Document:

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THE STANLEY   John M. Trani       480 Myrtle Street         Tel 860-827-3990
WORKS         Chairman and CEO    New Britain, CT 06053     Fax 860-827-3895

                                                            September 12, 2000
                                                            REVISED OFFER LETTER

Mr. Bruce H. Beatt
10 Ledyard Road
West Hartford, CT 06117

Dear Bruce:

I am pleased to confirm our offer for the position of Vice President, General
Counsel and Secretary. The position is based in New Britain, CT and reports to
me.

Your base salary will be $250,000 per year, paid monthly. You will also
participate in the Corporate Management Incentive Compensation Program with a
target annual bonus of $150,000 for 2001 and payable in February 2002. You will
be eligible for four weeks of vacation.

You will participate in our Long Term Performance Award Plan (see attached).
Payment of the plan will be made in February 2003 based on actual earnings for
the 3-year measurement period beginning January 1, 2000 and ending December 31,
2002.

On joining the company, you will also receive a grant of a 40,000 share stock
option under the terms of The Stanley Works 1997 Long-Term Incentive Plan.
Fifty-percent (50%) of this stock grant will vest in 24 months following the
grant date and 50% will vest in 48 months following the grant date. The Option
Purchase Price will be the price of the stock on the date of grant, which will
be within 60 days of your first day of work. Starting in 2001 your stock options
will be targeted at the 15,000 level annually.

You will also participate in current and future executive benefit programs
including our Financial Planning Service, Executive Life Insurance Program, and
the Executive Physical Program. The Company will also lease and insure a car for
your use. You may select any make and model up to a Fair Market Value of
$60,000. Details of the executive benefit programs are attached.

In addition, the Company's Employee Stock Purchase Program (ESPP) allows you to
purchase company stock up to 15% of your base pay annually (capped at $25,000),
at 15% below the market price. The Company's 401 k Plan will match 50% of
employee contributions up to 7% of your pay and the Company Defined Contribution
Pension Plan contributes either 3%, 5% or 9% of pay each year depending upon
your age.

If a change of control of Stanley occurs and you elect to leave the employment
of Stanley within 90 days after such change of control, you shall continue to
receive, as severance compensation, your base salary at the date of termination,
and shall be entitled to all the benefits which you would otherwise be entitled
to receive, for and during the term of twelve months following the effective
date of any such termination. If you are terminated within two years following a
change of control for reason other than misconduct or gross negligence, you will
be entitled to receive, as severance compensation, your base salary at the date
of termination and be entitled to all of the benefits which you would otherwise
be entitled to receive, for and during the term of 24 months following the
effective date of any such termination.

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Page 2

Enclosed is a copy of a Consent Order with the Federal Trade Commission
regarding "Made in USA". Please read and sign the attached and return it to the
address indicated.

You should be aware that your employment with Stanley will continue as long as
mutually acceptable, and as such is terminable by either the Company, or by
yourself, at any time and for any reason. Commencing employment is contingent
upon our Medical Department determining that you are physically suited for the
duties of the position. This includes a drug-screening test. Please contact
Claudia Mackiewicz at 860-827-3880 to make the necessary arrangements.

The Stanley Works Health Plans become effective on the first of the month
following your date of employment. They will be explained to you in detail on
your first day of employment. You can usually extend your existing medical
coverage for a limited period of time to cover any lapse between the plans.

Bruce, I am delighted that you are considering joining our team. There is a lot
of exciting work to be done and I know that you will make a great contribution
to our success. If you have any questions, please call me.

Please indicate your acceptance by signing below and return a copy to me.

Sincerely,

----------------------                               -------------------------
John Trani                                           Bruce Beatt
Chairman and CEO

cc:      Carol L'Heureux- Executive Compensation & Relocation

Enclosures:       Enhanced Relocation Program
                  Benefits Booklet
                  FTC Consent Order
                  Long Term Performance Award Plan
                  Executive Life Insurance Program
                  Financial Planning Service
                  Executive Physical Program
                  Smith Kline Testing Program
                  Stanley Choice Account
                  Executive Auto Program
                  Stanley Employment Application<PAGE>

                      TERMINATION AND SETTLEMENT AGREEMENT
                ------------------------------------------------

BY AND BETWEEN :

