Document:

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                                                                    EXHIBIT 10.6

                                STATE OF NEW YORK
                       NEW YORK STATE DEPARTMENT OF LABOR
                               AMENDMENT NO. 7 TO
                       COMPTROLLER'S CONTRACT NO. C000857
                  WITH CLEARBLUE TECHNOLOGIES MANAGEMENT, INC.

      THIS AGREEMENT is made this 5TH DAY OF JANUARY, 2004 by and between the
People of the State of New York, acting by and through Linda Angello, the
Commissioner of Labor, whose office is at the 5th Floor of Building 12, Governor
W. Averell Harriman State Office Building Campus, Albany, New York 12240
(hereinafter referred to as "Labor" or "State") and ClearBlue Technologies
Management, Inc., a corporation authorized to do business in the State of New
York, with an office at 224 Harrison Street, Syracuse, N.Y. 13202 (hereinafter
referred to as "ClearBlue" or "Contractor").

                                   W I T N E S S E T H:
              WHEREAS, the parties entered into Comptroller's Contract No.
C000857 (hereinafter "Contract") approved by the State Comptroller on November
30, 2000, for the provision of Software development and maintenance, Web Hosting
and Help Desk services (hereinafter "Software Services"); and

      WHEREAS, the Contract provided for expenditures of up to Eighty Two
Million Dollars ($82,000,000.00) during the 5 year term of the Agreement
(hereinafter "Contract Total"), subject to the periodic extension of funding
from the United States Department of Labor; and

      WHEREAS, the Contract made available Nineteen Million Dollars
($19,000,000.00) for expenditure through June 14, 2001 (hereinafter "Contract
Funding"); and

      WHEREAS, Amendment No. 1 increased the Contract Funding $4,833,407 to
provide additional Software Services; and

      WHEREAS, Amendment No. 2 increased the Contract Funding $25,540,000 to
provide additional Software Services; and

      WHEREAS, Amendment No. 3 increased the Contract Funding $4,384,994 to
provide additional Software Services, increased the hourly billable rates in
accordance with the Consumer Price Index for Syracuse, and assigned the Contract
from Applied Theory Corporation, Inc. to ClearBlue Technologies Management,
Inc.; and

      WHEREAS, Amendment No. 4 increased the Contract Funding $18,952,142 to
provide additional Software Services; and
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      WHEREAS, Amendment No. 5 increased the Contract Total by $1,006,278.00
from $82,000,000.00 to $83,006,278.00 and the Contract Funding by $1,006,278.00
from $72,710,543.00 to $73,716,821.00 to permit the Department to provide
Software Services on behalf of the Rhode Island Department of Labor and
Training; and

      WHEREAS, Amendment No. 6 increased the Contract Funding by $2,399,880.00
from $73,716,821.00 to $76,116,701.00; increased the Contract Total by
$52,000,000.00 from $83,006,278.00 to $135,006,278.00; incorporated the
requirements of Executive Order 127; and decreased hourly billable rates; and

      WHEREAS, the parties wish to amend the contract to increase the Contract
Funding and add an additional general condition; and

      WHEREAS, the parties are ready, willing and able to enter into such an
amendment (hereinafter "Contract Amendment No. 7").

      NOW THEREFORE, in consideration of the mutual undertakings and covenants
herein contained the parties agree as follows:

      1.    The Contract Funding is hereby increased to permit the Department to
            spend an additional $6,350,000.00 for Software Services in
            accordance with the rates and terms contained in the Contract and
            the Scope of Services, as set forth in Exhibit A-1 and Exhibit A-2,
            copies of which are attached hereto and incorporated herein.

      2.    The Contract is hereby amended to require Labor's approval prior to
            Contractor's release of publicity regarding this Contract. Publicity
            includes, but is not limited to, news conferences, news releases,
            public announcements, advertising, brochures, reports, discussions
            and or presentations at conferences or meetings. The inclusion of
            Labor's materials, Labor's name, or other such reference to New York
            State and/or The Department of Labor in any document or forum is
            considered publicity.

      3.    This Agreement shall be deemed executory only to the extent of
            funding available to the State for the performance of the terms
            hereof and no liability on account thereof shall be incurred by the
            State of New York beyond monies available for purpose thereof.

      4.    This Agreement shall be governed by the laws of the State of New
            York.

      5.    Appendix A, standard clauses for New York State contracts, attached
            hereto, is hereby expressly made a part of this Agreement as fully
            as if set forth at length herein.

      6.    In all respects not inconsistent with this Contract Amendment No. 7,
            the terms of the Contract as originally entered into shall remain in
            full force and effect and binding upon the parties hereto.
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      7.    This Contract Amendment No. 7, the Contract and any prior
            amendments, constitute the entire Agreement between the parties
            hereto and no statement, promise, condition, understanding,
            inducement or representation, oral or written, expressed or implied,
            which is not contained herein shall be binding or valid and this
            Agreement shall not be changed, modified or altered in any manner
            except by an instrument in writing executed by both parties hereto.

      8.    This Contract Amendment No. 7 shall not be deemed executed, valid or
            binding unless and until approved in writing by the Attorney General
            and the State Comptroller.
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      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

                                    CONTRACT NUMBER C000857

                                          Agency Certification

                                          "In addition to the acceptance of this
                                          contract, I also certify that original
                                          copies of this signature page will be
                                          attached to all other exact copies of
                                          this contract."

CLEARBLUE TECHNOLOGIES                    THE PEOPLE OF THE STATE
MANAGEMENT, INC.                          OF NEW YORK

BY: /S/ ARTHUR BECKER                     BY:  /S/ EDWARD E. SNYDER
    NAME:  ARTHUR BECKER                           NAME:   EDWARD E. SNYDER
    TITLE: CHIEF EXECUTIVE OFFICER                 TITLE:  ASSOCIATE ACCOUNTANT
           AND PRESIDENT
    FEDERAL I.D. NO.: 75-3051663

APPROVED AS TO FORM                                   APPROVED
ELIOT SPITZER                                         ALAN G. HEVESI
ATTORNEY GENERAL                                      STATE COMPTROLLER

                            CORPORATE ACKNOWLEDGMENT

STATE OF NEW YORK }
                  :     SS.:
COUNTY OF         }
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      On the 27th day of January in the year 2004, before me personally came
Arthur Becker, to me known, who, being by me duly sworn did depose and say that
_he resides in New York, NY; that _he is the Chief Executive Officer and
President of CLEARBLUE TECHNOLOGIES MANAGEMENT, INC., the corporation described
in and which executed the above instrument; and that _he signed his/her name
thereto by authority of the Board of Directors of said corporation.

                                                /s/ Kenneth Drake
                                                Notary Public
                                                No. 020R6083800
                                                Expiration:  11/25/06
                                                County of New York
<PAGE>
                                   EXHIBIT A-1

                                STATEMENT OF WORK

The purpose of this grant is to obtain through the New York Department of Labor
the services, staff, and related non-personal services, such as computer
hardware and software, needed to develop and maintain a service for clearing
labor between the States, as authorized by the Wagner-Peyser Act, to assist
employers in the recruitment of workers, to assist job seekers in finding
appropriate employment, and to provide other information and services that
improve the efficiency of the labor market.

Activities under this grant will be performed by the AMERICA'S JOB BANK SERVICE
CENTER (AJBSC), and will be focused on assisting the Workforce Investment System
in providing value to its customers by expanding the resources that the states
can bring to the labor market and facilitating greater access to those
resources.

