terminate when all shares authorized for issuance under Section 10 of this Plan, as it may be amended from time to time, are issued or at such earlier date as shall be determined by the Company’s Board of Directors, except that any phase commenced prior to such termination shall, if necessary, be allowed to continue beyond such termination until completion.  Notwithstanding the foregoing, this Plan shall be considered of no force or effect and any options granted shall be considered null and void unless the holders of a majority of all the issued and outstanding shares of the common stock of the Company approve the Plan within twelve
(12) months after the date of its adoption by the Board of Directors; and, further, any amendment of this Plan to increase the number of shares authorized for issuance under Section 10 of this Plan shall be considered of no force or effect and any options granted thereafter shall be considered null and void unless the holders of a majority of all the issued and outstanding shares of the common stock of the Company approve such amendment of the Plan within twelve (12) months after the date Section 10 is amended by the Board of Directors to increase the number of shares authorized for issuance.(1)

 

 

____________________________

1 Amended effective January 1, 2002.

 

 

1

          (b)       The Plan shall be carried out in one or more phases, each phase being for a period of one year or such other period of time as may be determined by the Board or Committee.(2).  No phase shall run concurrently, but a phase may commence immediately after the termination of the preceding phase.  The existence and date of commencement of a phase (the “Commencement Date”) shall be determined by the Committee, provided that the commencement of the first phase shall be within twelve (12) months before or after the date of approval of the Plan by the shareholders of the Company.  In the event all of the stock reserved for grant of options hereunder is issued pursuant to the terms hereof prior to the commencement of one or more phases scheduled by the Committee or the number of
shares remaining is so small, in the opinion of the Committee, as to render administration of any succeeding phase impracticable, such phase or phases shall be cancelled.  Phases shall be numbered successively Phase 1, Phase 2, Phase 3, etc.

 

          (c)       The Board of Directors may elect to accelerate the termination date of any phase effective on the date specified by the Board of Directors in the event of (i) any consolidation or merger of the Company in which the Company is not the continuing or surviving corporation or pursuant to which shares would be converted into cash, securities or other property, other than a merger of the Company in which shareholders immediately prior to the merger have the same proportionate ownership of stock in the surviving corporation immediately after the merger; (ii) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company; or (iii) any plan of liquidation or dissolution of the Company.

 

          5.         Eligibility.  All Employees, as defined in Paragraph 19 hereof, who are employed by the Company at least one day prior to the Commencement Date of a phase shall be eligible to participate in such phase.

 

          6.         Participation.  Participation in the Plan is voluntary.  An eligible Employee may elect to participate in any phase of the Plan, and thereby become a “Participant” in the Plan, by completing the Plan payroll deduction form provided by the Company and delivering it to the Company or its designated representative prior to the Commencement Date of that phase.  Payroll deductions for a Participant shall commence on the first payday after the Commencement Date of the phase and shall terminate on the last payday immediately prior to or coinciding with the termination date of that phase unless sooner terminated by the Participant as provided in Paragraph 9 hereof.

 

          7.         Payroll Deductions.  (a) Upon enrollment, a Participant shall elect to make contributions to the Plan by payroll deductions (in full dollar amounts and in amounts calculated to be as uniform as practicable throughout the period of the phase), in the aggregate amount not in excess of 10% of such Participant’s Base Pay for the term of the phase, as determined according to Paragraph 19 hereof.

 

          The minimum authorized payroll deduction must aggregate to not less than $10 per month.

 

          (b)       In the event that the Participant’s compensation for any pay period is terminated or reduced from the compensation rate for such a period as of the Commencement Date of the phase for any reason so that the amount actually withheld on behalf of the Participant as of the termination date of the phase is less than the amount anticipated to be withheld over the phase year as determined on the Commencement Date of the phase, then the extent to which the Participant may exercise his option shall be based on the amount actually withheld on his behalf.  In the event of a change in the pay period of any Participant, such as from bi-weekly to monthly, an appropriate adjustment shall be made to the deduction in each new pay period so as to ensure the deduction of the proper amount
authorized by the Participant.

 

 

____________________________

2 Amended effective August 10, 2005

 

2

          (c)       All payroll deductions made for Participants shall be credited to their accounts under the Plan.  The Participant may not make any separate cash payments into such account.

 

          (d)       Except for his right to discontinue participation in the Plan as provided in Paragraph 9, no Participant shall be entitled to increase or decrease the amount to be deducted in a given phase after the Commencement Date.

