Document:

EX-10.III.C

Exhibit 10(iii)(c)

Form of award letter for grants of long term performance awards to executive officers

<GRANT DATE>

Dear <NAME>:

It is my pleasure to congratulate you for being selected to participate in the Long Term
Performance Award Program (the “Program”) under The Stanley Works 2009 Long-Term Incentive Plan.
This Program is intended to provide substantial, equity-based rewards for specified full-time
members of our management team, provided specific Performance Goals are achieved during the
Measurement Period (<DATE RANGE>).

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

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

The Performance Goals applicable to this Award and the percentage of your total bonus opportunity
that applies to each goal will be communicated to you by a member of Stanley’s Human Resources
Department within the next several days.

Your performance award covers the following number of PS units:

	 	 	 	 	 	 	 
	 	 	Threshold	 	Target	 	Maximum
	# PS

	 	<NUMBER1>
	 	<NUMBER2>
	 	<NUMBER3>

Please see the following pages for information on vesting and settlement, definitions of
capitalized terms used herein and for other Terms and Conditions applicable to this Award, which
Terms and Conditions along with the 2009 Long-Term Incentive Plan will govern your Award. If you
have any questions, please call me, Jim Loree or Mark Mathieu. Once again, thank you for your
continued support and congratulations on being selected to participate in this important Program.

Best regards,

John F. Lundgren

 

 

Exhibit 10(iii)(c)

Form of award letter for grants of long term performance awards to executive officers

Terms and Conditions applicable to

Long Term Performance Awards

This certifies that The Stanley Works (the “Company") has on the Date of this Award Letter granted
to the Participant named above a performance award (“Performance Award”) of that number of
Performance Units set forth in this Award Letter, subject to certain restrictions and on the terms
and conditions contained in this Award Letter and The Stanley Works 2009 Long-Term Incentive Plan,
as amended from time to time (the “Plan"). A copy of the Plan is available upon request. In the
event of any conflict between the terms of the Plan and this Award Letter, the terms of the Plan
shall govern. This Performance Award represents the right of the Participant to receive a number
of Shares to be issued if the Company achieves the Performance Goals for the Measurement Period as
set forth above.

	 	1.	 	Time and Manner of Settlement. As soon as practicable following completion of the
applicable Measurement Period, but in no event later than March 15 of the year following
the end of such period, and assuming that the Threshold Performance Goals are achieved and
employment requirements are satisfied, the Company shall issue a number of Shares to the
Participant, in settlement of the Participant’s Performance Award, equal to (i) the number
of Shares specified in this Award Letter to be issued based upon the Performance Goals
achieved plus (ii) in the event performance falls between the Threshold and Target or
Target and Maximum Goals as specified in the Award Letter, a pro rata number of Shares
calculated as follows (rounded to the closest whole number):

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

where:

S =the additional number of Shares to be issued

A =the actual Performance Goal achieved (e.g., EPS, ROCE)

L =the applicable Performance Goal reached (i.e., threshold, target or maximum)

N =the next highest applicable Performance Goal (i.e., target or maximum)

SN =the number of Shares designated for issuance at the next highest applicable
Performance Goal; and

SL = the number of Shares designated for issuance at the applicable Performance
Goal reached.

	 	2.	 	Vesting; form of settlement. Performance Awards will become vested at the time of
settlement to the extent that the applicable performance metrics have been achieved and
provided that the participant is continuously employed by Stanley until such time.
Performance Awards will be settled in shares of Stanley stock as soon as practicable
following the end of the Measurement Period. For participants who were MICP Level 3 or
higher at the time of grant, the Shares will be distributed in the form of restricted
stock to the extent the participant does not hold the number of shares specified in the
Minimum Stock Ownership Guidelines

 

 

Exhibit 10(iii)(c)

Form of award letter for grants of long term performance awards to executive officers

	 	 	 	set forth below at the time of settlement. Any additional Shares will be issued in the
form of Unrestricted Stock. For all other participants, Performance Awards will be settled
in the form of Unrestricted Stock. Participants will be entitled to vote and receive
dividends on Restricted Stock following the date of distribution.
	 