In furtherance of these objectives, $6,000,000 is requested to provide funding
under this grant for the period from July 1, 2003 through September 30, 2004 to
enable the AJBSC to:

      1.    Continue to perform the maintenance, data exchange and other daily
            operational activities necessary to continue operating America's Job
            Bank as a viable web site.
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                                   EXHIBIT A-2

                               Statement of Work

The purposes of this grant are to obtain through the New York Department of
Labor the services, staff, and related non-personal services, such as computer
hardware and software, needed to develop and maintain the America's One-Stop
Operating System, a self-service and mediated case management tool used by
One-Stop staff in assisting employers in the recruitment of workers, job
seekers in finding appropriate employment, and providing other information and
services that improve the efficiency of the labor market.

Activities under this grant will be performed by the America's Job Bank Service
Center (AJBSC), and will be focused on assisting the implementing Consortium
states in providing value to its customers by expanding the resources that the
states can bring to the labor market and facilitating greater access to those
resources. In furtherance of these objectives, $2,000,000 is requested to
provide funding under this grant for the period from July 1, 2003 through
September 30, 2004 to enable the AJBSC to carry out the following activities:

     1.   Continuing to maintain and develop the America's One-Stop Operating
          System (AOSOS) software, in accordance with the priorities set by the
          AOSOS Steering Committee in the PY 2003 Annual Work Plan/Planning
          Budget document, and any amendments made by the Steering Committee to
          such document.

<PAGE>
                                   APPENDIX A

                  STANDARD CLAUSES FOR NEW YORK STATE CONTRACTS

                           PLEASE RETAIN THIS DOCUMENT
                              FOR FUTURE REFERENCE.
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STANDARD CLAUSES FOR NYS CONTRACTS

                                TABLE OF CONTENTS

            1.    EXECUTORY CLAUSE
            2.    NON-ASSIGNMENT CLAUSE
            3.    COMPTROLLER'S APPROVAL
            4.    WORKERS' COMPENSATION BENEFITS
            5.    NON-DISCRIMINATION REQUIREMENTS
            6.    WAGE AND HOURS PROVISIONS
            7.    NON-COLLUSIVE BIDDING CERTIFICATION
            8.    INTERNATIONAL BOYCOTT PROHIBITION
            9.    SET-OFF RIGHTS
            10.   RECORDS
            11.   IDENTIFYING INFORMATION AND PRIVACY NOTIFICATION
            12.   EQUAL EMPLOYMENT OPPORTUNITIES FOR MINORITIES AND WOMEN
            13.   CONFLICTING TERMS
            14.   GOVERNING LAW
            15.   LATE PAYMENT
            16.   NO ARBITRATION
            17.   SERVICE OF PROCESS
            18.   PROHIBITION ON PURCHASE OF TROPICAL HARDWOODS
            19.   MACBRIDE FAIR EMPLOYMENT PRINCIPLES
            20.   OMNIBUS PROCUREMENT ACT OF 1992
            21.   RECIPROCITY AND SANCTIONS PROVISIONS
            22.   PURCHASES OF APPAREL
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                       STANDARD CLAUSES FOR NYS CONTRACTS

     The parties to the attached contract, license, lease, amendment or other
agreement of any kind (hereinafter, "the contract" or "this contract") agree to
be bound by the following clauses which are hereby made a part of the contract
(the word "Contractor" herein refers to any party other than the State, whether
a contractor, licenser, licensee, lessor, lessee or any other party):

1. EXECUTORY CLAUSE. In accordance with Section 41 of the State Finance Law, the
State shall have no liability under this contract to the Contractor or to anyone
else beyond funds appropriated and available for this contract.

2. NON-ASSIGNMENT CLAUSE. In accordance with Section 138 of the State Finance
Law, this contract may not be assigned by the Contractor or its right, title or
interest therein assigned, transferred, conveyed, sublet or otherwise disposed
of without the previous consent, in writing, of the State and any attempts to
assign the contract without the State's written consent are null and void. The
Contractor may, however, assign its right to receive payment without the State's
prior written consent unless this contract concerns Certificates of
Participation pursuant to Article 5-A of the State Finance Law.

3. COMPTROLLER'S APPROVAL. In accordance with Section 112 of the State Finance
Law (or, if this contract is with the State University or City University of New
York, Section 355 or Section 6218 of the Education Law), if this contract
exceeds $15,000 (or the minimum thresholds agreed to by the Office of the State
Comptroller for certain S.U.N.Y. and C.U.N.Y. contracts), or if this is an
amendment for any amount to a contract which, as so amended, exceeds said
statutory amount, or if, by this contract, the State agrees to give something
other than money when the value or reasonably estimated value of such
consideration exceeds $10,000, it shall not be valid, effective or binding upon
the State until it has been approved by the State Comptroller and filed in his
office. Comptroller's approval of contracts let by the Office of General
Services is required when such contracts exceed $30,000 (State Finance Law
Section 163.6.a).

4. WORKERS' COMPENSATION BENEFITS. In accordance with Section 142 of the State
Finance Law, this contract shall be void and of no force and effect unless the
Contractor shall provide and maintain coverage during the life of this contract
for the benefit of such employees as are required to be covered by the
provisions of the Workers' Compensation Law.

5. NON-DISCRIMINATION REQUIREMENTS. To the extent required by Article 15 of the
Executive Law (also known as the Human Rights Law) and all other State and
Federal statutory and constitutional non-discrimination provisions, the
Contractor will not discriminate against any employee or applicant for
employment because of race, creed, color, sex, national origin, sexual
orientation, age, disability, genetic predisposition or carrier status, or
marital status. Furthermore, in accordance with Section 220-e of the Labor Law,
if this is a contract for the construction, alteration or repair of any public
building or public work or for the manufacture, sale or distribution of
materials, equipment or supplies, and to the extent that this contract shall be
performed within the State of New York, Contractor agrees that neither it nor
its subcontractors shall, by reason of race, creed, color, disability, sex, or
national origin: (a) discriminate in hiring against any New York State citizen
who is qualified and available to perform the work; or (b) discriminate against
or intimidate any employee hired for the performance of work under this
contract. If this is a building service contract as defined in Section 230 of
the Labor Law, then, in accordance with Section 239 thereof, Contractor agrees
that neither it nor its subcontractors shall by reason of race, creed, color,
national origin, age, sex or disability: (a) discriminate in hiring against any
New York State citizen who is qualified and available to perform the work; or
(b) discriminate against or intimidate any employee hired for the performance of
work under this contract. Contractor is subject to fines of $50.00 per person
per day for any violation of Section 220-e or Section 239 as well as possible
termination of this contract and forfeiture of all moneys due hereunder for a
second or subsequent violation.

6. WAGE AND HOURS PROVISIONS. If this is a public work contract covered by
Article 8 of the Labor Law or a building service contract covered by Article 9
thereof, neither Contractor's employees nor the employees of its subcontractors
may be required or permitted to work more than the number of hours or days
stated in said statutes, except as otherwise provided in the Labor Law and as
set forth in prevailing wage and supplement schedules issued by the State Labor
Department. Furthermore, Contractor and its subcontractors must pay at least the
prevailing wage rate and pay or provide the prevailing supplements, including
the premium rates for overtime pay, as determined by the State Labor Department
in accordance with the Labor Law.

7. NON-COLLUSIVE BIDDING CERTIFICATION. In accordance with Section 139-d of the
State Finance Law, if this contract was awarded based upon the submission of
bids, Contractor warrants, under penalty of perjury, that its bid was arrived at
independently and without collusion aimed at restricting competition. Contractor
further warrants
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STANDARD CLAUSES FOR NYS CONTRACTS

that, at the time Contractor submitted its bid, an authorized and responsible
person executed and delivered to the State a non-collusive bidding certification
on Contractor's behalf.