 

	
 
 	
8.
 	
Options.
 

 

	
 
 	
(a)
 	
Grant of Option.(3)
 

 

(i)            A Participant who is employed by the Company as of the Commencement Date of a phase shall be granted an option as of such date to purchase a number of full shares of Company common stock to be determined by dividing the total amount to be credited to that Participant’s account under Paragraph 7 hereof by the option price set forth in Paragraph 8(a)(ii)(A) hereof, subject to the limitations of Paragraph 10 hereof.

 

	
 
 	
(ii)
 	
Unless otherwise determined by the Board or Committee prior to the commencement of a Phase, the option price for such shares of common stock shall be the lower of:
 

 

	
 
 	
A.
 	
Eighty-five percent (85%) of the fair market value of such shares of common stock on the Commencement Date for phases beginning prior to December 1, 2006 and ninety-five percent (95%) of the fair market of such shares of common stock on the termination date for phases beginning with a pay period that ends after January 1, 2006; or
 

 

	
 
 	
B.
 	
Eighty-five percent (85%) of the fair market value of such shares of common stock on the termination date for phases beginning prior to December 1, 2005 and ninety-five (95%) of the fair market value of such shares of common stock on the termination date for phases beginning with a pay period that ends after January 1, 2006.
 

 

(iii)         The fair market value of shares of common stock of the Company shall be determined by the Committee for each valuation date in a manner acceptable under Section 423, Internal Revenue Code of 1954.

 

	
 
 	
(iv)
 	
Anything herein to the contrary notwithstanding, no Employee shall be granted an option hereunder:
 

 

	
 
 	
A.
 	
Which permits his rights to purchase stock under all employee stock purchase plans of the Company, its subsidiaries or its parent, if any, to accrue at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) of the fair market value of such stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time;
 

 

 

____________________________

3 Amended effective August 10, 2005

 

3

	
 
 	
B.
 	
If immediately after the grant such Employee would own and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company, its parent, if any, or of any subsidiary of the Company.  For purposes of determining stock ownership under this Paragraph, the rules of Section 425(d) of the Internal Revenue Code, as amended, shall apply;
or
 

 

	
 
 	
C.
 	
Which can be exercised after the expiration of 27 months from the date the option is granted.
 

 

	
 
 	
(b)
 	
Exercise of Option.
 

 

	
 
 	
(i)
 	
Unless a Participant gives written notice to the Company pursuant to Paragraph 8(b)(ii) or Paragraph 9 prior to the termination date of a phase, his option for the purchase of shares will be exercised automatically for him as of such termination date for the purchase of the number of full shares of Company common stock which the accumulated payroll deductions in his account at that time will purchase at the applicable option price,
subject to the limitations set forth in Paragraph 10 hereof.
 

 

	
 
 	
(ii)
 	
A Participant may, by written notice to the Company at any time during the thirty (30) day period immediately preceding the termination date of a phase, elect, effective as of the termination date of that phase, to exercise his option for a specified number of full shares less than the maximum number which may be purchased under his option.
 

 

	
 
 	
(iii)
 	
As promptly as practicable after the termination date of any phase, the Company will deliver to each Participant herein the common stock purchased upon the exercise of his option, together with a cash payment equal to the balance, if any, of his account which was not used for the purchase of common stock with interest accrued thereon.
 

 

          9.         Withdrawal or Termination of Participation.  (a) A Participant may, at any time prior to the termination date of a phase, withdraw all payroll deductions then credited to his account by giving written notice to the Company.  Promptly upon receipt of such notice of withdrawal, all payroll deductions credited to the Participant’s account will be paid to him with interest accrued thereon and no further payroll deductions will be made during that phase.  In such event, the option granted the Participant under that phase of the Plan shall lapse immediately.  Partial withdrawals of payroll deductions hereunder may not be made.

 

          (b)       In the event of the death of a Participant, the person or persons specified in Paragraph 14 may give notice to the Company within sixty (60) days of the death of the Participant electing to purchase the number of full shares which the accumulated payroll deductions in the account of such deceased Participant will purchase at the option price specified in Paragraph 8(a)(ii) and have the balance in the account distributed in cash with interest accrued thereon.  If no such notice is received by the Company within said sixty (60) days, the accumulated payroll deductions will be distributed in full in cash with interest accrued thereon.

 

          (c)       Upon termination of Participant’s employment for any reason other than death of the Participant, the payroll deductions credited to his account, plus interest, shall be returned to him.