	 	 	 	The Minimum Stock Ownership Guidelines are as follows:

	 	 	 	 	 
	Position	 	Multiple of Base Salary
	CEO
	 	 	3X	 
	 
	MICP Level 1
	 	 	2X	 
	 
	MICP Levels 2 and 3
	 	 	1X	 

	 	 	 	If a participant’s employment with Stanley terminates due to his or her Retirement, death
or Disability prior to the date the Performance Awards are settled, the participant’s
Performance Award will be pro-rated based on the number of days in the Measurement Period
that the participant was employed by Stanley. The participant’s pro-rated Performance
Award will be settled at the same time as performance awards for active participants are
settled, to the extent the applicable performance metrics have been achieved. Pro-rated
performance awards will be settled in the form of Unrestricted Stock. A participant whose
employment with Stanley terminates prior to the date of settlement for any other reason
will forfeit all rights in respect of his or her performance award and will not be entitled
to receive any Shares or other payment under the Program.
	 
	 	3.	 	Rights of a Shareholder. The Participant shall not have any rights of a shareholder
with respect to the Performance Awards or any Shares issued in settlement thereof prior to
the date of settlement.
	 
	 	4.	 	Transferability. Transferability shall be as set forth in the Plan.
	 
	 	5.	 	Adjustments. Notwithstanding any other provision hereof, the Committee shall have
authority to make adjustments in the terms and conditions of, and the criteria included
in, Performance Awards granted hereunder, as set forth in the Plan.
	 
	 	6.	 	Miscellaneous. The Committee shall have full authority to administer the Performance
Awards and to interpret the terms of the Award Document and this document, which authority
includes the authority to waive certain conditions in appropriate circumstances. All
decisions or interpretations of the Committee with respect to any question arising in
respect of the Performance Awards shall be binding, conclusive and final. The waiver by
Stanley of any provision of this document or an Award Document shall not operate as or be
construed to be a subsequent waiver of the same provision or a waiver of any other
provision of this document or any Award Document. The validity and construction of the
terms of

 

 

Exhibit 10(iii)(c)

Form of award letter for grants of long term performance awards to executive officers

	 	 	 	this document and any Award Document shall be governed by the laws of the State of
Connecticut. The terms and conditions set forth in this document and any Award Document
are subject in all respects to the terms and conditions of the Plan, which shall be
controlling. The Participant agrees to execute such other agreements, documents or
assignments as may be necessary or desirable to effect the purposes hereof.
	 
	 	7.	 	Unfunded Arrangement. The Performance Awards represented in any Award Document
constitute an unfunded unsecured promise of Stanley and the rights of the Participant in
respect of the Performance Awards are no greater than the rights of an unsecured creditor
of Stanley.
	 
	 	8.	 	Change in Control. Notwithstanding any provision in the Award documents to the
contrary, upon a Change in Control each outstanding Performance Award shall be cancelled
and in respect of his or her cancelled Performance Award a Participant shall receive a pro
rata portion of the Performance Award, calculated by assuming the achievement of the
applicable Performance Goal or Performance Goals at target levels and then multiplying
this amount by a fraction, the numerator of which is the number of days completed in the
Performance Period prior to the Change in Control and the denominator of which is the
total number of days in the Performance Period. The pro rata portion of the Performance
Award shall be issued in accordance with the terms of the Plan not later than 15 days
following such Change in Control. In addition, if any Performance Award which a
Participant earned under the Plan during any Performance Period which ended prior to the
Change in Control has neither been issued to the Participant nor credited to such
Participant under a deferred compensation plan maintained or sponsored by the Company or
an Affiliate prior to the Change in Control, such Performance Award shall be settled in
accordance with the Plan as soon as practicable and in no event later than the later of
(i) March 1st following the year in respect of which the Performance Award was
earned or (ii) the fifteenth day following the Change in Control, provided, however, that
in no event shall such settlement occur later than March 15 of the year following the year
in respect of which the Performance Award was earned. After a Change in Control, the
Committee may not exercise its discretion pursuant to Section 5 hereof to decrease the
amount of stock issuable in respect of any Performance Award which is outstanding
immediately prior to the occurrence of the Change in Control.
	 