8. INTERNATIONAL BOYCOTT PROHIBITION. In accordance with Section 220-f of the
Labor Law and Section 139-h of the State Finance Law, if this contract exceeds
$5,000, the Contractor agrees, as a material condition of the contract, that
neither the Contractor nor any substantially owned or affiliated person, firm,
partnership or corporation has participated, is participating, or shall
participate in an international boycott in violation of the federal Export
Administration Act of 1979 (50 USC App. Sections 2401 et seq.) or regulations
thereunder. If such Contractor, or any of the aforesaid affiliates of
Contractor, is convicted or is otherwise found to have violated said laws or
regulations upon the final determination of the United States Commerce
Department or any other appropriate agency of the United States subsequent to
the contract's execution, such contract, amendment or modification thereto shall
be rendered forfeit and void. The Contractor shall so notify the State
Comptroller within five (5) business days of such conviction, determination or
disposition of appeal (2NYCRR 105.4).

9. SET-OFF RIGHTS. The State shall have all of its common law, equitable and
statutory rights of set-off. These rights shall include, but not be limited to,
the State's option to withhold for the purposes of set-off any moneys due to the
Contractor under this contract up to any amounts due and owing to the State with
regard to this contract, any other contract with any State department or agency,
including any contract for a term commencing prior to the term of this contract,
plus any amounts due and owing to the State for any other reason including,
without limitation, tax delinquencies, fee delinquencies or monetary penalties
relative thereto. The State shall exercise its set-off rights in accordance with
normal State practices including, in cases of set-off pursuant to an audit, the
finalization of such audit by the State agency, its representatives, or the
State Comptroller.

10. RECORDS. The Contractor shall establish and maintain complete and accurate
books, records, documents, accounts and other evidence directly pertinent to
performance under this contract (hereinafter, collectively, "the Records"). The
Records must be kept for the balance of the calendar year in which they were
made and for six (6) additional years thereafter. The State Comptroller, the
Attorney General and any other person or entity authorized to conduct an
examination, as well as the agency or agencies involved in this contract, shall
have access to the Records during normal business hours at an office of the
Contractor within the State of New York or, if no such office is available, at a
mutually agreeable and reasonable venue within the State, for the term specified
above for the purposes of inspection, auditing and copying. The State shall take
reasonable steps to protect from public disclosure any of the Records which are
exempt from disclosure under Section 87 of the Public Officers Law (the
"Statute") provided that: (i) the Contractor shall timely inform an appropriate
State official, in writing, that said records should not be disclosed; and (ii)
said records shall be sufficiently identified; and (iii) designation of said
records as exempt under the Statute is reasonable. Nothing contained herein
shall diminish, or in any way adversely affect, the State's right to discovery
in any pending or future litigation.

11. IDENTIFYING INFORMATION AND PRIVACY NOTIFICATION. (a) FEDERAL EMPLOYER
IDENTIFICATION NUMBER and/or FEDERAL SOCIAL SECURITY NUMBER. All invoices or New
York State standard vouchers submitted for payment for the sale of goods or
services or the lease of real or personal property to a New York State agency
must include the payee's identification number, i.e., the seller's or lessor's
identification number. The number is either the payee's Federal employer
identification number or Federal social security number, or both such numbers
when the payee has both such numbers. Failure to include this number or numbers
may delay payment. Where the payee does not have such number or numbers, the
payee, on its invoice or New York State standard voucher, must give the reason
or reasons why the payee does not have such number or numbers.

(B) PRIVACY NOTIFICATION. (1) The authority to request the above personal
information from a seller of goods or services or a lessor of real or personal
property, and the authority to maintain such information, is found in Section 5
of the State Tax Law. Disclosure of this information by the seller or lessor to
the State is mandatory. The principal purpose for which the information is
collected is to enable the State to identify individuals, businesses and others
who have been delinquent in filing tax returns or may have understated their tax
liabilities and to generally identify persons affected by the taxes administered
by the Commissioner of Taxation and Finance. The information will be used for
tax administration purposes and for any other purpose authorized by law.
(2) The personal information is requested by the purchasing unit of the agency
contracting to purchase the goods or services or lease the real or personal
property covered by this contract or lease. The information is maintained in New
York State's Central Accounting System by the Director of Accounting Operations,
Office of the State Comptroller, AESOB, Albany, New York 12236.

12. EQUAL EMPLOYMENT OPPORTUNITIES FOR MINORITIES AND WOMEN. In accordance with
Section 312 of the Executive Law, if this contract is: (i) a written agreement
or purchase order instrument, providing for a total expenditure in excess of
$25,000.00, whereby a contracting agency is committed to expend or does expend
<PAGE>
STANDARD CLAUSES FOR NYS CONTRACTS

funds in return for labor, services, supplies, equipment, materials or any
combination of the foregoing, to be performed for, or rendered or furnished to
the contracting agency; or (ii) a written agreement in excess of $100,000.00
whereby a contracting agency is committed to expend or does expend funds for the
acquisition, construction, demolition, replacement, major repair or renovation
of real property and improvements thereon; or (iii) a written agreement in
excess of $100,000.00 whereby the owner of a State assisted housing project is
committed to expend or does expend funds for the acquisition, construction,
demolition, replacement, major repair or renovation of real property and
improvements thereon for such project, then:

(a) The Contractor will not discriminate against employees or applicants for
employment because of race, creed, color, national origin, sex, age, disability
or marital status, and will undertake or continue existing programs of
affirmative action to ensure that minority group members and women are afforded
equal employment opportunities without discrimination. Affirmative action shall
mean recruitment, employment, job assignment, promotion, upgradings, demotion,
transfer, layoff, or termination and rates of pay or other forms of
compensation;

(b) at the request of the contracting agency, the Contractor shall request each
employment agency, labor union, or authorized representative of workers with
which it has a collective bargaining or other agreement or understanding, to
furnish a written statement that such employment agency, labor union or
representative will not discriminate on the basis of race, creed, color,
national origin, sex, age, disability or marital status and that such union or
representative will affirmatively cooperate in the implementation of the
contractor's obligations herein; and

(c) the Contractor shall state, in all solicitations or advertisements for
employees, that, in the performance of the State contract, all qualified
applicants will be afforded equal employment opportunities without
discrimination because of race, creed, color, national origin, sex, age,
disability or marital status.

Contractor will include the provisions of "a", "b", and "c" above, in every
subcontract over $25,000.00 for the construction, demolition, replacement, major
repair, renovation, planning or design of real property and improvements thereon
(the "Work") except where the Work is for the beneficial use of the Contractor.
Section 312 does not apply to: (i) work, goods or services unrelated to this
contract; or (ii) employment outside New York State; or (iii) banking services,
insurance policies or the sale of securities. The State shall consider
compliance by a contractor or subcontractor with the requirements of any federal
law concerning equal employment opportunity which effectuates the purpose of
this section. The contracting agency shall determine whether the imposition of
the requirements of the provisions hereof duplicate or conflict with any such
federal law and if such duplication or conflict exists, the contracting agency
shall waive the applicability of Section 312 to the extent of such duplication
or conflict. Contractor will comply with all duly promulgated and lawful rules
and regulations of the Governor's Office of Minority and Women's Business
Development pertaining hereto.

13. CONFLICTING TERMS. In the event of a conflict between the terms of the
contract (including any and all attachments thereto and amendments thereof) and
the terms of this Appendix A, the terms of this Appendix A shall control.