 

          10.       Stock Reserved for Options.  (a)  Five Hundred Thousand (500,000)(4) shares of the Company’s $.05 par value common stock are reserved for issuance upon the exercise of options to be granted under the Plan.  Shares subject to the unexercised portion of any lapsed or expired option may again be subject to option under the Plan.

 

 

____________________________

4 Originally 100,000 shares (adjusted for stock splits) with authorized shares increased in 1995, 1998, 2002 and 2008 (see page 8).

 

4

          (b)       If the total number of shares of Company common stock for which options are to be granted for a given phase as specified in Paragraph 8 exceeds the number of shares then remaining available under the Plan (after deduction of all shares for which options have been exercised or are then outstanding) and if the Committee does not elect to cancel such phase pursuant to Paragraph 4, the Committee shall make a pro rata allocation of the shares remaining available in as uniform and equitable a manner as it shall consider practicable.  In such event, the options to be granted and the payroll deductions to be made pursuant to the Plan which would otherwise be effected may, in the discretion of the Committee, be reduced accordingly.  The Committee shall give written notice of such reduction to
each Participant affected.

 

          (c)       The Participant (or a joint tenant named pursuant to Paragraph 10(d) hereof) shall have no rights as a shareholder with respect to any shares subject to the Participant’s option until the date of the issuance of a stock certificate evidencing such shares.  No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property), distributions or other rights for which the record date is prior to the date such stock certificate is actually issued, except as otherwise provided in Paragraph 12 hereof.

 

          (d)       The shares of Company common stock to be delivered to a Participant pursuant to the exercise of an option under the Plan will be registered in the name of the Participant or, if the Participant so directs by written notice to the Committee prior to the termination date of that phase of the Plan, in the names of the Participant and one other person the Participant may designate as his joint tenant with rights of survivorship, to the extent permitted by law.

 

          11.       Accounting and Use of Funds.  Payroll deductions for each Participant shall be credited to an account established for him under the Plan.  A Participant may not make any separate cash payments into such account.  Such account shall be solely for bookkeeping purposes and no separate fund or trust shall be established hereunder and the Company shall not be obligated to segregate such funds.  All funds from payroll deductions received or held by the Company under the Plan may be used, without limitation, for any corporate purpose by the Company.

 

          12.       Adjustment Provision.  (a)  Subject to any required action by the shareholders of the Company, the number of shares covered by each outstanding option, and the price per share thereof in each such option, shall be proportionately adjusted for any increase or decrease in the number of issued shares of the Company common stock resulting from a subdivision or consolidation of shares or the payment of a share dividend (but only on the shares) or any other increase or decrease in the number of such shares effected without receipt of consideration by the Company.

 

          (b)       In the event of a change in the shares of the Company as presently constituted, which is limited to a change of all its authorized shares with par value into the same number of shares with a different par value or without par value, the shares resulting from any such change shall be deemed to be the shares within the meaning of this Plan.

 

          13.       Non-Transferability of Options.  (a)  Options granted under any phase of the Plan shall not be transferable except under the laws of descent and distribution and shall be exercisable only by the Participant during his lifetime and after his death only by his beneficiary of the representative of his estate as provided in Paragraph 9(b) hereof.

 

          (b)       Neither payroll deductions credited to a Participant’s account, nor any rights with regard to the exercise of an option or to receive common stock under any phase of the Plan may be assigned, transferred, pledged or otherwise disposed of in any way by the Participant.  Any such attempted assignment, transfer, pledge or other disposition shall be null and void and without effect, except that the Company may, at its option, treat such act as an election to withdraw funds in accordance with Paragraph 9.

 

5

          14.       Designation of Beneficiary.  A Participant may file a written designation of a beneficiary who is to receive any cash to the Participant’s credit plus interest thereon under any phase of the Plan in the event of such Participant’s death prior to exercise of his option pursuant to Paragraph 9(b) hereof, or to exercise his option and become entitled to any stock and/or cash upon such exercise in the event of the Participant’s death prior to exercise of the option pursuant to Paragraph 9(b) hereof.  The beneficiary designation may be changed by the Participant at any time by written notice to the Company.