	 	9.	 	Capitalized Terms. The following capitalized terms shall have the meaning set forth
below for purposes of this Letter. All other capitalized terms used in this document
shall have the meanings set forth in the Plan.

	 	 	 	Measurement Period. The period during which financial performance is measured
against the applicable Performance Goals as set forth in this Award Letter.
	 
	 	 	 	Performance Goals. Goals established by the Compensation and Organization
Committee of the Board of Directors or, pursuant to an

 

 

Exhibit 10(iii)(c)

Form of award letter for grants of long term performance awards to executive officers

	 	 	 	appropriate delegation of authority, the Chairman of the Board, for performance of
the Company as a whole and/or specific businesses or functions during the
Measurement Period. The Performance Goals applicable to you for a particular
Measurement Period will be communicated to you by a member of Stanley’s Human
Resources Department.
	 
	 	 	 	Restricted Stock. Common Stock of the Company that confers on holders the right to
vote and receive dividends, but that is subject to certain restrictions on sale and
transfer. All restrictions on sale and transfer of such stock shall lapse on the
date the Participant’s employment with the Company or any Affiliate terminates,
regardless of the reason for termination, provided, however, that a transfer of
employment from the Company to any Affiliate or from any Affiliate to another
Affiliate or to the Company shall not be deemed a termination of employment
hereunder. In addition, if through the acquisition of additional Shares or
otherwise, the total market value of shares owned by a Participant (restricted and
unrestricted) exceeds any applicable Minimum Ownership Guidelines, the restrictions
on the sale and transfer of that number of Shares of Restricted Stock in excess of
the number required to meet the applicable Minimum Ownership Guidelines shall
lapse.
	 
	 	 	 	Shares. Shares of Restricted Stock or Unrestricted Stock to be issued if
Performance Goals are achieved, as specified in this Award Letter.
	 
	 	 	 	Unrestricted Stock. Common Stock of the Company that may be sold at any time.EX-10.III.D

Exhibit 10(iii)(d)

As Amended April 23, 2009

THE STANLEY WORKS

EMPLOYEE STOCK PURCHASE PLAN

     The Stanley Works Employee Stock Purchase Plan offers a convenient way for Eligible Employees
to purchase shares of the Company Common Stock, on the terms and conditions defined below, through
payroll deductions and without the payment of any commissions or fees.

     It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase
Plan” under Section 423 of the Code and the Plan shall be construed in accordance with such
purpose.

ONE. DEFINITIONS

     As used herein, unless the context otherwise requires, the following words shall be defined as
follows:

     (A) “Code” means the Internal Revenue Code of 1986, as amended.

     (B) “Committee” means the Finance and Pension Committee of the Board of Directors.

     (C) “Company” means The Stanley Works.

     (D) “Company Common Stock” means the common stock of the Company, par value $2.50 per share.

     (E) “Date of Exercise” means the last NYSE trading day of any month during the Plan Year.

     (F) “Date of Grant” means the first day of the Plan Year.

     (G) “Earnings” shall mean with respect to any Employee, the salary of such Employee (excluding
any incentive compensation) calculated in the manner prescribed by the Committee from time to time.

     (H) “Eligible Employee” means an Employee eligible to purchase stock under the Plan.

 

 

     (I) “Employee” means any person who is regularly and actively employed by the Company or any
Subsidiary and who receives from it regular compensation, other than pension, retirement allowance,
retainer, or fee under contract. Any person whose customary employment is less than twenty (20)
hours per week, or less than five (5) months per calendar year, shall not be considered an Employee
under this Plan.

     (J) “Investment Account” means the account established for the Participating Employee with the
transfer agent for the Company Common Stock for the purpose of holding the shares purchased under
the Plan.

     (K) “NYSE” means the New York Stock Exchange.

     (L) “Participating Employee” means an Eligible Employee who elects to participate in the Plan.

     (M) “Plan” means The Stanley Works Employee Stock Purchase Plan adopted by the Board of
Directors on December 21, 1994, subject to approval by the shareholders on April 19, 1995.