14. GOVERNING LAW. This contract shall be governed by the laws of the State of
New York except where the Federal supremacy clause requires otherwise.

15. LATE PAYMENT. Timeliness of payment and any interest to be paid to
Contractor for late payment shall be governed by Article 11-A of the State
Finance Law to the extent required by law.

16. NO ARBITRATION. Disputes involving this contract, including the breach or
alleged breach thereof, may not be submitted to binding arbitration (except
where statutorily authorized), but must, instead, be heard in a court of
competent jurisdiction of the State of New York.

17. SERVICE OF PROCESS. In addition to the methods of service allowed by the
State Civil Practice Law & Rules ("CPLR"), Contractor hereby consents to service
of process upon it by registered or certified mail, return receipt requested.
Service hereunder shall be complete upon Contractor's actual receipt of process
or upon the State's receipt of the return thereof by the United States Postal
Service as refused or undeliverable. Contractor must promptly notify the State,
in writing, of each and every change of address to which service of process can
be made. Service by the State to the last known address shall be sufficient.
Contractor will have thirty (30) calendar days after service hereunder is
complete in which to respond.

18. PROHIBITION ON PURCHASE OF TROPICAL HARDWOODS. The Contractor certifies and
warrants that all wood products to be used under this contract award will be in
accordance with, but not limited to, the specifications and provisions of State
Finance Law Section 165. (Use of Tropical Hardwoods) which prohibits purchase
and use of tropical
<PAGE>
STANDARD CLAUSES FOR NYS CONTRACTS

hardwoods, unless specifically exempted, by the State or any governmental agency
or political subdivision or public benefit corporation. Qualification for an
exemption under this law will be the responsibility of the contractor to
establish to meet with the approval of the State.

In addition, when any portion of this contract involving the use of woods,
whether supply or installation, is to be performed by any subcontractor, the
prime Contractor will indicate and certify in the submitted bid proposal that
the subcontractor has been informed and is in compliance with specifications and
provisions regarding use of tropical hardwoods as detailed in Section 165 State
Finance Law. Any such use must meet with the approval of the State; otherwise,
the bid may not be considered responsive. Under bidder certifications, proof of
qualification for exemption will be the responsibility of the Contractor to meet
with the approval of the State.

19. MACBRIDE FAIR EMPLOYMENT PRINCIPLES. In accordance with the MacBride Fair
Employment Principles (Chapter 807 of the Laws of 1992), the Contractor hereby
stipulates that the Contractor either (a) has no business operations in Northern
Ireland, or (b) shall take lawful steps in good faith to conduct any business
operations in Northern Ireland in accordance with the MacBride Fair Employment
Principles (as described in Section 165 of the New York State Finance Law), and
shall permit independent monitoring of compliance with such principles.

20. OMNIBUS PROCUREMENT ACT OF 1992. It is the policy of New York State to
maximize opportunities for the participation of New York State business
enterprises, including minority and women-owned business enterprises as bidders,
subcontractors and suppliers on its procurement contracts.

Information on the availability of New York State subcontractors and suppliers
is available from:

     NYS Department of Economic Development
     Division for Small Business
     30 South Pearl St -- 7th Floor
     Albany, New York  12245
     Telephone:  518-292-5220

A directory of certified minority and women-owned business enterprises is
available from:

     NYS Department of Economic Development
     Division of Minority and Women's Business Development
     30 South Pearl St -- 2nd Floor
     Albany, New York  12245
     http://www.empire.state.ny.us

The Omnibus Procurement Act of 1992 requires that by signing this bid proposal
or contract, as applicable, Contractors certify that whenever the total bid
amount is greater than $1 million:

(a) The Contractor has made reasonable efforts to encourage the participation of
New York State Business Enterprises as suppliers and subcontractors, including
certified minority and women-owned business enterprises, on this project, and
has retained the documentation of these efforts to be provided upon request to
the State;

(b) The Contractor has complied with the Federal Equal Opportunity Act of 1972
(P.L. 92-261), as amended;

(c) The Contractor agrees to make reasonable efforts to provide notification to
New York State residents of employment opportunities on this project through
listing any such positions with the Job Service Division of the New York State
Department of Labor, or providing such notification in such manner as is
consistent with existing collective bargaining contracts or agreements. The
Contractor agrees to document these efforts and to provide said documentation to
the State upon request; and

(d) The Contractor acknowledges notice that the State may seek to obtain offset
credits from foreign countries as a result of this contract and agrees to
cooperate with the State in these efforts.

21. RECIPROCITY AND SANCTIONS PROVISIONS. Bidders are hereby notified that if
their principal place of business is located in a country, nation, province,
state or political subdivision that penalizes New York State vendors, and if the
goods or services they offer will be substantially produced or performed outside
New York State, the Omnibus Procurement Act 1994 and 2000 amendments (Chapter
684 and Chapter 383, respectively) require that they be denied contracts which
they would otherwise obtain. NOTE: As of May 15, 2002, the list of
discriminatory jurisdictions subject to this provision includes the states of
South Carolina, Alaska, West Virginia, Wyoming,
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STANDARD CLAUSES FOR NYS CONTRACTS

Louisiana and Hawaii. Contact NYS Department of Economic Development for a
current list of jurisdictions subject to this provision.

22. PURCHASES OF APPAREL. In accordance with State Finance Law 162 (4-a), the
State shall not purchase any apparel from any vendor unable or unwilling to
certify that: (i) such apparel was manufactured in compliance with all
applicable labor and occupational safety laws, including, but not limited to,
child labor laws, wage and hours laws and workplace safety laws, and (ii) vendor
will supply, with its bid (or, if not a bid situation, prior to or at the time
of signing a contract with the State), if known, the names and addresses of each
subcontractor and a list of all manufacturing plants to be utilized by the
bidder.EXHIBIT
4 (iv)

EXECUTION COPY

	
	
	
	
	

SECOND AMENDED AND RESTATED
 FACILITY
A (364-DAY) CREDIT AGREEMENT

Dated as of
October 17, 2001

Amended and Restated
 as
of October 16, 2002 and October 15, 2003

between

THE STANLEY
WORKS

as Borrower

THE LENDERS
REFERRED TO HEREIN,

as Lenders

and

CITIBANK, N.A.

as Administrative Agent

CITIGROUP GLOBAL
MARKETS INC.

as Lead Arranger and Book Runner

and

FLEET NATIONAL BANK

MELLON BANK, N.A.
 BNP PARIBAS

as Co-Syndication
Agents

	
	
	
	
	

SECOND AMENDMENT AND RESTATEMENT
dated as of October 15, 2003, among THE STANLEY WORKS (the
"Borrower"); each of the lenders
that is a signatory hereto (the
"Lenders"); and CITIBANK, N.A., as
administrative agent for the Lenders (together with its successors in
such capacity, the "Administrative
Agent").

The Borrower, certain
Lenders and the Administrative Agent are parties to a Facility A
(364-Day) Credit Agreement dated as of October 17, 2001 (as amended and
restated as of October 16, 2002, the "Existing
Facility A (364-Day) Credit Agreement"), providing,
subject to the terms and conditions thereof, for extensions of credit
(by the making of loans) by the Lenders to the Borrower in an aggregate
principal amount not exceeding $250,000,000 at any one time
outstanding. The Borrower, the Lenders and the Administrative Agent
wish to extend the Termination Date as defined in the Existing Facility
A (364-Day) Credit Agreement by 364 days to October 13, 2004 and to
amend and restate the Existing Facility A (364-Day) Credit Agreement in
certain other respects; and accordingly, the parties hereto hereby
agree to amend the Existing Facility A (364-Day) Credit Agreement as
set forth herein and to restate the Existing Facility A (364-Day)
Credit Agreement as so amended (as so amended and restated, the
"Second Amended and Restated Credit Facility A
(364-Day) Agreement"):

Section
1.    Definitions.    Terms used but not otherwise defined
herein have the meanings given them in the Existing Facility A
(364-Day) Credit Agreement.