 

          Upon the death of a Participant and upon receipt by the Company of proof deemed adequate by it of the identity and existence at the Participant’s death of a beneficiary validly designated under the Plan, the Company shall in the event of the Participant’s death under the circumstances described in Paragraph 9(b) hereof, allow such beneficiary to exercise the Participant’s option pursuant to Paragraph 9(b) if such beneficiary is living on the termination date of the phase and deliver to such beneficiary the appropriate stock and/or cash after exercise of the option.  In the event there is no validly designated beneficiary under the Plan who is living at the time of the Participant’s death under the circumstances described in Paragraph 9(b) or in the event the option lapses, the Company shall deliver the cash
credited to the account of the Participant with interest to the executor or administrator of the estate of the Participant, or if no such executor or administrator has been appointed to the knowledge of the Company, it may, in its discretion, deliver such cash to the spouse or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.  The Company will not be responsible for or be required to give effect to the disposition of any cash or stock or the exercise of any option in accordance with any will or other testamentary disposition made by such Participant or in accordance with the provision of any law concerning intestacy, or otherwise.  No designated beneficiary shall, prior to the death of a Participant by whom he has been designated, acquire any interest in any stock or in any option or in the cash credited to the Participant under any phase of the
Plan.

 

          15.       Amendment and Termination.  The Plan may be terminated at any time by the Board of Directors provided that, except as permitted in Paragraph 4(c) with respect to an acceleration of the termination date of any phase, no such termination will take effect with respect to any options then outstanding.  Also, the Board may, from time to time, amend the Plan as it may deem proper and in the best interests of the Company or as may be necessary to comply with Section 423 of the Internal Revenue Code of 1986, as amended, or other applicable laws or regulations; provided, however, that no such amendment shall, without prior approval of the shareholders of the Company (1) increase the number of shares for which options may be granted under the Plan
(except as provided in Paragraph 12 herein), (2) permit aggregate payroll deductions in excess of ten percent (10%) of a Participant’s compensation as of the Commencement Date of a phase, or (3) impair any outstanding option.

 

          16.       Interest.  In any situation where the Plan provides for the payment of interest on a Participant’s payroll deductions, such interest shall be determined by averaging the month-end balances in the Participant’s account for the period of his participation and computing interest thereon at the rate of three percent (3%) per annum or such higher rate as shall, from time to time, be determined by the Board of Directors.(5)

 

          17.       Notices.  All notices or other communications in connection with the Plan or any phase thereof shall be in the form specified by the Committee and shall be deemed to have been duly given when received by the Participant or his designated personal representative or beneficiary or by the Company or its designated representative, as the case may be.

 

 

____________________________

5 Amended effective January 1, 2002.

 

6

          18.       Participation of Subsidiaries.  The Board of Directors may, by written resolution, authorize the employees of any of its subsidiaries to participate hereunder.  Effective as of the date of coverage of any such subsidiary, any references herein to the “Company” shall be interpreted as referring to such subsidiary as well as to Communications Systems, Inc.

 

          In the event that any subsidiary which is covered under the Plan ceases to be a subsidiary of Communications Systems, Inc., the employees of such subsidiary shall be considered to have terminated their employment for purposes of Paragraph 9 hereof as of the date such subsidiary ceases to be such a subsidiary.

 

          19.       Definitions.  (a) “Subsidiary” shall include any corporation defined as a subsidiary of the Company in Section 425(f) of the Internal Revenue Code of 1954, as amended.

 

          (b)       “Employee” shall mean any employee, including an officer, of the Company who as of the first day of the month immediately preceding the Commencement Date of a phase is customarily employed by the Company for more than fifteen (15) hours per week.

 

          (c)       “Base Pay” is the regular pay for employment for each employee as annualized for a twelve (12) month period, exclusive of overtime, commissions, bonuses, disability payments, shift differentials, incentives and other similar payments, determined as of the Commencement Date of each phase.  In determining Base Pay for any employee for a phase, the Committee or its designee is authorized to use factors that it determines relevant, including aggregate salary, wages, commissions and bonuses for the prior fiscal year or years.

 

____________________________________________________

Adopted by Board of Directors:  February 15, 1990

Approved by the shareholders May 1990

Amended May 1995 to increase authorized shares to 200,000

Amended May 1998 to increase authorized shares to 300,000

Amended May 2002 to increase authorized shares to 400,000

Amended October 27, 2004 to modify definition of “Base Pay” in Section 19(c)

Amended effective August 1, 2005 to (i) authorize the Board and Committee establish a phase for

  a period other than one year (Section 4(b)) and (ii) increase the option price to 95%

  of fair market value at the termination date (Section 8(a)(ii))

Amended December 30, 2008 to increase authorized shares to 500,000

 

 

7

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