     (N) “Plan Administrator” means an officer or employee of the Company to whom the Committee has
delegated the authority to administer the Plan, subject to the rules and interpretive
determinations promulgated by the Committee.

     (O) “Plan Year” means a period of less than twenty-seven months for which the Plan has been
declared to be effective for offering and selling unissued or reacquired Company Common Stock to
Eligible Employees.

     (P) “Subsidiary” means any corporation organized under the laws of any of the United States or
of Canada or its provinces or of any other jurisdiction which the Committee shall designate, a
majority of the voting stock of which (exclusive of directors’ qualifying shares) is owned by the
Company or a Subsidiary of the Company.

TWO. ELIGIBILITY

     (A) All Employees, who have completed at least ninety (90) days in the employ of the Company,
or any of its Subsidiaries, or any combination thereof, and who are currently Employees of the
Company or any of its Subsidiaries, are eligible to participate in the Plan.

     (B) Nothing in the Plan or any instrument executed pursuant hereto shall confer upon any
Employee any right to continue in the employ of the Company or any of its Subsidiaries nor shall
anything in the Plan affect the right of the Company or any of its Subsidiaries to terminate the
employment of any Employee, with or without cause.

2

 

THREE. PARTICIPATION AND PRICE

     (A) Participation shall be for one or more shares at a price which for each Plan Year shall be
the lower of 85% (or such higher percentage as the Committee may determine from time to time) of
the arithmetic mean of the high and low prices for the Company Common Stock as reported for the
NYSE Composite Transactions on (i) the Date of Grant (if the NYSE is not open on the Date of Grant,
then on the next preceding day on which the NYSE is open for trading) (the “Plan Year Price”) or
(ii) the Date of Exercise (the “Month End Price”).

     (B) In no event shall the price be less than the par value per share.

     (C) Eligible Employees may elect to participate in the Plan on a monthly basis by authorizing
regular payroll deductions. Elections received by the fifteenth of one month will become effective
for the first payroll period in the next succeeding month. Elections received after the fifteenth
of one month will become effective for the first payroll period in the second succeeding month.
The amounts deducted will accumulate during each calendar month and at the end of such month will
be applied to the purchase of full and fractional shares of Company Common Stock at the lower of
the Plan Year Price or the Month End Price. If in any calendar month purchases under the Plan
would result in the issuance of more shares than are reserved for issuance under the Plan, the
number of shares that Eligible Employees may purchase during such month shall be reduced on a pro
rata basis so that only the maximum number of shares reserved for issuance will be issued, except
that elections to purchase one share will be honored in full.

     (D) All full and fractional shares purchased under the Plan will be issued in book entry form
and credited to a separate Investment Account established for each Participating Employee within
two weeks of the Date of Exercise. Participating Employees shall receive dividends with respect to
the shares of Company Common Stock credited to his or her Investment Account. Participating
Employees have the option to receive share certificates for a fee. Such fees will be established at
the beginning of each Plan Year.

     (E) Participating Employees have the option to participate in the Company’s Dividend
Reinvestment Program with respect to the shares purchased under the Plan and to have all dividends
paid with respect to the full and fractional shares in a Participating Employee’s Investment
Account applied to the purchase of full or fractional shares of Company Common Stock on the NYSE.
Shares so purchased shall be added to the shares held for the Participating Employee in his/her
Investment Account. Participating Employees who have elected to participate in the Dividend
Reinvestment Program will be charged a quarterly fee as determined by the Committee from time to
time.

     (F) The total number of shares to be offered for purchase under this Plan is limited to a
maximum of Three Million (3,000,000) shares of Company Common Stock, which may be unissued or
reacquired shares, or a combination thereof. The number of shares available for purchase in each
Plan Year shall be the remaining number of shares reserved for issuance under the Plan at the
beginning of each Plan Year. All rights to purchase shares under the Plan for any Plan Year that
remain outstanding at the end of such Plan Year will terminate as of the end of that Plan Year.

3

 

     (G) Eligible Employees may elect to increase, decrease or terminate participation at any time
throughout the Plan Year on a prospective basis only. Such elections may be made on a monthly
basis and elections received by the fifteenth of one month will become effective for the first
payroll period in the next succeeding month. Elections received after the fifteenth of one month
will not become effective until the first payroll period in the second succeeding month. There is
no limitation on the ability of an Eligible Employee to re-enroll in the Plan once participation
has been terminated.