Section
2.    Amendments.    Effective on the Restatement Date (as
defined below), the Existing Facility A (364-Day) Credit Agreement is
hereby amended as set forth below, and the Existing Facility A
(364-Day) Credit Agreement is restated to read in its entirety as set
forth in the Existing Facility A (364-Day) Credit Agreement, which is
hereby incorporated herein by reference, as amended as set forth
below:

A.    References in the Existing
Facility A (364-Day) Credit Agreement to "this
Agreement" and words of similar import (including indirect
references) shall be deemed to be references to the Existing Facility A
(364-Day) Credit Agreement as amended and restated hereby.

B.    The reference to "Salomon
Smith Barney" on the cover of the Existing Facility A
(364-Day) Credit Agreement is amended to read "Citigroup
Global Markets Inc.".

C.    The definition of
"Termination Date" in Section 1.01 of the
Existing Facility A (364-Day) Credit Agreement is amended to read in
its entirety as set forth below:

""Termination
Date" means the earlier of (a) October 13, 2004 or
(b) the date of termination in whole of the Commitments pursuant to
Section 2.01(b) or Section 6.01.".

D    Section 8.02 of the Existing Facility A
(364-Day) Credit Agreement is amended by deleting it in its entirety
and replacing it with the following:

"Section
8.02.    Notices .

(a)    All
notices, requests and demands to or upon the respective parties hereto
to be effective shall be in writing (including by telecopy, encrypted
or unencrypted) and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made when delivered or, in the
case of telecopy notice, when received, addressed to the Borrower, the
Administrative Agent, or such Lender (or other holder) at its address
set forth below:

(i)    if to the
Borrower, at its address at 1000 Stanley Drive, New Britain,
Connecticut 06053, Attention: Secretary, telecopy no. 860-827-3911,
with a copy to Craig A. Douglas, Treasurer, at the same address and
telecopy no. 860-827-3886;

(ii)    if to
any Initial Lender, at its Domestic Lending Office specified opposite
its name on Schedule I;

(iii)    if to any
other Lender, at its Domestic Lending Office specified in the
Assignment and Acceptance pursuant to which it became a Lender; and

(iv)    if to the Administrative Agent, at its
address at 2 Penns Way, Suite 200, New Castle, Delaware 19720,
Attention Bank Loans Syndication, telecopy no. 302-894-6120;

2

or, as to the Borrower
or the Administrative Agent, at such other address as shall be
designated by such party in a written notice to the other parties and,
as to each other party, at such other address as shall be designated by
such party in a written notice to the Borrower and the Administrative
Agent. All notices and other communications given to any party hereto
in accordance with the provisions of this Agreement shall be deemed to
have been given on the date of receipt. Delivery by telecopier of an
executed counterpart of any amendment or waiver of any provision of
this Agreement or of any Exhibit hereto to be executed and delivered
hereunder shall be effective as delivery of a manually executed
counterpart thereof.

E.    Section 8.04(c)
of the Existing Facility A (364-Day) Credit Agreement is amended by
inserting the following sentence immediately after the last sentence
thereof:

"The Borrower agrees
not to assert any claim against any Indemnified Party on any theory of
liability, for consequential, indirect, special or punitive damages
arising out of or otherwise relating to this Agreement or any of the
transactions contemplated hereby or the actual or proposed use of the
proceeds of the Advances.".

F.    Clause (i) of the proviso in Section
8.07(a) of the Existing Facility A (364-Day) Credit Agreement is
amended by inserting the phrase "or delayed, and which
consent of the Borrower shall not be required if an Event of Default
exists" immediately after the words
"unreasonably withheld".

G.    Article VIII of the Existing Facility A
(364-Day) Credit Agreement is amended by inserting after the last
sentence of Section 8.13 the following new Section 8.14:

"Section 8.14.    Tax
Structure Disclosure.    Anything herein to the contrary
notwithstanding, each party hereto (and each party's employees,
representatives or other agents) may disclose to any and all Persons,
without limitation of any kind, the U.S. tax treatment and U.S. tax
structure of this Agreement and all materials of any kind (including
opinions or other tax analyses) that are provided to such party
relating to such U.S. tax treatment and U.S. tax structure, other than
the identities of the parties and any information for which
nondisclosure is reasonably necessary in order to comply with
applicable securities laws.".

G.    Schedule I of the Existing Facility A
(364-Day) Credit Agreement is amended to read in its entirety as set
forth in Schedule I hereto.

Section
3.    Representations and Warranties.    The Borrower
represents and warrants to the Lenders as of the Restatement Date that
(i) the representations and warranties set forth in Section  4.01
of the Existing Facility A (364-Day) Credit Agreement are true and
correct on and as of the Restatement Date as though made on and as of
the Restatement Date (or, if any such representation or warranty is
expressly stated to have been made as of a specific date, as of such
specific date) and as if each reference in said Section  4.01 to
"this Agreement" included reference to the
Second Amended and Restated Facility A (364-Day) Credit Agreement and
as if each reference in said Sections 4.01(f) and 4.01(h) to
"December 29, 2001" were instead a reference
to "December 28, 2002" and as if each
reference in said Sections 4.01(f) and 4.01(h) to "June
29, 2002" were instead a reference to "June
28, 2003" and as if each reference in said Sections
4.01(e) and 4.01(g) to "December 31, 2001"
were instead a reference to "December 31,
2002" and (ii) no event has occurred and is continuing
that constitutes a Default or Event of Default (and the parties agree
that breach of any of the representations and warranties in this
Section 3 shall constitute an Event of Default under Section 6.01(b) of
the Second Amended and Restated Facility A (364-Day) Credit
Agreement).

Section 4.    Conditions to
Effectiveness.    The amendment and restatement set forth in
Section  2 hereof shall become effective on the date (the
"Restatement Date") on which the
Administrative Agent shall notify the Borrower that the following
conditions precedent have been satisfied (and the Administrative Agent
shall promptly notify the Lenders of the occurrence of the Restatement
Date):

(a)    Documents.    The
Administrative Agent shall have received the following documents (with
sufficient copies for each Lender), each of which shall be satisfactory
to the Administrative Agent in form and substance:

3

(1)    Execution
by All Parties.    Counterparts of this Second Amendment and
Restatement, duly executed and delivered by the Borrower, the
Administrative Agent and the Lenders.

(2)    Authority and
Approvals.    Certified copies of the resolutions of the Board
of Directors of the Borrower (or equivalent documents) authorizing and
approving this Second Amendment and Restatement, authorizing Borrowings
under the Second Amended and Restated Facility A (364-Day) Credit
Agreement in an aggregate principal amount up to but not exceeding
$250,000,000 at any one time outstanding, and certified copies of all
documents evidencing other necessary action (corporate, partnership or
otherwise) and governmental approvals, if any, with respect to this
Second Amendment and Restatement.

(3)    Secretary's or Assistant
Secretary's Certificate.    A certificate of the Secretary
or an Assistant Secretary of the Borrower, dated the Restatement Date,
certifying the names and true signatures of the officers of the
Borrower authorized to execute and deliver this Second Amendment and
Restatement and the other documents to be delivered hereunder.