1.       STANLEY EUROPE BVBA, with registered office at 1930 Zaventem,
         Belgicastraat 2,

         represented by Mr. Jack Foster, Special proxyholder,

         hereinafter referred to as "the Company"

2        STANLEY ATLANTIC INC,

         represented by Mr. Jack Foster, Special proxyholder,

3        STANLEY WORKS INC., a company existing under the laws of Connecticut,
         registered office at 1000 Stanley Drive, New Britain, Connecticut, USA

         represented by Mr. Jack Foster, Special proxyholder,

         both hereinafter referred to as "Stanley"

AND

4.       MR. STEF G.H. KRANENDIJK, residing at The Netherlands, Schouwweg 75,
         2243 BK Wassenaar,

         hereinafter referred to as "the Director"

IT IS WITNESSETH :

WHEREAS the Company and the Director entered into a Director's Agreement dated
June 29, 1998, pursuant to which the Director rendered certain management
services to the Stanley group of companies in Europe, under the title "President

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                                                                               2

Stanley Europe Middle East and Africa", and formally accepted the mandate of
"zaakvoerder" of the Company, starting September 1, 1998 (the "Director's
Agreement");

WHEREAS the Company and the Director entered also into a non-competition
agreement dated June 29, 1998, pursuant to which the Director undertook not to
compete for a period of 14 months following the termination of the Director's
Agreement (the "Non-competition Agreement");

WHEREAS Stanley Atlantic Inc. co-signed both the Director's Agreement and the
Non-competition Agreement as a guarantor (bij wijze van sterkmaking) for the
Company, then still in formation;

WHEREAS Stanley Works Inc. signed, on June 29, 1998 a guarantee letter
guaranteeing the obligations of the Company towards the Director (the
"Guarantee");

WHEREAS Stanley Works Inc. and the Director entered into an agreement dated June
29, 1998, pursuant to which Stanley Works Inc. awarded certain stock options to
the Director, exercisable one year and five years after the granting thereof
("Stock-Option Agreement");

WHEREAS the Company and the Director entered into a loan agreement dated August
7, 1998, pursuant to which the Company lent an amount of BEF 7,955,000 to the
Director in connection with the Director's house purchase free of interest for a
fixed term of 10 years (the "Loan Agreement);

WHEREAS the Company and the Director signed a non-dated agreement pursuant to
which the loan under the Loan Agreement can be deemed reimbursed under certain
circumstances (Redemption Agreement);

WHEREAS the Company and the Director have agreed to terminate by mutual consent
all of their relationships and all agreements existing between them, as of the
date and under the terms and conditions set forth hereunder;

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                                                                               3

IT HAS BEEN AGREED UPON AS FOLLOWS :

ARTICLE 1 : TERMINATION OF AGREEMENTS, APPOINTMENTS AND OTHER RELATIONSHIPS

1.1.     The Company and the Director hereby confirm that they have agreed to
         terminate, upon the request of the Company, all their relationships and
         all of the agreements existing between them, in whatever capacity, in
         writing or verbal, including but not limited to the Director's
         Agreement, the Non-competition Agreement, the Stock-Option Agreement,
         the Loan Agreement, the Redemption Agreement and the Guarantee
         (hereafter the "Agreements") relating to the appointment as Director
         and the performance of other services in whatever capacity, if any,
         with effect as of September 29, 2000 (the "Effective Termination Date")
         and that neither party owes any termination indemnity to the other
         party as a result of the termination of such relationships and
         Agreements. As of the Effective Termination Date, neither party will
         have any obligations or enjoy any rights under any of the Agreements
         existing between them, with the exception of this agreement.

1.2.     The Director resigns as of the Effective Termination Date (and this
         agreement serves as the relevant resignation letter) from all of his
         corporate functions and mandates with the Company, Stanley or any
         company of the Stanley group of companies, including but not limited to
         his mandate as manager ("zaakvoerder") of the Company and undertakes to
         fully co-operate in executing all documents and accomplish all
         formalities required to that effect. Such resignations will not create
         any right to any indemnity other than as set forth in this agreement.

1.3.     At the first meeting of the shareholders of the Company, the Company
         and Stanley shall see to it (bij wijze van sterkmaking) that the
         resignation by the Director from his functions and mandates is accepted
         as of the Effective Termination Date and that at the latest during the
         first shareholders' meeting, the discharge of the Director shall be
         given.