FOUR. MAXIMUM AMOUNT OF PURCHASES

     (A) In each Plan Year, an Eligible Employee may purchase shares with a value (measured as of
the date of purchase of such shares) not in excess of fifteen percent (15%) of his/her Earnings for
the previous calendar year provided, however, that in any Plan Year the fair market value
(determined as of the Date of Grant for such Plan Year) of shares purchased by a Participating
Employee under the Plan may not, when added to the fair market value of all other shares which the
Eligible Employee may have rights to purchase under this or other plans that qualify as employee
stock purchase plans of the Company under Section 423 of the Code, exceed $25,000.

     (B) No Employee will be permitted to purchase in any Plan Year if the number of shares which
he/she then owns (the rules of Section 424(d) of the Code shall apply in determining ownership) or
has the right or option to purchase plus the number of shares for which he/she wishes to subscribe
would represent five percent (5%) or more of the total number of shares of Company Common Stock
outstanding.

     (C) An Eligible Employee, with less than a full year’s service, may participate based on
his/her present Earnings.

FIVE. PAYMENT OF PURCHASE PRICE

     (A) The purchase price shall be deducted on a weekly or monthly basis from pay. No deduction
shall be less than one dollar ($1) and all deductions must be in even dollars.

     (B) Payroll deductions will be open fifty-two (52) weeks or twelve (12) months per year. The
weekly or monthly deduction amount will be determined by the Participating Employee, provided that,
a weekly or monthly deduction election shall not exceed the net pay of the Eligible Employee for
any pay period.

     (C) No interest will be paid on the amounts deducted.

     (D) Each Participating Employee purchasing Company Common Stock under the Plan as a condition
to such purchase shall pay to the Company the amount, if any, required to be withheld from
distributions resulting from such exercise under any applicable income tax laws (“Withholding
Taxes”). Such Withholding Taxes shall be payable as of the date income from such exercise is
includable in the Participating Employee’s gross income for income tax

4

 

purposes (the “Tax Date”). The Committee may establish such procedures as it deems appropriate for the
settling of withholding obligations with shares of Company Common Stock.

SIX. DEATH, PERMANENT DISABILITY, RETIREMENT AND TRANSFERS

     (A) If a Participating Employee dies, becomes permanently disabled, retires or is transferred
during any month in the Plan Year, payroll deductions taken to the date of the death, permanent
disability, retirement or transfer will be used to purchase shares on the last NYSE trading day of
the month in which death, permanent disability, retirement or transfer occurs.

     (B) Participating Employees transferred, but remaining employed by the Company or a
Subsidiary, may continue to participate in the Plan.

SEVEN. RIGHTS AS A SHAREHOLDER

     The Participating Employee, and any beneficiary or other person claiming through a
Participating Employee, shall not have any interest in any share of Company Common Stock allocated
for the purposes of the Plan or subject to any option under the Plan until the Date of Exercise
with respect to such share. Furthermore, the existence of the options under the Plan shall not
affect: the right or power of the Company or its shareholders to make adjustments,
recapitalization, reorganizations or other changes in the Company’s capital structure; the
dissolution or liquidation of the Company, or sale or transfer of any part of its assets or
business; or any other corporate act, whether of a similar character or otherwise.

EIGHT. RIGHTS NOT TRANSFERABLE

     The rights under the Plan are not transferable by a Participating Employee and may be
exercised during the lifetime of a Participating Employee only by him/her.

NINE. APPLICATION OF FUNDS

     (A) Divisions and Subsidiaries making payroll deductions for the Plan act as agents of the
Company and will transmit such deductions to the Company in the manner specified by the Plan
Administrator.

     (B) All funds received or held by the Company under the Plan may be used for any corporate
purpose.

TEN. THE COMMITTEE

     (A) The Plan will be administered by the Committee. The Committee is vested with full
authority to administer, interpret and make rules regarding the Plan. The Committee shall have the
authority to interpret the Plan as it may deem advisable and to make determinations that shall be
final, binding and conclusive upon all persons. No member of the Board of Directors or
the Committee shall be liable for any action or determination made in good faith with respect to
the Plan.