(4)    Opinion of Borrower's
Counsel.    A favorable opinion of counsel to the Borrower, in
substantially the form of Exhibit A hereto, and as to such other
matters as the Administrative Agent or any Lender acting through the
Administrative Agent may reasonably request.

(5)    Closing Certificate.    A
certificate of a senior financial officer of the Borrower, dated the
Restatement Date, certifying the representations and warranties set
forth in Section 3 hereof are true on such date as if made on and as of
such date.

(b)    Approvals.    The
Administrative Agent shall have received evidence satisfactory to it of
receipt of all third party consents and approvals necessary in
connection with this Second Amendment and Restatement (without the
imposition of any conditions except those that are acceptable to the
Lenders) and that the same remain in effect.

(c)    Fees and Expenses.    The
Administrative Agent shall have received evidence satisfactory to it
that (i) the Borrower shall have paid in full all accrued fees,
expenses and interest due and payable to the Administrative Agent and
the Lenders under the Existing Facility A (364-Day) Credit Agreement,
(ii) the Borrower shall have paid all accrued fees and expenses of the
Administrative Agent (including the reasonable fees and expenses of
counsel to the Administrative Agent) in connection with this Second
Amendment and Restatement and (iii) the Borrower shall have paid to the
Administrative Agent for account of the Lenders such up-front fees in
connection with the execution of this Second Amendment and Restatement
as the Borrower and the Administrative Agent shall have agreed
upon.

Section 5. Pro Rata
Adjustments.    The Borrower shall, on the Restatement Date (but
only if any Advances are outstanding on said date), borrow Advances
from certain of the Lenders and/or (notwithstanding (i) the second
sentence of Section  2.07(a) of the Second Amended and Restated
Facility A (364-Day) Credit Agreement requiring that prepayments be
made in accordance with said Section 2.07(a) and (ii) Section 2.09(a)
of the Second Amended and Restated Facility A (364-Day) Credit
Agreement requiring that payments be made ratably in accordance with
the principal amounts of the Advances held by the Lenders) prepay
Advances (together with all accrued and unpaid interest thereon) such
that, after giving effect thereto, the Advances (including, without
limitation, the principal amounts and Interest Periods thereof) shall
be held by the Lenders ratably in accordance with their respective
Commitments (after giving effect to this Second Amendment and
Restatement).

Section
6.    Miscellaneous.    Except as herein provided, the
Existing Facility A (364-Day) Credit Agreement shall remain unchanged
and in full force and effect. This Second Amendment and Restatement may
be executed in any number of counterparts, all of which taken together
shall constitute one and the same agreement and any of the parties
hereto may execute this Second Amendment and Restatement by signing any
such counterpart. This Second Amendment and Restatement shall be
governed by, and construed in accordance with, the law of the State of
New York.

4

IN WITNESS WHEREOF, the parties hereto have
caused this Second Amendment and Restatement to be duly executed and
delivered as of the day and year first above written.

		THE STANLEY WORKS

		By                                                                                

		Name:

Title:

		CITIBANK, N.A., as Administrative Agent
and as
     Lender

		By                                                                                

		Name:

Title:

		FLEET NATIONAL BANK

		By                                                                                

		Name:

Title:

		BNP PARIBAS

		By                                                                                

		Name:

Title:

		MELLON BANK, N.A.

		By                                                                                

		Name:

Title:

		JPMORGAN CHASE BANK

		By                                                                                

		Name:

Title:

		BARCLAYS BANK PLC

		By                                                                                

		Name:

Title:

5

		RBC CENTURA BANK

		By                                                                                

		Name:

Title:

		THE NORTHERN TRUST COMPANY

		By                                                                                

		Name:

Title:

		UBS AG, CAYMAN ISLANDS BRANCH

		By                                                                                

		Name:

Title:

6

SCHEDULE
I

LENDERS AND COMMITMENTS

							
	Lenders		Commitment
	CITIBANK, N.A.		$	43,500,000.00	 
	FLEET NATIONAL BANK		$	36,700,000.00	 
	BNP PARIBAS		$	36,700,000.00	 
	MELLON
BANK, N.A.		$	36,700,000.00	 
	JPMORGAN CHASE
BANK		$	25,000,000.00	 
	BARCLAYS BANK
PLC		$	17,850,000.00	 
	RBC CENTURA
BANK		$	17,850,000.00	 
	THE NORTHERN TRUST
COMPANY		$	17,850,000.00	 
	UBS AG, CAYMAN
ISLANDS
BRANCH		$	17,850,000.00	 
	

SCHEDULE I

ADDRESS AND APPLICABLE LENDING
OFFICES

											
	Name
of Lenders and Addresses
For
Notices		    
Domestic Lending
Office		Eurodollar Lending

Office
	Mellon Bank, N.A.
3
Mellon Bank Center,
 12th Floor
Pittsburgh, PA
15259
    
Telecopy: 412-209-6113
Telephone:
412-234-3698
Attn: Albert J. Gestiehr		Mellon Bank,
N.A.
3 Mellon Bank Center,
 12th
Floor
Pittsburgh, PA 15259

		Mellon Bank, N.A.
3
Mellon Bank Center,
 12th Floor
Pittsburgh, PA
15259
	BNP Paribas
787
Seventh Avenue
New York, NY 10019
    
Telecopy:
212-841-3049
Telephone: 212-841-2747
Attn: Christopher
Criswell		BNP Paribas
787 Seventh Avenue
New York, NY
10019		BNP Paribas
787 Seventh Avenue
New York, NY
10019
	Centura Bank
3201
Beechleaf Court, Suite 700
Raleigh, NC
27604-1051
    
Telecopy: 919-788-5515
Telephone:
919-788-5413
Attn: William W. Newell		Centura Bank
3201
Beechleaf Court, Suite 700
 Raleigh, NC
27604-1051

		Centura Bank
3201 Beechleaf Court, Suite
700
Raleigh, NC
27604-1051

	Barclays Bank
PLC
P.O. Box 544
34 Lombard Street
London EC3V
9EX
Telecopy: 171-699-2298
    

Contacts: Jonathan
Gray
Tel. No.
171-699-2301		Barclays Bank PLC
London
c/o
Barclays Bank PLC
75 Wall Street
New York, N.Y.
10265
     
Ref: Stanley Works
 Base Rate
Advances
    
Telecopy:
212-412-5002
    
Contact:
Eddie Cotto,
Jr.
212-412-3710		Barclays Bank PLC
Central Loan
Admin.
Dept., 5th Floor
St. Swithins House
11/12 St.
Swithins Lane
London EC4N 8AS
    
Ref: Stanley
Works
Eurodollar Rate Advances
    
Telecopy:
171-621-4583
Telex: 895-0821
    
Contact:
Tanya
Bond
171-621-4599
	

											
	Name
of Lenders and Addresses
For
Notices		    
Domestic Lending
Office		Eurodollar Lending

Office
	Citibank,
N.A.
2 Penns Way, Suite 200, New Castle, Delaware
19720
    
Telecopy no. 302-894-6120
Attention: Bank
Loans Syndication		Citibank, N.A.
2 Penns Way, Suite 200,
New Castle, Delaware 19720
    
Telecopy no.
302-894-6120
Attention: Bank Loans Syndication		Citibank,
N.A.
2 Penns Way, Suite 200, New Castle, Delaware
19720
    