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                                                                               4

ARTICLE 2 : COMPENSATION

2.1      The Company undertakes to pay, in the framework of this agreement and
         all as in accordance with and pursuant to the terms and conditions of
         the Director's Agreement and the Non-competition Agreement, the
         following amounts to the Director no later than October 15, 2000:

         (1)      the base remuneration for the month of September 2000, subject
                  to the legally imposed withholdings. The Director recognizes
                  that he already received the payment of this amount;

         (2)      a pro-rated bonus payment of BEF 6,900,000, subject to the
                  legally imposed withholdings;

         (3)      a gross lump sum compensatory indemnity pursuant to the
                  provisions of the Non-competition Agreement of BEF 33,541,666,
                  subject to the legally imposed withholdings.

2.2      The amounts set forth in article 2.1 have been agreed upon, and will be
         paid, on the condition that the Company will have no further liability
         whatsoever vis-a-vis any person or authority as a result of or in
         connection with the Agreements and/or the termination thereof.

2.3      Should the Company or Stanley be, at any time in the future, held
         liable for the payment of any amount other than the amounts set forth
         in this agreement to any person(s), company or authority, as a result
         of or in connection with the termination of the Agreements, then the
         parties expressly agree that the Director shall indemnify and hold the
         Company and Stanley harmless and that furthermore the indemnity set
         forth in article 2.1 shall be automatically and retroactively reduced
         with the amount(s) payable and effectively paid by the Company or
         Stanley to such person(s), company or authority and the Director shall
         be required to immediately return, and the Company or Stanley shall be
         entitled to immediately receive from the Director, any amount(s) for
         which the Company or Stanley would have been liable and with which the
         indemnity shall have been so reduced.

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                                                                               5

2.4      The Director agrees with the amounts to be paid to him pursuant to
         article 2.1, with the immediate termination of the Agreements, with the
         calculation basis of the gross lump sum compensatory indemnity pursuant
         to the Non-competition Agreement and agrees that these amounts cover
         all indemnities due to the Director under all Agreements,
         relationships, mandates and functions, including any other agreements,
         relationships, mandates and functions with the Company, Stanley or any
         company of the Stanley group of companies.

2.5      The Director further agrees that the amounts to be paid to him pursuant
         to article 2.1 are all-inclusive, i.e. inclusive of all other
         remuneration, payments, manager compensations, premiums, bonuses,
         incentive payments, performance awards or similar advantages that the
         Company or Stanley or any company of the Stanley group of companies owe
         or may owe to the Director relating to any aspect of the relationship
         between them or the termination thereof.

2.6      The Director shall report any outstanding expenses which are due by the
         Company no later than October 31, 2000.

2.7      The Company will provide a tax consultant to assist to the preparation
         of the Belgian and Dutch annual tax return for income earned under the
         Director's Agreement in respect of the period of the Director's mandate
         until the Effective Termination Date.

ARTICLE 3 : CONFIDENTIALITY, COMPANY BELONGINGS, NON SOLICITATION

3.1      The Director shall return, no later than within 3 days following the
         Effective Termination Date, all documents, designs, formulae,
         specifications, drawings, notes, reports, minutes, files, memoranda or
         whatever other type of document (even if not printed and existing in
         software format only), that he has received or drafted or that have
         otherwise become in his possession and that regard or is the property
         of the Company, Stanley or the Stanley group of companies, their
         activities, customers, suppliers, personnel and so forth, whether or
         not confidential, to the Company, without keeping or making copies
         thereof. The Director shall also return to the Company his mobile
         phones, faxes and any other Company property.

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                                                                               6
3.2      The Director undertakes and agrees:

         (1)      to maintain in strictest confidence and not to disclose or
                  appropriate for his own use or for the use of others, directly
                  or indirectly (i) any confidential or proprietary information
                  of knowledge of the Company, Stanley or any company of the
                  Stanley group of companies, including matters of a technical
                  nature such as know-how, studies and research, and matters of
                  a business nature such as information about costs, profits,
                  sales, marketing or business plans (existing or potential)
                  customer lists (including members and issuers), customer
                  requirements, internally developed methods of customer
                  solicitation, the identity of and other facts relating to
                  existing or prospective customers, arrangements with customers
                  and other data not available to the public, (ii) any
                  information regarding or relating to the services performed by
                  the Director and/or the manner and circumstances in which
                  these services were conducted under all Agreements,
                  relationships, mandates and functions, and (iii) the terms and
                  conditions of this agreement including other agreements,
                  relationships, mandates and functions and the termination of
                  the Agreements.