5

 

     (B) The Committee may delegate to the Plan Administrator the authority to administer this Plan
subject to the rules and interpretive determinations promulgated by the Committee. Such delegation
shall not make such officer or Employee, if otherwise an Eligible Employee, ineligible to
participate in this Plan.

     (C) To the extent not inconsistent with the Plan, the Committee may authorize and establish
such rules and regulations as it may determine to be advisable to make the Plan effective or to
provide for its administration, and may take such other action with regard to the Plan as it shall
deem advisable to effectuate its purpose, including, without limitation, the establishment of
procedures that may be necessary to ensure compliance with Rule 16b-3 of the Securities Exchange
Act of 1934.

ELEVEN. ADJUSTMENT IN CASE OF CHANGES AFFECTING THE COMPANY’S COMMON STOCK

     In the event of a merger, consolidation, reorganization, recapitalization, stock dividend,
stock split or any other change in corporate structure or capitalization affecting the Company
Common Stock, the Committee shall make adjustment in the number, kind, price, etc. of shares
issuable under the Plan, including adjustment in the maximum number of shares referred to in
Section THREE (F) of the Plan, as it deems necessary and appropriate.

TWELVE. EFFECTIVE PERIOD OF THE PLAN

     The Committee, or the Plan Administrator if so authorized by the Committee, is authorized from
time to time during the period commencing on October 24, 1995 and ending on the date of termination
of the Plan as provided in Section THIRTEEN hereof, to declare Plan Years for the purpose of
offering and selling unissued or reacquired Company Common Stock to Eligible Employees of the
Company and its Subsidiaries.

THIRTEEN. TERMINATION AND AMENDMENT OF THE PLAN

     (A) The Board of Directors may at any time terminate, suspend or amend the Plan provided that,
such termination, suspensions or amendments will not affect elections already accepted by the
Company; and provided, further that, no amendment of the Plan shall, without the approval of the
shareholders of the Company:

	 	(1)	 	increase the aggregate number of shares that may be issued in
connection with the Plan;
	 
	 	(2)	 	change the purchase price formula; or
	 
	 	(3)	 	materially modify the requirements as to eligibility for
participation in the Plan.

6

 

     (B) The Plan and all rights of employees hereunder, if not terminated earlier, shall terminate
as follows:

	 	(1)	 	at the close of any Plan Year, if theretofore declared
terminated by the Board of Directors; or
	 
	 	(2)	 	there are no longer any reserved shares of Company Common Stock
available for issuance under the Plan.

FOURTEEN. MISCELLANEOUS

     (A) The Company will not be obligated to issue shares of Company Common Stock or make any
payment if counsel to the Company determines that such issuance or payment would violate any law or
regulation of any governmental authority or any agreement between the Company and any national
securities exchange upon which the Company Common Stock is listed. In connection with any stock
issuance or transfer, the person acquiring the shares shall, if requested by the Company, give
assurances satisfactory to counsel to the Company regarding such matters as the Company may deem
desirable to assure compliance with all legal requirements. The Company shall in no event be
obliged to take any action in order to permit the exercise of any option under the Plan.

     (B) The validity, interpretation and administration of the Plan and of any rules, regulations,
determinations or decisions made thereunder, and the rights of any and all persons having or
claiming to have any interest therein or thereunder, shall be determined exclusively in accordance
with the laws of the State of Connecticut (regardless of the laws that might be applicable under
principles of conflicts of laws). Without limiting the generality of the foregoing, the period
within which any action in connection with the Plan must be commenced shall be governed by the laws
of the State of Connecticut (regardless of the laws that might be applicable under principles of
conflicts of laws), without regard to the place where the act or omission complained of took place,
the residence of any party to such action or the place where the action may be brought.

     (C) Shares purchased under the Plan shall not be sold or otherwise transferred for 12 months
from the date of purchase except in the case of death, disability, involuntary termination or
“hardship” as such term is defined in the Company’s 401(k) Choice Account.

7

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