Telecopy no. 302-894-6120
Attention: Bank
Loans Syndication
	JPMorgan
Chase Bank
1 Chase Manhattan Plaza,
 8th floor, New York, NY
10081
    
 Attention: Primary contact - Vito Cipriano

Tel(212) -552-7402
 Fax(212)-552-5662
     
 Secondary
Contact – Patricia Ciocco
 Tel(212) -552-4599

Fax(212)-552-5662		JPMorgan Chase Bank
1 Chase Manhattan
Plaza,
 8th floor, New York, NY 10081
    
 Attention:
Primary contact - Vito Cipriano
 Tel(212) -552-7402

Fax(212)-552-5662
     
 Secondary Contact – Patricia
Ciocco
 Tel(212) -552-4599
 Fax(212)-552-5662		JPMorgan
Chase Bank
1 Chase Manhattan Plaza,
 8th floor, New York, NY
10081
    
 Attention: Primary contact - Vito Cipriano

Tel(212) -552-7402
 Fax(212)-552-5662
     
 Secondary
Contact – Patricia Ciocco
 Tel(212) -552-4599

Fax(212)-552-5662
	The Northern
Trust Company
 50 South La Salle Street
Chicago, Illinois
60675
    
 Attn: Russ Rockenbach
(312)
630-6414		The Northern Trust Company
50 South La Salle
Street
Chicago, Illinois 60675
    
 Attn: Russ
Rockenbach
(312) 630-6414		The Northern Trust Company
50
South La Salle Street
Chicago, Illinois 60675
    
 Attn:
Russ Rockenbach
(312)
630-6414
	Fleet National
Bank
 100 Federal Street
MADE10010A
Boston, MA
02110
    
 Telecopy: 617-434-0601
Telephone:
617-434-9180
Attn: Renata Salgado
Email:
renatalucia_v_salgado@fleet.com		Fleet
National Bank
 100 Federal Street
MADE10010A
Boston, MA
02110
    
 Telecopy: 617-434-0601
Telephone:
617-434-9180
Attn: Renata Salgado
Email:
renatalucia_v_salgado@fleet.com		Fleet
National Bank
 100 Federal Street
MADE10010A
Boston, MA
02110
    
 Telecopy: 617-434-0601
Telephone:
617-434-9180
Attn: Renata Salgado
Email:
renatalucia_v_salgado@fleet.com
	UBS
AG, New York Branch
677 Washington Blvd.
Stamford, CT

06901
    
 Telecopy: 203-719-3888
Telephone:
203-719-5274
Attn: Tim Costello		UBS AG, New York
Branch
677 Washington Blvd.
Stamford, CT

06901
    
 Telecopy: 203-719-3888
Telephone:
203-719-5274
Attn: Tim Costello		UBS AG, New York
Branch
677 Washington Blvd.
Stamford, CT

06901
    
 Telecopy: 203-719-3888
Telephone:
203-719-5274
Attn: Tim
Costello
	

EXHIBIT
A

[FORM OF OPINION OF COUNSEL TO THE BORROWER]

		October 15, 2003

To each of
the Lenders listed on
 Schedule I hereto and
 to Citibank,
N.A., as
 Administrative Agent for the Lenders

		
	Re: 	The Second Amended and Restated Facility A
(364 Day) Credit Agreement among
 The Stanley Works, the Lenders
party thereto and Citibank, N.A., as Administrative Agent

Ladies and Gentlemen:

We have acted as special counsel
to The Stanley Works, a Connecticut corporation (the
"Borrower"), in connection
with the Second Amendment and Restatement dated as of even date
herewith (the "Second Amendment and
Restatement") of the Facility A (364-Day) Credit
Agreement dated as of October 17, 2001 (the
"Facility A (364-Day) Credit
Agreement" as amended and restated as of October
16, 2002, and, as amended by the Second Amendment and Restatement, the
"Second Amended and Restated Facility A (364-Day)
Credit Agreement"), among the Borrower, the
lenders party thereto (the
"Lenders") and Citibank, N.A.,
as administrative agent (in such capacity, the
"Administrative Agent") for
the Lenders. This opinion is being delivered pursuant to Section
4(a)(4) of the Second Amendment and Restatement. Capitalized terms used
herein but not otherwise defined shall have the meaning set forth in
the Second Amended and Restated Facility A (364-Day) Credit
Agreement.

In rendering the opinions set forth herein, we have
examined and relied on originals or copies of (i) the Second Amendment
and Restatement, (ii) the certificate executed by the General Counsel
of the Borrower dated as of the date hereof, a copy of which is
attached hereto as Exhibit A (the
"Borrower's Certificate"),
(iii) a copy of the Borrower's Annual Report on Form 10-K for the
year ended December 28, 2002 (the "Form
10-K") filed with the Securities and Exchange
Commission, (iv) a copy of the Borrower's Quarterly Report on
Form 10-Q as amended by Form 10-Q/A for the period ended June 28, 2003
filed with the Securities and Exchange Commission, (v) the Restated
Certificate of Incorporation of the Borrower dated September 11, 1998,
filed with the Connecticut Secretary of the State's office on
September 15, 1998, (vi) the Bylaws of the Borrower as amended through
October 17, 2001, (vii) Resolutions of the Board of Directors of the
Borrower adopted on October 16, 2002, and (viii) a Certificate of Legal
Existence of the Borrower dated October 9, 2003 issued by the
Connecticut Secretary of the State. Furthermore, in rendering the
opinions set forth herein we have, with your consent, relied only upon
examination of the documents described above and upon statements and
representations of the Borrower and its officers and other
representatives, including the facts and conclusions set forth in the
Borrower's Certificate and we have made no independent
verification or investigation of the factual matters set forth
therein.

In our examination we have assumed the genuineness of
all signatures including endorsements, the legal capacity of natural
persons, the authenticity of all documents submitted to us as
originals, the conformity to original documents of all documents
submitted to us as facsimile, certified or photostatic copies, and the
authenticity of the originals of such copies.

We express no
opinion as to the laws of any jurisdiction other than the Applicable
Laws of the States of Connecticut and New York and the United States of
America. "Applicable Laws"
shall mean those laws, rules and regulations which, in our experience,
are normally applicable to transactions of the type contemplated by the
Second Amendment and Restatement without our having made any special
investigation as to the applicability of any specific law, rule or
regulation, and which are not the subject of a specific opinion herein
referring expressly to a particular law or laws.
"Governmental 

Authorities" shall mean
any United States of America, Connecticut or New York executive,
legislative, judicial, administrative or regulatory body.
"Governmental Approval" shall
mean any consent, approval, license, authorization or validation of, or
filing, recording or registration with, any Governmental Authority
pursuant to Applicable Laws.

Based upon the foregoing and
subject to the limitations, qualifications, exceptions and assumptions
set forth herein, we are of the opinion that as of the date hereof:

1.    The Borrower has been duly incorporated in, and is validly
existing under the laws of, the State of Connecticut.

2.    The Borrower has the corporate power and corporate authority
to execute, deliver, and perform its obligations under the Second
Amendment and Restatement.

3.    The execution and delivery of
the Second Amendment and Restatement has been duly authorized by all
requisite corporate action on the part of the Borrower.

4.    The Second Amendment and Restatement has been duly executed
and delivered by the Borrower and constitutes the valid and binding
obligation of the Borrower enforceable against the Borrower in
accordance with its terms under the laws of the State of New York.

5.    Neither the execution, delivery or performance by the
Borrower of the Second Amendment and Restatement nor the compliance by
the Borrower with the terms and provisions thereof will contravene any
provision of any Applicable Law of the States of New York and
Connecticut, or the federal laws of the United States of America.