         (2)      to refrain at all times from any acts of unfair competition
                  against the Company or Stanley or the Stanley group of
                  companies or complicity to such acts.

         (3)      to continue to comply, including following the termination,
                  with the provisions of article 8.2 and 9 of the Director's
                  Agreement.

3.3      Any violation of the provisions of this article 3 shall, in addition to
         any other legal remedies available to the Company or Stanley or the
         Stanley group of companies, result in an obligation of the Director to
         immediately return, and an entitlement of the Company or Stanley or the
         Stanley group of companies to immediately receive, any payment made to
         the Director by the Company under this agreement, the other provisions
         of this agreement however remaining in full force and effect.

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ARTICLE 4

                                                                               7

4.1      The Director agrees and undertakes to reasonably co-operate with the
         Company or Stanley or the Stanley group of companies, in all cases
         where there would be a need for transitional support, also after the
         Effective Termination Date.

4.2      The Director further agrees to co-operate in good faith with the
         Company or Stanley or the Stanley group of companies, and to defend the
         interests of the Company or Stanley of the Stanley group of companies,
         as a witness or in any other capacity in case of a court case,
         arbitration trial or any other proceeding or negotiation which is
         directly or indirectly related to his activities as director.

4.3      The Director shall at all times, including after the Effective
         Termination Date, behave correctly and professionally towards the
         Company, Stanley and any company of the Stanley group of companies and
         their customers, suppliers, employees, representatives and business
         contacts, and shall at no time, including after the Effective
         Termination Date, criticize publicly or in any other way express
         adverse publicity regarding the Company, Stanley, his relationship to
         the Company and Stanley, the termination thereof or the terms of this
         agreement.

4.4      The Director further agrees and covenants not to make or take, directly
         or indirectly, any action, attempt, statement or any other step, which
         could have the effect of prejudicing the business or reputation of the
         Company or Stanley or the Stanley group of companies. In this respect,
         the Director explicitly agrees to refrain from any statement or other
         form of communication to the press or to any third party regarding the
         performance of the Agreements and/or the circumstances that have led to
         the termination of the Agreements.

4.5      Any violation of the provisions of article 4 shall, in addition to any
         other legal remedies available to the Company or Stanley or the stanley
         group of companies, result in an obligation of the Director to
         immediately return, and an entitlement of the Company or Stanley or the
         Stanley group of companies to immediately receive, any payment made to
         the Director by the Company under this agreement, the other provisions
         of this agreement however remaining in full force and effect.

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                                                                               8

ARTICLE 5 : NON-COMPETITION

5.1      In consideration for the payment by the Company of the amount set forth
         in article 2.1 (3), and in accordance with and pursuant to the terms
         and conditions of the Non-competition Agreement, the Director
         undertakes, for a period of fourteen months following the Effective
         Termination Date in Europe, the Middle East or Africa (i.e. the
         territory where the Director has been active for the Stanley group of
         companies), not to be active, in an independent, dependent or other
         form, in the tools and hardware industry in which the Company, Stanley
         or any company of the Stanley group of companies is active.

5.2      Any violation of the provisions of article 5.1 shall, in addition to
         any other legal remedies available to the Company, Stanley or any
         company of the Stanley group of companies, result in an obligation of
         the Director to immediately return, and an entitlement of the Company,
         Stanley or any company of the Stanley group of companies to immediately
         receive, the payment made to the Director by the Company of the amount
         set forth in article 2.1(3), the other provisions of this agreement
         however remaining in full force and effect.

ARTICLE 6 : STOCK OPTIONS, VESTING, EXERCISE PERIOD

6.1      Pursuant to the provisions of the Stock-Option Agreement, all stock
         options that have been granted to the Director and that are vested at
         the Effective Termination Date, have become immediately exercisable and
         will remain exercisable until two months following the Effective
         Termination Date. All options not yet granted to the Director, or
         granted but not vested on the Effective Termination Date, will not be
         exercisable.

6.2      All Belgian and/or foreign personal tax and personal social security
         contributions, which may arise at the occasion of the vesting or the
         exercise of the stock options, will be borne by the Director who shall,
         at any time in the future, indemnify and hold the Company harmless, for
         any such amounts for which the Company would be held liable.

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                                                                               9

ARTICLE 7 : LOAN AND REDEMPTION AGREEMENT

7.1      In accordance with and pursuant to the terms and conditions of the Loan
         Agreement and the Redemption Agreement, the loan in the amount of BEF
         7,955,000 (granted to the Director on August 7, 1998 at no interest)
         will be deemed to have been fully reimbursed by the Director on the
         Effective Termination Date.

7.2      All Belgian and/or foreign personal tax and personal social security
         contributions, which may arise at the occasion of the loan or the early
         redemption thereof, will be borne by the Director who shall, at any
         time in the future, indemnify and hold the Company harmless, for any
         such amounts for which the Company would be held liable.

ARTICLE 8 : WAIVER

The Director accepts the amounts to which he is entitled on the basis of this
agreement as full and final settlement of all accounts, all Agreements, all
arrangements and all relationships between the Director on the one hand and the
Company, Stanley and any and all companies of the Stanley group of companies on
the other hand, in the meaning of article 2044 a.f. of the Belgian Civil Code.

The Director declares expressly that, subject to the performance of this
agreement, neither the Company nor Stanley nor any company of the Stanley group
of companies will have any further obligations vis-a-vis him and that he has no
further rights or claims vis-a-vis the Company or Stanley or any company of the
Stanley group of companies on the basis of the relationships or any of the
Agreements, arrangements or documents existing between them and the Director in
whatever capacity and/or the termination thereof.

The Director waives any potential or actual cause of action which he has or may
have relating to the performance and/or the termination of the Agreements,
whether known or unknown, fixed or contingent, and for any reason whatsoever,
including, but not limited to any insurance coverage, benefits, premiums,
termination indemnity, departure allowance, or any other advantage, payment,
incentive, accrued rights or similar advantages that are not

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                                                                              10

explicitly set forth in this agreement or any other provision of national,
regional or local law or regulation.

Any lawsuit filed on behalf of the Director in violation of this agreement,
shall automatically constitute a breach of the agreement, and in addition to any
other legal remedies available to the Company, Stanley or any company of the
Stanley group of companies (including the right to argue that any claim raised
by the Director should be dismissed on the basis of this agreement), the
Director shall be required to immediately return, and the Company, Stanley or
any company of the Stanley group of companies shall be entitled to immediately
receive, any payment made to the Director by the Company under this agreement,
the other provisions of this agreement however remaining in full force and
effect.

The Director knowingly and on an informed basis renounces to invoke any factual
or legal error or any omission whatsoever pertaining to the existence and extent
of his rights waived in this agreement.

ARTICLE 9 : INVALIDITY OF A CLAUSE OF THIS AGREEMENT

If any or more of the provisions of this agreement shall be held to be invalid,
illegal or unenforceable, the remaining provisions shall not be affected or
impaired and the relevant provision shall be restricted and/or modified only to
such extent to make it a valid, legal and enforceable provision.

ARTICLE 10 : PRIORITY

This agreement supersedes any and all agreements of a prior date, covering the
same subject, whether oral or in writing, between the parties.

ARTICLE 11 : GOVERNING LAW AND COMPETENT JURISDICTION

This agreement is governed by Belgian law and any dispute in connection
therewith shall be subjected to arbitration, in English, before an arbitration

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                                                                              11

tribunal consisting of one arbitrator, appointed and working in accordance with
Belgian law, without prejudice to the right for either party to initiate summary
proceeding before a competent Court.

Made at Zaventem, on October ....., 2000, in four original copies.

Each party acknowledges receipt of a duly initialized and signed original.

The Director                                         The Company

------------------                                   ------------------
Mr. G.H. Stef Kranendijk                             Mr. Jack Foster,
                                                         Special proxyholder

Stanley Atlantic Inc                                 Stanley Works Inc

------------------                                   ------------------
Mr. Jack Foster,                                     Mr. Jack Foster,
Special proxyholder                                      Special proxyholder

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