6.    Based upon our review of Applicable Laws, but without our
having made any special investigation concerning any other law, rule or
regulation, no Governmental Approval which has not been obtained or
taken and is not in full force and effect is required to authorize or
is required in connection with the execution, delivery or performance
of the Second Amendment and Restatement by the Borrower.

7.    Neither the execution, delivery or performance by the
Borrower of the Second Amendment and Restatement nor the compliance by
the Borrower with the terms and provisions thereof will conflict with,
contravene, violate or constitute a default under (i) to the best of
our knowledge, after due investigation, any provision of any Applicable
Contract or any other agreement or instrument to which the Borrower or
the Borrower's property is subject, (ii) any provision of any
Applicable Law, (iii) to the best of our knowledge, after due
investigation, any judicial or administrative order or decree of any
Governmental Authority, or (iv) its Certificate of Incorporation and
Bylaws. As used in this paragraph, "due
investigation" means solely that we have reviewed the
Certificate of the Borrower attached hereto as Exhibit
A.

8.    The Borrower is not an
"investment company" within the meaning of
the Investment Company Act of 1940, as amended.

Our opinions are
subject to the following assumptions and qualifications:

(a)    since we do not represent the Borrower on a regular basis,
we have assumed the accuracy of the description of the Borrower's
business set forth in the Borrower's Form 10-K;

(b)    enforcement may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer, or other
similar laws affecting creditors' rights and remedies generally
and by general principles of equity or the exercise of judicial
discretion (regardless of whether enforcement is sought in equity or at
law) including, but not limited to, principles relating to good faith
and fair dealing, commercial reasonableness and the like;

(c)    we have assumed that the Second Amendment and Restatement
constitutes the valid and binding obligation of each party thereto
(other than the Borrower) enforceable against such other party in
accordance with its terms;

(d)    we express no opinion as to
the effect on the opinions expressed herein of (i) the compliance or
non-compliance of the Administrative Agent or any party (other than the
Borrower to 

the extent expressly set forth herein) to the
Second Amendment and Restatement with any state, federal or other laws
or regulations applicable to them or (ii) the legal or regulatory
status or the nature of the business of the Administrative Agent;

(e)    we express no opinion as to the enforceability of any
rights to contribution or indemnification provided for in the Second
Amendment and Restatement which are violative of the public policy
underlying any law, rule or regulation (including any federal or state
securities law, rule or regulation); and

(f)    we express no
opinion with respect to any provision of the Second Amendment and
Restatement to the extent it authorizes or permits any purchaser of a
participation interest to set-off or apply any deposit, property or
indebtedness with respect to any participation interest.

In
rendering the foregoing opinions, we have assumed, with your consent,
that (a) the execution, delivery, or performance by the Borrower of the
Second Amendment and Restatement does not and will not conflict with,
contravene, violate or constitute a default under any rule, law, or
regulation to which the Borrower is subject (other than Applicable
Laws, orders, and decrees as to which we express an opinion in
paragraph 7 herein) or any agreement or instrument to which the
Borrower or the Borrower's property is subject (except to the
extent that we express an opinion in paragraph 7 herein); and (b) no
authorization, consent or other approval of, notice to or filing with,
any court, governmental authority or regulatory body (other than
Governmental Approvals as to which we express our opinion in paragraph
6 herein) is required to authorize or is required in connection with
the execution, delivery or performance by the Borrower of the Amendment
and Restatement or the transactions contemplated thereby.

This
opinion is limited to the matters stated herein and no opinion is
implied or may be inferred beyond the matters expressly stated. The
opinions set forth herein are rendered as of the date hereof. We assume
no obligation to update any facts or circumstances which may hereafter
come to our attention or any changes in any laws, regulations or court
decisions which may hereafter occur.

This opinion is being
furnished only to you in connection with the Second Amendment and
Restatement and is solely for your benefit and is not to be used,
circulated, quoted or otherwise referred to for any other purpose or
relied upon by any other Person for any purpose without our prior
written consent, provided, that any Person that becomes a Lender
pursuant to Section 8.07(a) of the Second Amended and Restated Facility
A (364-Day) Credit Agreement may rely on this opinion as if it were
addressed to such Person and delivered on the date hereof.

		Very truly yours,

		Tyler
Cooper & Alcorn, LLP

		By:   

	
			
	

		A
Partner

EXIBIT
A to
 TC&A OPINION

BORROWER'S CERTIFICATE

I, Bruce H. Beatt, am General Counsel of The Stanley Works
(the "Borrower"). I understand that pursuant
to Section 4(a)(4) of that certain Second Amendment and Restatement
dated as of October 15, 2003 (the "Second Amendment
and Restatement") to the Facility A (364-Day) Credit
Agreement dated as of October 17, 2001 (the "Facility
A (364-Day) Credit Agreement", as amended and
restated as of October 16, 2002 and the Second Amendment and
Restatement, the "Second Amended and Restated Facility
A (364-Day) Credit Agreement"), among the Borrower,
the lenders party thereto (the "Lenders") and
Citibank, N.A. as administrative agent for the Lenders, Tyler Cooper
& Alcorn, LLP is relying on this certificate and the statements
made herein in rendering certain legal opinions. Capitalized terms used
herein but not otherwise defined shall have the meaning set forth in
the Second Amended and Restated Facility A (364-Day) Credit
Agreement.

With regard to the foregoing, on behalf of the
Borrower I certify that:

A.    Based solely and exclusively on
conversations with Craig A. Douglas, Treasurer of
Borrower;

1.    The value of all securities owned by
the Borrower (excluding those issued by majority-owned Subsidiaries of
the Borrower) does not exceed 10% of the value of the
Borrower's total assets;

2.    Less than 25
percent of the assets of the Borrower on a consolidated basis and on an
unconsolidated basis consist of the margin stock (as such term is
defined in Regulation U of the Board of Governors of the Federal
Reserve System); and

3.    The Borrower (a) is
primarily engaged, directly or through a wholly-owned subsidiary or
subsidiaries, in a business or businesses other than that of investing,
reinvesting, owning holding or trading in securities and (b) is not
engaged and does not propose to engage in the business of investing,
reinvesting, owning, holding or trading in securities, and does not own
or propose to acquire investment securities having a value exceeding 40
percent of the value of the Borrower's total assets (exclusive of
government securities and cash items) on an unconsolidated basis;
and

B.    Based solely and exclusively on a certain Statement
by Holding Company Claiming Exemption Under Rule U-3A-2 from the
Provisions of the Public Utility Holding Company Act of 1935 (the
"Act"), filed by Borrower with the United
States Securities and Exchange Commission on February 28, 2003
(Accession Number 0000093556-04-000004), Borrower is exempt from the
provisions of the Act.

C.    Based solely and exclusively on
interviews of the officers of the Borrower responsible for its
financing activities and the lawyers under my supervision, the
execution, delivery and performance by the Borrower of any of its
obligations under the Second Amendment and Restatement and the Second
Amended and Restated Facility A (364-Day) Credit Agreement does not and
will not conflict with, contravene, violate or constitute a default
under (i) any provision of any Applicable Contract or any other
agreement or instrument to which the Borrower or the Borrower's
property is subject, or (ii) any judicial or administrative order or
decree of any Governmental Authority.

IN WITNESS WHEREOF, I have
executed this certificate this ___ day of October,
2003.

		By:                                                                                    

		Name:  Bruce H. Beatt

Title:    Vice President, General Counsel

              and
Secretary

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